ICICI Bank: Margins drive earnings

ICICI Bank reported a steady performance, with net interest income growing 22 per cent in the March quarter. This was backed by an 18 per cent growth in the domestic loan book, improvement in net interest margins and stable asset quality. However, fee income growth continued to remain lacklustre, rising by a mere 2.7 per cent over the corresponding year-ago period.Notable has been ICICI Bank’s 38 basis points improvement in net interest margin (NIM) in FY13. The bank maintained a NIM of above 3 per cent through FY13 on the back of a healthy...

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Vijaya Bank profit up 24% on improved loan growth

Vijaya Bank profits rose 23.86 per cent to Rs 224.15 crore in the fourth quarter of fiscal 2012-13.The bank’s total income during the period increased 17.02 per cent to Rs 2,680.20 crore, while EPS (basic) stood at Rs 3.92 compared with Rs 2.98 last year.Vijaya Bank Chairman and Managing Director H. S. Upendra Kamath attributed the performance to the increase in loans and advances by 8 per cent, investment income by 15 per cent and a doubling of other income.“With signs of improving global and domestic economic scenario, Vijaya Bank has set...

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Interest income lifts LIC Housing Fin net 24%

LIC Housing Finance reported a 24 per cent increase in fourth quarter net profit, helped by higher loan disbursements to individual home buyers and healthy net interest income.In the January-March quarter, the housing finance arm of Life Insurance Corporation posted a net profit of Rs 316 crore against Rs 254 crore a year ago. The company’s board has recommended a dividend of Rs 3.80 per share of Rs 2 face value.A senior official at the company attributed the growth in profit to lower cost of funds and conversion of home loans from fixed to...

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Retail lending pushes up ICICI Bank Q4 net 21%

Stable loan growth and higher margins helped ICICI Bank report a 21 per cent increase in net profit at Rs 2,304 crore in the fourth quarter ended March 31, 2013.The country’s largest private sector lender had reported a net profit of Rs 1,902 crore in the year-ago quarter.Net interest income (difference between interest earned and expended) increased 22 per cent to Rs 3,803 crore (Rs 3,105 crore in Q4 FY12). Other income fell marginally to Rs 2,208 crore on the back of muted fee income and lower dividend.During the quarter net interest margin...

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Axis Bank: Retail focus pays dividends

De-risking its business model, Axis Bank’s renewed focus on the retail segment over the last two years has worked to its advantage.The bank held up its performance on all key parameters in the March quarter. Net profit grew 22 per cent in comparison to the previous year. This was despite an additional Rs 240 crore provisioning for contingencies.The net interest income grew 24 per cent backed by loan growth of 16 per cent and increase in net interest margins by 13 basis points to 3.7 per cent in the March quarter.The bank has consistently delivered...

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SBI looking to decongest branches

A number of people arefilling up forms , quite a few milling at various counters wanting to draw money or check balances, and some merely looking to chat up with a friendly face.A detached observer can look at this picture with equanimity. But if you were a customer at this branch, who quickly wants to draw some money or complete some banking business on your way to the office, you may find the scene a bit depressing. MIGRATING ACCOUNTS Crowds may mean more business for the bank, but are inconvenient for customers.This seems to have nudged...

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United Bank to apply for overseas licences

United Bank of India plans to expand into international destinations.The bank, which currently has representative offices in Myanmar and Dhaka, plans to set up branches in Mexico and BRICS (which comprise, apart from India, Brazil, Russia, South Africa and China) nations.According to Archana Bhargava, Chairman and Managing Director, United Bank will soon apply to the RBI seeking licences for setting up shop in these destinations.“There is a huge opportunity in expanding in international locations both from remittance and trade point of view.“We...

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Central Bank of India to expand ops in Himachal

State-owned Central Bank of India would expand its activities in Himachal Pradesh by financing the hydro power, horticulture, infrastructure development, tourism and other sectors and make planned efforts to increase the credit-deposit ratio, a top company official said.The bank proposed to open 525 village branches and 25 ultra small branches in near future, bank's Chairman M V Tanksale told reporters here.He added that despite of economic slowdown, the NPA of the bank was five per cent but in the state, the recovery was quite good and NPA...

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Union Bank of India to use $350 million bond proceeds for lending at international branches

State-run lender Union Bank of India  said it will be deploying the USD 350 million it raised through a bond sale for lending at its international branches.The bank also clarified that it had not fallen short of achieving its target as erroneously reported earlier, saying the issue got oversubscribed by 4.3 times.UBI carried out the bond sale through its Hong Kong branch and will be deploying the money for its ongoing lending activities at its international branches, the bank said."We are pleased to receive good response from investors,...

