Card protection through insurance is a good idea, but stringent guidelines make it quite unattractive.
Rising delinquencies and non-performing assets in the credit card business are forcing banks to reorient their outlook, from an aggressive sales strategy to inducting people who will focus on recovery and cleaning up the portfolio.
"Cards that are not active have a cost attached to them," said the head of the cards business with a foreign bank. The cost of each statement generated and posted is around Rs 10. In isolation, this cost may look negligible. But a bank with two million customers spends Rs 2 crore (Rs 20 million) a month on this communication and Rs 24 crore (Rs 240 million) annually. Then, there are card replacement charges that a bank has to bear when the validity expires.
Within 15 days of opening the registration process for Nano, its Rs 1 lakh car, Tata Motors has sold nearly 5,00,000 application forms, raking in Rs 15 crore (at Rs 300 each). Distributors associated with the Nano bookings said most of the forms were likely to translate into bookings.
Based on the current scenario, he classifies real estate as the highest in the risk grade, followed by infrastructure companies involved in construction, hotels, commodities and auto.
Deposit a minimum 500 grams of gold to a selected SBI branch, specify the tenure and deposit the metal. The interest rate for a 3-year deposit is 1 per cent, for four years it is 1.25 per cent and for a five-year tenure it is 1.5 per cent. And, on top of it, the income from this deposit is tax-free. "This is possible because when you deposit the gold, SBI gives you a gold bond. And there is no wealth tax on gold held in paper or electronic form," said CA Kanu Doshi.
ICICI Bank, the biggest credit card issuer, has made it conditional for some of the credit card applicants, who do not meet the bank's eligibility criteria, to open FDs under a scheme called Fixed Deposit Instant Credit Card.
Investment advisers believe that it makes little sense to swap assets (shares) accumulated over time for an expense (holiday). "Selling shares of a blue-chip company only reflects that you don't believe in it," said Gaurav Mashruwala, a certified financial planner.
Over the past few quarters, the auto industry's sales had been badly hit due to the recession. As a result, auto companies, distributors as well as direct selling agents are doing their best now to sweeten the deal for prospective customers.
Ensure maximum payout from the insurer when opting for a non-network hospital.
Chances are that some so-called investment consultant will confuse you with so many permutations and combinations that you will resign yourself to buying something that is not needed.
With fixed deposit rates coming down, bonds are once again proving to be an attractive investment.
The top-up policy is cost effective for both users and companies.
Banks are willing to help cardholders to settle dues.
Weighed down by mounting outstandings and non-performing assets (NPAs), credit card companies are taking strong measures that include slashing new card issuances and credit limits for existing customers.
Investors globally have found solace in gold in the last one year when major world economies slipped into recession. Sample this: According to World Gold Council data, investment by exchange traded funds in gold was 150 tonnes in the third quarter
Both property prices and interest rates have fallen sharply.
A market-savvy investor can also use this opportunity to make a quick buck. That is, purchase the share at a lower price from the market and sell it back to the company at a higher price.
With the rising cost of health cover, insurance companies are looking at innovative products to attract customers. The latest offering is top-up insurance that comes at almost half the premium.
For instance, in early December, SBI was offering 10.5 per cent on a 1,000-day FD. This was lowered to 10 per cent in mid-December. A fortnight later, in January, the bank is offering only 9 per cent for the same tenure. For investors, who missed the bus in October and November, this is certainly bad news. However, all isn't lost. There are some segments still where the rates on offer still look interesting.
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