23 october 2003
allots rs 3,000 crore for infrastructure projects
kolkata: bank of baroda has allotted around rs
3,000 crore for investment in infrastructure projects.
the bank sees more such allotments for infrastructure
in future, said p.s. shenoy, cmd, while addressing members
of merchants chamber of commerce on wednesday. the bank
chief also sees the presence of many positive "macro
factors" - the government's focus on infrastructure
development, large foreign exchange reserves and expectations
of gdp growth. "there is substantial liquidity in
the system at this juncture and there is pressure on interest
rates to move southwards," shenoy said. he, however,
observed that credit offtake was still quite slow.
banking system was warming up to the realisation that
there may be a convergence of rates prevalent in domestic
and international markets. bank of baroda was also rolling
out a major overseas expansion, mr shenoy said, referring
to its plans for countries such as china, new zealand
and singapore, where representative offices would be set
up. further, there will be a new subsidiary in tanzania,
which will strengthen the bank's presence in african nations.
vysya to foray into pension market
visakhapatnam: ing vysya life insurance wants to
enter and develop the pension market in the country on
a substantial scale, once the regulations are finalised.
a separate company may also be floated, if necessary,
according to yvo metzelaar, managing director and ceo.
speaking to newspersons on wednesday, he said that the
pension market was in a very nascent stage in india, but
in 27 countries across the world the ing group was a major
player in the pension segment.
company had so far covered 60,000 lives and earned premium
income of rs 43 crore. "we are concentrating on providing
quality service with a range of eight products and several
add-on services. we will attempt to tap the rural markets
in coastal andhra pradesh,'' he said. india has succeeded
in opening up the insurance sector without too many hassles
and the insurance regulatory authority was functioning
well on the whole."however, the distribution channels
have to be streamlined and there are too many restrictive
clauses on commissions for comfort,'' he said. lic would
continue to be the dominant player in the market, but
ing vysya would strive to capture at least 15 per cent
of the total market held by private life insurers, he
bank q2 net up 125%
chennai: idbi bank reported a 125-per cent growth
in net profit at rs 36.19 crore for the quarter ended
september 30, 2003. the profits were driven by a 20-per
cent growth in interest income at rs 174.66 crore and
a 109-per cent growth in other income at rs 65.5 crore
for this quarter. the growth in profits came despite a
jump in loan loss provisions of rs 20 crore in this quarter
compared to rs 5 crore in the corresponding quarter of
the previous year. the bank maintained its net interest
margin at 3.1 per cent. retail loans, mainly housing,
proved to be the main driver for asset growth. the housing
loan portfolio of the bank grew by nearly rs 450 crore
in this quarter to touch a level of rs 2,143 crore. the
bank's deposits grew by rs 421 crore during the quarter
to rs 6,657 crore as at the end of september 2003. the
bank's capital adequacy ratio at 8.22 per cent continued
to be below the regulatory minimum of 9 per cent. idbi
bank has a rights issue that is on currently to raise
rs 154 crore to address the issue.
indian bank lifeline for patients
coimbatore: south indian bank has launched a financial
assistance programme for medical treatment - sib lifeline.
the scheme covers all major ailments and surgical corrections,
v.a. paul, regional head, said,the bank had signed an
mou with the management of certain hospitalsthis would
not prevent the patient from availing themselves of loan
from the bank if they chose some other hospital. "in
the unfortunate event of the patient dying within seven
days of the surgery, the loan amount disbursed in such
cases would be re-imbursed to the bank by united india,
as per the special arrangement concluded by the bank for
this scheme,." he said.
of rajasthan q2 profit rises 125%
mumbai: with a jump in other income, private sector
and lower cost of funds, bank of rajasthan has posted
a 125 per cent growth in its net profit for the second
quarter ended september 30, 2003 at rs 34.91 crore, up
from rs 15.53 crore for the corresponding period of the
income went up 63 per cent to rs 57.07 crore (rs 34.88
crore). total income increased to rs 177.38 crore (rs
149.31 crore) and total expenditure increased to rs 123.13
crore (rs 108.83 crore). said the bank's chairman, p.k.
tayal, at a press conference here, "the bank has
seen growth in all areas and we have been able to reduce
our cost of deposits to 5.72 per cent from 6.83 per cent
in the corresponding period of the previous year.''the
bank, which has adopted the 90-day norm in provisioning
but not in npa recognition, has seen its net npas decrease
a tad to 8 per cent which works out to rs 158 crore. gross
npas increased to 14 per cent and works out to rs 301
crore. as on june 2003, the net npas were rs 165 crore
while gross npas was lower at rs 293 crore.
