Rise in Credit card due to loss in small ticket personal loans

A report by Crisil Ratings stated that loss levels in small ticket personal loans and a portion of credit card receivables, which are at present at 7-9 per cent, can rise to 10-13 percent in three years.

Describing this section as ‘sub-prime’ assets in the Indian context, the report stated that these are unsecured loans between Rs 5,000 and Rs 25,000-30,000. Out of the total credit card received, about 15-20 per cent comes in the profile of low income groups.

Mr Tarun Bhatia, Head, Corporate and Government Ratings stated that the total retail assets of the Indian banking industry are about Rs 4 lakh crore. From this the portion of the ‘sub-prime’ section is about 5 per cent or Rs 20,000 crore.

There was a sharp point of failure during September-October 2007 due to the slowdown in recovery efforts, following the controversy over recovery methods of some banks.

Mr Bhatia said that there will be a slowdown in this section and some banks might exit the small ticket loans segment in the future.

It is considered that the retail segment which saw a compounded growth of 30-40 per cent two years back, is likely to see a growth of 20-25 per cent this year.

Delinquencies across all retail assets are likely to increase.

An increase is expected in the gross NPAs in home loans, which comprises over half of total retail loans, to 2.7 per cent in 2008-09, from 2.2 per cent in March 2007.

Whereas the gross NPAs for car loans are likely to go up by 3 per cent (2.3 per cent) and for commercial vehicles it is likely to increase by 5.5 per cent (4 per cent).

The Public sector banks may see higher NPAs as their risk management systems and collection practices are not as effective as their private sector counterparts

Mr Bhatia said that PSU banks are getting into the retail asset classes without fully understanding it. As per now even that problem had been resolved to a large extent.

When asked about the profitability of banks, Mr Bhatia informed that it will remain under pressure and might see a fall of 15-20 basis points in 2007-08, because of high cost of deposit.

As most of the banks have taken advantage of the rising equity market and this would be reflected in their profits.

Mr Bhatia stated for the next six months a reduction in lending rates on the retail side is unlikely in the near term, as deposit costs are still high and the Reserve Bank of India too had not reduced rates.

Counselors associated with NASFAA/NACAC ?

As students and parents, do you feel that you have been misled by counselors or companies that are members of NASFAA, and its sister organization, NACAC??
Consider the facts of these two issues:
1. Students were steered towards expensive, burdensome, and costly loans that were originated by companies who paid a premium in advertising and membership fees with NASFAA/NACAC?
2. Students and their parents have been deliberately provided false, inaccurate, and deceiving information about the legitimacy and legality of processing fees for merit-base awards, only to be steered towards back-room deals hatched by companies, universities, and counselors associated with NASFAA/NACAC.
3. New York Attorney General Andrew M. Cuomo blasted Dallas Martin about NASFAA's perceived role into the most serious, wide-spread financial-aid scam in the entire history of the United States of America. Mr. Martin was not charged with any crime, but the New York Attorney General implied that NASFAA had its fat hand and big ass in "an unholy alliance between banks and institutions of higher education that may not be in the student's best interest."

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SBI to tap Bhopal circle

State Bank of India (SBI) is expanding its reach to the rising potential areas. Moving forward on this SBI is planning to tap the rising potential in the Bhopal circle.

SBI will get on with its expansion program in the Bhopal circle which covers subscribers in states of Madhya Pradesh and Chhattisgarh. The plan will be completed by next year and will require increase in headcount, branch expansion, more ATMs and creating alternative channels to offer banking services.

Dinesh Kumar Jain, chief general manager, Bhopal circle, told Business Standard reporter, “We will open 140 more branches to render our customer-friendly services in rural, semi-urban and city areas of both the states. There are newly developed townships, colonies and residential areas in towns like Bhopal, Raipur and Indore, where we do not have a presence but they have good potential in banking.”

The bank is employing the expansion program in a major way and will hire 20,000 personnel this year all over India. “Of those the Bhopal circle will accommodate 2,500-3,000 people in various cadres; clerks, recovery officers and officers”.

He added, “We have already recruited 900 clerks approximately this fiscal (March 2008) and we are in the process of recruiting more techno-savvy dynamic and energetic younger personnel in clerk, recovery and probationary officers grade. As many as 300 probationary officers and 1,100 recovery officers are likely to join the Bhopal circle.” Bank after viewing the record hits received at some of its ATMs, the bank has planned to set up more ATMs.

