Top Stories
India restructured loan proposal would boost transparency: Fitch
The Reserve Bank of India's (RBI) proposals for the treatment of restructured loans would increase transparency and be positive for the Indian banking system, Fitch Ratings says. The regulator has recommended increased loan-loss provisions and ultimately ending forbearance on asset classification, and instead recognizing these stressed assets as non-performing in line with internationally accepted practices… Read more
Government support will bolster BRIC Banks: S&P
Banks in the world's largest developing economies of Brazil, Russia, India, and China (BRIC) could come under pressure over the next 12-24 months. But Standard and Poor's Ratings Services expects the BRIC banks' ties with the government to underpin their credit profiles. That's according to a report, titled "Government Support Should Enable BRIC Banks to Ward off Economic Headwinds," that the ratings agency published on 25th July… Read more
RBI introduces new category of NBFCs
The Reserve Bank of India (RBI) has introduced a new category of NBFCs, Non-Banking Financial Company-Factors and stipulated that every company seeking registration as NBFC-Factors would have a minimum net-owned fund (NOF) of Rs. 5 crore… Read more
Dimon buys JP Morgan shares worth US$17mn
JPMorgan Chase CEO Jamie Dimon bought about $17 million of common shares and sold preferred shares, according to a U.S. Securities and Exchange Commission filing on 20th July.
Mr Dimon bought around $17.1 million common shares for himself and indirectly for his wife and for a limited liability company. He directly bought 110,000 common shares at about $34.43 per share on 19th July and 250,000 shares at $34.02 per share on 20th July. He also purchased 65,000 shares indirectly for his wife. Additionally, he bought 75,000 shares at $34.45 for a limited liability company, according to the filing… Read more
JP Morgan agrees to pay $100 million credit card settlement
JPMorgan Chase & Co has agreed to pay $100 million to settle litigation by credit cardholders who accused the bank of inaccurately increasing their minimum payments and there by generating higher fees.
The settlement resolves a three-year-old case stemming from Chase's decision in 2008 and 2009 to increase minimum monthly payments for many cardholders to 5% of account balances from 2%... Read more
In Focus News
SKS Microfinance fires employees over Rs. 15.8 cr fraud
India's largest micro finance institution, SKS Microfinance has terminated the services of some of its employees, for cheating the company and embezzling funds worth Rs. 15.8cr in FY12, reports said. The company has already written off about Rs. 14cr of the total funds which were embezzled.
The audits of the company reveal that Rs.2.5 crore worth of cash embezzlement and Rs. 13.3 crore worth of loans were given to non-existent borrowers… Read more
Kotak Mahindra Bank affirmed at 'Fitch AA+(ind)'; Outlook Stable
Fitch Ratings has affirmed India-based Kotak Mahindra Bank Ltd's (KMB) National Long-Term Rating at 'Fitch AA+(ind)' with a Stable Outlook. In addition, KMB's National Short-Term Rating has been affirmed at 'Fitch A1+(ind)'… Read more
Provident Funds and MP Act-Implementation & difficulties
“To achieve the objectives of the Provident Fund Scheme, it is must to ensure a high degree operational and administration efficiency of the PF Organization instead of time consuming formalities. The present EPF and MP Act have lot of burning issues and confusions,” Chairman, Industrial Relations Committee, PHDCCI, Ravi Wig said… Read more
Leaders’ Speak
We plan to underwrite our 1st policy on 1st Oct: Magma Fincorp
Sanjay Chamria, VC & MD, Magma Fincorp, said, “Magma HDI General Insurance is a 74: 26 joint venture between Magma Fincorp and German insurance major HDI-Gerling. HDI-Gerling is part of the third largest insurance group in Germany, Talanx Group. The promoters have infused an initial paid-up equity capital of Rs. 2.08 billion into the new general insurance joint venture.”… Read more
Trivia
Indian women closing gender gap on financial literacy
People in mature markets may prove to be better financial planners overall but it is women in emerging markets who remain dominant when it comes to basic money management, according to MasterCard research… Read more
Domestic News
ICICI Bank Q1 net profit at Rs. 18.15 bn
ICICI Bank Ltd has posted results for the first quarter ended 30 June 2012. Its net profit was stood at Rs18.15bn as compared to Rs13.32bn YoY, up 36%. Its net NPA was stood at 0.71%... Read more
PNB Q1 net profit at Rs. 12.50bn
Punjab National Bank has posted a net profit of Rs. 12456.70 mn for the quarter ended June 30, 2012 as compared to Rs. 11050.70 mn for the quarter ended June 30, 2011. Total Income has increased from Rs. 93989.10 mn for the quarter ended June 30, 2011 to Rs. 117109.70 mn for the quarter ended June 30, 2012.
