State-run Indian Bank has upped its base rate from 9.50% to 10% per annum, while increasing BPLR to 14.25% from 13.75% earlier
Joining the rate hike bandwagon, state-run lender Indian Bank has raised its lending rates by 50 basis points, within days of the Reserve Bank of India (RBI) announcing an increase in its short-term lending and bank savings rates.
The sixth bank to announce the rate hike after RBI’s move, the PSU lender has upped its base rate from 9.50% to 10% per annum, while increasing its benchmark prime lending rate (BPLR) to 14.25% from 13.75% earlier.
The new rates would be effective from 5 May 2011, Indian Bank said in a filing to the Bombay Stock Exchange.
Already, five leading banks, including Punjab National Bank (PNB), Oriental Bank of Commerce (OBC) and YES Bank, have increased their interest rates by half a percentage point with effect from today, making all loans costlier.
The announcements to hike rates came within a day of the RBI hiking its lending and borrowing rates by 50 basis points each.
PNB, OBC, Bank of Maharashtra (BoM), IDBI Bank and YES Bank have also hiked their lending rates by 50 basis points.
With the increase, the base rate or the minimum lending rate for PNB, OBC, IDBI and BoM will stand increased to 10%, while that of private sector lender YES Bank will be 9.50%. The BPLR of PNB stands at 13.50%, OBC (14.25%), IDBI (14.50%), BoM (14.25%) and Yes Bank (19%).
The higher lending rates would make loans dearer for both new and existing auto, home and corporate borrowers.
The state-run IDBI Bank would hike the retail term deposit rates by 25-50 basis points in different maturity buckets and YES Bank has increased the savings account deposit rates by 50 basis points to 4% from today, thereby benefiting small savers.
The RBI on Tuesday hiked the repo and reverse repo rate to 7.25% and 6.25% respectively, besides, raising the savings bank deposit interest rate to 4%, from 3.5%. Bank savings deposit rate is currently regulated by the RBI.
Shares of Indian Bank closed 2.95% down at Rs224.05 on the Bombay Stock Exchange today, while the benchmark Sensex declined 1.40% to 18,210.
SUD Life has collected over Rs1,329 crore new business premium in its first 26 months of business operations
Star Union Dai-chi Life (SUD Life) said its total premium witnessed 76% growth at Rs933 crore in 2010-11 over the previous fiscal.
The private insurer had a total premium collection of Rs530.11 crore in FY10, the private insurer said in a release.
SUD Life, presently ranked 12th among 23 life insurers in the country, has collected over Rs1,329 crore new business premium in its first 26 months of business operations.
It collected Rs758 crore new business premium during 2010-11, it said.
The company has sold 97,730 individual policies and covered 353,994 lives under group schemes. Its market share among the private players has gone up to 1.93% by FY11-end from 1.35% the previous fiscal.
The private insurance company, which has set a target to turn profitable within five years of commencement of business, has paid up capital of Rs250 crore.
As its operating expenses are among the lowest in the industry it will not require any additional fund infusion, it said, SUD Life managing director and CEO Kamalji Sahay said.
Star Union Dai-ichi Life Insurance Company (SUD Life) is a joint venture of Bank of India, Union Bank of India and Dai-ichi Life Insurance of Japan.
Star Union Dai-ichi Life has launched Dhan Suraksha Express and Defined Growth Endowment Plan
Star Union Dai-ichi Life has launched two new product offerings—Dhan Suraksha Express and Defined Growth Endowment Plan.
Dhan Suraksha Express is a unit-linked insurance product (ULIP), while Defined Growth Endowment Plan is a traditional product.
The main features of the ULIP are fixed policy term of 10 years. The minimum ticket size is Rs15,000 p.a and maximum ticket size of Rs1 lakh p.a.
Defined Growth Endowment Plan guarantees growth of savings during the policy term in a systematic manner. The death cover/benefit also increases as the policy term progress. The minimum sum assured is Rs1 lakh and maximum is Rs50 lakh. The plan is available between 12 to 60 years.