Result Update

State Bank of India The net profit of State Bank of India has fallen marginally by 2.53 % to Rs.1,184.49 crore for the second quarter ended September 30 compared to Rs.1,215.36 crore for same period last year. The decline in profit is attributed to higher tax provision and also the bank did not enjoy the benefit of interest on income-tax refund at Rs.712 crore, available last year. The deposits increased by 10.77% to Rs.3,92,615 crore and advances increased by 21.18% to Rs.2,88,840 crore. The capital adequacy ratio stood at 12.63%. The ratio of net NPA to total asset stood at 1.67%. Bank of Baroda

The net profit of Bank of Baroda increased 11.31% to RS.288.36 crore for the second quarter ended September 30 compared to Rs.259.07 crore for the same period last year. The Net NPA of the bank stood at 0.77% while gross NPA stood at 3.44%. Capital adequacy ratio of the bank stood at 12.93%. Total business has grown 32% (yoy), Advances has grown 45%(yoy).

Under international operations the bank is having 60 offices in 21 countries. The international operations account to 18% of total bank's business and 36% of bank's net profit. The internatioanl operations deposits has grown 60%, advances 51% year on year .

Karnataka Bank

The bank has recorded a net profit of Rs.59.61 crore for the second quarter of current financial year registering a growth of 42.57 % compared to profit of Rs.41.81 crore for same period last year. The net NPA of the bank stood at 1.48% compared to 1.73% last year. The capital adequacy ratio stood at 12.25%..

Indian Bank

The bank has reported a 60% rise in net profit at Rs.169.19 crore (Rs.105.57 crore) for the quarter ended September 30. The Total Business grew 21.06% to Rs.70,317 crore. Total Deposits grew 16.4% to Rs.44,124 crore (Rs.37,907 crore) and Advances grew 29.81 % to Rs.26,193 crore (Rs.20,177 crore). The net NPA have declined to 0.45%. The capital adequacy ratio stands at 12.02%.

The bank is planning to enter capital market and issue its shares to public at hefty premium during November this year.

YES Bank

This bank has reported 50.8 % growth in net profit for the second quarter ending September at Rs.21.49 Crore (Rs.14.25 crore). The capital adequacy ratio of the bank stood at 11.98%. The bank is having 0% NPAs.

Oriental Bank of Commerce

The bank has reported a net profit of Rs.310.75 crore for the quarter ended September 30, up 37.2% over the corresponding figure of Rs.226.51 crore for the previous fiscal.

After writing-off Rs.61.24 crore against liabilities on account of the amalgamation with Global Trust Bank, OBC's net profit for second quarter stood at Rs.249.51 crore , 51% more than Rs.165.27 crore for same period last year. The increased overall profit has come mainly from good cash recovery in NPA assets. The gross NPA has been reduced from 7.9% to 4.8% at Rs.1,848.62 crore. The net NPA has been reduced from 0.8% to 0.5% at Rs.171.01 crore. The capital adequacy ratio stood at 13.34%. The total business of the bank grew 24% to Rs.98,432 crore.

Indian Overseas Bank

The bank reported a net profit of Rs.249.98 crore for the quarter ended September 30, up 25% compared to Rs.198.49 crore for same quarter previous fiscal. Total deposits increased by 20.31% to Rs.57,018 crore and advances increased by 40.28% to Rs.41,141 crore. The low cost deposits (current and savings bank) accounts for 37.66 % of total deposits. While the gross NPA stood at 2.96%, net NPAs stood at 0.57%. Capital adequacy ratio stood at 14.66 %.

Syndicate Bank

The bank reported a net profit of Rs.205 crore for the quarter ended September 2006, up 17% compared to Rs.175 crore for same period last fiscal. Total deposits grew by 51% to Rs.71,065 crore (Rs.47,144 crore). Total advances grew by 48% to Rs.46,168 crore (Rs.31,149 crore). While gross NPA stood at 3.67%, net NPA stood at 0.89%. The capital adequacy ratio stood at 11.74%.