federal bank opens branch in thiruvananthapuram
thiruvananthapuram: federal bank will open 23 more
branches across the country during this financial year,
which will help it achieve the goal of becoming a fully
computerised and networked banking behemoth with 450 branches.
this was stated here by k.p. padmakumar, chairman, while
delivering the presidential address at the inaugural ceremony
of the 427th branch at cotton hill here. according to
him, federal bank has already implemented world-class
banking services such as anywhere banking and internet
banking. it has also distinguished itself by being able
to open the maximum number of rural atms centres in the
state. it has always strove to reach the benefits of technology
to the rural masses. the fully computerised branch at
cotton hill was inaugurated by k.p. hormese tharakan,
director-general of police, kerala.
signs agreement with navy
new delhi: centurion bank ltd has tied up with
the india navy to disburse salary on behalf of the naval
staff across the country. in addition, centurion would
also offer several value-added services in toto to the
naval staff as part of the understanding.
kotak group not to seek strategic investor now
mumbai: kotak mahindra bank has registered a 67
per cent growth in net profit for the second quarter ended
september 30, 2003 at rs 19.84 crore, up from rs 11.88
crore in the corresponding period of the previous year.
these figures are not strictly comparable since the nbfc
was converted into a bank in march 2003. the new bank
will focus on lending as the thrust area and foresees
40 per cent growth in disbursements by the year-end. the
net profit of the kotak group - kotak mahindra capital
co, kotak securities, kotak mahindra primus, kotak mahindra
amc & trustee, om kotak mahindra - for the second
quarter is at rs 38.94 crore (rs 21.77 crore). the bank
has collected fresh deposits of rs 650 crore in the first
half year, 90 per cent of which are term deposits.
from this, it also has liabilities such as rs 150 crore
of fixed deposits transferred from the nbfc, rs 350 crore
of certificates of deposits and so on. the bank has advances
of rs 1,550 crore, 85 per cent of which is retail. the
break up of advances is as follows: commercial vehicle
finance rs 875 crore, personal loans rs 238 crore, home
loans rs 25 crore, corporate loans rs 236 crore and sme
and miscellaneous rs 175 crore. the bank with a networth
of rs 580 crore can double its asset base without raising
fresh capital and has a capital adequacy as high as 19.55
per cent, said mr uday kotak, executive vice-chairman
& md, kotak mahindra bank at a press conference here
today. the kotak group, which hold about 63 per cent stake
in the bank is not looking for a strategic investor at
present. the bank has seen significant fii interest in
its stock; fii holding increased to 14.8 per cent from
3.4 per cent in march 2003.
22 october 2003
q2 net up 75% to rs 154.62 crore
new delhi: indian overseas bank (iob) has recorded
a net profit of rs 154.62 crore for the quarter ended
september 30, 2003, a 75 per cent growth over rs 87.97
crore achieved during the previous corresponding period.
the second quarter's operating profit stood at rs 350
crore as against rs 201 crore previously. for the half-year,
iob's net profit has shown a 82 per cent rise at rs 293
crore over the previous year's rs 160.93 crore. the operating
profit for the half-year stood at rs 622.61 crore (rs
at a press conference here on tuesday, the chairman and
managing director, iob, s.c. gupta, said the bank's total
business crossed rs 58,000 crore during the half-year
ended september 30. total deposits increased from rs 36,699
crore on march 2003 to rs 38,809 crore on september 30.
advances grew from rs 18,431 crore to rs 19,804 crore.
gupta pointed out that during the six-month period, the
bank registered a growth of 8.88 per cent in domestic
non-food credit compared to 2.70 per cent registered by
the banking system.
bank to finance hero cycles, delaval products
mangalore: corporation bank has signed two mous
with hero cycles ltd and delaval pvt ltd for financing
their products to the customers. a press release by the
deputy general manager, b.r. bhat, said here on tuesday
that the mous make corporation bank the "favoured
bank" of hero cycles and delaval for financing their
would be financed to farmers, labourers, traders, businessmen,
salaried persons, self-help groups and ngos such as farmers'
clubs under the `corp cycle loan yojana'. the bank's general
manager, a. mohan rao, signed both the mous on behalf
of the bank. bharat goel, associate vice-president (finance)
and company secretary, hero cycles, and hemant ogale,
managing director of delaval, signed mous on behalf of
their respective companies.
