Citigroup picks stake in Standard Life
Mumbai: UK-based Standard Life group has sold its entire holding in the Housing Development Finance Corporation to Citigroup Inc. The sale is subject to approval from the Foreign Investment Promotion Board.
If the transfer of shares is approved, Citigroup is likely to nominate a special director on the Board of HDFC.

Standard Life currently holds 9.27-per cent stake in HDFC through Slac Mauritius Holdings. It had entered HDFC ten years ago with a 5-per cent stake at Rs2,400 per share of face value Rs100 (currently the face value of the scrip is Rs10). After a bonus issue from HDFC in 2002 and acquisition of another 5-per cent stake in the open market, its direct stake increased.

Standard Life also acquired a 4.81 per cent stake in 2002-2003 in the FII category but disposed of it later. The HDFC share price stands at Rs1,300-plus currently. The UK based company will exit HDFC making a good profit, although its sale price to Citigroup has not been disclosed.

"Standard Life hopes to acquire 7.76-per cent stake of the entitled FDI in HDFC Standard Life which amounts to 4.81 crore shares," said a senior official from HDFC. The price and timing of the transfer of shares will be decided independently by HDFC Ltd and Standard Life," said the official.
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OBC wants 10-year cap on deposits lifted
New Delhi: The Oriental Bank of Commerce (OBC) wants the ten year cap on fixed deposits lifted and has communicated as such to the Reserve Bank of India. For a bank that is mainly dependent on the Indian market for attracting deposits, OBC is of the view that removal of the restriction would help attract more deposits.

On a deposit base of Rs 50,197.46 crore as on March 31, 2006, the share of NRI deposits is estimated at about $ 94 million. Faced with liquidity pressures, banks have in the recent past been making a case for both tax as well as non-tax measures to woo deposits into the banking system.
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South Indian Bank net up 485 per cent
Kochi: South Indian Bank's net profit has risen by 485 per cent to touch Rs50.90 crore (Rs8.70 crore) for 2005-06. The Board has declared an 18 per cent dividend for the year. Dr V A Joseph, chairman of the bank said: "The commendable performance is on account of the thrust given to NPA recovery and also effectively bringing down the cost of deposits."

In the asset segment of the bank, there has been a shift from treasury to other banking operations. This has resulted in an increase in the net interest income and the spread has gone up from 2.74 to 3.25 per cent. With this shift in focus, the bank could contain the burden of depreciation, which was one of the main reasons for the lower performance last year he added.

The total business volume of the bank grew 15.11 per cent and crossed Rs16,000-crore mark. Deposits grew by Rs1,086 crore or 12.79 per cent, while advances grew by Rs1,007 crore or 18.77 per cent. The bank has collected Rs161 crore (Rs114 crore) from impaired assets during the year. The low-cost deposit component in the deposit base has gone up from 20 to 25 per cent and the average cost of deposits today is 4.58 per cent.
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Banks hike NRE deposit rates
New Delhi: Punjab National Bank has hiked interest rates on its foreign currency non-resident (banks) deposit scheme from May 1. The increase is applicable in respect of dollar, pound, euro, Australian dollar and Canadian dollar deposits. The bank has also increased interest rates on non-resident (external) deposits. A statement issued by the bank said the applicable rate of interest on NRE term deposits for May 2006 is 6.30 per cent for maturities of 1 year to less than three years and 6.40 per cent for maturities of 3 years to 5 years.

Punjab & Sind Bank has also hiked interest rates on FCNR and NRE deposits with effect from May 1. It said interest on NRE term deposits have been hiked from 6 per cent to 6.33 per cent for maturities of 1 year to less than three years and from 6 per cent to 6.35 per cent for 3 years.

Another bank hiking rates on FCNR depoits is Karur Vysya Bank across all slabs and currencies from May 1.

The rate hike has been the highest at 12 basis points on FCNR dollar deposits with a tenure of five years at 5.43 per cent (5.31 per cent).
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