Punjab National Bank

The bank's net profit has risen 19.7% to Rs.505 crore for the quarter ended September 2006, as against Rs.422 crore for the corresponding quarter of last fiscal. The total business of the bank stood at Rs.2,10,755 crore. The deposits grew 17.4% to Rs.1,28,415 crore and advances grew 28.9% to Rs.82,340 crores. The low cost deposits (Current and savings bank) accounts for 48.7% of total deposits. The net NPAs stood at 0.18%.

Class Room

Compensation for delayed payment to VRS optees In an interesting judgement in the legal history, District Consumer Forum, Chennai North, has directed Indian Bank to pay a compensation of Rs.15,000/- each to 144 VRS optees for the delayed payment of pension commutation. The forum has passed the order armed with a directive from a division bench of Madras High Court to adjudicate the issue based on merits and on the points raised before the forum including the question relating to jurisdiction. The ex-employees of the bank opted for the VRS 2000 scheme and retired from service and were relieved on different dates. Their main complaint was that after lapse of few months, the commutation of pension amount was given to them, for which the bank had not paid any interest. The disbursement of reduced pension after few months had caused mental agony and sufferings. Initially, when they moved the forum, it was resisted by the bank arguing it had no jurisdiction since it was a dispute between an employer and employee. The forum also closed the complaints after a single judge of Madras High Court held that it has issued notice without jurisdiction. Later, a division bench of the High Court directed the forum to decide all cases on merit. By complying with the direction and taking into consideratin all factors, the forum came to the justifiable conclusion that it got jurisdiction to adjudicate the dispute. After hearing the points advanced by the parties, it held that the complainants are consumers as contemplated in the consumer protection act 1986 and the dispute raised by them falls under the definition of "consuemer dispute". The Economic Times (26.10.2006)

Classroom

Payment by cards ? Exercise Caution !!!!!!!!!!!!!!! There are many technologically innovative products, services and delivery channels being launched and widely made use of in the banking domain. One of these options being marketed extensively is the various multi-utility branded cards which includes the credit and the debit cards. These co-branded cards apart from being used in the ATMs are also used at POS terminals (point of sale). The next time you decide to use your credit card on a shopping trip, think again. There was a news item that appeared in the Times News Network recently titled " 4 held for siphoning off plastic cash". The Mumbai police have busted a hi-tech credit card fraud which could be the crime of the future. Four gadget savvy youngsters, two of them software engineers, got together to earn some quick bucks and ended up siphoning over Rs.3 lakh. According to the police, the mastermind of the gang was a 19 year old who realised that if credit cards were swiped though a portable magnetic card reader, the personal data of the customer stored on it could be accessed. He then teamed with another 19 year old, and ordered the card reader from USA, through the internet, since the same was not available in India. These boys befriended a waiter at a hotel to take their plan ahead, Every time someone paid by credit card for food in that hotel, the waiter would discreetly swipe it through the magnetic card reader, which is no more than 6-inches long and can be stored in the pocket. Once the job is done, the waiter would hand over the device to the fellow fraudsters who would download the data from the cards onto a personal computer. The duo would then feed the data into blank cards, available in the grey market making them ready for use in shopping malls or to withdraw money from ATMs. Portable magnetic card reader can store data from about a dozen cards which are swiped through it. What care do the ordinary card users need to take in this regard? The best thing that could be done is to ensure that the cards are swiped in the cardholder's presence. This can be ensured in most of the POS payments like shopping malls, automobile fuel stations etc. However, it could be difficult in the payment of hotel food bills where the practice generally followed is that the cards are handed over for swiping to the waiters along with the bills and received back along with the payment slip for signature. Probably the best thing to do in this case is to exercise prudence and hand over the cards for payment only at the cash counter/card swiping activity is visible. Yet another check would be that since most of the credit card liabilities statements are availabel online in the repective websites, periodic checks on the transactions posted would give an assurance that no unauthorized transactions are raised in the accounts. Needless to mention, the purpose of this article is not to instill any undue fear in the usage of the cards but to convey to you to exercise caution and prudence while transacting with cards.

