RIM bundles free BBM service with BlackBerry Curve

With Diwali celebrations to begin next week, Research-In-Motion's special festive offer will come as good news to many customers.On purchase of the new BlackBerry Curve 9220 or Curve 9320, customers would be entitled to free BBM service for the next one year. To avail this offer, they would need to go for a new Airtel or Vodafone connection. Airtel subscribers would need to text message "BBM" to 543210 for activating the free BlackBerry Messenger service, while Vodafone subscribers would have their BlackBerry services automatically activated in 48 hours after the phone was started with the SIM for the first time.

Starting today, the offer would be available till 9 December.Customers are expected to choose from the two from December 9, 2012 and avail the benefits of free BBM services on Airtel and Vodafone.

This offer is open only for those who purchase BlackBerry Curve 9220 or Curve 9320 between 9 November  and 9 December, 2012. It should be noted though that only new subscribers to Airtel and Vodafone can make the best of this offer.

The company is also offering a plethora of premium applications worth Rs2,000 for BlackBerry smartphone and PlayBook users.

Banks hit the slow lane in FY'12, says RBI

The consolidated balance sheet of scheduled commercial banks (SCBs) in the country recorded slower growth during 2011-12, compared with the previous year, amidst an overall slowdown in the domestic economy, the Reserve Bank of India (RBI) said in a report released on Friday.

Banks reported a slowdown in profit growth, mainly due to steep increase in interest expenditure. Consequent to the slowdown in net profit, return on assets (RoA) and return on equity (RoE) dipped marginally. Also, net interest margin (NIM) declined marginally during 2011-12 compared with the previous year, RBI said in its `Report on Trend and Progress of Banking in India-2011-12'.
The capital to risk-weighted asset ratio (CRAR) remained well above the stipulated minimum for the system as a whole as well as for all bank groups during 2011-12, indicating that Indian banks remained well-capitalised. As at end-March 2012, Tier I capital accounted for more than 70 per cent of the total capital of Indian banks.

During 2011-12, the deteriorating asset quality of the banking sector emerged as a major concern, with gross non-performing assets (NPAs) of banks registering a sharp increase, RBI noted.

However, banks have progressed well under the financial inclusion plan (FIPs), and have almost completed the process of providing banking outlets in all villages with population more than 2,000.

NBFCs
The performance of financial institutions (FIs) in terms of both operating and net profits improved substantially during 2011-12. The performance of non-banking financial companies - deposit taking (NBFCs-D) witnessed improvement as reflected in the increase in their operating and net profits during 2011-12 mainly emanating from fund-based income.

The performance of systemically important non-deposit taking NBFCs (NBFCs-ND-SI) showed marginal deterioration in their net profits during 2011-12. Besides, the increase in impaired assets was a cause of concern, RBI said.

The report said while the financial system in the country remained robust, risks to stability are, however, elevated due to global and domestic macroeconomic factors.

The key issues related to the Indian banking sector include prospective migration to Basel III, which will increase the capital requirements on Indian banks. There is also a need to achieve meaningful financial inclusion through the evolution of sustainable business and delivery models.

Banks should contain slippage in asset quality while at the same time tapping untapped business opportunities for resources to power the growth engine.The challenge for Indian banks is to reduce costs and pass on the benefits to both depositors and lenders, the report added.

India PC Market Share Estimates for Third Quarter of 2012 (Percentage of Shipments)

 

Vendors	3Q12 Market Share (%)	3Q11 Market Share (%)
Lenovo	17.0	12.1
Acer	15.7	10.8
HP	15.5	13.3
Dell	12.4	15.0
HCL	3.4	5.6
Others	36.0	43.2
Total	100.0	100.0

Gartner (November 2012)

ICICI BANK AND VODAFONE INDIA ANNOUNCE A STRATEGIC ALLIANCE TO LAUNCH “m-pesa”

