8 May 2004

Rupee unchanged
Mumbai: The domestic currency closed at 44.66/67 in its value against the dollar on Friday, unchanged from Thursday's closing levels.
Forwards Market: The six-month forward ended at - 0.92 per cent (- 1.10 per cent) and the one-year forward closed at (-0.70).
G-Secs: The 8.07 per cent 2017 paper went to a low of Rs 124.50, while the 7.49 per cent 2017 fell to Rs 118.05/10.
Call rates: were at 4.25 per cent levels in the inter-bank market.

HDFC to go for external borrowings
Mumbai: The Housing Development Finance Corporation (HDFC) will move an enabling resolution at its upcoming annual general meeting seeking shareholder permission for making external commercial borrowings. HDFC borrowed aggressively at lower rates last year raising Rs 7,147 crore from commercial banks, Rs 4,173 crore of which was under the priority sector category of the banks. Refinance of Rs 350 crore was obtained from National Housing Bank.

PNB goes live with RTGS
New Delhi: Punjab National bank (PNB) has announced that it has gone live with Real Time Gross Settlement (RTGS). Introduction of RTGS would enable instant transfer of funds between banks and institutions. PNB has said that it would shortly extend the RTGS facility to its customers all over the country by integrating its Centralised Banking Branch network and structured financial messaging system enabled branches with RTGS system.

SBM to pay 60 per cent
Bangalore: State Bank of Mysore has reported a net profit of Rs 176.38 crore for the year 2003-04, up by 52 per cent over the last fiscal. It has also recommended a 60 per cent dividend.

Deposits stood at Rs 10,860.47 crore in the last fiscal, up by 23.52 per cent over Rs 8,792.71 crore in 2002-03. During the year, the bank's net interest income grew 17.53 per cent to touch Rs 454.4 crore while non-interest income grew to Rs 340.42 crore with sizeable contributions from the Government and treasury business. Gross NPA has come down to Rs 514.53 crore (7.76 per cent) and net NPAs declined to Rs 186.38 crore (2.96 per cent).

HDFC to pay Rs 13.5 as dividend
Mumbai: Housing Development Finance Corporation has reported a 24.6 per cent increase in net profit, year-on-year, for the quarter ended March 31, 2004. Net profit increased to Rs 297.97 crore (Rs 239.19 crore), while income from operations amounted to Rs 824.31 crore (Rs 789.17 crore). Gross profit for the quarter, after interest but before depreciation and tax, rose 19.27 per cent, to Rs 358.83 crore (Rs 300.83 crore). HDFC's net profit for the year 2003-2004 rose 23 per cent to Rs 851.78 crore (Rs 690.29 crore).

Income from operations stood at Rs 3,068.76 crore (Rs 2,967.32 crore). The board of directors of the company has recommended a dividend of Rs 13.5 per share, higher than last year's dividend of Rs 11 per share. HDFC's gross profit for the year amounted to Rs 1,050 crore (Rs 876.73 crore), while depreciation stood at Rs 23.58 crore (Rs 25.7 crore). Profit before tax for the year amounted to Rs 1,026.98 crore (Rs 851.03 crore) while provision for tax stood at Rs 175.2 crore (Rs 160.74 crore) The non-performing asset level was at 0.89 per cent, marginally lower from last year's 0.91 per cent.

Dena Bank net NPAs decline
Mumbai: The bank's net profit has jumped by 102 per cent for the financial year ended March 31, 2004, with its net profit for the fourth quarter ended March 31, 2004, at Rs 58.39 crore against Rs 77.16 crore in the corresponding period the previous year.

In the fourth quarter, a floating provision for NPAs to the tune of Rs 50 crore was made along with a provision of Rs 25 crore for standard assets. The ratio of net NPAs to net advances was at 9.40 per cent (11.83 per cent). Net NPAs of the bank declined to Rs 884.35 crore (Rs 997.28 crore).

ICICI Bank - Ebony co-branded credit card
Mumbai: ICICI Bank Ltd has announced the launch of ICICI Bank Ebony co-branded credit card in collaboration with Ebony, a retail chain in North India. The ICICI Bank-Ebony co-branded card provides a customer 6 reward points for every Rs 100 spent through the card to make a purchase at any one of the Ebony outlets. The customer will be given an option to pay back the amount of purchases made in 3 equal monthly instalments if the amount of purchases made exceeds Rs 2,500. These instalments will not include any financing charges.

