Central Bank of India may meet RBI’s 16% credit growth target

Central Bank of India may just about meet RBI’s credit growth target of 16 per cent for the fiscal, even as other banks are smarting under tardy credit offtake.Thrust on home and SME loans has come to the aid of the bank on this score.The sluggish credit growth of banks due to high interest rates and slowdown in the economy has prompted RBI to mull revision of its target of 16 per cent. In the first nine months of the year, banks credit growth was about seven per cent.Initially, RBI had projected a 17 per cent credit growth for the year, but...

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Vijaya Bank Q3 net up at Rs 127 cr

State-owned Vijaya Bank has reported a 1.9 per cent increase in net profit at Rs 126.74 crore for the third quarter ended December 31, 2012.The bank had posted a net profit of Rs 124.27 crore in the corresponding quarter last fiscal, Vijaya Bank said in a filing to the BSE.Total income increased to Rs 2,357.02 crore during October-December quarter from Rs 2,173.92 crore in the same period last year.During the first nine months of 2012-13, the profit declined 9.6 per cent to Rs 361.46 crore from Rs 400.02 crore in the same period a year ago.Total...

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Deutsche Bank, Morgan Stanley offering 1-crore-plus salary at IIMs, e-comm firms stay lukewarm

Banks are stepping up hiring at IIMs this placement season and have rolled out at least three 1-crore salary offers so far. Deutsche Bank has given two such offers at IIM-Ahmedabad for its London office and Morgan Stanley has offered a 1-crore package to a student at IIM-Calcutta, sources involved closely in the placement process say.Most global and Indian banks are hiring more than last year and many are offering pay packets that are 10-15% higher.The top five consulting firms are again making their presence felt at the IIMs and will together...

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Sidbi slaps winding-up petition on Catmoss, alleges mismanagement

Kidswear maker Catmoss Retail, which is already facing audit investigations at the behest of its private equity investor SAIF Partners, has now been slapped with a winding up petition by one of its lenders.Small Industries Development Bank of India (Sidbi) earlier this month filed a winding up petition in the Delhi High Court against Catmoss and accused the retailer of "financial mismanagement" and "mismanagement of the company".Sanjeev Sagar, the lawyer representing Sidbi, said his client had loaned 7.5 crore as working capital to Catmoss...

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Bank officers union opposes move to merge nationalised banks

The All-India Bank Officers Association (AIBOA) has opposed the move to merge the nationalised banks.S. Nagarajan, General Secretary of the association, addressing a press meet at Tiruchi recently, said the move would widen the gap between the banking industry and the customers, and it would pave the way for privatisation of banks.He said the future course of action against the move would be taken at the end of the national conference of the All-India Bank Employees Association (AIBEA) to be held in Kochi next month. Further, the AIBOA would...

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UCO Bank to get Rs 681 cr from govt by March

UCO Bank today announced that it will get Rs 681 crore as part of the government’s capital infusion plan for the current fiscal.The board approved the proposal for issue of equity shares on preferential basis in favour of Government of India for an amount aggregating to the tune of Rs 681 crore, UCO Bank said in a filing on the BSE.The issue price may be determined in accordance with SEBI (ICDR) Regulations 2009. The proposal is subject to necessary regulatory approvals, it said.The government has approved infusion of Rs 12,517 crore in around...

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SBI to hire 1,500 probationary officers

In what can be good news to millions of graduates, banking behemoth State Bank of India has lowered the minimum qualification required to apply for the post of probationary officers.In a notification for recruiting 1,500 probationary officers issued on Wednesday, SBI prescribed graduation in any discipline as the minimum qualification without mentioning any percentage of marks.“Till last year, candidates were required to have a minimum of 55 per cent to be eligible to apply for probationary officers. This notification does not mention this,”...

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Karnataka Bank Q3 net up 11% despite higher tax outgo, provisioning

Karnataka Bank Ltd recorded a 11.13 per cent growth in net profit at Rs 80 crore during the third quarter of 2012-13 against Rs 72 crore in the corresponding period of the previous fiscal.P. Jayarama Bhat, Managing Director and Chief Executive Officer of the bank, told Business Line that this is in spite of an increase in the tax expense and additional provisioning for restructured standard accounts as per the RBI’s directive.(In the second quarter review of monetary policy on October 30, the RBI had increased provisioning for restructured...

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Syndicate Bank profit jumps 50% on better yields, recoveries

Syndicate Bank’s net profit increased 50 per cent at Rs 508 crore in the third quarter ended December 31, 2012, against Rs 338 crore in the year-ago period.The increase in profit was driven by reduction in cost of deposits, improvement in yields and good recoveries, M. G. Sanghvi, Chairman and Managing Director, Syndicate Bank, told newspersons here on Wednesday.The net interest income rose 9.6 per cent to Rs 4,109 crore, while advances and deposits grew by 17.3 and 14.6 per cent respectively.The net interest margin, however, declined marginally...

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SBI expects profit of Rs 14,000-15,000 cr in FY13

State Bank of India expects a net profit of up to Rs 15,000 crore in this fiscal, against Rs 11,700 crore in the last financial year.“The net profit of the bank during the current financial year is expected to be between Rs 14,000 crore and Rs 15,000 crore,” SBI Chairman Pratip Chaudhuri told reporters here.The profit this year would be considerably higher than Rs 11,700 crore registered last financial year, the SBI chief said, adding that the bank expected to retain Rs 7,400 crore profit during the last quarter as recorded in the previous...

