SBI withdraws teaser home loan scheme

Home loans from SBI will now attract an interest rate of 9.5% to 10.25% depending upon the loan amount. The withdrawal of the teaser rates comes within a month of the new chairman Pratip Chaudhuri taking charge at SBI

Mumbai: Amid concerns expressed by the Reserve Bank of India (RBI), the country's largest lender State Bank of India (SBI) today announced withdrawal of special home loan schemes, or teaser rates, with effect from 1st May, reports PTI.

SBI Easy Home Loan and SBI Advantage Home Loan (teaser rate products) will be replaced by floating interest rate schemes on par with other commercial banks.

Under the teaser home loan scheme, SBI was offering lower rate of interest of 8%-8.5% for the first three years.

It invited severe criticism from RBI, which had said the scheme could impact the asset quality of SBI's home loan portfolio.

The withdrawal of the teaser rates comes within a month of the new chairman Pratip Chaudhuri taking charge at SBI.

Home loans from SBI will now attract an interest rate of 9.5% to 10.25% depending upon the loan amount, SBI said.

The bank had also launched the SBI Advantage Car loan Scheme, under which credit would be provided at 10.75% for a maximum period of seven years.


Future Ventures says it does not have IPO documents of a listed company it acquired three years ago!

Company’s IPO prospectus says it cannot compare the promise and performance of Galaxy Entertainment because it does not have the IPO records of Galaxy which are legal documents. Still, SEBI has cleared the Future Ventures’ prospectus, unaware of the irony

Future Ventures India Limited, the Kishore Biyani-promoted investment company, recently announced an initial public offering (IPO) to raise Rs750 crore.

One of its group companies is Galaxy Entertainment Corporation, which was listed on the Bombay Stock Exchange, before Future Ventures acquired it three years ago. But the prospectus for the current IPO planned by Future Ventures says that it does not have any access to information about the promise and performance of this company.

Galaxy was promoted by Purnendu Chatterjee, once an associate of George Soros and a key promoter of Haldia Petrochemicals. Mr Chatterjee sold Galaxy to the Future group after the company's managing director expired. The Future Ventures' prospectus says, "We do not have access to the offer documents and other records of Galaxy. We are, therefore, unable to provide details on the promise made and the performance achieved by Galaxy."

This is strange. As Future Ventures acquired Galaxy and should have had all the records of an important corporate action such as an IPO in place. A prospectus is a legal document. The fact that a listed company has lost a legal document like the prospectus is quite extraordinary.

The prospectus could have been procured through book running lead managers too which helped the company to come out with its IPO. These lead managers are few in number and they should have been able to source the information.

Enam Securities, JM Financial, Kotak Investment Banking are the lead mangers for Future Ventures' IPO and the company could have taken their help to get access to the previous records of Galaxy, including the information for the prospectus.

The data could have come from a third party provider of information like Prime Database. Worst, all prospectuses are screened and examined before they are cleared by the market regulator Securities and Exchange Board of India (SEBI). The company could also have accessed the required information relating to Galaxy from SEBI too-assuming that SEBI has a record of all the issues that it clears! But we are not sure whether Future Ventures made any efforts to get hold of a prospectus.

What is ironical is that SEBI decided to give a 'go-ahead' for the Future Ventures prospectus, unaware of the irony that a prospectus it had cleared 11 years ago has simply vanished from the system! As against this, won't the regulated entities be put through hell if any compliance paper of theirs is found missing?




6 years ago

Without any clarity in the purpose of fund utilisation.Biyani is again collecting money without any shame after the IPO of Future Capital holdings which was a pick pocketing.This money will be redirected to his main company Pantaloon for working capital.Biyani dad a quality but not know

Anil Agashe

6 years ago

This is unbelievable! And the regulators are not doing what they should is appalling SEBI must have the prospectus in its own records as well. Is the prospectus read at SEBI? And what grading has the issue received?


6 years ago

There are no definitive plans to utilize the proceeds of the issue. It appears the issue is brought out to ease the liquidity faced by the group. The objects of the Issue have not been appraised by any bank or financial institution.One of the poor quality IPO, being managed by BRLMs with pathetic record. This is another day light robbery issue, like BS transcomm, Gyscoal alloys, CEBBCO, Aster silicates etc. SEBI should exercise caution while clearing these kinds of IPOS, whose only aim is to loot the public money. Servicing post issue equity around Rs 1400cr would be very difficult. FIRST CHOICE IPO.


6 years ago

Documents lost in the digital world ? cannot digest.

Reliance Communications launches ‘mobile banking services’ with SBI for GSM subscribers

Reliance Communications has launched ‘Mobile Banking Services’, its new VAS service in association with SBI

Telecom operator, Reliance Communications has launched 'Mobile Banking Services', its new value-added services (VAS) service in association with the State Bank of India (SBI). Reliance consumers can use facilities like balance inquiry, mini statement, fund transfer, cheque book issuance, mobile recharge and bill payment at any time and place through  the use of their cell phones.

Reliance subscribers will not require any special mobile application or GPRS to use the service, but they should have an active current/savings account with SBI. The customers will have to register for the services with SBI. The user has to dial *595# to view simple menu choices and key-in your choice. Customers will be able to view account balance, get mini statements, do fund transfer, change MPIN or recharge their mobile account. He will also receive confirmation regarding successful transaction over SMS.

Mahesh Prasad, president-wireless business, Reliance Communications said, "Consumers use their cell phones to play games, read news headlines, surf the Internet, do online trading, share documents, write blogs, do chatting, listen to music, book a ticket for movie, etc. And still consumers continuously keep demanding more and more from their phones. This mobile banking service is yet another useful service for our customers, they can now avoid those long queues at the SBI branches"


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