Fresh News

Some 10,000 Indians have been laid off in Gulf, especially workers from Kerala and other South Indian states, most of whom worked on construction projects.

 

The US financial crisis has hit the valuation of its banks. Citigroup, one of the largest banks in the world, with assets worth $1.95 trillion or Rs 9,72,075 crore, now values less than the State Bank of India (SBI), India's largest Bank.

 

From April on, Britain will implement new immigration restrictions on professionals from India and other non-EU countries so existing vacancies can first be offered to local workers.

 

Kerala bagged 11 National Tourism Awards for 2007-08 instituted by the Union Government.

 

NRI investments in India-based properties dropped by over 50% this season, with the four metro cities and “NRI-heavy” mirco markets in states like Gujarat and Kerala being among the worst hit- Jones Lang LaSalle Meghraj (JLLM), a global real-estate consultancy firm.

 

The Kerala Government on Wednesday asked the Centre not to sign the Asean agreement, holding that many conditions in it will have adverse impact on the agriculture sector in the State.

 

Canadian immigration minister Jason Kenney, on a visit to India last month, said Canada will admit more foreign students and fewer foreign workers this year.

 

Nikkitasha Marwaha 19, of Chicago USA, a communications student, was chosen Miss India Worldwide at a pageant in Durban South Africa.

 

A survey by the Pravasi Bandhu Welfare Trust, a Dubai based non governmental organisation, working to better the lives of Indian workers in the GCC shows that 95 percent do not save money and return to India empty handed even after working abroad for a decade. Just 5 percent of the Indian labour force including white collar workers bring back enough money to live comfortably back home.

 

The American Recovery and Reinvestment Act, better known as the stimulus bill that has been passed by the US Congress includes restricting firms receiving government bailouts from hiring foreign workers including Indians, through the skilled worker H1B visa programme, if they are replacing American workers.

 

Immigration citizenship minister Jason Kenney, at a meeting of an all-party parliamentary committee on citizenship in Toronto, hinted at the possibility of reducing the number of immigrants admitted to the country this year because of the economic crisis.

A PAN centre was inaugurated by India's Ambassador to Oman, Anil Wadhawa that will enable NRIs and PIOs living in Gulf countries to procure a Permanent Account Number as well as tax-related services.

 

According to statistics of the Non Resident Keralites Affairs Department, in 2007 over 800,000 Keralites returned to India and 2008 figures are expected to be more disappointing.

 

A US NRI group of professionals has introduced the India Health Card, a prepaid, reloadable card that lets NRIs fund healthcare needs of family and friends back home, instead of wiring them money for doctor's bills.

NRI realty investments drop by over 50%

The result: NRI investments in India-based properties dropped by over 50% this season, with the four metro cities and “NRI-heavy” mirco markets in states like Gujarat and Kerala being among the worst hit.

 

“Compared to last year, the drop in NRI interest in India-based properties has been almost 50% in all sectors. The metros showed a sharp drop in demand, largely owing to the steep prices”, says Sanjay Dutt, CEO - business, Jones Lang LaSalle Meghraj (JLLM), a global real-estate consultancy firm. “Very few luxury homes have been sold as compared to last year”, he adds.

 

At a time when the domestic demand in micro-markets in Tier-I, II and III cities began to slump in the third quarter of this financial year, the developers were hopeful that the demand from the NRIs will pep up the sentiments in the realty markets.

 

However, the global slowdown and the resulting slump froze the bullish sentiments among NRIs. “Though a far-from-spectacular number of transactions have indeed taken place this season, generalised job insecurity and a desire to conserve available cash among IT employees abroad has curbed investment demand for high-end properties, Mr Dutt said adding that the response was “significantly muted” from the NRI community this season.

 

The sharp corrections seen in some larger cities has also led to an “acute wait-and-watch attitude among NRIs who - just like everyone else - are now very price sensitive”, he explained.  - ET

Fresh News

Switzerland's unprecedented decision to let UBS AG hand US tax authorities clients' details risks damaging a banking industry that relies on a pledge of confidentiality to win business, legal scholars said.