ICICI Bank, India’s largest private sector  bank and Vodafone India, one of India’s  largest  telecom service providers, announced a strategic alliance to launch a  unique  mobile money transfer and payment service called  ‘m-pesa’.
The  announcement was made by  Chanda Kochhar, MD & CEO, ICICI Bank and Marten Pieters, MD & CEO, Vodafone India Ltd. ICICI Bank and  Vodafone  India through its 100% subsidiary,  Mobile Commerce Solutions Ltd. (“MCSL”)  have finalized plans to launch mobile payment services this year, under the brand name ‘m-pesa’.This offering will  comprise: a mobile money account with ICICI Bank and a Mobile Wallet - issued by MCSL.

This innovative offering will give the customer a comprehensive service comprising:

• Cash deposit and withdrawal from designated outlets
• Money transfer to any mobile phone in India
• Range of mobile payment services including purchase of mobile recharge, recharge of DTH services and utility bill payments
• Money transfer to any bank account in India
• Payments at select shops

The partnership between ICICI Bank and Vodafone  effectively leverages the strengths of  Vodafone’s  significant distribution reach and the security of financial transactions provided to customers by ICICI Bank. These services are made convenient using a vast network of  authorized agents  who will enable the customer
to deposit and withdraw cash in and from their account. By facilitating banking transactions at such agent  locations,  this  alliance effectively delivers the last mile access in remote areas. The mobile payment service will be launched  initially in  the eastern  region  of the country viz. Kolkata, West Bengal, Bihar and Jharkhand and then will be rolled out to other parts of the country in a phased manner.

ICICI Bank launches super premium Diamant credit card for private banking customers

Provides access to private islands, yachts, jets, supercars and exclusive golf courses

ICICI Bank Limited, India’s largest private sector bank, announced the launch of ICICI Bank Diamant, a super premium card for private banking customers. This card is yet another addition to the“Gemstone Collection” of credit cards. The other cards, which form a part of this collection, include the ICICI Bank Sapphiro, ICICI Bank Rubyx and ICICI Bank Coral Credit Card.
The ICICI Bank Diamant is available on the MasterCard World platform and offers a wide range of exquisite and opulent privileges to complement the lifestyle of our discerning customers. On offer are elite privileges that include access to private islands, yachts, jets, supercars, membership to the Leading Hotels of the World, Ltd., Priority Pass, and the loyalty programme from Air France and KLM, entrée to exclusive movie premieres and complimentary tee-offs at the some of the finest golf courses across the world. The card also has premium offerings on travel, shopping and entertainment hubs.
The ICICI Bank Diamant credit card has been voted amongst the 3 best card designs in the world by International Card Manufacturer's Association (ICMA) for 2012.
Ms. Chanda Kochhar, Managing Director and CEO, ICICI Bank said, “At ICICI Bank, we have a distinctive suite of premium products and services designed to delight our Private Banking segment. The launch of the super premium ICICI Bank Diamant Credit Card will throw open a world of possibilities to our distinguished customers and enrich their experience. The Gemstone Collection includes a wide range of cards that have been tailor made to meet the diverse requirements of our customers and offers competitive benefits and rewards to generate enhanced value to them”.
Mr. Vicky Bindra, President, APMEA, MasterCard Worldwide, said, “MasterCard is pleased to collaborate with ICICI Bank for the launch of the ICICI Bank Diamant card. The continued emergence of the affluent consumer segment in India presents a huge opportunity but also requires world class products to fulfill the higher expectations of these consumers who seek exceptional quality in every aspect of their lives. The ICICI
Bank Diamant card is an example of MasterCard's commitment to provide payment experiences that have been developed specifically to cater to their sophisticated tastes and lifestyle choices of the affluent Indian cardholder."
The ICICI Bank Diamant Credit Card offers a wide list of attractive benefits to the card members:

