Axis Bank enters 100 cr property lease deal through HDFC Realty

In one of the biggest office rental transactions in recent times, private lender Axis Bank is believed to have entered into a property lease deal worth about Rs 100 crore for housing its back office operations.The property is being taken on a nine-year lease from Raheja Group and the deal has been arranged by HDFC Realty, sources said.The deal was finalised at a rate of Rs 39 per square feet a month for an office space having area of over two lakh square feet. Axis Bank has agreed to pay a rent of Rs 82.4 lakh per month and applicable taxes...

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IRDA bancassurance norms may be delayed

The Insurance Regulatory and Development Authority (IRDA) guidelines for tie-ups of insurance companies with banks for distribution of products may be delayed as the feedback to the regulator reflects divergent views from various stakeholders, said industry experts.Some insurance companies that do not have tie-ups with banks have recommended to the Life Insurance Council that a bank should be allowed to strike deals with five insurance companies, at a limit of 25 per cent an insurer. However, bank promoted insurance companies are opposing this...

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Fraud on banks, more by the rich, says RBI’s K. C. Chakrabarty

“When the times are good, the rich steal. When the times are bad, the poor people also steal. But this means rich people are stealing more,” said K. C. Chakrabarty, RBI Deputy Governor.An analysis of the frauds reported in the banking system over the last two decade shows that the number of frauds had not gone up significantly, but the quantum has increased manifold.Loan-related frauds are a major concern for the central bank, Chakrabarty said.The number of reported frauds in the banking system over the last 10 years was 1,76,547, and valued...

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Robust loan offtake lifts Bank of India Q1 net 9%

Bank of India posted 9 per cent growth in first quarter net profit, aided by a higher net interest income and robust retail loan offtake.In the quarter ended June 30, 2013, the net profit increased to Rs 964 crore from Rs 887 crore a year ago.Net interest income, the difference between interest earned and interest paid, rose 24 per cent to Rs 2,537 crore. The net interest margin improved to 2.5 per cent in the April-June period, from 2.27 per cent, a year ago and from 2.46 per cent in the preceding similar quarter.Retail credit for the bank...

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IndusInd Bank opens 2 new branches in Patna

Private sector lender IndusInd Bank opened two new branches here, taking the total number of branches in the city to five.According to a bank statement, the two branches are located in Kanker Bagh and Rajendra Nagar.With this, the total number of IndusInd Bank branches in Bihar has gone up to eight.“Bihar is a very important market for IndusInd Bank and Patna is considered to be among the 15 most promising cities in India.“Considering the vast potential of banking requirements yet to be explored, IndusInd Bank has planned further branch expansion...

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PNB net flat in Q1 despite surge in trading profits

Aided by a sharp rise in trading profits on investments, Punjab National Bank (PNB) on Friday reported a 2.3 per cent increase in net profit for the April-June quarter at Rs 1,275 crore (Rs 1,246 crore).Reflecting the listless economic environment, however, the bank’s total income grew marginally by 0.2 per cent to Rs 11,747 crore (Rs 11,721 crore).The lacklustre first quarter results dragged the bank’s shares to a 52-week low of Rs 583 at the National Stock Exchange. The stock later closed at Rs 590.75.Trading profit for the quarter under...

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SKS Microfinance posts Rs 5-cr profit in Q1

SKS Microfinance Ltd has posted a profit of Rs 5 crore in the first quarter ended June 30, 2013.The country’s only listed micro-finance institution had incurred a Rs 39-crore loss in the corresponding quarter of the previous financial year.This was the third consecutive quarter of profit for the company, which turned around after having been hit by losses after the microfinance crisis in Andhra Pradesh some years ago. Rise in revenue Revenues increased to Rs 117 crore (Rs 74.5 crore). Due to the increase in loan disbursements outside Andhra...

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Muthoot Finance net drops 21%

Muthoot Finance has registered a 21 per cent drop in net profit, at Rs 194 crore, in the first quarter, compared with Rs 246 crore in Q1 of FY-13. Total income also fell 1 per cent to Rs 1,286 crore (Rs 1,294 crore).The YoY decline in profit during the quarter was because of stagnation in loan growth and lower yield on liquidated loan accounts. Expenses remained high on account of lenders continuing to charge higher interest and administrative expenses going up, with the addition of branches in the last year, Chairman M.G.George Muthoot said. Stable...

