LIC Housing Finance Q2 net soars 28% on higher interest income

Aided by a healthy growth in net interest income, LIC Housing Finance reported a 28 per cent increase in net profit at Rs 310 crore in the July-September period, against Rs 243 crore in the year ago period.However, as compared to the April-June quarter, the growth in net profit was flat.In the reporting quarter, India’s second largest standalone housing finance company logged a 28 per cent growth in net interest income (the difference between interest earned and expended) at Rs 453 crore (Rs 354 crore in the year ago period).Net interest margin,...

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Bank of Maharashtra Q2 profit declines 72%

Pune-based Bank of Maharashtra posted a net profit of Rs 46.85 crore during the second quarter of the current fiscal against Rs 166 crore in the same quarter of last fiscal, a decline of 72 per cent year on year.Total income stood at Rs 3,196 crore (Rs 2,434 crore), a growth of 31 per cent year on year.Wholesale and corporate banking operations accounted for the maximum growth in the income as well as for a loss of Rs 46 crore (gross) impacting the bottom line adversely. In the same quarter of FY 13, this segment had shown profit of Rs 39 crore.The...

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IDBI Bank net profit drops 60% on higher bad loans, provisions

Higher bad loans and provisions dragged IDBI Bank’s net profit down by 60 per cent in the second quarter to Rs 192 crore from Rs 484 crore in the year-ago period.Gross non-performing assets (NPAs) jumped to 4.98 per cent as of September-end, 2013, from 3.45 per cent in Q2FY’13. Net NPAs also rose to 2.82 per cent from 2.04 per cent, as per the BSE filing.Provisioning of the public sector lender soared 78 per cent to Rs 879 crore from Rs 495 crore in the corresponding quarter last year.However, net interest income, the difference between interest...

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Monetary policy: RBI raises repo rate by 25 bps, holds cash reserve ratio

Along expected lines, the Reserve Bank of India Governor hiked the repo rate by 25 basis points in the October monetary policy review today.The repo rate is now at 7.75 per cent. He had also raised it by 25 bps in the mid-quarter review in September.Repo rate is the rate at which banks borrow short term funds from RBI.Inflation has been on the upswing during the past few months. Wholesale price index (WPI) inflation touched 6.46 per cent in September while consumer price index inflation was at 9.84 per cent. Both these measures have been way...

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Birla Sun Life names Pankaj Razdan as CEO/MD

Birla Sun Life Insurance (BSLI) has appointed Pankaj Razdan as Chief Executive Officer (CEO) and Managing Director (MD) of the company.The appointment of Razdan, who has been with Aditya Birla Group since 2007, was subject to regulatory approval, the private insurer said in a release today.“Razdan has successfully steered some of our key businesses through challenging times. He has also guided our AMC business to an industry leadership position,” Aditya Birla Group Chief Executive (Financial Services), Ajay Srinivasan said.He replaces Jayant...

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RBI has done a balancing act: City Union Bank MD

Agreeing with the Reserve Bank’s third quarter monetary policy review, Managing Director of City Union Bank, Dr N Kamakodi, said that it is the best possible solution in current scenario.“It's a balancing act aimed at bringing inflation and liquidity under control while looking at growth. It is perhaps the best possible solution to get a balanced result in the current scenario", said Dr Kamakodi.On the option to pay interest on savings and term deposits at shorter than quarterly intervals, he said it’s only a representation. It has nothing...

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RBI tells banks to charge SMS alert fee as per usage

The RBI today asked banks to charge customers for transaction SMS alerts on the basis of usage, instead of imposing a fixed fee, to ensure equity and be reasonable.“Banks are advised to leverage the technology available with them and the telecom service providers to ensure that such (SMS) charges are levied on all customers on actual usage basis,” the Reserve Bank of India said in its Second Quarter Review of Monetary Policy 2013-14.It said fees based on actual usage are necessary to ensure reasonableness and equity in charges levied by banks.In...

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Deutsche Bank Q3 profit tumbles following lawsuit expenses

Deutsche Bank said on Tuesday net profit dwindled to a bare 51 million euros ($70 million) in the third quarter after it set aside 1.2 billion for losses from lawsuits.The net profit compared to a figure of 754 million euros in the same quarter a year ago. Profit for the third quarter fell far short of the average analyst estimate of 320 million euros as compiled by financial information provider FactSet.The bank also said its investment banking business has slowed.Net revenues fell 10 percent to 7.7 billion euros.It said the deduction to earnings...

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StanChart posts muted growth during Jan-Sept 2013

Standard Chartered on Tuesday said it saw a “resilient performance” in the third quarter, slowed by the Group’s performance in South Korea and Singapore.The London-based but Asia-focused bank said its income and operating profit grew by a “low single digit” for the nine months ended September 30, 2013, compared to the same period last year.Income for the third quarter was down by a “low single digit” percentage compared to the same period in 2012.Operating profit for consumer banking for the first nine months of the year was down by a “mid...

