HDFC Bank elevates seven senior executives in bid to retain talent

HDFC Bank has elevated 7 senior executives to group heads of various businesses as it tries to groom talent and protect them from being poached by emerging rivals such as IDFC Bank and other payment banks.

India's second largest private sector bank has elevated Parag Rao, who heads the bank's card payments and merchant acquiring business, Nitin Chugh who is in charge of the bank's Digital Banking services, Nirav Shah who handles the SME portfolio, and Ravi Narayanan who helms the bank's branch banking vertical.

Others who have been promoted are Ashok Khanna who is the head of the auto loan division, Ashima Bhat who is currently part of the finance team, and Munish Mittal, the Chief Technology officer of the bank. HDFC Bank will now have 19 executives as part of its senior management team. HDFC Bank had seen three senior level exits in August this year, when Biju Pillai, Amit Kumar and Birendra Sahu quit to lead IDFC Bank's personal and business banking divisions.

The bank had also elevated Dhiraj Relli to head of HDFC Securities and Aseem Dhru as group head -business banking, rural, commodity and agri-lending businesses in June this year.

Although the bank has re vealed very little about its succession planning or management roles for senior staff, experts believe these promotions follow the entry of potential banking companies which are scou ting for experienced and proven bankers.

In December 2013, HDFC Bank had elevated its long time second-in-command Paresh Sukthankar as deputy managing director, a move that was interpreted as improving Sukthankar's chances of succeeding Aditya Puri as MD and CEO of India's most valuable bank.

Other private sector banks like ICICI and Axis Bank ha ve also faced the brunt of employee attrition after the launch of IDFC, Bandhan and several payments banks. Some bankers point out that the ability to retain talent has been the lowest in years with new entrants of fering generous pay hikes to employees especially at the junior and middle manage ment level.




Source : Economic Times

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IDRBT to develop digital banking framework

The Institute for Development and Research in Banking Technology (IDRBT) has announced plans to launch a digital banking framework within the next few months, aimed at incorporating new channels of payments.

A.S. Ramasastri, Director of IDRBT, told BusinessLine, “The framework/ platform being developed with inputs from banking sector players, technology firms, and IDRBT research teams, is also aimed at meeting emerging requirements in the e-commerce sector.”

Recent advances in Big Data and its analytics has thrown up immense possibilities in identifying areas of business propositions for banks, while meeting the choosy demands of their customers.

Research in this area has enabled banks to develop their own data warehouses for customer relationship management (CRM) initiatives. Big data has, therefore, become the mantra for understanding new leads for banks, the likes and dislikes of customers, their behavioural analysis, and information security threats, among other issues.

Over the years, IDRBT, based in Hyderabad and part of Reserve Bank of India, has played a significant role by contributing through centres of excellence in analytics, mobile banking, cyber security, Centre for Open Source Systems, and Centre for Virtualisation and Cloud Computing.

“There has been a huge growth in data requiring specialised systems and tools to make sense of the information flow. While a lot of business intelligence has been built into banking systems, it calls for more advanced systems to extract information from Big Data,” he said.

Towards this, IDRBT is seeking to focus on new areas of fuzzy computing, neuro computing and hybrid neuro-fuzzy computing. By exploring new applications areas and designing novel hybrid algorithms for solving different real world application problems, the Digital Framework seeks to use the power of fuzzy and neuro computing to address complex, uncertain, and imprecise problems.

The concept of Fuzzy Neuro Computing gained importance to analyse and make sense of complex data that keeps flowing into the banking systems. By use of various computing techniques, it is aimed at providing solutions to make the right decisions.

PG DIPLOMA IN BANKING TECHNOLOGY

The IDBRT Director said the Institute is all geared up to introduce a Post-Graduate Diploma in Banking Technology (PGDBT) commencing from July 2016.