In addition, the bank is also planning to launch mobile ATMs in Bhopal and other big cities of the states. “We have plans to establish 350 more ATMs in Madhya Pradesh and Chhattisgarh,” Jain added, “the circle will soon start mobile ATMs in bigger cities. The facility is operational in Raipur of Chhattisgarh.”

Bank is having a deposit base of Rs 30,000 crore and advances have touched Rs 20,000 crore in Bhopal circle. Bank expects the deposit figure to go up to Rs 32000 crore (expected to touch Rs 30000 next week) advances to reach Rs 20000 crore vis-à-vis Rs 16000 crore as on March 2008.after the opening of the branch. “Our focus is to migrate people from bank and use an alternate channel to do banking. This will not only arrest the rise in our operational cost but we will be able to render more customer-friendly services,” he added.

The bank has already made signed agreements with few departments of the state government and is carrying out discussions to offer various services; payment of value added tax, power bills, excise and stamp duty payment and college fee payment.

Jain further added, “Some government department are already working with us and more are likely to sync with us through computer network to offer e-governance facilities.”

Are you making The College Board rich??

Each year, thousands of students across America line the pockets of The College Baord by participating in a sham test that fleeces the pockets and purses of millions of Americans each year.

As many of you may know, The College Board is a member of NASFAA. NASFAA is a non-profit organization that boasts memberships amongst hundreds of prestigious colleges and universities. Though a concerted effort and deliberate colloboration, for many years each of the member schools and universities of NASFAA have required that prospective students take an SAT and/or ACT test to allegedly judge their propects for success at an institution of hiring learning.

During this time period, The College Board pocketed an enormous amount of money, and its officers became quite wealthy.

As a smoke screen, and a possible eye at limiting access to competing dollars, The College Board hooked up with NASFAA, and several other members of NASFAA, in a varierty of self-serving ventures. Eventually, the attorney generals of several states began sniffing for clues. Soon, the Student loan scandal became public.

Within the past few years, as more and more Americans and schools have debugged this pay-for-nothing scheme, more schools have opted to make the SAT an option rather than a reqirement.

Schools That Do Not Use SAT or ACT Scores for Admitting Substantial Numbers of Students Into Bachelor Degree Programs

http://www.fairtest.org/univ/optional.htm

Is Sarah Palin ready to be President??

Give me a break. No. Give me a drink instead. Am I only the person dreaming??
Several websites, including Askmen.com poised the question is Sarah Palin ready to be President?
Is this a fair question??

Anybody running for President or Vice-President of the U.S.A. should be prepared to be asked numerous questions concerning their character, integrity, intellect, and morality.

If a man or woman cannot efficiently and skillfully manage the affairs of his/her own family, then how can one expect him/her to manage the social, political, economic, and business affairs of an entire nation??

Naive Barack Obama claims that discussions of family issues are private and off-limits. So if incest is being committed is that off-limits also?? What about a teenage daughter getting pregnant because her parents did not raise her with proper morality or character?? These are legitimate issues to be asked for any presidential candidate.

The national media, specifically, the San Jose Mercury, suggested that there are a number of character issues involving Mrs. Palin, not to mention her strayful, super-charged, teenage daughter.

For example, the media reported that "Gov. Sarah Palin lives by the maxim that all politics is local, not to mention personal."

When there was a vacancy at the top of the state Division of Agriculture, she appointed a high school classmate, Franci Havemeister, to the $95,000-a-year directorship. A former real estate agent, Havemeister cited her childhood love of cows as one of her qualifications for running the roughly $2 million agency. Good enough, said Palin. Your'e hired!!

Budget reports indicate that Havemeister was one of at least five high school classmates Palin hired, often at salaries far exceeding their private sector wages.

When Palin had to cut the 2007 state budget, she avoided the legion of frustrated legislators and mayors. Instead, she huddled with her budget director and her husband, Todd, an oil field worker who is not a state employee, and vetoed millions of dollars of legislative projects.

And in May, a Wasilla blogger, Sherry Whitstine, who chronicles the governor's career with an astringent eye, answered her phone and an assistant to the governor was on the line, she said.

