ICICI Bank signs $300 mn loan deal with Japan banks

Japan Bank for International Cooperation (JBIC) and Sumitomo Mitsui Banking Corp (SMBC) completed a $300 million loan deal for ICICI Bank, JBIC said in a statement on Friday. JBIC is providing $180 million, while SMBC and Bank of Tokyo-Mitsubishi UFJ are funding $120 million. The commercial portion is guaranteed by JBIC, it said. JBIC and SMBC were the arrangers to the deal. The funds will be used to support renewable energy and energy efficiency projects in India. In March 2011, the borrower got 15.3 billion yen loan and a $200 million loan from...

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Govt to infuse Rs 18,000 cr in 12 PSU banks

The finance ministry will be infusing Rs 18,000 crore in the current financial in 12 banks, including the State Bank of India (SBI), and will be seeking supplementary grants from Parliament in the Budget session. "There are 12 banks in which we will infuse money in 2011-12. The amount will be Rs 18,000 crore. This includes Rs 7,900 crore for State Bank of India (SBI)," sources said. Besides SBI, other lenders that would be given capital support in the fiscal include Punjab National Bank, Central Bank of India andThe finance ministry will be infusing...

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IRDA forms Health Insurance Forum for consultation

The Insurance Regulatory and Development Authority has formed a Health Insurance Forum to act as a consultative body for all stakeholders. “In view of the growth in the health insurance industry, it is necessary to create a forum for an effective dialogue between hospitals, insurance companies, third-party administrators and consumer,” Mr J. Hari Narayan, Chairman, IRDA, said in an order issued here.Role of forum The functions of the forum will be to advice and assist the regulator in evolving health insurance regulations and facilitate the creation...

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Lakshmi Vilas Bank net rises 10.35% in Q3

Lakshmi Vilas Bank has registered a 10.35 per cent increase in net profit in the quarter ended December 2011 compared to the corresponding year-ago period. The bank's net profit rose to Rs 28.35 crore (Rs 25.69 crore) and its total income was up 49 per cent at Rs 429.49 crore (Rs 287.57 crore). However, compared to the 49 per cent growth in its total income, the total expenditure swelled 66.4 per cent to Rs 381.38 crore (Rs 229.09 crore).Higher expenditure Explaining the reason for the significant increase on the expenditure side, LVB's Chief Executive,...

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IRDA to make health cover for HIV patients mandatory

HIV/AIDS patients, doctors and nurses who are vulnerable to the infection can look forward to health insurance cover soon. At present, health insurance cover is not being provided to these categories of customers. In an exposure draft released on Friday, the Insurance Regulatory and Development Authority has asked all life and general insurers to put in place an underwriting policy on health insurance coverage for persons suffering from HIV. “The Authority has received representations from various stakeholders, including public bodies and the Government,...

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Manappuram Finance net jumps 117% in Q3

Thrissur-based Manappuram Finance Ltd has registered a 117 per cent increase in its net profit in the third quarter of the current fiscal ending December 31, 2011, touching Rs 161.37 crore against Rs 74.53 crore in the corresponding quarter of last year. The net profit for the nine months up to December also rose, by 124 per cent to Rs 404.50 crore (Rs 180.86 crorein the comparableyear-ago period). The board has also approved an interim dividend of Re 0.50 per share. Mr V. P. Nandakumar, Executive Chairman, said that the aggregate gold loan disbursements...

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SBM net profit down 15.98% in third quarter

State Bank of Mysore registered a net profit of Rs 110.94 crore in the third quarter of 2011-12 against Rs 132.04 crore in the corresponding period of the previous fiscal, recording a decline of 15.98 per cent. The net profit for the first nine months of the current financial year stood at Rs 253 crore as against Rs 336.79 crore in the corresponding period of the previous fiscal. The net interest income of the bank during the third quarter stood at Rs 413.42 crore (Rs 443.79 crore). However, ‘other income' of the bank registered a growth, at Rs...