• Access to over 50 exotic private islands spread across the Indian Ocean, the Caribbean Isles, off the coasts of New Zealand and  Australia and in Europe’s famed Aegean and Mediterranean Sea
• Complimentary private cruise aboard the luxurious Lagoon 560 or the stately Azimut 39 that rank among the finest crafts in the world
• Access to the world’s best jets including the CRJ ExecLiner, the Cessna Citation C II and Citation XL
• Complimentary access to supercars such as the Ferrari F430, Audi R8 and Porsche 911 Turbo among others
• Complimentary membership to the exclusive Leaders  Club from Leading Hotels of the World, Ltd., the largest luxury hospitality organisation representing over 430 of the finest hotels, resorts and spas across 80 countries
• Direct membership to the platinum tier of Flying Blue, the leading European frequent flyer programme, upon purchase of a return trip air ticket from Air France-KLM
• Worldwide complimentary airport lounge access through membership to Priority Pass, the world’s largest airport lounge access programme, MasterCard affiliated Clipper and Plaza airport lounges and 300+ lounges of the Air France-KLM and Sky Team alliance
• Complimentary MacBook Air on joining
• Complimentary rounds of golf at more than 100 of the finest golf courses worldwide
• Complimentary movie tickets
• Access to Culinary Treats programme offering a minimum 15% savings at 800+ restaurants across India from ICICI Bank
• Offers rewards on all purchases powered by PAYBACK,which is India’s first and largest multi partner loyalty programme
• Enhanced security through embedded microchip to prevent counterfeiting and skimming

HDFC bank launches VISA Bharat credit card for farmers

HDFC Bank, the country's second-largest private sector bank after ICICI Bank, said it had opened 87 rural branches on Sunday across the states of Punjab and Haryana.

Manned by three or four staff, these are full-service branches located primarily in the rural areas.

The bank said that along with opening the branches, it had also launched HDFC Bank VISA Bharat credit card, targeted towards farmers and agriculturists.

"The new global credit card has special features designed with Indian farmers and their shopping needs in mind," the bank said in a statement. "The card will offer farmers cash back on every purchase as well as a waiver on petrol surcharge on fuel transactions between Rs400 and Rs5,000."
The push into the interiors of the country is aimed at bringing 10 million unbanked families from rural and remoter areas like Leh in Ladakh and the north-east into the banking fold.

''We are committed to providing efficient, technology driven banking products and services across India to help bring about inclusive growth. The launch of the 87 full-service rural branches reiterates this commitment and we are confident that our endeavour will help in the economic development of the rural areas in the state of Punjab and Haryana, ''said Navin Puri, country head, Branch Banking, HDFC Bank.

''Agriculture is a critical sector of the Indian economy and forms the backbone of our country," Parag Rao, senior executive vice president, business head, credit cards & merchant acquiring services, HDFC Bank.

Rao added that like HDFC Bank;s credit card for doctors and teachers, Bank through the launch of Bharat card hopes to fulfill the needs and desires of farmers.

"The Bharat Credit Card will not only provide timely financial support to agriculturists when they require it, but also give them access to many additional features and benefits. This is a global credit card for Indian farmers,'' he added.

http://www.domain-b.com/finance/institutions/HDFC/20121126_bank_launches.html

RBI bans lending for purchase of gold in any form

The Reserve Bank of India (RBI) has directed banks not to give loans for purchase of gold in any form, including primary gold, bullion and jewellery or exchange traded funds (ETF) in order to deter excessive speculation in gold.

''No advances should be granted by banks against gold bullion to dealers/traders in gold if, in their assessment, such advances are likely to be utilised for purposes of financing gold purchase at auctions and/or speculative holding of stocks and bullion,'' RBI said in a notification issued today.

The new guidelines have been issued in the context of a significant rise in imports of gold in recent years and concern that direct bank financing for purchase of gold in any form, viz, bullion/primary gold/jewellery/gold coin etc could lead to fuelling of demand for gold.

