1. ICICI Bank is raising £ 350 mn under a medium term note programme to mark the inaugural deal in the sterling market from an Indian issuer and also the largest deal in the sterling market from Asia. It has priced its three-year fixed rate offering at a spread of 83 bps over the UK gilts. The deal generated good investor response resulting in the deal being upsized to
2. Against the backdrop of a 30% plus growth in profits of other public sector banks, a 3% growth in profits by SBI for the current fiscal may seem a bit disappointing. However, this performance has to be seen in the context of the contribution of a number of one-time events (gains from India millennium deposit scheme, write-back of provisions, etc) to the profits in the previous fiscal 2005-06. SBI's fourth quarter performance, however, was a surprise. Given the poor show in the fourth quarter by ICICI Bank, its nearest competitor, expectations on SBI's performance in this quarter were muted. ICICI Bank suffered because of higher provisions that were required by regulators on personal loans, home loans and credit card outstandings.
3. SBI has proposed to enter into a slew of new businesses, including private equity. It has identified at least three other businesses that it hopes to enter - general insurance, merchant acquisition, financial planning & wealth management. Besides, it is also keen to embark on pension fund management, subject to regulatory approval.
4. The Bank of Rajasthan Ltd has announced a bonus issue in the ratio of 1:4. It has recommended a 20% dividend to shareholders for 2006-07.
5. Global financial services company Citi has launched a new advertising campaign for enhancing its corporate brand identity.
6. City Union Bank will make preferential issues to six investors subject to approval from its shareholders and the Reserve Bank of India.
7. The corporate sector paid Rs 11,541 crore in dividend in 2006-07, up 12.5% from Rs 10,258 crore in 2005-06. According to a study, the net profit of 209 companies rose 41.2%, from Rs 39,785 crore in 2005-06 to Rs 56,190 crore in 2006-07. The ratio of dividends to net profit decreased from 25.78% in 2005-06 to 20.54% in 2006-07.
8. Banks are considering levying a charge of Rs 50 on high-value cheques, while making local payments through real time gross settlement (RTGS) free.
9. Standard Chartered Bank is set to become the third foreign player to enter the Indian retail stock brokerage business by buying a 49 per cent stake in UTI Securities for Rs 140-150
10. RBI has come down heavily on banks authorised to import gold for tying up with non-nominated banks, co-operative banks and non-banking finance companies for gold retailing.
