Canara Bank net declines 41% to Rs. 478 cr

State-run lender Canara Bank today reported 40.65 per cent decline in net profit at Rs. 478.84 crore in the first quarter ended June 30, 2015 as it parked a higher share towards contingencies for bad loans.

The Bengaluru-headquartered bank’s net profit in the corresponding quarter of the previous fiscal stood at Rs. 806.86 crore, Canara Bank said in a filing to the BSE.

The bank’s share for provisions and contingencies rose over 72 per cent during the first quarter of 2015-16 to Rs. 1,359.73 crore from Rs. 788.14 crore in the same period a year ago.

Total income during the quarter under review rose to Rs. 12,252.64 crore from Rs. 11,728.01 crore a year ago, registering a growth of 4.5 per cent, the filing added.

The bank’s asset quality fell further as gross non-performing assets (NPAs) or bad loans stood at 3.98 per cent of gross advances in the first quarter of 2015-16. It was 2.67 per cent of gross advances in the same period of 2014-15.

Net NPAs too slipped at 2.74 per cent of net advances as against 2.03 per cent a year ago. Also, the bank made a provision of Rs. 151.47 crore as arrears for wage revision.

Besides, the bank’s liability on unhedged foreign currency exposure was at Rs. 85.34 crore during the quarter.

Further in May, Canara Bank had allotted 4 crore equity shares at a premium of Rs. 370.08 to LIC on preferential basis for a total consideration of Rs. 1,520.32 crore.

Canara Bank shares were trading 1.52 per cent down at Rs. 304.70 apiece during afternoon trade on the BSE.


Source : Thehindubusinessline

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Andhra Bank to auction Deccan Chronicle's property in Bengaluru on Sept 10

Andhra Bank will auction Deccan Chronicle Holdings Ltd's (DCHL) immovable property in Bengaluru on September 10, 2015 through e-auction to recover the loan dues.

According to a sale and e-auction notice issued by the bank, DCHL had availed itself of the credit facilities to the tune of about Rs 200 crore from Andhra Bank’s Sultan Bazar Branch and had defaulted to pay.

Andhra Bank had taken possession of two properties of Deccan Chronicle Holdings worth Rs 160 crore located in Chennai and Bengaluru under the provisions of Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (Sarfaesi) Act in 2013.

According to a senior official of the bank, the properties are ‘clean’ and exclusive to Andhra Bank, and the proceeds need not be shared with any other lender.

Andhra Bank is one of the lenders of the company along with ICICI Bank, Canara Bank, Axis Bank, IDBI Bank, Corporation Bank, Indian Overseas Bank and State Bank of Hyderabad. The total loan dues of DCHL stands at Rs 4,000 crore.

State Bank of Hyderabad, Indian Overseas Bank and Canara Bank had filed cases against DCHL independently.

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Source : Thehindubusinessline

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United Bank net drops 21% on higher provisioning

Dragged down by higher provisioning, the Kolkata-based United Bank of India (UBI) has reported an over 21 per cent dip in net profit to Rs. 52 crore for the quarter ended June 30, 2015. Net profit in the corresponding quarter last fiscal stood at Rs. 66 crore.

Provisioning increased by over 16 per cent to Rs. 494 crore for the quarter under review (Rs 425 crore in the year-ago-period). Total income too dipped 3.5 per cent to Rs. 2,897 crore.

Gross non-performing assets per cent improved to 9.57 per cent in the first three months of the current fiscal against 10.49 per cent in the year-ago period. Net NPA per cent too improved to 6.3 per cent (7.23 per cent).


Source : Thehindubusinessline

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HSBC India plans to launch ‘green bonds’ this year

HSBC India is planning to launch ‘green bonds’ this year to enable fund raising for investments in projects with environmental benefits, the private sector bank’s Chairman Naina Lal Kidwai said today.

“HSBC is the world’s fourth largest issuer of green bonds. We are big player. We are working to get this in India.

We are working with key authorities on this issue. Most probably we will launch this year,” Kidwai told reporters on the sidelines of a FICCI event.

She did not divulge the size of green bonds saying that the discussions on the new product are at a nascent stage.

Globally, the green bonds market has tripled to $37 billion in last two years, Kidwai said, adding that India’s market for these bonds is “just the tip of the iceberg” and there is scope to grow.

Some banks like Axis Bank and Yes Bank have come out with such bonds. In February, Yes Bank had raised Rs 1,000 crore against a targeted Rs 500 crore by issuing green infrastructure bonds

Besides green bonds, Kidwai also emphasised on creating ‘Yieldcos’ that enable access to low cost liquid and generate predicable cash flows by bundling up renewable assets with long-term power purchase agreements.

“For Yieldcos, we need large amount of support from regulatory SEBI. We hope it clears the way for this product soon,” she added.


Source : Thehindubusinessline

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IDBI Bank opens first self service mini branch kiosk

IDBI Bank has launched its first self service Mini Branch Kiosk at its Cuffe Parade, Mumbai Branch.

The kiosk will address the customer’s request of personalised cheque leaves dispensation and issue of Demand Draft & Pay Order on 24X7 basis. It also has the functionalities of ATM, the bank said in a statement.

Speaking on the occasion, B K Batra, DMD, indicated that the bank will install more such 24x7 banking facilities so that its customer can do banking at their own convenience and time.


Source : Thehindubusinessline

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