SBI Q2 net rises 30% to Rs. 3,100 cr

India’s largest bank, State Bank of India posted a 30 per cent rise in net profit at Rs. 3,100 crore for September 2014 quarter as against Rs. 2,375 crore in the same quarter a yea ago. Sequentially, however, the profit declined from Rs. 3,349 crore in the June quarter.Net interest income (difference between interest earned and expended) was up 8 per cent at Rs. 13,274 crore from Rs. 12,251 crore, in the corresponding quarter last fiscal.During the quarter, provisioning for bad loans jumped to Rs. 4,275 crore signalling pressure on asset quality....

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FIPB clears HDFC Bank’s proposal to hike foreign holding to 74%

The FIPB today cleared the long-pending proposal of HDFC Bank to hike foreign holding in the bank to 74 per cent.“FIPB today considered and approved HDFC Bank’s proposal to raise foreign investment ceiling to 74 per cent,” officials said after the meeting of the Foreign Investment Promotion Board.The FIPB is of the view that HDFC Bank’ parent HDFC Ltd’s 22 per cent holding in the bank is FDI and hence total foreign holding is 73.39 per cent, which includes FII, FDI, ADR and GDR.“So the bank has little headroom to raise funds from foreign investors,”...

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SBI indicates capital raising plans

The country’s largest bank State Bank of India plans to raise capital during the current financial year and in the next year.While the size of the capital to be raised has not been disclosed, the issue would be linked to the extent to which the Central Government would be ready to dilute its holding in the bank which at present stands at 58.60 per cent.In a communication to the stock exchanges, the bank said that its board of directors today approved the issue of equity shares of Rs 10 each (post-split Rs 1 each) "such amounts as will dilute...

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80% of households have at least one bank account

A survey by banks has found that 80 per cent of households have at least one bank account. This shows improvement over census 2011 data which said nearly 6 out of 10 households have access to banking service.This happened mainly due to Pradhan Mantri Jan Dhan Yojana (PMJDY) which was reviewed by newly appointed Financial Service Secretary Hasmukh Adhia this week. The meeting reported that 83 per cent of a survey to identify unbanked households has been competed. As per the initial results, on an average about 80 per cent of the households surveyed...

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Final norms on small banks by month-end: Raghuram Rajan

The Reserve Bank of India's proposed final guidelines on starting payment banks - meant to serve smaller businesses and lower income households - are likely by the end of the month, central bank governor Raghuram Rajan said on Thursday.Rajan, during a speech in Mumbai, said the final proposal for establishing payment banks was with the finance ministry for feedback, and said he expected to call for applications for potential payments banks by the end of the month.In July the central bank had issued draft guidelines on payment banks, which are...

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Axis Bank sees faster growth in mobile transactions over ATM

With increasing penetration of smart phones, data connectivity and internet facilities in urban pockets in the country, bank transactions are rapidly shifting from ATM to digital, informed top official of the private sector lender, Axis Bank here.Rajiv Anand, Group Executive & Head–Retail Banking, Axis Bank informed that online transactions are increasing rapidly. “Till a few years back, ATMs had majority share in overall cash transactions, but now it has reduced to half at 50 per cent, mobile and netbanking has increased from 15 per cent...

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Allahabad Bank to raise 500 cr through private placement

Kolkata-based lender Allahabad Bank is looking to raise Basel-III compliant tier-II bonds aggregating upto Rs. 500 crore through private placement.According to a notification to the bourses, the lender will raise the amount in one or more tranche during the current fiscal (FY-15).Source : The Hind...

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RBI against loan waiver scheme by state govts

Reserve Bank Governor Raghuram Rajan today expressed reservation over the loan waiver scheme by various state governments and also suggested reasonable interest rate ceiling on loans from microfinance lenders.“Repeated loan waivers by various state governments distorts credit pricing, thereby also disrupting the credit market,” he said at a function organised by Nabard.Both Andhra Pradesh and Telangana governments have declared loan waivers for the farmers hit by cyclone Phailin last year.While the Telangana government has given the mandated...

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India Post wants to become a universal bank

India Post is interested in turning itself into a universal bank like many of its peers across the world and a committee under former Cabinet Secretary TSR Subramanian is looking into the matter, a senior department official said today.“We still want to be a full-fledged bank. The government will decide whether they want to give to us or not,” chief postmaster general, Maharashtra circle, Pradipta Kumar Bisoi told reporters here.“There is a committee under Subramanian which has been formed, they are going to give some recommendations, let’s...

