The things are not going to be very rosy for the Indian banks in terms of mortgage. A report suggests that the total outstanding mortgage for the banks will be 40 trillion rupees by 2020. During this time, the margins will be forced to come down and that will put a lot of pressure on the profitability. This appeared in a report that appeared on Tuesday. read more
Talking about fund-raising, SBI Chairman, O P Bhatt says that the bank intended to raise around Rs. 500-crore by end-this year. Along with this, as the liquidity rates were not the same as earlier, therefore the bank, he said, had decided not to bring about any further changes in the lending or deposit rates in the near-term. read more
Last week, SBI announced that it will start its floating rate term deposits from September 6. According to the new rule, depositors will not be allowed to withdraw their deposits before the maturity date when the rate of interest rate will increase. This new policy will support the banks with the improved interest rate risk management and will also allow the banks to line up their floating rate loans to floating rate deposits. read more
It has appeared that entire 37.48 per cent stake of the Singapore-based DBS Bank, is to be bought back by its partner the Murugappa group in their joint venture, Chola DBS Finance, for Rs 376 crore. A rise to 74.96 per cent would be seen in the Murugappa group’s holding in the non-banking finance company Chola DBS Finance. A sum of Rs 150 crore and Rs 226 crore would be offered by Tube Investments and Ambadi Estate Private, group companies of Murugappa Group respectively to purchase DBS.
Canara Bank has reported a 50 percent growth in net profit to Rs. 1,053 crore in the third quarter of the current financial year against Rs. 702 crore in the same period previous year. The total income grew 1.6 percent to Rs. 5,469 crore in the quarter from Rs. 5,383 crore in the corresponding period a year ago, the bank said in a regulatory filing on Thursday. While, the net interest income also recorded a growth of 19 percent to Rs. 1,478 crore in the quarter from Rs. 1,244. read more
The results for Q3 was recently declared by Bank of Baroda, which showed that the company’s Q3 NII was higher at Rs 1,601.2 crore versus Rs 1,461.8 crore, year-on-year, YoY. The net profit for the bank was up at Rs 832.5 crore versus Rs 708.4 crore, YoY. Prior to this, Business News major CNBC-TV18 poll predicted the net profit at Rs 714.7 crore and net interest income at Rs 1,500.8 crore, so the numbers were better than expected. read more
A flat net profit growth was registered by State Bank of India (SBI) in the December quarter, as compared with the year-ago period. The major reason for this to happen was an enormous hike in investment depreciation, a consequence of the rise in yields and the fall in prices of government securities. A rise of 3% year on year (y-o-y) was posted by the bank at the operating profit level. However, that was again low somewhat because of lower profit on sale of investments. read more
As has been confirmed by official reports and figures, the number of approvals awarded for residential property mortgages during December of 2009 managed to double as compared to the previous year, and raced ahead to hit the highest recorded figure of approvals in over 2 years. read more
Japan’s central bank, enduring soaring political pressure not to reduce stimulus measures too early, kept its benchmark interest rate near zero and committed to combat deflation as gains in the yen risk stunting the nation’s economic recovery. read more
Prior to RBI’s quarterly monetary plan, Ernst & Young, global consultancy firm, announced that the central bank is likely to increase interest rates to draw out liquidity from the market and check out costs from rising further. The report also said that RBI may also lift up the amount banking institutions require to park with the central bank by around 50 bps. read more
