Forex reserves swell by $1.3bn
Mumbai: The country's foreign exchange reserves have swelled by $1.342bn, with the central bank mopping-up dollars from the market and other major currencies appreciating against the greenback.

The forex reserves have touched $163.755 billion for the week ended May 12, according to the RBI's Weekly Statistical Supplement.

In the previous week, the reserves had gained by $1.71 billion to $ 162.413 billion. The forex reserves have been on the rise now for the past 16 weeks. According to the RBI figures, foreign currency assets increased by $1.337 billion to touch $156.66 billion during the week. Foreign currency assets, expressed in dollar terms, include the effect of appreciation or depreciation of currencies as euro, sterling and yen.

The FII outflows from the equity market were around $7 million in the same period.
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RBI reports international asset-liability mismatch for Indian banks
Mumbai: The international liabilities of Indian banks are now almost double that of their international assets. Latest data published by the Reserve Bank of India (RBI) of all authorised dealers (AD) branches of 87 commercial and co-operative banks has shown that while the international liabilities of banks increased by 10.6%, international assets went up by 5% as of September-end 2005, as compared to the previous quarter.

"A plausible explanation for the mismatch of international assets and liabilities for banks in India could be deployment of the funds mobilised abroad in the domestic market in the domestic currency," the RBI said.

The international liabilities of banks rose by Rs27,745 crore due to an increase in foreign currency borrowings, NRE deposits, ADRs/GDRs and equities of banks held by non-residents. The rise in international liabilities over the year was Rs60,841 crore (26.7 %). The liabilities denominated in foreign currencies accounted for 57.5 % of the total international liabilities by September-end 2005, registering an increase over the share of 56.1% in the previous year.

The international assets of Indian banks has jumped by Rs6,426 crore during the reporting period. The currency composition of international liabilities as of September 2005 showed that the liabilities in US dollar chipped in with the maximum share(47.3%), followed by liabilities in Indian rupee (42.5 %) and Pound sterling (5.2%).
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SBI to raise Rs.6-7,000-cr funds during the fiscal
Kolkata: The State Bank of India will raise between Rs6,000-7,000 crore of funds during the current financial year. A portion of this amount would be raised through a dilution of the bank's holdings in all its seven associate banks.

This dilution is expected to be completed in the next 3-4 months. Other portions of the amount would be raised through subordinated debt (close to Rs1,000 crore), preference capital and hybrid instruments.

While there would only be a dilution of SBI's stake in the case of some its associates, in others it may result in an issue of fresh capital. Among the associate banks, the first IPO likely would be from the State Bank of Patiala, where SBI owns 100%.
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SBI net up marginally at Rs.4,407-cr for 2005-06
Kolkata: The board of directors of the State Bank of India at a meeting here on Friday have recommended a higher dividend of 140 per cent (Rs14 per share). The bank has reported a net profit of Rs4,407 crore for 2005-06, a meager growth of 2.37 per cent.

The bank had declared 125 per cent (Rs2.5 per share) dividend in 2004-05, on net profits of Rs4,304 crore.

The bank has reported operating profit for the period at Rs11,299.23 crore (Rs10,990.36 crore), a growth of 2.81 per cent (15.04 per cent). Operating expenses increased by 16.39 per cent. The staff cost alone increased by 17.6 per cent due to payment of arrears as a sequel to wage revision.

Total deposits at the end of March 2006 amounted to Rs3,80,046 crore, registering a growth of Rs12,998 crore (3.54 per cent) due to repayment of IMDs amounting to Rs25,629 crore in December 2005. Gross advances grew to Rs2,67,131 crore (Rs2,09,742 crore).

During 2005-06, retail advances, constituting more than 25 per cent of the bank's gross domestic advances, increased by 31.46 per cent and within the retail segment, housing loan accounted for 52.11 per cent of the total. Housing advances grew by Rs6,845 crore to Rs31,825 crore.

Net interest income at Rs15,635.64 crore (Rs 13,944.63 crore) showed a growth of 12.13 per cent. This was due to growth in interest income on advances by 35.67 per cent and lower cost of deposits. Non-interest income other than profit on sale of investments and dividend grew by 30.96 per cent to Rs6,484.34 crore (Rs4951.36 crore). Gross NPA ratio declined to 3.88 per cent (5.96 per cent) and net NPA to 1.87 per cent (2.65 per cent).
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Federal Bank net up 150 pc at Rs.225.21-cr
Kochi: The Federal Bank has reported a net profit of Rs225.21 crore (Rs90.09 crore) during 2005-06. The growth has come on the back of strong asset growth and prudent management of balance sheet.

Interest income from advances has grown by 18.54 per cent, while that from investments have grown by 20.90 per cent.

While the net interest margin of the bank is up at 3.19 per cent, the interest income has grown by 19.42 per cent. Non-interest income has grown by 24.77 per cent to Rs183.87 crore, mainly from the fee and commission income, remittance business, cash and depository management services.

Total business of the bank has grown by Rs5,599 crore, to Rs29,615 crore. Savings bank deposits have increased by 23 per cent and the share of savings and current account deposits have improved by 3 per cent, which have helped the bank in cutting down the cost of deposits. Driven mainly by growth in retail, SME and housing loan segments, advances went up by 33 per cent to Rs11,736 crore.

For the fourth quarter ending March 2006, the net profit of the bank was up 70 per cent at Rs50.73 crore.

At the end of March, the net worth of the bank grew to Rs 1250 crore, partly by the infusion of fresh capital through a GDR issue. The capital adequacy of the bank was 13.75 per cent. The net NPA fell to 0.95 per cent (2.21 per cent), while gross NPA declined to 4.62 per cent (7.29 per cent).
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