1. Recapitalisation of Regional Rural banks with negative net worth is likely to come in for some elaborate discussion here on Monday, when the Union Finance Minister, Mr P. Chidambaram, meets the Chairmen of RRBs from all over the country. Of the 96 RRBs, 29 RRBs comprising 11 amalgamated and 18 standalone RRBs have a negative net worth. The total fund requirement for recapitalisation of these 29 RRBs has been pegged at Rs 1,814.86 crore.
2. The High Powered Committee on Mumbai as International Financial Centre has made interesting recommendations, but it is difficult to say at this point if they are feasible politically and technically. For even as Mumbai has to become an IFC, India has also to be competitive.
3. Aviva Life Insurance is planning to join hands with the cooperative banks in India to expand its reach besides augmenting its direct sales force significantly.
4. While piloting the SBI (Subsidiary Banks Laws) Amendments Bill 2006 in Parliament, the Finance Minister had declared that the merger of the associate banks with SBI was not being considered as these banks had special regional character and the aspirations of the people of the regions were involved.
5. The increase in cost of deposits and its consequent pressure on operating margins notwithstanding, Corporation Bank reported a 22.79% rise in net profit for the first quarter ended June 30, 2007 at Rs 177.11 crore compared with Rs 144.24 crore recorded in the same quarter last year. Most of the net profit this quarter came from our core banking operations. The growth in net profit is mainly due to higher volumes. Its margins are under pressure. The Bank is not able to pass on increase in cost of deposits fully to the borrowers.
6. Allahabad Bank has registered a 56.26% growth in net profit at Rs 200.4 crore during the first quarter of 2007-08 from Rs 128.25 crore in the corresponding period last year.
The net profit growth was powered by improved NPA (non-performing asset) management, higher income from operations and cost control.Total income during the first quarter stood at Rs 1,535.1 crore (Rs 1,095.2 crore), up 40.17 per cent.Total business currently stood at Rs 1,03,379 crore, comprising Rs 62,819 crore deposits and Rs 40,560 crore advances.
The net profit growth was powered by improved NPA (non-performing asset) management, higher income from operations and cost control.Total income during the first quarter stood at Rs 1,535.1 crore (Rs 1,095.2 crore), up 40.17 per cent.Total business currently stood at Rs 1,03,379 crore, comprising Rs 62,819 crore deposits and Rs 40,560 crore advances.
7. IDBI Bank has tied up with Sumitomo of Japan for trading in carbon credits. IFC and Sumitomo would help find buyers in various geographies.This is at least the fourth tie-up the bank has entered into for trading in carbon credits. Earlier, in October 2006, IDBI Bank had tied up with MITCON Consultancy Services Ltd of Pune. MITCON has expertise in project identification and registration of clean development mechanism (CDM) projects with the United Nations Framework Convention on Climate Change.
8. Public sector banks’ (PSBs) lending to minorities is set to once again come under Government scanner. These banks have now been asked to submit to the Government the status of their branch opening efforts in the 121 minority dominated districts of the country.Official sources said that the Finance Minister, Mr P. Chidambaram, is expected to personally review this issue during his meeting with the Chief Executives of PSBs here on August 1.The Government has been advising the PSBs to step up lending to minorities under priority sector. In particular, they have been asked to open more branches in minority dominated districts (as identified by the Ministry) of the country.Besides reviewing the action taken report in respect of decisions taken in the last meeting of April 19, Mr Chidambaram is also likely to evaluate the financial performance of PSBs for the year ended March 31, 2007.
9. Vijaya Bank would be opening its first overseas branch shortly and had already got the RBI assent for the same.The overseas branch would be set up either in Dubai, Hong Kong or in Malaysia.The bank had plans to increase its number of branches to 1,050 by March 2008 and of them at least 30-32 branches would set up in Karnataka. The bank had already received licences for setting up 25 branches.
10. The Central Board of Direct Taxes (CBDT) plans to extend the refund banker scheme to Chennai, Kolkata, Mumbai and Bangalore from September. At present, the scheme is operative in Delhi and Patna. Under the scheme, a scheduled bank is authorised to issue refund instruments on behalf of the income-tax department. In the case of Delhi and Patna, SBI was authorised to issue refund ins truments on behalf of the tax department.
11. Corporation Bank, presented a final dividend cheque of Rs 41 crore to the Union Finance Minister, Mr P. Chidambaram, in New Delhi recently. With this the total payout as dividend for the financial year 2006-07 comes to 90%.
