Indian Overseas Bank mulls new core banking solution on Oracle platform

Government-owned Indian Overseas Bank (IOB) will soon migrate to a new core banking solution (CBS) built on Oracle platform from its own CBS, a senior bank official said Saturday. "The Reserve Bank of India (RBI) wants reports from the banks in a common format. Most of the banks are on Oracle platform and hence those who are not on that will have to migrate," IOB general manager S. Radhakrishnan told reporters on the sidelines of the bank's press meet here. The RBI has decided to have an automated data flow (ADF) of reports in prescribed formats...

Read more »

Indian Overseas Bank targets 20 percent business growth in 2012-13

The government-owned Indian Overseas Bank (IOB) hopes to log 20 percent growth in its total business (deposits plus advances) this fiscal while hoping to rein its non performing assets (NPA) at the current level, a top bank official said Saturday. "This year (2012-13) we are targeting a 20 percent growth in deposits and advances with a focus on profitability. We are targeting a total business of around Rs.385,000 crore to Rs.400,000 crore," chairman and managing director M.Narendra told reporters here while announcing the bank's annual results. Last...

Read more »

Indian Overseas Bank plans to raise $500 million through Medium Term Notes

Public sector Indian Overseas Bank, plans to raise funds of about $500 million through Medium Term Notes (MTN) this year, a bank official said. The bank has reported a 21.76 per cent jump in its net profit for the fourth quarter ended March 31 at Rs 528.81 crore. "In the current year, when the market looks conducive, we will be looking to raise $500 million..," IOB Chairman and Managing Director M Narendra told reporters here. An MTN is a debt note that usually matures (paid back) in 5-10 years. They can be issued on a fixed or floating coupon...

Read more »

Federal Bank officers to go on strike

The Federal Bank Officers' Association has directed its members to go in for an all India strike on May 7-8. Around 4,000 officers will strike work on these two days. Mr Anthony Johnson, president, and Mr P.V. Mathew, general secretary of the association, said cited the immediate transfer of branch managers who boycotted a bank programme held last Sunday and on May Day, following a call made by the FBOA, as the immediate trigger for the strike. The FBOA has demanded that the punishment transfers be revoked officers transferred to branches in north...

Read more »

UCO Bank to cut exposure to major corporate accounts

UCO Bank would aim to de-risk its balance sheet by reducing its exposure to big corporate accounts, particularly in the stressed sectors. According to Mr N.R. Badrinarayanan, Executive Director, more than 60 per cent of the banks' total advances lie in the corporate sector at present, while retail accounts for a miniscule 8.5 per cent. “We want to de-risk the balance sheet by reducing our exposure to big accounts,” Mr Badrinarayanan said. Talking about stress in large accounts, he said the restructured assets grew to Rs 7,370 crore during the year,...

Read more »

Punjab & Sind Bank Q4 earnings rise 13%

Public sector lender Punjab & Sind Bank on Saturday reported a 13 per cent increase in net profit at Rs 147.80 crore (Rs 130.27 crore) for the fourth quarter ended March 31. However, for fiscal 2011-12, the net profit declined by 14 per cent to Rs 451.2 crore (Rs 526.17 crore in 2010-11). This decline has prompted the bank to maintain a dividend payout at Rs 2 a share for 2011-12 as well, bank officials said. The net profit performance for 2011-12 was weighed down by sluggish growth in credit (six per cent) and additional depreciation in Government...

Read more »

United Bank Q4 net up 4.2% at Rs 149 cr

United Bank of India (UBI) on Saturday reported a net profit of Rs 149.29 crore for the quarter ended March 2012, up by 4.2 per cent over the corresponding period last year. For the 2011—12 fiscal, the bank reported a profit of Rs 2,479.23 crore, up by 14.3 per cent over the previous year. “The rate of growth in profit was slow as 2011—12 was a difficult year with higher slippage in NPA (Non—Performing Assets) and cost of funds,” UBI Chairman and Managing Director, Mr Bhaskar Sen, said. The net slippage during the year under review was Rs 1,964...

Read more »

IOB reports 21.76% jump in Q4 net

Public sector, Indian Overseas Bank, on Saturday reported a 21.76 per cent jump in its net profit for the fourth quarter ending March 31, 2012 at Rs 528.81 crore, compared to the year ago period. The total income of the city headquartered bank in the January—March quarter rose to Rs 5,415.09 crore as against Rs 3,916.58 crore during the same period of previous year, Mr M Narendra, CMD, IOB, said. The net profit for the year ending March 31, 2012 stood at Rs 1,050.13 crore. The total income stood at Rs 19,578.13 crore as against Rs 13,326.56 crore...

