SEBI to introduce product labelling for MFs soon

Capital market regulator SEBI will soon introduce product labelling for mutual funds to make investors aware of any risks associated with them.“Product labelling is an important investor education agenda for SEBI. The scheme profile will be given shortly and finally it will be with colour codes,” S. V. Muralidhar Rao, Executive Director of SEBI (Securities and Exchange Board of India), said today.Rao said another important agenda for SEBI was to spell out a long-term policy on mutual funds.“SEBI will shortly bring out a long-term policy on...

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India to be No 1 market for US Exim Bank this year

The US Exim Bank said India will overtake Mexico to emerge as the biggest market by its fund commitments this year."If I had to guess, this year ... sometime this year, if we use the new ICICI Bank credit-line swiftly, then even sooner (India will become the biggest market for us in terms of fund commitment)," US Exim Bank Chairman and President Fred P Hoghberg told reporters here.The US Exim Bank, which supports importers in foreign countries typically through credit lines to support job growth at home, already has USD 8.5 billion in commitments...

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Indian Bank Q3 net down 37% on provisioning

Indian Bank today reported a 37.1 per cent decline in net profit at Rs 330.58 crore for the third quarter ending December 31, 2012.The city-based public sector bank registered a net profit of Rs 525.92 crore in year-ago period.Total income for the third quarter rose to Rs 3,786.68 crore from Rs 3,505.25 crore in the year-ago period.Attributing the decline in net profit to provision of Rs 40 crore towards the pension corpus option given to VRS optees, the bank’s Chairman and Managing Director T. M. Bhasin told presspersons here that the bank...

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Central Bank, BoI cut base rates

Central Bank of India and Bank of India today slashed their base rate by 25 basis points each. The base rate for both public sector banks now stands at 10.25 per cent. Base rate is the rate below which banks cannot lend. All floating rate loans linked to the base rate will turn a tad cheaper. The banks that have cut their base rate so far include IDBI Bank, State Bank of India, Punjab National Bank, Union Bank of India, and Royal Bank of Scotland. On Tuesday, the central bank lowered the repo rate (the interest rate at which RBI lends short-term...

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BoB cuts lending, deposit rates

Bank of Baroda has cut its base rate and benchmark prime lending rate by 25 basis points each to 10.25 per cent and 14.50 per cent, respectively.All loans, including retail and corporate, linked to these two lending rate benchmarks will become cheaper to that extent. The lending rate cuts are with effect from February 9.The public sector lender has also pared deposit rates in shorter maturities by 15-20 basis points.The lending and deposit rate cuts follows the Reserve Bank of India cutting the repo rate (the interest rate at which banks borrow...

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Karur Vysya Bank net dips 9.5% in Q3

Karur Vysya Bank’s net profit for the quarter ended December 2012 fell 9.51 per cent to Rs 113.04 crore compared with Rs 124.92 crore during the corresponding quarter of the previous fiscal.“This is due to higher provision of around Rs 101 crore for taxation, increase in NPA (non-performing asset) provision (of around Rs 30 crore) and decline in provision for depreciation on investment,” said K. Venkataraman, Managing Director, KVB.The bank’s total income during this period however rose 24.51 per cent to Rs 1177.59 crore against Rs 945.77 crore...

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OBC hikes certain term deposit rates

Oriental Bank of Commerce (OBC) has increased the interest rates on term deposits of less than Rs 1 crore.The hike has been effected across different maturity buckets of less than 1 year. The quantum of rate hike ranges between 25 and 50 basis points.OBC has also merged the existing slabs of “term deposits of less than Rs 15 lakh’’ and “term deposits of Rs 15 lakh and above but less than Rs 1 crore’’ into a single slab of “term deposits of less than Rs 1 crore’’.Similarly, the existing slab of “term deposits of Rs 1crore and above but less...

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Corporation Bank net down 24.6% at Rs 303 cr

Corporation Bank has recorded a 24.62 per cent decline in net profit during the third quarter of 2012-13 fiscal.The bank has recorded a net profit of Rs 303.17 crore during the third quarter of this fiscal against Rs 402.21 crore in the corresponding period of the previous fiscal.There was an increase of 48.57 per cent in provisions and contingencies during the period. Provisions (other than tax) and contingencies stood at Rs 406.05 crore (Rs 273.30 crore).Net interest income stood at Rs 883.39 crore (Rs 861.81 crore), while other income at...

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SKS Micro implements six sigma initiative

SKS Microfinance is implementing a lean six sigma enterprise initiative. It started a few months ago. The aim of this initiative is to reduce costs, increase efficiencies and offer better services for customers, SKS CEO M.R. Rao said.He said: “We had seven million customers (in Andhra Pradesh two million) two years ago. Now it is down to three million, post the Andhra Pradesh MFI crisis. Although our customer base has come down, the number of locations (villages), where we are delivering neighbourhood credit, has gone up in non-AP states. We...

