Corporation Bank Q1 profit declines 12%

An increase in provisions for non-performing assets (NPAs) brought down Corporation Bank’s net profit by 11.75 per cent during the first quarter of 2015-16.

Addressing presspersons here on Friday, SR Bansal, Chairman and Managing Director, said the bank registered a net profit of Rs.204.26 crore in the quarter againstRs.231.47 crore in the corresponding quarter of the previous fiscal.

The net provisions for NPAs stood at Rs.604.23 crore against Rs.466.08 crore, an increase of 29.64 per cent.

Bansal said that the provision coverage ratio with respect to gross NPA increased to 57.17 per cent as against 52.19 per cent earlier.

The gross and net NPAs stood at 5.43 per cent (3.96 per cent) and 3.55 per cent (2.71 per cent) respectively.

The net interest income of the bank increased to Rs.1,080.72 crore (Rs.944.24 crore), and non-interest income to Rs.401.83 crore (Rs.361.60 crore) during the period.

“The focus is on making the fundamentals of the bank strong,” Bansal said.

On the share of CASA (current account savings account) deposit to the total deposits, Bansal said it stood at 18.92 per cent.

The bank is targeting a CASA share of 25 per cent by the end of the current financial year, he said.

Bulk deposits

Stating that the bank has taken steps to bring down bulk deposits, Bansal said the share of such deposits have come down from 54 per cent in June 2014 to 51 per cent in March 2015. At the end of June 2015, it came down to 49.5 per cent, he said.

He said advances to large industries were down 2.12 per cent. Advances to agriculture and MSME (micro, small and medium enterprises) recorded a growth of 42.41 per cent and 4.40 per cent, respectively. Corporation Bank shares closed at Rs.54.05, up 0.46 per cent from the previous close, on the BSE on Friday.


Source : Thehindubusinessline

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Jan Dhan: number of zero-balance a/cs has come down

The percentage of zero-balance accounts opened under the Pradhan Mantri Jan Dhan Yojana (PMJDY) is coming down in Corporation Bank, according to SR Bansal, Chairman and Managing Director of the bank.

Addressing presspersons in Mangaluru on Friday, he said that the percentage of zero balance accounts has come down from 31.89 per cent in the fourth quarter of 2014-15 to 27.76 per cent in the first quarter of 2015-16.

The bank had opened 22,99,720 accounts under the scheme. The balance in these accounts stood at Rs.535.78 crore as on June 30.

He said the average balance in the non-zero balance accounts is Rs.3,225 per account as against the national average of Rs.2,403.

Asked about the reason for this, Bansal said the bank had done the assessment of credit at the time of the survey for implementing PMJDY. This helped the bank to meet the credit needs of PMJDY account holders, thus bringing down the percentage of zero balance accounts.

Corporation Bank was allotted 2,291 villages in rural areas and 951 wards in urban areas across 23 States under the scheme.

Of the 22,99,720 accounts opened under PMJDY, RuPay card has been issued to 98.74 per cent of the accounts. Passbooks have been issued to 89.66 per cent of accounts.

He said 59.70 per cent of the accounts opened under PMJDY have been seeded with Aadhaar numbers.


Source : Thehindubusinessline

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IndusInd Bank allots shares worth Rs. 753 crore

Private lender IndusInd Bank has approved an allotment of nearly 88 lakh equity shares valued at around Rs. 753 crore to IndusInd International Holdings Ltd and others.

The Finance Committee of the bank approved the allotment of equity shares at a meeting today, IndusInd Bank said in a BSE filing.

“IndusInd Bank...today approved allotment of 87,81,360 equity shares of face value of Rs. 10 each to IndusInd International Holdings Ltd and its subsidiary, Induslnd Ltd, promoters of the bank, on a preferential basis,” the statement said.

The shares have been allotted at an offer price of Rs. 857.20 per equity share, aggregating to Rs. 752,73,81,792, it said.

As on June 30, 2015, IndusInd Bank had 811 branches and 1,543 ATMs spread across the country

The bank also has representative offices in London, Dubai and Abu Dhabi.

Shares of the bank traded at Rs. 952 a piece on BSE, down 0.09 per cent from the previous close.


Source : Thehindubusinessline

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IRDAI to notify corporate agency norms in 3 weeks

The Insurance Regulatory and Development Authority of India (IRDAI) will notify the final corporate agency norms under bancassurance in three weeks from now, according to its Chairman T S Vijayan.

Speaking to newspersons after formally launching the sale of insurance policies of HDFC Life through common service centres here on Thursday, he said the gazette notification will give some time for transition and the new norms will be effective April 1, 2016.

In its draft norms issued earlier, the regulator has proposed to allow banks to tie up with three insurers each in life and non-life for corporate agency. As of now, banks are permitted to function as a corporate agency for only one insurer each in life and non-life sectors.

On the growth of insurance industry, the Chairman said all would depend on the growth in the gross domestic product. "Around 15 per cent growth will be good for FY16,’’ he added when asked on the projections for this year.


Source : Thehindubusinessline

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ICICI Bank eyes Rs. 3,000 cr from dollar bond issue

ICICI Bank, India’s largest private sector bank, will raise up to $500 million (over Rs. 3,000 crore) by selling five-year dollar bonds to overseas investors.

The issue opened earlier on Wednesday and will be closing by late evening, after which the final pricing will be known.

The initial pricing guidance for the issue is 180 basis points above the five-year US treasury yield. On Tuesday, five-year US treasury notes closed at a yield of 1.625 per cent. One basis point is 0.01 percentage point.

This year, it is ICICI Bank’s first dollar bond and it has previously raised $500 million in September last year, tapping the same issue again in December by $200 million, said a person familiar with the development.

It is part of the bank’s $7.5 billion MTN (medium-term note) programme and the issue will be originated from the bank’s Dubai branch.

“This is an opportunistic issue. The bank does not need the money urgently but the market is constructive and the pricing is better,” the person added.

Hongkong and Shanghai Banking Corp (HSBC), Barclays, JP Morgan Chase and Co, Bank of America-Merrill Lynch and Standard Chartered are the bankers to the issue.


Source : Thehindubusinessline

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