1. Housing Development Finance Corporation Ltd would raise Rs 3,114 crs through preferential issue of shares to two foreign investors, The Carlyle Group and Citigroup Strategic Holdings. The global private equity firm, The Carlyle Group, will purchase 15.25 mn new shares in HDFC at Rs 1,730 per share. On closure of the transaction, Carlyle will own a 5.6% stake in HDFC.
2. The country's foreign exchange reserves fell by $9 million to $203.98 billion for the week ended May 18, due to a drop in foreign currency assets. Forex reserves had fallen by $18 million to $203.99 billion in the previous week.
3. IndusInd Bank has reported a net profit of Rs 21.4 crs in the fourth quarter of 2006-07, against a loss of Rs 62.4 crs in the previous year on lower provisioning. All the key ratios of the bank were looking better. The bank had reported a loss in the fourth quarter of 2005-06 as a large oil refinery's account was shifted to the Credit Deposit Ratio Mechanism. Net interest income increased by 8.95% to Rs 85.81 crs (Rs 78.76 crs). Other income rose to Rs 56.82 crs (Rs 36.35 crs).
4. Seven public sector financial institutions have evinced interest to manage the pension funds under the new pension scheme (NPS).The institutions that have submitted their bids to the Pension Fund Regulatory and Development Authority (PFRDA) are LIC, SBI, UTI Asset Management, Canara Bank, State Trading Corporation of India, PNB and IDBI Capital.
5. The scramble to keep pace with credit growth will push up banks' cost of deposits by 50 bps in 2007-08, says a report by Crisil. It feels that banks may not be able to pass on increasing costs to borrowers as further increases could significantly hamper growth or force borrowers to look at alternative avenues. Cost of deposits had risen by 60 bps to 5.1% in 2006-07. "Incidentally, despite the increase in the cost of deposits, the banks' net profitability margin increased to 1.55% in 2006-07 from 1.32% in 2005-06, as banks passed on the increase in costs to their borrowers."
6. Bank of Baroda intends to open ten overseas branches this year. These will be at Port of Spain (Trinidad & Tobago), Accra (Ghana), Bahrain, second branch in Johannesburg (South Africa), ninth in UK, second in Tanzania, second in Botswania, eighth in Kenya, Canada and one representative office in Australia. In addition, a joint venture company, along with PNB and Andhra Bank would be set up in Malaysia.
7. The Union Bank of India will be opening up seven more overseas branches in the current financial year. RBI had given approval for setting up the branches, and the bank had approached the authorities of the respective countries in this regard. It would be setting up its overseas branches in Shanghai, Beijing, Xinjiang, Hong Kong, Doha, Dubai and Singapore and accordingly the requisite measures were being taken.
8. Bank customers can now appeal against the decision of the Banking Ombudsman if he has rejected the customer's complaint, provided the complaint falls within the matters specified under Banking Ombudsman Scheme. RBI has amended the Banking Ombudsman Scheme, 2006 to enable this provision. Before the scheme was amended, the bank customers could appeal only against the awards given by the Banking Ombudsman.
9. South Malabar Gramin Bank has registered a 20% growth, taking its total business to Rs.3,144 crs in the last fiscal. The deposits and advances increased by Rs.171 crs and Rs.359 crs respectively. The credit deposit ratio of the bank stood at 123%, which was the highest in any bank of the State. The State average is 70%.
2. The country's foreign exchange reserves fell by $9 million to $203.98 billion for the week ended May 18, due to a drop in foreign currency assets. Forex reserves had fallen by $18 million to $203.99 billion in the previous week.
3. IndusInd Bank has reported a net profit of Rs 21.4 crs in the fourth quarter of 2006-07, against a loss of Rs 62.4 crs in the previous year on lower provisioning. All the key ratios of the bank were looking better. The bank had reported a loss in the fourth quarter of 2005-06 as a large oil refinery's account was shifted to the Credit Deposit Ratio Mechanism. Net interest income increased by 8.95% to Rs 85.81 crs (Rs 78.76 crs). Other income rose to Rs 56.82 crs (Rs 36.35 crs).
4. Seven public sector financial institutions have evinced interest to manage the pension funds under the new pension scheme (NPS).The institutions that have submitted their bids to the Pension Fund Regulatory and Development Authority (PFRDA) are LIC, SBI, UTI Asset Management, Canara Bank, State Trading Corporation of India, PNB and IDBI Capital.
5. The scramble to keep pace with credit growth will push up banks' cost of deposits by 50 bps in 2007-08, says a report by Crisil. It feels that banks may not be able to pass on increasing costs to borrowers as further increases could significantly hamper growth or force borrowers to look at alternative avenues. Cost of deposits had risen by 60 bps to 5.1% in 2006-07. "Incidentally, despite the increase in the cost of deposits, the banks' net profitability margin increased to 1.55% in 2006-07 from 1.32% in 2005-06, as banks passed on the increase in costs to their borrowers."
6. Bank of Baroda intends to open ten overseas branches this year. These will be at Port of Spain (Trinidad & Tobago), Accra (Ghana), Bahrain, second branch in Johannesburg (South Africa), ninth in UK, second in Tanzania, second in Botswania, eighth in Kenya, Canada and one representative office in Australia. In addition, a joint venture company, along with PNB and Andhra Bank would be set up in Malaysia.
7. The Union Bank of India will be opening up seven more overseas branches in the current financial year. RBI had given approval for setting up the branches, and the bank had approached the authorities of the respective countries in this regard. It would be setting up its overseas branches in Shanghai, Beijing, Xinjiang, Hong Kong, Doha, Dubai and Singapore and accordingly the requisite measures were being taken.
8. Bank customers can now appeal against the decision of the Banking Ombudsman if he has rejected the customer's complaint, provided the complaint falls within the matters specified under Banking Ombudsman Scheme. RBI has amended the Banking Ombudsman Scheme, 2006 to enable this provision. Before the scheme was amended, the bank customers could appeal only against the awards given by the Banking Ombudsman.
9. South Malabar Gramin Bank has registered a 20% growth, taking its total business to Rs.3,144 crs in the last fiscal. The deposits and advances increased by Rs.171 crs and Rs.359 crs respectively. The credit deposit ratio of the bank stood at 123%, which was the highest in any bank of the State. The State average is 70%.
