Banking
Personal Finance Exclusive
StanChart launches online credit card approval solution

The online application process involves verification of key customer details such as Permanent Account Number, mobile number, email ID and credit history through CIBIL, and other internal eligibility criteria

 

New Delhi: Standard Chartered Bank said it has launched an instant online credit card approval solution which will enable a customer to apply for a card online and receive an ‘approval in-principle’ (AIP) almost instantly.

 

Standard Chartered will extend this process to several other consumer banking products over the next few months, making it more convenient for its customers, Standard Chartered Bank said in a statement.

 

“The online Credit Card AIP is poised to revolutionise customer experience with its instant feedback feature,” it said.

 

“Digital solutions are the future of banking and Standard Chartered is leading the way in making digital channels an important and integral part of the way customers bank,” Standard Chartered Bank regional head (South Asia) and chief marketing officer (consumer banking) Sanjeeb Chaudhuri said.

 

The online application process involves verification of key customer details such as the Permanent Account Number, mobile number, email ID and credit history through CIBIL, and other internal eligibility criteria.

 

The AIP will be followed by a final approval after completion of “Know Your Customer” (KYC) and credit approval processes.

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Personal Finance Exclusive
BSLI launches new ULIP whole life plan 'Wealth Secure'

BSLI Wealth Secure plan combines long-term savings and whole life cover in such a way that it allows customers to focus on their goals and maximise savings for their future

 

Mumbai: Private insurer Birla Sun Life has announced the launch of its new unit-linked whole life plan, BSLI Wealth Secure.

“With three investment options to choose from, the plan can meet the demands of the diverse investors. BSLI Wealth Secure plan combines long-term savings and whole life cover in such a way that it allows customers to focus on their goals and maximise savings for their future,” Birla Sun Life Insurance chief actuarial officer Niall O'Hare said in a release.

With a built-in savings component, BSLI Wealth Secure plan can help accumulate sizable returns with every premium paid, owing to its long tenure and equity market participation, he added.

The plan enables a customer to fulfill his family’s dreams with prudent investments and also financially secure their future with a whole life cover.

The company, it said, is positive that the product will induce many more customers to achieve a balanced growth on their investments while they benefit from advanced investment strategies and also a whole life cover.

The plan offers customers a choice to select the premium amount, based on the current age and the premium amount that the customer opts for, the company will determine the life cover applicable on the policy.

Wealth Secure plan also provides tax benefits, it said.

BSLI is a joint venture between the Aditya Birla Group and Sun Life Financial Inc, one of the leading international financial services organisations from Canada.

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Economy & Nation Exclusive
Banks’ earnings growth to remain subdued in FY2012-14, says Kotak

Private banks are expected to show sharper earnings slowdown in FY2012-14 as credit costs start to rise, especially on infrastructure loans, says Kotak Institutional Equities

Banks are expected to face some rough weather in the immediate financial year FY2012-14, according to a brokerage report from Kotak Institutional Equities. Banks' earnings growth is expected to remain subdued at 12% CAGR for FY2012-14. The brokerage report estimates that there are likely to be slippages at 2.4% for FY2012-14. Further, credit costs are expected to remain high at 1.2-1.4% level for the sector in the medium term, especially with new regulations on dynamic provisions.

The brokerage report expects that select private banks will show a sharper earnings slowdown in FY2012-14 as credit costs rise, especially on infrastructure exposure and gradual rise in slippages in the retail portfolio. On the other hand, public banks are likely to deliver 11% earnings growth (less than10% excluding SBI). Pre-provisioning operating profit (PPoP) is likely to increase by 13% CAGR for FY2012-14 with public banks growing at 11% and private banks growing at 19% CAGR.

RoEs (Return on Equity) for public banks are likely to be at 17% for FY2012-14, while private banks would deliver RoEs in the range of 14-15%. The key risk remains the delay in addressing infrastructure bottlenecks that would impede loan growth. This would increase balance sheet risk for banks.

According to the Kotak report, banks with large retail portfolio are unlikely to see serious deterioration but are expected to increase from current low levels, as growth is steadily slowing and real income levels are showing signs of stagnation. The report anticipates the following factors to play a role in the banking sector:  (a) higher-than-normal slippage trends for FY2012-14, (b) restructuring of banks to continue and (c) dynamic provisions are to come into effect.

The brokerage report also predicts that concerns on balance sheet would remain focused on infrastructure exposure and balance sheets would be excessively leveraged on certain large corporate entities. Recovery trends have improved on small-ticket loans, although banks chose to write off higher loans where there were difficulties.

Apart from these predictions, the Kotak report has also reviewed the performance in banks in the fourth quarter of financial year FY2012. The quarter showed some positive improvement on key operating metrics. High interest has continued to impact earnings but companies have been able to push through prices resulting in improvement of profitability and interest coverage ratios. A trend is yet to emerge but we believe that banks carry significant risk outside this portfolio through infrastructure and select large corporate exposure, which is a key risk to earnings.
 
Credit costs for the quarter remained high on the back of higher provisions for restructured loans and write-off. The outlook on asset quality performance remained cautious despite improvement witnessed in the current quarter as growth continues to remain a challenge, there is an inability to address problems in the power sector, which is posing significant risk to banks' balance sheet, and select corporate houses like Kingfisher have reasonably stretched financials.

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