Selection process for public sector bank chiefs to get rigorous

The finance ministry on Friday made changes in the selection process of heads of staterun banks, introducing extra interviews and more independent experts in the selection panel to make the process more robust.The move falls short of the recommendations of the Reserve Bank of India, which had suggested that the government dissociate itself from the selection process and that the top executives of public sector banks (PSBs) be selected from the wider pool of the private sector. The finance ministry, however, said the changes will bring "more...

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Union Bank Q2 net up 78% at Rs. 371 cr

Union Bank of India reported a 78 per cent jump in net profit during the July to September period at Rs. 371 crore helped by write-back, lower provisioning and healthy non-interest income.“The sharp increase in profit was due to Rs. 140 crore received by the public sector bank as write back of income tax,” said Arun Tiwari, Chairman and Managing Director, Union Bank of India.Net interest income (different between interest income and expended) increased by a moderate 7 per cent to Rs. 2,085 crore as against Rs. 1,954 crore in the same quarter...

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IDBI Bank net dips to Rs. 118 cr on higher employee cost, provisioning

IDBI Bank today said its net profit fell by 38 per cent to Rs. 118.49 crore in the second quarter ended September 30 in the current financial year on higher employee cost and provisioning.The bank’s net profit during the same quarter a year ago stood at Rs. 192.27 crore.The bank made provisioning towards bad loans of Rs. 990.47 crore during July-September, 2014—15; up from Rs. 878.72 crore in the same quarter of 2013—14.Meanwhile, employee cost went up to 497.31 crore during the quarter from Rs. 360.49 crore a year earlier.“Total income has...

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Karnataka Bank net profit jumps to Rs. 88.46 cr

Karnataka Bank recorded a net profit of Rs88.46 crore in the second quarter of 2014-15 as against Rs28.95 crore in the corresponding period of the previous fiscal, registering a growth of 205.56 per cent.During the quarter, the net interest income (NII) of the bank stood at Rs297.27 crore (Rs284.54 crore), and the other income at Rs102.77 crore (Rs87.80 crore).There gross NPA of the bank was at 3.53 per cent (3.59 per cent), and net NPA at 2.37 per cent (2.25 per cent).Provisions (other than tax) and contingencies came down to Rs83.64 crore...

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State Banks' staff union meet in Mangalore on Nov 1 & 2

The 12th triennial general council meeting of State Banks’ Staff Union (Karnataka) will be conducted in Mangalore on November 1 and 2.Addressing presspersons in Mangalore on Friday, M C Mangsuli, President of Karnataka unit of the union, said that Ashwini Mehra, Deputy Managing Director of State Bank of India, will participate at the inauguration of the programme.He said that the State Banks’ Staff Union (SBSU) is representing around 99.99 per cent of the clerical and subordinate staff working in 700-plus branches of State Bank of India in...

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Manappuram Finance net up 73 per cent at ₹76.43 cr in Q2

Manappuram Finance Ltd has posted a 73.8 per cent increase in its net profit at Rs76.43 crore during the second quarter in the current fiscal compared to Rs43.98 crore in the preceding quarter ended June 30, 2014. The company’s net profit stood at Rs69.71 crore in the corresponding Q2 of FY-2013-14,.The Board also approved an interim dividend of Rs0.45 per share of face value of Rs2.The operating income increased to Rs 502.84 crore against Rs456.32 crore reported in the first quarter. The same was reported at Rs544.11 crore in Q2 of the previous...

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ICICI Bank Q2 report card: Higher slippages a concern ​

ICICI Bank’s net profit grew 15 per cent in the September quarter, on the back of 15 per cent growth in its net interest income. While the bank’s retail focus continues to pay off, driving the overall loan growth, asset quality has witnessed some pressure — an area of concern in recent quarters. Slippages of about Rs. 700 crore during the September quarter has been the highest in recent periods.At a time when its peers such as HDFC Bank and Axis Bank have been able to maintain stable asset quality, ICICI Bank’s higher addition to bad loans...

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Yes Bank registers 30% rise in Q2 profit on higher fee income

Yes Bank posted a 30 per cent jump in net profit at Rs. 483 crore for the second quarter ending September 30, 2014 on the back of robust growth in loans and interest income.The net profit in the year ago period was at Rs. 371 crore.Net interest income (difference between interest income and interest expended) soared by 27 per cent to Rs. 856 crore as compared with Rs. 672 crore in the same quarter last fiscal. Non-interest income increased 13 per cent to Rs. 506 crore from Rs. 446 crore in Q2FY14, limited by lower treasury fee income.The bank’s...