Accordingly, RBI has advised banks against granting any  loan for purchase of gold in any form, including primary gold, gold bullion, gold jewellery, gold coins, units of gold exchange traded funds (ETF) and units of gold mutual funds.

However, banks can provide finance for genuine working capital requirements of jewellers.

India imported 1,067 tonnes of gold worth about $60 billion in the 2011-12 financial year. In the April-June quarter of the current fiscal, however, gold imports had contracted by 18.4 per cent year-on-year to $13 billion (Rs71,912 crore) amidst rising international prices of the precious metal.

SBI GE Cards Number

As per SBI Analyst Presentation for Q2 FY 2013, performance of SBI Cards & Payment Services Pvt. Ltd. (joint venture between SBI & GE) is as follows:

• Sourced 2.82 lakhs new cards during H1 FY13 vs 1.8 lakhs cards during H1 FY12 (55% growth)
• Increase in spends by Rs. 343 crores over previous quarter
• Gross NPA came down to 1.83% in Q2 FY13 from 2.1% in Q1 FY13

Mastercard with LCD screen, built-in keyboard‏

Mastercard in Singapore has launched a new credit card that has an LCD display and built-in keyboard.The card has touch-sensitive buttons and the ability to create a ‘one-time password’, doing away with the need for a separate device sometimes needed to log in to online banking.Many people find using security tokens cumbersome given the need to keep it with them in order to use online banking.

According to the BBC, Mastercard's interactive card aims to solve that issue.“We brainstormed on ways to make it convenient and yet secure for customers,” the report quoted V Subba from Standard Chartered Bank, which is collaborating with Mastercard, as saying."The question was: instead of sending customers another bulky token, could we replace something which already exists in the customer''s wallet? That was when credit, debit and ATM cards immediately came to mind,” Subba added. According to the report, future versions of the card could display added information such as the remaining balance. The card will be available from January before being rolled out globally.

http://www.indianexpress.com/news/now-mastercard-with-lcd-screen-builtin-keyboard/1029236/#

GE Capital realigns, sells mortgage biz to Magma FinCorp

GE Capital India, a unit of General Electric Co, has exited the home-loan business — under GE Money Housing Finance — as part of a strategic global realignment. Magma FinCorp, a non-banking finance company (NBFC), and its affiliates acquired the business comprising a home-loan business and an SME mortgage loan business — and 10,000 customers — in an all-cash deal.

Anish Shah, president and CEO, GE Capital India, said the money received will be allocated to grow extant businesses. “We are globally gravitating to businesses where we have a very good value proposition. We will continue to focus on growing our commercial finance business and credit card joint venture with State Bank of India,” said Shah.

As part of the transaction, Magma FinCorp will fully acquire GE Money Housing Finance for Rs. 660 crore, and the home equity loans portfolio of GE Money Financial Services with Rs. 940 crore loan assets as on May 31, 2012.

The funding will be refinanced by 20 banks and includes top nine public sector banks. Sanjay Chamria, vice chairman and managing director, Magma Fincorp, said the acquisitions, while strengthening Magma’s presence in the retail lending space, also offer an excellent platform for Magma to leverage its network in the rural and semi-rural India for its home loans foray. Customers will continue to be serviced by the GE Money team till the completion of the transactions.

As far as GE Capital India’s commercial financing business is concerned, healthcare finance doubled volumes last year. “Corporate debt, which is mostly term loans, are more focused on mid-market. Our leasing business is also doing very well, especially auto. We have bagged 50 of the top 200 signed up with no losses till date,” said Shah.

The company’s credit card business with State Bank of India (SBI) witnessed 60% growth in issuance with spends by the cardholders growing roughly by 40%. The business has seen a gradual decline in delinquencies over the last few years among credit card users and it is well below what it was 2-3-4 years ago, Shah said.