tata aig to offer financial planning course for agents
mumbai: tata aig life insurance company ltd has
signed a memorandum of understanding (mou) with the association
of financial planners (afp), india, to offer a certificate
financial planning course to all those who are part of
the insurers' distribution channels.the association of
financial planners, india, is affiliated to the financial
planning standards board (fpsb), inc of the us, said a
sbi signs agreement with new india assurance
mumbai: state bank of india and new india assurance
co ltd have tied up for the distribution of the latter's
general insurance policies through the bank's branch network.
as per a memorandum of understanding signed by the two
parties, sbi will become the corporate agent of new india
after completing the formalities prescribed by irda and
will sell the companies policies through 9,000 of its
branches, said a press release.
the tie-up will enable sbi to leverage its branch network
general insurance products while new india can gain access
to sbi's huge network and customer base, it said.
bob opens first offshore banking unit in mumbai
mumbai: bank of baroda has set up its first offshore
banking unit (obu) at seepz here. this takes the total
number of its obus to three. the new obu would be primarily
engaged in wholesale foreign currency resource raising
and deployment with a focus on the requirements of units
located at the special economic zones (sezs), said a senior
branch will provide foreign currency finance to 100 per
cent eou units located in the zones, indian corporates
and businesses at internationally competitive rates.
21 october 2003
amro enters home loans with 'super saver' offer
new delhi: abn amro has entered the highly competitive
housing loan segment with the launch of its super saver
loan package. under the scheme, the bank will offer an
interest rate of 6 per cent in the first year and 6.5
per cent in the second year and from the third year it
will offer loans at the then prevailing floating rate.
according to the executive vice-president, romesh sobti,
loans between rs 1 lakh to rs 1 crore would be offered.
the bank is targeting at least 10 per cent of the rs 50,000
crore home loan segment. under the super saver scheme,
the equated monthly instalment (emi) is about rs 717 per
lakh for a 20-year loan. the scheme will be available
till december 31, 2003.
bank's move to enter the housing loan segment with such
low rates is expected to trigger another rate war among
banks and housing finance companies. "we are targeting
our existing clients and consumers in nine major cities.
we will extend it to 25-30 cities in two-three years,"
sobti said. apart from the promotional scheme, sobti said
the bank would offer housing loans at floating rate of
7.75 per cent and a fixed rate of 8.25 per cent. the bank
will re-price its floating loans every six months, while
fixed rates would be revised every three years. "we
want to be amongst the top five players with over 10 per
cent market share," nitin chopra, head of consumer
bank has tied up with icici lombard general insurance
to provide property insurance to home loan clients. it
would also offer its smart gold credit card to the borrowers
free of joining fees and concessional rates on personal
loans and auto loans. abn amro will also offer a refinance
facility, which would enable the bank to take over the
entire loan outstanding that a customer has with another
bank or housing finance provider.
overseas net up 50 pc
chennai: bharat overseas bank ltd has reported
a net profit of rs 13.54 crore for the first half of the
current year, 50 per cent higher than rs 9.02 crore it
made in the same period last year.in a press release,
the bank said that its operating profit went up to rs
29.63 crore, from rs 16.39 crore earlier. interest spread
also increased 2.23 per cent, as on september 30, 2003,
compared to 2.82 per cent on the same date last year.
"the capital adequacy of the bank is comfortably
placed at 13.24 per cent," the release says.
bank cuts rate for shgs
hyderabad: andhra bank has decided to reduce the
rate of interest by 50 basis points to 8.5 per cent from
the existing level of 9 per cent in its efforts to encourage
the self help groups (shgs) movement across the country,
especially in view of the good recovery performance under
shg-bank linkage programme. the new rate would come into
effect from november 1, the bank said in a press release.
since inception of shg-bank linkage programme, the bankhas
financed 91,434 groups with rs 222.62 crore, said the
bank general manager, a.l. nageswara rao.
thiruvananthapuram: the operating profit of state
bank of travancore (sbt) at the end of the first half-year
of the current fiscal went up 116 per cent over the corresponding
period in the previous year. the operating profit stood
at rs 391.98 crore as against rs 181.82 crore at the end
of september 2002, according to a statement from the bank.
the net profit reached rs 115.45 crore (rs 58.96 crore),
an increase of 96 per cent. the bank's other income rose
168.38 per cent to rs 282.34 crore (rs 105.20 crore).
