With muted demand for funds from corporates, the SBI is expecting its retail portfolio to go up to 60 per cent of total loans by the end of current fiscal, a senior official said. "We expect our retail portfolio to be constituting 60 per cent of loans by the end of this fiscal because the corporate demand is still very-very muted. So, we expect the retail loan portfolio to grow by around 14 per cent this fiscal," P K Gupta, Managing Director (Retail & Digital Banking), State Bank of India (SBI) said in an interview to PTI. The retail segment, comprising of personal, small and medium enterprises (SME) and agriculture, constituted 57.5 per cent of SBI's domestic loan book at over Rs 17.46 lakh crore during 2017-18. Within the retail segment, Gupta said the bank expects personal loans, including housing loans to be growing at about 18 per cent, while SME and agriculture lending to be at sub-10 per cent. "So overall, over 14 per cent is what we are projecting as growth in our … [Read more...] about Expect retail to constitute 60% of overall loans this fiscal: PK Gupta, MD, SBI
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The Australian Competition and Consumer Commission has instituted proceedings in the Federal Court against Unique International College Pty Ltd following a joint investigation with NSW Fair Trading. It comes just weeks after the business was deregistered by the industry regulator. The ACCC alleges Unique offered prospective students a free laptop, and in doing so, represented that the courses were free or would be free if the consumer did not earn more than around $50,000 per annum. The watchdog will also allege that Unique’s conduct, including its marketing and enrolment system and its dealings with some consumers, was “in all the circumstances, unconscionable, in contravention of the Australian Consumer Law”. DREAM HOME Until July this year, Unique International College was the owner of a $5.8 million “palatial estate” in Sydney’s Kenthurst, replete with 12-car garage, tiered 14-seat home cinema, marble bathrooms, an inground pool, a … [Read more...] about Training college could be forced to repay millions in government loans
After five rate cuts in a row, the Reserve Bank of India (RBI) has finally hit the pause button. The central bank, on Thursday, in its latest monetary policy review kept the repo and reverse repo rate unchanged. This is definitely good news for fixed deposit investors who have been seeing their interest rates fall throughout the year. Hopefully, RBI maintaining status quo on rates will prompt banks to hit pause on cutting FD rates further. The repo rate currently stands at 5.15 per cent and reverse repo rate at 4.90 per cent.In the last monetary policy review, the central bank cut the key policy rates by 25 basis points (100 basis points = 1 per cent). Since February, the repo rate has been cut by a total of 135 bps. In its monetary policy statement RBI stated, "After the introduction of the external benchmark system, most banks have linked their lending rates to the policy repo rate of the Reserve Bank. The median term deposit rate has declined by 47 bps during February-November … [Read more...] about RBI keeps repo rate unchanged: What does this mean for your loans and fixed deposits?
Email By business reporter Stephen Letts Updated June 18, 2015 12:23:14 Photo: The big four banks use lower risk ratings on their mortgages than smaller rivals. (ABC News, file photo) Map: Australia 'Keeping things simple' is shaping up as the latest regulatory nightmare for the big banks.Having spent the best part of four years coming to terms with a complex set of rules around their capital structure, the big banks could be facing something much scarier and costly - simple reforms, based on old fashioned ideas.Rather basing capital needs on risk weighting of assets, the regulatory winds may be shifting to include the rather more straightforward calculation of leverage ratios.The push to simplify the complex set of global banking rules that have built up over the past decade is being driven by US and European regulators who are determined to shrink the biggest banks and make them more conservative.It's a change that on some estimates has the potential to almost double … [Read more...] about Bank debt ratios expose Basel’s faulty risk weightings
Email By business reporter Stephen Letts Updated May 01, 2017 08:12:38 Photo: APRA says more rate increases for investors inevitable. (ABC News: Stephen Letts) Related Story: APRA clamps down on interest-only mortgage loans Related Story: CBA raises home loan rates up to 0.5 percentage points Map: Australia APRA chairman Wayne Byres has foreshadowed banks will be obliged to embark on another round of interest rates hikes, particularly for housing investors. Key points:All the major banks raised rates by up to 0.5pc last month and APRA says there's more to comeAPRA warns banks about "back door" funding of investors through risky shadow banking channelsInvestor lending last month grew at its fastest pace since January 2016 Speaking at a property outlook forum in Sydney, the banking sector's chief regulator said while lending standards had improved and investor lending growth had slowed, more still needed to be done."As a result of our most recent guidance to lenders, we … [Read more...] about Interest rates: As APRA warns of more rises, ANZ delivers