Axis Bank profit climbs 18% to Rs. 2,180 cr in Q4

Axis Bank, the country’s third largest private bank, reported an 18% rise in net profit for the fourth quarter ended March 31, 2015, at Rs. 2,180 crore.

The profit was at Rs. 1,842 crore a year ago.

Net interest income (difference between interest earned and expended) increased 20% to Rs. 3,799 crore as compared with Rs. 3,165.75 crore in the March quarter last year.

Other income rose 21% to Rs. 2,687 crore as against Rs. 2,213 crore in Q4FY14.

Gross non-performing assets (NPAs) as a percentage of total loans increased to 1.34% as on March end, 2015 as compared with 1.22 per cent as on March end, 2014.

Net NPAs also increased to 0.44% from 0.40%.

Dividend

The board of directors of the bank has recommended the payment of dividend of Rs. 4.60 per equity share.

The board also approved the proposal to seek enabling approval of shareholders for increase in the foreign Investment cap in the bank from 62% to 74% of its paid up equity capital of the Bank.

In addition, the board approved Sponsored Level 1 Depositary Receipt (DR) issuance programme of up to Rs. 14.2 crore DRs, with conversion of 5 equity shares to 1 DR.

Axis Bank shares closed higher at Rs. 552.90 per share, up by Rs. 17.65 (3.30%) over the previous close.


Source : Thehindubusinessline

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Federal Bank Q4 net up 6% at Rs. 280.53 cr

Federal Bank has posted its highest ever operating profit and net profit, the latter breaching the Rs.1,000 crore landmark for the first time. The net profit grew by 20 per cent YoY from Rs.838.89 crore in FY14 to Rs.1,005.75 crore in FY15.

The bank also registered a 6 per cent growth in the net profit in Q4 at Rs.280.53 crore against Rs.264.69 crore achieved in Q3. The operating profit during the whole year registered 9.96 per cent growth at Rs.1,627.79 crore against Rs.1,480.39 crore.

The total deposits stood at Rs.70,824.99 crore, an increase of 18.57 per cent against the industry growth rate of 12.78 per cent. The board of directors recommended 110 per cent dividend (Rs.2.20 per equity share of Rs.2 face value).

Shyam Srinivasan, Managing Director and CEO said that the bank has crossed an important milestone in its journey to achieve this record figure thanks to the support extended by its employees and clients at a time when the environment is challenging. This gives us the inspiration to double the figure by next year. Besides the focus on asset quality for the last two years has paid off well by improving more than 50 per cent, he said.

The bank’s total business increased by 18.36 per cent to Rs.1,22,109.98 crore. The NRE deposits recorded an impressive growth of 27.71 per cent to Rs.24,230.90 crore from Rs.18,973.56 crore. CASA grew 17.11 per cent to reach Rs.21,549.57 crore as on March 31.

The other income grew 26.58 per cent from Rs.693.85 crore as on March 31, 2014 to Rs.878.31 crore as on March 31 this year.

The net interest income grew 6.81 per cent from Rs.2,228.61 crore to Rs.2,380.41 crore and the net interest margin improved sequentially by 11 basis points from 3.20 per cent to 3.31 per cent.

The bank continued to improve its asset quality in FY15 as the gross NPA de-grew by 2.73 per cent and stood at Rs.1,057.73 crore against Rs.1.087.41 crore. The net NPA stood at Rs.373.27 crore as on March 31. The capital adequacy ratio (CRAR) computed as per Basel III guidelines, stands at comfortable level of 15.46 per cent.

The bank continued to expand its footprint and added 73 branches and 126 ATM’s during the year to take the tally to 1,247 branches and 1,485 ATM’s.


Source : Thehindubusinessline

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IRDA launches motor insurance awareness campaign

The Insurance Regulatory and Development Authority of India (IRDAI) has launched an awareness campaign on motor third-party insurance jointly with Cyberabad Police.

