1. The net profit of the Federal Bank has increased by 29.98% for the year ended March 31 at Rs 292.73 crs against Rs 225.21 crs in the corresponding previous fiscal. The total business of the bank reached Rs 36,483.54 crs, with an increase of Rs 6,868.33 crs over the previous fiscal. The deposits grew by Rs 3,705.70 crs to Rs 21,584.44 crs. The advances went up Rs 3,162.63 crs to Rs 14,899.10 crs (Rs 11,736.47 crs) driven mainly by the growth in retail and SME advances. It has recommended a dividend of 40 % against 35% last year. The earnings per share increased to Rs 34.20 from Rs 32.71.
2. PNB has entered into a strategic alliance with Crisil for risk rating of SME customers of the bank. SME borrowers of the bank can now get themselves rated by Crisil to avail adequate and timely credit from the bank. A rating increases the comfort level to both the lender and the promoter of the SME.
3. Corporation Bank has launched `Corp Compassion' scheme to help underprivileged children. It will donate Rs 10 to the underprivileged children for every account opened under the `Corp Compassion' scheme.The campaign to open savings bank accounts under `Corp Compassion' will run from June 1 to July 31.
4. Public sector banks have begun moves to impose a ceiling on bulk deposit interest rates in a bid to contain costs and defend the current net interest margins (NIM). High-level bankers said that some PSBs have initiated discussions for an informal ceiling, especially after events in March-end when bulk deposit rates topped 12.5%.
5. Non-food credit dropped by Rs 20,103 crs to Rs 18,39,671 crs. Gross bank credit has gone down by Rs 16,571 crs to Rs 18,89,557 crs as of April 27, according to RBI's Weekly Statistical Supplement. Food credit increased by Rs 3,532 crs to Rs 49,887 crs.
6. Bank of Baroda is offering 9.5% per annum for one-year fixed deposit. "The scheme provides for investing any amount as low as Rs 1,000 and there is no lock-in period. Senior citizens will get a higher interest rate of 10% pa.
7. Indians can now wait up to six months before exchanging foreign exchange received from non-residents or lying unused from an overseas trip. Until now, individuals were required to get foreign currency within as early as seven days for some payments. The RBI move to allow individuals to hold on to foreign currency for a longer period is a small step in the move toward capital account convertibility. To a small extent, individuals holding foreign currency can take a view on the rupee. For instance, if someone believes that the current weakness in the dollar is temporary and the greenback may appreciate, they can hold on to their foreign exchange.
8. The government has blocked the external commercial borrowing (ECB) window for integrated townships and made it extremely difficult for small and medium companies to borrow overseas. In a late evening press statement, the finance ministry pruned the all-in-cost ceilings over six-month Libor for ECBs with 3-5 years of maturity by 50 bps to 150 bps. For ECBs with over five-year maturity, the ceiling is now 100 bps lower at 250 bps.
-->What this means is companies can bring in foreign money only if they are able to borrow 3-5 year debt at Libor plus 1.5% (or 6.87%, given the six-month Libor at 5.37%). For maturity over 5 years, foreign banks and institutions should be ready to lend at 7.87%.
9. Aditya Birla Retail will invest Rs 9,000-Rs 10,000 crs for setting up over 1,000 supermarkets and hypermarkets in the next three years across India. But no listed company of the Aditya Birla group will have a stake in the retail venture. “Our mission is to change the way people shop. We will give them more,” Kumar Mangalam Birla, chairman, Aditya Birla group, said here while announcing the foray. And, ‘more.’ is what Birla has decided to call the newest baby.
10. Indian Bank has launched biometric-enabled Smart Cards to deliver banking and financial services at the doorsteps of the common man.
2. PNB has entered into a strategic alliance with Crisil for risk rating of SME customers of the bank. SME borrowers of the bank can now get themselves rated by Crisil to avail adequate and timely credit from the bank. A rating increases the comfort level to both the lender and the promoter of the SME.
3. Corporation Bank has launched `Corp Compassion' scheme to help underprivileged children. It will donate Rs 10 to the underprivileged children for every account opened under the `Corp Compassion' scheme.The campaign to open savings bank accounts under `Corp Compassion' will run from June 1 to July 31.
4. Public sector banks have begun moves to impose a ceiling on bulk deposit interest rates in a bid to contain costs and defend the current net interest margins (NIM). High-level bankers said that some PSBs have initiated discussions for an informal ceiling, especially after events in March-end when bulk deposit rates topped 12.5%.
5. Non-food credit dropped by Rs 20,103 crs to Rs 18,39,671 crs. Gross bank credit has gone down by Rs 16,571 crs to Rs 18,89,557 crs as of April 27, according to RBI's Weekly Statistical Supplement. Food credit increased by Rs 3,532 crs to Rs 49,887 crs.
6. Bank of Baroda is offering 9.5% per annum for one-year fixed deposit. "The scheme provides for investing any amount as low as Rs 1,000 and there is no lock-in period. Senior citizens will get a higher interest rate of 10% pa.
7. Indians can now wait up to six months before exchanging foreign exchange received from non-residents or lying unused from an overseas trip. Until now, individuals were required to get foreign currency within as early as seven days for some payments. The RBI move to allow individuals to hold on to foreign currency for a longer period is a small step in the move toward capital account convertibility. To a small extent, individuals holding foreign currency can take a view on the rupee. For instance, if someone believes that the current weakness in the dollar is temporary and the greenback may appreciate, they can hold on to their foreign exchange.
8. The government has blocked the external commercial borrowing (ECB) window for integrated townships and made it extremely difficult for small and medium companies to borrow overseas. In a late evening press statement, the finance ministry pruned the all-in-cost ceilings over six-month Libor for ECBs with 3-5 years of maturity by 50 bps to 150 bps. For ECBs with over five-year maturity, the ceiling is now 100 bps lower at 250 bps.
-->What this means is companies can bring in foreign money only if they are able to borrow 3-5 year debt at Libor plus 1.5% (or 6.87%, given the six-month Libor at 5.37%). For maturity over 5 years, foreign banks and institutions should be ready to lend at 7.87%.
9. Aditya Birla Retail will invest Rs 9,000-Rs 10,000 crs for setting up over 1,000 supermarkets and hypermarkets in the next three years across India. But no listed company of the Aditya Birla group will have a stake in the retail venture. “Our mission is to change the way people shop. We will give them more,” Kumar Mangalam Birla, chairman, Aditya Birla group, said here while announcing the foray. And, ‘more.’ is what Birla has decided to call the newest baby.
10. Indian Bank has launched biometric-enabled Smart Cards to deliver banking and financial services at the doorsteps of the common man.
