Tag: banks

RBI asks banks to provide sufficient details in passbooks

RBI asks banks to provide sufficient details in passbooks

23/06/2017 13:01

The RBI has said that it has asked banks to provide sufficient details of transactions in the passbooks and statements of accounts so that customers can cross-check them.

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.

Federal Bank launches Rs 2,000-cr QIP

Federal Bank launches Rs 2,000-cr QIP

22/06/2017 11:32

South-based Federal Bank said that it has launched a institutional sale of shares, aiming to raise around Rs 2,000 crore or USD 310 million in capital. There is an option to upsize the issue by Rs 500 crore or USD 77 million, sources said.

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.

Axis Bank signs pact to sell stake in Mswipe Technologies

Axis Bank signs pact to sell stake in Mswipe Technologies

21/06/2017 16:04

Private sector lender Axis Bank Ltd on Wednesday said it has inked a pact to sell 1,90,500 equity shares of Mswipe Technologies Pvt Ltd (Mswipe) for a total cash consideration of Rs 80.94 crore.

“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.

RBI likely to step up forex buying; rate cut on cards

RBI likely to step up forex buying; rate cut on cards

15/06/2017 17:09

The Reserve Bank is expected to step up forex buying and may go for a 25 basis points cut in interest rate on August 2, says a report.

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.

HSBC sees India growth unchanged at 7.1% this fiscal

HSBC sees India growth unchanged at 7.1% this fiscal

08/06/2017 16:20

India’s growth is likely to remain unchanged at 7.1 per cent this fiscal, as investments are low and government spending may not remain high given the fiscal consolidation path the country is treading, says a report.

“Growth numbers were marked down marginally but still remain higher than ours,” HSBC said in a research note. It further said, “we have a below-consensus view that growth will be flat at 7.1 per cent in 2017-18”.

According to the global financial services major HSBC, output gap in the country is likely to remain negative for longer period of time.

In its policy review meet yesterday, the central bank also lowered its growth forecast to 7.3 per cent, from 7.4 per cent earlier.

The report said that investment still remained low in the country, while urban wages are growing but at multi-year lows. Moreover, government spending may not remain as high given the fiscal consolidation path, and the rise in exports over the last few months are showing some signs of moderation.

HSBC said though “rural growth could come in high if rains are strong, but that would just about offset the weakness from other sectors. This means that the output gap is likely to remain negative for longer”.

Regarding RBI’s monetary policy stance, the report said a prolonged pause is likely with risks of a rate cut in August.

“Given that we believe inflation expectations have fallen into a virtuous cycle, anchoring inflation at around 4 per cent, we do not find a pressing need for the RBI to either cut or hike policy rates by a large quantum,” it said.

However, there are risks of some moderate easing later in the year, particularly a 25 bps rate cut in August, if the current softness in inflation turns out to be durable, it added.

HSBC sees India growth unchanged at 7.1% this fiscal
08/06/2017 16:20

India’s growth is likely to remain unchanged at 7.1 per cent this fiscal, as investments are low and government spending may not remain high given the fiscal consolidation path the country is treading, says a report.

“Growth numbers were marked down marginally but still remain higher than ours,” HSBC said in a research note. It further said, “we have a below-consensus view that growth will be flat at 7.1 per cent in 2017-18”.

According to the global financial services major HSBC, output gap in the country is likely to remain negative for longer period of time.

In its policy review meet yesterday, the central bank also lowered its growth forecast to 7.3 per cent, from 7.4 per cent earlier.

The report said that investment still remained low in the country, while urban wages are growing but at multi-year lows. Moreover, government spending may not remain as high given the fiscal consolidation path, and the rise in exports over the last few months are showing some signs of moderation.

HSBC said though “rural growth could come in high if rains are strong, but that would just about offset the weakness from other sectors. This means that the output gap is likely to remain negative for longer”.

Regarding RBI’s monetary policy stance, the report said a prolonged pause is likely with risks of a rate cut in August.

“Given that we believe inflation expectations have fallen into a virtuous cycle, anchoring inflation at around 4 per cent, we do not find a pressing need for the RBI to either cut or hike policy rates by a large quantum,” it said.

However, there are risks of some moderate easing later in the year, particularly a 25 bps rate cut in August, if the current softness in inflation turns out to be durable, it added.

ICICI Bank Q4 cons net jumps nearly 5-times to Rs 2,082.75 cr

ICICI Bank Q4 cons net jumps nearly 5-times to Rs 2,082.75 cr

04/05/2017 13:08

ICICI Bank, the country’s largest private sector lender, on Wednesday reported nearly 5 times jump in its consolidated net profit to Rs 2,082.75 crore during the January-March quarter of 2017-18, helped by increase in net interest income and lower provisions.

“The lender had posted consolidated net profit of Rs 406.71 crore in the corresponding quarter of previous fiscal, said ICICI Bank in a filing to Bombay Stock Exchange.

The consolidated total income of bank rose marginally to Rs 28,603.29 crore in Q4 FY17 from Rs 28,216.78 crore in Q4 FY16.