Read more »

Syndicate Bank net rises to Rs 309 cr; to pay 38% dividend

Syndicate Bank has registered a six per cent rise in net profit at Rs 309.43 crore for the fourth quarter of 2011-12 fiscal compared with Rs 289.29 crore recorded during the corresponding period of the previous fiscal. The board of directors has recommended a dividend of Rs 3.80 per share (38 per cent) for the year 2011-12, subject to approval of shareholders at the Annual General Meeting....

Read more »

Allahabad Bank net jumps 55% to Rs 400 cr

Allahabad Bank has registered a 55 per cent growth in net profit at Rs 400 crore for the fourth quarter ended March 31, 2012, compared with Rs 258 crore during the same period last year. Net interest income grew 12 per cent to Rs 1,288 crore (Rs 1,151 crore). Percentage of net non-performing assets to advances went up marginally to 0.98 per cent (0.79 per cent) and that of gross NPAs to advances went up to 1.83 per cent (1.74 per cent)....

Read more »

Higher interest income boosts Bank of Baroda net 17%

Public sector lender Bank of Baroda posted a 17 per cent growth in net profit for the fourth quarter ended March 31, 2012 at Rs 1,518 crore (Rs 1,294 crore) on higher interest income and lower tax provisions. Net interest income (NII) during the quarter rose by a marginal 3 per cent to Rs 2,797 crore (Rs 2,714 crore) on higher provisions (excluding tax). Provisions and contingencies increased by 43 per cent to Rs 844 crore while for the full year ended March 31, 2012 it rose to 92 per cent to Rs 2,555 crore. However, tax provisions for the quarter...

Read more »

Corp Bank registers 1.71% rise in Q4 net, declares 205% dividend

Corporation Bank registered growth of 1.71 per cent in net profit during the fourth quarter of 2011-12. The bank recorded a net profit of Rs 351.26 crore in Q4, against Rs 345.34 crore in the corresponding period the previous fiscal. Speaking to Business Line from Mumbai, Mr Ajai Kumar, Chairman and Managing Director of Corporation Bank, said that credit demand was weak in the fourth quarter. “We could have shown growth, but that would have been at a higher cost. I have kept the advances growth that was comfortable for the industry,” he said. The...

Read more »

Bank of India cuts home loan rates

Bank of India has reduced interest rates on home loans. The new rates will be 10.50 per cent for loans up to Rs 30 lakhs, 10.75 per cent for over Rs 30 lakh but less than Rs 75 lakh and 11.25 per cent for Rs 75 lakh and above. The home loan rate is a floating rate linked to bank’s base rate. The Base Rate of BOI is 10.50 per cent with effect from May 1, 2012, a bank press release said....

Read more »

Ratnakar Bank implements Finacle

Ratnakar Bank announced that it has deployed the Finacle core banking solution. The bank aims to grow its number of branches to 125 in the next three months and to about 300 over the next three years. Ratnakar Bank also seeks new business opportunities to launch several new products across various verticals. To fulfil this objective and gain a competitive edge, the bank intends to leverage best-in-class banking practices on a new-age technology platform. It will also enable the bank to take a 360-degree view of customer relationships which, in...

Read more »

No minimum balance required for SBI savings accounts

The State Bank of India has asked its branches to remove the minimum balance stipulation and refund charges that were collected for failure to maintain the same. The circular issued on April 25 said the bank has decided to waive the requirement of maintenance of minimum balance for all types of savings bank accounts with immediate effect. Accordingly, no minimum balance charges would be levied every quarter henceforth, the circular addressed to chief general managers of all SBI circles said. Branches were advised to use approved publicity material...

Read more »

Oriental Bank plans more branches in Karnataka, Kerala this fiscal

Oriental Bank of Commerce plans to increase its branch network in Karnataka and Kerala in this fiscal. “We plan to open four branches in Karnataka and two in Kerala, as these states offer good business opportunities,” Mr Ch.S.S. Mallikarjuna Rao, Regional Head, Oriental Bank of Commerce, told Business Line. The bank currently has 53 branches in these two states. The bank plans to concentrate on the retail segment — both deposits and advances — this year, he said. Karnataka has a larger share in terms of branch network with 37 branches, and the...

Read more »

Ratnakar Bank ties up with Infosys for core banking product

Private sector lender Ratnakar Bank announced a partnership with IT firm Infosys. The bank plans to revamp its products and services by deploying Finacle, a core banking product from Infosys. The deal will see Ratnakar Bank spend Rs 50 crore on this system over the next five years. Mr Vishwavir Ahuja, Managing Director and CEO of the bank, said, “The bank has been in the transformation mode for the past 18 months and wants technology to be the core driver for banking. Finacle's in-built CRM (Customer relationship management) will help us connect...

