IFCI merger with PNB gets board nod
New Delhi: Approval has been granted for Punjab National Bank's (PNB) buyout of India's oldest term-lending institution, IFCI Ltd. The move towards the merger has been given in-principle clearance by the board of directors of both PNB and IFCI at meetings held in Mumbai and New Delhi, respectively.
The merger moves has been catalysed by the ministry of finance that was keen to end the troubles of the ailing IFCI that had been making repeated sorties to the government for assistance. Finance Minister Jaswant Singh has recently said that IFCI will be merged with a public sector bank by 1 April 2004.

SBI net profit increases 16% in Q3
Mumbai: State Bank of India (SBI) has reported a net profit of Rs 919.44 crore for the third quarter ended 31 December 2003. This shows a rise of 16 per cent over the corresponding quarter last year.

The bank however, recorded a fall of 5.6 per cent in its total income to Rs 8,559.34 crore during the quarter largely on account of the 17.59 per cent fall in other income and a 3.47 per cent decrease in interest earnings.

IRDA likely to up ceiling on investment in mutual funds
Kolkata: The Insurance Regulatory and Development Authority (IRDA), which has recently allowed insurance companies to invest their temporary surplus funds in derivatives-linked mutual funds to the extent to 50 per cent, is likely to review the cap and consider raising it after some time.

The authority has also decided against allowing them to invest in equity linked mutual funds.

30 January 2004

ICICI Bank Q3 net up 33 per cent
Mumbai: ICICI Bank has posted a 33 per cent rise in net profit at Rs 440.1 crore for the third quarter ended December 31, 2003, up from Rs 330.3 crore in the corresponding quarter of the previous fiscal.

IDFC, NEC sign MoU on North East infrastructure
Mumbai: The Infrastructure Development Finance Company Ltd signed a memorandum of understanding on Tuesday with North East Council to impart greater momentum to infrastructure development in the North East region.

BoI Q3 net up 16 per cent
Mumbai: Bank of India has recorded a 16.07 per cent growth in net profit at Rs 228.54 crore for the quarter ended December 31 last as against a net profit of Rs 196.89 during the corresponding quarter of the previous year.

Dewan Housing income, net profit increase
Mumbai: Dewan Housing Finance Ltd has announced a 23 per cent increase in net profit at Rs 6.3 crore for the third quarter ended December 2003, up from Rs 5.12 crore during the corresponding previous period.

29 January 2004

Rupee remains steady
Mumbai: The rupee on Wednesday closed steady at 45.3450/3500 in its value against the dollar on account of active intervention by the central bank, said forex dealers. The domestic currency had opened at Tuesday's closing level of 45.3500/3550.
The market witnessed good supplies of the dollar and amidst no corporate demand for the greenback, it was mopped up by the RBI, said a forex dealer in a private bank. The intra-day high was 45.3575, while the intra-day low was 45.3325.

LIC Housing net profit up at Rs 45 crore
Mumbai: LIC Housing Finance has reported a 9.4 per cent increase in net profit at Rs 45.23 crore for the quarter ended December 31, 2003 against Rs 41.34 crore during the corresponding year-ago quarter.

The board of directors has given its approval to enhance the equity capital by issuing 10 million equity shares by way of private placement or through a GDR offering. It is in the process of finalising the structure of the issue, according to a news release from LIC Housing Finance. The net profit increase was on account of lower expenses as well as deferred tax asset.

IOB net profit up 57%
Chennai: Indian Overseas Bank has achieved a higher net profit of Rs 435.41 crore for the first nine months of the current year, compared with Rs 277.87 crore in the corresponding period of last year - a rise of 56.76 per cent.

Net credit increased during the nine-month period by Rs 1,848 crore compared with Rs 1,798 crore in the corresponding period last year. Operating profit increased to Rs 959.30 crore, up 61 per cent from Rs 596.46 crore previously. IOB chairman and managing director S C Gupta said 64 per cent of the operating profit came from the bank's "core operations" - lending. He said the bank's dependence on other income, mainly income from treasury operations, had been coming down.

Dena Bank Q3 net up at Rs 71.85 crore
Mumbai: Dena Bank Ltd has recorded a 186.94 per cent rise in net profit at Rs 71.85 crore for the third quarter ended December 31, 2003 compared to a net profit of Rs 25.04 crore for the corresponding period in the previous year. Total income of the bank during this period has increased to Rs 584.67 crore (Rs 532.08 crore), said a press release. Interest income has gone up to Rs 444.44 crore (Rs 422.86 crore).

Non-Interest income is at Rs 140.23 crore ( Rs 109.22 crore). Interest expended has gone down to Rs 306.19 crore (Rs 278.74 crore). Capital adequacy ratio of the bank is now at 8.64 per cent (6.02 per cent).

