Govt banks to install 60,000 more ATMs

After a gap of six to eight months, public sector banks (PSBs) have geared up to establish 60,000 more Automated Teller Machines (ATMs) across the country over the next two years. The state-owned lenders had put their ATM expansion on hold as a centralised outsourcing model was being worked out by a committee appointed by the government. ATM machine manufacturers and payment service providers will be participating in the bidding process, being led by six major PSBs — State Bank of India, Punjab National Bank, Union Bank of India, Bank of India,...

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Axis Bank ups minimum balance on savings a/cs

Axis Bank, the country’s third largest private lender, said it will raise the minimum average quarterly balance by 20 times to Rs 10,000 from Rs 500 now on its students’ savings account (SBSTU) in metro and urban centres. “We periodically review our charges and fee structures to stay in line with market practices and related changes. As part of the review, the average quarterly balance requirements of various accounts have been revised with effect from next quarter cycle — June 15 to September 14. Non-maintenance of balances attracts charges as...

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RBI urges banks to levy fixed rates on cheques above Rs 1 lakh

The Reserve Bank of India has asked banks to levy fixed service charges for cheques valued above Rs 1 lakh cleared through speed clearing and outstation cheque clearing mechanism. The central bank issued this instruction as it has come across instances of banks levying charges on an arbitrary percentage to the value of the cheque. In a notification, the RBI said, “Banks, which have fixed their service charges for out-station or speed clearing for instruments valuing above Rs One lakh as percentage to the value of instruments are, therefore, advised...

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J&K Bank net up 50% at Rs 208 cr in Q4

Jammu & Kashmir Bank today posted 50.2 per cent jump in net profit at Rs 208.1 crore for the fourth quarter ended March 31, 2012. The bank had a net profit of Rs 138.5 crore in the same period last year. Total income of the bank increased to Rs 1,479.81 crore in the January-March quarter from Rs 1,132.8 crore in the same period previous year. The bank has proposed a dividend of Rs 33.50 (335 per cent) per share on face value of Rs 10 for the year 2011—12. For the year ended March 31, 2012, the bank’s net profit grew by 31 per cent to Rs 803.25...

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Union Bank cuts prime lending rate by 50 bps

Union Bank of India has cut its Benchmark Prime Lending Rate (BPLR) by 50 basis points to 15 per cent from 15.50 per cent. The BLPR cut will come into effect on May 15, 2012. The revised BPLR is applicable to all existing accounts where the floating interest rate is linked to BPLR and those customers who have not opted to change to Base Rate. The public sector bank had revised the Base Rate by 15 bps from 10.65 per cent to 10.50 per cent from May 1, 2012....

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Indian Bank fourth quarter profit dips 21%

Indian Bank has reported a 21.29 per cent dip in its net profit for the fourth quarter of 2011-12, to Rs 345.43 crore, compared with the corresponding quarter of last year. The bank's board has recommended a dividend of Rs 7.5 a share. The Chairman and Managing Director, Mr T.M. Bhasin, told a press conference that the decline in net profit was due to Rs 171-crore “reversal of interest” and Rs 190-crore provision for bad debts. The “reversal of interest” was on restructured loans, which today stand at Rs 8,902 crore. The bank had to make an “excess...

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Federal Bank Q4 net up 38% at Rs 238 cr

Federal Bank today reported a growth of 38 per cent in net profit at Rs 238 crore in the January-March quarter 2012 as compared with Rs 172 crore in the year ago period. Provisions including taxes declined to Rs 135 crore in the quarter from Rs 179 crore in the same quarter last year. Net Interest Income (difference between interest earned and interest paid) during the quarter rose by 10 per cent at Rs 491 crore (Rs 448 crore in fourth quarter FY11). For the year ended March 31, 2012, net profit increased by 32 per cent at Rs 777 crore (Rs 587...

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Banks must have Board-approved policy on loan takeovers: RBI

Banks should put in place a Board approved policy with regard to take-over of loans from another bank, according to the Reserve Bank of India. This directive follows the regulator receiving complaints that critical information on the health of the borrowal accounts (loans) being taken over is not being shared by the transferor bank with the transferee bank. This is resulting in inadequate due diligence at the time of taking over of accounts. The RBI said the policy should include norms relating to the nature of accounts being taken over, authority...

