1. Punjab National Bank (PNB) has won the `PC Quest Best IT Implementation Award' for `maximum business impact' for 2006-07.
2. ICICI Bank has fixed the offer price of its follow-on public issue at Rs 940 per equity share. For retail investors the price would be Rs 890, which is a discount of Rs 50 from the offer price.
3. Banks resorting to "extra constitutional" method, like engaging recovery agents, to recover dues from debtors could not be condoned, and the lender bank had ample power to seek recovery, the Madurai Bench of the Madras High Court has held.
Mr Justice K. Chandru, who heard the petition of Mr S. Ovuraj, a farmer, challenging seizure of his tractor and trailer by State Bank of India, Vilathikulam, Tuticorin district, quoted a Supreme Court order [2007(2) CTC 334] dealing with practice of multi-national banks in engaging recovery agents, and said the impugned action of the first respondent bank, "is shocking" inasmuch as owned by Central Government, the bank was also taking similar mode of recovery by engaging agents.
Mr Justice K. Chandru, who heard the petition of Mr S. Ovuraj, a farmer, challenging seizure of his tractor and trailer by State Bank of India, Vilathikulam, Tuticorin district, quoted a Supreme Court order [2007(2) CTC 334] dealing with practice of multi-national banks in engaging recovery agents, and said the impugned action of the first respondent bank, "is shocking" inasmuch as owned by Central Government, the bank was also taking similar mode of recovery by engaging agents.
4. Citigroup India said that its net profit for the fiscal year 2006-07 grew 39 per cent, on a conglomerate basis, to Rs 1,566 crore against Rs 1,127 crore in the previous year. The net profit of Rs 1,127 crore in fiscal 2005-06 excludes the Rs 2,188 crore from the gain on sale of holding in one of the group companies. For the year ended March 31, 2007, Citigroup India, comprised of all Citigroup entities in the country, reported revenues of Rs 7,315 crore.
5. The country's foreign exchange reserves rose $1.468 billion to $211.015 billion in the week ended June 22 mainly due to the RBI's intervention in the forex market. The reserves had increased by $1.174 billion to $209.547 billion in the week ended June 8. The foreign exchange kitty has seen accretion to the tune of $7.028 billion in four consecutive weeks. Foreign currency assets rose $1.469 billion to $203.646 billion, according to RBI's Weekly Statistical Supplement.
6. The interest rates have peaked but might soften to some extent in the short term, though it is difficult to give a perspective on this for the medium and long term," said Mr V.P. Shetty, Chairman and Managing Director, IDBI Bank, on the sidelines of its annual general meeting in Mumbai on Friday. Mr Shetty felt that the overall liquidity in the system gave an impression of a comfortable situation and that under such a situation the interest rates might not harden further. IDBI Bank plans to increase its retail portfolio to about 20-22 per cent of its total portfolio in fiscal 2007-08.
7. The Centre would make cash payment of Rs 35,531.33 crore to the Reserve Bank of India for acquiring the latter's entire holding in State Bank of India (SBI). Currently, the RBI has a 59.73 per cent stake in SBI, which is the largest commercial bank in India. The stake transfer involving 31,43,39,200 equity shares of Rs 10 each of SBI would happen on June 29. The ordinance amending the State Bank of India Act to enable the transfer of RBI's entire holding in SBI to the central government was promulgated on Thursday. The Government had in this year's budget provided a sum of Rs 40,000 crore for SBI stake buy from the RBI.
8. Karnataka Bank hopes to disburse Rs 500 crore towards agriculturesector and increase its priority sector lending to 10 per cent from its current level of about 7 per cent. The Chairman, Mr Ananthakrishna, said that growth in other businesses and the difficulties faced by coffee farmers had combined to reduce its exposure in agriculture below the statutory requirement of 18 per cent. The bank hopes to achieve the target in stages by increasing its lending to contract farming segment apart from micro-finance segment.
9. The board of directors of Karur headquartered Lakshmi Vilas Bank has recommended a dividend of 7 per cent for the 2006-07 fiscal against 25 per cent the earlier year. Bank sources attribute it to higher provisioning and additional dividend outgo consequent to the rights and bonus shares issued last year. The audited results show a 19.05 per cent growth in business volume to Rs 8,750 crore (Rs 7,350 crore) and higher total income of Rs 474.99 crore (Rs 357 crore). While the operating profit soared by 84 per cent to Rs 73.58 crore (Rs 39.91 crore), its net slipped to Rs 17.58 crore (Rs 22.47 crore). Its total income increased to Rs 474.99 crore (Rs 357 crore). Interest on advances grew by 44 per cent to Rs 312.12 crore (Rs 216.67 crore). The bank managed to reduce its net NPA from 1.89 per cent to 1.58 per cent. The bank has set for itself a business target of Rs 11,200 crore this fiscal.
10. With global interest rates showing signs of hardening, external commercial borrowings (ECBs) are beginning to become more expensive. Bankers said they have already cautioned some of the intending external commercial borrowers to hedge their open positions. Most international borrowings are currently linked to the London Inter Bank Offered Rate (LIBOR). Six-month LIBOR is currently 5.5 per cent. Inclusive of swap and hedging costs, the effective rates were currently in the region of about 9 per cent. This was assuming that corporates were borrowing at rates of about 100 basis points over LIBOR.
11. Deutsche Bank has posted a net profit of Rs 218.22 crore for the fiscal ended March 2007, an increase of 73 per cent from the previous year's Rs 125.92 crore. Total income increased 40 per cent to Rs 1,625.36 crore, from Rs 1,158.97 crore. Total assets of the bank jumped 47 per cent to Rs 17,715 crore from Rs 12,050 crore.
12. The Security Department of Syndicate Bank's head office in Manipal has been awarded ISO 9001:2000 certificate. This is the first security department among all public sector banks to be ISO certified.
13. Syndicate Bank has launched a small credit scheme tied to its Pygmy Plus 2007 branded deposit product. The loan product offers financial assistance up to Rs 1.5 lakh to customers of small means, including redemption of high-cost debt. It added that the scheme called `SyndsmallCredit' provides flexibility to customers where they can contribute varied amounts at their doorstep to the Pigmy Plus 2007 account. These could ultimately be appropriated towards the loan account. The product also offers a three-month repayment holiday in addition to a stepped-up repayment option, the release added.
14. Syndicate Bank is planning to come out with a public issue during the current fiscal to meet the needs of Basel II requirements and to continue the growth in business, according to the Chairman and Managing Director, Mr C.P. Swarnkar.
15. Bank of Maharashtra has paid a dividend of Rs 66.10 crore to the Government for the financial year 2006-07 at 20%.
16. Karur Vysya Bank has unveiled the triple `S' - Spouse Senior Citizen Deposit Scheme. The scheme is applicable to term deposits opened in the joint names of husband and wife (where one is a senior citizen). In the event of the demise of either of the partners during the pendency of the deposit, the surviving spouse would be eligible to receive one per cent additional interest over the card rate of special interest offered to senior citizens from the date of the original deposit till maturity.
