PNB OPENS NEW ARM AT MAYUR VIHAR PHASE -1 IN CAPITAL

Thesynergyonline Banking Bureau

Mr Nagesh Pydah, Executive Director, PNB (on dias) alongwith Mr R.K.Dubey, GM, Delhi Circle of PNB and Mrs. Nirmal Mehta, Branch Manager on the occasion of inauguration of PNB's Mayaur Vihar, Phase-I branch in Delhi.

NEW DELHI, MARCH 11 :
PUNJANB National Bank (PNB) as part of its strategy to expand customer base has opened its new branch with ATM facility here at Mayur Vihar Phase-1 which was inaugurated today by Mr Nagesh Pydah, Executive Director, PNB.

Mr Nagesh Pydah informed on this occasion that the total business of the bank has crossed the figures of Rs.4,00,000 crore as on December 31 ,2009.

He further informed that this branch is on CBS platform and as such connected with all branches of PNB all over India . With the opening of this branch, large number of people will have access to modern banking facilities, such as Debit-Cards, Lockers, Insta-remit (RTGS), Internet etc.

He further stressed the benefits of PNB’s various new initiatives i.e. Global Credit Card and Door Step Banking.

He also spoke about third party products offered by the bank like mutual funds, life insurance and general insurance and informed that the bank has become one stop shop for all financial needs of our customers.

Mr R.K. Dubey, General Manager (Delhi Circle), PNB, informed that the bank has the strength of 191 branches and 555 ATMs in the Capital city of the country covering almost all Metro stations, railway stations and other important locations. 

Mr Dubey further informed that the bank has the formidable customer base in Delhi, that is , 38 lakh satisfied customers which , according to him, is the largest amongst all banks. He assured the best customer service to all the customers of PNB with the technological initiatives taken by the bank. (editor@thesynergyonline.com) .

BUILD SOLID BANKING BEFORE MOVING ON CAC: ASSOCHAM- PwC

Thesynergyonline Banking Bureau

NEW DELHI,M ARCH 11 : INDIA would need to work on sustaining its economic fundamentals over a period of time with a strong banking system before going ahead with the implementation of Capital Account Convertibility (CAC), says a joint study of The Associated Chambers of Commerce and Industry of India (ASSOCHAM) & Pricewaterhouse Coopers (PwC).

It points out that as recognized in the recent Tarapore Committee Report, the ability of financial institutions to identify, measure, and manage risk will also depend on the availability of instruments to manage risk, the liquidity of financial markets and the quality of market infrastructure, and level of market discipline.

However, key segments of the Indian capital markets remain underdeveloped.  The term money market is limited and although there is a domestic yield curve for government securities with maturities up to 30 years, its depth and liquidity are limited.  The corporate bond market is relatively small and illiquid, and the market for securitized assets has fallen short of expectations.  The OTC derivatives market is growing rapidly but its prudential and regulatory framework has just been laid out.

Releasing its findings here today, the ASSOCHAM spokesman said “Regulators and market participants have been warning for years about the dangers of the unchecked growth of the credit default swap market and about the difficulty of assessing, who could be at risk for derivative market failures.

The study points out that in India, delinquencies in retail portfolios of banks have still not reached panic levels. Nonetheless, they are inching up slowly but surely. Add that to the sudden drying up of liquidity and the domestic mutual fund industry emerges as India’s weakest link in the securitisation food chain. The bigger fear is that that this exposure could have a cascading effect on the entire banking sector, with the risk getting transferred to many of the parent companies of these MFs. The dominance of mutual funds in securitisation coincided with private sector banks slipping into overdrive to hawk retail loans.

As regards, dangers with securitized products, the ASSOCHAM-PwC study points out that high-risk, high-return products originated by private sector banks, Non-banking Financial Companies (NBFC’s) and companies; the mutual funds that pick them up have no control over their credit quality, highly illiquid with no secondary market; Mutual funds have no option but to hold the ABS or MBS till maturity, not very transparent products; disclosures are on a monthly basis to rating agencies (in contrast to corporate debentures or bonds, in which information is always available about the company on a stock exchange on a daily basis).Globally, despite rating agencies rating them highly, a sudden chain of defaults in the underlying assets (mortgages) brought down the big institutions.

Innovative financial products have played a key role in the development of the current financial crisis, and have also compounded the difficulty of resolving it. This is because the difficulty of valuing such products has, in many cases, caused markets for them to cease functioning. This has led to great uncertainty regarding the financial position of institutions holding these products, which has, in turn, frozen the process of trying to separate “good assets” from “bad assets,” an important step in restoring the normal functioning of credit markets. (editor@thesynergyonline.com) .

PNB PAYS RS.182.24 CRORE INTERIM DIVIDEND TO GOVT

Thesynergyonline Banking Bureau

Mr K.R. Kamath, CMD , PNB presenting RTGS credit advice for interim dividend for Rs.182.24 crore for the fiscal 2009-10 to Mr Pranab Mukherjee, Union Finance Minister, in New Delhi on Thursday. Also seen are Mr Namo Narain Meena, Union Minister of State(Finance), Mr R. Gopalan, Secretary, Deptt. of Financial Services, Ms. Ravneet Kaur, Joint Secretary and Govt nominee Director on PNB Board and Mr M VTanksale and Mr Nagesh Pydah, EDs , PNB.

NEW DELHI, FEB 25 :
THE PUNJAB National Bank (PNB) Chairman and Managing Director today presented an an interim dividend cheque for Rs.182.24 crore for the financial year 2009-10 to Mr Pranab Mukherjee, Union Finance Minister .

Mr Namo Narain Meena, Union Minister of State(Finance), Mr R. Gopalan, Secretary, Deptt. of Financial Services, Ms. Ravneet Kaur, Joint Secretary and Govt. nominee Director on PNB Board, Mr M.V.Tanksale and Mr Nagesh Pydah, Executive Directors, PNB were also present on the occasion.

Punjab National Bank is the first bank to pay Interim dividend during the current financial year. This interim dividend has been paid @ of Rs. 10 per share that is 100 percent during financial year 2009-10. The Govt. of India holding in the bank is 57.8 percent.

The bank' s Business crossed a milestone of Rs 4 lakh crore at the end of December 2009 to reach Rs 4,04,373 crore, registering a growth of 19.4 percent on y-o-y basis. T

Total deposits of the bank at the end of December '09 amounted to Rs 2,33,946 crore as compared to Rs. 1,97,069 crore in December' 08, registering y-o-y growth of 18.7 percent.
Similarly advances of the bank increased to Rs. 1,70,427 crore as compared to Rs. 1,41,659 crore at the end of December '08, showing y-o-y growth of 20.3 percent.

The bank's net profit registered a y-o-y growth of 24.5 percent to reach Rs. 2770 crore during nine months ended December '09 of financial year 2009-10 as against Rs. 2225 crore in the corresponding period last year.