 

A Group of UK-based NRIs, urged Punjab state government to appoint a caretaker to supervise properties owned by NRIs in the state. NRIs find certain miscreants trying to grab their properties by using illegal means.

 

The number of failed American banks are climbing, with eight entities going belly up in February alone, pushing the total bank failures in this year (2009) to 14.

 

Kerala Government will ensure disbursal of loans at lower interest rates by the Kerala Financial Corporation to returning NRIs.

 

Inkel, a company set up to develop infrastructure in the State through public-private partnership, has drawn up a proposal to set up “construction solutions and services parks” in four cities – Thiruvananthapuram, Kochi, Kozhikode and Thrissur.

 

Kerala's three international airports at Kochi, Kozhikode and Thiruvananthapuram were put on high alert after an anonymous bomb threat call.

 

State Bank of India has now come out with yet another rate cut for all categories of home loans. For a period of one year from now, the interest rate will be fixed at 8 per cent irrespective of the loan amount and after one year rate will be reset to the card rate at time of sanction.

Fresh News

Usually, gold is inversely related to the dollar and inflation. However, despite inflation falling across the globe and dollar strengthening against the Euro, gold is scaling new highs. Gold surged close to the $1,000 mark .

 

Moody’s Economy.com today said the Reserve Bank of India (RBI) could cut interest rates next week as the high fiscal deficit was limiting the Centre’s ability to step up spending and boost economic activity.

 

UBS, the Swiss banking behemoth, will pay a $780 million penalty to the US Justice Department and disclose the names of many secret account holders as part of an agreement to avoid prosecution, in a major change from traditional client secrecy.

 

Kerala will help Malayalees returning from the Gulf due to recession with a Rs 100-crore package for starting business ventures.

 

Kerala provided for Rs 10 crore for the non-resident department to help those returning after working for two years in the Gulf.

 

The government today said there is no milk shortage in country except Kerala, but assured that the deficit would be met.

 

Kerala budget made regional allocations include a massive Rs 1,500-crore package for the development of the Malabar region in North Kerala.

Fresh News

Kerala NRI organisations have requested both state and central governments to announce sops for the returning NRIs like interest-free loans and other sops.

 

Kerala Finance Minister hinted that his budget would have some special offers for the large number of NRIs, who are returning home after losing their jobs due to the economic slowdown.

 

India would be among the hardest-hit nations as the remittances sent home by its people working in the Middle East begins to dry up following the economic downturn.

 

Dubai Smartcity company has informed that their Kochi project is on track and not in trouble.

 

Kerala per capita debt level is highest among southern states.

Recession in Gulf for Kerala NRIs

For long, it was the Malayali's Promised Land. The lure of shining cars, neon lights and petro-dollars has had Keralites flocking to Dubai since the mid-1970s. The money they sent back bolstered the state's economy for over three decades, but the good times seem to be coming to an end, with the economic recession setting in.

 

An estimated 5.7 million Indian workers abroad sent home $27 billion in 2007 to make India the world's top receiver of migrant remittances, according to a World Bank report. And Kerala accounts for 19.4% or almost a fifth of all remittances by NRIs.

 

There are about 19 lakh Keralites in the Gulf, and 56% of remittances to the state originate from there. Economists believe that the slowdown in the Gulf countries will have a major impact on the state as it is heavily dependent on NRI remittances for its consumption expenditure.

 

Remittance figures with the state-level bankers' committee show a decline in the contribution by non-residents to the total deposits received by commercial banks in Kerala since 2007. While overseas deposits comprised 32% of total bank deposits in Kerala as of September 2007, it has dropped to 27.71% in September 2008. The deposits received by the state's banks as on September 2007 was Rs 97,113.30 crore, of which non-residents accounted for Rs 31,690 crore. But by September 2008, banks had received Rs 1,13,985 crore, of which just Rs 31,585 crore came from overseas residents.