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Andhra Bank Q2 net zooms to Rs. 144 cr

Andhra Bank has posted a net profit of Rs. 144.49 crore for the quarter ended September 30, 2014 as compared to Rs. 70.65 crore for the corresponding quarter last year. Total Income has increased from Rs. 3,817.57 crore for the quarter ended September 30, 2013 to Rs. 4,423.62 crore for the quarter ended September 30, 2014.Source : The Hind...

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Allahabad Bank net profit halves to Rs. 141 cr

Kolkata-based Allahabad Bank reported a near 49 per cent dip in net profit to Rs. 141 crore for the period ending September 30, 2014.Profit for the corresponding period last fiscal stood at Rs. 276 crore.During the period, the bank, however, reported a marginal increase in both total income and interest earnings.Total income for the second quarter stood at Rs. 5,417 crore, an increase of mere 2 per cent (over Rs. 5,303 crore it reported last fiscal).Interest earnings moved up by 6 per cent to Rs. 4,901 crore ( as against Rs. 4,607 crore last...

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Vijaya Bank raises Rs. 500 cr through bonds

Vijaya Bank has raised Tier II capital of Rs. 500 crore through a bond offering to fund its business growth.In a statement, the bank said the capital was raised by issuing Unsecured Redeemable Non Convertible Basel III Compliant Tier II Bonds with a coupon rate of 9.15 per cent p.a. The issue was fully subscribed and allotment has been made on October 30, 2014, it added.Vijaya Bank scrip ended marginally higher at Rs. 47.25 on the BSE.The Rs. 500 crore bond issue is in addition to the proposed equity offering of Rs. 600 crore that the bank...

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IOB reports Q2 loss at Rs. 245 cr

Indian Overseas Bank today reported a net loss of Rs. 245.51 crore for the second quarter ended September 30 due to higher tax expenses and provisions for bad assets.The bank had reported net profit of Rs. 132.55 crore during July-September quarter in the previous fiscal.Total income has increased from Rs. 5,999.75 crore for the quarter ended September 30, 2013 to Rs. 6,440.77 crore for the quarter ended September 30, 2014, it said in a BSE filing.The bank made provisioning for bad loans to the tune of Rs. 892.38 crore in the second quarter...

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Axis Bank launches online outward money transfer in 100 currencies

Axis Bank, India’s third largest private Bank, announced the launch of its seamless online outward remittance facility in over 100 currencies.“Axis Bank customers can now make faster online outward remittances in over 100 currencies across 150 countries to accounts held with various other Correspondent Banks using this facility, from the comforts of their home or office,” the bank said in statement.The new outward remittance service offers customers the convenience and choice to initiate transfers through Axis Bank in additional 88 currencies...

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PM Narendra Modi to meet bank chiefs on Nov 5

The Prime Minister Narendra Modi will meet chief executives of public sector banks (PSBs) on November 5.This meeting, which will be held in the Capital, assumes importance as it will be the first instance when Prime Minister himself will interact with the chief executives of PSBs.It comes at a time when public sector banks are crying for reforms and nearly eight of them are headless.Indications are that the meeting--which will also be attended by Finance Minister Arun Jaitley--will see review of banks' operational and financial performance...

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Hamstrung by the limited number of products: LIC chairman

Life insurance Corporation, the country’s largest insurer, is facing a challenge due to the limited number of products in its basket after the new regulatory guidelines came into force in January 2014, said a top company official.The Insurance Regulatory and Development Authority put in place a new set of guidelines for life insurance products which involved changes in product structure, and required insurers to phase out all old products and re-file all their existing products.LIC Chairman SK Roy said that, at present, the company has only...

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Canara Bank ties up with Origo Commodities for agri loans

Public sector lender Canara Bank entered into a Memorandum of Understanding with Origo Commodities, a post-harvest management services company, to support farmers with warehouse receipt financing across the country.Warehouse receipt financing is a tool that enables farmers to avail financing and avoid “Distress Sale” of their produce. The MoU between Canara Bank and Origo Commodities will focus across multiple states including Karnataka, Andhra Pradesh, Tamil Nadu and Maharashtra among others,” company said in a statement. Origo Commodities...

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Moody’s retains negative outlook on banks

International rating agency Moody’s retained its negative outlook on the domestic banking system, citing high leverage in the corporate sector that may prevent any meaningful recovery in asset quality.“Our outlook for the country’s banking system remains negative, as it has been since November 2011.“The negative outlook reflects our view that high leverage in the corporate sector could prevent any meaningful recovery in asset quality, notwithstanding a moderate rebound in economic growth,” the agency Moody’s Investors Service said in a note...