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Manappuram Finance defers results announcement

Manappuram Finance has postponed its board meeting to consider results to May 18. Earlier, it was scheduled to announce full-year financial performance on May 14. The company, however, did not disclose the reason for the rescheduling of board meet. For fiscal 2011, the company posted a revenue of Rs 1,178.75 crore and a net profit of Rs 282.66 crore. For the December quarter in the current fiscal, the company's net profit stood at Rs 161.37 crore on a revenue of Rs 726.4 crore. Meanwhile, the stock opened firm at Rs 20.45, a gain of 1.5 per cent. The...

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RBI asks banks to share borrower's account information while transferring it with another bank

The Reserve Bank has asked banks to put in place a board approved policy for take over of accounts from another banks. In a notification issued to banks on Thursday, India's banking regulator has asked that Banks should put in place a Board approved policy with regard to take-over of accounts from another bank. "The policy may include norms relating to the nature of the accounts that may be taken over, authority levels for sanction of takeover, reporting of takeover to higher authorities, monitoring mechanism of taken over accounts, credit audit...

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Bandhan Financial Services aims to grow 30% this fiscal

Microfinance company Bandhan Financial Services has set a 30% growth target for 2012-13 while it grew by 50% last fiscal. Chandra Shekhar Ghosh, the chairman and managing director of the country's largest MFI by outstanding loans said the new operational guidelines would bring down the possibility of exponential growth and encourage the micro lenders to consolidate their businesses. ""We are told to provide two-year loans instead of one year and therefore the scope to step up the loan every year does not exist any more,"" Ghosh told ET. ""It is...

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Education loan: HDFC manager held for girl student's suicide

Manager of a bank here was arrested in connection with the suicide of a nursing student, who was denied an education loan. Jobin, Manager of HDFC bank here was arrested yesterday after a case was filed against him under Section 306 of the IPC (abetment of suicide). The 20-year-old girl student had allegedly committed suicide on April 30 last after she came to know that her education loan was rejected by the bank citing various reasons, including that her mother had defaulted payment against a loan that she had availed earlier from the same bank,...

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SKS Micro collections dip in West Bengal, Gujarat

SKS Microfinance is in trouble in Gujarat and West Bengal even as it is still battling the AP crisis. Collections in West Bengal and Gujarat have decreased for the Hyderabad-based company in the fourth quarter of 2011-12 compared to the third quarter. The collections dropped from 81.7 per cent to 80.2 per cent in West Bengal, while it dropped 10 per cent to 58.5 per cent in Gujarat, SKS informed investors. West Bengal accounts for 11.8 per cent of SKS portfolio and 13.5 per cent of future receivables as the second largest State in operations after...

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IRDA slaps Rs 28 lakh fine on Shriram Life Insurance

The Insurance Regulatory and Development Authority has imposed Rs 28 lakh penalty on Shriram Life Insurance Company Ltd. The fine was imposed for violation of norms pertaining to payments made to referral partners, wrongful application of regulator’s circulars and violations of unit- linked insurance plans guidelines, among others. The company was also warned by the regulator to strictly adhere to underwriting norms, according to an order issued by IRDA. nagsridhu@thehindu.co.in...

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Canara Bank Q4 net down 7.7% as expenses mount

Hit by a 12 per cent dip in operating profits, Canara Bank's net profit was down 7.76 per cent to Rs 829.09 crore in the fourth quarter of last fiscal, against Rs 898.9 crore in the corresponding quarter of the previous year. Operating profits fell 12 per cent to Rs 1,409.7 crore (Rs 1,694.87 crore), mainly on account of a 33 per cent increase in total expenses. Net interest income rose 5 per cent, as a result of a 29 per cent growth in interest income. “Our focus during the year was on business consolidation rather than growth, besides de-risking...