News

IndusInd Bank launches "Indus Gold Debit Card" IndusInd Bank has launched "Indus GOLD Debit card " in association with VISA at an annual fee of Rs.350 plus service tax. The card has a daily withdrawal limit upto Rs.50,000 from the ATMs, said a press release from the bank. It has a daily POS (point of sale) limit of Rs.1 lakh, personal accident insurance of Rs.1 lakh and lost card liability up to Rs.1 lakh. The customers will receive free transactions on any VISA ATMs in India and mobile alerts on every transaction.

Result Update

Bank of India The bank has reported 61% jump in its net profit to Rs.212.13 crore for the quarter ended September 2006 as against Rs.132.18 crore for same period last fiscal. The net NPA is brought down to 1.07% from 2.25%. The total deposits moved up 20% to Rs.1,03,293 crore from Rs.85,856 crore. Advances grew 24% to Rs.75,097 crore from Rs.60,614 crore. The low cost deposits (Current and Savings) constitute 40.4% of aggregate deposits. The capital adequacy ratio stands at 11.85%.

Bank Stock News

Development Credit Bank (DCB) lists with bang The bank which came out with IPO recently got listed on Friday. Although most brokerage houses and papers gave "avoid" rating to IPO, it listed with a bang. The stock, which was issued at a price of Rs.26, quickly climbed up after the opening bell to an intraday high of Rs.48.7 and eventually closed the day at Rs.47.5, a gain of 82.5%. The stock raked up a first day trading turnover of Rs.368 crore and a total of 8.19 crore shares changed hands.

Result Update

Andhra Bank The bank has reported a net profit of Rs.146.44 crore for the quarter ended September 2006, a growth of 10.19% compared to Rs.132.89 crore for same period last year. The gross NPA is reduced to 1.76% from 2.27%. The Net NPA is reduced to 0.10% from 0.26%. The total Business stood a Rs.56,113 crore registering a growth of 14.47% from Rs.49,021 crore in the corresponding quarter of previous fiscal. The advances improved by 23.22% to Rs.23,600 crore while deposits improved by 8.85% to Rs.32,513 crore. Explaining the slowdown in deposits growth, the bank said it has discouraged bulk deposits and focussed more on retail deposits to reduce cost of deposits and improve net interest margin. Corporation Bank The bank reported a net profit of Rs.127.01 crore for the second quarter of this fiscal reporting a growth of 20% compared to Rs.105.6 crore over same quarter of last fiscal. While the gross NPA stood at 2.16% the net NPA stood at 0.48% at the quarter end. The capital adequacy ratio stood at 13.32%. The total business rose to Rs.66,022 crore registering a growth of 32% compared to same quarter last fiscal. While deposits increased 27.74% to Rs.38,017 crore advances increased 38.46% to Rs.28,004 crore. The share of low cost deposits (Current and Savings Bank) account for 32% of total deposits.

Result Update

Federal Bank The net profit of Federal Bank has grown by 28 % to Rs.69.46 crore for the second quarter of current year as against Rs.54.16 crore for same period last year. While gross NPA is down to 4.13% as against 5.97%, Net NPA is down to 0.67% as against 1.60%. The capital adequacy ratio stands at 12.80%. The total business grew by 21.71% to Rs.31,002 crore. Deposits grew 14.5% to Rs.18,288 crore and advances grew to Rs.12,714 crore. The above results does not include the results of Ganesh Bank of kurundwad which Federal Bank took over recently. ICICI Bank The bank has reported a 30% rise in net profit at Rs.755.01 crore in second quarter against Rs.580.05 crore in the same period last year. The advances stood at Rs.1,55,403 crore at September 2006 as against Rs.1,07,070 as at September 2005. The deposits stood at Rs.1,89,499 crore at September 2006 as against Rs.1,20,452 as at September 2005. In the second quarter, the bank raised hybrid Tier I capital worth $340 million from international markets and Rs.800 crore from the domestic markets. It also picked up Rs.1,200 crore through issue of upper Tier II bonds in the local market. The average interest cost of the domestic Tier I capital is about 10% and that of upper Tier II capital is 9.25%. The Capital Adequacy ration of the bank is 14.34%.