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'Kanyasree' scheme: SBI opens over 3,000 accounts

State Bank of India has opened over 3,000 “zero balance” savings accounts under the ‘Kanyasree’ scheme of the West Bengal Government. The scheme is aimed at reducing the drop-out rates among girl students.The scheme will provide special scholarship and grant to girl students who are continuing their study from 8th to 12th standard and pursuing higher studies. Source: thehindubusinesslin...

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Rangarajan differs with RBI on inflation projection

Disagreeing with the Reserve Bank of India’s projection on the price situation, former RBI Governor and PM’s Economic Advisory Council Chairman C. Rangarajan said that the WPI inflation and the CPI inflation may not be as high as being projected by the central bank.“Well I think the inflation rate may not be as high as (RBI) report seems to suggest. I would really think as far as WPI is concerned, it will be around 5.5 to 6 per cent. I don’t think that it will exceed 6 per cent...I expect the WPI as well as CPI to remain at slightly lower level...

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Repo rate hike on expected lines: Karnataka Bank chief

The Reserve Bank of India’s decision to increase repo rate by 25 basis points in the second quarter review of monetary policy for 2013-14 was very much expected by the market, according to P. Jayarama Bhat, Managing Director of Karnataka Bank Ltd.Bhat told Business Line on Tuesday that to insulate the economy from fluctuation in prices, the RBI had no other option than increase the policy rates, especially when business and consumer confidence is at a low.In the monetary policy review, the RBI has also decided to increase the liquidity provided...

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RBI’s Q2 monetary policy review: Highlights

Following are the highlights of the RBI’s second quarter review of monetary policy 2013-14:* Repo or short-term lending rate up by 0.25 per cent to 7.75 per cent.* Cash reserve ratio unchanged at 4 per cent.* Marginal standing facility (MSF) rate cut by 0.25 per cent to 8.75 per cent.* Difference between repo and MSF rate narrows to 1 per cent.* Repo hiked due to upturn of inflation, other factors.* Wholesale inflation expected to be higher than current levels; warrants ‘appropriate policy response’.* Retail inflation to hover around 9 per...

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Not considering change in ownership structure: Federal Bank

Kerala-based private lender Federal Bank, which recently received the Foreign Investment Promotion Board’s nod to raise foreign holding to 74 per cent, on Monday said it is not seeking any change in the ownership structure.“We would like to clarify that we have not sought any change in the already existing limit of foreign investment or (even in the existing sub-limits for FIIs up to 49 per cent and NRIs holding up to 24 per cent) in the equity share capital of the bank,” Shyam Srinivasan, Managing Director and CEO, said at a press meet here.This...

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Corporation Bank vigilance awareness week

Corporation Bank is observing vigilance awareness week from Monday.A press statement by the bank said here on Monday that the vigilance awareness week commenced at the corporate office of the bank by administering the pledge to all the employees, including the senior officials of the bank, by S.R. Bansal, Chairman and Managing Director of the bank, in the presence of Amar Lal Daultani and B.K. Srivastav, Executive Directors of the bank.K.S. Somayaji, General Manager and Chief Vigilance Officer, read out the messages received from the President...

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ICICI Bank: Strong loan growth aids profitability

Yet another private sector bank has performed well in the September quarter, despite rising costs and deteriorating asset quality. ICICI Bank improved its net interest margin and posted strong loan growth, that was a tad better than some of its peers.The bank’s strategy to focus on retail lending continues to pay off. Retail loan-book growth of 20 per cent helped the bank inch past HDFC Bank’s 17 per cent growth during the quarter. The loan quality has also been healthy.Within the retail space, secured home and auto loans have grown 23 per...

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Birla Sun Life Insurance launches life insurance plan

Private insurer Birla Sun Life Insurance launched a life insurance plan called the Vision LifeSecure Plan which offers a combination of regular bonuses throughout the policy term and a life insurance benefit until the age of 100.“The overall life expectancy across age groups has grown, with the average longevity per person improving. With benefits payable on maturity and a life cover beyond the term of the policy up to 100 years of age, Vision LifeSecure Plan offers a combination of savings and comprehensive financial protection to you and...

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IOB net drops 16% as treasury income skids

Indian Overseas Bank saw its net profit drop 16 per cent to Rs 132 crore in the second quarter ended September 30, from Rs 158 crore in the comparable previous-year quarter. Total income during the quarter rose a little over 8 per cent to Rs 6,000 crore, from Rs 5,515 crore in the year-ago period.M. Narendra, Chairman and Managing Director of the bank, attributed the drop in profits to the Rs 400-crore loss of treasury income ( due to the volatile rupee) and Rs 96-crore loss on transfer of SLR securities worth Rs 4,711 crore from AFS (available-for-sale)...

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