Bank of India said that it has introduced a 2 tier saving bank rate with effect from August 24, 2017.
The interest rate on balance up to Rs 50 lakh will be at 3.5 per cent and the interest rate on balance above Rs 50 lakh will be at 4 per cent, the Bank said in a filing to the Bombay Stock Exchange.
Bank of India offers wide range of services such as Personal banking, Corporate, Rural, MSME, Retail, NRI services, Cards/ATM etc.
Meanwhile, shares of the Bank were trading at Rs 142.45 apiece, down 0.84 per cent from the previous close at 12:50 hours on BSE.
Commenting on the issue, a British brokerage HSBC Official told the media, “We expect the RBI to be on a prolonged pause from here onwards with the risk of a 0.25 per cent rate cut (to our assumption) by the year-end if retail inflation undershoots the 4 per cent target by a comfortable margin.”
The brokerage attributed the jump in inflation numbers to rising vegetable prices, but underlined that core inflation excluding food, fuel ticked up after moderating for three straight months.
“We expect the HRA impact to show up further over the next six months. Thankfully, the RBI has mentioned that it will overlook this direct statistical impact of HRA, so prima facie, the rise in core inflation is nothing to worry about,” he added.
“The public sector lender had posted standalone net loss of Rs 440.56 crore in the same period last year,” said UCO Bank in a filing to the Bombay Stock Exchange.
Interest income of the bank declined by 10.10 per cent at Rs 3766.58 crore for the quarter ended June 30, 2017 as against Rs 4189.64 crore in the corresponding period last year.
During the April-June quarter, total income dipped moderately by 10.38 per cent to Rs 4,237.04 crore from Rs 4,727.93 crore in the year ago period.
Meanwhile, operating expenses dropped by 7.40 per cent to Rs 3,627.96 crore from Rs 3,917.77 crore in the same period last year.
Operating profit slipped 24.82 per cent to Rs 609.08 crore from Rs. 810.16 crore.
Provisions and Contingencies surged by 1.73 per cent at Rs 1,272.10 crore from Rs 1,250.50 crore a year ago.
NII, the difference between interest earned on loans and interest paid on deposits, slipped by 14.61 per cent at Rs 841.47 crore versus Rs 985.45 crore in the year ago period. Non-interest income too dipped 12.60 per cent year-on-year to Rs 470.46 crore.
On the asset side, gross non- performing assets (NPAs) rose to 19.87 per cent of the gross advances as at the end of June 30, 2017 from a level of 17.19 per cent year earlier. Its net NPAs or bad loans too increased to 10.63 per cent of net advances on June 30, 2017 from 10.04 per cent a year ago.
Meanwhile, shares of the bank closed day’s trade at Rs 33.20 apiece, down 1.04 per cent, on the BSE.
IDBI Bank’s shareholders have approved a proposal to raise up to Rs 10,000 crore through various modes including QIP, reported PTI.
The decision was taken at the bank’s annual general meeting, IDBI Bank said in a regulatory filing.
IDBI Bank said among the resolutions passed at the AGM were the issue of shares aggregating up to Rs 5,000 crore through various modes of issue including qualified institutions placement (QIP). And mobilisation in one or more tranches up to Rs 5,000 crore comprising of bonds by way of private placement/public issue.
Earlier in June, the bank had said that it requires to maintain its tier-1 capital and in view of ongoing expansion plans, implementation of Basel III norms and consequential capital charge, there is a “need to increase the capital to further strengthen the capital adequacy ratio.”
“The executive committee of the central board of the bank at a meeting, accorded the final approval for divestment of SBIs stake in SBI Life through an IPO,” SBI said in an exchange filing.
Earlier, the insurance regulator Irdai approved SBI Lifes Rs 7,000 crore IPO application, making it the largest share sale by a life insurer in the country. But the company is awaiting the final approval from the markets watchdog Sebi.
Pending all the approvals from all regulators, the board has decided to go ahead with the share sale of up to 8 crore equity shares, the price of which will be fixed later in consultation with selling shareholders-the parent SBI, and the foreign partner BNP Paribas Cardiff, the filing said.
SBI Life has hired BNP Paribas, Citi, Kotak Investment Bank and Axis Capital to manage the initial share sale.
