Tag Archives: State Bank Of India

Bank of Baroda: 23-25 Pct Home Loan Growth

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Public-sector lender, Bank of Baroda has seen its home loan portfolio growing by 23-25 per cent during April-November, and expects the growth to pick up further in the next quarter, a BB official said.

“From April to November, 2009, the growth (in home loans) has been a healthy 23-25 per cent. We expect this momentum to continue in the coming quarter as well,” the official said.

The bank, however, did not have any immediate plans to follow its competitors to offer home loans at 8 per cent but may look at the possibility in future after assessing the market conditions, the official said.
“As of now, we are not looking at launching any such schemes, as the growth (in home loans) has been quite healthy even without any such strategies. May be, we will look at it later,” the official said.

Bank of Baroda currently offers home loans at a rate ranging from 8.5 per cent to 10.5 per cent, based upon the loan amount and tenure of the advance.

A host of lenders, including the country’s largest lender, State Bank of India and its nearest competitor ICICI Bank had announced similar home loan schemes to woo the spiring home buyers.
As on September, Bank of Baroda’s total retail loan book stood at around Rs 21,000-crore, out of which home loans contributed around 45 per cent, the official said.

The lender has also maintained a healthy asset quality on its home loan portfolio, the official said.
Its gross non-performing assets from the home loan segment presently stands at around 2 per cent.
SBI was the first to come with the dual rate home loan scheme early this year, which was followed by other leading players like ICICI Bank, Kotak Mahindra, Axis and leading housing loan financer, HDFC.

Public-sector lender, Bank of India also have plans to offer fixed rate of 8 per cent for two years for new home loans upto Rs 30-lakh from the new year.

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Loyalty Rewards Schemes to Raise Debit And Credit Card Spends

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Banks are gradually more looking at offering rewards or points on Debit and Credit card transactions in an attempt to attract more customers and raise card usage.

State Bank of India, launched a loyalty programme for its debit card customers in April 2009. Punjab National Bank is also setting up to launch a similar programme for its credit card customers in the next three to four months.

Loylty Rewards, the loyalty and rewards management company which formulated and implemented SBI’s programme, is also working with Deutsche Bank and Citibank which are likely to announce their programmes within the next two or three months.

SBI’s reward programme offers customers the option to redeem the points earned for using their debit cards with over 35 retail brands which include electronic brands, apparel, jewellery and also for booking movie tickets, bus tickets and air tickets.

The life of the points is also longer with a window of three years, during which customers can redeem the points. Future plans include tying up with mobile companies to offer redemption of points against mobile talk time, Mr Jayaraj said.

Deputy Managing Director (Information Technology), SBI, Mr A. Krishna Kumar, said that the programme was launched to give an incentive for customers to use cards.

“After launched the programme both the usage of debit cards and the demand for debit cards have increased. We don’t plan to discontinue the scheme,” he said. Prior to the scheme, SBI had a debit card base of 5.1 crore. This has now increased to 6.8 crore. The average number transactions through point-of-sales terminals (swiping of cards at merchants) has gone up from 12.9 lakh a month, to 21.7 lakh a month. Similarly, the average spends have increased from Rs 2.1 crore a month to Rs 3.7 crore a month. “Consumer loyalty and relationship management is a relatively new area in India. In fact, over the last decade, ‘customer connect’ has been disintegrating with more brands and more merchants entering the market,” said Mr Jayaraj. PNB’s rewards scheme is still in the preliminary stage and the bank is yet to decide on which merchants to tie up with, said a senior official from the bank. “We need to get customers to increase spends. So, we will look at merchants who are popular with customers,” said an official from the credit cards venture division of PNB.

The bank, which launched credit cards a year ago, has 41,000 credit card customers.

The target is to increase this to 50,000 by March and add 2 lakh credit card customers next fiscal, said Mr Ranjan Dhawan, Chief General Manager, PNB.