Describing the course as a unique programme designed to provide the Indian banking and financial sector a pool of talented professionals with technology expertise, he said this is a full-time regular one-year programme that provides essential learning inputs on technology implementation, integration, and management to meet the challenging technology requirements of the banking sector. The selection is based on CAT scores.


Source : Thehindubusinessline

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Dena Bank gets board approval to dilute government stake

Public sector lender Dena Bank has got board approval for dilution of government holding to up to 52 per cent and raise capital up to Rs 2,500 crore from various bonds.

"To raise equity capital of the Bank by diluting GOI holding up to 52 per cent, on obtaining necessary approval government," the bank said in a BSE filing.

Government shareholding in the bank was 65 per cent at the end of September 30.

Last year, the government allowed public sector banks to to bring down its stake to 52 per cent so as to meet capital requirement.

As per law, government holding at any moment must not come below 51 per cent to maintain the public sector character of the state-owned banks.

The bank said it has got board approval to raise Additional Tier-1 (AT1) capital up to an amount of Rs 1,500 crore in one or more tranche, in one or more instruments.

It further added that the bank has got board approval to raise Tier 2 capital up to an amount of Rs 1,000 crore in one or more tranche, in one or more instruments.

Shares of the bank closed down 0.80 per cent at Rs 43.45 on the BSE.



Source : Economics Times

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SBT launches ‘affordable housing loan’ scheme

State Bank of Travancore (SBT) has launched a ‘Housing for All (Urban): Mission 2022’ to provide affordable housing to families belonging to the economically weaker sections/low-income groups in the urban centres.

The scheme upholds the spirit of the ‘Swachh Bharath Mission’ by insisting on a toilet for every house that is built, a spokesman for the bank said here.

The loan can be accessed in all statutory towns of India as per the Census of 2011, the spokesman added.

As part of the scheme, loans will be advanced in line with the Centre’s target of providing ‘pucca’ residential houses for all urban Indian families by the year 2022.

The loans will be available for beneficiaries in two segments, viz. (i) those with a household annual income of up to Rs. 3 lakh under the economically weaker sections and (ii) those with a household annual income between Rs. 3,00,001 and Rs. 6 lakh under the low-income group.

The beneficiaries will be eligible for an interest subsidy of 6.50 per cent provided by the Centre, the spokesman added.

Simple documentation and relaxed norms makes access easy. The scheme is expected to improve the overall ratings on the standard of living and health conditions of the targeted group of citizens.


Source : Thehindubusinessline

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Bank officers serve notice for strike on Dec 11

The All-India Bank Officers’ Confederation (Aiboc) has given a call for a nationwide strike on December 11 in support of its various demands.

The notice of strike has been served by mail to all concerned, says Harvinder Singh, general secretary, Aiboc.

The one-day strike will be preceded by other types of protests including wearing of black badges while on duty on December 2; demonstrations at the headquarters of all banks on December 4; and mass demonstrations at major centres and state capitals on December 7.

PENDING ISSUES

Singh recalled that the Joint Note for the 1oth bipartite settlement was signed on May 25 but many issues were left pending on the assurance of the Indian Banks’ Association (IBA) that action would be taken without delay.

Among these are issues pertaining to retirees covered in the record cote; disciplinary matters; calling officers for work on Sundays/holidays; and anomaly in stagnation increments.

Singh said even settled issues of medical aid and reimbursement of medical expenses for retired employees through insurance, have not been implemented.

Despite the lapse of six months and our several reminders, no steps have been taken by the IBA to resolve them.

There is no move either to start negotiations or restart discussions, Singh said. The IBA has not extended even the normal courtesy of acknowledging Aiboc communications.

NAYAK COMMITTEE

These apart, the Centre is announcing and implementing policies based on the recommendations of PJ Nayak Committee to dilute stake in public sector banks; privatise them through denial of capital; put up a Banking Bureau Board; deliberately delay appointment of officer-directors on boards; pick private entrepreneurs as MDs and chairmen in Banks; and permit FDI.