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Dena Bank launches health insurance plan for Kisan credit card holders

Public sector lender Dena Bank has launched a health cover scheme for farmers holding Kisan Credit Cards.The bank will offer KCC holders and their family members mediclaim with maximum cover up to Rs 30,000, the bank said in a statement.Celebrating its Platinum Jubilee year, Ashwani Kumar, Chairman and Managing Director, Dena Bank, said that this facility will be available to KCC holder of Dena Bank and his/her spouse and two children under tie up with UIIC under group health insurance cover.This cashless facility will be available at around...

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Axis Bank Q4 net rises 22% on stable loan growth

Higher interest income and stable loan growth helped Axis Bank post a 22 per cent increase in net profit at Rs 1,555 crore in the January-March quarter.The country’s third largest private bank had posted a net profit of Rs 1,277 crore in the year-ago quarter.Net interest income (the difference between interest earned and expended) increased by 24 per cent during the quarter at Rs 2,665 crore. ‘Other income’ grew 26 per cent to Rs 2,007 crore driven by higher trading and fee incomes. The bank recorded net interest margin of 3.70 per cent in...

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‘No instances’, says HDFC Bank

Private sector lender HDFC Bank has ruled out money laundering in the transactions allegedly captured in the expose by online magazine Cobrapost.“Clearly, all this (internal investigation) has shown no instances of money-laundering transactions as charged by Cobrapost,” said Paresh Sukthankar, Executive Director, HDFC Bank.Following the money-laundering allegations by Cobrapost, the second largest private lender had suspended 25 employees and appointed Deloitte for conducting internal forensic audit.“The investigation is being undertaken in...

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HDFC Bank Q4 net up 30% on strong interest income

Continuing its 30-per cent profit growth cycle, private sector lender HDFC Bank 's net profit jumped by 30 per cent year-on-year to Rs 1,889 crore in the fourth quarter ended March 2013.Country’s second largest private sector lender had posted a net profit of Rs 1,453 crore in the year-ago quarter.Net interest income (interest earned less interest expended) for the quarter grew by 21 per cent to Rs 4,295 crore (from Rs 3,561 crore in Q4FY12) driven by loan growth and higher net interest margin (NIM).“Other income declined by 6 per cent to Rs...

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RBI for lower commission to curb KYC abuse like money laundering

The Reserve Bank may push private sector lenders to rationalise the commission they pay to wealth and relationship managers, as it tries to check dubious transactions and flouting of know-your-customer norms.An online portal had alleged last month that some banks were involved in money laundering and were not complying with know-your-customer (KYC) norms. According to an RBI official, a probe by the central bank has indicated that the policy of some banks to reward employees with high commissions leads to staff overlooking KYC norms."It has...

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HSBC overhauls incentive structure for its sales staff

The Hong Kong and Shanghai Banking Corporation has overhauled incentive structure for its sales staff to prevent recurrence of misleading sales pitch to its customers and charges of aiding transactions that violate the law."We have changed the incentive structure beginning this year," Stuart P Milne, chief executive officer at HSBC India, said. "We now reward based on how many consultations they (staff) have with the customers. Did your customer increase the value of assets with you? These are the kind of things based on which we are incentivising."This...

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Karnataka Bank chief’s fiat to boost advances

Mobilisation and expansion of advances portfolio are important for improving the bottom line of the bank, said Managing Director of Karnataka Bank P. Jayarama Bhat.Addressing the regional heads’ review meeting in Mangalore on Monday, he stressed on the importance of low-cost deposits and expansion in advances portfolio, through proper scrutiny and selection of borrowers, to improve the bottom line of the bank.Bhat urged them to focus more on improved customer service and credit to retail sector – especially to micro, small and medium enterprises...

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Union Bank launches overseas bond sale

Union Bank of India has launched an overseas US-dollar denominated bond sale through its Hong Kong branch.According to banking industry sources, it is a benchmark 5-and-a-half-year transaction and the bank will look to raise at least $300 million through the sale of unsecured notes.This overseas bond sale is the third tranche under a $2-billion European Medium Term Note programme, it is learnt.The initial guidance for the coupon is US Treasury plus 315 basis points. One basis point is one hundredth of a percentage point.Citigroup is the joint...