On the standalone basis, the bank has posted 189 per cent growth in its net profit at Rs 2,025 crore during the fourth quarter of 2016-17, as compared to Rs 702 crore in the same quarter of the previous year.

Net interest income (NII), the difference between revenues generated by interest-bearing assets and the cost of servicing (interest-burdened) liabilities, grew 10 per cent to Rs 5,962 crore from Rs 5,404 crore in the same period last year.

Non-interest income stood ta Rs 3,017 crore in Q4-2017, compared to Rs 2,978 crore, excluding gains of Rs 2,131 crore on sale of stake in insurance subsidiaries, in Q4-2016.

The year-on-year growth in domestic advances was 14 per cent, about eight per cent points higher compared to non-food credit growth for the banking system at March 31, 2017. Total CASA deposits increased by 28 per cent year-on-year to Rs 246,822 crore at March 31, 2017.

Provision and contingencies dipped to Rs 2,898 crore compared to Rs 3,326 crore in the same quarter last year.

During the quarter under review, the bank’s gross non-performing assets rose to 7.89 per cent of total loans, compared with 5.21 per cent in the year-ago quarter. Net NPA of the bank too grew to 4.89 per cent, against 2.67 per cent in corresponding period last year.

For FY 2016-17, the bank has posted net profit of Rs 9,801.09 crore as against total revenue of Rs 73,660.76 crore.

In a separate release, the bank has announced issue of bonus shares in the ratio of 1:10 i.e one equity share of Rs 2 each for every ten fully paid-up equity shares held (including ADS holders) as on the record date, subject to approval of the members of the company.

Besides, the board has also recommended a dividend of Rs 100 per preference share on 350 preference shares of the face value of Rs 1 crore each and dividend of Rs 2.50 per equity share of face value of Rs 2 each, subject to requisite approvals.

Boosted by strong Q4, shares of bank were trading at Rs 297.50 apiece, up 9.07 per cent, on the BSE at 13:15 hour.

Post Session: Sensex, Nifty end lower in lackluster trade; ICICI Bank Q4 eyed

03/05/2017 16:29

The Indian equities ended lower with slim losses on Wednesday as caution prevailed in the market ahead of the fourth quarter earnings report of index heavyweight ICICI Bank and outcome of a two-day policy meeting of the US Federal Reserve. The Federal Reserve is likely to maintain status quo on interest rate, but may give some hints on the possibility of a rate hike in June. Among the individual stock, Godrej Properties surged nearly 8 per cent after real estate arm of Godrej Industries said it has sold over 1000 apartments across three new project launches – Godrej Origins at The Trees in Mumbai, The Suites at Godrej Golf Links in Greater Noida and Godrej 24 at Hinjawadi, Pune since March 2017.

The 30-share barometer SENSEX closed at 29894.8, down by 26.38 points or by 0.09 per cent, and the NSE Nifty ended at 9311.95, down by 1.85 points or by 0.02 per cent.

During the day’s trade, the BSE Sensex touched intraday high of 30020.59 and intraday low of 29846.57, while the NSE Nifty touched intraday high of 9346.3 and intraday low of 9298.4.

The top losers of the BSE Sensex pack were Lupin Ltd. (Rs. 1264.20,-3.09%), Housing Development Finance Corporation Ltd. (Rs. 1561.20,-1.37%), ICICI Bank Ltd. (Rs. 272.75,-1.16%), Tata Motors Ltd. (Rs. 446.65,-1.11%), Tata Steel Ltd. (Rs. 440.65,-1.03%), among others.

Meanwhile, Power Grid Corporation of India Ltd. (Rs. 210.75,+2.31%), Tata Consultancy Services Ltd. (Rs. 2337.40,+1.98%), Infosys Ltd. (Rs. 935.65,+1.59%), Coal India Ltd. (Rs. 279.35,+1.49%), Hindustan Unilever Ltd. (Rs. 935.30,+0.71%), were among top gainers on BSE.

On the sectoral front, healthcare and oil&gas stocks emerged as top losers, falling as much as 0.98 per cent and 0.67 per cent, respectively.

The Market breadth, indicating the overall strength of the market, was weak. On BSE out of total shares traded 3206, shares advanced were 1447 while 1573 shares declined and 186 were unchanged.

RBL Bank Mar-qtr net zooms 55%; scrip hits 52-week high

RBL Bank Mar-qtr net zooms 55%; scrip hits 52-week high

03/05/2017 12:29

Private sector lender RBL Bank Ltd reported a growth of 54.6 per cent in it’s standalone net profit after taxes (PAT) at Rs 130.13 crore for the March quarter of FY 2017, helped by healthy growth in interest income even as provisions for bad loans rose.

The bank had posted a net profit of Rs 84.18 crore during the same period a year ago, RBL Bank Ltd said in a filing to the BSE.

Further, total income of the bank, too, grew by 35.2 per cent at Rs 1,222.87 crore during Q4 FY17, against Rs 904.66 crore in Q4 FY16.

In the quarter, provisions (other than tax) and contingencies jumped sharply to Rs 82.10 crore as against Rs 36.17 crore in previous quarter and from Rs 37.88 crore in corresponding period last year.

