Lower real or nominal interest rates may not be enough to stimulate growth when non-monetary factors impede revival in growth, Deepak Mohanty, executive director at India?s central bank, said on Friday. The negative impact of increase in policy rate is first felt on output before moderating impact on inflation, he said in a speech. India?s headline inflation accelerated to 5.79% in July, the fastest pace in five months, mainly driven by higher food prices and costlier imports.

EPFO settles 96% claims in April-July

Retirement fund body EPFO has settled 96.11% of the claims filed in April-July this year within the mandated 30 days period as per their citizen charter. A review of the performance of Employees? provident Fund Organisation (EPFO), revealed the proportion of claims settled within the 30 days period has increased from 88% in the entire 2012-13 to 96.11% April-July this year.

PSB customers made to pay for SMS alerts

Five public sector banks, including SBI and PNB, charge customers for SMS alerts even though the Reserve Bank of India (RBI) hasn?t issued any guidelines in this regard. ?As per information received from public sector banks, IDBI Bank, Punjab National Bank, State Bank of India, State Bank of Patiala and Vijaya Bank are currently charging their customers for SMS alerts,? finance minister P Chidambaram said in a written reply in the Lok Sabha on Friday. In March 2011, RBI had issued norms for banks to send online alerts to customers for all types of transactions.

LVB raises deposit, base rates

Lakshmi Vilas Bank has hiked its base rate by 25 basis points to 11.25% deposit rates for tenure less than a year by 50-275 basis points. The bank hiked its rates most for 15-29 tenure to 6.50% from 3.25% and for 30-45 days to 6.50% from 3.75%.

NHB net surges 16% to Rs 450 cr

The National Housing Bank (NHB) on Friday said its net profit for 2012-13 rose 16% year-on-year to R450 crore, up from R387 crore in the previous fiscal. Releasing the annual financial results, NHB CMD RV Verma said the bank?s total interest income for the fiscal ended June rose 21% to R3007.33 crore from R2,478 crore in the previous fiscal.

Banks can change 24% bond categories

Banks can transfer 24.5% of the government bonds held in Held-for-trading and available-for-sale categories to the held-for-maturity category by September 30 as a one-time provision to avoid large mark-to-market hit due to the recent rise in bond yields, the Reserve Bank of India said in a release. Banks have to mark-to-market bonds held outside the HTM and provide for any losses. Government bond yields have risen by a massive 175 basis points in just a month.