Commercial Bank Loans and Insurance: IDBI Bank was hiked the rates on educational loans

Sunday 19 June 2011

IDBI Bank was hiked the rates on educational loans

IDBI Bank on Saturday hiked interest rates for select category of educational loans along with retail term deposit rates by up to 50 basis points, but has left the base rate unchanged.

“We have not hiked the base rate for now... the demand for credit is slow and we have also decided to look at the liquidity conditions,” IDBI Executive Director and Chief Financial Officer R.K.Bansal said after a meeting of its ALCO (asset-liability committee) here.

Although, it was expected that banks would pass on the extra burden to the borrowers after the Reserve Bank increased its key policy rate, for the 10th time in its mid-quarter policy review by 25 basis points on June 16, no bank has so far has gone ahead with the move as credit off take is weak. IDBI Bank had also hinted that it might hike its lending rates on the policy review day. However, it has opted to re price its assets on the education side. The Mumbai-based lender has decided to increase the lending rate by 25 basis points on education loans of between Rs.7.50 lakh and Rs.20 lakh, while for loans up to Rs.7.50 lakh, the rates have been cut by 25-50 basis points.

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Fundamental analysis of stock can be done by looking the company's condition, whether it is a good company or not. Here are some criteria you need to check:

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6. Pay attention to the profit. Analyze where it is coming. If it comes from operational profit, then it is good. But if it come from other sources such as asset sale, then you need to consider it again as an investment.

7. The company has high ROE (Return on equity). It is divided by diving net income with equity. High ROE is usually above 15% or 25% which depends on your country. In countries with higher inflation you need to find companies with higher ROE.

8. Calculate stock fair price. If current price is below its fair price then we should buy it.

By knowing fundamental analysis of stock, you can use it to choose stocks for option trading.

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Sunday 19 June 2011

IDBI Bank was hiked the rates on educational loans

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