Banking
SBI ups NRE Rupee deposit rates by 25 bps

SBI raised interest rates on NRE rupee term deposits for tenors three years and less than five years from 8.75% to 9, on deposits under Rs15 lakh category

Mumbai: In its bid to meet the 25% deposit growth target, the country’s largest lender State Bank of India (SBI) has revised its pricing on NRE rupee deposits on select maturities and baskets by 0.25% at 9%, reports PTI.

 

"State Bank has decided to raise the rate of interest on NRE rupee term deposits for tenors three years and less than five years from 8.75% to 9, on deposits under Rs15 lakh category with effect from yesterday," the bank said.

 

Last month, SBI Managing Director and Group Executive for National Banking A Krishna Kumar had said that the bank was targeting growth of 25% in deposits and 22% in advances in the current fiscal.

 

"As of March end, we have roughly grown about 18% in deposits and 15-16% in credit," Kumar said.

 

According to the latest RBI data, deposits, mainly fixed deposits, rose 1.9% to Rs3.3 lakh crore in April-June period, against Rs2.8 lakh crore in the year-ago period.

 

Thanks to the liberalisation in interest rates, non-resident Indian (NRI) deposits have become attractive.

 

In the April-June period, the credit off-take was more or less on par with the year-ago period.

 

With deposit accretion outpacing credit growth, the collective incremental credit-deposit ratio of banks has gone down to 46% from 52% in the year-ago period.

 

In the domestic context, a CD ratio of 70% is considered ideal.

 

The RBI has set deposit growth guidance of 14 to 15% this fiscal and a credit growth at 17 percent. Banks' incremental credit-deposit ratio, which reflects fresh demand for loans in proportion to deposits, stood at just 48% compared to 51% in the same period last year and 84% in FY11.

 

Banks' outstanding deposits as of June end stood at Rs62.3 lakh crore, while credit stood at Rs47.6 lakh crore.

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Bhushan writes to government about file noting on Kingfisher safety

Though Civil Aviation Minister Ajit Singh did not offer any reason for Bhushan's abrupt removal, it has been widely reported that the regulator's tough stand against Kingfisher's operational safety and his reported threat to cancel its licence led to his ouster

Mumbai/New Delhi: Former regulator of civil aviation EK Bharat Bhushan has written to the Union Government to ascertain whether a file noting about the operational safety of Kingfisher Airlines has been 'tampered with', reports PTI.

 

In his communication to the government, Bhushan is understood to have asked whether the file noting on operational safety of the private carrier has gone missing, sources said.

 

When contacted, Bhushan, now with the steel ministry as the financial advisor, said "no comments".

 

In a sudden move, Bhushan, a 1979 batch Kerala cadre IAS officer, was unceremoniously removed as Director General of Civil Aviation (DGCA) on 10th July and was replaced by joint secretary in the Civil Aviation ministry Prashant Sukul as interim regulator.

 

His removal came within a week of the PMO clearing his extension till December.

 

Bhushan's communication came in the backdrop of Sukul last week telling media that there was no threat to suspend or cancel the license of Kingfisher as he did not find any noting in the official files on the issue.

 

Though minister Ajit Singh did not offer any reason for Bhushan's abrupt removal, it has been widely reported that the regulator's tough stand against Kingfisher's operational safety and his reported threat to cancel its licence led to his ouster.

 

Sukul had also denied reports that "action against one of the scheduled airlines (Kingfisher) was under consideration by the DGCA due to non-compliance of safety regulations."

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Maruti Suzuki unrest: Police files FIR against 60 workers

Labour unrest is not a new phenomenon in Maruti Suzuki's Manesar plant which mainly produces Swift. The factory had witnessed three such instances last year causing a total production loss of about 83,000 units

Gurgaon: The Gurgaon Police have lodged a first information report (FIR) against about 60 workers, including union leaders at Maruti Suzuki India's Manesar plant, where one person was killed on Wednesday in a clash between workers and the managerial staff, reports PTI.

 

"So far 88 workers have been arrested," DCP Maheshwar Dayal told reporters outside the plant in north Indian state Haryana.

 

He further said a special investigation team (SIT) has been formed headed by Assistant Commissioner of Police Ravinder Tomar with six inspectors to probe the incident.

 

In order to maintain law and order at the plant, 1,200 policemen have been deployed in and around the area, he added.

 

The company has in the meantime said the plant will remain closed. "The management has given some names of union leaders. An FIR has been lodged against around 60 workers," SHO Manesar Om Prakash told PTI.

 

A case under sections of murder, attempt to murder, causing grievous injuries and damage to properties and other different sections of IPC has been registered against the workers, he added.

 

When asked if any arrests have been made, he did not comment but said "some workers have been detained" without specifying details.

 

"The workers who instigated the violence and committed the crime have been identified and will soon be arrested," Prakash added.

 

Worker sources said they would not be going for work till the government intervened and all the culprits were arrested.

 

The company had said yesterday violence broke out in the evening when a worker beat up a supervisor on the shop floor.

 

However, the employees union said "objectionable remarks" by the supervisor against an employee triggered the violence.

 

The company had said yesterday in a statement that "workers at the plant turned violent, attacking and injuring executives and managers in the office premises. At least 40 managers and executives are injured, and have been rushed to hospital. The attackers also set fire to property and damaged facilities".

 

Labour unrest is not a new phenomenon in Manesar plant which mainly produces Swift. The factory had witnessed three such instances last year causing a total production loss of about 83,000 units.

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