During the nine months ended December '09, Operating Profit of the bank increased to Rs. 4994 crore from Rs 4152 crore, registering y-o-y growth of 20.3 percent. The bank's Return on Asset was 1.43 percent as at the end of December'09 as compared to 1.37 percent as on December'08. (editor@thesynergyonline.com) .

AXIS BANK LAUNCHES 'AXIS PAY CALL AND PAY ON ATOM'

Thesynerergyonline Banking Bureau

MUMBAI, FEB 24 :
AXIS Bank, India 's private bank, today announced the launch of 'Axis Call and Pay' on atom' a unique mobile payments solution using Axis Bank debit cards. The bank will provide a secure debit card-based payment service over IVR.

'Axis Call and Pay on atom' offers the convenience of making payments anywhere, anytime over the mobile phone without any dependency. The technology for the Axis Call & Pay Service has been developed by atom technologies, a digital, retail initiative of the Financial Technologies Group.

The bank's customers, to avail of this service, first need to link their mobile number to their Debit Card. This can be done by them from an Axis Bank ATM. Once this is done, the system gives a call-back and guides them to set a 6 digit mPIN, which has to be used during each transaction. A detailed How-It-Works sheet is attached for ready reference

Ms Manju Srivatsa,president, Retail Banking, Axis Bank said, " India has seen remarkable growth in its debit card market over the past few years. The debit card spends at merchant POS terminals increased significantly by 48 percent to Rs. 18,547 crore during the year 2009. The debit card spends stood at Rs.12,521 crore for the previous financial year. Customers were, however, not able to pay remotely using debit cards. Axis Call and Pay makes it very convenient for our customers to get the most out of their Debit Card, while on the move, in a secure manner."

Mr. Dewang Neralla, Director, atom technologies said, "We are delighted to partner with Axis Bank in the first of its kind initiative in the country. atom's expertise in secure and cutting edge mobile payment technology has been leveraged by more than 100 merchants. One of the major concerns for tele commerce growth in India has been the risk involved in making card-based payments over the mobile phone. With Axis Call & Pay on atom, we are confident that our secure IVR services will boost mobile payments using debit cards in India and will be highly beneficial for Axis Bank customers."

Axis Call and Pay on atom transactions will be possible at atom technologies enabled merchants. As and when new merchants are integrated and enabled by atom technologies, they will be available on this system. The list would be updated on the website. Currently, it is made live on Vodafone, Tata Sky, Sun Direct, and Dish TV. In a short time, this payment facility would be enabled on around 100 major merchants across different categories of utilities like Telecom, Mobile , Entertainment, Travel, Insurance, etc. The advantage of the service is that it works with any mobile phone and any connection as it uses the simple calling functionality on the mobile.

The bank offers a vast spectrum of services encompassing Large and Mid-Corporate Banking, SME Banking, Agri-Business Banking, Retail Banking and International Banking.

The bank has a network of 959 branches and extension counters and 4164 ATMs across the country. The branches, spread across more than 595 cities and towns, enable the Bank to reach out to a large cross-section of customers with an array of products and services catering to both the retail and the corporate segment.

The bank has presence in Singapore , Hong Kong, Shanghai and Dubai , and seeks to expand further its international presence. The bank has the fourth largest base of debit cards in the country.The bank has a customer base of over 100 lakh and provides payroll services to over 20,000 corporates across 38 lakh salary accounts. The market capitalisation of the bank as on February 23, 2010 was Rs. 44,319 crore . (editor@thesynergyonline.com) .

UNITED BANK IPO OPENS TODAY ; PRICE BAND FIXED AT RS 60 TO RS 66

Thesynergyonlne Banking Bureau

NEW DELHI, FEB 22 :
UNITED Bank of India, a public sector banking institution, proposes to make an initial public offering (IPO) of 5,00,00,000 equity shares of face value of Rs. 10 each for cash at a price to be determined through a 100 percent book building process.

The initial public offering (IPO) which opens opens on February 23, 2010 and closes on February 25, 2010 comprises a net issue of 4,75,00,000 equity shares of face value of Rs.10 each to the public. and a reservation of 25,00,000 equity shares for subscription by eligible employees.

The issue shall constitute 15.80 percent of the post issue paid-up capital and the net issue shall constitute 15.01 percent of the post-issue capital of the bank.

This issue has been graded by CARE as CARE IPO grade 4 indicating above average fundamentals and by ICRA as ICRA IPO grade 3 indicating average fundamentals.

The price band has been fixed at Rs 60 to Rs 66. A discount of Rs 3 to the issue price determined pursuant to the completion of the Book Building Process has been offered to Retail Individual Bidders and Eligible Employees. The bids can be made for a minimum lot of 100 equity shares and in multiples of 100 equity shares thereafter for all categories of investors.

At least 60 percent of the net issue shall be allotted on a proportionate basis to qualified institutional buyers. Five percent of the QIB portion shall be available for allocation to mutual funds only and the remaining QIB portion shall be available for allocation to all the QIB bidders, including mutual funds.
.

If at least 60 percent of the net issue cannot be allotted to QIBs, then the entire application money shall be refunded. Further, not less than 10 percent of the net issue shall be available for allocation on a proportionate basis to non-institutional bidders and not less than 30 percent of the net issue shall be available for allocation on a proportionate basis to retail individual bidders .

Further, upto 25,00,000 equity shares shall be available for allocation on a proportionate basis to Eligible Employees, subject to valid bids being received at or above the issue price net of retail discount.
The book Rrnning lead managers to the Issue are SBI Capital Markets, Edelweiss Capital and Enam Securities..

The equity shares offered by the bank through the issue are proposed to be listed on Bombay Stock Exchange and National Stock Exchange of India . (editor@thesynergyonline.com) .

INDIA'S BANKING ON GROWTH TRACK TO TRIM DEFICIT

Thesynergyonline Banking Bureau

NEW DELHI, FEB 22 :
THE fiscal deficit is expected to narrow down due to higher revenues, rather than lower discretionary spending. Borrowings are set to remain high, which could hamper monetary policy.

The government is likely to announce a partial reversal of tax cuts on 26 February when it unveils its Budget. However, we believe that the government will be counting mostly on buoyant revenues from high GDP growth and disinvestment rather than discretionary spending cuts to lower the deficit. We expect the central government to budget for, and achieve, a deficit of 5.5 percent of GDP in the fiscal 2011 (year ending March 2011) compared to 6.8 percent in the fiscal 2010.

Service tax rate hike is expected to be hiked from 10 percent to 12 percent and the excise duty rate from 8 percent to 10 percent-12 percent.Changes in direct tax rates are not expected . Export sops are likely to continue as the global outlook remains fragile. With nominal GDP growth likely to accelerate to around 13 percent y-o-y in FY11 from 10.6 percent in FY10 and tax rates to be increased, we expect tax revenues to rise after the slump last year. The rise of 16.2 percent y-o-y is pegged at in gross tax revenues in FY11 as compared to a dismal 0.1 percent in FY10.

