26 january 2002
venture launches powerplus
chennai: indian oil corporation and sundaram finance
ltd have announced the launch of their co-branded, value-added,
fleet card- powerplus. the card will be available in two
options-debit and credit card.
initially, the marketing alliance will be rolled out in select
trunk routes in southern states and in 26 select indian oil
outlets. in about 8 to 12 months time, powerplus fleet card will
be available nationally.
while the debit card will carry negligible operating expenses, the
credit card will carry an interest charge of 16 per cent, the
lowest among electronic card payment plans on offer.
25 january 2002
icici net rises
mumbai: icici reported a net profit rise of 1.27 per
cent in the october-december quarter from a year ago.
icici posted a net profit of rs 2,56.15 crore in the december
quarter compared with rs 2,52.93 crore a year ago.
24 january 2002
pnb gilts q3 net
pnb gilts reported over 50 per cent dip in net profit to rs 38.03
crore in the third-quarter of the present fiscal as against rs
58.01 crore in the corresponding period of the previous year due
to write-offs for depreciation.
however, it also posted 343 per cent rise in its net profit at rs
83.63 crore for the first nine months of 2001-02, as compared to
rs 18.85 crore.
the fall in net profit for the latest quarter was on account of
write-offs for depreciation in the previous year, which witnessed
heavy pressure on rupee and interest rates.
total turnover stood at rs 177.56 crore in the first nine months,
up by 28 per cent from the previous year period figure of rs
138.92 crore on account of increased trading in the market.
pnb gilts would also venture into derivatives, apart from opening
a branch in bangalore for focusing on non-wholesale clients.
okays jv with chubb
the board of housing development finance corporation (hdfc) has
approved a plan to set up a general insurance company jointly with
us insurer chubb corp.
the board, subject to the
receipt of requisite licence from insurance regulatory development
authority (irda), approved in principle the proposal to set up a
joint venture company between the corporation and chubb global
financial services corp usa for the business of general insurance.
corp bank q3
profit up 10.2%
corporation bank has posted a 10.2 per cent rise in net profit at
rs 91.45 crore for the third quarter ended december 2001, compared
to rs 82.96 crore in the same period of the previous fiscal.
total income in the quarter was up by 15.5 per cent at rs 602.08
crore as against rs 521.10 crore in q3 of last fiscal.
the total interest income
was higher at rs 500.12 crore, a rise of 10.6 per cent (rs 452
crore in q3 of last year). provisioning of bad and doubtful debts
was lower at rs 17.70 crore (rs 23.15 crore).
for nine months ended december 2001, the net profit swelled by
21.3 per cent to rs 262.73 crore (rs 216.52 crore) while the total
income stood at rs 1,744.17 crore (rs 1,532.94 crore).
uti bank may
issue shares to lic
mumbai: uti bank is in talks with life insurance
corporation for making a preferential allotment of equity. the
proposed move is aimed at lowering utis holding in the bank to
40 per cent from 44.9 per cent by 31 march.
uti bank had earlier placed 26 per cent equity stake with south
asia regional fund and cdc financial services (mauritius), which
are among the funds managed by cdc capital partners. the equity
placement at rs 34 a share helped in lowering the uti holding in
the bank to 44.9 per cent from 60.7 per cent.
the present negotiations with lic for raising fresh capital and
diluting the parents holding is aimed towards fulfilling the
instruction of the reserve bank of india.
interest in arc
new delhi: asian development bank has evinced
interest in the proposed asset reconstruction company for tackling
the over rs 56,000-crore non-performing assets.
the arc, for which a presentation had been made to the finance
minister, would be set up with an initial equity capital of rs 200
crore, while the government might provide some funds for the
equity of the company, which would be mainly floated by banks.
the working group on arc comprised officials from rbi, banking
division of finance ministry, indian banks association and select
the government intends to ensure that the arc, which would buy out
npas of banks and try to recover it, does not get sick itself
after some years.
safety rating for sundaram finance
sundaram finance's rs 150 crore medium term debenture and rs 50
crore short term debt issues have been assigned the highest safety
rating by credit rating agency icra.
icra also retained the highest safety rating to its fixed deposit
programme, apart from re-assigning the same safety to rs eight
crore long term debenture after factoring in the strong franchise
and its ability to generate good quality assets in the core
retails business even amid recessionary market conditions.
icra cautioned that
increased competition in the financial services industry and the
sustained pressure on the lending rates were expected to impact
profitability over the long term.
