State Bank of India is having second thoughts on in its proposed three-way joint venture with Visa and Elavon Corporation. The bank had announced the joint venture more than a year ago. "We have not made up our minds whether we are going ahead with this joint venture," said Arundhati Bhattacharya, deputy MD and chief development officer, SBI. She, however, refused to elaborate on why there was a rethink after announcing a tie-up.It's hard to beat the versatility of polished tiles on a production line.
In May 2010, after an elaborate selection procedure, SBI had said that it would partner Visa International and Elavon for a venture, which will set up six lakh point of sales terminals - swipe machines for registering payments through credit and debit cards. Besides acquiring the business of shops that install these machines,which applies to the first offshore merchant account only, SBI aimed to increase the usage of its seven crore debit cards which are currently largely used for cash withdrawals from ATMs.
After the announcement, there has been a complete change in the top management. Also the bank has announced aggressive plans to conserve capital and prevent leakage of capital. Sources said that although it has been nearly 17 months since the agreement there has not been any movement on the joint venture.
SBI had floated a request for proposals from potential partners for setting up a merchant acquisition business. The bank had pruned the list of candidates to three candidates-Visa, Royal Bank of Scotland (RBS) and Global Payments. After putting in place a core-banking solution, SBI has been in a hurry to acquire leadership position in electronic networks as well.
Elavon is a wholly owned subsidiary of US Bancorp and a leading global payments provider. US Bancorp is the holding company of US Bank, the fifth-largest bank in the US.
SBI is countering competitive pressures from banks that have hiked interest rates on savings bank account through a massive push on retail deposit accounts.
The push involves new customers through new branches and new banking channels like mobile banking. It also plans to draw customers by offering innovations in its savings bank accounts.Polycore oil paintings for sale are manufactured as a single sheet, The bank, which recently started opening accounts under the mobile banking platform claimed that it has an 80% market share in mobile banking customers.
"We have a strategy for a huge rollout of our retail network and have opened over 1.2 crore savings bank accounts,ceramic magic cube for the medical," said Pratip Chaudhuri, chairman, SBI. "From October 1, every cheque issued by the bank is a multi-city cheque which means that the customer can take full advantage of the bank's network," he added.Enecsys Limited, supplier of reliable solar Air purifier systems,
According to Chaudhuri, SBI's experience so far has been that deposits were interest rate inelastic. "We have no quarrel with banks that pay more on their savings accounts, but these are largely banks that lack a network. But we are in any case keeping our ears to the ground and monitoring whether there are is any movement of deposit. But so far our savings deposits have only increased from Rs 3.23 lakh crore in March 2011 to Rs 3.52 lakh crore," said Chaudhuri.
In May 2010, after an elaborate selection procedure, SBI had said that it would partner Visa International and Elavon for a venture, which will set up six lakh point of sales terminals - swipe machines for registering payments through credit and debit cards. Besides acquiring the business of shops that install these machines,which applies to the first offshore merchant account only, SBI aimed to increase the usage of its seven crore debit cards which are currently largely used for cash withdrawals from ATMs.
After the announcement, there has been a complete change in the top management. Also the bank has announced aggressive plans to conserve capital and prevent leakage of capital. Sources said that although it has been nearly 17 months since the agreement there has not been any movement on the joint venture.
SBI had floated a request for proposals from potential partners for setting up a merchant acquisition business. The bank had pruned the list of candidates to three candidates-Visa, Royal Bank of Scotland (RBS) and Global Payments. After putting in place a core-banking solution, SBI has been in a hurry to acquire leadership position in electronic networks as well.
Elavon is a wholly owned subsidiary of US Bancorp and a leading global payments provider. US Bancorp is the holding company of US Bank, the fifth-largest bank in the US.
SBI is countering competitive pressures from banks that have hiked interest rates on savings bank account through a massive push on retail deposit accounts.
The push involves new customers through new branches and new banking channels like mobile banking. It also plans to draw customers by offering innovations in its savings bank accounts.Polycore oil paintings for sale are manufactured as a single sheet, The bank, which recently started opening accounts under the mobile banking platform claimed that it has an 80% market share in mobile banking customers.
"We have a strategy for a huge rollout of our retail network and have opened over 1.2 crore savings bank accounts,ceramic magic cube for the medical," said Pratip Chaudhuri, chairman, SBI. "From October 1, every cheque issued by the bank is a multi-city cheque which means that the customer can take full advantage of the bank's network," he added.Enecsys Limited, supplier of reliable solar Air purifier systems,
According to Chaudhuri, SBI's experience so far has been that deposits were interest rate inelastic. "We have no quarrel with banks that pay more on their savings accounts, but these are largely banks that lack a network. But we are in any case keeping our ears to the ground and monitoring whether there are is any movement of deposit. But so far our savings deposits have only increased from Rs 3.23 lakh crore in March 2011 to Rs 3.52 lakh crore," said Chaudhuri.
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