Category: Bank

Naidu asks NBCC to forge more partnerships with States

Naidu asks NBCC to forge more partnerships with States

06/10/2016 17:11

State-run National Buildings Construction Corporation (NBCC) on Thursday presented a dividend Cheque of Rs.108 cr for 2015-16 to minister of urban development M.Venkaiah Naidu.

Complimenting NBCC for sustained increase in turn over and profits over the last few years, Naidu asked the company management to further expand and diversify its business profile by forging partnerships with State Governments and other agencies.

The minister also directed the management to immediately initiate action on seven redevelopment projects in Delhi entailing an investment of about Rs 35,000 cr, recently approved by the Union Cabinet. Naidu discussed in detail the progress of ongoing projects and future initiatives of NBCC.

A.K.Mittal, Chairman and Managing Director of NBCC informed the minister that the company has acquired new project orders for Rs 17,516 cr during 2015-16 and with total work orders of over Rs 70,000 cr, NBCC is the second largest construction company in the country. The company has declared a total dividend of Rs 120 cr for 2015-16 of which the Government’s share was Rs 108 cr.

NBCC has recorded the highest revenue of Rs 5,838 cr during 2015-16, marking an increase of 32 per cent over the previous fiscal.

Karur Vysya Bank revises marginal cost based lending rates

Karur Vysya Bank revises marginal cost based lending rates

06/10/2016 16:00

Private sector lender Karur Vysya Bank Ltd on Thursday said that it has revised its marginal cost of fund based lending rate (MCLR) effective from October 07, 2016.

The lender has fixed its MCLRs for loans of different time intervals ranging from ‘overnight’ to ‘one-year’ duration. These rates are varing in the range of 9.50 per cent to 9.90 per cent.

The bank has finalised 9.50 per cent rate for its ‘overnight’, ‘one-month’ and ‘three-month’ MCLR benchmark, the bank said in a filing to the BSE.

On the other hand, the private sector lender has set 9.70 per cent rate for its ‘six-month’ period MCLR while ‘one-year’ period MCLR has been set at 9.90 per cent.

Meanwhile, shares of the bank closed at Rs 476.90 apiece, up 0.07 per cent, from previous close on BSE.

Sushil Chandra appointed as CBDT chief

Sushil Chandra appointed as CBDT chief

06/10/2016 11:26

Senior Indian Revenue Service officer Sushil Chandra has been appointed as chairperson of the Central Board of Direct Taxes (CBDT), the apex policy making body for the Income Tax department.

He will replace Rani Singh Nair, who retires this month-end.

Chandra, a 1980 batch officer of Indian Revenue Service (Income Tax cadre), is currently Member (Investigation) of the CBDT.

The Appointments Committee of the Cabinet approved the appointment of Chandra as Chairperson of the CBDT to replace Nair, who is superannuating on October 31, an order issued by Department of Personnel and Training said.

IIT graduate Chandra’s tenure will last till May next year, official sources said.

Nair, a 1979 batch IRS officer, had taken over as CBDT chief on August 1 this year, said the media report.

The CBDT is headed by a chairman and can have a maximum of six members.

Markets continue to hover in red; ONGC, Axis Bank weigh

Markets continue to hover in red; ONGC, Axis Bank weigh

05/10/2016 14:26

The key domestic benchmark indices continued to hover in red during the late noon trading session tracking weak cues from the European counters.

At 14:20 hours, the 30-share benchmark index was trading at 28258.32 down by 76.23 points or by 0.27 per cent, while the NSE Nifty was at 8759.4 down by 9.75 points or by 0.11 per cent.

Investor sentiment was dampened as Nikkei India Services Business Activity Index eased to 52 in September from 54.7 in August, pointing to a slower and moderate rate of expansion. Sentiments also remained subdued with a World Bank research predicting that the proportion of jobs threatened in India by automation is 69 per cent and in China it is 77 per cent.

In the choppy trade so-far, Sensex touched an intraday high of 28477.65 and an intraday low of 28209.19, while the NSE Nifty touched an intraday high of 8806.95 and an intraday low of 8731.4.

