HDFC Bank to scale up branch count in Gujarat

Gujarat is a focused state for HDFC Bank and it will open 250 branches in the state over the next three years, taking the total tally to 465 branches, the bank’s Managing Director, Aditya Puri said today.

“The state grew at the rate of 10 per cent. HDFC believes that Gujarat will grow at the same rates. We have 215 branches in the state and we plan to open 250 more branches here in the next three years,” Puri said here at the sixth edition of ’Vibrant Gujarat’.

“Gujarat is a focused state for HDFC Bank... Our credit-deposit ratio in the state is at 105 per cent,” he added.

Defying the doomsayers on the India’s economic prospect in the wake of widening gap in the fiscal deficit, Puri showed optimism of the Indian prospect in the medium to long term.

“India’s medium to long term prospect remains intact,” Puri said.

His comments come against the backdrop of a slowdown in the country’s economy and mounting concerns over high fiscal and current account deficits.

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ItzCash ties up with HDFC Bank, Visa

ItzCash Card, a multi-service prepaid card company of the Essel Group, has tied up with HDFC Bank and Visa to launch corporate gift cards. The HDFC Bank ItzCash Visa Gift Card offers a wide range of products and can be used at over a million outlets where Visa cards are accepted. Employers can use the card to reward staff members, customers or pay commissions. The card can be purchased for any value. It comes with a range of security features designed to protect cardholders from unauthorised purchases if their card is stolen. The gift card, which is valid for one year, cannot be reloaded by paying at bank branches and cannot be used in ATMs for withdrawal of cash. The card can be used for purchases at shops and online transactions over the Internet.

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Sidbi ties up with Franchising Association

Small Industries Development Bank of India (SIDBI) today announced it has tied up with the Franchising Association of India to work together for entrepreneurship growth and development of Micro, Small and Medium Enterprises (MSME).

SIDBI, the financial institution for promotion, financing and development of MSME sector, would provide financial assistance under its Direct Credit Schemes, after initial screening to the Franchising Association of India, an industry association representing franchisees, franchisors and service providers to the sector, SIDBI said in a statement.

A proper mechanism would be put in place to ensure that the right kind of proposals from its members is referred to SIDBI based on the product features, the statement said.

The services sector contributes more than 60 per cent to the national GDP and all eligible proposals would be covered under Credit Guarantee Fund Trust for Micro and Small Enterprises Scheme, said S. Muhnot, Chairman and Managing Director, SIDBI.

Recently, SIDBI had launched a Web site ‘smallB.in’ to encourage individuals to look at the enterprise-based business opportunities and simplify the process of starting a business in India.

beena.parmar@thehindu.co.in

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Oriental Bank may rejig loans worth Rs 2,500 cr

Oriental Bank of Commerce is likely to restructure loans worth Rs 2,500 crore in the next few quarters. The bank has a restructuring book of close to Rs 10,500 crore.

According to Chairman and Managing Director S.L. Bansal, the bank is in the process of restructuring its Rs 450-crore advances to Moser Baer.

The restructuring of advances is likely to drag down margins.

“We have to make additional provisioning of up to 0.75 per cent on restructured accounts, this will put pressure on bottom line,” Bansal said at a press meet on the occasion of a branch inauguration here on Friday. The bank’s net interest margin was close to 2.79 per cent in December and might inch up to 2.9 per cent by the end of this fiscal, he said.

Exposure to Kingfisher

The bank’s Rs 55-crore exposure to Kingfisher Airlines turned into a non-performing asset in the third (October-December) quarter of this fiscal.

“We hope to recover the money by the end of this month,” Bansal said, refusing to explain how the amount will be recovered.

The bank has close to Rs 5,500-crore worth exposure to power-distribution companies (discoms).

“We have already received indications from the Haryana Government for restructuring.

We are working on it. This apart, some restructuring proposals might also come from Punjab, Rajasthan and Uttar Pradesh Governments,” he said.

According to Bansal, power generation companies are also under pressure as discoms are not in a position to pay them.

“This could pose some challenge for banks,” he pointed out.

shobha.roy@thehindu.co.in

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Federal Bank launches online puja offering services

Federal Bank has launched ‘online religious offering services bouquet’ in association with the Sree Padmanabhaswami Temple. This enables the devotee to make offerings/pujas without visiting the place. Any credit or debit card or the Federal Bank net banking service (FedNet) may be used for the purpose.

Federal Bank also plans to roll out the service through its merchant-payment system soon. The service can be accessed through following addresses -

www.sreepadmanabhaswamytemple.org/pooja.aspx

and

www.federalbank.co.in/General_ProductandServices_OnlineReligiousOfferings.aspx

Shyam Srinivasan, Managing Director and CEO of the bank, launched the facility here on Thursday. C. P. Sasidharan, Deputy General Manager and zonal head, presided.

V. K. Harikumar, executive officer, Sree Padmanabha Swamy Temple Trust and other office-bearers of the temple administration were present.

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