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Oriental Bank Q2 net up 16% at Rs. 291 cr

Public sector Oriental Bank of Commerce (OBC) reported 16 per cent growth in net profit at Rs. 291.42 crore for the second quarter ended September 30, 2014.The bank had posted a net profit of Rs. 251.41 crore in the July-September quarter of the previous fiscal.The bank’s provisioning during the quarter increased to Rs. 641 crore from Rs. 551 crore in the September quarter of 2013-14 fiscal.Interest income of the bank grew 5.56 per cent to Rs. 4,936 crore.Net NPA as a percentage of total advances stood at 3.29 per cent against 2.69 per cent...

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Government cancels appointment of 8 state-run bank CMDs, 14 EDs

The government on Monday cancelled the appointment of eight chairmen-cum-managing directors and 14 executive directors of state-run banks appointed by the previous UPA government.In a statement released late on Monday, the finance ministry said the decision was taken after a committee set up to examine the selection process to the posts of CMDs/EDs of Public Sector Banks (PSBs) for 2014-15 submitted its report.The committee, which was set up earlier this year after the Syndicate Bank cash for loan scam had surfaced, included secretary (expenditure),...

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UCO Bank identifies Kingfisher Air as wilful defaulter

Kolkata based UCO Bank today said it has “identified” Vijay Mallya-owned Kingfisher Airlines as a “wilful defaulter” and will be sending a notice to the defunct carrier.“We have identified KFA as a wilful defaulter. We are in the process of sending a notice to the company in this regard,” a source in the bank told PTI.Other banks like State Bank of India and Punjab National Bank are also mulling this route.United Bank of India has already declared KFA a ‘wilful defaulter’ for defaulting on a loan of Rs. 350 crore.UCO Bank will also send a notice...

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Corp Bank donates Rs2.15 cr to Prime Minister’s relief fund

Corporation Bank donated Rs2.15 crore to the Prime Minister’s National Relief Fund for relief and rehabilitation of the people affected by floods in Jammu and Kashmir.A press release by the bank said here on Monday that SR Bansal, Chairman and Managing Director of the bank, presented the cheque to the Fund in New Delhi recently.As the bounden duty to extend support for the relief and rescue operations as well as for mitigating the sufferings of the affected people, Corporation Bank has risen to the occasion and donated to the Prime Minister’s...

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United India keen on entering Sri Lanka

Public sector general insurer United India as part of its plans to have presence overseas, was keen on setting up its first office in Sri Lanka, a top official said today.“We are looking at Sri Lanka. We have not yet finalised. It is still in the early stages..”, United India Insurance Company Ltd Chairman and Managing Director, Milind Kharat told reporters here.The company had earlier set up office in Hong Kong but was shut in 2002.Elaborating, he said, “We are keen in starting one office in Sri Lanka. We have to get the regulatory approvals,...

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Get banks to fill up top posts quickly, union petitions PM

Bank employees have urged Prime Minister Narendra Modi to take “expeditious” steps to fill up the top posts of several public sector banks (PSBs) which are headless.Currently, the post of Chairman and Managing Director remains “unfilled” in as many as six PSBs, AIBEA (All-India Bank Employees Association) General-Secretary CH Venkatachalam said in a letter to the Prime Minister.PSBs where the post of CMD remains vacant are United Bank of India, Canara Bank, Syndicate Bank, Indian Overseas Bank, Bank of Baroda and Oriental Bank of Commerce.Also,...

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SBI targets Rs. 250 cr/day home loan business

Country’s largest lender State Bank of India has set an ambitious target of disbursing Rs. 250 crore of home loans every day during the ongoing festive season, which currently stands close to Rs. 200 crore.After it waived off the processing fee late September as part of its festive offering, the bank is disbursing close to Rs. 200 crore home loans every day.“The home loan disbursement is going up each day. It was Rs. 130 crore in the beginning when we scrapped the processing fee. Then it moved up to Rs. 150 crore, and then Rs. 175 crore, and...

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IRDA favours lifting cap on agent fees

Sectoral regulator IRDA is expected to suggest to a high-level panel that the new Insurance Bill remove the existing 40 per cent cap on agency commission and leave agent licensing process to insurers themselves.Insurance Regulatory and Development Authority (IRDA) chairman T S Vijayan is slated to meet members of Parliamentary panel on Insurance Law (Amendment) Bill here on Monday, said a source.The Bill is likely to be tabled in the winter session.The regulator is likely to suggest that the agent licensing process, which is currently handled...

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