ABN Amro enters home loans with 'super saver' offer
New Delhi: ABN Amro has entered the highly competitive housing loan segment with the launch of its Super Saver Loan Package. Under the scheme, the bank will offer an interest rate of 6 per cent in the first year and 6.5 per cent in the second year and from the third year it will offer loans at the then prevailing floating rate. According to the executive vice-president, Romesh Sobti, loans between Rs 1 lakh to Rs 1 crore would be offered. The bank is targeting at least 10 per cent of the Rs 50,000 crore home loan segment. Under the Super Saver scheme, the equated monthly instalment (EMI) is about Rs 717 per lakh for a 20-year loan. The scheme will be available till December 31, 2003.

The bank's move to enter the housing loan segment with such low rates is expected to trigger another rate war among banks and housing finance companies. "We are targeting our existing clients and consumers in nine major cities. We will extend it to 25-30 cities in two-three years," Sobti said. Apart from the promotional scheme, Sobti said the bank would offer housing loans at floating rate of 7.75 per cent and a fixed rate of 8.25 per cent. The bank will re-price its floating loans every six months, while fixed rates would be revised every three years. "We want to be amongst the top five players with over 10 per cent market share," Nitin Chopra, Head of consumer banking, said.

The bank has tied up with ICICI Lombard General Insurance to provide property insurance to home loan clients. It would also offer its Smart Gold credit card to the borrowers free of joining fees and concessional rates on personal loans and auto loans. ABN Amro will also offer a refinance facility, which would enable the bank to take over the entire loan outstanding that a customer has with another bank or housing finance provider.
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Bharat Overseas net up 50 pc
Chennai: Bharat Overseas Bank Ltd has reported a net profit of Rs 13.54 crore for the first half of the current year, 50 per cent higher than Rs 9.02 crore it made in the same period last year.In a press release, the bank said that its operating profit went up to Rs 29.63 crore, from Rs 16.39 crore earlier. Interest spread also increased 2.23 per cent, as on September 30, 2003, compared to 2.82 per cent on the same date last year. "The capital adequacy of the bank is comfortably placed at 13.24 per cent," the release says.
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Andhra Bank cuts rate for SHGs
Hyderabad: Andhra Bank has decided to reduce the rate of interest by 50 basis points to 8.5 per cent from the existing level of 9 per cent in its efforts to encourage the Self Help Groups (SHGs) movement across the country, especially in view of the good recovery performance under SHG-Bank linkage programme. The new rate would come into effect from November 1, the bank said in a press release. Since inception of SHG-Bank linkage programme, the bankhas financed 91,434 groups with Rs 222.62 crore, said the bank general manager, A.L. Nageswara Rao.
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SBT net doubles
Thiruvananthapuram: The operating profit of State Bank of Travancore (SBT) at the end of the first half-year of the current fiscal went up 116 per cent over the corresponding period in the previous year. The operating profit stood at Rs 391.98 crore as against Rs 181.82 crore at the end of September 2002, according to a statement from the bank. The net profit reached Rs 115.45 crore (Rs 58.96 crore), an increase of 96 per cent. The bank's other income rose 168.38 per cent to Rs 282.34 crore (Rs 105.20 crore). The (non- annulaised) earnings per share worked out to Rs 230.90 (Rs 117.93). The net interest income was at Rs. 316.17 crore.
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Syndicate Bank H1 net up 51 pc
Manipal: Syndicate Bank has announced 50.79 per cent increase in the net profit during the first half of the current fiscal ended September 2003; profit for the period stood at Rs 216.45 crore as against Rs 143.54 crore for the corresponding period of the previous year. The operating profit for the half-year ended September 30, 2003 has recorded an increase of 67.85 per cent over the corresponding period the previous year. It recorded an operating profit of Rs 442.91 crore for the half-year ended September 30, 2003, whereas it was Rs 265.80 crore for the corresponding period the previous year. Addressing presspersons in Manipal of Udupi district on Monday, Michael Bastian, chairman and managing director (CMD), said the board of the bank had taken a decision to pay interim dividend at 10 per cent subject to approval of the Reserve Bank of India.

He attributed the increase in the profit to the Rs 5,800 crore business conducted in the last year, and added that reduced cost of deposits had substantially added to the profit. The interest margin of the bank is one of the highest among the peer group banks even in the lower interest regime. He said that the global business of the bank reached Rs 49,443 crore at the end of September 2003. The domestic deposits have increased by 12.53 per cent and the domestic advanced by 15.84 per cent over September 2002. Bastian said the capital adequacy ratio stood at 12.4 per cent against 11.03 per cent as on March 2003. He said the net NPA had come down to 4.89 per cent from 5.64 per cent on September 30, 2002.
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Union Bank Q2 net rises to Rs 170 cr
Mumbai: A sixty-five per cent jump in non-interest income has helped Union Bank of India to earn 82.80 per cent growth in net profit in the second quarter of this fiscal. The net profit has zoomed to Rs 170 crore for the second quarter ended September 30, as compared to Rs 93 crore in the same period the previous year. Non-interest income of the bank constitutes commission earnings, treasury profits, forex earnings and other service charges, according to V. Leeladhar, chairman and managing director, Union Bank of India. The bank's operating profit grew to Rs 329 crore during this period (Rs 280 crore) Interest income has risen to Rs 1,082 crore (Rs 1,056 crore). Total expenditure of the bank was at Rs 956 crore (Rs 899 crore). For the half year ended September 30, 2003, the bank's net profit grew by 57 per cent to touch Rs 325.75 crore as compared to Rs 207.27 crore in the previous year period. Treasury profits for the half-year were at Rs 138 crore (Rs 51 crore). Deposits have touched Rs 46,761 crore as on September 30, 2003 (Rs 41,760). Advances have grown to Rs 27,653 crore (Rs 23,695 crore).

Priority sector advances of the bank at the end of the half-year stood at Rs 11,990 crore (Rs 9,270 crore). Retail advances grew to Rs 5,564 crore (Rs 4,151 crore). The ratio of net NPA to net advances has improved to 4.39 per cent (5.74 per cent). Cash recoveries in the first half were at Rs 361 crore. Provisions and contingencies during the half year, were at Rs 292.74 crore (Rs 293.23 crore). The bank had already started implementing the 90-day norm for NPAs prescribed by the RBI, from the first quarter of this financial year, said Mr Leeladhar.Capital adequacy ratio of the bank has risen to 13.34 per cent in September 2003, as compared to 11.44 per cent in September 2002.
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