23 january 2002
icici bank profit
icici banks net profit for the quarter ending december 2001
stood at rs 70 crore, marking a 73 per cent rise from the same
quarter a year ago. the total income in the quarter has also gone
up by 51 per cent to rs 717 crore.
sbi sets up
state bank of india has launched its own payment gateway system
which will make funds transfers from one customer to another
within one hour. sbi is using its own v-sat network to facilitate
speedier transactions through the payment gateway. transactions
originating from the sbi branches are now being routed through the
reserve bank's v-sat hub in hyderabad before being directed to the
bank's own central hub in mumbai
pf board recommends
9.5% interest rate
the board of trustees of the employees provident fund has
recommended a steady 9.5 per cent interest rate on the fund for
the fund managed around rs 59,939 crore as on 31 december 2001.
the rate on this scheme is one of the benchmarks for long-term
psu banks to be
the government has decided to decentralise recruitment of bank
officers and do away with setting up of a banking services
commission for the purpose.
a bill to repeal the banking service commission act would be
introduced in the budget session of parliament.
the modified system is aimed at helping reduce the regional
imbalances and providing flexibility to the banks in conducting
examinations as per their requirments.
bank of india's rs 160-crore tier-ii bond issue for a tenor of 63
months was oversubscribed. the base issue was of rs 100-crore and
had a greenshoe option of rs 60-crore, said a press release.
the issue, which received
`aa+' rating from the credit rating information services of india
(crisil), was priced at 9.20 per cent
22 january 2002
hdfc cover for home
housing development finance corporation (hdfc) has launched home
loan insurance cover from hdfc standard life for its customers.
a customer taking a home loan from hdfc will now be given an
option to buy this policy for the loan sanctioned by the housing
under the scheme, in the eventuality of any mishap, and if the
customer opts for this policy, the surviving family members do not
have to repay the loan amount.
hdfc also has an option to finance the custmer's acquisition of
the insurance package. there are two options before the consumer:
pay the premium in one go, or in 10 or 15 instalments. customers
paying annual premium for 10 or 15 years will get full benefits if
they die during the cover period.
hdfc expects 70 per cent of its 800,000 existing home loan
customers to opt for this new scheme.
privilege card launched
punjab national bank has launched 'pnb privilege card', a
pre-approved personal loan. the card, which would be automatically
issued to all its eligible customers, would entitle holders a
maximum loan of upto rs 1 lakh.
the card is expected to benefit army officers, educational
institutions, government employees and psus.
teams up with chubb
development finance corporation (hdfc) has finalised its foray
into the non-life insurance sector along with collaborator chubb
corporations of the us.
the joint venture between
chubb and hdfc will be the seventh non-life company in the country
where only reliance industries has gone solo for the business.
chubb will have a maximum
26 per cent stake while the remaining 74 per cent will be held by
hdfc with a minimum capital of rs 100 crore.
however, for all
practical purposes, both the partners will have equal say in the
running of the joint venture.
mr deepak parekh,
chairman of hdfc, will be chairman of the company while the chief
executive officer of the company will be from chubb corporations.
21 january 2002
promoters hike stake
mumbai: promoters of vysya bank have hiked their
equity holding in the bank by 4.7 per cent through creeping
at present, the promoters hold 28.10 per cent against 23.4 per
cent as on 30 september 2001.
the shares were bought by the promoters primarily from foreign
institutional investors and private corporate bodies.
idbi to get
$100-m loc from adb
idbi has got a line of credit of $100 million from the asian
development bank. idbi has also reached the final stages of an
arrangement with kfw of germany for co-financing of infrastructure
the funds will be lent against private infrastructure projects in
karnataka, andhra pradesh, gujarat and madhya pradesh.
the duration of loan from adb will be 20 years on floating rate
the kfw deal is being negotiated and is likely to be taken up at
the latest indo-german meeting. kfw is a development bank for
developing countries that operates on behalf of the german
partner for fin arm
arun firodia-controlled kinetic group is planning to rope in an
equity partner for its finance outfit, kinetic finance.
kinetic finance is likely to finance 1.3 lakh kinetic two wheelers
with a disbursal of around rs 250 crore in the current fiscal.
the firodias are looking at the option of joining hands with a
foreign bank or a financial institution to bring the advantage of
lower cost of capital to the business.
pnb to float
ipo by march
the punjab national bank (pnb) plans to offer 4 crore shares in
the primary market by the end of the current financial year. the
bank, which would offer about 15 per cent of its equity, is
approaching the securities and exchange board of india (sebi) with
its prospectus shortly.
pnb's ipo is expected to
be at a fixed price. the banks share has a book value of rs
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