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Sunil Kaushal is new head of StanChart India

Standard Chartered Bank has appointed Mr Sunil Kaushal as the Regional Chief Executive, India and South-Asia. He has taken charge from Mr Neeraj Swaroop, who will relocate to Singapore as Regional Chief Executive for South-East Asia (excluding Singapore). Before taking the helm of India's largest foreign bank, Mr Kaushal was President and CEO of Standard Chartered Bank, Taiwan. He joined Standard Chartered in Dubai in 1998 and has since held several senior roles in Consumer and Wholesale Banking. In his new role, Mr Swaroop will have governance...

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Andhra Bank Q3 profit dips 8.5% on higher provisioning

Andhra Bank reported a 8.5 per cent dip in net profit at Rs 303 crore in the third quarter ended December 31, 2011, compared with Rs 331 cr in the year-ago period. “The decrease in net profit was due to increase in provisions because of restructuring of some accounts,” Mr B. A. Prabhakar, Chairman and Managing Director, Andhra Bank told newspersons here on Thursday. A bulk of restructuring was done in the telecom sector. Including the Rs 1,150 crore of restructured loans during the quarter under review, total restructured portfolio stood at Rs...

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Corp Bank net up 5% in Q3

Higher cost of deposits, and provisions for loans and investment depreciation tempered Corporation Bank's net profit in the October-December 2011. The public sector bank's net profit nudged up by 5 per cent to Rs 402 crore, against Rs 382 crore in the corresponding year-ago period. In the reporting period, cost of deposits increased to 7.64 per cent (5.72 per cent in the October-December 2010 period). While provisions for bad and doubtful debts increased by 22 per cent to Rs 440 crore (Rs 360 crore), that for investment depreciation jumped by 460...

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NHAI bond helps banks expand current account deposits

The euphoria over the National Highways Authority of India’s (NHAI) bond issuance not only allowed the public sector entity to raise money for financing its operations, but also benefited banks by helping them expand their low-cost deposit base. While mobilisation of CASA (current account savings account) deposits has been challenging for banks in the current environment of high-term deposit rates, the current account balances of top lenders like ICICI Bank, HDFC Bank and Axis Bank increased in the last quarter — primarily because of flows related...

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UCO Bank expects govt to infuse Rs 200-300 cr capital by March

State-owned Uco Bank expects the government to infuse Rs 200-300 crore by March to help the lender meet 8 per cent Tier-I capital requirement. "The exact amount is not yet known but we are expecting anywhere between Rs 200 and Rs 300 crore by March to meet the eight per cent tier-I capital," Uco Bank Chairman and Managing Director Arun Kaul said today. The bank's capital in December slipped to 7.79 per cent. The capital adequacy ratio, or CAR (as per Basel II norms), during the October-December quarter was 12.33 per cent, down from 13.02 per cent...

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Rs 1,000 denomination banknotes to be issued non-sequentially: RBI

The Reserve Bank today said it will soon start issuing banknotes of Rs 1,000 denomination in non-sequential numbering. The packets of banknotes in non-sequential number will have hundred notes, the apex bank said in a statement. In June last year, RBI had started issuing Rs 500 denomination notes in non-sequential numbering. "It has now been decided to issue banknotes of Rs 1000 denomination also on similar lines," the statement said. The bands of the packets containing the banknotes in non-sequential number will be superscribed with the words...

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UCO Bank net profit rises 11% in Q3

Kolkata-based UCO Bank posted a 11 per cent rise in net profit to Rs 333 crore for the quarter ended December 31, 2011, against Rs 301 crore in the corresponding year-ago period. Net interest income, however, dipped by three per cent to Rs 103 crore during the period under review. Shares of UCO Bank rose by 3.71 per cent to close at Rs 71.30 on the BSE on Wednesday. Kingfisher exposure The bank witnessed fresh slippages to the tune of Rs 537 crore, of which, Rs 291 crore is due to its exposure to Kingfisher Airlines. “We started the cleaning up...

