State-owned Corporation Bank on Friday reduced interest rates on home, auto and consumer durables loans by up to 1.75% to cash in on the festival season demand. The bank cut lending rate on home loans by 0.50%, while the reduction in rates for auto loans is 1%. The cut in lending rate for consumer durables loans of up to R5 lakh is 1.75%.
Banks may raise $1 bn from multilateral units
RBI’s move to allow banks to raise funds from global multilateral institutions can bring inflows of about $1 billion to $2 billion, two bankers say. Private sector lenders would be the most likely to use the window, according to these bankers, who are involved in overseas fundraising at banks but who were not authorised to talk to the media.
HSBC ups R forecast on improved deficit
HSBC cuts USD/INR forecast for the end of the year to 62 from 65, citing improvements in the current account deficit and measures to attract inflows. HSBC notes rupee will benefit from any inclusion of local government bonds in JPMorgan government bond index for emerging markets, and cites the $1 billion rupee-linked bond issuance launched by IFC.
India Post, UAE tie up for money transfer
Eyeing the $35 billion money remittances business from Gulf, India Post announced launch of instant money transfer service in partnership with UAE’s Emirates Post Group. “India Post has signed an agreement with Wall Street Exchange (a company of the Emirates Post Group of the UAE) for launch of an International Electronic Money Transfer service through ‘Instant Cash’ product,” a DoP’s official statement said.
RBI to start RTGS systems on Oct 19
The Reserve bank of India in a notification said it will operationalise the Real-Time Gross Settlement (RTGS) systems on October 19. The notification added the existing RTGS business operating guidelines and RTGS regulations would cease to exist and advised banks to take necessary steps to ensure participation in the new RTGS system.