RBI says FDI inflow slowed during last fiscal
Mumbai: Inflows of foreign direct investment have slowed down in 2002-03 in tune with the global scenario while Indian investments overseas in recent years have increased significantly reflecting the global outreach of Indian companies, according to the Reserve Bank of India.

While the cumulative FDI in the country has been over $30 billion over the period 1990-91 to 2002-03, the actual investment outflows during the financial year 2002-03 alone were placed at $654 million, as compared with outflows of $469 million during 2001-02, according to RBI's report on Currency and Finance, 2002-03. In fact, during April-November 2003, outflows amounted to $702 million. The report observes that although both India and China received large flows in the 1990s, FDI flows to China are ten times of that in respect of India.

RBI says inflation will not attain downward bias
Mumbai: Notwithstanding the fact that the Reserve Bank of India maintains its inflation forecast range of 4-4.5 per cent, the downward bias "may not be attainable,' said RBI's recently published, Report on Currency & Finance 2002-03. According to the report, the uncertainty of global oil prices and likelihood of rising inflation in many advanced countries could lead to higher inflation in India.

The RBI's mid-term policy review in November 2003 had indicated an inflation forecast of 4-4.5 per cent with a downward bias. However, the inflation rate has been rising steadily in recent months and the point-to-point inflation rate was at 6.1 per cent in the first week of January. According to the report, the magnitude of price rise in the past two months has been above the original expectations. This increase in inflation appears to be mainly on account of rise in prices of crude oil, cotton textiles and oil seeds.

28 January 2004

Rupee remains steady
Mumbai: The rupee closed at 45.35/3550 per dollar on Tuesday, almost unchanged from Saturday's closing at 45.3575. After opening the day at 45.36/37, the domestic currency remained in a narrow four paise band, touching a high of 45.34 in a lacklustre forex market.

Dealers were quoted as saying that the rupee continues to remain steady largely due to absence of demand for the greenback. However, some dealers feel that by the end of the week, the rupee may fall a little on account of the usual month-end demand for dollars.

Kotak Mahindra Bank net spurts 68%
Mumbai: Kotak Mahindra Bank has staged a 67.8 per cent jump in net profit for the third quarter ended December 31, 2003, at Rs 18.95 crore, up from Rs 11.29 crore in the corresponding period of the previous year. The net interest income jumped 147 per cent to Rs 39.46 crore, up from Rs 15.96 crore in December 2002 period, mostly due to the conversion of the NBFC into a bank which has facilitated lower cost deposits and more lending opportunities for the entity.

The conversion into a bank took place in February 2003 and therefore these results are not comparable with those of December 2002. The total income increased to Rs 95.66 crore (Rs 58.51 crore) and total expenditure increased to Rs 65.96 crore (Rs 41.10 crore), said a press release from the bank.

IDBI Bank posts 32.5% net profit in Q3
Mumbai: With higher margins from core banking business and increase in fee income, IDBI Bank has registered a 32.5 per cent increase in net profit at Rs 36.3 crore for the third quarter ended December 31, 2003 up from Rs 27.4 crore in the corresponding period of the previous year.

While the net interest income jumped 67 per cent to Rs 88.8 crore (Rs 53.1 crore) and the fee income staged a 36.3 per cent increase to Rs 46.5 crore (Rs 34.1 crore), trading fees dropped to Rs 3.6 crore (Rs 24.6 crore). The bank's total income increased to Rs 138.9 crore up (Rs 111.8 crore) and total expenditure increased to Rs 185 crore ( (Rs 147 crore).

SBI Cap, ASCI join hands to tap advisory space
Mumbai: SBI Capital Markets, Mumbai, and the Administrative Staff College of India (ASCI), Hyderabad, have signed a memorandum of agreement (MoA) to work together in infrastructure advisory opportunities. The period of the MoA is valid till the end of January 2005 and extendable by mutual consent. Indrajit Gupta, MD and CEO of SBI Cap, and Dr E A S Sarma, principal, ASCI, signed the MoA.

SBI Caps, a subsidiary of SBI, offers the entire range of investment banking, advisory and financial services. ASCI, which was set up in 1956 at the initiative of the Indian industry and the government, is a leading research, training and consulting institute with a strong urban management focus.

27 January 2004

Finance Ministry plans single insurance law
New Delhi: The enacting making of single insurance law has taken a major step forward with the Ministry of Finance concurring with the Law Commission on the need to club the two major existing insurance laws - the Insurance Act, 1938 and the Insurance Regulatory and Development Authority Act, 1999, into a single legislation.

Andhra Bank, UTI Bank to share ATMs
Hyderabad: Andhra Bank has entered into an agreement with UTI Bank for sharing their automated teller machines spread across the country. The arrangement would be operational from Monday.

Govt likely to supersede Lloyds board
New Delhi: Government is believed to have decided to place its own directors, including representatives of fixed deposit investors' forum, on the board of Mumbai-based Lloyds Finance after the company's repeated failure to repay dues of its fixed deposit holders.