May 19, 2020

ANZ the first bank to match RBA cut

ANZ
RBA
nab
25 point reduction
Bizclik Editor
3 min
ANZ the first bank to match RBA cut

BREAKING NEWS: NAB has passed on the rate cut.

This story originally appeared on smh.com.au on 8 December 2011.

ANZ has become the first of the big four banks to cut interest rates in the wake of the Reserve Bank's decision on Tuesday, matching the 25 basis-point reduction.

After two days of silence in which the major banks have been resoundly criticised for holding off, ANZ said today that given the economic conditions facing consumers that it should pass on the full cut.

ANZ's cut will take effect next Friday, December 16, and will see its standard vairable mortgage rate reduced to 7.30 per cent. The reduction will save the typical mortgage holder with a 25-year, $300,000 loan about $49 a month.

 

The bank's reduction will now put pressure on rival banks to follow suit, including the two largest lenders, the Commonwealth Bank and Westpac.

 

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It will also put the National Australia Bank in the firing line. Many in the banking industry believe the Melbourne-based NAB has been considering a smaller cut than the RBA because of the funding pressures on its bottom line.

NAB was the only one of the big four banks not to pass on full the last rate of 0.25 percentage points by the Reserve Bank on Melbourne Cup day.

 

'Most difficult'

 

“In the face of the economic and banking crisis in Europe, our decision on the size of the interest rate change has been one of the most difficult we have made in recent times,'' said Philip Chronican, ANZ's Australian divisional chief executive.

''Retail banking margins have been contracting as the cost of funds has progressively risen over the last six months," he said.

“We know many people in the community are doing it tough at the moment and, on this occasion, we felt that a decision to reduce interest rates by 0.25%pa for home borrowers and for small business was the right one in the circumstances."

 

Bank of Queensland and MEBank moved on Tuesday to pass along the full 25 basis-point cut to their customers. A slew of credit unions have also matched the central bank cut, including bankmecu, My Credit Union, Police and Nurses Mutual Banking, Police Credit Union, Northern Beaches Credit Union, ECU Australia and Heritage Bank.

 

Regular changes

 

Mr Chronican said the ANZ will now announce changes for retail and small business variable interest rates on the second Friday of each month.

 

‘‘Bank funding costs are now largely unrelated to movements in the Reserve Bank’s official cash rate,’’ he said.

 

‘‘This provides a measure of predictability for customers on when rate changes will occur and it provides us with the flexibility to reflect movements in funding costs across the full spectrum of funding sources - not solely in response to the Reserve Banks cash rate.’’

 

The new small business rates also take effect on December 16. The bank also announced it will offer a special two-year fixed term mortgage at 5.95 per cent.

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Jun 8, 2021

Timeline: India takes unicorn leap with six in five days

India
Unicorns
Startups
tech
Kate Birch
2 min
We chart an historic week in India’s startup tech industry, where from April 5-9 the country achieved six unicorns

We chart an historic week in India’s tech industry, where in just five days, between 5-9 April 2021, the country achieved six new unicorns, bringing India’s total to 10 in 2021 to date, an immense unicorn leap from just seven in 2020 and six in 2019.

April 5: Meesho

India’s first social commerce unicorn, Meesho raised US$300m from SoftBank, Facebook and Shunwei Capital, giving the Bangalore-based startup a US$2.1bn valuation, a threefold jump from its previous funding round in 2019. Founded in 2015 by two IIT-Delhi graduates, Meesho connects producers and resellers, helping small businesses sell through social media. It has 45m customers and has enabled 13m entrepreneurs to start their online businesses with no investment.

April 6: CRED

Founded just over two years ago, Bangalore-based credit card repayment app CRED raised US$215m from Falcon Edge Capital and Coatue, nearly trebling its valuation to US$2.2bn from its January US$80m round. Allowing customers to pay off their credit card debt while earning CRED coins which they cash in for rewards, CRED has grown rapidly during COVID-19, doubling its customer base to nearly 6 million in a year.

April 7: API Holdings / Groww

The first epharmacy startup to gain unicorn status, PharmEasy (API Holdings), which has digitised 60,000 brick and mortar pharmacies and 400 doctors across India, raised US$350m in a round led by Prosus Ventures. Founded by four former Flipkart employees as a way of making investing simple, investment platform Groww became India’s second-youngest fintech unicorn, raising US$83m in Series D funding led by Tiger Global, quadrupling its previous round in September.

April 8: ShareChat

New Delhi-grown social media startup ShareChat, founded in 2016 by Mohalla Tech raised US$502m from Lightspeed Ventures, Tiger Global, Twitter and Snap taking its raised total over six rounds to US$766m and pushing its valuation to US$2.1bn. The funding will be used to grow its user base and short video platform Moj, which launched in 2020 following TikTok’s ban in India. The regional language startup claims 280m users.

April 9: Gupshup

AI-led conversational message startup joined the unicorn club after raising US$100m from Tiger Global giving it a ten-fold valuation of US$1.4bn. The smart messaging platform, which has seen accelerated growth during the pandemic, was founded in Bangalore in 2005 by serial entrepreneur Beerud Sheth, whose online freelancing platform Elance is now listed. Gupshup’s API enables 100,000+ businesses to build messaging and conversation experiences across 30+ communication channels. 

 

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