The Government is expected to raise Rs 200 billion through disinvestment or partial privatisation in FY10, and an additional Rs 250 billion in FY11, to partly bridge the fiscal deficit. Proceeds from the 3G telecom licence auctions, which were expected to fetch Rs 350 billion in FY10, will now be auctioned in FY11.

The Government is expected to focus on inclusive growth to entail an increase in plan expenditure by 15.1 percent y-o-y in FY11 as compared to 14.9 percent y-o-y in FY10. Rural employment, education, roads and agriculture are likely to corner a higher allocation.

Despite one-off expenses like pay arrears no longer being due in FY11, it is continuously expected that there will be a marginal rise in non-Plan expenditure. First, Rs120 billion worth of farm loan waivers has to be released in FY11. Second, a sharp rise in debt stock and higher servicing costs will increase interest expenses. Third, given current geopolitical tensions, increase in defence allocations is expected. Fourth, while there is scope to reduce fuel subsidies, politically this remains a bitter pill to swallow. Non- Plan expenditure is expected to grow 7.7 percent y-o-y, down from 13.3 percent in FY10.

This budget is also significant because it will take on board the recommendations of the 13th Finance Commission (TFC), which are not yet public. The TFC will likely suggest a new formula for devolution of central taxes to states and a roadmap for medium-term fiscal consolidation and for all off-budget subsidies (oil, fertiliser and food) to be included in future budgets. A roadmap for the two structural tax reforms - a goods and services tax (GST) and a direct tax code - is also anticipated. However, we expect the implementation of a GST to be delayed until April 2011 and the direct tax code to be announced in 2011-12.

Overall, the Central Government's fiscal deficit is expected to narrow to 5.5 percent of GDP in FY11 from 6.8 percentof GDP in FY10. Part of this narrowing - about 0.3 percent of GDP - is due to a statistical change: the historical level of GDP was recently revised up, boosting the denominator.

The fiscal deficit will, it is believed , largely be financed through domestic market borrowings. In FY10, shortfall in revenues is expected, forcing the government to borrow more next month. In FY11, it is estimated that gross and net market borrowings are likely to total Rs .88 trn and Rs 3.74trn, respectively.

Most of the reduction is expected in the fiscal deficit-to-GDP ratio to be driven by buoyant revenues from stronger growth - in other words, adjusted for the economic cycle, little improvement is seen in the structural fiscal deficit in the year ahead. Even so and despite India 's high fiscal deficit and debt-to-GDP ratios, debt sustainability or deficit financing is not seen as major concerns. However, two risks are seen.

Last year, the government financing was made easier by weak private demand for credit plus the RBI's large open market bond purchases. This year the RBI needs to withdraw liquidity, but monetary policy may be forced to remain more accommodative than necessary to ensure smooth financing of a still sizable amount of government borrowing. There is a perceptible risk that monetary policy remains too loose for too long, boosting growth in the near-term, but fanning inflation even higher.

The other bipolar risk is that our - and the government's - forecast of robust GDP growth in FY11 significantly misses the mark on the downside, for example because of a renewed negative external shock. With the government banking on high growth to reduce the fiscal deficit, the flipside is that low growth would cause the deficit-to-GDP ratio to quickly widen again. (editor@thesynergyonline.com) .

RAJASTHAN GRAMIN BANK COMPLETES CBS MODEL

Thesynergyonline Banking Bureau

Mr Namo Narain Meena, Union Minister of State for Banking and Finance and Mr K.R. Kamath, CMD, PNB alongwith Mr R I S Sidhu, CGM, PNB, Mr G. Banerjee, GM, PNB besides others at an inaugural function of CBS model completion of Rajasthan Gramin Bank in Alwar, Rajasthan on Monday.

ALWAR , Rajasthan , FEB 15 :
THE Union Minister of State for Banking and Finance Mr Namo Narain Meena today inaugurated the CBS completion function of Rajasthan Gramin Bank, at ‘Swaroop Vilas’, Alwar.

The function was chaired by Mr K.R. Kamath, Chairman and Managing Director of Punjab National Bank and was attended among others by Mr R I S. Siddhu, CGM, Mr G. Banerjee, GM, Mr P.S. Ganpati, DGM from Punjab National Bank, Head Office, New Delhi, Mr A.K. Gupta, Chairman, Rajasthan Gramin Bank and a large number of staff and customers of Rajasthan Gramin Bank. The inauguration of the function coincided with a loan distribution function and an exhibition of the products of the units financed by Rajasthan Gramin Bank was also on display at the venue.

With the completion of the CBS process, the customers of the bank will be able to operate their account in any of the 205 SOLS located in 5 districts of Rajasthan namely – Alwar, Bharatpur, Dholpur, Jhunjhunu and Sikar.

While inaugurating the function, the Minister complemented the management and staff of the Rajasthan Gramin Bank in completing the process in a record period of seven months and becoming the 1st RRB in Rajasthan to provide ‘online’ and ‘any where’ banking to its customers. He noted that the bank has taken a giant step forward to ensure that the benefits of technology reach the rural poor living in far flung areas of Rajasthan.

The Minister also inaugurated the Staff Training Centre of the bank at Sikar and lauded the bank authorities for taking yet another lead in setting up their own training centre and computer labs in compliance of the desire and directive of the Union Finance Minister for providing in house training facilities to its staff as well as farmers for the purpose of capacity building.

Earlier, Mr A.K. Gupta, Chairman, Rajasthan Gramin Bank, while welcoming chief guest Mr Namo Narain Meena, Mr K.R. Kamath, CMD, Punjab National Bank and other guests acknowledged that the bank has been able to complete the difficult process of rolling over all 205 SOLS to CBS much ahead of schedule with the active support and able guidance of their sponsor bank, that is , Punjab National Bank.

The bank has registered an increase of 130 percent up to December 2009. As at present, bank has 205 SOLS and has received licenses to open as many as 7 more branches. The bank is serving more than 10 lakh customers and has issued more than 1 lakh KCCs, more than 7000 GCCs and has provided credit to about 5700 SHGs and opened more than 1.7 lakh No Frill a/cs up to December.09.

Under the ADWR Scheme of the Govt. of India, as many as 41745 farmers benefited. Of these the loan amount of 35600 farmers was completely waived off and 6127 farmers received partially relief and 11724 farmers were again financed by the bank.

Mr Gupta further informed that bank had adopted 195 villages for freeing from the clutches of money lenders. Of these 138 were fully freed and 3009 beneficiaries were given an advance of 9.30 crore for the purpose. He also informed that during the current year, the bank has disbursed Rs.710.76 crore in its command area under annual credit plan and the bank has already exceeded its annual budget. Now the bank is stepping into new and innovative activities like financing green houses, herbal processing, solar lighting units, organic farming, cold storage, rural godownss and non - farm sector advances in a big way.