SBI Life is a joint venture between State Bank and BNP Paribas Cardiff in which SBI holds 70.1 per cent and BNP Paribas Cardiff 26 per cent. Private equity firm KKR and Singapore-government owned investment company Temasek hold 1.95 per cent each in the life insurer.
The company is expected to file draft share sale documents with the Sebi in the next few weeks.
SBI Life is the second largest private life insurer after ICICI Prudential. In December, KKR and Temasek bought 1.95 per cent each at Rs 460 per share, which valued the insurer at Rs 46,000 crore.
Last year, ICICI Prudential mopped up Rs 6,057 crore through an IPO and became the first life insurer to go public, valuing the company at Rs 48,000 crore.
“A meeting of the board of directors of Yes Bank will be held on July 26, 2017 to consider sub-division of equity shares of the bank of the face value of Rs 10 each,” the bank said in a filing to the Bombay Stock Exchange.
However, the bank did not provide any further details on the ratio in which the shares will be divided.
Companies generally go for a stock division to improve liquidity of its shares in the stock market and to make them affordable to the small investors.
Meanwhile, shares of the Bank were trading at Rs 1490.05 apiece, down 0.22 per cent from the previous close at 12:35 hours on BSE.
As per reports, earlier, the Reserve Bank had advised the banks to avoid unreadable entries in passbooks/statements of account and ensure that brief, intelligible particulars are invariably entered with a view to avoiding inconvenience to depositors.
Commenting on the issue, a RBI Official told the media, “It has come to RBI’s notice that many lenders still do not provide adequate details. In the interest of better customer service, it has been decided that banks shall at a minimum provide the relevant details in respect of entries in the accounts.”
As per reports, the details to be provided by banks in passbooks, include name of the payee, mode of transaction, nature of the charges (like fee/ commission/ fine/ penalty), and loan account number.
In a regulatory filing, the bank said its credit committee, and investment and raising capital committee has authorised the opening of the qualified institutional placement (QIP) of shares on June 21.
The floor price has been set at Rs 117.04 per share and it can sell shares at a discount of not more than 5 per cent, it said in the filing.
Investment banking sources put the indicative price band of the share sale at between Rs 111.50 to Rs 116.70.
The bank is looking at issuing between 214.2 million to 224.2 million shares in the issue.
The bank scrip shed 1.81 per cent to close at Rs 116.85 at the BSE, as against a 0.04 per cent correction in the benchmark.
German lender Deutsche Bank, Kotak Mahindra Capital and IIFL Holdings are bankers to the issue.
Meanwhile, shares of the Bank were trading at Rs 118.20 apiece, up 1.16 per cent from the previous close at 11:0 hours on BSE.
“The bank has signed an agreement for sale of 1,90,500 equity shares of face value of Rs 1 per share of Mswipe Technologies Private Limited (‘Mswipe’ or the ‘Entity’), at Rs 4,249 per share, resulting in a total cash consideration of Rs 80.94 crores,” Axis Bank Ltd said in a filing to the Bombay Stock Exchange on June 21, 2017.
Mswipe Technologies is primarily engaged in the business of merchant acquiring services.
The bank further said that, the transaction will be completed not later than July 2017.
The private sector lender has divested 8 per cent holding of Mswipe Technologies Pvt Ltd
Meanwhile, shares of the bank closed at Rs 507.55 apiece, down 0.83 per cent, from previous close on BSE.
According to the US economists of global financial services major Bank of America Merrill Lynch (BofAML), going by the latest Federal Open Market Committee (FOMC) meeting, the US Fed is likely to withdraw liquidity from September.
“We expect the RBI to recoup forex reserves with our US economists now expecting the Fed to withdraw liquidity from September,” BofAML said in a research note.
On RBI’s policy stance, the report said, a 25 basis points or 0.25 percentage point rate cut in August is likely as the next Fed hike is expected only in December.
“On balance, we continue to expect the RBI to cut 25 bps on August 2, as our US economists now expect the Fed to push out the next hike to December. Withdrawal of Fed liquidity should also contain global commodity prices and by extension, ‘imported’ inflation,” the report added.
In the monetary policy review on June 7, the RBI left key rates unchanged with Governor Urjit Patel noting that the central bank wanted to be more sure that inflation will stay subdued.