IDBI Bank net profit doubles to Rs 22.4 crore in Q1
Mumbai: IDBI Bank has registered an over 100 per cent jump in net profit for the quarter ended June 30, 2003 at Rs 22.4 crore, up from Rs 11.1 crore in the corresponding period in the previous year. An increase in net interest income and fee income led to these profit figures. Net interest income of the bank rose 49 per cent to Rs 66.6 crore from Rs 44.7 crore and fee income increased by 70.4 per cent to Rs 36.8 crore (Rs 21.6 crore). Total income rose to Rs 109.4 crore (Rs 76.1 crore) even as operating costs rose to Rs 58.1 crore from Rs 44.7 crore.

The Net interest margin of the bank increased to 3.1 per cent (2.65 per cent). Net NPA to customer assets was as low as 0.36 per cent (1.8 per cent) as loan loss provision increased to Rs 16.4 crore (13.8 crore). Quarter-on-quarter, total deposits increased marginally to Rs 6,236 crore from Rs 6,032 crore. Customer assets grew by Rs 900 crore to Rs 5,931 crore, with growth on both retail as well as corporate fronts by Rs 400 crore and Rs 500 crore, respectively.
Back to News Review index page  

Union Bank net profit zooms 36%
Mumbai: Union Bank of India registered an over 36 per cent jump in net profit for the first quarter ended June 30, at Rs 155.88 crore, up from Rs 113.91 crore in the corresponding period of the previous year. Total income inched up to Rs 1,277.66 crore from Rs 1,185.92 crore while the net interest margin was maintained at 3.44 per cent (3.43 per cent). There has been a substantial lowering in the cost of deposits to 6.23 per cent from 7.01 per cent in the first quarter of 2002.

"The bank is targeting an operating profit of Rs 1,700 crore for the current year i.e. a 31-per cent increase, as of now we are on target," said V Leeladhar, chairman and managing director, Union Bank. "We see 30 per cent incremental growth in retail advances this year and retail should constitute 22 per cent of our balance sheet by year-end." At present retail advances at Rs 5,169 crore constitute close to 20 per cent of total advances, which stands at Rs 26,099 crore. With no demand for corporate or wholesale credit, the bank has seen its advances shrink quarter-on-quarter, to Rs 26,099 crore from Rs 26,649 crore.
Back to News Review index page  

Kalpatharu Grameen Bank eyes recoveries
Bangalore: Kalpatharu Grameen Bank plans to improve recoveries and reduce non-performing assets," says bank chairman T Lokeshaiah. "We plan to reduce NPAs from the current 15 per cent to single-digit levels this year." The bank is also targeting to achieve net profits of Rs 3 crore this year, up from the Rs 2.8 crore achieved last year having wiped the accumulated losses of the balance sheet.

Lokeshaiah says the bank, which has a network of 79 branches in the Bangalore Urban, Bangalore rural and Tumkur districts of Karnataka, will continue its focus on the non-farm sector and is targeting it with personal, housing and mortgage loans. Kalpatharu Grameen bank also focuses on women self-help groups with credit and has financed over a 1,000 such SHGs in the past year.
Back to News Review index page  

PNB cuts rates on housing loans
New Delhi: Punjab National Bank (PNB) has announced reduced interest rates on housing loans. The rate of interest under the floating option will be eight per cent (7.75 per cent under Finbasket scheme) for loans repayable up to five years, 8.75 per cent (8.25 under Finbasket) for loans of 5-10 years, 9.25 per cent for loans of 10-20 years and 9.75 per cent for loans repayable above 20 years and up to 25 years.

Under the Finbasket scheme, the bank offers a combination of other retail loans like car loans and personal loans along with the housing loan. Under the fixed interest option, the rate of interest will continue to be 9.25 per cent on loans repayable up to five years, 10.25 per cent on loans of 5-10 years, 10.50 per cent on loans of 10-20 years and 11 per cent on loans repayable above 20 years and up to 25 years. Additional benefit of a 0.25 per cent lower interest rate is available to women.
Back to News Review index page  

UCO Bank net profit jumps 86% in Q1
Kolkata: UCO Bank's net profit in the first quarter of the current fiscal jumped by 86 per cent to Rs 136 crore from Rs 73 crore in the same period of the previous year, according to a release. During the period, the bank added Rs 238 crore to its reserves bringing the total to Rs 748 crore.

The operating profit at Rs 267.46 crore (Rs 140 crore) was up 91 per cent, while net interest income at Rs 280 crore was up nearly 47 per cent. The improved results were achieved on the back of a 17.51 per cent growth in deposits and 21.12 per cent growth in advances, both year-on-year.
Back to News Review index page  

ING Vysya posts Rs 33-crore net profit in Q1
Bangalore: ING Vysya Bank has clocked a net profit of Rs 33.09 crore for Q1 FY04 as against Rs 22.27 crore during Q1 FY03 representing a growth of 49 per cent. Total deposits increased to Rs 9,390 crore as on June 30, 2003, from Rs 7,677 crore as on June 30, 2002, representing a rise of 22 per cent. The bank was able to reduce the cost of deposits to 6.86 per cent for Q1 FY04 as against 8.49 per cent in Q1 FY03. Total advances increased to Rs 5,522 crore from Rs 3,942 crore recording a growth of 40 per cent.

"The return on assets improved to 1.22 per cent from 0.93 per cent and return on equity increased to 22.32 per cent from 16.46 per cent," it said. The bank has introduced VysContractors scheme to provide credit facilities to small sized contractors. It also signed an agreement with Corpora-tion Bank to share the ATM network. It currently has a network of 48 ATMs. Though it has sold its housing subsidiary (Vysya Bank Housing Finance Ltd), the income arising out of the sale was not considered in the Q1 accounts.
Back to News Review index page