Mr R IS. Siddhu, Chief General Manager, Punjab National Bank, Head Office, mentioned that covering of cent percent business under CBS in RRBs is in tune with the policy guidelines of RBI as well as Govt of India. The deadline fixed for completing the process by PNB was September 2010. However, 4 out of 6 RRBs sponsored by Punjab National Bank have already completed 100 percent CBS and two others are heading towards it. This reflects the sprit and enthusiasm with which RRB staff has taken the process of switchover to the new technology. The operationalisation of CBS system in the bank will ensure quick and efficient service to the rural customers, besides providing other connected benefits of technology.

Mr K.R. Kamath, Chairman and Managing Director, Punjab National Bank in his keynote address lauded the efforts of the RRB in quickly completing the process of CBS and in setting up their own training centre and computer labs for providing training to their staff for capacity building.

He expressed hope that training centre of the bank will besides meeting their own requirements will cater to the needs of the farmers as a showcase of modern farming. While speaking on the occasion, he also dwelt on major highlights of the performance of the the bank.

He also informed that bank is presently serving 46 million customers and the total business of the bank is over 4 lakh crore. The CD Ratio of the bank is 73 percent and it is achieving all national goals with good margin. The bank is taking active role in the economic development of society and farming community in particular. The bank has launched a new scheme called ‘Krishak Sathi’ for financing repayment of debt taken from money lenders. So far 60000 farmers have been benefited under the scheme.

He further informed that the bank has been a front runner in financing farmers, whose loans have been waived under GOI Debt Waiver Scheme. Eighty percent of the farmers whose production credit was waived have been financed afresh. This year, up to December '09, the bank has financed over 3 lakh new small and marginal farmers totaling Rs.2600 crore of which tenant farmers and share croppers are more than 7000 involving Rs.92 crore.

The bank has opened so far 67 lakh no frill accounts and financed more than 64000 general credit cards. The bank is a part of corporate social responsibility has established farmers training centres in different states. One such centre is at Neemrana in Alwar district of Rajasthan. All these centres are providing free of cost training on agri and allied activities, computer courses, tailoring, mobile repairing etc. are given to the farmers, women and rural youth. The bank has also started Rural Self Employment Training Institution - RSETIS in different lead districts in association with the Ministry of Rural Development, Govt of India for imparting training to rural BPL youth on entrepreneurship development and skill development.

With inauguration of CBS and with BC/BF model, he felt sure that the concept of ‘doorstep banking’ would be a reality and it would be possible to provide banking facilities to remote rural areas and Rajasthan Gramin Bank has already taken a lead in that direction by issuing ICT- based biometric cards at Pilani. (editor@thesynergyonline.com) .

YES BANK UNVEILS MOBILE SERVICES POWERED BY NOKIA

Thesynergyonline Banking Bureau

NEW DELHI, FEB 15 :
NOKIA , a global player in the mobile telecommunications industry, Yes Bank India’s new-age private sector bank and Obopay India, a wholly- owned subsidiary of Obopay, Inc., have launched a mobile payment service enabling transfer of money using the mobile device in a secure manner.

The bank has received the regulatory approvals from the Reserve Bank of India (RBI), to act as the issuing bank and the custodian of funds under these services. The pre-paid mobile payments service will be initiated as a pilot in Pune in India . These services will be distributed leveraging off the reach of Nokia’s retail channel.

‘Mobile money services by the bank in partnership with Nokia’ will augment financial inclusion amongst the unbanked and under-banked consumer segments by bringing financial services to the consumers’ mobile device and will create a financial ecosystem which is inclusive, sustainable and scalable. This cutting-edge technology will also facilitate convenience and ease of usage in making mobile payments through mobile devices, across the country. Going forward, the program application will also be pre-embedded in Nokia mobile devices making the service highly accessable and user-friendly.

This service will enable consumers to transfer money to other individuals, pay utility bills as well as recharge prepaid SIM cards (top-ups), by using their mobile devices. Subsequently, consumers will later also be able to pay merchants for goods and services through their mobile devices. This is a first-of-its-kind service providing customers the ability to initiate mobile payments through multiple channels i.e. SMS, IVR, WAP, JAVA and FIRE. The pilot in Pune will also review customer behaviour & delivery benchmarks to ensure a flawless service framework, prior to the national roll-out in a phased manner.

“Mobile Money Services by the bank is based on Obopay’s payments platform and designed to work in partnership with mobile network operators and banks, involving distributors and merchants in a dynamic ecosystem, to seamlessly provide new services. YES BANK is our first partner in India to bring this service to market,” said D Shivakumar, VP and Managing Director, Nokia India .

Mr Rana Kapoor, Founder Managing Director and CEO, Yes Bank said, “The initiative will provide consumers with greater ‘Anytime Anywhere’ convenience and will be a significant milestone on the path of financial inclusion as stated by the Reserve Bank of India . The mobile banking services will be made available to a wider consumer base by leveraging off Nokia’s retail network."

"Such cutting edge, first-of-its-kind initatives are geared towards attaining the bank's stated objective of providing consumers with a superior service experience through use of creative technologies. The bank aims at executing a concerted strategy by continuously launching innovative and secure banking channels to enhance customer satisfaction and increase focus on providing convenience and choice to our clients. This partnership will help bank in consolidating its leadership in the mobile banking space ," he added.

“This mobile payment service will enable educational and Government payments to create an ecosystem for financial inclusion. With only about 200-300 million Indians having some form of national identity document and therefore an access to financial services, there are nearly a billion others with no National ID who are constrained from accessing the financial system and its services. This service eliminates the dependence on the physical presence of a branch or availability of internet banking services and will successfully ride on the deeper penetration of mobile services in India,” said Suresh Sethi , Group President, Transaction Banking Group, YES BANK.

“Obopay has an understanding of the India marketplace and believe our offering will truly make a positive difference for consumers, businesses and the overall economy of India ,” said Carol Realini, Founder and CEO of Obopay. (editor@thesynergyonline.com) .

PNB UNVEILS 6 TECH-DRIVEN INITIATIVES TO ENHANCE CUSTOMER CONVENIENCE

Thesynergyonline Banking Bureau

Mr K R Kamath, CMD, PNB addressing the gathering at the launch function of PNB Technology driven new initiatives in Mumbai on Thursday. Also seen are Mr M V Tanksale (right) and Mr Nagesh Pydah (left), Executive Directors, Mr L M Foncesa, Director (extreme left), Mr Ranjan Dhawan, Chief General Manager (extreme right) and Mr Ajay Misra, General Manager (on the podium).

MUMBAI, FEB 11 :
PUNJAB National Bank (PNB) , a major nationalised bank of India with an exclusive focus on providing value- added services by leveraging technology, today showcased its 'Technology Highway' by unveiling 6 technology- driven initiatives to enhance customer convenience.

These products are : PNB- Mobile Banking , PNB- Biz – Merchant Acquiring Business(POS) , PNB-Smart Invest (ASBA) and PNB-Xpress Remit (Remittances from Abroad) , PNB- World Travel Card , PNB- Pre-paid Card.