SBI raises US$1.25bn via international bond offering
State Bank of India (SBI) acting through its London Branch, successfully priced a follow-on 144A/RegS offering of US$1.25 billion of senior unsecured bonds due 2017 (the “Offering"), which are rated Baa2 by Moody's and BBB- by S&P. This Offering marks the first public sector bank US dollar bond issuance out of India since May 2011 and the largest single-tranche offering by a public sector bank from India… Read more
Bank of India Q1 net profit at Rs. 8.87 bn
Bank of India Ltd has posted results for the first quarter ended 30th June, 2012. Its net profit was stood at Rs8.87bn. Total Income has increased from Rs. 72936.80 mn for the quarter ended June 30, 2011 to Rs. 85,500.30 mn for the quarter ended June 30, 2012.
Intec Capital plans expansion in Gujarat
Intec Capital Ltd, one of the leading Non-Banking Financial Company catering to the machinery financing requirements of SMEs, plans to strengthen its presence and further extend its customer reach in Gujarat… Read more
Fullerton India Q1 net profit at Rs. 280mn
Fullerton India Credit reported a strong quarter of financial performance, with a significantly improved profit after tax (PAT) of Rs. 280 million for the quarter ended June 30, 2012 (unaudited). The Company’s revenues for the quarter ended June 30, 2012 was Rs. 2.63bn as against Rs. 2.1bn for the quarter ended June 30, 2011, which is 25% higher than that in the corresponding quarter of the previous year… Read more
ING Vysya Bank Q1 net profit at Rs. 1,301.20 mn
ING Vysya Bank Ltd has posted a net profit of Rs. 1301.20 mn for the quarter ended June 30, 2012 as compared to Rs. 940.20 mn for the quarter ended June 30, 2011. Total Income has increased from Rs. 10112.90 mn for the quarter ended June 30, 2011 to Rs. 13423.60 mn for the quarter ended June 30, 2012… Read more
Housing Finance Bank Uganda chooses Polaris Intellect Core Banking Solution
Polaris Financial Technology Ltd. a leading global financial technology company, announced that Housing Finance Bank Limited, the leading mortgage lender in the country with approximately 60% of all Ugandan mortgage accounts, has chosen to deploy Polaris’ state of the art Intellect Core Banking Solution (CBS) to support its current and future Business and IT requirements… Read more
Shriram Transport Finance net profit stands at Rs. 342.08 crore for Q1 FY13
The net interest Income Shriram Transport Finance for the first quarter ended 30 June 2012 increased to Rs. 843.75 crore against Rs. 800.81 crore in the same period of the previous year. The profit after tax stands at Rs. 342.08 crore against Rs. 353 crore recorded in the same period of the previous year… Read more
LIC Finance Q1 results drops 11% at Rs. 2.28 bn
The Board of Directors of LIC Housing Finance announced its un-audited results for the first quarter ended on June 30, 2012. The company has recorded a healthy growth in business during the first quarter ended June 2012.
In the Individual Loan category, the Company sanctioned Rs. 49bn, a growth of 33% over the corresponding period of the previous year, whereas the disbursements in that category were Rs. 44.7bn, a growth of 29% over the corresponding period of the previous year… Read more
Canara Bank Q1 results up 6% at Rs. 7,752.40 mn
Canara Bank has announced the following unaudited financial results for the quarter ended June 30, 2012. The Bank has posted a net profit of Rs. 7752.40 million for the quarter ended June 30, 2012 as compared to Rs. 7258.50 million for the quarter ended June 30, 2011. Total Income has increased from Rs. 77075.90 million for the quarter ended June 30, 2011 to Rs. 91654.70 million for the quarter ended June 30, 2012.