 

There may be a fall in Gulf remittances as hundreds of jobs are lost in Dubai on a daily basis. Sudhir Kumar Shetty, general manager of UAE Exchange, Abu Dhabi, says, "We have not seen much of a dip in remittances compared to last year, but with new contracts not being signed and projects postponed, the situation looks bleak. There is going to be no growth in 2009."

 

A number of economic activities in the state, notably trade, real estate and construction, were financed by remittances, says a study done by Thiruvananthapuram-based Centre for Development Studies. The report submitted to the state government in December 2008 says the growth in remittances could see a reduced rate during the short and medium terms.

 

"We never expected the problem in Gulf to be so bad. Though we mentioned that remittances could be one channel through which recession could hit us, we underestimated its effect," says K J Joseph, who helped conduct the study.

 

Though there are no official figures for the number of Indians returning home, there are other indicators to show how bad the situation is. Dil Koshy, secretary of Agricultural Products and Processed Food Exporters' Association (APEXA) says, "Since December 2008, there has been a 40% fall in export of fresh vegetables and other food items to Dubai." Officials at the air cargo division of Kerala State Industrial Enterprises speak of a 20% fall in imports.

 

State finance minister T M Thomas Isaac says the worst is yet to come. "The situation is going to worsen in the coming months, particularly after March when the schools have their holidays," he says.

 

However, tourism arrivals have not fallen. "Contrary to expectations, tourist arrivals for December 2008 have recorded a one per cent rise over December 2007. It is very reassuring, given that we were expecting a 25% to 30% drop," says tourism secretary V Venu. (fromtimesofindia)

Fresh News

The Maramon convention, which is billed as the largest congregation of Christians in Asia, starts near Kozhencherry.

 

Kerala Governor RS Gavai has announced a fund for the welfare NRKs and an international school for their children as major initiatives.

 

The Kerala will setup a state-of-the-art Life Science Park at 260 acres of land at Veiloor Village near Thonnakkal, in Thiruvananthapuram.

 

Martin Luther King III to visit Kerala on February 23.

 

To promote 'fisheries tourism' Kerala has initiated a proposal to set up Rs 350 crore oceanarium in Kochi.

 

The Kerala government plans to invest Rs.10000 crore in the IT sector in the near future.

 

Thirteen American banks have collapsed so far this year -- more than half the number of such failures in 2008.

 

It's no surprise that as the economic packages across the world fail to give any boost to financial markets, gold's status as a safe haven strengthens. Expected to reach 1000 USD per ounce from current 975.

Fresh News

State Bank of India was the only Indian institution to figure in the top 100 rankings in "BrandFinance Global Banking 500" list of Top Global Finance Brands(2009)

 

Kerala to have 10 IT parks by 2011

 

All the 1016 government-run high schools in Kerala will be supplied with a laptop each as part of the IT@School project.

 

The Pravasi Malayalee Welfare Association Saturday urged both the state and central governments to come to the aid of the large number of NRIs who are returning to Kerala after losing their jobs due to the global economic recession.

 

Mr O.P. Bhatt, Chairman, State Bank of India, has been conferred the “Best Executive 2008” award by financial magazine Asiamoney.

 

State Bank of India (SBI), the country's largest public sector lender, today said it will install 150 biometric ATM machines across Gujarat by the end of March this year.

 

Kerala Cabinet today approved the proposal to set up a 2400 MW coal-based super thermal power plant at Cheeemeni in Kasargode.

 

Kerala will face a severe drought this summer as there has been a 20-25 per cent drop in rainfall.

 

SBI now has 4 branches and 7 ATMs in Singapore and they offer full retail banking facilities to customers.

Kerala feels the pinch as slowdown hits Gulf jobs

The southern state of Kerala is drifting towards economic turmoil as the global slowdown begins to affect expatriate remittances from Gulf countries.

