Allahabad Bank net spurts 123% in H1
Kolkata: Allahabad Bank has announced a 123-per cent increase in net profit during the first half of the current fiscal ended September 2003; profit for the period stood at Rs 143.88 crore as against Rs 64.51 crore in the corresponding period of the previous year. The bank, which has been able to bring down net NPAs to 5.21 per cent from 9.18 per cent, has seen a reduction in the cost of deposits from 6.84 per cent to 5.92 per cent. Its EPS increased to Rs 8.3 (annualised) from Rs 5.23, while book value per share increased from Rs 33.76 in March 2003 to Rs 37.89.

Allahabad Bank further added Rs 143.38 crore to its reserves during the first half, raising it to Rs 966.97 crore. Capital adequacy increased to 11.08 per cent as on September 30 this year from 10.39 per cent as on September 30, 2002. The bank has targeted an NPA recovery of around Rs 500 crore during the current year. Over 400 defaulting entities have come forward to settle under the one-time settlement mechanism, involving Rs 53.54 crore.
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Co-op bank staff wants refinance at 3%
Mumbai: The cooperative bank employees' unions are demanding that the Reserve Bank of India (RBI) should give refinance to cooperative banks at 3 per cent instead of the present 6 per cent which is the benchmark bank rate.

According to the All India Cooperative Bank Employees' Federation, in 1997, the central bank used to provide reimbursement at 6 per cent when the bank rate was higher at 12 per cent.
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Govt may cap FDI in pension funds at 26%
New Delhi: The Indian government is considering capping the foreign investment limit in pension funds at 26 per cent in line with the FDI limit for the insurance sector, said Finance Secretary D C Gupta. "The new pension system will roll out from 1 January 2004 and will be opened for other sectors later. "The new scheme will be applicable for government officials from 1 January 2004. It will also be applicable for private players. We expect a large number of corporates to join after the entire mechanism is in place."

While the government will make matching contribution for its employees, corporates will be free to make any proportion of contribution for employees. The new pension system will offer the employees the facility of portability — they can move from one scheme to another. "The consumers will also have the choice to invest in safe, balanced and equity schemes," Gupta said.
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Andhra Bank slashes PLR by 0.75%
Hyderabad: Andhra Bank has slashed its prime lending rates across the board by 75 basis points. The reduction comes into effect from Wednesday.

Andhra Bank general manager A L Nageswara Rao said as against the current short-term prime lending rate of 10.5 per cent, the bank will charge 9.75 per cent.
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ICICI Bank gets approval for Eurobonds
Mumbai: ICICI Bank has informed the Bombay Stock Exchange that the ministry of finance and the Reserve Bank of India have granted it approval for issuing Eurobonds in the international markets to the extent of $ 300 million. ICICI Bank proposes to issue these bonds in the nature of unsecured unsubordinated fixed rate Eurobonds with tenure of five years.

The pricing will be determined by way of book building process. Through this process the book runners or the merchant bankers will get quotes from the prospective investors and the cut off interest rate linked to the LIBOR will be worked out accordingly. This rate could be dependent on the rating of the issue and also on the response to other Indian issuances in the international markets at the same time. The Eurobonds are to be listed on the Singapore Stock Exchange. The preliminary offering circular has been filed with the Singapore Stock Exchange and the issue is to be launched soon.
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