The top gainers of the BSE Sensex pack were Asian Paints Ltd. (Rs. 1207.00,+1.23%), State Bank of India (Rs. 262.40,+1.22%), Hindustan Unilever Ltd. (Rs. 869.75,+1.14%), Tata Motors Ltd. (Rs. 555.60,+1.14%), Maruti Suzuki India Ltd. (Rs. 5729.35,+0.87%), among others.

The top losers of the BSE Sensex pack were Oil And Natural Gas Corporation Ltd. (Rs. 267.20,-2.39%), Axis Bank Ltd. (Rs. 537.40,-1.72%), Mahindra & Mahindra Ltd. (Rs. 1398.00,-1.23%), Bajaj Auto Ltd. (Rs. 2859.95,-1.19%), Hero MotoCorp Ltd. (Rs. 3495.00,-1.03%), among others.

Among the sectors, IT index was at 10254.48 down by -57.59 points or by -0.56%. Mastek Ltd. (Rs. 131.70,-4.11%), Intrasoft Technologies Ltd. (Rs. 415.00,-1.91%), Moser Baer India Ltd. (Rs. 7.78,-1.89%), Majesco Ltd. (Rs. 475.20,-1.83%), 3i Infotech Ltd. (Rs. 5.88,-1.67%),.

The Market breadth, indicating the overall strength of the market, was weak. On BSE out of total shares traded 2981 , shares advanced were 1727 while 1122 shares declined and 132 were unchanged.

On the global front, Asian peers ended the day on a positive note, while European counters were hovering in red on reports that the European Central Bank’s governing council had reached an informal consensus on winding down its quantitative easing programme.

HSBC sees inflation below RBI’s 2017 target, room for rate cut

HSBC sees inflation below RBI’s 2017 target, room for rate cut

30/09/2016 14:59

Inflation is likely to remain below the Reserve Bank’s early 2017 target of 5 per cent for the next 12 months, opening up space for monetary easing, says an HSBC report according to PTI.

According to the global financial services major, the declining trend in inflation is expected to continue as new crop streams into the market and CPI inflation could fall to under 4.5 per cent in January-March 2017.

Moreover, vegetable prices are expected to completely reverse their summer ascent and higher pulse production may reduce inflation by another 40 bps.

“RBI has two objectives – to reach its 5 per cent inflation target in early 2017 and keep real rates at the 1.5-2 per cent range. Marrying the two would open up space for easing by 50 bps,” HSBC said as per the PTI report.

HSBC expects a 25 bps rate cut at both December and February policy meetings.

The next policy review meet is scheduled to be held on October 4.

It will also be the first review under new RBI Governor Urjit Patel, who has assumed charge effective September 4, after the end of his predecessor Raghuram Rajan’s three-year tenure.

Though there are some good reasons for a rate cut in the upcoming October 4 meeting, yet HSBC’s base case is for a rate cut in December rather than October.

“This is because, by December, two new inflation prints, which are expected to be well below 5 per cent, will be available,” the report noted.

According to HSBC, the commentary on the October meeting would be “dovish” and the central bank is expected to continue infusing liquidity into the banking system by buying dollars and government bonds.

“Our estimates point to a balance of payments (BoP) surplus of USD 25 billion in 2016-17, and given the possibility of currency leakage to the tune of Rs 2.5 trillion this year, we expect bond purchases to continue at a rapid clip, given that RBI wants to move closer to its aim of closing the rupee deficit,” it said as per the PTI report.

The second half of 2017 may see some policy-related upside risks to inflation such as the second round effect of the government wage hikes and a temporary hardening of inflation if GST rates are over 18 per cent.

“In light of these risks and RBI’s desire to eventually move towards the mid-point of the 4 per cent (+/-) 2 per cent band, we expect the 50 bps rate cuts to be the last in the cycle,” HSBC said.

RBI cancels registration of two companies

RBI cancels registration of two companies

26/09/2016 11:25

The Reserve Bank of India has cancelled registration certificate of two non-banking financial companies while two other firms have surrendered their licences.

SP Global Finance and Investment, Nashik and Skylark Deposit and Advances of Ludhiana are the two companies whose certificates have been cancelled, RBI said in a release.