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SKS Microfinance to retrench 1,200 staff, close 78 branches

SKS Microfinance Ltd will retrench 1,200 field staff in Andhra Pradesh as it is closing down 78 branches. Currently, the Hyderabad-based company has 3,400 employees in 180 branches in the State. “Closing down and reducing branches are extremely painful decisions for us but these have become urgent in view of the present financial situation,'' Mr M.R. Rao, Managing Director and Chief Executive Officer, SKS, said in a release on Thursday. TWO MONTHS SALARYWhen contacted, Mr Rao told Business Line that the field staff would be given two months salary...

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Dewan Housing Q4 net jumps 60% at Rs 93.76 cr

Dewan Housing Finance Corporation Ltd (DHFL) on Friday posted 59.8 per cent jump in net profit at Rs 93.76 crore for the fourth quarter ended March 31, 2012. The company had a net profit of Rs 58.65 crore in the same period in the previous fiscal, DHFL said in a statement. Total income rose to Rs 721.11 crore during the quarter as against Rs 434.63 crore in the corresponding quarter last year. For the year ended March, 2012, the company’s net profit grew by by 33.40 per cent to Rs 306.41 crore, as against Rs 265.13 crore in the last fiscal. At...

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PNB net climbs 18.6% in Q4; maintains dividend at 220%

Faced with increased non-performing assets (NPAs), public sector lender Punjab National Bank has decided to focus its attention on improving recoveries. Towards this end, the bank has set up dedicated teams at the level of general managers for better NPA management, Mr K. R. Kamath, PNB's Chairman and Managing Director, said here on Wednesday. For the first time, Mr Kamath, who had all along maintained that the situation was not that alarming as long as Gross NPAs were less than two per cent, said that he was worried about the NPA situation. The...

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UCO, 4 Iranian banks settle trade payments in rupees

India and Iran have found a way out for settling delayed trade payments. UCO Bank and four Iranian banks, including the Persian Bank, are settling payments in rupees. This was disclosed at a meeting organised by the Federation of Indian Exporters' Organisation on Wednesday for a visiting Iranian business and trade delegation. Dr Yahya Ale-Eshaq, President, Tehran Chamber of Commerce, Industries and Mines, said bilateral trade payments aggregating to Rs 700 crore have been settled between the Indian public sector bank and the four Iranian banks. Mr...

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Union Bank profit up 29% in fourth quarter

Public sector lender Union Bank of India reported a 29 per cent growth in net profit at Rs 773 crore in the January-March 2012 quarter compared with Rs 598 crore in the year-ago period. Net profit for the full year ended March 31, 2012, however, declined by 14 per cent to Rs 1,787 crore (Rs 2,062 crore in FY11) due to increase in provisions towards non-performing assets (NPAs), restructured advances and depreciation on investments. In the reporting quarter, net interest income (the difference between interest earned and interest paid) grew by 9...

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LIC Housing Finance raises Rs 250 crore for real estate private equity fund

LIC Housing Finance Limited (LICHFL) Asset Management, the asset management arm of India's biggest insurer, has achieved a first close of Rs 250 crore for its maiden real estate private equity fund. Launched late last year, the fund has a target size of Rs 500 crore, with a green shoe option of Rs 250 crore. This provision will allow LIC Housing Finance Asset Management Company, the manager of the fund, to sell more units than planned. "We have raised Rs 250 crore so far from institutional investors like banks and corporates," AK Sharma, chief...

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Shriram Transport Finance to raise Rs 500 crore through NCD issue

Shriram Transport Finance, the largest commercial vehicle financier in the country, plans to raise Rs 500 crore by issuing secured non-convertible debentures to meet the lending requirement. The issue, with a coupon of 10.5%-11% will open in July and will close in 15 days. ""We are planning to raise Rs 500 crore through NCD issue,"" said Sanjay Mundra vice president Shriram Transport Finance. "While the coupon rate would depend on the interest rate movement but would be in the range of 10.5%-11%." The Chennai-based company today posted lower net...

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Restructuring of loans pushes Central Bank into loss in Q4

Central Bank of India reported a loss of Rs 105 crore in January-March 2012 compared with a net profit of Rs 133 crore in the corresponding year-ago period. The loss was on account of restructuring of large corporate loans, including Rajasthan Distribution Company and Air-India. In the year-ended March 31, 2012, the public sector bank's net profit dipped 57 per cent to Rs 533 crore (Rs 1,252 crore in FY11). Slippages (net) jumped to Rs 4,557 crore as at March-end 2012 as against Rs 847 crore in March-end 2011. As at March-end 2012, the bank's restructured...