But it has not cared to move decidedly to recover debts from wilful defaulters even as more leeway is being provided to them via asset reconstruction companies and strategic debt restructuring.

Singh also alluded to non-implementation of the understanding between Dhanlaxmi Bank Officers’ Organisation and the management reached in the presence of the Kerala Home Minister and trade union leaders.

In view of these, the executive committee of Aiboc felt that any delay in deciding on direct action will harm the interests of public sector banks and the job security of employees.

Also, there is a need for a re-look at the 10th bipartite settlement in view of the recommendations of 7th Pay Commission and salary settlement of LIC employees.


Source : Thehindubusinessline

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Andhra Bank seeks to sell $209 mn worth bad loans to ARCs

State-run Andhra Bank is seeking to sell bad loans worth about 13.88 billion rupees ($209 million) to asset reconstruction companies, according to a newspaper advertisement on Monday.

The bad loans are in 29 accounts, the bank said in the advertisement.

Andhra Bank on Saturday reported a 74 per cent increase in its second-quarter net profit to 2.51 billion rupees from a year earlier. Its gross bad loan ratio eased to 5.71 per cent from 5.75 per cent in the first quarter. ($1 = 66.4200 Indian rupees)


Source : Thehindubusinessline

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Allahabad Bank Q2 net up at Rs 177 cr

Allahabad Bank has reported a net profit of Rs. 177.10 crore during the second quarter to September 30, 2015 against Rs. 141.44 crore in the corresponding quarter last year. The bank's gross NPA stood at Rs. 7,985.75 crore (Rs 7,674.27 crore).


Source : Thehindubusinessline

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Vijaya Bank opens Retail Assets Processing Centre at Ahmedabad

Vijaya Bank plans to increase its branch network in the Ahmedabad Region by adding three more branches during this financial year. The bank plans to scale up its business from Rs. 5,191 crore as of September 2015, to cross Rs. 7,000 crore by the end of the fiscal.

At the launch of Retail Assets Centralized Processing Centre (RACPC) at the Regional headquarters at Ahmedabad, A Murali Krishna, Deputy General Manager and Regional Head, Vijaya Bank, informed that the bank plans to more than double its home loan advances from Rs. 38 crore last year to Rs. 75 crore this fiscal. The average ticket size for home loan at Ahmedabad Region is Rs. 14 lakh.

The Ahmedabad Region has nearly 100 per cent credit deposit ratio. In its total advances portfolio of Rs. 2,500 crore currently, corporate advances stands at Rs. 1,200 crore. Retail segment advances stand at Rs. 347 crore, which the bank expects to increase to Rs. 450 crore.


Source : Thehindubusinessline

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PNB shifting gears to become a retail bank in big way

Punjab National Bank (PNB) is "shifting gears" to change itself into a retail bank in a big way, Usha Ananthasubramanian, Managing Director and CEO, has said.

As part of risk diversification strategy, the bank will focus on expanding the share of "small value loans” in its balance sheet, Usha said at a press conference to announce the second quarter results.

Special focus will be on retail loans. There is ample room for PNB to expand its retail loan book and this would be the way forward, she said.

For the second quarter ended September 30 this year, PNB on Friday reported a 7.9 per cent increase in net profit at Rs. 621 crore (Rs 575 crore). For the half year ended September 30, PNB's net profit stood at Rs. 1,342 crore.

On non performing assets, Usha said that the picture was better than the first quarter and the trend was in the direction of reducing NPAs.

In a change of tack, PNB has now decided to look at selling stressed assets to asset reconstruction companies (ARCs).

For the last 5-6 years, PNB had desisted from selling assets to ARCs.

"It is very difficult to say where we will land on the NPA front when we close the current fiscal. One thing is for sure, we are seriously focused on reducing NPAs and improving recoveries", she said.