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IOB net profit slides 46% on higher provisioning

Indian Overseas Bank has posted a 46 per cent drop in net profit at Rs 126 crore for the first quarter ended June 30, 2013, against Rs 233 crore in the first quarter of 2012-13. “This is mainly due to a 50 per cent spike in provisions compared with last year,” said M. Narendra, Chairman and Managing Director of the bank.According to him, there was an additional provision of Rs 49 crore towards restructured accounts, and close to Rs 400-crore additional provision towards non-performing assets made during the quarter. This has taken the total...

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RBI directs banks to collect EMIs through electronic transfers

Auto and home loan borrowers need not pay post-dated cheques towards EMIs as RBI has directed banks to collect monthly instalments through electronic mode wherever the facility for such fund transfer is available.Banks are advised that no fresh or additional post-dated cheques (PDC) or equated monthly instalment (EMI) cheques shall be accepted at locations where electronic clearance service (ECS) is available, RBI said in a notification."The existing cheques in such locations may be converted into ECS by obtaining fresh ECS (Debit) mandates,"...

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IndusInd Bank opens new branch in Noida

Private sector lender IndusInd Bank has opened a new branch in Greater Noida taking the total number of branches in Uttar Pradesh to 41. The mid-sized bank now has four branches in Noida.Sumant Kathpalia, Head-Consumer Banking, IndusInd Bank, said: “The opening of a new branch in Greater Noida further consolidates our plans for growth and expansion in National Capital Region as well as Uttar Pradesh. The new branch in Greater Noida aims at helping customers manage and grow their wealth while availing the responsive and innovative products and...

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HDFC Bank opens 3 rural branches in Bengal

HDFC Bank opened three rural branches in West Bengal. One of these is at Kankabati village in Paschim Medinipur district, and two others at Dihibatpur Panchanantala and Gopinagar in Hooghly district, the bank said on Wednesday.HDFC Bank is to reach out to these unbanked villages with 2-person micro branches. The bank now has 9 branches in Hooghly and 3 branches in Paschim Midnapore districts, taking the total to 134 branches in the State.Navin Puri, Country Head, (Branch Banking) of HDFC Bank, said 53 per cent of the bank’s branches are now...

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Syndicate Bank Regional Manager

M. P. Nagpal has assumed charge as the Regional Manager of Syndicate Bank, Kolkata region.According to a press statement issued by the bank, prior to joining as Regional Manager in Kolkata, Nagpal was the Regional Head of Meerut region.Nagpal has been involved in several key positions including heading the IT division at Delhi, regional head of Nagpur region and also Deputy General Manager of Human Resources at the head office at Manipal in Karnataka, the release said. Source: thehindubusinesslin...

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OBC hikes some deposit rates

Oriental Bank of Commerce (OBC) has hiked interest rate on certain domestic term deposits.The interest rate hike is for term deposits of less than Rs 1 crore under various maturities from 91 days to less than a year.For term deposits of 91-179 days, the interest rate has been raised from 7.75 per cent to 8.5 per cent. For deposits with a maturity of 180 days to 269 days, the revised interest stands at 8.5 per cent, from 8 per cent earlier. In the case of term deposits of 270 days to less than one year, the interest rate has been revised to...

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New General Manager for Union Bank

Pankaj Sharma has taken charge as General Manager of Chennai Zone of Union Bank of India. This zone comprises Tamil Nadu and Kerala.As General Manager, he will be in charge of four regional offices each in Tamil Nadu and Kerala, including a branch in Port Blair.In all, the zone has 422 branches. Prior to the elevation, he was heading the Hong Kong operation of the bank.Earlier, he has worked in various regions and at the bank’s corporate office, in areas such as Credit, Foreign Exchange and Treasury. Source: thehindubusinesslin...

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Tata Comm plans 200 white-label ATMs in Maharashtra

Tata Communications Payment Solutions Ltd (TCPSL), a wholly-owned subsidiary of Tata Communications, plans to launch 200 white ATMs under the Indicash label across Maharashtra by September-end. White label ATM In the Indian context, a white label ATM is owned and operated by a non-banking entity, and can be used for financial transactions by customers of any bank.The rollout is part of a plan to set up 15,000 such machines across India in the next three years, and follows the launch of the flagship white label ATM in India at Chandrapada...

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Strong loan growth boosts YES Bank net 38%

Higher interest income and robust loan growth helped Yes Bank report a 38 per cent jump in net profit at Rs 401 crore in the April-June quarter.The private sector bank had posted a profit of Rs 290 crore in the year-ago quarter.Net interest income (difference between interest earned and spent) increased 40 per cent at Rs 659 crore on the back of higher margins and advances growth. Other income rose 53 per cent to Rs 442 croreDuring the quarter, the net interest margin increased to 3 per cent, against 2.8 per cent in the corresponding quarter...