Said to be the No. 2 player in the country in terms of new card issuances, SBI Cards currently has around 2.3 million cardholders. “We don’t want to be in a race to be the No. 1. We’d rather grow credit cards as a solid, quality business,” said Shah.

http://www.dnaindia.com/money/report_ge-capital-realigns-sells-mortgage-biz-to-magma-fincorp_1762265

Visa Signs Credit-Card Deal With Three Myanmar Banks

Visa Inc. said Saturday that it will partner with three banks in Myanmar, allowing Visa's ubiquitous credit cards to be issued and accepted in the nascent market—a move designed to bring the long-isolated Southeast Asian country closer to global financial integration. The U.S.-based financial-services giant signed licensing agreements with three local banks, Kanbawza Bank Ltd., Myanmar Oriental Bank Ltd. and Co-Operative Bank Ltd., known as CB Bank.

Myanmar has in October allowed four international credit cards - - Visa, Master, CUP (China Union Payment) and JCB (Japan Credit Bureau) for the first time to facilitate foreign travelers in domestic payment as a follow-up program of MPU (Myanmar Payment Union) card for local citizens in September.

Allowing international bank cards to operate in the country is another step forward for Myanmar's banking sector and would have positive improvement in tourist industry of the nation that could attract more foreign investors, bankers said.

At present, 17 private banks have participated in the MPU program and all private banks would join in soon. Initially, ATM has begun service in November 2011 with six private banks, Myanmar currently has 19 private banks and four state-owned banks.

Standard Chartered Bank India launches Yatra Platinum card

Standard Chartered in collaboration with travel portal Yatra.com launched the ‘Standard Chartered Yatra Platinum Credit Card’. The card offers a suite of benefits to credit-card customers when they make travel reservations on Yatra.com besides their regular shopping and other spends. The co-branded card offers benefits like Cashback and accelerated reward points on spends at yatra.com, travel discount vouchers and free tickets.  

Some of the attractive benefits that the card holder will get are – 10 per cent cashback on all travel spends at Yatra.com, waivers on Yatra.com domestic air cancellation fees for all tickets booked on Yatra.com, on-boarding vouchers (discount vouchers ranging from Rs 4,000 to Rs 8,500 for travel reservations across flights, hotels and holiday packages), four reward points for every Rs 100 spend on Yatra spends and fuel surcharge waiver on all fuel spends.

Commenting on the launch Sanjeeb Chaudhuri, Regional Head, South Asia & Group CMO, Standard Chartered Bank said, “Indian travel industry is growing by leaps and bounds.  In the cluttered market of travel services, we see the need among customers for services that will not just facilitate their travel reservations but also reward them for their spends.” To avail this facility, customers can apply for the card online at the bank’s website or at any of its branches.

HSBC restructuring its consumer banking business in India

HongKong Shanghai Banking Corp is  restructuring the consumer banking and wealth management business of its India operations, a top executive told ET. The UK-based bank is also changing its incentive practice for relationship managers to bring in more accountability and plans to reduce its basket of mutual funds from 170 to below 100.

We have now tightened our credit standards and are using the credit bureau extensively," said Gannesh Bharadwaj, head of retail banking and wealth management at HSBC India. Unsecured loans, including personal loans and credit cards, are now being marketed to bank customers and corporate salaried customers.

"The bank is now focusing on customers with deposits of over Rs 3 lakh, rather than going for mass customers, a move that did not go well with us in 2008," Bharadwaj said.

HSBC, like most foreign banks, has been cleaning its books since 2008, when its consumer banking business was hit by losses on account of rising bad loans. Prior to the economic crisis in 2008, the bank was marketing its loans to non-bank customers and relying heavily on third-party agents. A weak credit bureau also added to the bank's woes.

The bank's non-performing loans, which stood at 2.31% OF GROSS LOANS in March 2010, has dipped to about 0.62% In March 2012. The NPAs in the personal loans business has dipped to 5.74% at the end of March 2011, compared with 18.36% in March 2010. The retail banking business of HSBC India posted a profit of Rs 383.63 crore at the end of March 2012, compared with Rs 516.6-crore loss in March 2010.

