Custom Search

Monday, November 9, 2015

Andhra Bank seeks to sell $209 mn worth bad loans to ARCs

State-run Andhra Bank is seeking to sell bad loans worth about 13.88 billion rupees ($209 million) to asset reconstruction companies, according to a newspaper advertisement on Monday.

The bad loans are in 29 accounts, the bank said in the advertisement.

Andhra Bank
on Saturday reported a 74 per cent increase in its second-quarter net profit to 2.51 billion rupees from a year earlier. Its gross bad loan ratio eased to 5.71 per cent from 5.75 per cent in the first quarter. ($1 = 66.4200 Indian rupees)

Source : Thehindubusinessline
Read more »

Govt to revise small savings rate by month end

Government is likely to reduce the interest rates on small savings schemes by the end of this month with a view to aligning them with the market rates.

“The government will take a decision on reducing small savings rate by the end of this month,” a Finance Ministry official said.

The ministry in September had announced its intention to review interest rates on small savings, which includes Post office savings and Public Provident Fund (PPF), after bankers said high rates on such schemes run by the government make fixed deposits of banks uncompetitive.

The government may leave the interest rates on Senior Citizen’s Savings Scheme and Sukanya Samriddhi Accounts unchanged.

With small saving deposits commanding a rate of 8.7-9.3 per cent, banks have been reluctant to transmit the entire policy rate reduction by the RBI to borrowers.

The median base lending rates of banks have come down by about 60-70 bps despite extremely easy liquidity conditions, which is a fraction of the 125 basis points of the policy rate reduction since January.

Small saving schemes include Post Office Monthly Income Scheme (MIS), Public Provident Fund (PPF), Post Office Fixed Deposit Scheme, Senior Citizen’s Savings Scheme, Post Office Savings Account and Sukanya Samriddhi Accounts.

Source : Thehindubusinessline
Read more »

Allahabad Bank Q2 net up at Rs 177 cr

Allahabad Bank has reported a net profit of Rs. 177.10 crore during the second quarter to September 30, 2015 against Rs. 141.44 crore in the corresponding quarter last year. The bank's gross NPA stood at Rs. 7,985.75 crore (Rs 7,674.27 crore).

Source : Thehindubusinessline
Read more »

Friday, November 6, 2015

Vijaya Bank opens Retail Assets Processing Centre at Ahmedabad

Vijaya Bank plans to increase its branch network in the Ahmedabad Region by adding three more branches during this financial year. The bank plans to scale up its business from Rs. 5,191 crore as of September 2015, to cross Rs. 7,000 crore by the end of the fiscal.

At the launch of Retail Assets Centralized Processing Centre (RACPC) at the Regional headquarters at Ahmedabad, A Murali Krishna, Deputy General Manager and Regional Head, Vijaya Bank, informed that the bank plans to more than double its home loan advances from Rs. 38 crore last year to Rs. 75 crore this fiscal. The average ticket size for home loan at Ahmedabad Region is Rs. 14 lakh.

The Ahmedabad Region has nearly 100 per cent credit deposit ratio. In its total advances portfolio of Rs. 2,500 crore currently, corporate advances stands at Rs. 1,200 crore. Retail segment advances stand at Rs. 347 crore, which the bank expects to increase to Rs. 450 crore.

Source : Thehindubusinessline
Read more »

PNB shifting gears to become a retail bank in big way

Punjab National Bank (PNB) is "shifting gears" to change itself into a retail bank in a big way, Usha Ananthasubramanian, Managing Director and CEO, has said.

As part of risk diversification strategy, the bank will focus on expanding the share of "small value loans” in its balance sheet, Usha said at a press conference to announce the second quarter results.

Special focus will be on retail loans. There is ample room for PNB to expand its retail loan book and this would be the way forward, she said.

For the second quarter ended September 30 this year, PNB on Friday reported a 7.9 per cent increase in net profit at Rs. 621 crore (Rs 575 crore). For the half year ended September 30, PNB's net profit stood at Rs. 1,342 crore.

On non performing assets, Usha said that the picture was better than the first quarter and the trend was in the direction of reducing NPAs.

In a change of tack, PNB has now decided to look at selling stressed assets to asset reconstruction companies (ARCs).

For the last 5-6 years, PNB had desisted from selling assets to ARCs.

"It is very difficult to say where we will land on the NPA front when we close the current fiscal. One thing is for sure, we are seriously focused on reducing NPAs and improving recoveries", she said.

Source : Thehindubusinessline
Read more »

Popular Posts

Desi Google | A2Z Famous Quotes | What's Cooking America | Joke Site