The bank has already brought 100 percent of its offices under the centralised banking platform, with 3075 own ATMs and connectivity to 45000 other ATMs, also offer facilities like Internet banking to both the retail/corporate customers along with debit and credit cards.

PNB Mobile Banking would enable bank's customers in accessing banking services anytime/anywhere on-the-move through mobile phones. It is compatible with popular mobile devices across most GSM and CDMA operators with easy to operate features.

The bank's Mobile Banking Services offering is in line with the guidelines of the Reserve Bank of India. PNB Mobile Banking services introduction will entail checking account balances, transfer of funds, stop-payment of cheques, request for a cheque book and many more add-ons features.

The introduction of services of PNB-Biz Merchant Acquiring Business (POS) besides meeting the demand of customers/merchants for increasing the use of plastic money also provides a platform for the bank in generating revenue. Different type of POS terminals – Physical, GPRS, PC Based, IVRS and cash register Integrated with POS would be available. This will help the merchants in generating MIS and simultaneous accounting at the time of transaction at POS, besides giving the merchant complete reconciliation of his sales transactions. The Bank would soon come out with its own Payment Gateway to facilitate e-commerce transactions over Internet.

The introduction of PNB-Smart Invest [Application Supported by Blocked Amount (ASBA)] has provides an alternative mode of payment in Public Issues to bank’s customers. With no submission of cheques required, PNB-Smart Invest is a Simple, Safe and Smart way of investing. The funds from the customers’ accounts will be debited only after the allotment of shares, thereby saving them from the loss of interest and hassles of getting a refund.

To overcome the delays in NRI Remittances and to provide faster credit in the beneficiary accounts, the PNB-Xpress Remit allows NRIs to remit funds directly in the beneficiary account in any PNB branch in India. The beneficiary, if opted for SMS Alert facility will get immediate alert of the remittance and would be able to withdraw money from any PNB branch. Extending convenience of making payments using ' 'plastic money', the two variants of value-added cards were added to the bank’s card-bouquet - PNB-World Travel Card for foreign travelers and PNB-Prepaid Card for domestic use.
 
The PNB World Travel Card – an 'e-wallet' for the International traveler acceptable across the globe would be available in three major currencies- US Dollar, Pound Sterling and Euro.  The World Travel Card offers convenience to outbound travelers who can buy goods and services across the globe by just swiping it.
 
The PNB-Prepaid Card – a boon to the domestic consumer in meeting the shopping/purchasing needs in a cashless way. The PNB Prepaid card with a reloading option would be acceptable at all merchant establishments and with a facility to withdraw cash. The card may also be used as a gift instrument. This may also be used by corporate for bonus/reward instrument for employees/vendors.

The bank has leveraged its technology lead in accelerating growth of business and has crossed total business of 4 lakh crore as on December 31 , 2009.

With over 5000 branches/offices under core banking spread in India and spreading wings overseas (presently at 9 locations), the bank offers a complete bouquet of services through the ATMs, Internet banking and now Mobile banking. The bank has over 93 lakh debit card holders and 9 lakh Internet banking users.

The latest additions to the technology- based products scripted a new chapter in not only adding to its electronic banking – bouquet but also in providing uninterrupted and enhanced services to the customers.

The use of state – of – art technology has helped the bankl to transcend the geographical boundaries in extending banking and financial services through multi-pronged services/products.

On achievement of this important milestone, Mr K R Kamath, Chairman and Managing Director of Punjab National Bank, said, “The bank is always a front runner in making the technology customer- friendly and address customers’ emerging needs and support them in availing banking and financial services in a fast, convenient and secure manner.” (editor@thesynergyonline.com)
 

BANKS TO EXTEND LOANS AT BASE RATE FROM APRIL 2010 : GOKARN

Thesynergyonline Banking Bureau

NEW DELHI, FEB 11 :
DEPUTY Governor, Reserve Bank of India, Dr. Subir Gokarn on Thursday clarified that the apex bank won’t take any policy decision on interest rates until April 2010 and the existing interest rate regime will prevail.

Inaugurating the ASSOCHAM organized Conference on Capital Markets – Growth with Governance here today, Dr. Gokarn, however, added that banks would have to provide loans on a base rate from next fiscal onwards as current benchmark prime lending rate (BPLR) provides for no transparency.

The apex bank has already issued a draft circular to all stake holders for seeking their opinion on fixed rate so that consumers or borrowers gains the best, pointed out Dr. Gokarn.

Under the existing BPLR system, banks use their negotiating power for extension of borrowings to lenders and based on the bargaining between concerned banks and their borrowers, the rates for lendings are decided which means that for different consumers banks charge different interest rates.

Therefore, the apex bank has come out with a circular so that extension of loans become a reality on a base rate and no differential on lending rates is assured for different categories of customers, said Dr. Gokarn.

On the issue of strengthening capital market, Dr. Gokaran said it would be the priority of the bank to ensure growth and sustainability in the capital market for investors.
He suggested that climate change would become a major issue in coming days and companies that take all possible precautions for emission reduction would receive the highest attention from investing companies. 

Therefore, the corporate world should attach maximum significance for corporate social responsibility in fair proportion with corporate governance.

Speaking on the occasion, Secretary Ministry of Corporate Affairs, Mr. R. Bandyopadhyay said that under the new Companies Act, the government would define very explicitly the role of independent directors as also put a fixed ceiling for individuals to become independent directors only in few companies against the current practice in which no ceiling is prescribed for. This will ensure accountability for independent directors so that corporate mis-appropriation are put on hold.

The government would table the draft Company Bill which is currently subject to scrutiny to select group of MPs in monsoon session in which disclosure norms would be rolled out for corporates to follow them to ensure fair corporate governance, said Mr. Bandyopadhyay.

He, however, threatened that companies that fail to adhere to new disclosure norms would be subjected to legal course by the regulator and accordingly will have to be dealt with.

Speaking on the occasion, ASSOCHAM Capital Market Committee Chairperson, Ms. Naina Lal Kidwai said that India needs to reduce it’s over-regulations for corporate world so that the capital market which determines the mood of Indian economy is strengthened on sustained basis.

Among others who spoke on the occasion comprised Mr. Prithvi Haldea, Co-Chairperson, ASSOCHAM Capital Markets Committee, Mr. Paul Joseph, Principal Advisor, MCX-SX, Ms. Bharti Gupta Ramola, Executive Director, PWC, Mr. P K Nagpal, ED, SEBI, Mr. Subhash Agarwal, Co-Chairperson ASSOCHAM Capital Markets Committee and Mr. D S Rawat, Secretary General ASSOCHAM. (editor@thesynergyonline.com)

IDBI REVISES INEREST RATES ON DEPOSITS

Thesynergyonline Banking Bureau

NEW DELHI, FEB 11 :
IDBI Bank has relaunched the 500 days fixed deposit at an interest rate of 7 percent p.a. The bank has also revised the interest rate on retail term deposits by 25 basis points in selected maturity buckets.