News

UCO Bank to sell Reliance General Insurance Products Reliance General Insurance Company Ltd, a part of the Anil Dhirubhai Ambani Group, has entered into a tie-up with UCO Bank for selling personal accident insurance products through the bank's network across the country. Under the arrangement, UCO bank depositors would be covered under the personal accident insurance scheme at a one-shot premium of Rs.6.99 for rupees one lakh. The sum assured may go in multiple of rupees one lakh upto a maximum of rupees five lakh. Stan Chart 2-in-1 account The bank has relaunched its 2-in-1 accounts by offering an 8% per annum interest for 188 days, the best rate in the market in that tenure. This account comes with four free-cash withdrawal transactions at any visa ATM across India. The minimum value for the term deposit is Rs.1 lakh and an initial cheque of Rs.10,000 is required to fund the linked savings account. this special offer is open to customers only during the campaign period (September 18 to December 31) Indian Bank As part of bank's ongoing Centenary year celebrations, it has introduced Premium Current Account and the SB Platinum Account with Sweep facility. This revolutionary offer ensures that surplus amounts in your above account get invested in short term deposits, fixed deposits or reinvestment schemes to earn interest like any other term deposit. ¯ Auto sweep at Daily intervals;¯ In multiples of customers’ choice;¯ Choice of tenure upto One year Sweep facility is available in all the CBS branches across the country. Along with the Sweep facility, the customer will also get a host of free add-ons as under PREMIUM CURRENT ACCOUNT FREE ** ð Internet, Mobile & Phone Banking ð ATM-cum-Global Debit Card as eligible ð DDs/BPOs AT PAR upto Rs.3 lakhs ð Stop payment & attestations carriedout ð IndBank Bill Pay (Utility Bill payment)* SB PLATINUM FREE ** ð Life Insurance cover for Rs.1 lakh from LIC ð Personal Accident Insurance cover - Rs.1 lakh ð Internet, Mobile & Phone Banking ð ATM-cum-Global Debit Card ð DDs/BPOs AT PAR upto Rs.25000/- ð IndBank Bill Pay (Utility Bill payment)* ð Personalised Cheque Book * in select cities ** conditions apply. for further details you can contact nearby branch of the bank.

Please Note:

From today the posts will be segregated in to 6 broad categories:

News

Important Events

Bank Stock News

Result Update

Class Room

Recruitment

Result Update

State Bank of Hyderabad

The bank has reported a net profit of Rs.128.76 crore during the second quarter of current fiscal ended September as against Rs.71.14 crore in the corresponding quarter of previous fiscal, a growth of 81.02 %. While the gross NPAs were brought down to 1.77%, net NPAs were reduced to 0.23%. The total business registered a growth of 25.02% and stood at Rs.63,850 crore. The deposits stood at Rs.39,789 crore while advances stood at Rs.24,063 crore.

