IFCI scouting for strategic partner; may enter pension funds
New Delhi: IFCI Ltd is getting back on its feet and could be up and running soon. With renewed confidence backed by steady improvement in financials, the institution has commenced talks with foreign and domestic entities for induction of a strategic partner. The development financial institution is also exploring the possibility of foraying into the pension market as a pension fund manager (PFM). "We are keenly watching the pension reforms process.

We would like to bid for one of the slots that would be on offer for pension fund managers," the chairman and managing director of IFCI, V.P. Singh, said. Singh said that talks with others institutions for entering a strategic partnership has been initiated recently since there was a feeling within IFCI that there could now be sufficient interest in partnering IFCI in view of the improvement in its financials. "We have started talks with a few foreign and domestic institutions. The tie-up could be equity partnership or by way of liquidity support. This financial year could be crucial for this," Singh said, hinting that the tie-up could be finalised within the next few months.

Earlier, the institution has kept such talks in abeyance fearing that the massive losses on its balance sheet would frighten possible partners. IFCI cut its losses in the first quarter of the current fiscal to Rs 86 crore against Rs 221 crore in the corresponding period in the previous fiscal. The net loss for fiscal 2002-03 was Rs 260 crore against a loss of Rs 880 crore in the previous year. Singh said the process of prioritising the institution's bad assets that would be progressively handed over to the asset reconstruction companies (ARCs) promoted by IFCI - Asset Care Enterprise (ACE) - is in an advanced stage.

The IFCI chief said that the institution plans to restrict its future lending activity to "brownfield projects" instead of "greenfield" start-ups. "We would also like to concentrate on non-fund based activities," Singh said. On the ongoing voluntary retirement scheme, he said that it was primarily aimed at weeding out non-professionals from the institution. "We have a small staff strength of about 850 people. What we are aiming at is not a reduction of staff but an increase in the percentage of skilled and professional staff," he said.
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Central Bank H1 net rises 107 pc
Mumbai: Central Bank of India has recorded a 107.27 per cent growth in net profit for the half-year ended September 30, 2003, at Rs 273.33 crore, as compared to Rs 131.87 crore in the same period last year. Total income of the bank during this period grew to Rs 3,027.85 crore (Rs 2,746.83 crore) which is inclusive of interest earned at Rs 2,493.33 crore (Rs 2,523.98 crore) and other income at Rs 534.52 crore (Rs 222.85 crore). Total expenditure of the bank was at Rs 2,271.95 crore (Rs 2,341.69 crore), which was inclusive of interest expended at Rs 1,492.40 crore (Rs 1,602.10 crore) and operating expenses at Rs 779.55 crore (Rs 739.59 crore).
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Centurion Bank eyes Coimbatore region for expansion
Coimbatore: Centurion Bank is eyeing Salem, Tiruchy and Erode in Coimbatore region as potential centres for establishing its presence. Having established a branch in Coimbatore, the bank is now contemplating to open a few extension counters here very soon, bank sources said. At present, the bank has 6 branches, 8 asset-marketing offices, 5 extension counters and 26 ATMs in Tamil Nadu.

The credit deposit ratio of the bank in TN is said to be 98 per cent with a business mix of Rs 484 cr. Bank sources said that the Coimbatore branch alone recorded an operating profit of Rs 21 cr during the current year.
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Repco Home Finance to open 9 branches
Coimbatore: Repco Home Finance Ltd, a subsidiary of Repco (The Repatriates Cooperative Finance and Development Bank Ltd) Bank, plans to open nine new branches during the current fiscal.

At present, it has a network of 13 branches in South India and an additional 11 Repco Home Centres operating at its bank branches. The home finance arm of the bank is targeting at disbursing Rs 150 crore towards home loans in the 2003-04 fiscal. The sanctions till end September were Rs 116 cr, while the disbursements touched Rs 100 cr. Repco offers special schemes for employees of Government or blue chip companies, working women and professionals, repatriates, in addition to 50 plus and super loan schemes.. Government employees on the verge of retirement would be able to avail loan under 50 Plus scheme. Under Super Loan scheme, the legal heirs could construct house on their parental properties.
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Monsterindia to handle UTI Bank recruitments
Mumbai: UTI Bank has teamed up with Monsterindia.com, the online recruitment network, to handle its recruitment needs. According to S. Bhattacharya, senior vice-president, human resources, UTI ank, the bank was rapidly expanding and found it increasingly difficult to handle the sheer volume of applications for various openings. The tie-up was a "smarter way to handle" the recruitments. Applicants apply via an online format, and the applications are sorted out through a predetermined set of criteria specified by UTI Bank.

The jobs will be posted on UTI Bank's Web site, and simultaneously on Monsterindia's as well. For the bank, the benefits are two-fold. While the system has only come alive in the last two months, costs have fallen, and are expected to fall by about 80 per cent annually, mainly due to the reduced dependence on print advertisements and related costs. The tie-up would ensure a sufficient number of applicants and the quality desired. Bhattacharya estimated that the bank' s `time'-costs involved in processing the applications would be halved. However, UTI Bank will still rely on head hunters for specialised positions. The Web site is designed, hosted and maintained by Monster India Pvt Ltd.
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