 

Over the past nearly four decades, the state's economy was bring driven by petrodollars.

 

Two indications of the prosperity that the Gulf connection brought were palatial houses dotting even villages and an ever-growing balance in the non-resident Indian (NRI) bank accounts.

 

That party seems to be getting over, with job losses being reported from the Gulf countries in significant numbers.

 

Recruitment firms are telling Gulf job aspirants that the Gulf dream is on hold, if not over.

 

Says Josy (not his real name), who was all set to go to the Gulf this month as a restaurant waiter: "The recruitment firm has told me to wait a few more months as the employer in the UAE is unsure of business picking up immediately. In any case, I am also reconsidering the offer because the salary was too low."

 

The numbers of those returning home after job losses are yet to be officially ascertained but at least two clear signals point to something having gone wrong: a slump in the property market that was always patronised by people employed in the Gulf and a high rate of inquiry for school admissions for the next academic year.

 

Official figures on these will take some time coming, but as the word about job losses in the Gulf is spreading, Gulf-based prospective bridegrooms are no more in the highly-sought after bracket.

 

According to a senior executive in a construction firm here, whose company has operations in the Gulf and Kerala, the meltdown in the construction sector in the two markets has delivered a telling blow to the state.

 

"Large-scale recruitment for construction projects in the Gulf has stopped altogether and there has been a clear drop in the value of assets in Kerala in which Gulf Malayalis [people from Kerala] have invested," he says.

 

While the numbers of those returning are yet to be confirmed, banking statistics point to a slackening of funds in non-resident accounts.

 

Outstanding balances in NRI accounts in Kerala banks were lower at Rs316 billion (Dh26.3 billion) at the end of September 2008 as against Rs319 billion at the end of June 2008.

 

Banking circles feel that the December 2008 figures could be still lower, considering job losses in the Gulf.

 

What is worse for Kerala is the fact that the souring of the Gulf dream is coinciding with economic problems at home, caused by the global slowdown.

 

Kerala's exports in different sectors from seafood to coir products have been hit and its tourism industry is also affected by the economic crisis.

 

Late last year, state finance minister Thomas Isaac warned that the global meltdown had affected Kerala in different ways and that the state could witness job losses to the tune of 150,000 in the traditional sectors alone.

 

That figure, now seems set to swell by unemployed Keralites returning from the Gulf states.

Here's another round of funny lines on the recession

“Treasury Secretary Paul O'Neal has resigned. He didn't want to resign, but there wasn't any money left in the treasury so he's got nothing to do." -Jay Leno

 

"President Bush's economic plan will create 2.5 million new jobs. The bad news, they are all for Iraqi soldiers." -Craig Kilborn

 

"Bush told the attendees (at his economic forum) that he wants to simplify the numbers on Wall Street so that people can understand what they are looking at. Simplify the numbers? We are already looking at single digits!" -Jay Leno

 

"President Bush said today that it is our job to vote. That's what he called it, a job. And considering how the way economy is going, that may be the only job we have." -Jay Leno

 

"Yesterday Federal Reserve Chairman Alan Greenspan said he would be willing to serve another term. Greenspan said, 'Where else would I get a job in this economy?'" -Conan O'Brien

 

"Some good news for the economy. President Bush went on a month-long vacation." -Jay Leno

 

"Democrats were quick to point out that President Bush's budget creates a 1 trillion dollar deficit. The White House quickly responded with 'Hey, look over there, it's Saddam Hussein.'" -Craig Kilborn

 

"The federal government announced today that the recession ended back in November of 2001. It ended two years ago! Be sure to pass that on to all your unemployed friends. So you know what that means? The past twenty months of job layoffs, corporate bankruptcies and declining stocks, those were the good times. We should have been living it up." -Jay Leno

 

"The economy is in big trouble. Yesterday in a big speech, President Bush said the economy was still getting over the hangover from the 90's. And then, the president admitted he was still getting over his hangover from the 80's." -Conan O'Brien

 

