SBI Q2 consolidated net profit up 9 pc to Rs1734-cr
Mumbai: State Bank of India (SBI) group has reported a 9 per cent increase in consolidated net profit at Rs1,734.45 crore for the second quarter ended September 30, 2006 as against Rs1,590.75 crore in Q2FY06.

According to the bank, total income increased to Rs16,255.36 crore from Rs13,974.28 crore in Q2FY06. On a stand-alone basis, the bank posted a net profit of Rs1,184.49 crore for the quarter ended September 30, 2006 as compared to Rs1,215.36 crore for the quarter ended September 30, 2005. Total income increased to Rs10,811.23 crore from Rs9,856.04 crore in Q2FY06.
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SBI MD sees upward bias in interest rates
Mumbai: OP Bhatt the managing director of the State Bank of India (SBI) has said there is upward bias in interest rates, which should not be deemed as pressure. His remarks come just before the Reserve Bank's busy season credit policy review on Tuesday.

Ruling out any pressure on liquidity in the remaining part of this fiscal, Bhatt said SBI's loan book is likely to grow 25 per cent over the previous fiscal.

He said he did see any major liquidity crunch in the system in the remaining period of the current fiscal and that the loan growth of the banking system was being undermined because of poor infrastructure.
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Rabo India may enter derivatives, debt syndication areas
Mumbai: Rabo India Finance (RIF) A 100 per cent subsidiary of Dutch financial powerhouse Rabo Bank, is considering entering businesses lines like derivative products in the carbon credit space, debt syndication, leading IPOs and offering advisory to corporates in restructuring their stressed assets.

RIF says it has made a small beginning in some of the businesses. RIF is in the process of concluding three transactions in the carbon credit space. On leading plans are still on the drawing-board stage. As for IPOs RIF said it will handle IPOs only in specialised segments of agri and food, renewable energy, telecom and media.

The company, a NBFC, will also be launching its debt syndication business within 12-18 months. The businesses of restructuring and offering new financial packages for stressed assets of companies brought in Rs300 crore for RIF last fiscal.

The company had posted a 120 per cent vault in its profit after tax (PAT) in FY 06 at Rs51.95 crore.
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Insurance cos to be allowed to invest in SEZs
Mumbai: Insurance companies have been allowed to invest in special economic zones (SEZs), particularly in infrastructure such as roads and power plants and other facilities. C.S. Rao, chairman of the Insurance Regulatory and Development Authority (IRDA), said depending on the activity being pursued, the IRDA will allow investment by insurance companies.

He said insurance companies can invest up to 15 per cent of their total investments in infrastructure. LIC has invested Rs59,625 crore in the infrastructure and social sectors as on March 31, 2006. A new company will have to begin with a minimum capital base of Rs 100 crore and the FDI restriction of 26 per cent will hold.
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