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Postal Department applies to RBI for banking licence

The Postal Department has applied to the Reserve Bank of India for a banking licence, the Communications Minister, Mr Kapil Sibal, said here on Wednesday. Mr Sibal said he had written to the Finance Minister, Mr Pranab Mukherjee, to expedite the granting of licence. Speaking on the sidelines of the postal policy round table organised by FICCI, Mr Sibal said, “A national postal policy targeting expansion and modernisation of the postal network would be announced during this year. The Government does not intend to issue licences to courier service...

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Golden Peacock Award for Central Bank

Central Bank of India received the Golden Peacock Award for innovative product/service for its retail product Cent Sahayog launched in October 2011. Designed to strengthen the micro and small manufacturers and service providers (MSE) through a process of fast credit delivery, this product aims to bring this largely un-banked segment into banking fold. Instituted by the Institute of Directors (IOD), the Golden Peacock Awards are declared annually for excellence in the fields of quality, training and innovative product/service among Indian industries....

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SKS Microfinance appoints Ombudsman

SKS Microfinance Ltd today said it has appointed Mr Verghese Jacob as its Ombudsman with immediate effect and also created toll-free helpline in eight Indian languages. Mr M.R. Rao, Managing Director and Chief Executive Officer, SKS Microfinance, said Mr Verghese will help the company set new benchmarks of excellence in customer protection and grievance redressal. “The appointment of Mr Verghese Jacob as our Ombudsman showcases SKS Microfinance Ltd’s commitment to continue its pioneering customer protection and grievance redressal initiatives including...

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SBBJ profit up 24% in Q3

State Bank of Bikaner and Jaipur has reported a 24 per cent increase in net profit at Rs 164 crore in the October-December 2011 period, against Rs 132 crore in the corresponding period last year. A 37 per cent increase in net interest income to Rs 630 crore (Rs 430 crore in the October-December 2010 period) boosted the bank's profitability despite provisions towards bad loans jumping to Rs 142 crore (Rs 76.50 crore). Mr Shiva Kumar, Managing Director, SBBJ, attributed the profitability to better funds management and acquisition of high-yielding...

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IDBI net drops 9.7% amid high fund cost, Kingfisher account

The youngest public sector lender IDBI Bank today reported a 9.7 percent dip in its third quarter earnings to Rs 410 crore on rising bad loans and higher interest expenses. "We had to take a hit on our post-tax profit due to a one-time provision of Rs 105 crore on account of an aviation account which has become non-performing (the bank has a Rs 700-crore bad loan exposure to Kingfisher Airlines), during the December quarter, which pushed up our gross bad loans to Rs 750 crore," chief financial officer P Sitaram told PTI in a post-result conference...

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Govt stake in SBI to go up by 2.5% post Rs 7900 cr capital infusion

The country's largest lender State Bank of India (SBI) today said the government's stake in the company is likely to increase by up to 2.5 per cent following the capital infusion of Rs 7,900 crore. "If you go by the past share price of SBI, it (the price of preferential allotment) is likely to be somewhere about Rs 1,800 to 2,000. If that is the range that is going to happen, then government equity shares will go up by 2-2.5 per cent," SBI Managing Director Diwakar Gupta told reporters here. At present, the government of India holds a 59.4 per...

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Higher interest income lifts ICICI Bank Q3 net 20%

ICICI Bank reported a 20 per cent increase in its net profit at Rs 1,728 crore in the quarter ended December 31, 2011, on the back of an increase in interest income and lower provisions on account of a decrease in non-performing assets. In the corresponding year-ago period, it had recorded a net profit of Rs 1,437 crore. The bank's profitability in the reporting quarter was also boosted by dividend income of Rs 150 crore from its subsidiary, ICICI Prudential Life Insurance Company, which posted a net profit for the first time since inception. Provisions...

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Nabard sanctions Rs 20 lakh to Ahmedabad bank to finance JLGs

The National Bank for Agriculture and Rural Development (NABARD) has sanctioned a grant assistance of Rs 20 lakh to the Ahmedabad District Cooperative Bank for a project involving formation and finance of 1,000 Joint Liability Groups (JLGs). The Bank will be financing these groups in Ahmedabad and Gandhinagar districts in two years. The assistance from NABARD is partly given at the time of sanction of loan by the bank to JLG and partly after prompt repayment by JLG, Mr H R Dave, Chief General Manager, said here on Tuesday. With land-holdings becoming...