Srivats.kr@thehindu.co.in


Source : Thehindubusinessline

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SBI reports 25% jump in Q2 net profit to Rs. 3,879 cr

State Bank of India (SBI), the country’s largest bank, reported a 25% jump in net profit for the July to September quarter to Rs. 3,879 crore. The profit was driven by a jump in other income due to strong performance of treasury operations and lower provisions for bad loans.

Net profit for the second quarter of the last fiscal year was at Rs. 3,100 crore.

Net interest income, difference between interest earned and expended, was at Rs. 14,253 crore , up 7 per cent from Rs. 13,275 crore in the comparable quarter last year. Other income rose 36% to Rs. 6,197 crore compared to Rs. 4,750 crore in the second quarter last year.

Asset quality at the bank improved for the bank as against the trend of a number of public sector banks.

Bad loans

Gross non-performing assets (NPAs) were at 4.15 per cent at the end of the September quarter compared to 4.29 per cent at the end of the June quarter and 4.89 per cent in the same quarter last year.

During the July-September quarter, the bank set aside Rs. 3,842 crore as provisions for bad loans compared to Rs. 3,359 crore in the April-June quarter. Compared to the second quarter of last year, provisions were 7 per cent lower.

Post-provisioning, net NPAs were at 2.14 per cent of total loans compared to 2.24 per cent in the June quarter and 2.73 per cent in the September 2014 ended quarter.

At 1.15 pm, shares of SBI were trading 2.4 per cent higher at Rs. 239.85 per share on the BSE.


Source : Thehindubusinessline

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Bank of Baroda Q2 profit tumbles as provisions spike

Bank of Baroda Ltd's, India's second-biggest state-run lender by assets, second-quarter profit slumped about 89 per cent on Friday, hit by a sharp rise in provisions as bad loans jumped.

Shares in the Mumbai-based bank, which in August became one of the first state owned lenders to appoint a private sector chairman, tumbled almost 10 per cent at the market open. At 10.10 am, the stock was down 3.3 per cent or Rs. 5.40 at Rs. 154.10 on the BSE.

Net profit fell to Rs. 124 crore ($18.9 million) for its quarter ended September 30 from Rs. 1,104 crore reported a year earlier, the Mumbai-based lender said in a statement on Friday.

The gross bad loan ratio for the quarter rose to 5.56 per cent, a jump from 4.13 per cent in the previous three months and 3.32 per cent in the same quarter a year earlier.


Source : Thehindubusinessline

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Union Bank net zooms 77% at Rs. 658 cr

Union Bank of India today reported a massive jump of 77 per cent in its net profit to Rs. 658 crore for the September quarter.

The bank had reported net profit of Rs. 371 crore in the July—September quarter of the previous fiscal.

Global business grew by 7.4 per cent to Rs. 5,84,687 crore as on September 30 of the current fiscal, while deposits soared by 10.2 per cent to Rs. 3,30,665 crore, Union Bank said in a statement.

Advances grew by 3.9 per cent to Rs. 2,54,022 crore.

Net interest income for July—September quarter of 2015—16 increased by 0.8 per cent to Rs. 2,102 crore from Rs. 2,085 crore in the same quarter of last fiscal.


Source : Thehindubusinessline

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Vijaya Bank Q2 net drops 20% to Rs. 115 cr

Vijaya Bank on Friday reported a 19.80 per cent fall in its July-September quarter net profit at Rs. 115.29 crore, impacted by higher provisions.

The bank had registered a net profit of Rs. 143.75 crore in the corresponding quarter last year.

Total income of the bank stood at Rs. 3,202.89 crore for the quarter ended September 30, 2015 from Rs. 3,253.75 crore in the corresponding quarter a year ago.

“Even though there is increase in the operating profit, but because of the increased provision net profit has come down. This quarter we had to make a provision of Rs. 283 crore, out of that Rs. 272 crore was only on account of NPAs. Because of the increased provision for NPAs, net profit has come down,” Vijaya Bank MD & CEO Kishore Sansi told reporters here.