"In a speech yesterday in Milwaukee, President Bush vowed to do whatever it takes to keep the economy strong. In fact he said that if he needs to, he will take vacation for another three months." -Jay Leno

 

"There's now speculation in Washington that President Bush is now planning to increase the economic sanctions on Iraq. And let me tell you if they are half as tough as the economic sanctions Bush has imposed on this country, they are doomed." -Jay Leno

 

"Things do not look good. The economy's gone south, we're at war, people are out of work. In fact, George Bush Sr. picked up the newspaper and thought, 'Hey, I must still be president.'" -Jay Leno

 

"President Bush is leaving the White House for a vacation. He's taking a month off. Yeah, take a break, you deserve it. But aides say that while on vacation, Bush will continue to make two or three speeches a week to make sure that the market keeps crashing." -Jay Leno

 

"President Bush hosted something called the President's Economic Forum down in Waco, Texas today. Waco. Apparently Jonestown and Guyana were booked up. When I think of government policy that works, Waco is the place to go. He invited members of small business to the summit. He was going to invite big business, but they're all in jail." -Jay Leno

 

"The Stock Market was down today. Two major businesses declared bankruptcy, consumer spending is at an all time low; in other words, Bush is back on the job." -Jay Leno

 

"The same week the Bush administration slashed pay raises for all federal workers, they announced they are going to provide bonuses to political appointees who do a good job. You know, that guy who cut everyone else's pay, he gets the bonus." -Jay Leno

 

"The FBI has issued a new terrorist warning that Al Qaeda may be planning a spectacular attack intended to damage our economy. Well I have news for them; they are a little too late. This is where President Bush is smart. Two years ago he did a preemptive strike to make sure our economy couldn't be any worse than it is right now." -Jay Leno

 

"Did you hear about this today, Treasury Secretary Paul O'Neill and top economic advisor Larry Lindsey have resigned. They resigned from the White House economic team? Shocked everybody in Washington, who knew Bush had a White House economic team? You know things are bad when Republicans are losing jobs in Washington." -Jay Leno

 

"Al Gore says President Bush's economic plan has zero chance of working. Now, this raises on important question: Bush has an economic plan?" -David Letterman

 

"According to a new study, bad economic times can actually be good for you because people tend to exercise more and eat better. This is not a recession; this is the Bush Health Care Plan." -Jay Leno

 

"Bush advisers have long been worried that a lagging economy could hamper the president's re-election chances. They hope that the Cabinet shake-up will provide a needed jolt. If that doesn't work, North Korea has to go." -Jon Stewart

Recession jolts Gulf, Indians head home

It’s not quite the end of the petro-dollar dream yet, but hundreds of Indians employed in the Gulf are forced to return home as the global recession hits the region. If the steady trickle of Gulf returnees turns into a tide, India could face a major crisis.

Authorities say the situation at the moment is not alarming, though reports of wage cuts and spiked jobs have been pouring in from the region hit hard by sinking oil prices and tottering construction, real estate and tourism sectors.

 

There are no hard numbers on the extent of the crisis. The Indian embassy in UAE says 20,000 Indians have returned from that country alone in the past four months. But these include those who were anyway planning to return and others coming on leave. ‘‘Some of them have been sent back for the time being and may return soon,’’ ambassador to UAE, Talmiz Ahmed, told TOI. Sources in airlines say, across carriers, there has been a dramatic increase in bookings to India from the Gulf.

 

Of the 5 million overseas Indian workers, 90% have jobs in the Gulf and South-East Asia. Till early 2008, the Gulf was in midst of a construction and realty boom and had been attracting Indian workers. Migrations from India had increased from 4.66 lakh in 2003 to 8.09 lakh in 2007. But things have changed since.

 

There are reports of construction projects coming to a halt across the Middle East. A case in point is the prestigious Nakheel Harbour and Towers in Dubai. Earlier known as Al Burj and expected to be the world’s tallest tower, work on the project was suspended last month.