7 May 2004

Rupee firms up further
Mumbai: The domestic currency closed at 44.64/67 in its value against the dollar on Thursday, 3 paise higher than Wednesday's closing levels at 44.70.
Forward Market: The six-month segment closed at - 1.10 per cent (-0.15 per cent) and the one-year segment ending at -0.70 per cent (-0.56 per cent).
G-Secs: The 8.07 per cent 2017 opened at Rs 125.10 and closed lower at Rs 124.85, while the 7.37 per cent 2014 opened at 117.50 and fell to Rs 117.40.
Call Rates remained at 4.25 per cent.

ICRA's BPO facility to be operational soon
New Delhi: ICRA Ltd has said that its business process outsourcing facility in Kolkata will be operational by the month-end and that it will cater to the analytical and research-based requirements of diverse users. ICRA has roped in Joydeep Bhattacharya, head of the Indian operations of research body Zacks, to head the BPO venture.

GIC gets AAA rating from CARE
Mumbai: General Insurance Corporation of India (GIC) has booked over Rs 500 crore in profit on sale of investments in the past fiscal. According to the company, the company has earned returns of around 13-14 per cent on its investment corpus of Rs 10,000 crore on a booked cost basis. Meanwhile CARE has assigned a `triple A' rating to the claims-paying ability of GIC.

The rating factors in GIC's status in the insurance industry as the national reinsurer, its dominant market share in the Indian reinsurance market, strong solvency position, low operating leverage and good profitability and liquidity, according to senior CARE officials. According to CARE the GIC also draws strength from 100 per cent government ownership, the key role played by GIC in increasing the retention of a large portion of reinsurance in India, and good prospects for growth in the insurance sector.

Six LoBs for BoB
Kolkata: With a view to becoming more customer-centric, the Bank of Baroda (BoB) has unveiled a business transformation programme whereby it will draw its operation into six distinct units, called Lines of Business (LoB), for the purpose of better customer segmentation. The corporate, business, personal and rural segments along with International operations and global treasury would each form a specific LoB.

6 May 2004

VS Vyas to head RBI Agri-Credit Committee
Mumbai: The Reserve Bank of India (RBI) on Thursday constituted an advisory committee on the flow of credit to agriculture and related activities from the banking system.

Moody's revises ratings of Indian banks
London: Moody's Investors Service has changed the outlook for the long-term foreign currency deposit ratings of a number of Indian banks - currently rated Ba2 - to stable from the negative outlook for India.

F-Ins platform for insurance firms
Hyderabad: Fast Forward Technologies, a Singapore-based software solutions provider for financial and insurance sector with a development cum support centre in Hyderabad, has announced the development of a framework termed F-Ins that enables insurance companies and its stakeholders bring in efficiencies.

ICICI Pru Life's income crosses Rs 1,000 crore
Bangalore: ICICI Prudential Life Insurance Company's premium income has crossed Rs 1,000 crore for the first nine-month period of the current financial year.

Revised IRDA norms for life products
Hyderabad: The Insurance Regulatory and Development Authority has come out with revised guidelines pertaining to the design of life insurance products.

SIDBI approaches World Bank for $200-million loan
Chennai: The Small Industries Development Bank of India (SIDBI) is in talks with the World Bank for a $200-million (about Rs 900-crore) soft loan. The loan will augment the bank's lendable resources and, being a soft loan, also lower the cost of borrowing.

5 May 2004

AIBOC seeks better terms on pay revision
Coimbatore: The All-India Bank Officers' Confederation (AIBOC) has expressed its readiness to cooperate for an early salary revision settlement, while reiterating that it wants the Indian Banks' Association (IBA) to come out with an improved offer. The AIBOC had rejected the earlier offer of an 8.8 per cent increase in the payload. While expressing its confidence of striking a fair deal by mid-June, the AIBOC has advised its members to be ready for an action programme at short notice should expectations prove otherwise.

I-Sec net up 52 per cent
Mumbai: ICICI Securities (I-Sec), the investment banking, equity broking and primary dealership arm of ICICI Bank, has posted a net profit of Rs 164.6 crore for the full year ended March 2004, up 52.2 per cent from Rs 108.2 crore in the previous year. I-Sec has paid a dividend of Rs 91 crore to its parent, ICICI Bank.