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Andhra Bank unveils GenNext branches

How about going to a bank without worrying about the timings and being able to carry out various transactions by yourself?Andhra Bank customers can now look forward to such facilities at the new generation branches being opened under an initiative christened ‘Project Navashakti’.“This is not only a business transformation exercise but also a human resource transformation drive to popularise a sales/service culture with speed,” B.A. Prabhakar, Chairman and Managing Director, Andhra Bank. told Business Line here on Wednesday.Andhra Bank has just...

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Central Bank Q1 net plummets 94% on higher provisioning, depreciation

A sharp jump in provisions towards bad loans and depreciation in investments dragged down Central Bank of India’s net profit in the April-June quarter. Net profit dropped 94 per cent to Rs 22 crore in the April-June quarter against Rs 336 crore in the year-ago period.In the reporting quarter, the public sector bank made bad loan provisions of Rs 825 crore, including Rs 189 crore towards restructured assets, against Rs 382 crore (including Rs 196 crore towards restructured assets) in the year-ago period.Provision towards investment depreciation...

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Dena Bank pays Rs 90-cr dividend

Dena Bank has paid a dividend of Rs 90.89 crore to the Union Government towards dividend for financial year 2012-13.This public sector lender had declared a dividend of 47 per cent (Rs 4.70 per share of Rs 10 each) for the financial year 2012-13.The dividend warrant of Rs 90.89 crore was handed to the Finance Minister P. Chidambaram by the bank’s Chairman and Managing Director Ashwani Kumar at the North Block on Tuesday.Namo Narain Meena, Minister of State for Finance, was present on the occasion.Dena Bank had paid dividend of Rs 58 crore (Rs...

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Exim Bank expects 18% topline growth in FY14

Export Import Bank of India (Exim Bank) on Tuesday said it is expecting 17-18 per cent growth in topline and maintain the last fiscal’s profitability in the current financial year.“The performance of the institution is so far good. It is in line with the RBI guidelines. We expect to have 17-18 per cent growth in topline and hope that the profitability would also remain consistent at what is was last year,” Exim Bank Chairman and Managing Director, T C A Ranganathan said on the sidelines of a conference here.The Government-owned bank had posted...

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Dewan Housing posts 54% jump in Q1 net

In line with the financial performance of other housing finance companies, Dewan Housing Finance Limited’s (DHFL) first quarter net profit soared 54 per cent, pushed up by strong demand for home loans from individual customers.In the April-June period, the Mumbai-based company posted a net profit of Rs 120 crore, against Rs 78 crore a year ago. Total income increased 53 per cent to Rs 1,127 crore. The housing finance company’s total disbursements increased 35 per cent at Rs 3,615 crore during the quarter ended June 30.Last week, the company’s...

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OBC pays Rs 155 cr dividend to Govt

Oriental Bank of Commerce (OBC) has paid Rs 155.68 crore to the Union Government towards dividend for financial year 2012-13.The public sector lender had declared a dividend of 92 per cent (Rs 9.2 per share of Rs 10 each).The dividend RTGS amount for Rs 155.68 crore was presented to the Union Finance Minister P. Chidambaram by the bank’s Chairman and Managing Director S.L. Bansal at North Block today.Both the Executive Directors V. Kannan and Bhupinder Nayyar were present on the occasion. Source: thehindubusinesslin...

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KVB implements instant remittance service for NRIs

Karur Vysya Bank has implemented Oman-based Bahwan CyberTek’s ‘Cuecent eRemit’, a global remittance solution, to provide instant remittance service for its NRI customers.BCT said the new remittance solution has helped KVB launch an ‘instant cross-border remittances service’ for non-resident Indians, which offers the remitter the facility to instantly credit funds into the beneficiary account in any bank in India.BCT is a global provider of innovative software products and solutions.Under the service, the funds would be instantly remitted and...

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Kumar Mangalam Birla resigns from RBI central board

Aditya Birla Nuvo Chairman Kumar Mangalam Birla has submitted his resignation from the Reserve Bank of India’s Central Board. The resignation is to avoid any conflict of interest as Aditya Birla Nuvo has applied to the RBI for a bank licence. The company is one of the 26 firms that have applied for a banking licence.Birla has been on the RBI’s central board for the past six years. The RBI’s updated list of Directors of the Central Board does not mention Birla’s name, according to the RBI Web site.Earlier this month, RBI Governor D. Subbarao...