"You should be ashamed!" Ivy Frye, the assistant, told her. "Stop blogging. Stop blogging right now."

Is Sarah Palin ready to be leader and commander-in-chief of the U.S. military?? If you want war with Russia, then vote for Palin. There is no doubt that Putin would make her his little puppy. Just look how he fooled W. jr.

N.B.A. Superstars Barely Beat Spain.

On August 24th, 2008, the Associated Press wrote "Culminating a three-year mission to end years of embarrassment, the U.S. team survived a huge challenge from Spain, winning 118-107 in the gold-medal game Sunday."

To the players, fans, and many Americans, it would appear that the pecking order of N.B.A. superiority was restored in international basketball.

In fact, listen to what high-school graduate, multi-rich super-star LeBron James said at a press conference attended by the entire team. This non-college graduate remarked "Much respect to Spain, but the U.S. is back on top again."

Let me figure this out. After gathering the so-called best players of the N.B.A., including former rape suspect, and three-time N.B.A. champion Kobe Bryant, over-hyped, over-paid, finger-nail biting Lebron James, college drop-out Carmelo Anthony, and numerous other assortments of drop-outs and/or former crime suspects, the alleged best team in the world led by only four points with under 21/2 minutes to play. So much for domination.

"We played with great character in one of the great games in international basketball history, I think," said over-rated U.S. coach (Duke University) Mike Krzyzewski.

What Spain demonstrated is that true basketball is a game of wit, desire, and hustle. The Americans were lazy down the stretch and relied too much on pure athleticism (not surprising since half the team are drop-outs), instead of chessmanship.

The importance of education cannot be over-estimated. Given its roster of superstars, the U.S. team was outplayed but Spain could not overcome the lucky draw of athleticism on that particular night. In a game of the best of seven, there is little doubt the U.S. team would be in serious trouble.

So, Lebron. Grab a book. Do some research. The U.S. team is a long ways from "back on top again."

Greetings from National Academy of American Scholars

Hello to everyone. Welcome to the official NAAS-NEWS blog. We welcome your thoughts, inquiries, concerns, opnions, and plain old free-speech about matters of concerning financial-aid, college, education, and how politics and/or sports shapes your views in terms of your aspirations and goals.

Standard Chartered Bank ‘1Money’ offer preferred mode of payment

Standard Chartered Bank, a largest foreign bank in India has launched ‘1Money’. Bank has designed a product to help the customers do away with multiple plastic. It is the first the first card which has combined benefits of a debit and a credit card. ‘1Money’, will give the customer the choice of using the same plastic as a credit card or a debit card.

According to the Reserve Bank of India in India there are about 26 million credit card and 70 million debit card users. Year-on-year this number is growing by 28% and 41% respectively and the value of transactions is growing in similar percentages by 20% and 37% respectively. Hence, it is time that the Indian consumers get the option to decide their preferred mode of payment through one plastic.

Speaking during the launch, Shyam Srinivasan, Country Head – Consumer Banking, Standard Chartered Bank, said, “Innovation has always been a key focus in our business strategy. As one of the premium issuer of cards in the country, we have always looked for customer feedback and translated it into the most beneficial products offered. We believe with this initiative Standard Chartered will be the harbinger of a new era in customer delight in the Indian banking industry."

Present on the occasion Sai Narain CDK, Head - Consumer Transaction Banking & Strategic Initiatives Standard Chartered Bank said, “To further enhance customer experience, we felt the need to launch 1Money. The card aims to give our customers the unique experience of using multiple cards while holding just one piece of plastic. It has been our utmost priority to provide unmatched services to our customers and with this new service, we also hope to reach out to new customers who have till date, avoided availing debit or credit cards due to hassles of maintaining multiple plastics.”

The key features of 1Money are:

• The customer will get Visa Platinum Platform related benefits
• Platinum events from Standard Chartered Bank
• Cardholder will get Free Priority Pass
• Free Dining Plus Card offering dining and lifestyle benefits across the country
• Cardholder can avail Petrol Surcharge waiver
• ATM / POS Debit usage of Rs. 200,000 per day
  

The annual fee of the card will be Rs. 6000. Initially the card will be launched in the key metros and later it would be rolled out across in other cities.