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KMBL
to set up ARC
Mumbai: Kotak Mahindra Bank is setting up an Asset
Reconstruction Company (ARC), in partnership with other
domestic companies, for purchasing stressed assets of
other companies and restructuring them for commercially
viable sell-out. The ARC will commence its operations
in the second quarter of the current fiscal and a decision
on other domestic partners would be taken in the next
two months, bank executive vice chairman and managing
director Uday Kotak said on Monday. “We are setting
up the ARC as the company has required expertise and skills
to recover the stressed assets,” Kotak said, adding
the bank would contribute upto 40 per cent of the total
capital requirement for the ARC. The size of the asset
portfolio of the ARC will be around Rs 200-300 crore including
the stressed assets of Kotak Mahindra Bank.
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Kotak
Mahindra Bank Q4 net at Rs 10 crore; to give 21 per cent
Mumbai: Kotak Mahindra Bank Ltd has posted a net
profit of Rs 10.06 crore for the quarter ended March 2003
as compared to Rs 19.30 crore for the quarter ended March
31, 2002 after taking into account an expenditure of Rs
20.85 crore towards its conversion into bank. Total income
of the bank in the quarter has gone up by 53.26 per cent
to Rs 80.65 crore from Rs 52.62 crore in the corresponding
quarter of the previous fiscal. For the fiscal ended March
31, 2003, the company has posted a net profit of Rs 44.96
crore for the year ended March 31, 2003 as compared to
Rs 54.52 crore. Total income has increased to Rs 254.68
crore in the fiscal 2003 from Rs 187.24 crore in the previous
fiscal. However, the previous year’s figures are
not strictly comparable with those of the current year
as the bank has changed some of the accounting policies
to ensure compliance with banking regulations and banking
industry practices after its conversion into a bank with
effect from March 22, 2003. The group has posted a consolidated
net profit of Rs 73.32 crore for the fiscal ended March
31, 2003 as compared to Rs 84.09 crore for the year ended
March 31, 2002 after taking into account the expenditure
on the conversion into bank and losses made by its insurance
subsidiary. Total income has increased from Rs 606.07
crore in the financial year 2001-02 to Rs 714.84 crore
in the year ended March 31, 2003
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ICICI
Bank bags US magazine award
Mumbai: ICICI Bank has won DM Review's World Class
Solution Award 2003 in the `Business Intelligence' category
for its Teradata enterprise data warehouse solution, according
to a company release. Teradata, a division of NCR Corporation,
on Monday announced that ICICI Bank was the first Asia-Pacific
organisation to receive the award from the American business
intelligence and analytics magazine. The bank uses the
Teradata platform to develop tailored marketing campaigns
that have significantly boosted customer acquisition rates.
It has serviced over 11 million customers country-wide.
Also, ICICI Bank's credit cards and retail loans business
units attributed 25 per cent and 20 per cent respectively
of their new/incremental business in the past year to
cross-selling activities facilitated by the data warehouse.
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HDFC
to focus on secondary cities
Kochi: Having built up a strong bond with the retail
customers of the metros and major cities of the country,
Housing Development Finance Corporation (HDFC) has now
begun to focus on the secondary cities. Inaugurating the
new HDFC office at Palarivattom in Kochi, R.V.S. Rao,
executive director, said at a press conference that over
80 per cent of the institutions loan portfolio is retained
among the retail customer. Only the remaining 20 per cent
is held by the corporates, where again the loan is most
often routed for building individual houses for the staff.
Despite building a loan corpus of Rs 9,950.87 crore last
year, the average size of borrowing remained a shade over
Rs 3 lakh, Rao said. And with the real estate development
gaining pace in the secondary cities and smaller towns,
the company was focusing on these areas as well. The banks
in the smaller cities have been focusing in high net worth
individuals, while HDFC would be focusing on the middle-income
group as the potential customer.
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No
plan to offload equity in non-life insurance cos
New Delhi: The government has no immediate plans
to include the four nationalised non-life insurance companies
into the disinvestment list. At present, the four companies
are 100 per cent owned by the Centre. "There is no
proposal before us to offload the government's holding
in any of the four non-life insurance companies,"
a senior official of the ministry of finance said.
After the success of the government's disinvestment of
its shares in Maruti Udyog Ltd (MUL), there had been speculations
in some quarters that the non-life insurance companies
may now be dragged into the disinvestment process. The
four companies are New India Assurance Co Ltd, Oriental
Insurance Co Ltd, United India Insurance Co Ltd and National
Insurance Co Ltd. However, the finance ministry officials
did not completely rule out the possibility of going in
for dilution of centre's equity in the four companies
in future. "What proposals would come up in future
is difficult to say since the economic environment is
extremely dynamic. In view of this, it would not be proper
to rule out any of the options before us," officials
said.
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Lok
Adalat settles 390 bank cases in TN
Coimbatore: Lok Adalat is emerging as the most
successful platform in settlement of bank cases. Hundreds
of bank cases (in the pre-litigative stage) had been settled
before the Lok Adalat between January and May 2003, compared
to the corresponding period of the earlier year. The details
furnished by the Coimbatore District Legal Services Authority
reveal that a settlement had been reached in 390 cases
and the amount settled had touched a high of Rs 5.15 crore
during the first five months of the current calendar year.
But between January and December 2002, only 42 cases had
been settled for Rs 30.22 lakh. Indian Overseas Bank topped
the list with 111 cases, followed by Bank of India at
85, Bank of Baroda 54, State Bank of India 45, Union Bank
of India 39, Central Bank of India 30, Canara Bank 25
and Indian Bank with just one case.
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India’s
consolidated debt to surge: Icra
New Delhi: India’s consolidated debt is likely
to swell with many states accessing markets for pre-paying
high cost loans, credit rating agency Icra has cautioned.
“The pre-payment of state government loans, mostly
funded by the market, will show up as reduction in the
centre’s liabilities, although it will raise the
consolidated debt of the centre and state governments,”
Icra said in the latest issue of ‘Money and Finance’.
Warning that the pre-payment of state government loans
to the centre would have “sizeable” impact,
Icra said, “it is not known what the accounting treatment
is going to be.” According to market sources, during
the fortnight ended June 13, RBI mopped up Rs 7,000 crore
through on-tap sale of state loans under centre-state
debt swap scheme, which enables states to pre-pay high
cost debt and substitute them by current low coupon-bearing
small savings and the open market loans.
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