NRI Newsletter May 2012
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SOUTH INDIAN BANK NRI NEWSLETTER May 2012 Dear NRI patrons, I am delighted to reach you through this letter. For decades a large number of NRIs have been in the forefront in services and entrepreneurship in foreign lands, doing India proud. Indian youth are inspired by NRIs to take up employment or set up ventures abroad .Your contribution to nation building is thankfully remembered by our countrymen. We owe you a debt of gratitude for your generous support to SIB all these years. Global economic scene continues to be mired in uncertainties. Initiatives of European Union to bail out Greece and improved US economic data on unemployment bestow a glimmer of hope. Though immediate turnaround will be a wishful thinking, it is a matter of relief to comprehend that global economy has retracted from the brink of danger and signs of stabilization are emerging in US and Europe. However high debt levels of developed economies and rising oil prices are key risks ahead. SIB continues to be a front runner in the NRI banking landscape. Leveraged by cutting -edge- technology and backed by a dedicated team of 5800 odd SIBians, our march in banking services, leaving indelible foot prints, is continued. We have expanded our pan India presence and as on 15-05-2012, we have 705 branches and 680 ATMs. To understand your business needs better and as a part of bank's recent initiatives, NRI meets were organized in Doha ( Qatar),Jeddah and Riyadh (both in Saudi Arabia) in the month of Feb 2012 in which bank's top officials participated. Overwhelming response from our beloved patrons made the functions, a grand success. We thank NRI patrons and their families for their kind presence in the meetings. We also thank our patrons for their valuable feedback on business strategies. In the near future, we are planning for more such NRI meets in different foreign countries. India, an emerging economy, continues to be in the lead in economic growth in any cross country comparisons, with GDP growth for 2012-13 estimated at 7.60 % (+/- 00.25%). Global oil prices have remained sticky at higher levels with import bills bulging for the country. In view of this, balancing growth concerns and inflationary concerns will be a task for the policy makers. Indicators however suggest that the economy is turning around as core sectors and manufacturing show signs of recovery. In order to commemorate the opening of our 700th branch at Thampanoor ( Thiruvananthapuram) on 30/03/2012, we have introduced an attractive term deposit scheme w.e.f 01/04/2012 available under domestic, NRO and NRE streams titled 'SIB 700' with high rates (9.90 % interest- tenure 27 months) and 'SIB 700 plus'( 10 % interest- tenure 39 months). 00.50 % extra offered for domestic deposit of senior citizens. Free Personal Accident Death Insurance of ` 1 lac is the additional advantage. Please contact branches/NRI Division or visit our website for more details including terms & conditions. I earnestly request you to remit more funds to your accounts with SIB and make use of this golden opportunity. Yet another year of superb performance by SIB! With your patronage, the bank has recorded a net profit of ` 401.65 Cr. on 31-03-2012 as against ` 292.56 Cr. as on 31-03-2011 registering a growth of 37.29%.The total business of the bank has increased by `13528.91 Cr. from ` 50,560.65 Cr. to ` 64089.56 Cr. On an year to year basis a growth of 26.76% registered. While total deposit has gone up by ` 6760.41 Cr. from ` 29,755.20 Cr. to ` 36515.61 Cr., the advance has increased by ` 6768.50 Cr. from ` 20805.45 Cr. to ` 27573.95Cr. Net NPA was brought down from 0.28 % to 0.27%,which is an indicator of strong asset quality of the bank. The Capital Adequacy Ratio is comfortable at 14%, much higher than 9% stipulated by RBI. Matching your requirements we are well equipped to serve you with an innovative product lineup. We look forward to your wholehearted support in our journey to reach the milestone of ` 100000 Cr. total business by 2014. With warm regards, Dr. V.A. JOSEPH MD & CEO SOUTH INDIAN BANK NRI NEWSLETTER DOLLAR TRENDS/ SENSEX MOVEMENT/ Interest rates for NRE Term Deposits & CRUDE OIL MOVEMENT FCNR (B) Deposits of SIB Crude Oil Price NRE TERM DEPOSITS (with effect from 01/05/2012) Date 1 $= Rs Sensex (BSE) per barrel 12-08-2011 45.34 16839.63 $85.38 SL.No. Period Interest Rates % 26-08-2011 46.15 15848.83 $85.37 1 1 year 9.25 16-09-2011 