Kanakamahalakshmi Co-op bank declares 15 per cent dividend
Visakhapatnam: Kanakamahalakshmi Co-operative Bank has earned Rs.1.79 crore gross profit during 2003-2004 and has declared 15 per cent dividend.

While the reserves amounted to Rs.19 crore, the bank had deposits of Rs.27.43 crore and advances of Rs.18.96 crore. The net profit amounted to Rs.65 lakh.
Back to News Review index page  
FICCI survey: 10-20 per cent growth in banking sector
New Delhi: A FICCI survey on the 'Status of the Indian Banking Industry' reveals that an overwhelming majority of 81 per cent of respondents expect the banking industry to grow at between 10 and 20 per cent this fiscal. The survey is based on the feedback from more than 75 respondents, including leading bankers, financial institutions, intermediaries and other market players.

According to the survey, public, private and foreign banks have reported higher advances over the previous year. Almost, 82 per cent of the banks (of those who have reported figures for both the years) have reported higher growth in advances this fiscal compared with the last year, the survey stated.

Further, 80 per cent of the respondents expect an upward shift in interest rates. While 48 per cent of the respondents see interest rates to rise within the next six months, 37 per cent perceive a rise in the next three months.

Rising inflation and global developments (hardening of interest rates worldwide and the rising oil prices et al) are cited as the primary reasons for the expected hike in interest rates with 72.4 per cent of the respondents attributing their expectations of interest rate increase to the former and 69 per cent to the latter. If interest rates rise, 62 per cent of PSBs aver that their balance sheets' will be adversely impacted because of the ensuing decline in treasury profits. Almost 73 per cent of private and foreign sector banks, however, will be able to accommodate this decline, the survey said.

The present risk management system of banks in the country does not compare favourably with the rest of the world with 76 per cent of the respondents claiming so and 55 per cent say that the present hedging mechanisms in India are not adequate. Further, 97 per cent of those surveyed favoured the introduction of interest rate derivatives.

Further, 55 per cent of the respondents claimed that banks are not prepared for shifting to Basel II norms by 2006. About 50 per cent of public sector banks have expressed their positive preparedness in meeting these guidelines.
Back to News Review index page