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Friday, October 31, 2014

Union Bank Q2 net up 78% at Rs. 371 cr

Union Bank of India reported a 78 per cent jump in net profit during the July to September period at Rs. 371 crore helped by write-back, lower provisioning and healthy non-interest income.

“The sharp increase in profit was due to Rs. 140 crore received by the public sector bank as write back of income tax,” said Arun Tiwari, Chairman and Managing Director, Union Bank of India.

Net interest income (different between interest income and expended) increased by a moderate 7 per cent to Rs. 2,085 crore as against Rs. 1,954 crore in the same quarter last year. However, non-interest income for the second quarter rose 33 per cent to Rs. 812 crore from Rs. 611 a year ago.

During the quarter provisions declined 16 per cent to Rs. 785 crore from Rs. 937 crore in the second quarter FY14.

Tepid growth

As on September 30, 2014, domestic advances grew 9 per cent to Rs. 226,011 crore, while domestic deposits rose 4 per cent.

“Our growth came from retail, agriculture and MSME, while corporate growth was flat as business growth remains subdued,” Tiwari said.

He added that the credit and deposit growth is likely to be at 11-12 per cent and 9-10 per cent for FY15, while (gross) NPAs will be contained at 4 per cent.

Gross non-performing assets (NPAs) worsened to 4.69 per cent as on September 30, 2014 as against 3.64 per cent as on September 30, 2013. Net NPAs also increased to 2.71 per cent from 2.15 per cent.

Though the bank made recovery of assets worth Rs. 516 crore, the slippages into bad loans were at Rs. 1,968 crore.

Net interest margins dropped to 2.56 per cent from 2.58 per cent in September quarter last year due to proportionately higher cost of funds. “We target NIM of 2.8-2.9 per cent for the full year,” Tiwari said.

The shares of Union Bank of India ended at Rs. 225.50, 0.58 per cent higher over its previous close on BSE.

Source : The Hindu
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IDBI Bank net dips to Rs. 118 cr on higher employee cost, provisioning

IDBI Bank today said its net profit fell by 38 per cent to Rs. 118.49 crore in the second quarter ended September 30 in the current financial year on higher employee cost and provisioning.

The bank’s net profit during the same quarter a year ago stood at Rs. 192.27 crore.

The bank made provisioning towards bad loans of Rs. 990.47 crore during July-September, 2014—15; up from Rs. 878.72 crore in the same quarter of 2013—14.

Meanwhile, employee cost went up to 497.31 crore during the quarter from Rs. 360.49 crore a year earlier.

“Total income has increased from Rs. 7,114.44 crore to Rs. 7,610.52 crore for the quarter ended September” it said in a BSE filing.

The non-performing assets (NPAs) rose to 5.72 per cent in Q2—FY15, from 4.98 per cent year ago.

Net NPAs, however, reduced to 2.79 per cent of total advances as of September 30, from 2.82 per cent year earlier.

IDBI Bank shares closed at Rs. 70.55 apiece on the BSE today, up 3.37 per cent from the previous close.

Source : The Hindu
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Karnataka Bank net profit jumps to Rs. 88.46 cr

Karnataka Bank recorded a net profit of Rs88.46 crore in the second quarter of 2014-15 as against Rs28.95 crore in the corresponding period of the previous fiscal, registering a growth of 205.56 per cent.

During the quarter, the net interest income (NII) of the bank stood at
Rs297.27 crore (Rs284.54 crore), and the other income at Rs102.77 crore (Rs87.80 crore).

There gross NPA of the bank was at 3.53 per cent (3.59 per cent), and net NPA at 2.37 per cent (2.25 per cent).

Provisions (other than tax) and contingencies came down to
Rs83.64 crore during the second quarter of 2014-15 as against Rs126.71 crore in the corresponding period of the previous fiscal.

Source : The Hindu
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State Banks' staff union meet in Mangalore on Nov 1 & 2

The 12th triennial general council meeting of State Banks’ Staff Union (Karnataka) will be conducted in Mangalore on November 1 and 2.

Addressing presspersons in Mangalore on Friday, M C Mangsuli, President of Karnataka unit of the union, said that Ashwini Mehra, Deputy Managing Director of State Bank of India, will participate at the inauguration of the programme.

He said that the State Banks’ Staff Union (SBSU) is representing around 99.99 per cent of the clerical and subordinate staff working in 700-plus branches of State Bank of India in Karnataka.

Various issues related to banking sector will be discussed at the meeting, he said.

Though the discussions on wage revision in banking industry under the 10th bipartite agreement are underway for more than two years, there are no signs of reaching an early settlement.

To achieve some of the demands, the United Forum of Bank Unions (of which SBSU is a part) has chalked out various programmes. The United Forum of Bank Unions will stage a one-day strike on November 12 in the country. This will be followed by relay strikes at zonal-level from December 2 to 5, Mangsuli added.

Source : The Hindu
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Manappuram Finance net up 73 per cent at ₹76.43 cr in Q2

Manappuram Finance Ltd has posted a 73.8 per cent increase in its net profit at Rs76.43 crore during the second quarter in the current fiscal compared to Rs43.98 crore in the preceding quarter ended June 30, 2014. The company’s net profit stood at Rs69.71 crore in the corresponding Q2 of FY-2013-14,.

The Board also approved an interim dividend of
Rs0.45 per share of face value of Rs2.

The operating income increased to
Rs 502.84 crore against Rs456.32 crore reported in the first quarter. The same was reported at Rs544.11 crore in Q2 of the previous fiscal.

The company recorded a 4 per cent increase in its gold loan Assets under Management (AUM) to
Rs8,518.03 crore against Rs8,197.50 crore reported in Q1 of the year. The aggregate gold loans disbursed during the quarter amounted to Rs5,835 crore.

As part of a policy decision to widen its portfolio, the company has decided to enter into housing loans, vehicle finance, and microfinance. The objective is to reduce concentration risk.

The company also restructured its top management with new appointments in the grade of Executive Vice President (EVP).

Aloke Ghosal has been appointed as CEO - Housing Finance. K. Senthil Kumar has joined as National Head - Commercial Vehicle Finance. R. Raghavender Anand has been inducted as National Head- Micro Finance.

I. Unnikrishnan has resigned from the position of Executive Director and Deputy CEO to pursue his entrepreneurial ambitions. He will be relieved from office on November 30 and will continue on the company’s Board of Directors as a Non-Executive Director.

Kapil Krishan, CFO, will now hold charge of investor relations and treasury management.

The company also signed a non-binding Term Sheet to acquire a majority equity shareholding in Asirvad Microfinance Pvt Ltd through a combination of secondary purchase of equity shares and primary investment by way of subscription to equity shares of the company.

The closure of the transaction is contingent, among other factors, upon satisfactory completion of due diligence and receipt of statutory and regulatory approvals including from RBI. Headquartered in Chennai, Asirvad Microfinance is an RBI registered NBFC-MFI. It operates in Tamil Nadu, Kerala, Odisha and Gujarat.

Source : The Hindu
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