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United Bank of India net spurts 38.5% in Q3

United Bank of India on Tuesday posted an increase of 38.5 per cent in net profit to Rs 226 crore for the third quarter ended December, 2011, compared with Rs163 crore recorded in the same period of last fiscal. During the quarter, business of the bank stood at Rs 1,41,915 crore, with advances touching Rs 59,100 crore and deposits Rs 82,815 crore. Net interest margin (NIM) during the quarter stood at 3.38 per cent as compared to 3.21 per cent in the corresponding period of last fiscal, said Mr Bhaskar Sen, Chairman and Managing Director, UBI. Operating...

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Andhra Bank launches loan for professionals

Andhra Bank has launched a new loan for practising professionals, called AB Professional Loan. “The service sector is growing and many professionals are in need of capital. The idea is to promote self-employed professionals,” Mr B.A. Prabhakar, Chairman and Managing Director of Andhra Bank, said after formally launching the product here on Monday. Professionals including chartered accountants, engineers, advocates and management consultants can apply for collateral-free loans. The maximum amount of loan will be Rs 10 lakh with 14 per cent interest...

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Life insurance sale must be need based, says IRDA

The sale of life insurance policies are set to become more scientific soon. The life insurers should ensure a need-based sale of life insurance products by their direct sales personnel, the Insurance Regulatory and Development Authority said in the draft guidelines on product matrix released on Tuesday. “It is important and necessary for insurers to have in place a suitability index (or a prospect product matrix) that can serve as a self governing tool to assess the quality of sale,” Mr J. Hari Narayan, Chairman, IRDA said. As per the draft guidelines,...

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Muthoot Finance Q3 profit jumps 61%

The Kerala-based gold financing company, Muthoot Finance Ltd has registered a 61 per cent growth in its net profit to touch Rs 251crore for the quarter ended December 31, 2011, against Rs 155 crore in the corresponding period of the previous fiscal. The figures for nine months ended December 31 stood at Rs 657crore (Rs 355 crore). The total income for Q3 stood at Rs 1,231crore (Rs 645crore), a growth of 91 per cent. The retail loan assets under management increased by Rs 1,944 crore to Rs 22,885crore. The company has got a branch network of 3,480...

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Bank of America gets top fees in $10 billion M&A double

LONDON: Bank of America Merrill Lynch stands to earn the lion's share of a fee pot worth around $100 million as the only bank to win a role related to both multi-billion dollar bids for Swiss companies Roche and ABB. The firm would collect $25-$33 million for advising engineering group ABB if a $3.9 billion friendly deal with US electrical components maker Thomas & Betts goes ahead, according to estimates from Thomsonreuters / Freeman Consulting. Bett's adviser Deutsche Bank would earn $30-$35 million in the event of a deal. Bank of America...

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SBI Life launches multi-lingual website

Private insurer SBI Life Insurance today launched multi-lingual website in nine Indian languages to facilitate communication with customers in the language they are comfortable with. The website will provide information in Hindi, Marathi, Gujarati, Tamil, Telugu, Malayalam, Bengali, Kannada and Punjabi. “In line with our customer centric business philosophy, the multi-lingual website has been created to facilitate communication with customers in the language they are most comfortable with. The initiative is aimed at further simplifying customers’...

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Provision reversal helps LIC Housing Fin net grow 43%

Helped in good measure by reversal in provisions, LIC Housing Finance Ltd has reported a 43 per cent increase in net profit at Rs 306 crore in October-December 2011, against Rs 213 crore in the corresponding year-ago period. With the housing finance company aligning its provisioning policy on standard assets/ bad loans, to match with the revised norms prescribed by National Housing Bank (the housing finance regulator), LICHF has reversed the excess provision of Rs 79 crore in the reporting period. While income from operations increased 32 per cent...

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