NEW DELHI, OCTOBER 18: While most bankers are apprehensive about the fate of the India Millennium Deposit after credit rating agency Standard & Poor lowered its India outlook last week, SBI chief G.G. Vaidya remains bullish. Addressing a press conference in the capital today, Vaidya said that against a target of $2 bn, he had got investor assurances to raise a total of $5 bn. Vaidya, who announced the launch of the scheme here, said that IMD will be eligible for deposits by NRIs and Overseas Corporate Bodies (OCB) and would be denominated in US dollars, pound, sterling and euro. The chairman told reporters that though the SBI is targetting to collect only $2 billion through its IMDs it has already received assurance for more than double that amount from foreign and Indian banks. Vaidya said feedback from the Middle East NRIs has been, particularly, encouraging. "We will retain the amount in excess of $2 billion raised before the earliest closing date of October 31'', Vaidya said. The NRIs in US may not be eligible to subscribe to the deposits, he said. "Due to applicable regulatory matters in the United States, IMD may not be offered, sold, resold, pledged, transferred , assigned or delivered to or within the United States or to United States persons, including NRIs or OCBs located or resident within the United States", Vaidya said. While the US dollar denominated IMDs will carry an interst rate of 8.5 per cent, pound sterling and euro denominated IMDs would have coupen rate of 7.85 per cent and 6.85 per cent respectively. The deposit acceptance commences on October 21 and the ends on November 20. The earliest closing date is October 31, 2000. VRS for SBI employees to be finalised within 3 months, bank to finalise insurance partner by end of October The voluntary retirement scheme (VRS) for employees of SBI is likely to be finalised in the next 3 months, bank CMD G G Vaidya said. "Bank is working out the manpower requirements, information technology plans and will take 2-3 months to finalise retirement scheme," Vaidya said. VRS would become necessary with technolgoy upgradation, he said, adding the scheme would be on the lines of the one being finalised by Indian Banks Association (IBA). SBI has over 2 lakh employees. On the interest rate scenario, Vaidya said "I do not forsee reduction in interest rate as there is very little room for it." "The interest rate will not rise either in short term but we will have to be watchful for long term." he said. The government is likely to place SBI Act Amendment proposal before Parliament in winter session, he added. Elaborating on the insurance plan, Vaidya said that the bank has shortlisted a few companies and by the end of this month they are likely to finalise the partner. The Bank proposes to enter life insurance only.
