1. Dena Bank registered a 201 % growth in its first quarter net profit at Rs 55.58 crore, against Rs 18.49 crore in the corresponding quarter of the previous year. The growth in net profit is due to a rise in operating income. “Interest and non-interest income have shown strong growth this quarter”.Interest income Net interest income grew by13.85% to Rs 224.69 crs from Rs 197.36 crs a year ago. Total income for the quarter ended June 2007 increased 30% to Rs 702.42 crs, compared with Rs 539.61 crs in the year-ago period.
2. ING Vysya Bank has reported a net profit of Rs 25.32 crore in the first quarter (Q1) of the current financial year 2007-08 (FY08), a 71.2 per cent increase over Rs 14.79 crore in Q1 of FY07.The bank’s gross income in Q1 FY08 was Rs 486.38 crore up from Rs 364.07 during the corresponding quarter of the previous year. The rise in gross income was driven by a rise in interest income. Interest income rose to Rs 428.47 crore from Rs 321.19 crore driven by improved credit offtake. Advances increased 23.3 per cent to Rs 11,810 crore from Rs 9,578 crore.
3. The Reserve Bank of India has imposed a penalty of Rs 10 lakh on Catholic Syrian Bank Ltd for non-adherence to Know-Your-Customer norms and AML standards while opening and operating certain accounts and failure of the bank’s internal control systems in detecting the irregularities. The RBI had earlier issued a show-cause notice to the bank and on a careful examination of the bank’s reply, the RBI found that the violations were conclusively established and the penalty was accordingly imposed.
4. Bank depositors put a bulk of their money in short-term deposits, especially below one year. Driven partly by the incentive of higher rates for such deposits offered by many banks during the past year, depositors have parked their money across different periods starting from a fortnight to a year and more. Banks offered a rate of 9.5 per cent to 10.5 per cent for deposits of periods ranging from 12 months to 18 months through last year.
5. What if you lose your ATM card and even before you realise it, all your money is drawn and someone just walks away with all that you so dearly earned and saved since years? Banks such as HDFC, HSBC and State Bank of India have taken a step to prevent such frauds and thefts in their ATMs. Some of them have already installed ATMs with anti-fraud mechanism. NCR Corporation, a major player in the field of ATM manufacturing, has introduced a Fraudulent Device Inhibitor to put a check on the rise in the number of frauds. The company is in talks with a couple of private and public sector banks to install ATMs enabled with the device .
6. Bank of India has registered a 51 per cent growth in Q1 net profit at Rs 315 crore, against Rs 209 crore in the corresponding quarter of the previous year. Increase in both interest and non-interest income and higher non-performing assets (NPA) recoveries have boosted profits. Net interest income increased 23.7 per cent to Rs 947 crore (Rs 765 crore). Non-interest income rose 23 per cent to Rs 381 crore (Rs 311 crore).The bank’s net interest margin (domestic) went up from 2.95 per cent to 3.06 per cent. However, net interest margins of foreign businesses declined to 1.2 per cent from 1.3 per cent.
7. Punjab National Bank (PNB) expects to register a 20 per cent increase in net profit this fiscal on the back of a stable interest rate environment and higher business turnover arising from economic growth. For the first quarter ended June 30, 2007, it has reported 15.7 per cent increase in net profit to Rs 425.07 crore compared with Rs 367.52 crore in the same period last year. This bottomline growth came even as the net interest margin (NIM) saw a decline from 4.07 per cent as on March 30, 2007 to 3.82 per cent as on June 30, 2007. “In a competitive environment, high NIMs are not sustainable. Do not ridicule a bank just because its NIM is coming down. Even though its NIM has come down, the Bank has increased its net profits by 15.7 per cent. It wants to maintain our NIM at 3.75-3.8 per cent levels.
8. Backed by a growth in its fee-based income, IndusInd Bank has posted a 65.04 per cent growth in its net profit for the quarter ended June 30, 2007 to Rs 13.22 crore from Rs 8.01 crore in the corresponding quarter of the previous year. The fee-based income was up 53.34 per cent to Rs 22.28 crore (Rs 14.53 crore).