Gross income of the consolidated company inclusive of its two US subsidiaries increased 12.7 per cent to Rs 361.1 crore (Rs 320.5 crore). Interest outgo decreased to Rs 63.1 crore (Rs 87.3 crore). The net worth of the company increased to Rs 392.5 crore (Rs 351.1 crore). During the year, it has also achieved a turnover of over Rs 1,00,000 crore in the Government securities market.

United Bank drops rates for educational loans
Kolkata: United Bank of India has reduced the rate of interest on educational loans under the United Educational Loan Scheme by cutting the rates from 10 per cent to nine per cent for loans up to Rs 2 lakh and to 9.5 per cent for loan above Rs 2 lakh but not exceeding Rs 4 lakh. For loan exceeding Rs 4 lakh, the rate of interest has been reduced from 11 per cent to 10 per cent. The revised rates came into force from May 1, 2004, according to a press release issued by UBI.

4 May 2004

Rupee loses 29 paise
Mumbai: The rupee lost 29 paise in its value against the US dollar to close at 44.81/84. G-Secs: The 8.07 per cent 2017 paper ended the day at 5.12 per cent.

Norms for foreign securities under ESOP relaxed
Mumbai: The Reserve Bank of India has relaxed the guidelines for the acquisition of foreign securities under the ESOP scheme, consequent to which, henceforth, such shares need not be offered at a concessional price, and the sale of such shares does not require prior RBI approval, as long as the proceeds are repatriated to India. Necessary amendments to the Foreign Exchange Management, ie., transfer or issue of any foreign security regulations, 2000, are being issued separately, the apex bank said in a circular issued today.

E-commerce gateway: National Financial Switch
Hyderabad: The Hyderabad-based Institute of Development and Research in Banking Technologies, is setting up a National Financial Switch (NFS) that will enable sharing of technology infrastructure. The NFS is expected to go live by July.

The National Financial Switch will serve as a main common switch and facilitate connectivity as an e-commerce payment gateway both for Internet and mobile commerce thereby helping in authenticating and providing route payment details between banks and various parties. According to the IDRBT, the project has both economic advantages and offers wider reach while helps in preventing infrastructure duplication.

Flexcube solution for First Caribbean
Bangalore: i-flex Solutions has signed a deal with Barbados-based First Caribbean International Bank to deploy its Flexcube technology platform. Flexcube is the Internet banking and e-finance platform offering of i-flex Solutions' Flexcube end-to-end banking product suite. First Caribbean services about seven lakh customers across 25 Caribbean islands.

HDFC Standard: 76 per cent rise in premiums
Mumbai: HDFC Standard Life Insurance Company Ltd has recorded a 76 per cent rise in new business premium over the previous financial year at Rs 232.5 crore for the fiscal ended March 31, 2004. The company has also declared the fourth bonus for its policyholders, said a press release. The sum assured crossed the Rs 13,500-crore mark during the year. The company has covered over 450,000 lives so far.

ICICI Lombard: 144 per cent rise in premiums
Mumbai: ICICI Lombard General Insurance Ltd has recorded a 144 per cent rise in its premium income at Rs 506.7 crore for the year ended March 31, 2004, against Rs 207.9 crore in 2002-03.
During the year, the company's branch network expanded to 63 locations from 35 last year, manned by over 600 employees. This has helped the company in covering 2.6 crore individuals, as also 3,000 corporate clients, including over 100 leading PSUs and MNCs, the release said. The company's profit after tax stood at Rs 31.8 crore as against Rs 3.3 crore in the same the previous fiscal, while profit before tax rose to Rs 42.2 crore (Rs 4.2 crore).

3 May 2004

Classified NPAs out of 90-day norm: RBI
New Delhi: The Reserve Bank of India has held that, with effect from March 31, a loan or an advance, other than agricultural advances, would be a NPA if interest and/or instalment of principal remain overdue for a period of more than 90 days. In a communiqué to the Institute of Chartered Accountants of India (ICAI), the RBI has held that any asset classification done by the bank on any date up to and inclusive of March 30 would adopt the 180-day delinquency norm.
From March 31 onwards, the bank will adopt the 90-day delinquency payment norm.

RBI has also held that the 90-day norm should not be applied to accounts already classified as NPA before March 31. It has also held that there would be no need to re-work the asset classification status of account, which has become NPA before March 31, while applying the 90-day norm on March 31.