IDBI Bank to raise Rs 1,200 cr fresh capital through QIP

State-run IDBI Bank plans to raise up to Rs 1,200 crore through qualified institutional placement in FY14, said a top official.The bank needs an additional Rs 3,000 crore this fiscal, of which Rs 1,800 crore will come from the Government and the rest will have to be raised via qualified institutional placement route, IDBI Bank Chairman and Managing Director, M.S. Raghavan, at the sidelines of annual banking conference Bancon.“We want to augment our tier one capital. Rs 3,000 crore is the amount we foresaw, of which Rs 1,800 crore has been allotted...

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Differential licensing may leave less lucrative business out: SBI chief

After the Finance Minister P. Chidambaram spoke about adopting innovative methods to follow differential licensing in India, the SBI chief was quick to say that we should ensure there is no regulatory arbitrage.According to Arundhati Bhattacharya, “Otherwise, the more lucrative part of the business will get a lot of flair and for universal bankers like us, some amount of business is cross-subsidised by other players, but if we get a lot of competition in the lucrative business, then it would be difficult to maintain the other business.”“Other...

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Loan recast has gone “out of control,” says RBI official

Stating that the overall asset restructuring in the banking system has touched Rs 3.25 lakh crore as of June, RBI Executive Director B Mahapatra today said loan recast has gone “out of control” and all stakeholders need to tackle the problem jointly.“Till March 2011, things were manageable. We had around Rs 1.1 lakh crore in recast loans, but now if you see, things are quite out of control. It has gone up to Rs 2.7 lakh crore. This is only CDR (corporate debt restructuring) and if you put both (CDR and bilateral restructuring cases between...

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KVB net down 37.5% on higher provision

Higher provision for depreciation on investments, bad loans and terminal benefits on wage revision dragged Karur Vysya Bank’s net profit down 37.5 per cent to Rs 82.89 crore in the second quarter of the current fiscal.The bank’s net profit during the corresponding quarter of the previous fiscal stood at Rs 132.76 crore. Its net interest income increased 4.41 per cent to Rs 298.38 crore (against Rs 285.77 crore).Net interest margin fell to 2.51 per cent (3.06 per cent).Total business at the end of the first six months of the current fiscal,...

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SBI to raise Rs 5,000 cr via tier II bonds

The country’s largest bank State Bank of India plans to raise tier-II capital in the range of about Rs 5,000 crore before March.“We will be raising funds through the tier-II bonds before March hopefully. It should be in the range of about Rs 5,000 crore. There is no time frame but definitely before March,” said SBI chief, Arundhati Bhattacharya. She was speaking at the annual Bancon summit here.Earlier this week, Bhattacharya had said SBI planned to raise over Rs 9,000 crore in tier-I capital through the qualified institutional placement route...

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Karnataka Bank CASA drive

Karnataka Bank Ltd has launched a campaign to mobilise CASA (current account savings account) deposits.Under the nationwide campaign from November 15 to February 28, the bank intends to open more than five lakh accounts under the CASA category by undertaking door-to-door canvass by the work force, according to a bank statement here.At present, the bank has more than 53 lakh accounts under CASA category. The bank is aiming to cross a customer base of 60 lakh in CASA by March 2014.M.S. Mahabaleshwar Bhat, Chief General Manager of the bank, launched...

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Corp Bank pays tribute to Nehru

Corporation Bank paid tribute to Pandit Jawaharlal Nehru in Mangalore on Thursday. S.R. Bansal, Chairman and Managing Director of the bank, paid floral tributes to Nehru’s statue in front of the corporate office in Mangalore.Bansal said on the occasion that children should get good education. Amar Lal Daultani and B.K. Srivastav, Executive Directors of the bank, were present.Children and teachers from many schools and the members of Bharat Seva Dal took part in the programme. Source: thehindubusinesslin...

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Karur Vysya Bank net profit falls 37.5%

Higher provisions towards depreciation on investments, bad loans and towards terminal benefits on wage revision have dragged Karur Vysya Bank's net profit during the second quarter by 37.5 per cent to Rs 82.89 crore.The bank's net profit during the corresponding quarter of the previous fiscal stood at Rs 132.76 crore.Its net interest income increased 4.41 per cent to Rs 298.38 crore (Rs 285.77 crore). Net interest margin fell to 2.51 per cent from 3.06 per cent.Total business at the end of the first six months of the current fiscal, however,...

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SBI not to merge any associate bank this fiscal

State Bank of India has gone back on its plan to bring one of its associate bank’s under its fold in the current fiscal.“For the time being, the associate bank merger is on the backburner. Nothing is going to happen till March 31, 2014,” said S. Vishvanathan, Managing Director, Associates and Subsidiaries.In August, the then chairman of the bank, Pratip Chaudhuri, had said that SBI will merge one of its associate bank with itself by end of September.He had further added that it could be a bank with a weak retail base leading to widespread speculation...