 

As the recession spreads, also facing the axe are Indian professionals, technicians and low-skilled workers. Even those in sales and marketing have been hurt because they were mostly subcontracted by large companies which now look upon these staff as dispensable.

 

Indian workers in the Gulf contribute nearly 40% of the $27 billion in overseas remittances that come to India — accounting for 3% of India’s GDP. World Bank has said remittances generated by South Asian workers in the Gulf will come down by 9%. If the Middle-East economic crisis deepens, India faces a double whammy of dipping remittances on one hand, and jobless returnees flooding the domestic market on the other.

 

Kerala, of course, is likely to bear the brunt if things go from bad to worse. Remittances earned by Malayalees have fuelled construction, tourism and education in the state. In the past decade, however, many Malayalee emigrants had left the Gulf as labour laws there got harsher and the wage-expenditure mismatch widened. But that doesn’t seem to have dimmed expectations back home.

But to some, the situation is not all that dire. Going by the findings of the Indian embassy in UAE, which accounts for 1.5 million out of the 4.8 million Indian workers in the Gulf, there is no reason to panic. At least not yet. ‘‘As of now, we have found no evidence to suggest largescale departure of Indian workers,’’ ambassador Ahmed said.

 

Ahmed said reports on layoffs in the construction business were highly exaggerated. ‘‘I can say that out of 10 projects, at least five are going ahead. Of the remaining, some are merely on hold. In fact, the overall sentiment is one of optimism as the financial base of the country is sound. That’s true for other Gulf countries as well,’’ he said.

 

Others argue that Kerala is no longer as dependent on remittances as in the past. Researchers Irudaya Rajan and Zachariah call the migration situation in Kerala in the last four years ‘‘immobility in mobility’’. ‘‘The number of emigrants was 18.4 lakh in 2003; it was 18.5 lakh in 2007. The number of return emigrants had been 8.9 lakh in 2003; it was 8.9 lakh in 2007 also,’’ states a study conducted by the duo.

Slowdown may take its toll on Gulf remittances

This is a warning that the Government and banks can ill-afford to ignore. The International Monetary Fund (IMF) Managing Director, Mr Dominique Strauss-Kahn, in his first regional briefing for the Asia Press held recently in Washington, has raised the spectre of slowdown in economies, where people of different nationalities go to work, leading to possible diminishing of remittances.

Pointing out that remittances viz. transfer of money by foreign workers to their home countries, have become a very important source of revenue for many countries, the IMF chief said, “It goes from 3 per cent (of GDP) for India to sometimes 8 to 10 per cent in countries like Bangladesh. Of course, the slowdown in the economies where people from different nationalities go to work may diminish the remittances.”

This caution is pertinent to India as millions of workers are employed in the Gulf Cooperation Council (GCC) countries such as Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE. Lay-offs, especially in the construction sector, due to economic slowdown in the Gulf are likely to have serious economic repercussions for households in India as many depend on remittances.

According to Mr M. Venugopalan, Managing Director & CEO of the Kerala-based Federal Bank Ltd, remittances are likely to come down on account of the economic slowdown in the Gulf.

Visible slackness

“Slackness is visible in remittances from the Gulf. Blue-collar workers in the construction sector have been affected. This slackness could persist for a couple of quarters. However, once recovery happens, remittances will be back on track,” said Mr Avijit Nanda, President, TimesofMoney.

As per a report in the Ministry of Overseas Indian Affairs’ Web site, over four million Indian workers in the Gulf region remit nearly $5 billion annually. According to the World Bank, the top five recipients of migrant remittances in 2007 were India ($27 billion), China ($25.7 billion), Mexico ($25 billion), the Philippines ($17 billion), and France ($12.5 billion).

A World Bank study on outlook for remittance flows has highlighted the fact that remittance flows from the GCC countries are likely to fall more than those from the US and Europe, affecting recipient countries in West Asia, North Africa and South Asia.