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Punjab National Bank net rises 13% on better loan recoveries

A lower provisioning and better efforts on the bad loan recoveries front helped Punjab National Bank (PNB) report a 13.53 percent increase in net profit for the third quarter ended December 2012 at Rs 1306 crore (Rs 1150 crore).The country’s second largest public sector lender by assets had reported a net profit of Rs 1,066 crore in second quarter.Buoyed by the strong third quarter performance, PNB’s shares closed 10.24 per cent higher on Thursday at Rs 919 on the National Stock Exchange.K.R. Kamath, Chairman and Managing Director, PNB, expressed...

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Axis Bank closes QIP, pref issue

In one of the biggest share issuances in recent times, Axis Bank has announced the closure of its Rs 5,537 crore fund raising programme on 31.01.2013.As a part of fund raising, the third largest private sector lender launched a qualified institutional placement (QIP) programme to raise over Rs 4,726 crore at Rs 1,390 per share and a preferential allotment offer amounting over Rs 810 crore to certain promoters of Axis Bank.“This offering has led to a redistribution of the bank’s shares with the weight of long only institutions rising significantly....

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Allahabad Bank net dips on higher provisioning for bad debts

Public sector lender Allahabad Bank on Thursday said that it intends to open 250 branches during the fiscal. Of these, 148 have already been opened and the bank has obtained authorisation for opening 140 more.The bank currently has 2,664 branches.According to Subhalakshmi Panse, Chairman and Managing Director, Allahabad Bank, the bank has also sought capital infusion of nearly Rs 1,500 crore. “We have applied to the government for capital infusion,” she told reporters at a press conference. Net profit dips The bank, meanwhile, reported a...

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Central Bank unveils limited period deposit scheme

Central Bank of India has launched a new limited period deposit scheme – Cent 101, to mobilise up to Rs 3,000 crore, for a short-term requirement of the bank.Announcing the launch here, B. Akbaraly, Zonal Manager (South Zone), Central Bank of India, said in the last couple of days of soft launch, the bank managed to mobilise Rs 58 crore. “Our target is to collect at least Rs 560 crore before the end of March 31, from the Tamil Nadu and Kerala markets alone,” he said.Elaborating on the scheme, R. Thiagarajan, Deputy General Manager of the bank,...

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Vijaya Bank’s new credit cards target high net-worth individuals

Vijaya Bank has launched two credit cards ‘V-Platinum’ and ‘V-Privilege’ targeted at high net worth individuals (HNIs) and term deposit holders.Launching the credit cards, H.S. Upendra Kamath, Chairman and Managing Director, said “We have set a target to issue 10,000 ‘V-Platinum’ cards and 5000 ‘V-Privilege’ by the end of this calendar year”“The bank has issued around one lakh ordinary credit cards and has exposure of Rs 29 crore. But due to debit card, credit cards were not popular, hence today we have launched a variant of credit card targeted...

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ICICI Bank profit soars 30% on rise in interest income

The country’s largest private sector lender ICICI Bank today reported a 30 per cent jump in net profit for the October to December quarter at Rs 2,250 crore.The profit was backed by strong advances and higher interest income.The bank had posted a net profit of Rs 1,728 crore in the same quarter last fiscal.ICICI Bank shares were trading down 1.30 per cent at Rs 1,198.50 on the BSE at 1.20 p.m.Net interest income (difference between interest earned and expended) rose 29 per cent to Rs 3,499 crore (from Rs 2,712 crore in Q3FY12). Non-interest...

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Yes Bank eyes acquisitions for business expansion

Looking to expand its business and grow its financial metrics going forward, new-generation private sector banking major Yes Bank has said it is open to possible acquisitions in banking, broking and asset management businesses, even as its organic growth plans are sufficient to meet its near-term targets.Yes Bank's planning continues to be organic in terms of its 'Version 2.0' target, but it is open to possible acquisitions in banking, broking and asset management businesses, its founder and CEO Rana Kapoor told PTI in an interview.Kapoor,...

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SBI cuts base rate by 0.05%

Country’s largest lender State Bank of India (SBI) today cut lending rate by 0.05 per cent, a day after the Reserve Bank of India (RBI) cut its key policy rates. After this marginal reduction, SBI’s base rate, or the minimum rate of lending, will come down to 9.70 per cent from 9.75 per cent effective February 4.“Through this reduction, we are passing on a little more than what we gain through the rate cut by the Reserve Bank,” a senior SBI official said this evening, after a meeting of the bank’s Asset Liability Committee (ALCO).The old benchmark...

