You may have heard the saying "A Good Banker Like Good Tea Can Only Be Appreciated When You Are In Hot Water". Haven’t you heard the saying "Fire Tests The Purity of Gold And Silver". Similarly the true value of a banker is realized in adversity. There is a famous saying that a banker is a friend who lends an umbrella in sunny weather and asks for it back in rainy weather. The tagline of State Bank of India is "With You All The Way" and "The Banker To Every Indian" What does this mean? This means that State Bank of India stands with you in good times and in bad. Those who stand by you in times of need are your true friends and State Bank of India is truly right up there. When you visit a bank what is it that strikes you the most? Is it the shinning glass and marble floors or is it the warm and smiling banker who sits behind the chair marked "May I Help You?".You already know the answer to this one. I would like to remind all of you that the team of financial planners at IndianMoney.com are always there for you to plan your financial needs in an efficient manner. You can explore this unique Free Advisory Service just by giving a missed call at 022 6181 6111.
State Bank of India Is A Banking behemoth and a financial services giant in India. As of December 2012 the SBI had 500 Billion Dollars worth of assets, over 15000 branches and over 150 foreign offices. It is headquartered in Mumbai Maharashtra. Here the Bank Of Madras, Bank Of Bombay and Bank Of Calcutta merged to form Imperial Bank Of India during the British Raj .This bank was nationalized in 1955 by the Government Of India and Reserve Bank Of India acquired a 60% stake in State Bank Of India .It stands at the 285th position out of 500 in the World’s largest companies. It also commands a mammoth 20% of all the deposits and loans among commercial banks in India. The bank has close to 170 foreign offices spread over 34 countries. The bank has over 27000 ATM’s in operation.
SBI Prepaid Card : Here State Bank of India has launched a prepaid card targeting the workers or contract laborers. This card can be charged with cash by the individual or his employer.SBI offers relaxed Know Your Client Norms for this smart payout card. Companies can transfer payments to workers through such cards even if they do not have a bank account The bank has safeguards in place to prevent misuse of these cards. This might just be the next big thing we seek. Here we can load money on these cards and hand them to our children. These can be used to withdraw their pocket money at any of the automated teller machines or for online purchases. This card is available to individuals as well as companies having a KYC complaint account at State Bank of India. Here you will have to pay INR 100 in order to get the card issued. You can then charge this card by putting in a sum of money on payment of INR 10.If you use this card at SBI ATM’s you will not be charged any amounts for your transactions. If you use this card for transactions at other ATM’s you will be charged INR 20 for financial transactions and INR 10 for non financial transactions. If you lose this card you will have to reissue it on payment of INR 100.The card is valid for a ten year period and the minimum amount you can load is INR 100.The monthly ceiling is INR 25000 which means you cannot fill this account with more than this sum per month. The person to whom this card is issued can hold only one card. The person who gets the card issued from his accounts can have a maximum of only three cards issued .Companies can have any number of cards but each employee can have only one card .However no interest is paid on these cards .You can check your balance using this card ,however you can’t use this facility for internet banking. This card is mainly used for paying of contract workers, vendors, laborers, domestic helps with cash. This is mainly used for low cost transactions and payments.
State Bank of India the largest lender in India cut its base rates by 5 Basis points from 9.75% to 9.7% in January this year. It had earlier in the month of September 2012 cut its base rate from 10% to 9.75%.But this is so small a base rate cut? What do I gain from this?. This is a gain for both SBI’s current as well as old customers.SBI Home Loans are priced at 25 basis points above the base rate. Here suppose in September 2012 you had taken a loan of 30 Lakhs for a term period of 20 Years at an interest rate of 10.25%.You would repay a sum of 40.68 Lakhs after 20 years. At current rates we have a 25 basis points rate above the base rate of 9.70%.We now have to repay 30 Lakhs for a term period of 20 years at an interest rate of 9.95%.This translates to 39.24 Lakhs repayable after 20 years .This translates to a saving of INR 1.44 Lakhs .Clearly a large sum of money. This shows that State Bank Of India is a path changer in the home loan lending business and other banks will have no choice but to follow the leader.SBI has slashed the processing fee for home loans and auto loans in the time frame from October To December 2012.For a home loan of 25 Lakhs the processing fee has reduced from 0.25% to 0.125%.For auto loans the processing fee has reduced from 0.51% to 0.255%.Clearly something to cheer about.
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