More banks hike PLR again

SBI chairman M S Verma said banks having limited avenues to raise resources have been hit hard by the severe liquidity crunch and are expected to revise upwards their PLRs. Stating that RBI’s money tightening measures were temporary and will be taken up for review in the next few weeks, he said SBI has “weathered the storm” so far.

“A second review of interest rate hikes (by state-run banks) cannot be ruled out completely. It will depend on each banks’ individual cost of funds,” Verma said. This follows the drying up of liquidity in the banking system.Indicating the shortage of money supply, interest rates in the inter-bank call money rates had shot up to 120-150 per cent last week.

ANZ Grindlays and Bank of Nova Scotia on Saturday kicked off a second round of PLR hike.

SBI, GE sign JV pact for credit cards

MUMBAI: SBI and GE Capital Corporation signed an agreement to set two separate companies to develop SBI’s payment card business. The marketing company will be called SBI Cards and Payment Services Ltd (SBICPSL) and the technology and processing company–GE Capital Business Process Management Services Ltd (GECBPMSL).

While SBI will hold a 60 per cent equity in SBICPSL and 40 per cent in GECBPMSL, GE Capital will hold 40 and 60 per cent respectively. SBICPSL and GECBPMSL will have an equity capital of Rs 150 crore and Rs 100 crore respectively.

The SBI card would be launched for the public by July 1 this year.