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Reserve Bank of India Increases the Short-term Lending and Borrowing Rates and CRR by 25 Basis Points Each

Saturday, April 24, 2010

Reserve Bank of India increases the short-term lending and borrowing rates and the cash reserve ratio (CRR) by 25 basis points each in the annual Credit Policy for the year 2010-11.

About this hikes, economictimes.indiatimes.com, an online news portal about economy and business writes, “The repo and reverse repo rates have been hiked to 5.25 and 3.75 percent respectively, and will raise the cost of fund for lenders. It also hiked the CRR, the portion of money that commercial banks deposit with the central bank, by 25 basis points. The CRR hike draws out Rs 12,500 crores from the system.”

This is the second time the RBI has raised rates 25 BPS. In last month, RBI had hiked key rates by 25 bps and increased Repo and Reverse Repo also.

In an analysis the news portal writes, “The RBI has visibly shifted its policy priority to inflation from growth. It has warned that with growth expected to accelerate next year, capacity constraints are likely to put additional pressure on prices and there is a need to ensure that demand side inflation does not become entrenched. More rate hikes can be expected during the year in order to control inflation expectations.”

About the borrowers and banks situations, the news portal writes, “Borrowers can breathe easy for now as most banks have said they are unlikely to raise interest rates in the immediate future. A quarter percent hike does not warrant an increase in the lending or deposit rates. Also, since it is a lean season, the banks may not require deposits in a big way.

However, banks feel that short-term rates and subprime lending rates for corporates could go up. But the prime lending rate may not be adjusted immediately. Interest rates on deposits will not rise now since there are not many deployment avenues with banks.”

RBI has raised the short-term lending, borrowing rates and the cash reserve ratio by 25 basis points each to control the inflation. Despite it, there are no any suitable steps to control it. It is also a short-term step in the monetary policy.
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Cheaper Home Loans at HDFC to 8.25% for First Year

Thursday, April 15, 2010

Recently, HDFC announced to lower its home loan rates to 8.25% for the first year in its new dual rate scheme. The scheme is commonly known as teaser loans that are applicable on fresh loans.

Now, subscriber will able to get a fixed rate of 8.25 % up to March 2011, then 9 % for the next one year. About the cheaper home loans, HDFC said in a statement to ET, “This is a flexible product with dual rates. The fixed rates are applicable for all new loans irrespective of the loan amount.”

So, it is a flexible product that comes with dual rates. About the lower home loans rate at HDFC, economictimes.indiatimes.com, an online news portal writes, “its existing floating rate product would continue without any change where rates are 8.75 per cent for loans up to Rs 30 lakh, 9 per cent for loans between Rs 30 lakh and Rs 50 lakh and 9.25 per cent for loans of Rs 50 lakh and above.”

Further the news portal quotes another statement about the scheme, “This special offer is applicable to all new home loan customers who apply before April 30, 2010, and take at least part disbursement before June 30, 2010.”

So, the offer is only for a limited period. Customers will be able to take the offer, if they apply before April 30, 2010.

HDFC is one of the largest private banks that lower its home loan rate for first year to 8.25%. However, SBI already has extended its 8 % special home loan scheme till April 30.

In the current time, home loans are the biggest source of deriving money for banks. Recently, almost all private bank hiked rates for home and car loans in India.

Currently, Indian market is crossing through the biggest crisis. In this situation, banks are trying to invest in the secure asset rather than share market and mutual fund activities. In the Indian market, banks are crossing through the biggest competition also. Lower home loan rate at HDFC is one of the examples of competition and crisis in the Indian financial market.
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Property Search Application for Apple iPhone by Knight Frank

Sunday, April 11, 2010

Property Search Application for Apple iPhone and iPod Touch by Knight Frank
Recently, the leading independent global property consultancy - Knight Frank announced that its Property Search App is now available from the App Store. Users can search more than 6,000 of the world’s best properties for sale or rent. They can use the application on their iPhone or iPod touch.

Patrick Ramsay who is the head of Residential in Knight Frank said to www.knightfrank.ie, “The Knight Frank App is a mobile window to more than 6,000 of the best properties around the world. It is part of our integrated global coverage giving immediate access to our international network of more than 200 offices in over 34 countries. The quality of properties are reproduced beautifully giving an extraordinary and effective way of showcasing houses on iPhone and iPod touch.”

On the other hand, Jason Leven who is the partner and web development manager of Knight Frank said, “We have extended our award winning Global Residential Search to help iPhone and iPod touch users around the world find the highest quality property available. Using location-based services users can find their nearest property regardless of where they currently are. It only takes one tap to search for all properties that match a chosen lifestyle like water views, skiing, equestrian, golfing, vineyards or sporting properties around the world. If you find a property you like you can save it, email it to a friend or even publish it directly to Facebook©. It couldn't be easier or more fun to browse the best local or global properties on the move.”

Features of the Apple Store Application for Knight Frank Property Search Application:

Search by lifestyle such as water views, vineyards, ski, golf and equestrian

Integrated global residential property search by country, region or postcode

Locate nearest properties for sale or rent using the global GPS search function

View images, floor plans and full brochures

Save favorite property searches for future use

E-mail results to friends and family or link properties to Facebook

Shake to refresh search

Locate nearest Knight Frank office and either call or email with the touch of a button

Unlimited search results

These features are also mentioned by the above mentioned news website. Knight Frank property search application is known as the biggest property search application to search sell, rent or buy a property across the world.
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Portfolio Investment Scheme Launched by Federal Bank for NRIs

Friday, April 9, 2010

Recently, Federal Bank announced to launch Portfolio Investment Scheme for NRIs. The PSI is launched in tie up with Geojit BNP Paribas Financial Services Ltd. It is "hassle free" facilities for investments in stock market.

Managing Director and CEO of Federal Bank - M Venugopalan said to ET, “The bank, which has been authorized by RBI to administer the scheme, was the first among the traditional private sector banks to offer the facility. As per RBI rules, investments by NRIs in Indian share market were permitted under PIS of a bank only.”

Further he talks about the benefits of the scheme, “Under the scheme, NRIs could investment in shares with or without repatriation benefits adding they need to open separate PIS accounts with the bank for repatriation and non-repatriation benefits.”

About the account details, he says, “The trading account would be opened with Geojit BNP Paribas Financial Services Limited. DP account may be opened with Federal bank/Geojit BNP Paribas Financial Services Limited. NRIs need to only issue orders for purchase/sale of shares and the remaining procedures will be handled by the bank and Geojit.”

In the analysis, economictimes.indiatimes.com, an online news portal about economy writes, “Federal Bank has over six lakh NRI clients and has a representative office in Abu Dhabi and Relationship Managers in other Gulf countries.

Geojit BNP Paribas Financial Services Limited Managing Director and CEO C J George said with the two organizations operating together, NRIs could execute transactions in the stock market with maximum convenience.

Geojit BNP Paribas Financial Services has offices in UAE, Bahrain and Saudi Arabia.”

It is not very new offer for the customers because almost all banks have already introduced the scheme. Federal Bank is Kerala-based bank so; people of South India will get some good benefits with the Portfolio Investment Scheme. Recently, we saw the key rates for car and home loans also by all banks.
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