Welcome to the Week in Review on livemint.com. A show that brings you up to date on the week that was. Here are the top stories of the week...
After RBI, the government now nudges banks to cut rates.
Watch that credit spend, as banks are allowed to charge as much as 49% on credit cards
And as Satyam gets a new CEO, Sebi finally gets to question Raju
For all that and more, stay with me. I’m Mehak Kasbekar
The country’s largest bank, the State Bank of India on Jan 31st locked housing loans at 8% for one year. The announcement came just a day before the acting finance minister Pranab Mukherjee met with public sector bank officials and nudged them to cut interest rates. State-owned banks said they are willing to cut rates provided the cost of funds and inflation remain low.
SK Goel, chairman Uco bank
“With inflation coming down, there is a scope for cut in lending and deposit rates by 200 basis points. Our bank will cut the rates in 2-3 tranches by March 31.
Byte: Corporation Bank chairman JM Garg: “We are also reducing on the retail loans, housing loans, education loans, auto, personal loans.
This should come as a relief to RBI, which has been pushing banks to pass on benefits of rate cuts to its clients.
And in what could be a major blow to consumers, banks could charge an annual interest rate of up to 49% on credit cards for late payment. ((take visuals)) The Supreme Court on Tuesday stayed an order issued by consumer court that restrained banks from charging interest rates in excess of 30% per year from credit card holders. Citibank, HSBC, American Express Bank and Standard Chartered Bank had sought a stay on the commission’s order, saying placing a restriction on interest rates for delayed payment by card holders would lead to significant losses for banks.
And fraud hit Satyam gets a CEO. A.S. Murty, a Satyam executive for 15 years, took charge of the company on Friday almost a month after the scam broke out. In a simultaneous development the Securities and Exchange Board of India finally got to grill Ramalinga Raju.
The second season of the Indian Premier League has acquired more glitter. Actress Shipla Shetty joined the long line of bollywood stars who own IPL teams. Shilpa Shetty and her UK based beau Raj Kundra forked out 15.4 million dollars for an 11.7% stake in Rajasthan Royals. If the company were to be listed, it would have given best return compared to any other asset class.
The Royals started as the underdogs last season and ended up winning the first Indian Premier League season.