Indian Bank Q1 net profit jumps 13%
Indian Bank has posted a Net profit of Rs. 4617.459 mn for the quarter ended June 30, 2012 as compared to Rs. 4069.310 mn for the quarter ended June 30, 2011. Total Income has increased from Rs. 30307.418 mn for the quarter ended June 30, 2011 to Rs. 35965.042 mn for the quarter ended June 30, 2012.
New appointments
Kotak Investment Banking appoints TV Raghunath as MD & CEO
Kotak Investment Banking has announced that it has appointed TV Raghunath as MD & CEO and elevates S. Ramesh to Joint MD & Member of the Board.
Global News
Fitch affirms Brazil's ratings at 'BBB'; Outlook stable
Brazil's flexible exchange rate regime, moderate current account deficits, strong FDI inflows and a robust international reserves buffer of over USD370 billion enhance the country's shock absorption capacity. The country's strong net sovereign external creditor position further buttresses its credit profile. Fitch expects Brazil's credit fundamentals to remain resilient to threats from elevated external risks and their potentially unfavorable impact on the country's growth dynamics… Read more
Risks rising from WMP offerings by small Chinese banks: Fitch
Fitch Ratings says China's banking sector faces growing risks from small banks' aggressive issuance of wealth management products (WMPs) to attract and retain depositors. WMPs are akin to time deposits, but the interest rates can be set freely by banks. As competition for deposits has intensified, Chinese banks, particularly small non-state-owned entities, have been rapidly expanding their WMP offerings… Read more
Citic Securities to acquire CLSA
China’s brokerage firm, Citic Securities will buy Hong Kong-based brokerage CLSA from Credit Agricole SA of France for $1.25 billion.
Citic Securities completed the acquisition of 19.9% of CLSA for $310.3 million, the company said in a statement filed with the Shanghai stock exchange on 21st July. Citic Securities aims to acquire the remaining 80.1% in CLSA for $941.7 million by the end of June 2013 pending regulatory and shareholder approvals, it added… Read more
Australian dollar would act as a shock absorber: RBA
On 24th July, Reserve Bank of Australia (RBA) governor Glenn Stevens said that the Australian dollar would act as a shock absorber if Europe’s troubles worsen or the Chinese economy slumps.
According to Mr Stevens, “If there is a major financial event emanating from Europe, then the Australian dollar could fall significantly.” He further said, “Likewise, if there is serious slump in China’s economy, the Australian dollar would also probably fall.”
The governor expects policy would support the Australian economy, should it be needed. "Acting sensibly, with a long-term focus, has as good a chance as ever of seeing us through whatever comes our way," he added.
New services
Deutsche Bank hikes interest rates for NRE, domestic FDs
Deutsche Bank announced that it has hiked its interest rates for domestic and NRE fixed deposits for tenors between 2-5 years. The interest rate for 2-3 years deposit is 9.25% p.a.; 3-5 years and 5 years is 9.5% p.a… Read more
I-T dept launches two new initiatives for taxpayers
To make the Income Tax Return filing experience even more convenient, the Income Tax Department has started two more taxpayer friendly initiatives ‘Register for Home Visit’ and ‘Online Tax Help’.
To avail these facilities, a taxpayer must visit the website www.trpscheme.com and take help of trained professionals either online or at their homes. The taxpayer can choose between ‘online help’ or ‘home visit’… Read more
S&P Dow Jones Indices launches S&P GIVI China A-Share Index
S&P Dow Jones Indices has launched S&P GIVI™ China A-Share, the first index of its kind in the Chinese market to combine low volatility and an alternative weighting scheme that weights a stock by its calculated intrinsic value, rather than market-capitalization… Read more
Deutsche Bank posts weak pretax profit for Q2
On 24th July, Deutsche Bank reported weaker second quarter pretax profit. According to the bank, weak euro and lower trading activity hit its earnings.
Deutsche Bank said pretax profit would amount to about 1 billion euros, down from 1.8 billion euros in the year-earlier period. Deutsche said it expects net income of around 700 million euros, down from the 1.2 billion euros in the year-earlier period.
The bank may cut almost a tenth of its investment banking staff due to weak trading activity. Deutsche Bank further said lower full year net income projections would be prevented by additional de-risking measures this year, without providing details.
Analysts had expected a pretax profit of 1.4 billion euros and net income of 1 billion euros.