The revised interest rate is effective from February 15, 2010. With the revision, the rates have been restored to pre November 2009 levels, in most of the buckets :-

Additional Interest rate for Senior citizen of 50 basis points above the normal interest rate. The penalty of 1 percent on the premature withdrawal of deposit is applicable.   (editor@thesynergyonline.com)

LAKSHMI VILAS BANK NET UP BY 70% AT RS 51 CRORE

Thesynergyonline Banking Bureau

NEW DELHI, FEB 01 :
THE net profit of Lakshmi Vilas Bank for the 9 months ended December 31, 2009 stood at Rs. 51.44 crore, registering a growth of 69.71 percent as against Rs. 30.31 crore in the corresponding period of the previous year.

The total income of the bank for the third quarter ended December 31, 2009 has grown 22.55 percent to Rs. 259.56 crore from Rs. 211.80 crore in the corresponding Q3 of previous year.

The interest on advances and investments for the third quarter ended Dec. 2009 has grown from Rs. 171.43 crore to Rs. 235.22 crore, registering a year-on-year growth of 37.21 percent. Total deposits level rose from Rs 6402 crore to Rs 8772 crore, up by 37.02 percent.

CASA (current account to savings account) deposits have increased from Rs. 978.73 crore to Rs. 1262.31 crore, registering a growth of 28.97 percent. The bank's credit portfolio expanded from Rs. 4712 crore to Rs. 6188 crore, a 31.32 percent growth. Total business improved to Rs. 14,960 crore from Rs 11,114 crore, a growth of 34.61. (editor@thesynergyonline.com) .

'TECHNOLOGY BANK OF THE YEAR - 2009 ' AWARD FOR INDUSIND BANK

Thesynergyonline Banking Bureau

NEW DELHI, FEB 01 :
INDUSIND Bank received the 'Technology Bank of the Year-2009' award in the private and foreign bank cat egory from the Indian Banks' Association (IBA) recently .

Amongst the major parameters considered for this award were the contribution of technology in the overall success of the organis at ion, maintaining its competitive edge, opening up revenue streams, changing the competitive landscape and projects implemented.

Mr. Romesh Sobti, MD and CEO of IndusInd Bank said, "This prestigious award from IBA recognises the effective utilis at ion of technology by our Bank. The all-round usage of technology has given multiple benefits to the Bank - significant cost saving, better and faster customer service, meeting more effectively all regul at ory requirements and giving us a strong competitive edge."

IndusInd Bank was evaluated and awarded this award on various parameters and projects.(editor@thesynergyonline.com) .

PNB OPENS DISABLED- FRIENDLY BIOMETRIC ATM AT ROHINI

Thesynergyonline Banking Bureau

NEW DELHI, JAN 30 :
PUNJAB National Bank (PNB), Delhi Circle, dedicated Disabled Friendly Biometric ATM in the premises of Delhi SC/ST/OBC, Minorities, Handicapped Financial & Development Corporation at Ambedkar Bhawan, Sector 16, Rohini, Delhi on Friday.

The ATM was inaugurated by Mr B.V. Selvaraj, IAS, Principal Secretary (Urban Dev.), Govt. of NCT of Delhi and Managing Director of Delhi SC/ST/OBC Minorities, Handicapped, Financial & Development Corporation.

In his address Mr B. Selvaraj, chief guest applaued the efforts made by PNB for dedicating physically challenged -friendly biometric ATMs for the convenience of physically- handicapped persons, who are an integral part of society, and should have equitable access to modern banking services.

Mr R.K. Dubey, General Manager (Delhi Circle) informed that at a SLBC meeting, Mr B.V. Selvaraj, Principal Secretary (Urban Dev.), Delhi Govt. desired that in case any bank is interested in putting-up physically challenged friendly ATMs, Delhi Govt. will provide space."

"The bank took the initiative and approached Delhi SC/ST/OBC, Minorities Handicapped Financial & Development Corporation to provide space to install the ATMs. In this series, one of the ATMs is being inaugurated today with 02 more such ATMs to come-up shortly. The bank is involving itself with social-economic needs of Delhi city and taking various initiatives," he added.

This is 2nd such ATM. First Disabled Friendly ATM was put up and opened on December, 2009 at AADI on the International Day of Persons with Disabilities. This is also 501st ATM of PNB in Delhi, the highest by any bank in the Capital City of Delhi. (editor@thesynergyonline.com) .

OBC Q3 NET PROFIT Y-O-Y UP 15.23 % AT RS 818 CRORE

Thesynergyonline Banking Bureau

NEW DELHI, JAN 28 :
THE net profit of Oriental Bank of Commerce (OBC) has increased to Rs.817.64 crore as on December 31, 2009 ,registering y--o-y growth of 15.23 per cent. The bank's operating profit has increased to Rs.1644 crore as on December 31 ,2009 , registering y-o-y growth of 43.42 percent.

The business mix of the bank inc reased to Rs.189299 crore as on December 31 , 2009, registering y--o -y growth of 20.58 percent. Total deposits of the bank increased to Rs.110745 crore as on December 31 , 2009, registering y-o-y growth of 21.20 percent.

CASA Deposits have increased to Rs.27050 crore as on December 31, 2009 , registering y-o-y growth of 21.39 percent. CASA deposits as a percentage of total deposits has improved from 23.7 percent as on March 31, 2009 to 24.4 percent as on December 31 , 2009. Total advances of the bank increased to Rs.78555 crore as on December 31, 2009 registering y-o-y growth of 19.72 percent.

The bank's priority sector advances have increased to Rs.26244 crore as on December 31,2009, registering y-o-y growth of 23 percent. Priority sector advances as a percentage of adjusted net bank credit stood at 38.31 percent. Retail credit has increased to Rs.10579 crore as on December 31 ,2009 , registering y-o-y growth of 24.54 percent.

The operating profit has increased to Rs.1644 crore as on December 31,2009 , registering y-o-y growth of 43.42 percent . Net profit has increased to Rs.817.64 crore as on December 31, 2009 , registering y-o-y growth of 15.23 percent .

Gross NPA as percentage to total advances has decreased to 1.64 percent as on December 31 , 2009 (from 1.93 percent as on September 30 ,2008). Net NPA as percentage to total advances has decreased to 0.75 percentage as on December 31 , 2009 (from 0.86 percent as on September ,2008).

The bank's CRAR as on December 31, 2009 stood at 13.20 percent. NIM* has increased to 3 percent for Q-3 from 2.02 percent as on December 31 , 2009 . Net Interest Income at Rs.1918 crore showed a y-o-y growth of 25.42 percent . Non-interest income has increased to Rs.934.64 crore as on 31.12.09, registering y-o-y growth of 26.77 percent.

The business per employee has increased from Rs.11.42 crore as on December 31 , 2009 to Rs.12.15 crore as on December 31 ,2009.