Those submitted there licences are Delhi-based Das Securities and Guwahati’s Pooja Finance Ltd, it said.

SBI may relocate some branches after its merger: Bhattacharya

SBI may relocate some branches after its merger: Bhattacharya

08/09/2016 10:45

The State Bank of India (SBI) has said that it may relocate some branches after the merger of its associate banks into its fold, but none of them will be shut down.

Commenting on the issue, State Bank of India Chairperson Arundhati Bhattacharya told the media, “I don’t believe we will be closing down any branches. This is one area that is getting a lot of adverse publicity. We will be working with the synergies.”

“Obviously, if the same building has branches of three associate banks, it doesn’t make sense to keep them open. If that branch is moved away 60 km, it will have a better reach. We will be relocating a few of them,” she added.

As per reports, the merged entity, which will have a network of more than 24,000 branches, will continue to have the same number of branches.

Crude oil rises on Iranian production sentiment

Crude oil rises on Iranian production sentiment

26/08/2016 08:53

Crude oil futures closed higher in the domestic market on Thursday in the wake of a larger-than-expected increase in U.S. crude inventories.

The news that Iranian production had stalled sent the bulls out in force once again. According to the latest data published by the country’s state oil company, production for July came in at 3.85m barrels per day (bpd), little changed from the 3.8m bpd noted in June.

At the MCX, Crude oil futures for September 2016 contract closed at Rs. 3164 per barrel, up by 0.51 per cent, after opening at Rs. 3242, against the previous closing price of Rs. 3148. It touched the intra-day high of Rs. 3179.

Doha Bank set for Kerala foray

Doha Bank set for Kerala foray

19/08/2016 12:35

According to media reports, Doha Bank, which is one of the top private commercial banks in Qatar, is set to open a state-of-the art branch in Kochi in Kerala, next week.

The Kochi branch which will be located in the LULU International shopping Mall at Edapally, is set to be inaugurated by the Honourable Chief Minister of Kerala H.E. Mr. Pinarayi Vijayan on August 27, 2016 with senior Kerala government functionaries, senior businessmen from Qatar, Board Members of Doha Bank and some distinguished local corporates having business interest in the GCC to be present on the occasion.

“Doha Bank is set to inaugurate the state of the art branch in Kochi, the only branch of a GCC based bank in India”, the company said in a press release.

The Kochi branch will cater to the needs of India’s massive NRI contingent, both in Kerala and in the Gulf.

Doha Bank which started its operations in Mumbai last April is engaged in providing full-fledged banking services which includes Corporate Banking, Retail banking, Treasury, Trade finance and foreign exchange services to its customers.

The bank provides technology driven customer centric solutions to include Internet banking, Mobile banking, App based solutions, instant e-remittances solutions etc.

Public sector banks losing market share to new private banks

Public sector banks losing market share to new private banks

18/08/2016 15:10

Foreign and nationalised banks have lost share of primary banking relationships to new private banks, according to A FICCI-IBA-BCG report.

Primary banks have further increased their share of wallet by 10 per cent, implying that corporates are consolidating towards a two-bank model. Better alignment on pricing leads to nearly 13 per cent more share of wallet for banks is also seen, highlighted the report.

The survey report reveals that corporates are well aware of banks’ digital offerings and are willing to adopt them, but it needs persistence from their relationship managers. A three-fold increase in corporate banking activities on mobile devices over the next five years is projected by some 475 respondents. In terms of corporate banking business, the survey notes that banks with high advocacy had 15 per cent more share of wallet than those with low advocacy.

Further, large public sector banks seem to be setting the pace for financial inclusion. They clearly outperform new private banks in this regards with almost twice the number of business correspondent outlets per bank. The proportion of zero balance Pradhan Mantri Jan Dhan Yojana accounts has significantly reduced with the impact of direct benefits transfer coming through.

The survey reveals that digital transactions have increased by 70 per cent over last year while bank branches have decreased. Moreover, installation of self-service machines has also increased by 70 per cent. However, despite the much talked about digital wave. Banks are still ramping up branch presence aggressively in anticipation of a bionic future. New private banks have actually increased their branch presence by 20 per cent over the last year.