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Dena Bank Q4 net jumps 62% on tax refunds

State-owned Dena Bank reported a 62 per cent jump in net profit to Rs 255 crore in the January-March 2012 quarter compared with Rs 157 crore in the year-ago period. The profit surged on the back of a tax refund of Rs 70 crore. Without the refund, the profit growth would have been almost flat. Net interest income (the difference between interest earned and interest expended) during the quarter rose 27 per cent to Rs 598 crore (Rs 471 crore in Q4 FY11). Fee-based income grew by 35 per cent to Rs 150 crore (Rs 118 crore). The bank's net profit for...

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Andhra Bank revises eligibility criteria for clerical recruitment

Andhra Bank has lowered the minimum educational qualification to Intermediate-First Class for its clerical recruitment notified recently. As per the revised eligibility criteria, the applicants should have passed intermediate with a minimum of 60 per cent of marks or should gave a graduate degree in any discipline. Last month, Andhra Bank had notified the recruitment of 600 clerks with graduation as minimum qualification. Candidates who have a valid score card in the common written exam conducted by the Institute of Banking Personal Selection last...

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Oriental Bank to add 225 branches this fiscal

Oriental Bank of Commerce plans to add 225 branches this fiscal. “We plan to open 225 branches this year, of which, 175 would be in rural, semi-urban, and urban locations. About 50 branches have been earmarked for the financial inclusion villages, which would be opened if there is sufficient business volume,” Mr V. Kannan, Executive Director, Oriental Bank of Commerce, told Business Line. The bank was allotted 569 villages with a population of over 2,000 under the financial inclusion programme. Last year, the bank opened 147 branches. About 1,800...

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SKS Microfinance posts Rs 330 cr loss

SKS Microfinance, the country's only listed microlender, has suffered a loss Rs 330 crore in the quarter ended March 31, 2012, due to heavy provisioning and write-offs. The company allotted Rs 278 crore under provisions and write-offs in the fourth quarter of FY'12 and 1,173.5 crore for the whole fiscal due to non-collection of Andhra Pradesh dues. SKS Microfinance CFO S Dilli Raj said that total Andhra Pradesh portfolio has been reduced to Rs 236 crore from Rs 1,496 crore after the Microfinance Act was implemented in the state in 2010. "Income...

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Andhra Bank net up 8.6% in Q4

Andhra Bank net profit increased 8.6 per cent to Rs 339 crore in the fourth quarter ended March 31, 2012 compared with Rs 312 crore in the year-ago period. According to the Bombay Stock Exchange filing, total income has increased from Rs 2,662 croe to Rs 3,229 crore. For the year-ended March 31, 2012, the net profit stood at Rs 1,344 crore compared with Rs 1,267 crore in the previous year. Total income has increased from Rs 9,188 crore (Rs 12,198 crore). nagsridhu@thehindu.co...

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HDFC Q4 net rises 16% on strong loan demand

Housing finance major, HDFC reported a 16 per cent increase in net profit to Rs 1,326 crore in the January-March 2012 quarter against Rs 1,142 crore in the corresponding year-ago period. The increase in profit comes on the back of a strong demand for home loans and higher income from operations. In the full year-ended March 31, 2012, the housing finance major recorded a 17 per cent increase in net profit at Rs 4,123 crore (Rs 3,535 crore in FY11). The board of directors of the housing finance company (HFC) have recommended payment of dividend at...

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Vijaya Bank aims 20% business growth this fiscal

The Bangalore-based public sector lender Vijaya Bank aims a 20 per cent growth in overall business in the current financial year with added focus on increasing its low-cost deposit base, a top official said. "We aim an overall business growth of around 20 per cent in the current financial year, which should reach around Rs 1,65,000 crore," executive director Subhalakshmi Panse said. In the past fiscal, total business stood at Rs 1,41,727 crore, which comprised Rs 83,056 crore deposits and Rs 58,671 crore advances. "On the advances and deposit fronts,...

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