Indian Bank Q4 net up 7%, declares 75% dividend

Source:PTI :23:April:2011

 

Indian Bank on Saturday reported 7 per cent increase in net profit at Rs 438.86 crore for the fourth quarter ended March 31, 2011.

The bank had a net profit of Rs 409.96 crore during the same quarter of the previous fiscal, Indian Bank informed the Bombay Stock Exchange.

Total income of the bank grew by 23.65 per cent to Rs 2,865.8 crore in the January—March quarter from Rs 2,317.73 crore in the same quarter a year ago.

The bank proposed a dividend of Rs 7.50 per share of face value of Rs 10 each, or 75 per cent, for 2010-11.

For the whole 2010—11 fiscal, the bank’s net profit rose by 10.23 per cent to Rs 1,714.07 crore compared to Rs 1,554.98 crore in the previous year.

During the year, total income expanded by 16.74 per cent to Rs 10,542.91 crore against Rs 9,030.77 crore in 2009—10.

Total business grew by 20.3 per cent to Rs 1,81,530 crore for the period ended March 2011 from Rs 1,50,886 crore for the period ended March 2010, Bank Chairman and Managing Director T M Bhasin told reporters in Chennai.

Total deposits grew by 19.9 per cent for the year ended March 31, 2011, to 1,05,804 crore from Rs 88,228 crore registered during the same period of previous year.

During the year, the total NPA (Non—Performing Assets) recovery was at Rs 756.58 crore, he said.

Bhasin said the Bank would cover the entire Puducherry under the Financial Inclusion plan in June this year.

He said the Bank has set a target of disbursing Rs 3,500 crore under the education loan portfolio during this financial year. For the year ending March 2011, the bank has disbursed educational loan to the tune of Rs 2,811 crore, he said

CIBIL launches credit score for consumers

Source :BL:Mumbai:April:20:2011

If you have taken a home loan and not missed a single monthly payment, then you may be able to secure a car loan at a lower rate of interest or get your bank to waive the processing charges.

Similarly, if you are applying for a two-wheeler loan and have old credit card loans pending, it would be prudent to pay them off, as it will improve the chances of your loan getting sanctioned.

The bank's decision in both the cases is based on the credit scores generated by credit bureaus. The credit score concept is yet to catch on in India, but it has been the norm in the western markets for several years.

But soon Indian borrowers will be able to demand similar services.

The country's oldest credit information bureau, CIBIL, launched its ‘CIBIL TransUnion Score' for retail consumers, on Wednesday.

This score, which will be available for a fee of Rs 450, will take into consideration factors such as the loan amount, the nature of loan (secured or unsecured), the tenure, delinquencies (repayment history or defaults if any), number of loans, among others.

The final score is arrived at based on the weightage assigned to each of these aspects . It ranges between 300 and 900 and provides a snapshot of a consumer's credit history.

For instance, a consumer with a secured loan, like a home loan, will be assigned a higher score than a consumer with an unsecured loan like a credit card or a personal loan. CIBIL provides the score along with the Credit Information Report, which is available separately for a fee of Rs 142. While the report is an analysis of 36 months of the consumer's repayment history, the score uses that history and other information to indicate the likelihood of default in future. While lenders have been using the score for the past two years, now individual borrowers can also access it.

Mr Arun Thukral, Managing Director, CIBIL said the score predicts a likelihood of a borrower becoming delinquent in the next 12 months.

“While CIBIL doesn't pass a value judgement over the score, the likelihood of a loan getting passed is higher if the score is higher. Therefore, banks would prefer a higher score so that their risk is minimised,” he said.

Mr Satish Pillai, Senior Vice-President, CIBIL, said that how an individual bank views a score depends on the bank's risk appetite. As of now the report and score are mailed to consumers, within a period of 10 days of the consumer asking for it. But CIBIL is also working on making it accessible online.

“We are developing the process of online authentication of documents required for identification and address proof,'' Mr Thukral said.

CIBIL currently has 500 members, of which 40 per cent are co-operative banks. The credit bureau is also working on providing credit information reports to small and medium enterprises and hopes to launch it soon, Mr Thukral said.

RBI outlines initial brief of Central Registry

Source :BL:Mumbai :April:21:2011

The Reserve Bank of India on Thursday said the newly established Central Registry will initially register transactions relating to mortgage by deposit of title deeds to secure any loan or advance from banks and financial institutions.

It will also register transactions arising from securitisation and reconstruction of financial assets entered into by banks and financial institutions, as defined under the Securitisation Asset Reconstruction of Financial Assets and Security Interest Act, 2002.

Available for search

The records maintained by the Central Registry will be available for search by any lender or any other person desirous of dealing with the property.

Availability of such records from the Registry would prevent frauds involving multiple lending against the security of same property as well as fraudulent sale of property without disclosing the security interest over such property, the RBI said in a notification

The Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI), a Government company licensed under Section 25 of the Companies Act 1956, became operational on March 31, 2011.

Axis Bank gets RBI nod for merger of Enam's investment bank biz

SOURCE : BL:MUMBAI, APRIL 22:

 

2011

Axis Bank has received the Reserve Bank of India's in-principle approval to merge the investment banking and equity capital market business of Enam Securities.

The RBI has, however, put conditions for the merger to go through. One of the conditions is that none of the Enam Securities shareholders, who have acquired Axis Bank shares through the share swap deal, can be on the board of the bank.

The private sector bank had moved the RBI to induct Mr Vallabh Bhansali, co-founder and Chairman of Enam Securities, on its board.

Following RBI's condition, the bank is now exploring ways of working with Mr Bhansali, said Mr Somnath Sengupta, Executive Director and Chief Financial Officer, Axis Bank. Speaking to the media while announcing the bank's fourth quarter results, Mr Sengupta said that the process of merger would take a couple of months to be completed. There would be no changes in the valuation of the transaction (merger of Enam), he added.

In November 2010, Axis Bank had announced that the investment banking and equity capital markets business of Enam Securities would be merged with Axis Securities and Sales Ltd, a wholly-owned subsidiary of the bank in all-share deal.

NET UP 33%

For the quarter ended-March 31, 2011, Axis Bank posted a net profit of Rs 1,020 crore, up 33 per cent from Rs 765 crore in the corresponding quarter last year.

For the full year 2010-11, the bank posted a net profit of Rs 3,388 crore (Rs 2,515 crore), up 35 per cent.

The growth was on account of increase in both net interest income and fee income, Mr Sengupta said.

For the year 2010-11 the bank has recommended a dividend of 140 per cent