IDBI caps declares 100 per cent dividend
Mumbai: IDBI Capital Market Services Ltd (ICMS), a wholly-owned primary dealing subsidiary of the Industrial Development Bank of India (IDBI), has announced a 100 per cent dividend for the latest fiscal, though it has posted a two per cent lower lower net profit for the fiscal 2002-03 at Rs 228.14 crore. It paid a dividend of 25 per cent the previous year. ICMS has also retained its leadership position in the industry by posting a 72.34 per cent rise in its turnover for the fiscal at Rs 2,52,644 crore.
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Centre asks RBI, Sebi to expedite probe into SHCIL
New Delhi: Government has asked RBI, Sebi and IDBI to expeditiously decide on their investigation reports on the role of Stock Holding Corporation of India (SHCIL) in the payorder scam in Calcutta Stock Exchange. “The matter (alleged irregularities of SHCIL) is under the consideration of IDBI, RBI and SEBI,” official sources said, adding that these three organisations had come out with their investigation reports and had been asked to take action expeditiously. The speeding up of the case comes after the joint parliamentary committee, that went into the stock scam of 2001, had highlighted the need to carry out follow up action by the RBI, SEBI and IDBI to punish the wrong-doers. IDBI, being one of the promoters of SHCIL, had decided to carry out a special investigation into SHCIL’s role so as to fix the responsibility and punish the guilty and had submitted the report to the committee.
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KRC plans Rs 370-crore bond issue
Mumbai: The state-run Konkan Railway Corporation (KRC) proposes to raise Rs 370 crore through a privately placed bond issue. The bond issue, likely to be floated next week, will have a coupon rate ranging from 6 to 6.75 per cent. Merchant banking sources told that the proceeds would be used by KRC to meet operational expenses. KRC has been looking at a coupon rate of 6 to 6.20 per cent for five year tenor, 6.25 per cent to 6.40 per cent for 10 year tenor and 6.40 per cent to 6.75 per cent for 12 year tenor. KRC had raised around Rs 114 crore early this year through a privately placed bond issue at the coupon rate of 6.35 to 6.85 per cent annually. It had planned to use the proceeds to augment its long-term resources for working capital requirements.
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PSB to market Bajaj Allianz products
New Delhi: Punjab and Sind Bank (PSB) will be marketing the products of Bajaj Allianz General Insurance, marking its foray into the insurance sector. “Being non-fund and non-risky business for PSB, the marketing of insurance products is expected to have a positive impact on income and profitability,” PSB chairman NS Gujral said here on Wednesday. With Rs 6,200-crore advances extended to the industry, PSB has a captive insurance business which it insures with other companies. Besides marketing insurance products, it will aim at reduction of deposit cost and improving deposits mix as part of its strategy to finetune its fundamentals and bottomlines. It is also continuing with its retail lending drive to increase advances, portfolio, non-fund and other earnings. The insurance business would be conducted through its nationwide network, he added.
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Return on main income of 18 NBFCs up
Mumbai: Return on main income of 18 Non-Banking Financial Intermediaries (NBFCs) increased during 2002-03 as against the corresponding period last year, indicating better performance by NBFCs. Of the 18 NBFCs selected for study, 61 per cent were found to have raised their efficiency during 2002-03. Only profit making NBFCs during 2002-03 and 2001-02 have been considered for this study, which traces the trend of return on main income for the 18 NBFCs during 2002-03 against the same period in 2001-02.

Total income of 18 NBFCs rose 8.73 per cent to Rs 5,686 crore during 2002-03 from Rs 5,328 crore during the previous year in the same period and their combined profits increased by 13.44 per cent, resulting in an increase in return on income, higher from 20.18 per cent in 2001-02, to 21.45 per cent in 2002-03. Of these companies, the top five according to profit after tax (PAT) to income ratio during 2002-03 are PNB Gilts (40.52 per cent), Axis Capital Markets (33.33 per cent), Bajaj Auto Finance (28.72 per cent), HDFC (23.26 per cent) and Reliance Capital (22.82 per cent). Out of the 18 NBFCs, seven witnessed a fall in PAT to income ratio, while eleven showed a higher ratio in 2002-03, compared with 2001-02.
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HDFC Bank to extend forex trading business
Mumbai: HDFC Bank is planning to introduce forex facilities in most of its branches in India by the end of 2003. This decision has been primarily made with a view to provide standard and uniform facilities to customers all over the country. At the moment, HDFC Bank provides forex facilities in around 75 per cent of it’s branches. The number of branches providing forex facilities has moved up from seven to 175 in a period of eight months. Currently, HDFC Bank has 236 branches in India. Said HDFC Bank vice president and head (retail liabilities) Amresh Acharya: “We want to be aggressive in providing forex facilities to woo our customers. There is a huge potential in this area to tap.” With this, customers across the country can avail of facilities like demand drafts and traveller’s cheques in foreign currencies, opening of NRI accounts for foreign exchange denominated deposits among others. Customers will also get money changing facilities in HDFC Bank branches.
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Co-op bank victims to hold rally
Hyderabad: The Welfare Association of Co-operative Bank Depositors are going to hold a rally on June 16 in the city demanding that immediate steps be taken to return their deposits locked in various crisis-ridden co-operative banks. C.C. Reddy, the founder trustee of the Visu Trust, said the rally would start at Punjagutta and end at Reserve Bank of India office near the Secretariat. Addressing a news conference here on Wednesday, Reddy, who has taken the initiative to represent the victims through the trust, alleged that huge amounts collected by some co-operative banks had been frozen by the RBI. Manam Anjaneyulu, the chairman of AP Urban and Town Co-operative Banks' Association, called for attachment of properties of directors of erring banks and recovering non-performing assets and reimbursement of deposits to the victims, a Visu Trust statement said.
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BOB pares rates on farm, SSI credit
Chennai: Bharat Overseas Bank Ltd has lowered interest rates on credit to agriculture and small-scale sectors. ``The revised interest rates to agriculture and SSI sector will be at PLR minus one per cent for loans up to Rs 25,000 and at PLR for loans between Rs 25,000 and Rs 2 lakh,'' says a press release from the bank. However, for agricultural loans above Rs 2 lakh, interest rates will be at PLR plus two per cent. For SSIs, the rates will vary between PLR and PLR plus two per cent, depending upon the bank's view of the risk. Also, the bank has reduced interest rates on deposits by 25 to 50 basis points, in different tenors. At present, the rate on deposits between one and three years is six per cent.
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IDBI Capital net down 2.5 per cent on interest rate volatility
Mumbai: IDBI Capital Market Services Ltd, a primary dealer in the Indian debt markets and 100 per cent subsidiary of IDBI, has posted a 2.5 per cent drop in net profit for the year ended March 31, 2003 at Rs 228.15 crore as compared to Rs 233.99 crore in the previous year. The decrease in trading profits is attributed to changing interest rate scenario. The rate of increase in G-sec prices was more rapid in 2001-02, providing more trading opportunities as compared to 2002-03. This was due to the fall in interest rates of 3 per cent in the year 2001-02 as compared to one per cent fall in 2002-03. Rapid fall and volatility in interest rates give a trader more opportunities to trade and make profits.
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