the (non- annulaised) earnings per share worked out to
rs 230.90 (rs 117.93). the net interest income was at
rs. 316.17 crore.
syndicate bank h1 net up 51 pc
manipal: syndicate bank has announced 50.79 per
cent increase in the net profit during the first half
of the current fiscal ended september 2003; profit for
the period stood at rs 216.45 crore as against rs 143.54
crore for the corresponding period of the previous year.
the operating profit for the half-year ended september
30, 2003 has recorded an increase of 67.85 per cent over
the corresponding period the previous year. it recorded
an operating profit of rs 442.91 crore for the half-year
ended september 30, 2003, whereas it was rs 265.80 crore
for the corresponding period the previous year. addressing
presspersons in manipal of udupi district on monday, michael
bastian, chairman and managing director (cmd), said the
board of the bank had taken a decision to pay interim
dividend at 10 per cent subject to approval of the reserve
bank of india.
attributed the increase in the profit to the rs 5,800
crore business conducted in the last year, and added that
reduced cost of deposits had substantially added to the
profit. the interest margin of the bank is one of the
highest among the peer group banks even in the lower interest
regime. he said that the global business of the bank reached
rs 49,443 crore at the end of september 2003. the domestic
deposits have increased by 12.53 per cent and the domestic
advanced by 15.84 per cent over september 2002. bastian
said the capital adequacy ratio stood at 12.4 per cent
against 11.03 per cent as on march 2003. he said the net
npa had come down to 4.89 per cent from 5.64 per cent
on september 30, 2002.
bank q2 net rises to rs 170 cr
mumbai: a sixty-five per cent jump in non-interest
income has helped union bank of india to earn 82.80 per
cent growth in net profit in the second quarter of this
fiscal. the net profit has zoomed to rs 170 crore for
the second quarter ended september 30, as compared to
rs 93 crore in the same period the previous year. non-interest
income of the bank constitutes commission earnings, treasury
profits, forex earnings and other service charges, according
to v. leeladhar, chairman and managing director, union
bank of india. the bank's operating profit grew to rs
329 crore during this period (rs 280 crore) interest income
has risen to rs 1,082 crore (rs 1,056 crore). total expenditure
of the bank was at rs 956 crore (rs 899 crore). for the
half year ended september 30, 2003, the bank's net profit
grew by 57 per cent to touch rs 325.75 crore as compared
to rs 207.27 crore in the previous year period. treasury
profits for the half-year were at rs 138 crore (rs 51
crore). deposits have touched rs 46,761 crore as on september
30, 2003 (rs 41,760). advances have grown to rs 27,653
crore (rs 23,695 crore).
priority sector advances of the bank at the end of the
half-year stood at rs 11,990 crore (rs 9,270 crore). retail
advances grew to rs 5,564 crore (rs 4,151 crore). the
ratio of net npa to net advances has improved to 4.39
per cent (5.74 per cent). cash recoveries in the first
half were at rs 361 crore. provisions and contingencies
during the half year, were at rs 292.74 crore (rs 293.23
crore). the bank had already started implementing the
90-day norm for npas prescribed by the rbi, from the first
quarter of this financial year, said mr leeladhar.capital
adequacy ratio of the bank has risen to 13.34 per cent
in september 2003, as compared to 11.44 per cent in september
20 october 2003
opens specialised housing finance branch
bangalore: state bank of india (sbi) has opened
a specialised housing finance branch here, the second
such in india, to cater to the tech-savvy city's growing
need for housing finance.
the branch can cater to loan requests from all parts of
the city and started off with loans sanctioned to six
people, totalling more than rs 100 lakh. the branch also
enables anywhere, anytime banking.
bank opens branch in pettah
thiruvananthapuram: union minister of state for
defence and parliamentary affairs o rajagopal inaugurated
the pettah branch of canara bank, its 242nd in the kerala
division. an atm facility will be set up soon at the new
branch, which is fully computerised.
the branch will specialise in housing and home improvement
loans, finance for four- and two-wheelers and customised
products for traders and doctors, apart from other retail
lending schemes. the inaugural ceremony was attended by
b k shekhar, director, canara bank; g umesh shenoy, general
manager (circle office), thiruvananthapuram; k gopalakrishnan,
deputy general manager; m v shenoy, assistant general
manager (regional office), kollam; and g ravindran, assistant
general manager (circle office).
list of reports on