47.56 16933.83 $87.96 2 Above 1 year to less than 27 months 9.00 30-09-2011 48.97 16453.76 $79.20 3 SIB 700(27 months) 9.90 4 Above 27 months to 3 years 9.00 14-10-2011 49.25 17082.69 $86.80 5 Above 3 years to less than 39 months 9.00 28-10-2011 48.92 17804.80 $93.32 6 SIB 700 Plus (39 Months) 10.00 04-11-2011 49.22 17562.61 $94.26 7 Above 39 months 9.00 25-11-2011 52.25 15695.43 $96.77 FCNR(B) DEPOSITS (with effect from 07/05/2012) 16-12-2011 52.70 15491.35 $93.53 30-12-2011 53.45 15454.92 $98.83 SL.No. Period USD GBP EURO AUD Revised Interest Rates % 13-01-2012 51.60 16154.62 $98.70 1 1 Year to less than 2 years 3.05 3.86 3.30 6.95 27-01-2012 49.95 17233.98 $99.56 2 2 Years to less than 3 years 2.56 3.38 2.95 5.70 17-02-2012 49.44 18289.35 $103.24 3 3 Years to less than 4 years 3.67 4.47 4.07 6.76 24-02-2012 49.40 17923.57 $109.77 4 4 Years to less than 5 years 3.88 4.58 4.25 6.99 16-03-2012 50.48 17466.20 $107.06 5 5 years 4.11 4.70 4.45 7.09 30-03-2012 50.94 17404.20 $103.02 RFC Deposits: Interest rates for RFC Term deposits for 1 year to 3 years 16-04-2012 51.65 17150.95 $102.90 will be the same as FCNR (B) rates of corresponding maturity. TRANSFER OF FUNDS FROM NON-RESIDENT INTEREST RATES ON FCNR(B) DEPOSITS ORDINARY (NRO) ACCOUNT TO NON-RESIDENT RBI Vide: RBI/2011-12/535, DBOD. Dir.BC.102/13.03.00/ 2011- EXTERNAL (NRE) ACCOUNT 12, dated;04-04-2012,it has been decided that until further notice and with effect from the close of business in India as on The Committee to Review the Facilities for Individuals Under May 4, 2012, the interest rates on FCNR(B) Deposits will be as FEMA, 1999 (Chairperson:Smt. K.J.Udeshi) has under : recommended that the NRIs / PIOs may be permitted, subject to payment of applicable taxes, to transfer repatriable funds from their NRO account within the overall Maturity Period Existing Revised ceiling of US $ 1 million per financial year, for credit to their NRE account in India. At present transfer of funds from NRO 1 year to LIBOR / Swap plus LIBOR / Swap plus to NRE account is not permissible. less than 3 years 125 basis points 200 basis points On a review, it has been decided that henceforth NRI as 3 - 5 years LIBOR / Swap plus LIBOR / Swap plus defined in Foreign Exchange Management (Deposit) 125 basis points 300 basis points Regulations, 2000 contained in Notification No. FEMA.5/2000-RB dated 3rd May 2000, as amended from On floating rate deposits, interest shall be paid within the ceiling time to time, shall be eligible to transfer funds from NRO of swap rates for the respective currency / maturity plus 200 bps / account to NRE account within the overall ceiling of USD one 300 bps as the case may be. For floating rate deposits, the million per financial year subject to payment of tax, as interest reset period shall be six months. applicable (i.e. as applicable if funds were remitted abroad). Such credit of funds to NRE account shall be treated as Souce: RBI Website eligible credit in terms of paragraph 3(j) of Schedule-1 of Notification No. FEMA.5/2000-RB dated 3rd May 2000. The directions contained in this circular have been issued BAGGAGE ALLOWANCE under Sections 10(4) and 11(1) of the Foreign Exchange Baggage allowance for Indians travelling abroad was last Management Act, 1999 (42 of 1999) and are without re-vised in 2004. In this Budget finance Ministry proposed to prejudice to permissions / approvals, if any, required under any other law. increase the duty-free allowance for eligible passengers of Indian origin from ` 25000 to ` 35000 and for children of up to Ref: RBI/2011-12/536,A. P. (DIR Series) Circular No.117, 10 years from ` 12000 to ` 15000. dated: 07-05-2012 Source: Business Line Source: RBI Website SOUTH INDIAN BANK NRI NEWSLETTER INDIA PIPS CHINA FOR FOURTH YEAR FOREIGN EXCHANGE MANAGEMENT IN INWARD REMITTANCES (DEPOSIT) REGULATIONS, 2000 - CREDIT TO NON RESIDENT (EXTERNAL) RUPEE / FOREIGN India is estimated to be on top in terms of receiving remittances from its CURRENCY NON-RESIDENT (BANK) ACCOUNT workers abroad in 2011. This will be fourth year in succession when India will pip China. Vide;RBI/2011-12/465,A. P. (DIR Series) Circular No.95, dated; The World Bank's latest brief on 'Migration and Development' 21/03/2012 Reserve Bank of India (RBI) informed, as per Regulation 5(6) of Foreign Exchange Management (Borrowing or Lending in estimates that India is likely to receive nearly $64 billion in 2011 which Foreign Exchange) Regulations, 2000 notified vide Notification No.