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ING Vysya Bank’s Q1 profits up 34.58%

ING Vysya Bank’s net profit for the first quarter (Q1) ending June 30, 2013 increased significantly by 34.58 per cent to Rs 175.12 crore, compared with Rs 130.12 crore in the same period the previous year.The bank’s total income also up 15.6 per cent, at Rs 1,553.08 crore for Q1 this fiscal (Rs 1,342.36 crore same period last year). EPS (basic) stood at Rs 11.25 (Rs 8.66).Operating profit was higher by 50.3 per cent to Rs 326.9 crore and cost to income ratio improved to 51.2 per cent from 57.7 per cent. The bank’s operating cost in Q1 climbed...

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IOB branch managers’ meet

Karnataka Health Minister U.T. Khader inaugurated the branch managers’ meeting of Indian Overseas Bank (IOB) in Mangalore on Sunday.A press release by the bank said here that Khader expressed happiness over the bank’s initiative to provide assistance for oxygen supply at the Government Wenlock Hospital in Mangalore city.He also lauded the bank’s move to create awareness on dengue and malaria among citizens, the release said. Vasantha Kumar C.S., General Manager of IOB, and K. Anil, Deputy General Manager, were present on the occasion, it said....

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ICICI Bank ties up with Movida for mobile payments

Movida, the mobile payments joint venture between Visa and Monitise, monday said private bank ICICI Bank will utilise its payment services.“The service will enable ICICI Bank payment card holders to pay bills and recharge prepaid airtime among others,” it said in a release here.As per the company, the payment solution is designed to operate across all mobile networks using any payment card including non-Visa cards.The company also said these services can be accessed through all kind of mobiles including the basic handsets. Source: thehindu...

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Government allots Rs 1,300cr to Post Bank

The expenditure department has decided to sanction Rs 1,300 crore to the proposed Post Bank of India to meet its capital requirements even as the department of financial services (DFS) - the wing in the finance ministry that deals with state-run banks and their policies - chose to stay away from the issue.The proposal's backing by the expenditure finance commission and its subsequent green light by finance minister P Chidambaram is seen as the official go-ahead by the finance ministry, ignoring the DFS's stance. The DFS position is seen as...

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RBI clamps down on private finance companies

The Reserve Bank of India (RBI) is clamping down on private companies engaged in the same business as non-banking finance companies (NBFCs) but not registered with it, as part of the regulator’s efforts to head off situations in which depositors could lose their money.The central bank wants to curb such unregulated non-banking finance services in the backdrop of the recent collapse of the West Bengal-based, deposit-taking Saradha Group.In the past three weeks, RBI has sent letters to several such companies undertaking finance activities, seeking...

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HDFC plans to buy Lever House in Mumbai

HDFC plans to buy Hindustan Unilever’s former headquarters, Lever House, located at Backbay Reclamation in the southern tip of the megapolis.“Today, the HUL building is on lease with us and we have the right to buy it and we will buy it,” the Chairman, Deepak Parekh, told the shareholders at the annual general meeting held here over the weekend.No financial details were immediately available.HUL was housed at the Lever House for 46 years before it moved to a new campus in Andheri (East) in North Mumbai in January 2010.The mortgage lender will...

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SIDBI identifies niche areas of financing for tiny units

The Small Industries Development Bank of India (SIDBI) is looking at potential areas of financial support to the MSME (Micro Small and Medium Enterprises) sector.SIDBI’s Deputy Managing Director N. K. Maini, who spoke at the SME CEO Knowledge Forum organised by UTI Mutual Fund in association with The Hindu Business Line at the Codissia Trade Fair Complex here on Friday, said that SIDBI was set up as a refinance institution initially. “We found gaps in financing over time. After undertaking a major re-positioning exercise within the organisation...

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Union Bank to approach FinMin with fresh capital-raising plan

Union Bank of India, is planning to submit a fresh capital raising plan to the Ministry of Finance “within a couple of days”.According to Debabrata Sarkar, CMD, though the bank is currently well capitalised, it might have to raise capital to fund its growth needs beyond 2015.“Our bank will be in a comfortable position in terms of capital till 2015. For the period post-2015, we will require more funds,” Sarkar said here on Friday. He was addressing an interactive session on bank credit organised by the Kolkata-based MCC Chamber of Commerce and...

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SBI rejigs Tier-II management; Pradeep Kumar to head large corp group

State Bank has re-jigged its second tier management by moving P. Pradeep Kumar, deputy managing director in-charge of global markets and treasury operations, to head the large corporate group.The move was following the vacancy created by resignation of Santosh B. Nayar last week, according to bank sources.Nayar, a Deputy Managing Director in-charge of large corporates, had resigned from the bank on July 13 to join the Delhi-based state-run infra lender IFCI as its managing director and chief executive.Following this, SBI sources told PTI, that...

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