News

Punjab National Bank - Medical cover for depositors The bank plans to offer a medical insurance cover from November to depositors for a lower price than market rate and has tied-up with private insurer, Reliance General Insurance, for the purpose. The facility will be optional for all kind of depositors and be issued by the bank to its 35 million depositors . The depositors can also go for medical insurance cover for their family members. RBI keen on Mobile Banking The Reserve Bank of India is testing the applicability of providing mobile banking facility to the customers of the banks. The experiments are currently on at the Institute for Development and Research in Banking Technology (IDRBT) on using mobile telephony technology for banking transaction. State Bank of Patiala starts Depository sevices The bank has started offering Depository services at select branches of the bank, which will enable its customers to open Demat accounts for keeping their shares in electronic forms. Bank Strike on 27 th October 2006 United Forum of Bank Unions has called for all India bank strike on October 27 to protest a whole range of issues including proposed mergers in the public sector banks, outsourcing of retail banking activities and attempts to privatise banks. They have also demanded the filling up of vacancies of about one lakh in PSBs as well as restoration of compassionate appointment. According to Mr.C.H.Venkatachalam, convenor, UFBU, the Chief Labour Commissioner (Central) held a conciliation meeting on October 18 at New Delhi between the unions and the Indian Banks Association. but the conciliation meeting failed to produce any results. He termed as retrograde the government move to merge 27 banks into four or five big banks. Mr.Venkatachalam said the capital of all the PSBs put together was only $3 billion or about 14,000 crore, whereas the capital of Citibank alone was $63 billion or about 3,00,000 crore. He said even merging all PSBs would not make them global in size. the total assets of all 27 PSBs in India are less than $300 billion, which are dwarfed in comparison to some of the big global banks. Asset Portfolio (in $ billion) Mizuho financial Group--------------------------1,285 Citibank-----------------------------------------1,264 UBS---------------------------------------------1,121 Credit Agricole Groups--------------------------1,105 HSBC--------------------------------------------1,034 Deutsche Bank-----------------------------------1,015 BNP Paribas--------------------------------------- 989 Mitubishi Tokyo------------------------------------975 Sumitomo Mitsui-----------------------------------950 Royal Bank of Scotland------------------------------806 State Bank of India-----------------------------------91 Punjab National Bank---------------------------------23 Canara Bank------------------------------------------22 Bank of Baroda----------------------------------------19 Bank of India------------------------------------------19 Central Bank of India----------------------------------14 Union Bank of India-----------------------------------13 Indian Overseas Bank---------------------------------11 Syndicate Bank---------------------------------------10