The study reasoned that a continuation of the recent decline in oil prices, which have plunged from $150 to under $40 a barrel in five months, would make the GCC economies more vulnerable.

Combined with the impact of the financial crisis in the banking sector of these countries, this could potentially lead to a significant deceleration in construction activities in which a large number of migrants have been employed in recent years.

Under the base case scenario, remittance flows from the GCC countries would fall by 9 per cent in 2009 in nominal dollar terms as compared to an increase of 38 per cent in the previous year.

According to Mr Kiran Shetty, Country Director, Western Union Money Transfer, North America i.e. the US and Canada, account for 40-45 per cent of remittances into India, Gulf (20-25 per cent), Europe (14-15 per cent), and others (15-16 per cent).

Fun - Never Say No

A storekeeper heard his sales assistant say to a customer, “No, we haven’t had any for weeks and I doubt if we will get any soon.”

 

He rushed over to the customer as she was leaving and said, “I’m sorry, madam, he is wrong. We’ll definitely have some soon. In fact, we placed an order only yesterday.”

 

After she had left, he said to his assistant, “Never - I repeat – never say we don’t have something. Say we’ve ordered it and it will be arriving soon. Besides, what was she enquiring about?”

 

“Rain,” answered the assistant

Investments (please read the disclaimer)

Stock Market

Stock market again slipped to losses as global uncertainties increased. Corporate results were bad as expected and many players are hoping that all the bad news is already factored in the current prices. Global recession is stronger than expected and market may take some time to consolidate.

 

Real Estate

Head of major real estate player DLF has announced that they will cut prices by 20%. Already real estate market is showing significant slowdown. Real estate prices will pick up as and when economy again enters boom period. Speculation in real estate not advisable at this time, but buying homes for self use can be considered with some bargaining. Here give preference to completed projects and reputed builders. 

 

Gold

Gold strengthened thanks to higher global uncertainties. Investors normally rush to Gold as a safeguard against global uncertainties and inflation. Although inflation is much lower now, uncertainties increased.

Insurance/Mutual Fund

Opting for SIP (systematic investment plan) of Mutual Funds will be a good idea for next 2-3 years to take advantage of current low levels of market and also to avoid risk of bad timing. Please contact your SBI branch or nri.lhotri@sbi.co.in for details/investments.

Bank Deposits

All banks including SBI, are expected to reduce interest rate significantly over next few months as banking regulator RBI reduced key rates more than expected. All over the world interest rates are expected to soften in near term. It is a good time for NRIs to lock in to the present high NRE/FCNB/NRO FD interest rates before rates come down. Also NRI Interest rates offered by SBI is substantially higher than interest rates offered by good foreign banks in USA/UK. NRIs can also opt for DTAA benefit for SBI NRO deposit and earn better post tax returns.

 

NRI Interest Rates

From 1st Feb '09 - Interest Rates %pa	NRO Rs	NRE  Rs	USD $	Euro €	GBP £	Cand $	Aust $	Yen ¥
1 year to less than 2  years	8.50	3.73	2.98	3.28	3.48	3.30	4.84	1.98
2 years to less than 3 years	8.75	3.32	2.57	3.24	3.09	2.34	4.04	1.77
3 years to less than 4 years	8.50	3.68	2.93	3.54	3.41	2.64	4.46	1.83
4 years to less than 5 years	8.50	3.68	3.24	3.79	3.73	2.83	4.75	1.90
5 years (NRO upto 10 yrs)	8.50	3.68	3.45	3.98	3.98	2.99	4.88	1.96
1000 Days Deposit	9.00	Saving Bank Interest Rate -3.50%

 

Disclaimer -

Content on this e-magazine may not necessarily convey the views of the Bank, Branches or its Offices/Officials. Terms & Conditions Apply. The information and opinions contained herein are furnished from various sources without any liability on the part of SBI or its employees. All materials are for discussion purpose only and should not be treated as recommendation /advice/guarantee or opinion of a registered Financial Advisor.

 

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