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South Indian Bank’s new deposit scheme launched

The new deposit scheme of South Indian Bank – SIB 750 – has been introduced in the market by film star Mammootty, the bank’s brand ambassador. The product was launched to commemorate the 750th branch opening.Assuring interest rates of up to 10.10 per cent, the SIB 750 is envisaged as a limited period deposit scheme.The function held in connection with the inauguration of South Indian Bank’s 750th Branch and 787th ATM at Pallikkara in Ernakulam District, was presided over by V. A. Joseph – Managing Director and CEO of the bank.SIB Travel Card,...

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Exim Bank extends $22.5 m credit to Burkina Faso Govt

Export-Import Bank of India (Exim Bank) has, at the behest of the Government of India, extended a Line of Credit (LOC) of $22.50 million to the Government of Burkina Faso, for financing a low cost housing and economical buildings’ project.This is the third LOC extended by Exim Bank to Burkina Faso. The first LOC of $30 million was extended for financing the acquisition of tractors, harvesters and agriculture processing equipment, while the second LOC of $25 million is being utilised for financing rural electrification project in Burkina Faso....

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Tech upgrade to enable SBI double ATM network

State Bank of India can now double its automated teller machines (ATMs) with the Chennai-based Financial Software and Systems (FSS) upgrading the back-end technology to run these machines. FSS, which is a payment systems integrator, is a solution provider and technology partner of SBI.Tech upgradation will help SBI increase its ATM network from 30,000 to over 60,000 ATMs in the next two to three years, said Nagaraj Mylandla, Managing Director, FSS.Through this upgrade, SBI’s ATM expansion plans will actively support the government’s mission...

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Federal Bank launches auto loan hub

Federal Bank has launched a national auto loan hub at Marine Drive, Kochi, as a single window for processing and sanctioning of auto loans on fast track.The bank also slashed the interest rates on car loans to 10.45 per cent.The auto loan hub is committed to speedy processing and will enable the bank to reduce turn-around-time to less than a day.The central hub has started operations and is currently handling all applications from Kerala.The bank proposes to spread its operations countrywide.Source: thehindubusinesslin...

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Dewan Housing net up 22% on higher revenue

Dewan Housing Finance Corp (DHFL) reported a 22 per cent jump in its third-quarter net profit as the non-banking finance company earned higher revenue from its core business of lending for home loans.For October-December quarter, the Mumbai-based DHFL’s net profit rose to Rs 91 crore from Rs 75 crore, a year ago.Total income increased 27 per cent to Rs 840.64 crore.The company sanctioned loans worth Rs 3,922 crore (up 23 per cent) in the quarter ended December 31, 2012. In the same period, disbursements increased 31 per cent to Rs 2,983 crore...

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Dena Bank profit rises 11% on growth in advances

Dena Bank reported 11 per cent increase in net profit at Rs 206 crore during the October-December quarter of the current fiscal on the back of robust growth in advances.The public sector lender had reported a net profit of Rs 187 crore in the year-ago period.Profit growth in the reporting period was tempered due to increase in non-performing assets (NPAs) and higher provisioning.Net interest income (difference between interest earned and expended) increased 14 per cent to Rs 615 crore in Q3FY13. Non-interest income grew by 8 per cent to Rs...

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SBI cash deposit machine

The first cash deposit machine (CDM) of State Bank of India (SBI) was inaugurated in Mangalore city on Wednesday.Krishna Mohan Trivedi, General Manager, SBI, Bangalore, who inaugurated the facility, said that customers are now no longer required to wait in the long queue at branches for depositing cash.They can remit cash to their account with SBI at any of its branches in the country using their ATM cards. This CDM is functional round the clock, he said. Source: thehindubusinesslin...

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HDFC Bank cuts auto loan rates by up to 0.5%

Taking a cue from the RBI’s rate cut yesterday, private sector HDFC Bank has decided to slash auto loan rates by up to 0.5 per cent.The interest rate on car loans will be lower by 0.25 per cent, while two-wheeler loans will be cheaper by 0.5 per cent, a senior bank official confirmed when contacted.As far as the commercial vehicle segment is concerned, the reduction in rates will be 0.25 per cent.The new rates would be effective from February 1, the official added.Last month, the bank had reduced its base rate by 0.1 per cent to 9.7 per cent,...

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Increased income lifts IOB net 7% in Q3

Indian Overseas Bank reported a 7 per cent growth in net profit at Rs 116 crore for the quarter ended December 31, 2012, against Rs 108 crore for the comparable previous year quarter. Net interest income during the quarter went up to Rs 1,381 crore from Rs 1,221 crore last year.The growth in profit was predominantly attributed to high-cost bulk deposits that matured during the quarter and increased non-interest income. M. Narendra, Chairman and Managing Director of the bank, said the deposit cost had come down substantially as a portion of...