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5 crore Jan Dhan accounts outside Rs 1 lakh accident insurance ambit

Five crore of the seven crore bank accounts opened under the government's flagship financial inclusion programme, Pradhan Mantri Jan Dhan Yojana (PMJDY), have fallen outside the ambit of the in-built Rs 1 lakh accident insurance cover as these accounts have seen no transaction since they were opened.Bankers and insurance industry executives say rules require at least one transaction in the account in the preceding 45 days for an account holder to be eligible for the insurance cover. But of the seven crore accounts opened under the scheme, only...

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Rural women in Uttar Pradesh to get loan at three per cent

The government today announced that women belonging to the rural areas of Uttar Pradesh would get loan at the rate of three per cent from the cooperative banks, Cooperatives minister of UP, Shivpal Singh Yadav said here."With the help of Rashtriya Pichda Varg Vitt Vikas Nigam, UP Cooperative Rural Development Bank Limited will provide loan to rural women at the rate of three per cent under the mahila gramin samriddhi yojna," the senior Cabinet minister said."One woman would be able to get a loan of Rs 50 thousand to Rs one lakh from the bank",...

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Any Time Money turns dear

Savings bank account holders are walking around with a long face these days. Weighed down by rising prices and stagnant salaries, they now have an additional headache to bear. Henceforth, they will not have the convenience of walking across to the friendly neighbourhood ATM (automated teller machine) to draw money for free more than five times a month.Those living in Mumbai, Delhi, Kolkata, Chennai, Bangalore and Hyderabad will have the convenience of only three transactions in a month if they were to use an ATM belonging to a bank where they...

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Issue of non-CTS complaint DDs poses hardship to bank customers

Krishnan was visibly upset over the inordinate delay in encashment of a demand draft issued by a bank. It is close to a week since I presented the instrument, but the said amount is still not reflected in my account statement,” Krishnan told this correspondent, clearly ignorant of the cause for such delay.Enquiries revealed that issue of non-CTS complaint demand drafts by banks posed a lot of hardship, delay in encashment of the instrument.And this, a cross-section of bankers admit, is continuing to happen even after two years of RBI's instructions...

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Central Bank cuts size of corporate loans

To rein-in bad loans, Central Bank of India has drastically cut the ticket size of loans it gives to India Inc.The public sector bank has capped fresh loan exposure at Rs 150-200 crore per company as against Rs 300-400 crore earlier.The bank has also pared its corporate loan exposure by Rs 13,797 crore in the last one year.Instead, it has focused on giving loans to the non-priority sector such as agriculture, retail, and micro and small enterprises (MSE).“This (curtailing the ticket size of loans to companies) is a risk mitigation measure....

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Dena Bank net drops 52% to Rs. 51.6 cr

Dena Bank reported a sharp 52 per cent decline in net profit at Rs. 51.58 crore in the second quarter ended September 30, 2014, as against Rs. 107.38 crore in the year ago period.Net interest income (the difference between interest earned and expended) was flat at Rs. 625 crore.Other income was up 19 per cent at Rs. 179 crore (Rs 150 crore in the year-ago period).Year-on-year, bad loans, in gross terms, saw a 96 per cent jump to Rs. 3,861 crore (Rs 1,968 crore).At 2.30 pm, Dena Bank shares were trading at Rs. 62.10 per share, down 4.09 per...

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Syndicate Bank opens mid-corporate branch in Vizag

Syndicate Bank is planning to open 300 more branches and 27 mid-corporate branches during the current financial year, according to Executive Director M. Anjaneya Prasad.He was speaking to reporters here on Saturday evening after the inauguration of the Visakhapatnam regional office and also a mid-corporate branch at Daba Gardens earlier in the day. He said the region comprising Visakhapatnam, East Godavari, Srikakulam and Vizianagaram would grow very fast after the bifurcation of the State and the bank had therefore set up a regional office....

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RBL Bank to launch IPO in 9 months

RBL Bank, formerly known as Ratnakar Bank, plans to raise funds through an initial public offer which will hit the market in the next 8-9 months.“We are preparing ourselves for the IPO and it may hit market in 8-9 months. It would not happen this fiscal but next calendar year,” RBL Bank Managing Director Vishwavir Ahuja told PTI.The quantum of offer has not been finalised by the board of the bank, he said, adding that the decision will be taken in the next few months after taking into account various factors including Basel III requirement.The...