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Muthoot Fincorp aims doubling MFI biz to Rs 600 cr in FY14

Gold loan major Muthoot Fincorp, the flagship brand of diversified Muthoot Pappachan Group, is targeting to nearly double its micro-lending business to Rs 600 crore this fiscal from Rs 330 crore in FY2012-13.The Kochi-based company is also planning to hive off the micro finance business, which is currently managed under its gold loan company, into a separate company under the NBFC-MFI model as soon as it gets the go-ahead from the Reserve Bank, Muthoot Fincorp Chief Operating Officer Microfinance (MFI) Business Unit Sadaf Sayeed told PTI.The...

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Three in fray for LIC chief post; interview likely on Apr 23

The interview for the selection of chief of country’s largest insurance company LIC is scheduled on Tuesday, with three candidates in fray for the high profile post.A five-member panel led by Department of Personnel & Training Secretary P K Misra will choose the successor to D K Mehrotra, whose term as chairman of the state-run insurer ends on May 31.“The interview for selection of Chairman is scheduled on April 23,” an official source said.The candidates in fray for the top job are the present Managing Director of the company Sushobhan...

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Syndicate Bank branch

Syndicate Bank opened its 75th branch at B.C. Road Town in Dakshina Kannada district recently.A press release said here that M.G. Sanghvi, Chairman and Managing Director of the bank, inaugurated the branch, and informed the gathering about the progress of the bank during 2012-13. He also spoke about various products of the bank.Sanghvi, who also visited Mangalore, interacted with the important clients of the bank. The bank has decided to enter into an agreement with Life Insurance Corporation of India to distribute its product through bank’s...

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Vijaya Bank opens Bhopal branch

Vijaya Bank has opened its 1,360th branch at Kolar Road, Bhopal. The new branch was formally inaugurated by K. R. Shenoy, Executive Director, Vijaya Bank in the presence of Kalpana Srivastava, Commissioner, Women Empowerment and Managing Director, Women Finance Development Corporation.The Guest of Honor was Nishank Kumar Jain, Director, Vijaya Bank. Speaking on the occasion, Shenoy said that Vijaya bank will adopt a host of innovative methods to ensure inclusive growth for all with an increased focus on opening branches in semi-urban and rural...

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Federal Bank in Rupay League

Federal Bank has joined the Rupay League of India’s own domestic payment network. N.R. Narayana Murthy, Chairman Emeritus of Infosys Ltd, unveiled the bank’s Rupay Brand Debit card at Kochi. The new card offers another option to Federal Bank’s customers to choose from.  The debit card would be accepted on over 1 lakh ATMs of National Financial Switch member banks in the country and would be accepted on POS and Internet soon. Federal Bank is the first private sector bank and the 10th bank in the country to launch Rupay Card, a press...

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More debate needed on financial code, says IRDA chief

There is a need for a debate on the Indian Financial Code (IFC), according to T. S. Vijayan, Chairman, Insurance Regulatory and Development Authority (IRDA).Speaking at a seminar on IFC organised by the Institute of Company Secretaries of India (ICSI) here on Saturday, Vijayan said a standardisation of intermediation should be brought in by the proposed financial code.IFC is a draft bill recommended by the Financial Sector Legislative Reforms Commission (FSLRC) in its report to the Government.It has recommended that the existing regulators...

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Andhra Bank to auction Deccan Chronicle properties worth Rs 200 cr

Andhra Bank is set to auction properties worth Rs 200 crore of Deccan Chronicle Holdings Ltd (DCHL) to recover loans.“We have started the process under the Sarfesi Act and identified some properties in Bangalore and Chennai,’’ B. A. Prabhakar, Chairman and Managing Director, Andhra Bank told Business Line here on Saturday.Andhra Bank has an exposure of Rs 200 crore to the beleaguered company. “These are fully securitised loans. According to valuations, the indemnified assets should give our money back,’’ the CMD said, adding that the auction...

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HDFC Bank reaches new milestone

HDFC Bank, the second largest private sector bank has reached a milestone of 200 branches in Andhra Pradesh. The latest one has been set up in Vemulawada, a pilgrim town in Karimnagar district. The bank will focus on opening more branches in the rural parts of Andhra Pradesh.Currently, more than 75 per cent of its total branches in the country are outside the top nine metros, which indicates its intent to growing its network in semi-urban and rural areas. This focus is part of the bank’s Board approved mandate to bring 10 million families (40...

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