Page 7 - Banking Finance MAY 2017

BANK UPDATE

BANKING

NEWS
NEWS
NEWS
NEWS
NEWS

Syndicate Bank cuts base YES Bank's IFSC Banking unit records $1billion business
YES Bank said the balance sheet of its IFSC Banking Unit (IBU) in Gujarat Inter-
point by 10 bps
national Finance Tec (GIFT) City recorded $1 billion for
Syndicate Bank has reduced its base the financial year ended March 31, 2017. The bank has
rate by 10 bps become the first to achieve the $1-billion milestone at
from 9.60 per the GIFT City, said a press release from the bank. Since
cent to 9.50 per starting its IBU in GIFT IFSC, YES Bank has executed
cent. However, multiple transactions across key sectors, including agri-
the bank made culture and agri-businesses, affordable housing, media and entertainment, finan-
no changes in the marginal cost- cial institutions, aviation, ports & logistics, manufacturing and telecom etc.
based lending rate (MCLR) and BPLR.
The benchmark one-year lending State Bank of India, HDFC Bank reduce base rates by
MCLR stands at 8.75 per cent and 15 and 25 bps
BPLR at 13.85 per cent.
The State Bank of India (SBI) and HDFC Bank Ltd has
Penalty against lower reduced their base rates by 15 basis points and 25 basis
than minimum balance points respectively, bringing relief to those who have
taken loans before April 2016. SBI reduced base rate to
The government has said banks can
9.10% effective from 1 April compared to 9.25% ear-
impose penalty for
lier. HDFC Bank reduced its base rate by 25 basis points to 9%.
not keeping mini-
mum balance in ac- Revised interest rates for FCNR deposits
counts but the levy Indian Bank has revised its interest rates on foreign currency non-resident (bank-
should be "reason- ing) term deposits effective from April 1. For FCNR (B)
able" and not out of deposits in US dollar terms, the revised interest rate
line with the average cost of providing
has been fixed at 2.40 per cent for deposits of one year
these services. As per the RBI guidelines, and above but less than two years, from the existing
banks should inform at least one month 2.33 per cent, according to a statement. For deposits
in advance existing account holders of two years and above but less than three years, the
about any change in the prescribed
rate has been revised to 2.62 per cent (2.57 per cent). For deposits of three
minimum balance and charges that may
years and above but less than four years, the revised rate is 2.88 per cent (2.78
be levied, Minister of State for Finance per cent). For deposits of four years and above but less than five years, the re-
Santosh Kumar Gangwar said in a writ- vised rate is 3.01 per cent (2.92 per cent). The interest rate for deposits of up to
ten reply in the Rajya Sabha.
five years is 3.11 per cent, up from 3.05 per cent.

BANKING FINANCE | MAY | 2017 | 7

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