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Central Bank turns around, posts Q2 net profit of Rs. 103 cr

Central Bank of India has turned around to report a net profit of Rs. 103 crore in the second quarter ended September 30, 2014, against a loss of Rs. 1,509 crore in the year-ago period.The public sector bank reported a 27 per cent rise in net interest income at Rs. 1,828 crore (Rs 1,434 crore in the year-ago period).Other income nudged up 7 per cent to Rs. 403 crore (Rs 378 crore).Year-on-year, bad loans nudged down Rs. 123 crore to Rs. 11,440 crore as at September-end 2014 as against Rs. 11,563 crore as at September-end 2013.​  Source...

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Syndicate Bank to open two new regions in Telangana, AP

Syndicate Bank will be adding two regions to its network in Telangana and Andhra Pradesh for better reach in the two States post the recent bifurcation.``These two regions will be opened next year and we are targeting a total business of Rs. 45,000 crore for March 2015 from both States,’’ M Anjaneya Prasad, Executive Director, Syndicate Bank, told newspersons here.As on September 30, 2014, total business in both States stood at Rs. 38,095 crore, of which deposits were Rs. 17,528 crore and advances Rs. 20,567 crore.The number of new accounts...

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Corporation Bank net profit zooms

Corporation Bank recorded a net profit of Rs 160.51 crore in the second quarter of 2014-15 as against a net profit of Rs 15.48 crore in the corresponding period of the previous fiscal, registering a growth of 937 per cent.Addressing presspersons here on Friday, SR Bansal, Chairman and Managing Director of Corporation Bank, said that issues such as reducing operational expenses, manpower rationalisation, and space audits have contributed. The bank registered this growth by “avoiding the avoidable expenses,” he said. Explaining some of these...

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RBI not ready to cut rates despite inflation dip

Inflation may be down, but the RBI is not in a hurry to lower interest rates.According to Reserve Bank of India Deputy Governor HR Khan, structural issues such as high input costs, rising wages, and elevated food prices were complicating the fight against price rise. Rural areas faced supply chain issues too, he said at a CFO summit organised by the CII.The Deputy Governor’s comments, though coming in the backdrop of the consumer price index inflation for September hitting a near three-year low of 6.46 per cent, can be interpreted to mean that...

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Bank of Maharashtra net surges

Robust cash recoveries and upgradation of assets helped Bank of Maharashtra log a 247 per cent jump in net profit in the second quarter ended September 30, 2014.The bank recorded a net profit of Rs 163 crore , compared with Rs 47 crore in the year-ago period.The bank made cash recoveries of Rs 217.51 crore (Rs 89.15 crore in the year-ago period). It saw upgradation in assets of Rs 425.92 crore (Rs 118.61 crore). Net interest income (the difference between interest earned and expended) was up 13 per cent at Rs 992 crore (Rs 876 crore).Non-interest...

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Bank of Baroda maintains asset quality

Bank of Baroda’s net profit fell 5.5 per cent in the September quarter, despite 17.5 per cent growth in its net interest income. This was due to higher tax provisions.This is the fourth consecutive quarter when BOB has been able to expand its net interest income. The bank has also been able to improve its asset quality over the last five quarters, with lower slippages to bad loans and lower addition to restructured loans.In the last few quarters, Bank of Baroda (BOB), cautious of the slowing economy, has been focussing on asset quality and...

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Syndicate Bank Q2 net down 33% at Rs. 315 cr; to raise Rs. 1,100 cr through QIP

Syndicate Bank's net profit declined 33 pc at Rs. 316 crore in the second quarter ended September 30, 2014 compared to Rs. 470 cr in the corresponding quarter last year.The decrease in net profit was mainly on account of higher provisioning at Rs. 537 crore."Actually, there was good growth of operating profit at 18 per cent. But movement of non performing assets resulted in higher rovisioning", M. Anjaneya Prasad, Executive Director, Syndicate Bank said here on Friday.Though the Gross NPAs and Net NPAs had gone up to 3.43 per cent (2.88 per...

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Vijaya Bank Q2 net up 5.53% to Rs143.75 cr

Vijaya Bank has reported a 5.53 per cent increase in net profit for the September quarter at Rs. 143.75 crore on higher income. The bank had reported a net profit of Rs. 136.22 crore in September quarter last fiscal.Total income for the September quarter this financial year was up 15 per cent to Rs. 3,253.75 crore. Interest income grew 11 per cent while the income on investments rose 28 per cent to Rs. 838 crore. The net interest income, the difference between the interest earned and expended, fell marginally to Rs. 578.70 crore.Vijaya Bank...

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