“Net slippage is around Rs. 600 crore in this quarter and most of it has come from infrastructure and large corporates,” he added.

The bank’s gross NPA ratio as on September 30 was 3.98 per cent against 2.85 per cent during the corresponding period last year, while the net NPA stood at 2.84 per cent as against 1.88 per cent last year.

The provision coverage ratio was at 58.28 per cent at the end of September quarter.

Net interest income for three months ended September 2015 increased to Rs. 692.55 crore from Rs. 578.70 crore for the corresponding period last year, up by 19.67 per cent.

Other income of the bank increased from Rs. 169.85 crore in the second quarter of last fiscal to Rs. 193.93 crore for the corresponding period this year, up by 14.18 per cent.

CASA of the bank increased from Rs. 23,348 crore as of September 30, 2014 to Rs. 25,311 crore this year, up by 8.41 per cent. The percentage of CASA deposits also improved to 20.53 per cent from 18.95 per cent.

Responding to a question on plans to raise capital, Sansi said “We had requested government of India to infuse about Rs. 400 crore of capital. They may take a decision either by end of this quarter or early next quarter, but any case we have a plan to go in for tier-I capital of about Rs. 200 crore and tier-II of about another Rs. 200 crore in the coming quarter.”

“Our objective is to reach a figure of about 11.5 per cent CRAR by March 2016,” he added.

The bank said its total number of branches increased to 1,755 as on September 30 this year, while total number of ATMs stood at 1,496.


Source : Thehindubusinessline

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PNB net profit rises 8% to Rs 621 cr in Q2

Punjab National Bank today reported 8 per cent rise in standalone net profit to Rs 621.03 crore for the second quarter ended September 30, 2015—16.

The bank had posted net profit of Rs 575.34 crore in the same quarter of the previous financial year.

Interest earned was Rs 12,345 crore for the July-September quarter of the current fiscal, as against Rs 11,462 crore in the year-ago period.

The bank’s provisioning was higher at Rs 1,882 crore as opposed to Rs 1,768 crore a year ago.

PNB’s total income has increased from Rs 13,020.46 crore in July-September quarter of 2014-15 to Rs 13,701.93 crore for the same quarter of the current fiscal.


Source : Thehindubusinessline

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Yes Bank, IndusInd Bank in fray for GE Capital Asset

Global diversified conglomerate General Electric is in the midst of exiting most of its financial assets to concentrate on its industrial segments as part of a global strategy and its India divestment strategy is picking up pace, as sources tell ET NOW that GE Capital India's medical equipment financing business is on the block and has attracted the attention of top private sector banks.

" Yes Bank and IndusInd Bank are amongst suitors in the fray for the asset and currently multiple suitors are conducting due diligence," a source privy to ongoing negotiations told ET NOW.

Explaining the deal rationale, another source added " This asset will be attractive to banks who want access to the current accounts of several leading hospitals and doctors in a bid to improve their CASA ratio. This is a sun-rise sector and moreover represents a safe investment, as there are HNI's involved who are covered by insurance and generally, these loans are not defaulted."

According to the company website, GE Capital India offers affordable purchase plans for the purchase of a wide array of healthcare equipment relating to diagnostic imaging, surgery and clinical systems.

In response to an email query from ET NOW, a Yes Bank spokesperson said, "Yes bank as a policy does not comment on market speculation. However we do remain open to evaluating opportunities which are aligned to Yes bank's strategic focus." IndusInd Bank declined to comment and GE responded saying , " At GE, we do not comment on speculation."



Source : Economic Times

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Lakshmi Vilas Bank launches co-branded credit card

Lakshmi Vilas Bank (LVB) today launched a co-branded credit card in partnership with SBI Cards and Payment Services, commemorating LVB's 90th anniversary.

The Tamil Nadu-based bank had partnered with payment solutions provider SBI Cards and Payment Services to offer its first Lakshmi Vilas Bank-SBI Credit Card, a top official said.

