PwC to advise Lord Krishna Bank on business strategy
Mumbai: The Kochi-based old generation private sector Lord Krishna Bank plans to become a fast growing nationwide bank over the next five years and has sought the services of consultancy firm, PricewaterhouseCoopers (PwC), on its business focus, strategy and growth model. PwC will also advise on management information system, business restructuring, human resource management and development, risk management practices and information technology related issues, the bank’s managing director and chief executive officer RM Nayak,said. Nayak added that the report is expected to be ready by next month and will be put up before the board of directors for discussions.
Back to News Review index page  

CSB goes for bond issue to shore up capital base
Kochi: With the over eight-year long share transfer issue yet to be resolved, the Thrissur-based Catholic Syrian Bank (CSB) is taking the bond route again to shore up its capital base. Bank chairman NR Achan said that the board has decided to go in for a Tier-II bond issue for Rs 30 crore next month. With this, CSB’s capital adequacy ratio (CAR), which stood at 10.53 per cent at the end of last fiscal, is expected to cross 11.5 per cent. Achan refused to comment on the delay in settling the share transfer issue which is now before the court and only hoped the matter would be resolved soon. Any relief from the court would help CSB go ahead with its future plans in a big way, he said, adding that the bank was in no way party to the case.
Back to News Review index page  

Karur Vysya net up 15 per cent in ’02-03
Chennai: Karur Vysya Bank Ltd (KVB) has reported a 15.17 per cent growth in its net profit during the year ended March 2003. Net profit stood at Rs 124.97 crore compared to Rs 108.51 crore the previous year. Total income has gone up to Rs 648.07 crore from Rs 587.01 crore in 2001-02. KVB has recommended a dividend of 70 per cent, subject to RBI approval, for the year 2002-03. Total deposits have increased by 23 per cent to Rs 5,121.92 crore, while advances grew by 35.95 per cent to Rs 3,344.40 crore. Net non performing assets have come down to 4.20 per cent from 6.33 per cent the previous year. Capital adequacy ratio stands at 17.01 per cent.
Back to News Review index page  

PNB records 50 per cent rise in ’02-03 net
New Delhi: Punjab National Bank (PNB) has clocked a growth of 50 per cent in its net profit in 2002-03 to Rs 842.2 crore. It has also opted for returning Rs 130 crore capital to the government, thereby bringing down its stake to 60 per cent. The process will however take some time, PNB chairman and managing director SS Kohli said at a press conference on Monday. Earlier, the board had adopted the audited accounts for the last fiscal, and recommended a dividend of 35 per cent. The present equity held by the government is Rs 212 crore of the total paid-up capital of Rs 265 crore. The proposal needs approval from PNB’s annual general meeting and the Reserve Bank, he added. Operating profit rose 25.4 per cent to Rs 4,033 crore against Rs 3,216 crore the previous year. On the mutual fund venture, he said PNB proposes to sign an agreement with Prinicpal Group in a fortnight’s time for an asset management company in which it would hold 30 per cent stake. Net profit rose to Rs 842.2 crore in 2002-03 compared to Rs 562.39 crore the previous year. Total business grew 17.8 per cent to Rs 1,16,044 crore as against Rs 98,492 crore in 2001-02. Capital adequacy ratio stood at 12.02 per cent, up from 10.7 per cent in 2001-02. Net non-performing assets (NPA) swelled to Rs 1,817 crore, or 5.3 per cent of net advances. Excluding the effects of its merger with Nedungadi Bank, PNB would have registered a net NPA ratio of 3.5 per cent.
Back to News Review index page  

Birla Sun Life targets Rs 450-cr premium income
New Delhi: Birla Sun Life Insurance Company is targeting a premium income of about Rs 450 crore this fiscal, a growth rate of 165 per cent over the previous year. It is also planning to achieve this by expanding its presence to 11 more cities and beefing up its distribution strength. "The company plans to sell 1,80,000 policies in this year with corresponding annualised new business premium of Rs 450 crore, a growth of over 165 per cent," Nani B. Javeri, CEO of the company, said. In 2003-03 premium income stood at Rs 170 crore. The company, which claims to be the second among the new players, is expecting to earn a premium income of Rs 190 crore through its direct selling force, Rs 185 crore through the Birla group companies and Rs 75 crore through alternative channels like the tie-ups with banks. It also hopes to be the first one to break even.
Back to News Review index page  

Co-op banks oppose regulatory Bill
Viskhapatnam: The Andhra Pradesh Urban and Town Co-operative Banks' Association has opposed the State Government's move to introduce a separate Bill in the next session of Assembly to regulate the banks, in the wake of a series of urban bank failures in Hyderabad, according to M. Anjaneyulu, President of the association. At a press meet here on Monday, he said the move of the State Government was an ill-advised one and, if the Government really wanted to regulate the banks, it could have included a separate chapter in the existing Co-operative Act instead of contemplating a separate piece of legislation.
Back to News Review index page  

Bank of Rajasthan Q4 net up 77 pc
Mumbai: Lower cost of funds and substantial growth in retail deposits have helped Bank of Rajasthan Ltd record a 77-per cent jump in net profit for the quarter ended March 31, 2003, at Rs 21.78 crore compared to Rs 12.28 crore in the corresponding period the previous year. The board of directors has recommended a 20 per cent dividend for the year 2002-03. Parvin Kumar Tayal, chairman, BoR, said, "the bank has done well in every aspect. The focus has been on mobilising retail deposits and there has been a growth of 35 per cent in this area during the fiscal". Tayal said that there would be no more public issues or rights issues by the bank in the near future. Interest earned by BoR increased to Rs 125.82 crore (Rs 110.42 crore). Other income decreased to Rs 37.70 crore (Rs 52.36 crore). Total expenditure of the bank was at Rs 120.83 crore (Rs 121.62 crore). For the financial year ended March 31, 2003, BoR recorded a net profit of Rs 68.42 crore (Rs 40.31 crore). Gross advances grew by 9.95 per cent to Rs 2,342.03 crore for the fiscal ended March 31, 2003, compared to Rs 2,130.10 crore in the corresponding period the previous year.
Back to News Review index page  

UTI Bank opens Nellore branch
Hyderabad: UTI Bank, one of the leading new generation private sector banks, has entered Nellore with the bank's hairman and managing director, Dr P.J. Nayak, inaugurating the bank branch at GT Road on Monday. Speaking on the occasion, Dr Nayak said, "This marks another step towards the extensive customer banking focus that we are providing across the country and reinforces our commitment to bring superior banking services, marked by convenience and closeness to customers." According to a press release issued by UTI Bank, it currently has a network of 147 branches, 53 extension counters and 853 automated teller machines (ATMs) across 80 cities and towns in the country. For the fiscal year ended March 31, 2003, the bank registered a growth of 43 per cent in net profit at Rs 192.18 crore as against Rs 134.14 crore posted in the previous fiscal year.
Back to News Review index page  

Insurance cover for STPs costlier
Bangalore: General insurance companies have hiked the insurance premiums for software technology parks (STPs) after reclassifying the risks. According to sources, the new base tariffs applicable for STPs for fire risk is Rs 1.25 for every Rs 1,000 of sum assured (referred to in insurance jargon as per mille). Until last month, STPs were classified as office complexes, where the effective tariffs were only 50 paise. They have now been reclassified as manufacturing enterprises by the Tariff Advisory Committee of the Insurance Regulatory and Development Authority (IRDA). The premium paid by the STPs, traditionally a low claims sector, was in the region of about 90 paise per mille, which was arrived at after inclusion of seismic risks.
Back to News Review index page