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Central Bank Q3 net jumps 59% on tight cost control

Tight leash on operating expenses and reversal in income tax provision helped Central Bank of India report a 59 per cent jump in net profit at Rs 180 crore in the October-December quarter.The public sector bank had reported a net profit of Rs 113 crore in the year-ago period.Profitability in the reporting quarter comes despite the bank setting aside Rs 633 crore towards provision for bad loans, including for restructured loan accounts, against Rs 428 crore in the year-ago period.Net interest income (the difference between interest earned and...

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Muthoot Capital net grows 52%

Muthoot Capital Services Ltd posted a 52 per cent growth in net profit at Rs 5.16 crore in the third quarter of the current fiscal, against Rs 3.39 crore in the third quarter of last year.Total income increased to Rs 26.57 crore (Rs 16.68 crore), registering a growth of 59 per cent.Interest expenditure increased from Rs 4.95 crore during the third quarter of last year to Rs 8.68 crore, recording an increase of 75 per cent.The profit before tax recorded a jump of 56 per cent from Rs 4.91 crore to Rs 7.65 crore.Thomas George Muthoot, Managing...

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RBI to issue inflation-indexed bonds to wean investors off gold

To wean investors away from buying gold, Reserve Bank of India has decided to introduce inflation-indexed bonds (IIBs) in a new avatar.Gold imports have been a cause of concern for both the Reserve Bank of India as well as the Finance Ministry. Last week, in a bid to restrict gold imports, the Government hiked the import duty on gold to six per cent from four per cent.“The central bank had introduced IIBs some years ago but it did not take off due to some design flaws,” RBI Governor D. Subbarao said while addressing media persons during the...

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A welcome move from RBI: Corporation Bank CMD

Terming the RBI’s decision to cut CRR and repo by 25 bps each as a welcome move, Ajai Kumar, Chairman and Managing Director of Corporation Bank, said that the reduction in repo rate is going to support growth, which is experiencing deceleration.He said that the reduction in CRR will enable banks to have lower cost of funds and result in moderation of lending interest rates which will spur investment climate and growth.The central bank action may release around Rs 18,000-crore liquidity into the system.Ajai Kumar said that these policy actions...

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IDBI Bank cuts lending, deposit rates by 0.25%

Within hours of Reserve Bank of India (RBI) reducing the key policy rates, IDBI Bank today slashed its lending and deposit rate by 0.25 per cent.“The new base rate or minimum lending rate (at 10.25 per cent) will be effective from February 1,” the bank said in a release.The base rate is the minimum lending rate below which banks cannot offer any loan to customers.IDBI Bank was the first one to cut lending rates following the announcement of the RBI to reduce short-term lending rate by 0.25 per cent and deciding to slash Cash Reserve Bank (CRR)...

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Cut in lending rates likely: State Bank of Hyderabad MD

Following the 25 bps cut in repo rate and cash reserve ratio, loans may become cheaper soon.“A cut in lending rates is now possible as the repo rate reduction is also coupled with cut in cash reserve ratio,’’ Bhagavantha Rao, Managing Director, State Bank of Hyderabad, told Business Line on Tuesday.State Bank of Hyderabad’s asset-liability committee will meet in about a week to take a call on reduction in lending rates.The cut in key policy rates by the apex bank today, though expected should not be seen in isolation, he said, adding: “I see...

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RBI cuts repo rate, CRR by 25 bps each

The RBI has cut its key repo rate by 25 bps today to 7.75 per cent.This comes nine months after its last cut in April 2012, a period during which it staved off continuous pressure to cut rates.In a surprise move, the RBI has also reduced the cash reserve ratio (CRR) of scheduled banks by 25 basis points from 4.25 per cent to 4.0 per cent of their net demand and time liabilities effective the fortnight beginning February 9, 2013. As a result of this reduction in the CRR, around Rs 18,000 crore of liquidity will be injected into the banking system.The...

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Karnataka Bank to focus on CASA deposits, retail loans

Retail loans and current/savings deposits will be the focus areas for Karnataka Bank during the current fiscal.By the end of 2012-13, the bank wants its CASA (current account savings account) deposits to be 27 per cent of the total deposits.According to P. Jayarama Bhat, Managing Director and Chief Executive Officer of the bank, the share of CASA in total deposits was 23.4 per cent in the third quarter of 2012-13. CASA deposits of the bank stood at Rs 8,114 crore during the third quarter of 2012-13 as against Rs 7,138 crore in the corresponding...

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