"This is a win-win concept for us. For the first time we are launching this co-branded credit card. We would like to take this relationship (with SBI Cards and Payment Services) to much greater levels," LVB Chief Operating Officer A J Vidyasagar told reporters.

He said the bank along with SBI Cards would leverage each other's strengths and offer the credit cards -- Visa Platinum Credit Card and Visa SimplySAVE credit card -- to customers.

"Initially, we are targeting to cover 10,000 customers".

SBI Cards and Payment Services is a joint venture between State Bank of India and GE Capital.

SBI Cards currently has a subscriber base of 3.2 million customers and 10 per cent of it constitute customers who have co-branded credit cards, SBI Cards and Payment Services Chief Executive Officer Vijay Jasuja said.

"We have been growing very aggressively over the last two years. By partnering with them (Lakshmi Vilas Bank), we have added another feather in our cap," he said.

LVB also unveiled a health and wellness solutions to customers under its tie-up with Cigna TTK Health Insurance.

A mobile application, LVB Mobile, allowing customers to make banking transactions through mobile phones was also launched on the occasion.



Source : Economic Times

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Suresh N Patel is new MD & CEO of Andhra Bank

Suresh N Patel has assumed charge as Managing Director and CEO of Andhra Bank.

According to a release issued here, Patel assumed charge in New Delhi on Monday.

Patel, who had started his career in banking as an agricultural officer in Dena Bank in 1981, had earlier served as executive director of Oriental Bank of Commerce and has diverse experience in various roles.

A graduate in science and law, he is also a certified member of Indian Institute of Bankers.


Source : Thehindubusinessline

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Finance Ministry makes 4 CEO-level appointments at public sector banks

The Finance Ministry has appointed new chief executives in four public sector banks.

Mahesh Kumar Jain, currently executive director at Indian Bank, has been elevated as Managing Director & CEO of the bank. He has been appointed for a period of three years.

The Finance Ministry has also appointed Suresh N Patel as Managing Director & Chief Executive Officer (CEO) of Andhra Bank. Prior to this appointment, Patel was an executive director at Oriental Bank of Commerce (OBC).

Ravi Krishan Takkar, who was executive director at Dena Bank, has now been appointed as Managing Director & CEO of UCO Bank for a period of three years.

The Finance Ministry has also appointed Jai Kumar Garg, Executive Director at UCO Bank, as MD & CEO of Corporation Bank. Garg will assume charge on or after February 1 next year.

Srivats.kr@thehindu.co.in


Source : Thehindubusinessline

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UAE bank NBAD purchased RBS's offshore loan book in India

National Bank of Abu Dhabi( NBAD), the largest lender by assets in the United Arab Emirates, bought Royal Bank of Scotland's offshore loan book in India for 3 billion dirhams ($816.8 million) in October, the bank's chief executive Alex Thursby said in a conference call on Wednesday.

The bank is planning to start operations in India next week.


Source : Thehindubusinessline

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Sundaram BNP Paribas posts 27% rise in net profit

Sundaram BNP Paribas Home Finance has reported a 27 per cent increase in its net profit for the second quarter ended September 30, 2015 at Rs. 40.52 crore.

Income from operations rose marginally from Rs. 238 crore to Rs. 242 crore during the second quarter. The company had disbursed Rs. 450 crore in this quarter compared with Rs. 537 crore in the same quarter last year.

Srinivas Acharya, Managing Director, Sundaram BNP Paribas Home Finance, said in a press release that the real estate sector continues to be sluggish.

He said, "The recovery has been delayed and still seems at least a few months away. We are continuing to witness stiff resistance from buyers and the quantum of unsold stock remains a concern. Improvement in hiring sentiments, especially in the IT sector, could trigger a recovery in the home buying space later this year."

Sundaram BNP Paribas Home Finance Ltd. is a 50.1% - 49.9% joint venture between Sundaram Finance and BNP Paribas of France.


Source : Thehindubusinessline

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