Speaking at the launch of the campaign here on Wednesday, R Raghavan, Chief Executive Officer, Insurance Information Bureau (IIB), an arm of the insurance regulator, said 55 per cent of the vehicles plying on the roads in the country did not have the mandatory motor third-party insurance.

In number terms, this would translate into seven crore vehicles! ``India ranks among the top five countries in the world in the number of accidents which makes insurance vital. Today is just a beginning. We will roll out a national campaign soon,’’ he added.

Lack of the third-party insurance will not only lead to severe social security perils for the victims but also losses to the insurers, he added.

``Cyberabad has been chosen as the first place for launch in view of the proactive approach and high technology adoption of the police here,’’ Raghavan said.

Cyberabad Police Commissioner CV Anand formally launched the campaign, which will involve ‘enactment, enforcement and enablement’ of motor insurance.

The data on uninsured vehicles compiled by IIB has been matched with transport department information and a final list will be shared with the police, who will initiate action on the vehicle owners.

Lack of third-party insurance will attract a Rs. 1,000 fine or three months’ imprisonment or both in line with the Motor Vehicles Act.


Source : Thehindubusinessline

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Dewan Housing Q4 net up 15% at Rs. 162 cr, to pay Rs. 2 final

Dewan Housing Finance Ltd reported a 15 per cent increase in net profit at Rs. 162 crore in the fourth quarter ended March 31, 2015, as against Rs. 141 crore in the year-ago period.

For the FY2015, the housing finance company clocked a 17 per cent rise in net profit at Rs. 621 crore (Rs 529 crore in FY2014).

The board of directors has recommended final dividend to be paid out of the current year profits at Rs. 2 per equity share of Rs. 10 each to equity shareholders.

Housing loans sanctioned during the reporting year were up 27 per cent at Rs. 28,497 crore. It disbursed loans aggregating Rs. 19,822 crore, up 19 per cent over the previous year.


Source : Thehindubusinessline

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KYC norms breach: RBI imposes fine on three banks

Bank of Maharashtra, Dena Bank and Oriental Bank of Commerce have been imposed with a monetary penalty of Rs. 15 crore each by the Reserve Bank of India (RBI) for violation of Know Your Customer (KYC)/ Anti Money Laundering (AML) norms.

“Failure on the part of these banks to take timely remedial measures had aggravated the seriousness of the contraventions and its impact,” RBI said in a release.

The RBI also cautioned eight other banks -- Central Bank of India, Bank of India, Punjab and Sind Bank, Punjab National Bank, State Bank of Bikaner & Jaipur, UCO Bank, Union Bank of India and Vijaya Bank – “to put in place appropriate measures and review them from time to time to ensure strict compliance of KYC requirements in future.

“The penalties have been imposed in exercise of powers vested in the Reserve Bank…taking into account the violations of the instructions/directions/guidelines issued by the Reserve Bank from time to time. This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank and its customers,” the central bank said.

RBI said it received a complaint from a private organisation, on the basis of which a scrutiny of fixed accounts opened in its name in Mumbai based branches of certain public sector banks was undertaken in July 2014.

“With more complaints and involvement of other banks coming to light, a wider thematic review was conducted. In all, 12 branches of 11 Public Sector Banks were covered.

“The scrutiny/thematic review looked into the modus operandi of the alleged frauds involving accounts of certain organisations in these banks, deficiencies/irregularities while opening Fixed Deposits (FD) and extending Overdraft (OD) facility there against them. Besides, the effectiveness of systems and processes in place pertaining to implementation of KYC norms/AML standards in respect of these accounts was also looked into,” the RBI added.

The findings revealed violation of some regulatory guidelines as also other disquieting actions on the part of the banks such as non-adherence to certain KYC norms, monitoring of transactions in customer accounts, RBI’s instructions regarding funds received through Real Time Gross Settlement System (RTGS), opening of FD accounts and granting overdrafts without due diligence or process, weaknesses in the internal control systems, management oversight, use of internal accounts for parking customer funds and involvement of middlemen/intermediaries in opening of accounts as also subsequent operations in those accounts.


Source : Thehindubusinessline

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