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Lakshmi Vilas Bank Q2 net down 67% on higher provisions

Lakshmi Vilas Bank reported 67.4 per cent decline in net profit for the second quarter ended September 30 at Rs 5.85 crore on account of higher provision for bad loans.The private sector bank had posted net profit of Rs 17.93 crore during the same quarter (July-September) of the previous fiscal.Total income of the bank in the second quarter of the current fiscal stood at Rs 536.76 crore, up from Rs 477.01 crore a year ago, it said in a filing to the BSE.Net non-performing assets (NPAs) or bad loans of the bank rose to 3.77 per cent during the...

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Corporation Bank signs MoU with warehousing and collateral management company

Corporation Bank has entered into a Memorandum of Understanding (MoU) with Star Agri Warehousing and Collateral Management Ltd, Mumbai, for providing finance against warehouse receipts.A press statement by the bank said here that the MoU was exchanged between Lakshminatha Reddy, General Manager of Corporation Bank, and Jimmy John, Vice-President of Star Agri Warehousing and Collateral Management Ltd, in the presence of B.K. Shrivastav, Executive Director of the bank in Mangalore on Tuesday.Banks are entering into tie-up arrangement with specialised...

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Andhra Bank Q2 net plummets to Rs 71 cr on higher provisions, NPAs

Andhra Bank’s net profit decreased significantly to Rs 71 crore in the second quarter ended September 30, 2013, against Rs 326 crore in the corresponding quarter of the previous year on higher provisions.The total income of the Hyderabad-based bank, however, increased to Rs 3,817 crore from Rs 3,416 crore in the same period last year.The provisions (other than tax) and contingencies increased to Rs 502 crore (Rs 139 crore) while the net non-performing assets had gone up to 3.54 per cent (2.16 per cent).The earnings per share stood at Rs 1.26...

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Karnataka Bank appoints new additional director

Karnataka Bank Ltd has appointed Rammohan Rao Belle, former Managing Director and Chief Executive Officer of SBI General Insurance Co Ltd, as an additional director.A bank statement said here on Tuesday that Belle started his banking career in 1974 in SBI. During a span of 38 years with SBI, he held several important banking and information technology (IT) assignments in India and the UK.He has experience in retail, corporate and international banking, banking operations, credit, risk management and IT. He was also involved in the setting up...

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Canara Bank Q2 profits down 5.29% on higher provisioning

Higher provisioning for non-performing assets has hit Canara Bank’s bottom line. The bank’s net profit fell 5.29 per cent to Rs 625.94 crore for the second quarter (Q2) of the current fiscal, compared with Rs 660.97 crore in the same period last year.Total income of the bank grew 13.29 per cent, to Rs 10,427.48 crore compared with Rs 9,203.61 crore recorded in the same quarter last year. EPS stood at 14.13 as against 14.92 last year.Announcing the bank’s results, R. K. Dubey, CMD, Canara Bank, said profits were hit due to low recovery in government...

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Punjab & Sind Bank Q2 net down 63% at Rs 43 cr

Punjab & Sind Bank (PSB) has reported a 63 per cent decline in net profit for the quarter ended September 30 at Rs 43 crore (Rs 117 crore).Total income for the quarter under review increased by 5 per cent to Rs 1,980 crore (Rs 1,886 crore).For the six months ended September 30, PSB has reported a 17 per cent increase in net profit at Rs 165 crore (Rs 141 crore).Total income in the first half of the current fiscal increased 7 per cent to Rs 3,981 crore (Rs 3,730 crore), PSB said in a filing with the stock exchanges.Srivats.kr@thehindu.co.in...

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IOB to raise Rs 1,626 cr via preferential shares

The board of directors of Indian Overseas Bank has cleared the bank’s proposal to raise Rs 1,626 crore from the Government and Life Insurance Corporation through preferential allotment of equity shares, the Bank said in a regulatory filing.IOB will issue equity shares of face value of Rs 10 with premium on preferential basis to the Government and LIC up to an amount of Rs 1,626 crore. It decided to issue perpetual bonds to the extent of Rs 2,497 crore and to authorise its Chairman and Managing Director to fix the size of the issue and finalise...

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Dena Bank Q2 net down 55% to Rs 107 cr on higher provisions

Public sector lender Dena Bank reported a 55.19 per cent decline in net profit at Rs 107.38 crore for the quarter ended September 30, 2013 on account of higher provisions. The bank’s profit after tax stood at Rs 239.64 crore in the corresponding quarter last year.“The profit has come down mainly on account of higher provisions, which we had to provide for treasury and restructuring and NPA advances,” the bank’s Chairman and Managing Director Ashwani Kumar told reporters here.The bank’s provisions increased to Rs 266 crore in the second quarter...

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J&K Bank profit up 12% on better net interest margin

At a time when various banks have recorded much lower profit, J&K Bank said that its net profit had gone up by over 12 per cent during the three-month period ended September 30, 2013.The bank registered a Rs 302.66-crore net profit against Rs 269.53 crore for the corresponding quarter of 2012-13.The total business is up (year-on-year) by 14.67 per cent compared with the corresponding quarter last year and crossed Rs 1 lakh crore.“Our focus for the last two quarters has primarily been driven by the twin objectives of sustaining growth and...

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