As part of strategy to expand customer base the bank will soon be launching ' mobile banking' facilities for its
customers. In the first phase, the facilities provided would include balance enquiry, account statement, intra bank fund transfer, inter bank fund transfer and branch and ATM locator. (editor@thesynergyonline.com) .

YES BANK RAISES RS 1034 CRORE THROUGH QIP

Thesynergyonline Banking Bureau

MUMBAI, JAN 28 :
YES Bank, a new age private sector bank, has raised US$ 225 million (Rs. 1033.87 crore ) through a Qualified Institutions Placement (QIP). The bank will issue 3.84 crores equity shares at Rs. 269.50 per equity share (including a share premium of Rs. 259.50).

The placement increases the overall capital adequacy to over 20 percent and Tier I Capital Adequacy to over 13 percent (based on assets as at December 31, 2009).

The additional capital now brings the total shareholders’ funds to Rs. 3,000 crore, and the total capital funds to Rs. 5,070 crore pursuant to the QIP and an additional placement of Rs. 300 crore of lower Tier II debt on January 22, 2010. This will lead to a dilution of 11.33 percent on the expanded capital base.

The issue of US$ 225 million, was oversubscribed on strong demand from foreign institutional investors and domestic mutual funds. The capital raising comes on the back of record profits of Rs. 125.9 crore and a credit growth of 71.1 percent y-o-y delivered by the bank in Q3FY10.

On the completion of the equity issuance, Mr. Rana Kapoor, Founder/Managing Director & CEO said, “This capital raising has been consummated to further augment our core Tier I capital base/capital adequacy, and enhance the long-term resources of Yes Bank. With this capital raising, the bank's total capital funds have crossed Rs. 5,000 crore.”

Mr. Kapoor further added, “Despite the challenging financial environment, Yes Bank has shown a strong, and sustained growth in financial performance over the last five quarters. The enhanced capital base through the QIP and our recent Tier II issuances, positions Yes Bankl for the economic upturn. We will significantly augment our Large Corporates Business (C&IB), and the high growth commercial banking and branch banking businesses through a focused customer relationship management approach."

"Our goal is to increase the amount of business we do with our customers by building on our strong customer relationships and cross-selling our banking and advisory products. We are working to increase the proportion of low-cost retail deposits by expanding our branch and ATM network, and by positioning our Internet and phone banking platform along with other alternative delivery channels to attract customers in various liability segments,” he added.

Morgan Stanley, CLSA and Goldman Sachs were the Joint Global Coordinates and Book Running Lead Managers to the QIP issue. The Legal Advisors to the issue were Amarchand & Mangaldas & Suresh A. Shroff & Co., and the international legal advisors to the Book Running Lead Managers were Linklaters. The Auditors were BSR & Co. Chartered Accountants. (editor@thesynergyonline.com) .

PNB Q3 NET PROFIIT UP 0.55% Y-O-Y AT RS 1011 CRORE

Thesynegyonline Banking Bureau

Mr K.R.Kamath, CMD, PNB announcing Q3 financial results i.e. December 2009 of FY 2009-10 in New Delhi on Wednesday. Also seen are Mr M.V. Tanksale(right from the front) and Mr Nagesh Pydah (left from the front), Executive Directors of the bank.

NEW DELHI, JAN 27 :
THE net profit of Punjab National Bank (PNB) for Q3 of FY2009-10 amounted to Rs. 1011 crore as against Rs 1006 crore last year, registering a y-o-y growth of 0.55 percent.

The bank's net profit for 9 months ended December 2009 amounted to Rs. 2770 crore as compared to Rs.2225 crore last year, registering a y-o-y growth of 24.5 percent.This was disclosed here by Mr K R Kamath, CMD, PNB at a media conference here today.

The bank made an adhoc provision of Rs 275 crore towards wage revision during nine- month period ended December 31 , 2009 taking the cumulative provision for wage settlement to Rs 875 crore , he informed.

The total business of the bank crossed the landmark of Rs 4 lakh crore on December 31 , 2009 to reach Rs 4,04,373 crore as against Rs.3,38,728 crore in December ’08, showing a y-o-y growth of 19.4 percent. Deposits of the bank rose to Rs.2,33,946 crore as on December 31 , 2009 from Rs 1,97,069 crore as on December 31 , 2008, exhibiting a y-o-y growth of 18.7 percent.

Advances of the bank at Rs.1,70,427 crore as on December 31 , 2009 grew by 20.3 percent (y-o-y) as against Rs.1,41,659 crore as on December 31 , 2008. Credit deposit ratio improved to 72.8 percent as on December ’09 from 71.9 percent in December ’08.

The bank's operating profit for Q3 stood at Rs 1818 crore as against Rs 1802 crore in Q3 December ’08, registering a y-o-y growth of 0.89 percent.

The operating profit of the bank during the nine- month ended December 2009 grew by 20.3 percent to reach Rs 4994 crore from Rs 4156 crore.

The core operating profit (excluding treasury profit) in Q3 FY 2010, amounted to Rs 1661 crore, registering yoy growth of 13.7 percent. Core net profit (excluding treasury operations) in Q3 FY 2010 amounted to Rs 897 crore registering a y-o-y growth of 155 percent

The bank's total income for Q3 is Rs 6236.55 crore. The total income rose by 14.53 percent to Rs 18,490 crore while interest income at Rs.16,120 crore, grew 14.49 percent y-o -y for nine months ended December ’09.

The bank's non-interest income during the third quarter of 2009-10 amounted to Rs 731 crore. Non-Interest Income increased to Rs 2370 crore as at 9 months ended December ’09, showing y-o-y growth of 14.8 percent.

The gross NPA to gross advances ratio of the bank improved to 1.83 percent as at December’09 (2.11 percent as at December’08. Net NPA to net advances ratio stood at 0.48 percent as at December’09 (0.39 percent as at December ’08). Agricultural advances eligible for debt relief amounting to Rs. 363 crore have been added back to NPA portfolio due to non- payment of their share amount by the farmers by December 31 ,2009.

The bank's provision coverage ratio is at 82.91 percent as compared to RBI’s stipulation of 70 percent. The bank has maintained net interest margin (NIM) at record 3.84 percent for the quarter ended December 31 , 2009 and 3.59 percent for nine months ended December 2009. The bank's return on assets stood at 1.51 percent in the quarter ended December’09 (nine months: 1.43 percent as against 1.37 percent last year).

The cost to income ratio is 40.58 percent as at the quarter ended December ’09 (nine months: 42.31 percent as against 42.20 percent).

Earnings Per Share (EPS) was Rs 128.30 (annualized) for the quarter ended December 31 ,2009 (nine months: Rs.117.15 against Rs 94.10). Book Value Per Share increased to Rs. 492.84 as at December ’09 from Rs 412.61 as on December 31, 2008.

