Page 7 - Banking Finance February 2018

BANK UPDATE

BANKING

NEWS
NEWS
NEWS
NEWS
NEWS

No plan to discontinue SBI cuts base rate by 30 basis points
free banking services: IBA Loans to existing borrowers are set to get a little cheaper with the State Bank
of India (SBI) reducing its base rate by 30 basis points,
The Indian Banks Association (IBA)
there's no plan to a move that is likely to be followed by other banks.
discontinue all The move is also unlikely to benefit new borrowers
free banking ser- whose loan rates are linked to the so-called marginal
vices. The indus- cost of funds-based lending rates (MCLR). One basis
try body, how- point is a hundredth of a percentage point. SBI's re-
ever, said in a statement that banks vised base rate now stands at 8.65%. The lender has kept MCLR for January
will continue to review their transac- unchanged at 7.70-8.10%.
tion charges based on operational
and commercial viabilities. "There Bandhan Bank to launch IPO
are reports in some segments of so- Bandhan Bank is planning to offer about 11.92 crore shares of face value Rs.10
cial media that all free services by each under its proposed IPO. In its Draft Red Herring Pro-
banks will be ceased from this Janu- spectus (DRHP) filed with the Securities and Exchange Board
ary 20," it said.
of India, Bandhan said, the IPO will comprise a fresh issue
"There is neither any move by banks for of up to 9.8 crore equity shares and an offer-for-sale of up
such a blanket removal of free services to 2.2 crore shares (1.4 crore shares by International Finance
nor such a thing is being contemplated. Corporation (IFC) and up to 75 lakh shares by IFC FIG Invest-
It is clarified that these are baseless and ment Company I).
false information," it said, following
reports in social media that banks Kotak Mahindra Capital, Axis Capital, Goldman Sachs (India) Securities, JM Fi-
would introduce new charges on vari- nancial Institutional Securities and JP Morgan India are the book-running lead
ous services from January 20. managers for the IPO. According to merchant banking sources, the issue, which
IBA, however, said, "Banks are look- is touted as the biggest banking sector IPO till date, is expected to raise over
ing at commercial and operational Rs.4,000 crore. The shares are proposed to be listed on the BSE and the NSE.
costs and would constantly examine
and revise charges as the case may New Rs.10 note
be." The association also warned the The RBI has come out with a new Rs 10 note. The choco-
public not to get misled by such mes- late-brown bill, which bears the signature of RBI governor
sages as "such news is pure rumours Urjit Patel and will soon be issued, has the same height of
and there is no fresh instruction/ 63mm as the existing one, but will be slightly thinner at
guidelines on this by the Reserve 123mm. The note's reverse will sport a motif of the Konark
Bank", it added. Sun Temple. The existing Rs 10 banknotes will continue to be legal tender.

BANKING FINANCE | FEBRUARY | 2018 | 7

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