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Andhra Bank gets Rs 40-cr biz in home loan mela

Andhra Bank has generated a business to the tune of Rs 40 crore in a two-day housing loan mela and property show held here on Jan 19-20.According to a release, housing loans were offered at 10.50 per cent interest rate on loans for Rs 10 lakh to Rs 30 lakh while 10.75 per cent was the rate of interest for loan above Rs 30 lakh.On-the-spot approvals were accorded for loan applications covering 169 branches of banks located in the two zones of the State capital during the event, Venkata Ramana Reddy, Director, Andhra Bank said....

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Allahabad Bank to offload NPAs worth Rs 540 cr

Allahabad Bank will be offloading non-performing assets worth Rs 540 crore to an asset reconstruction company.“The deal is on the table and the process will be completed by next month,’’ Shubhalakshmi Panse, Chairman and Managing Director, Allahabad Bank, told newspersons here on Tuesday.Allahabad Bank, which had witnessed rise in NPAs in the quarter ended September 30, 2012, has also drawn up a strategy for better NPA management.“We have put in place a three-pronged strategy by creating a separate vertical, doubling the recovery targets for...

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CorpBank fetes branch heads

To recognise the performance of employees, Corporation Bank awarded Chairman and Managing Director Club and Executive Director Club memberships to 37 branch heads of the bank who excelled in various areas of operation during the last fiscal.Out of 37 branch heads, 23 were selected to Chairman’s Club and 14 to Executive Directors’ Club.The membership offers attractive incentive packages to the awardees. The induction of the club members was done at the corporate award ceremony organised by the bank here.Ajai Kumar, Chairman and Managing Director...

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SBI pitches for cut in repo rate, CRR

Pitching for a cut in interest rates and cash reserve ratio by the Reserve Bank of India, State Bank of India Chairman Pratip Chaudhuri today said the move will boost investment and growth.“As RBI’s monetary policy review is slated on January 29, we have already requested for a cut in cash reserve ratio by up to 100 basis points (1 per cent) and repo rate by 50 basis points (0.5 per cent),” Chaudhuri told reporters here at an event.Stating that he was thankful to RBI for reducing CRR, the amount banks have to keep as deposits with the central...

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Bank of Maharashtra net jumps 43% in Q3 to Rs 194 cr

Bank of Maharashtra today reported 43 per cent jump in net profit at Rs 194.06 crore for the third quarter ended December 31.Net profit of the public sector lender in the same quarter of the previous fiscal, 2011-12, was Rs 135.54 crore.Total income of the bank during the October-December quarter of 2012-13 increased to Rs 2,710.16 crore from Rs 2,020.78 crore, it said in a filing to the BSE.The non-performing assets of the bank increased to 0.66 per cent during the quarter, from 0.54 per cent over the same quarter a year earlier.Income from...

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Kotak Mahindra Bank standalone net jumps 31% in Q3

Kotak Mahindra Bank has reported a 31 per cent increase in its standalone net profit at Rs 362 crore in the October-December quarter of 2012-13 fiscal.The private sector lender had posted a net profit of Rs 276 crore in the year-ago period.Net interest income (difference between interest earned and expended) rose 26 per cent to Rs 822.85 crore (651 crore in Q3FY’12). Other income was up 8 per cent at Rs 305 crore compared with Rs 282 crore in the corresponding quarter.Percentage of net non-performing assets (NPAs) increased to 0.64 per cent...

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IDBI Bank plans to raise Rs 555 cr via preferential issue to Govt

IDBI Bank Ltd is planning to raise Rs 555 crore through preferential issue of equity capital to the Government, the bank said in a notice to the BSE. The public sector bank is also planning to raise up to Rs 2,500 crore via the qualified institutional placement route. Both the capital raising programmes, which will shore up its core capital, are subject to approval from shareholders and other statutory/regulatory approvals, if any, the bank said....

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Growing demand for home loans lifts HDFC net 16% in Q3

India’s largest housing finance company, Housing Development Finance Corporation’s third quarter net profit grew 16 per cent on a standalone basis boosted by strong demand for home loans from individual customers.In the October-December quarter, HDFC’s net profit grew to Rs 1,140 crore from Rs 981 crore, a year ago.“The growth in profit was because of strong loan book growth in the individual category of buyers across the country,” Keki Mistry, Vice-Chairman and CEO, said.The higher profit during the quarter indicates a growing demand for home...

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Federal Bank launches `Federal Manipal School of Banking'

Private sector lender, Federal Bank launched the Federal Manipal School of Banking at the Manipal University Bangalore Campus to provide student training on various areas of banking and management.The Federal Manipal School of Banking will offer full-time programme for one year that includes nine months of campus training and three-month internship at a branch of Federal Bank, which will be coupled with grooming and soft skills training, the bank said in a statement.Students will earn a monthly stipend of Rs 2,500 for the first 9 months and...

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IndusInd Bank eyeing Rs 1,000-cr credit card biz

IndusInd Bank aims to touch Rs 1,000 crore in its credit card business by March 2014, according to Romesh Sobti, Managing Director and Chief Executive Officer, IndusInd Bank. That would be two per cent of their loan book then. At present the credit card portfolio is about Rs 380 crore.Sobti said that the business is very profitable as it generates lot of ‘other income’ in the form of fees, foreign exchange business, transactions or issuance fees, etc. “Ours is a transaction-based model so spenders make the money for us...,” he said. Deutsche...

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Mundra is new CMD of Bank of Baroda

The Centre has appointed S. S. Mundra as Chairman and Managing Director of Bank of Baroda. The appointment came nearly two months after M. D. Mallya, erstwhile Chairman and Managing Director had superannuated. Prior to this, Mundra was Executive Director at Union Bank of India. His tenure as Chairman and Managing Director of BOB is till July 31, 2014. Union Bank ED The Centre has also appointed K. Subrahmanyam as Executive Director of Union Bank of India to fill up the vacancy due to Mundra’s elevation. Subrahmanyam is currently General...

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