During the quarter under review, gross non-performing assets (Gross NPA) of the bank rose to 1.20 per cent of total loans, compared with 0.98 per cent in the year-ago quarter. It’s net NPA too grew to 0.64 per cent from 0.59 per cent during the same period of previous fiscal.

NII, the difference between interest earned on loans and interest paid on deposits, rose 46.6 per cent at Rs 352.16 crore versus Rs 240.18 crore during Q4 FY 16. Non-interest income also jumped 65.8 per cent to Rs 236.55 crore against Rs 142.71 crore during the same period last year.

The Board of Directors of the bank has recommended payment of final dividend at the rate of 18 per cent i.e. Rs 1.80 per equity share to be payable after approval of the shareholders at the ensuing AGM.

After hitting a 52-week high, shares of the bank were trading at Rs 592.20 apiece, up 1.14 per cent, from previous close on BSE at 12:33 hours.

HDFC Bank to raise Rs 50K cr via infra bonds, debt securities

HDFC Bank to raise Rs 50K cr via infra bonds, debt securities

21/04/2017 15:50

HDFC Bank said that it will raise up to Rs. 50,000 crore through debt securities and infrastructure bonds over the next 12 months.

In a filing to the BSE, HDFC Bank said the board has approved the issue of debt instruments, Tier II bonds and long-term infrastructure bonds worth up to Rs. 50,000 crore.

The securities would be issued on a private placement basis, it said, adding that the approval of shareholders for the issuance would be sought at the ensuing annual general meeting.

The bank further said that it will pay a dividend of Rs 11 on every equity share of Rs. 2 each out of its net profit for the financial year ended March 31, 2017.

HDFC Bank reported a net profit of Rs. 14,549 crore, a growth of 18.3 per cent in 2016-17 over the previous financial year.

The board has also approved the reappointment of Shyamala Gopinath as part-time non-executive chairperson of the bank for the period January 2, 2018, to June 19, 2019.

Gopinath had served as Deputy Governor at the Reserve Bank till June 2011 and handled key portfolios, including banking regulation, financial markets and exchange rate.

Snapdeal sounds out SBI Caps, Kotak Capital, 3 others for 2019 IPO

Snapdeal sounds out SBI Caps, Kotak Capital, 3 others for 2019 IPO

03/04/2017 12:17

Snapdeal has sounded out five merchant bankers, including SBI Caps and Kotak Mahindra Capital, to work on a public offer that is likely to hit the market in the second half of 2019, reported PTI.

The third largest marketplace majority owned by Japanese giant SoftBank has also reportedly appointed Swiss investment banking major Credit Suisse as a special advisor for the share sale, people aware of the development told PTI.

“The IPO process is on with in earnest and may open in the second half of calender 2019, depending on the market sentiment. The management has zeroed in on five i-bankers incluing SBI Caps and Kotak Mahindra Capital,”said the source as per the media reports.

The source also said out of the five i-bankers sounded out, it will pick only one lead-banker that could be either SBI Caps or Kotak. It has also sounded out top law firms Amarchand Mangaldas, AZB & Partners and Khaitan & Co to advise it on the proposed share sale plan.

The development comes within days of co-founder and chief executive Kunal Bahl writing to the employees, whose numbers have come down to under 3,000 from 7,000 a year ago, asking them to prepare for an IPO a la the hugely successful share sale by retailer D-Mart, that was oversubcribed over 100 times and made a market debut with a whopping 114 per cent premium a fortnight ago.

The Gurgaon-based Snapdeal which has been burning money to compete with its larger rivals Flipkart and the American giant Amazon, is reported to have only cash left for a year at best, and is desperately to raise funds amidst reports that existing investors led by Softbank which own 33 per cent and Kalari Capital want it to be merged with Flipkart or Paytm.

Due to cash cruch and massive write-down in valuations the company has reduced costs by 60 per cent, Bahl said in the March 27 letter and also reported slashed one-third of its employee-count in the past one year alone, is focusing on growing in profitably, which the management feels is possible through an IPO.

Snapdeal has so far raised over USD 1.7 billion, including USD 200 million in early 2016 and is desperately seeking more money, according to sources. The e-tailer has also reportedly slashed its monthly cash burn by 80 per cent, incurring a USD 4-5 million a month now, from USD 20-25 million in its bid to conserve cash.

Its early-stage investors include Kalaari Capital and Nexus Venture Partners, while the largest shareholder is Softbank wants to exit. The Japanese giant has pumped in close to USD 1 billion in the company which was valued at USD 6.5 billion in December 2016.

While Softbank owns 33 per cent in Snapdeal, Nexus owns roughly 10 per cent and Kalaari nearly 8 per cent, as per the RoC filing. Chief executive Kunal Bahl and chief operating officer Rohit Bansal, together own under 6.5 per cent in the of the company they cofounded. In the March 27 letter to employees titled ‘The DMart story and our path to profitability, Bahl has alluded to the success of the DMart IPO and said there are many lessons to be learnt from the disciplined execution and focus of the retailer.