Page 5 - Banking Finance September 2019

BANK UPDATE

BANKING

NEWS
NEWS
NEWS
NEWS
NEWS

SBI lowered deposit Jana Bank receives Scheduled Bank status

rates by 50-75 bps Jana Small Finance Bank Ltd, which commenced banking operations in March
2018, has got the status of a Scheduled Bank. The Gov-
SBI has announced a sharp reduction ernment notified this on July 27 this year, putting Jana
in fixed Small Finance Bank on the list of the banks included in
deposit the second schedule of RBI Act 1934.
rates.
The cut Jana Small Finance bank presently operates in 260 bank
will branches and 338 asset centres, which is serving over
trans- 5.5 million customers across the country. Ajay Kanwal, MD & CEO of Jana Small
late into Finance Bank said, “Our aim has always been to provide financial inclusion to
lower lending rates in the coming the under-served sections, including small business units, small and marginal
weeks as the benchmark for loans is farmers, micro and small industries. Becoming a Scheduled Bank is an impor-
calculated based on the cost of tant milestone for us and this will reinforce our relentless efforts to serve our
customers while receiving the faith and trust the customers have reposed to
funds. The reduction, which is in the
the bank”
range of 50-75 basis points (100bps
= 1 percentage point), has been at- By the end of FY20, the bank plans to convert 98 asset centres and 103 Unbanked
tributed to the “falling interest rate Rural centres (URCs) into full-fledged bank branches.
scenario and surplus liquidity”. Rates
have been revised for both retail, as Bandhan Bank to open more branches
well as bulk deposits of above Rs 2 Bandhan Bank would open 187 new branches by the end of the current finan-
crore, and will come into effect from cial year, taking the total number to 1,187, a
August 1. top official said. The private lender would also
For time deposits with longer tenors, open 340 doorstep service centres by 2019-
there is a reduction of up to 20bps 20, Managing Director and CEO Chandra
in the retail segment and 35bps in Sekhar Ghosh said.
the bulk segment. Interest rates Speaking to reporters at the opening of the
have been slashed by 50-75bps for bank’s 1,000th branch here, Ghosh said its board has approved 200 new branches
time deposits with shorter tenors of in the current fiscal, out of which 13 had already been opened. Bandhan Bank
up to six months. SBI officials said has 3,014 doorstep service centres.
that the bank was comfortable in
Regarding paring promoters’ stake to 40 per cent from 82 per cent as directed
terms of liquidity and was raising
by the RBI, he said that post the merger of Gruh with the bank awaiting NCLT
enough to meet credit demand.
approval -- promoters’ holding will reduce to 61 per cent.
BANKING FINANCE | SEPTEMBER | 2019 | 5