Read more »

Banks must maintain 7% core capital: RBI

Indian banks have to maintain Tier I capital, or core capital, of at least 7% of their risk weighted assets on an ongoing basis, the Reserve Bank of India said in its final guidelines on Basel III capital regulations on Wednesday. Under the existing capital adequacy guidelines based on the Basel II framework, banks are required to maintain Tier I capital of at least 6% of their risk weighted assets. The total capital ratio, including Tier I and Tier II, must be at least 9%, unchanged from the current requirement, the RBI said in a statement, compared...

Read more »

Federal Bank officers strike work for a day

The All-India Bank Officers' Confederation (AIBOC) extended its support to the cause of officers of Federal Bank who struck work on Wednesday. The strike was against transfer of a group of branch managers and officers in the bank who didn't attend the ‘Federal Ambassadors' meets. HOLIDAY MEETSThese meets are held on Sundays and holidays, according to Mr Abraham Shaji John, State Secretary, AIBOC. The transfers were ordered to upcountry places and relieving of these officers was effected within two hours of it. Officer and employee organisations...

Read more »

Karnataka Bank to add one million new clients

Karnataka Bank will add one million new clients during the current fiscal. Mr P. Jayarama Bhat, Managing Director of the bank, said this at the annual business conference of the regional heads of the bank in Mangalore on Wednesday. He said the bank's priority will be on retail segment with focus on CASA (current account savings account) deposits by adding one million new clients. It will also focus on retail lending by concentrating on agriculture advances, MSME (micro, small, medium enterprises) advances, etc. He advised the regional heads to...

Read more »

Corp Bank to sponsor children for golf training

Corporation Bank will sponsor golf training for three children from Mangalore. Mr Ajai Kumar, Chairman and Managing Director of the bank, said this while speaking at the valedictory session of the summer golf coaching camp for children at Pilikula in Mangalore. He handed over golf kits to 54 children identified at the camp. A bank release said here that three children — Master Chen, Miss Aishwarya and Master Yash — were identified as young talents. Mr Ajai Kumar said that Mangalore is an ideal place for germination of golfers as it is a place of...

Read more »

StanChart's India biz subdued amid overall positive growth

There appears to be no let-up yet for Standard Chartered's India business, as the company said in an otherwise optimistic trading update on Wednesday that the market there remained subdued. While Standard Chartered experienced double-digit income growth in Hong Kong, Malaysia, Indonesia, China, the Americas and in Europe in the first quarter of the year, its business in India remained impacted by “subdued domestic sentiment”. While there was no deterioration in the Indian market, income for the quarter was flat year on year, a spokesperson said. Third...

Read more »

Punjab & Sind Bank cuts lending rate by 0.25%

State-owned Punjab & Sind Bank (PSB) today slashed its lending rate by 0.25%, in line with other lenders. The bank has revised its base rate by 0.25% to 10.50% from from 10.75% per annum, PSB said in a BSE filing. Base rate is the benchmark rate below which a bank cannot lend. With the reduction in the base rate, all kinds of loans would be cheaper by at least 0.25%. The new rate would be effective from May 1. Last week, PSB had trimmed its fixed deposit rates across various maturities in line with the market trend. Following the Reserve Bank's...

Read more »

IRDA launches info Web site

The Insurance Regulatory and Development Authority has floated a Web site to educate general public and insurance policyholders on various aspects of insurance. “The Web site is an attempt to reach out to all to give certain basic generic information on the subjects in order that consumers begin to think and seek answers to questions such as what they need to buy,’’ Mr J. Hari Narayan, Chairman, IRDA, said in a circular. The portal — www.policyholder.gov.in — is live now and feedback and suggestions on the initiative can be sent to the regulator. The...

Read more »

All set for Nabard transition as Bill in final stages of passing

The National Bank for Agriculture and Rural Development (Amendment) Bill, 2012, has entered the final stages of being legislated. The token 1 per cent stake of capital that the Reserve Bank of India holds in Nabard is sought to be vested in the centre, completing the transition. The Bill states that “the capital…which has been subscribed by the Reserve Bank… shall…stand transferred to, and vested in, the Central Government.The Reserve Bank shall be given…in cash, for transfer to, and vesting in the Central Government of the capital…. an amount...