CRAR of the bank is at 14.76 percent under BASEL-II against the stipulated norm of 9 percent. After providing for an interim dividend at the rate of 100 percent, the CRAR (BASEL-II) as on December ’09 is 14.56 percent (Tier-I Capital: 9.27 percent Tier-II Capital : 5.29 percent) improving from 13.91 percent as on December’08

The bank's credit to SME sector at the end of December 2009, grew by 60 percent to Rs 32,654 crore including retail trade advances of Rs. 3785 crore as per changed definition of regulator.

Even after adding retail trade in the corresponding period last year, the y-o-y growth of SME advances amounts to 36 percent. The credit to micro and small enterprises recorded a substantial increase of Rs 10,291 crore to grow at spectacular 69.2 percent to Rs. 25,157 crore as on December 31 , 2009 (y-o-y).

Under CSR initiative under PNB Krishak Saathi (Debt Swap Scheme), the bank has financed Rs.139.75 crore to 34,459 farmers upto December 2009 for repaying the debt taken from private money lenders. During the 9 months of 2009-10, the bank conducted 4894 Kisan Gosthies wherein 1.97 lakh farmers benefitted through marketing/dissemination of useful information , he said. (editor@thesynergyonline.com)

AXIS BANK LAUNCHES ITS HINDI WEBSITE

Thesynergyonline Banking Bureau

NEW DELHI, JAN 25 :
AXIS Bank has launched its website in Hindi http://hindi.axisbank.com on the eve of India's Republic Day.

Speaking on the occasion Ms. Manju Srivatsa, president, Retail Banking, Axis Bank said, "As the Internet reaches the hinterlands and our branch network grows beyond the major cities, we believe that there is a need to provide information on the Bank's products and services in languages other than English. The Hindi website is the first of such initiatives on the Internet following the Bank's pioneering effort on the ATMs, where Axis Bank provides services in 13 languages. We expect the Hindi website to be highly beneficial to our current and prospective customers".

Presently, the hindi website has been launched with Personal Banking and 24 X 7 - Banking sections, which covers the entire range of the products offered to the bank's retail customers and add-on services like Mobile Banking, Internet Banking, Phone Banking, etc. The remaining sections will be made live subsequently.

The Bank carries out its corporate social responsibility initiative through Axis Bank Foundation set up in 2006 as a registered public trust. Each year the Bank transfers 1% of its net profit for the previous year to the foundation.

YES BANK Q3 NET PROFIT UP 19% AT RS 125.9 CRORE

Thesynergyonline Banking Bureau

NEW DELHI, JAN 20 :
THE profit after tax of Yes Bank for third quarter of fiscal 2009-10 was up 19.0 per cent at Rs. 125.9 crore as compared to Rs. 105.8 crore for the third quarter of the fiscal 2008-09.

On the bank's financial performance, Mr Rana Kapoor , Founder/Managing Director & CEO, Yes Bank said, "The bank has achieved record profits second time sequentially on the back of strong and sustainable net interest income and exceptional credit growth of 71.1 percent y-o-y and 14.8 percent q-o-q, despite muted credit growth in the industry."

"We continue to maintain extremely high productivity and have posted ROEs in excess of 20 percent for the 5th successive quarter. We are building a robust branch banking model and are in the process of hiring and retaining world class human capital as the Bank enters its second version of its growth strategy with the Vision to become the Best Quality Bank of the World in India by 2015," he added.

* * Total Net Income without adjusting for fixed income gains up by 7.9%y-o-y

The bank's net interest income (NII) for Q3FY10 grew by 69.5 percent to Rs. 210.9 crore (Rs. 124.5 crore in Q3FY09) on account of strong growth in advances and investments and improved net interest margin . NIM for Q3FY10 increased to 3.1 percent as compared to 2.8 percent in Q3FY09. Gross yield on advances for Q3FY10 was 10.3 percent (13.7 percent in Q3FY09) while cost of funds reduced to 6.6 percent from 9.6 percent in Q3FY09.

Total Advances grew by 71.1 percent to Rs. 18,710.4 crore as on December 31, 2009 from Rs. 10,934.9 crore as at December 31, 2008, despite muted credit growth in the industry. Investments grew by 19.1 percent to Rs. 8,282.0 crore as on December 31, 2009 from Rs. 6,952.8 crore as on December 31, 2008.

Total Deposits grew by 62.8 percent to Rs. 22,038.6 crore as on December 31, 2009 from Rs. 13,539.1 crore as on December 31, 2008. Current and Savings Account deposits grew by 79.4 percent to Rs. 2,228.9 crore while term deposits grew by 61.1 percent to Rs. 19,809.7 crore during the same period. The bank's balance sheet grew by 49.8 percent to Rs. 29,587.5 crore as on December 31, 2009 from Rs 19,746.6 crore as on December 31, 2008.

Break-up of the total non-priority sector lending as on December 31, 2009 was as : Wholesale Banking (72.6 percent ), Commercial Banking (23.1 percent), and Branch Banking (4.3 percent).

Transaction Banking and Financial Advisory business continue to show traction y-o-y and sequentially. Non Interest Income was Rs. 127.8 crore for the quarter (Rs. 189.4 crore in Q3FY09). For the 9 months ended December 31, 2009, non-interest income grew 10.6 percent to Rs. 415.4 crore (Rs. 375.7 crore for the 9 months ended December 31, 2008) and contributed 43.3 percent for 9 months ended December 31 ,2010.

Components of Non interest income for Q3FY10 were as : Transaction Banking - Rs. 37.1 crore, Financial Advisory - Rs.57.0 crore, Financial Markets - Rs. 28.0 crore and 3rd party distribution / retail fee - Rs. 5.7 crore.

Operating profit for Q3FY10 was up 17.3 percent to Rs. 216.2 crore as compared to Rs. 184.4 crore for Q3FY09 driven primarily by sustained revenue growth from multiple revenue streams and lower operating cost to income ratio of 36.2 percent in Q3FY10 (41.3 percent in Q3FY09).

Gross Non Performing Assets as a proportion of Gross advances was at 0.29 percent while Net Non Performing Assets as a proportion of Net advances was at 0.09 percent as on December 31, 2009 as against 0.44b percent and 0.15 percent respectively as on December 31, 2008.
Bank's total loan loss coverage ratio was at 270 percent while specific provisioning cover was at 70.1 percent as on December 31, 2009.

The bank's restructured advances declined by Rs. 21.9 crore during the quarter. Total restructured advances were Rs. 134.0 crore as on December 31, 2009 (Rs. 155.9 crore as on September 30, 2009) which constituted 0.71 percent of the Gross Advances as at December 31, 2009.

RoE of 26.3 percent (annualized) and RoA of 1.80 percent (annualized) for the quarter consistently continue to be amongst the highest in the Banking industry. RoE has been consistently greater than 20 percent and RoA has been more than 1.5 percent for the last 5 consecutive quarters. The bank's Tier I Capital stood at 9.0 percent and total CRAR stood at 16.2 percent as on December 31, 2009. (editor@thesynergyonline.com) .