The bank has set up a customer value management cell, which will house all products including mortgage, personal loans, credit cards and wealth management. This is different from the structure followed by most foreign banks where every loan product is housed in a separate vertical.

"Globally, the retail banking business is being revamped. It is no more a product-driven approach. The 500 relationship managers will provide investment advice and also sell home and personal loans, credit cards and deposits," Bharadwaj said. The bank is now ramping up its credit card and home loan business. The bank after shrinking its credit card book is now back in the market. It has 5 lakh credit card customers compared to about 18 lakh customers two to three years ago. The bank is also in the process of acquiring Royal Bank of Scotland's retail assets in India

http://articles.economictimes.indiatimes.com/2012-10-30/news/34817229_1_personal-loans-bank-customers-loan-product

Banks grow loan books with credit card, car loan advances‏

Rising NPAs have forced lenders to focus on smaller retail loans

Banks have aggressively grown their loan advances through credit cards, vehicle loans, personal loans and agriculture, while sharply cutting down loans to industry.

Rising non-performing assets (NPAs) have made lenders risk-averse, forcing them to concentrate on smaller retail loans, rather than chunky advances to a single corporate account. According to latest data by the Reserve Bank of India (RBI), the year-to-date bank credit growth (April to October 19) is just 2.7 per cent, while in the corresponding period last year, it was over 5 per cent.

Outstanding bank credit to industry stands at Rs 20,13,400 crore at the end of September, growing at the rate of 15.6 per cent over the previous year, while the year-on-year growth in the corresponding period last year was 22.9 per cent. The worst impacted are roads, infrastructure and the textile sectors.

Credit card advances grew fastest by 21.9 per cent over the previous year to Rs 23,000 crore, while the year-on-year growth in the corresponding quarter last year was just 2.2 per cent.

For over the past four quarters, banks have been focusing on retail loan growth with reduction in interest rates, processing fees and other promotional schemes. So, while banks are turning risk-averse on industrial credit, they are also trying to grow their NIM (net interest premiums) by growing unsecured loan book.

There is also a spurt in the growth of vehicle loans with total outstanding at Rs 1,02,700 crore, growing at the rate of 22.2 per cent over the previous year, up from 19.3 per cent growth recorded last year. Most banks are sitting on excess liquidity which is being deployed into government securities rather than on loan assets.

RBI governor D Subbarao in an interview with Financial Chronicle on Tuesday, said, “We expect credit to flow to all productive sectors like infrastructure, agriculture and SME sectors.” A senior SBI official said, “We are selectively lending by putting most of the excess liquidity of close to Rs 70,000 crore into government securities or other options with very selective lending.”

Agriculture credit has gone up by 21.3 per cent at the end of September over the previous year, while the year-on-year growth in the corresponding quarter rose by 7.9 per cent over the preceding year. The outstanding personal loans rose by 16.6 per cent over the previous year to Rs 15,122.6 crore. In the same time last year, the year-on-year growth for personal loans was just 12.2 per cent.

Chanda Kochhar, CEO and MD, ICICI Bank, said in a media concall last week, “Working capital loans and retail credit growth will be the mainstay of credit for the bank in the coming quarters until investments begin into projects.” About half of the Rs 6,670 crore of incremental credit growth reported in the second quarter came from retail loans.

In the industrial segments, one of the worst hit is the road sector where the pace of growth of bank credit is just 19.1 per cent, down from 31.9 per cent last year. With many infrastructure projects held up due to of various approvals, the pace of growth in infrastructure advances have slowed to 15.1 per cent over the previous year to Rs 6,50,100 crore, down from 20.3 per cent last year.

http://www.mydigitalfc.com/banking/banks-grow-loan-books-credit-card-car-loan-advances-040