Read more »

HSBC down-sizing office space in Coimbatore

Hongkong and Shanghai Banking Corporation (HSBC), which is in the centre of a staff down-sizing spree globally to cut costs, apparently is down-sizing its office space as well. The bank, which has a branch in the posh Race Course area in Coimbatore, today surrendered about 50 per cent of its real estate space. It is not clear whether the bank has reduced its staff strength in Coimbatore. According to Mr Rajesh B. Lund, Partner, Srivari Property Developers, Coimbatore, in whose building the HSBC branch is located, the bank today vacated 4,375 sq.ft....

Read more »

RBI plans committee on fixed interest rate products

The RBI Deputy Governor, Mr Anand Sinha, today said the central bank plans to set up a working group committee to introduce more long-term fixed interest rate loan products. "A variety of fixed interest rate loan products are imperative considering that currently the banks offer fixed rates on deposits and mostly floating rates on home loans, which exposes borrowers to uncertain rate movements," said Mr Sinha. He said this as he inaugurated an Assocham industry interactive session on banking sector held in Mumbai today. "We have taken an initiative...

Read more »

Vijaya Bank Q4 net trebles onlower operating expenses

Vijaya Bank's net profit grew three-fold during the fourth quarter of the last fiscal, on the back of controlled operating expenses. The bank's net profit stood at Rs 180.99 crore compared with Rs 54.23 crore in the corresponding quarter the previous fiscal. Operating expenses were Rs 367.2 crore (Rs 511.26 crore). Consequently, the bank's operating profits more than doubled to Rs 263.48 crore (Rs 109.96 crore). “Our operating costs have come down, and overall interest income has increased. The non-interest income has also increased compared with...

Read more »

Bank of India net jumps 2-fold; to pay 70% dividend

Bank of India (BoI) has reported a near two-fold rise in net profit to Rs 952.73 crore for the fourth quarter ended March 31, 2012. The bank had posted a net profit of Rs 493.64 crore in the year-ago period. Total income rose to Rs 8,777.73 crore during January-March period of 2011-12 from Rs 7,130 crore during the corresponding period of the previous fiscal, BoI said in a filing to the BSE. The bank has recommended a dividend of 70 per cent or Rs 7 per share for 2011-12. For the financial year ended March 31, 2012, BoI posted a net profit of Rs...

Read more »

Oriental Bank net dips 20.6% in Q4

Oriental Bank of Commerce has reported a 20.6 per cent decline in net profit for the fourth quarter ended March 31, 2012 at Rs 264.90 crore (Rs 333.66 crore). The bank has recorded a 29.23 per cent increase in total income for the quarter under review at Rs 4,564.50 crore (Rs 3,532.13 crore). For the year ended March 31, 2012, OBC recorded a 24 per cent decline in net profit at Rs 1,141.56 crore (Rs 1,502.87 crore), according to a filing with the Bombay Stock Exchange. Total income during the period increased 30.71 per cent to Rs 17,055.13 crore...

Read more »

Syndicate Bank launches jewel loan mela

Syndicate Bank has launched a ‘Jewel Loan Maha Mela’ to extend loans on the pledge of gold ornaments. “The loans will carry an interest rate of base rate plus 1.25 pc interest, which works out to 11.75 per cent as of now,’’ Mr T. R. Viswanatham Nair, General Manager, Syndicate Bank, Hyderabad Region, told newspersons here on Monday. Syndicate Bank is targeting disbursal of Rs 100 crore of loans during the mela period from May 1, 2012, to September 30, 2012. “We have also made products suitable for all categories of customers, besides increasing...

Read more »

Union Bank to open 300 branches this fiscal

Union Bank of India will open around 300 branches and recruit more people this fiscal. Speaking to presspersons on the sidelines of a function to inaugurate the new regional office of the bank here on Monday, Mr D. Sarkar, Chairman and Managing Director, said that the bank has nearly 3,300 branches across the country. “We are planning to open 300 branches this fiscal,” he said. RecruitmentWith the expansion plans on the way, recruitment will also follow. The bank may need to recruit around 4,000 people. Stating that it is a rough estimation, he...

Read more »

Indian Bank, IOB cut lending rates by 0.25%

Indian Bank and Indian Overseas Bank (IOB) slashed lending rates by 0.25 per cent, in line with other lenders. The separate announcements come a week after RBI reduced policy rate by 0.5 per cent. The bank decided to reduce its base rate by 0.25 per cent from the existing 10.75 per cent to 10.50 per cent per annum, Indian Bank said in a filing on the BSE. Similarly, IOB has also cut the base rate to 10.50 per cent from 10.75 per cent. Base rate is the benchmark rate below which a bank cannot lend. With the reduction in the base rate all kinds of...

Read more »