1. RBI has said that ARCs will have to start operations within six months of receiving licences. The move aims to spur into action ARCs which have remained dormant for years after receiving licences. It said that those companies where the certificate of registration (CoR) is already issued, the deadline of six months would begin from the date of notification, which is October 19. RBI added that if any ARC was unable to commence operations within six months from receiving the CoR, they would be granted another six months, but not more than one year from the time the CoR was issued.
2. HDFC Bank, the country’s second largest private sector bank, has been rated higher than the largest commercial bank in the country, State Bank of India. International rating agency Moody’s Investors Service has assigned a “C-” financial strength rating (FSR) to HDFC Bank as against a D+ rating to SBI, which is one notch below. ICICI Bank, the country’s second commercial bank, was early this year upgraded from `D+’ to `C-’.
3. The tight liquidity conditions seen in the local banking system last week seem to be abating. With the festive season coming towards a close, liquidity has eased relatively. Although banks’ inability to estimate cash requirements forced them to keep off from lending to the central bank in morning sessions of liquidity adjustment, RBI was able to mop up Rs 16,000 crs in the afternoon session through reverse repo transactions.
4. Deprecating the strong-arm methods allegedly employed by private banks for recovering loan amounts, the Delhi High Court has dismissed an appeal by Standard Chartered Bank, challenging the order of a single judge who directed police to investigate complaints of such harassment of the family of a deceased credit card holder.
5. Andhra Bank has posted 10.19% increase in net profit at Rs 146.44 crs for the quarter ended September 30, as compared to Rs 132.89 crs for the same quarter last year. The total income increased 19.58 % to Rs 900.75 crs for the quarter ended September 30, from Rs 753.23 crs for the corresponding quarter a year ago.
6. ICICI Bank is expecting over 40% growth in its vehicle finance business at Rs 50,000 crs by March 2007. Its vehicle financing business is growing by over 40% y-on-y basis. It has over 40% market share in auto financing, expects the total book value of vehicle finance to increase to Rs 50,000 crs by March 2007 from Rs 34,000 crs as of March this year. The book value of the auto loan portfolio was at Rs 42,000 crs as of September 2006. The vehicle loan disbursement was Rs 20,000 crs in 2005-06, while the incremental loan disbursement is expected to be Rs 29,000 crs this fiscal. Meanwhile, ICICI Bank has tied up with Sixt India, a car leasing and renting service provider, for car leasing business in India. Under the arrangement, the bank will finance 100% value of cars bought by Sixt and Sixt in turn will lease the cars out to corporates for a certain period at a price of 60-80% of the cost. Sixt India plans to have a fleet of 3,000 cars by 2007 and 35,000 cars in five years.
2. HDFC Bank, the country’s second largest private sector bank, has been rated higher than the largest commercial bank in the country, State Bank of India. International rating agency Moody’s Investors Service has assigned a “C-” financial strength rating (FSR) to HDFC Bank as against a D+ rating to SBI, which is one notch below. ICICI Bank, the country’s second commercial bank, was early this year upgraded from `D+’ to `C-’.
3. The tight liquidity conditions seen in the local banking system last week seem to be abating. With the festive season coming towards a close, liquidity has eased relatively. Although banks’ inability to estimate cash requirements forced them to keep off from lending to the central bank in morning sessions of liquidity adjustment, RBI was able to mop up Rs 16,000 crs in the afternoon session through reverse repo transactions.
4. Deprecating the strong-arm methods allegedly employed by private banks for recovering loan amounts, the Delhi High Court has dismissed an appeal by Standard Chartered Bank, challenging the order of a single judge who directed police to investigate complaints of such harassment of the family of a deceased credit card holder.
5. Andhra Bank has posted 10.19% increase in net profit at Rs 146.44 crs for the quarter ended September 30, as compared to Rs 132.89 crs for the same quarter last year. The total income increased 19.58 % to Rs 900.75 crs for the quarter ended September 30, from Rs 753.23 crs for the corresponding quarter a year ago.
6. ICICI Bank is expecting over 40% growth in its vehicle finance business at Rs 50,000 crs by March 2007. Its vehicle financing business is growing by over 40% y-on-y basis. It has over 40% market share in auto financing, expects the total book value of vehicle finance to increase to Rs 50,000 crs by March 2007 from Rs 34,000 crs as of March this year. The book value of the auto loan portfolio was at Rs 42,000 crs as of September 2006. The vehicle loan disbursement was Rs 20,000 crs in 2005-06, while the incremental loan disbursement is expected to be Rs 29,000 crs this fiscal. Meanwhile, ICICI Bank has tied up with Sixt India, a car leasing and renting service provider, for car leasing business in India. Under the arrangement, the bank will finance 100% value of cars bought by Sixt and Sixt in turn will lease the cars out to corporates for a certain period at a price of 60-80% of the cost. Sixt India plans to have a fleet of 3,000 cars by 2007 and 35,000 cars in five years.
