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  Hike in lending rates: Is it justified? Increase in MCLR:  Last week, major banks have increased their MCLR  (marginal cost of funds based lending rate) across various tenors by 5 and 10 basis points. The lending rates of existing borrowers and as a consequence their repayment obligations/ EMIs, will see an upward revision in the immediate future (depending on their lending rate linkage with the relevant MCLR tenor rate). The good news is that for the time being, there is no change in the lending rates, which are linked to the external benchmark rates like repo rate, etc. Background:  In a scenario, where RBI ·          revised its inflation projection from 5.2% to 5.7% for 2022-23, ·          indicated that focus, from now on, shifts to inflation control and ·      raised the interest rate for monies placed by banks with itself (standing deposit fac...

  Erstwhile SBH SATHABISHEKAM on 5th April 2022 Illustrious journey:  Had State Bank of Hyderabad (SBH) continued its journey, it would be proudly celebrating its Sathabishekam (80 years' completion) (founders’ day) tomorrow. The hundred per cent largest Associate, SBH, was merged with its parent SBI, when it was celebrating its Diamond Jubilee and was five days short of completing 75 years of glorious existence. As on date of merger, the bank’s total business was in excess of Rs.2.60 lac cr., higher than the business levels of Kotak Mahindra Bank (Mar 2016), one of the top five private sector banks in India today. The bank never received capital infusion in a big way from its parent and the healthy CAR presented year after year was from its retained profits only.  It had a network of 1930 branches well spread across India, with a niche for itself in at least five states (Telengana, Andhra Pradesh, Maharashtra, Karnataka and Tamil Nadu) and experienced staff numberin...

  Former MD Shri S.SRINIVASAN; My Memories Shri S.Srinivasan, affectionately called “SS” by everyone in State Bank of Travancore (SBT) in the 1970s and 1980s, is no more. He was the Managing Director, State Bank of Indore, when he retired from the services of the bank, in 2001. He belong to the first batch of probationary officers of the erstwhile SBT (please see photograph  in the end), who joined the bank in 1963. He was known as people’s man in SBT and was so simple that anyone in the bank, irrespective of his cadre or number of years of experience, can meet him in his chambers or talk to him in any public function. In a lighter vein, his popularity among staff made the union and association leaders jealous of him and they were relieved that he was not a threat since he was going higher up in the management side only. I never worked with him, but had interaction with him in the early part of my career. Thought I will share a few interesting incidents. I joined SBT in 19...