Happy Diwali

Wishing you and your family a very happy and prosparous Diwali

Result Update : United Bank of India

The Bank has recorded a net profit of Rs.162.08 crore for the first half of the current fiscal as against Rs.103.8 crore for same period last year. The deposits have grown by 16% from about Rs.26,000 crore to Rs.30,220 crore. Total advances increased from Rs.13,474 crore to Rs.18,622 crore. While the gross NPA stood at 4.37%, the net NPA stood at 2.44%. Result Update : Dena Bank The bank has recorded 41.34% raise in its net profit to Rs.68.75 crore for the quarter ended September 2006 as against Rs.48.64 crore over same quarter last year. The bank has made a major turnaround with the half year net profit being RS.87.24 crore as against a net loss of Rs.140.66 crore for the same period last year. Currently Net NPA stand at 2.89%. Result Update : State Bank of Bikaner and Jaipur The bank has reported a net profit of Rs.66.90 crore for the quarter ended September 2006 as against Rs.37.47 crore reported for same period last year. the capital adequacy ratio stood at 11.77%. While the gross NPA is at 2.35% the Net NPA stood at 1.12%. Result Update : Canara Bank Canara Bank has reported a net profit of Rs.361.77 crore for the second quarter of the current financial year 2006-07, up 18.41% from Rs.305.51 crore posted during the corresponding quarter of the previous fiscal. The total deposits stood at Rs.1,22,121 crore as at the end of the quarter. Centurion, LKB merger challenged A shareholder of Lord Krishna Bank of Wednesday approached the Kerala High Court challenging the decision taken at the AGM of the bank to merge it with Centurion Bank of Punjab. The petition was filed by Mr. Umesha Kumar Pai fo Ernakulam, who holds 200 equity shares of the bank. The petitioner sought a dircetion to the Central Government to appoint inspectors to investigate the affairs of the bank after making a declaration under Section 237 of the Companies Act that the affairs ot the bank should be investigated. He said that the most of the shareholders were prevented from participating in the AGM held on September 30. The meeting has hastily transacted all the eight items on the agenda, including the merger resolution, violating all the company laws. According to the petitioner, no discussion was allowed on the merger proposal and no independent Chairman was appointed as per the norms in the case of an amalgamation scheme approved by the High Court. (Business Line 20-10-2006) Cancellation of Banking licence: The Reserve Bank of India cancelled the licence of the Bharat Mercantile Co-operative Urban Bank, Hyderabad on October 17, as all efforts to revive the bank had failed. The RBI also requested the Registrar of Co-operative Societies, Andhra Pradesh, to issue an order for winding up of the bank and appoint a liquidator for the bank. The bank is now prohibited from carrying on business. Result Update : Kotak Mahindra Bank Ltd. The bank has reported net profit of Rs.34.8 crore for the quarter ended September 30, 2006 a growth of 12 % as on same quarter of previous year. The Advances of the bank grew 79% to Rs.8,386 crore. The Deposits were up 49% at Rs.8,194 crore. The Current and Savings accounts (CASA) deposits comprised 21 percent of total deposits. Result Update : IDBI Bank Ltd. The bank has shown marginal increase in net profit to Rs.139.40 crore for second quarter compared to Rs.131.84 crore reported for same quarter previous year. The Capital Adequacy Ratio has decreased to 14.66% from 16.3%. Although there is lagre decrease in Amount of Gross NPA from 2228 crore to 1332 crore, the Net NPA increased from 614 crore to 735 crore. The United Western Bank Limited has been amalgamated with the Bank wef October 3, 2006 as per the amalgamation scheme notified by Government of India. The above results do not include the results of United Western Bank Ltd. Result Update : Bank of Maharashtra The bank has shown 396% increase in Net Profit for the quarter ended September 30, 2006 at Rs.61.29 crore compared to Rs.12.35 crore for the same quarter of previous year. The Total Business stood at Rs.48,692 crore showing an increase of 19.76 %. The Deposits stood at Rs.29,493 crore showing a growth of 10.76%. The Advances stood at Rs.19,199 crore showing a growth of 36.82%. The Net NPA was reduced to 1.66% against 2.76%. The Capital Adequacy Ratio stood at 11.16%. Result Update : Union Bank of India Union Bank of India's net profit surged 218 % to Rs.194.16 crore during the second quarter ended September 30, form Rs.61.10 crore in the corresponding previous period. While Deposits grew 14.36 % for the quarter under review, advances went up 29.36%. The Capital Adequacy ratio stood at 10.79% and Net NPA was at 1.24%. Result Update : State Bank of Mysore The net profit of the bank surged to Rs.59.40 crore for the quarter ended September 30, as against Rs.51.52 crore at the end of corresponding period of previous year. Net NPA was brought down from 1.03% to 0.38%. The Capital Adequacy ratio stood at 11.13%. Result Update : Lakshmi Vilas Bank Ltd. The bank has reported 90% jump in its net profit for the quarter ended September 2006 at Rs.3.83 crore as against Rs.2.01 crore for the same period previous year. Deposits grew to Rs.4,844 crore from Rs.3,646 crore and Advances grew to Rs.3,463 crore from Rs.2,325 crore. The Capital Adequacy ratio stood at 10.15%. Canara Bank Cashback scheme Canara Bank has launched a cashback scheme for the festival season for its 2.5 million ATM-cum-debit card customers. The scheme, operational all over the country, will remain open during the period between October 15 and November 13. It offers cashback upto three percent of purchases up to a maximum of Rs.1,000. Result Update : ING Vysya Bank Ltd. The bank has reported a 110% increase in its net profit at Rs.41.39 crore for the second quarter of the current year 2006-07. However, during the period the bank also earned Rs.26.40 crore through divestment of its stake in the Bharat Overseas Bank in favour of Indian Overseas Bank. If this profit is netted off, the bank's net profit drops to Rs.15 crore for the second quarter. The Current account and Savings account (CASA) deposits in the bank's total deposits stood at 31% (Rs.3,936 crore) as at September 2006. Net NPA is reduced from 1.98% to 1.57%. Result Update: Vijaya Bank Vijaya Bank has reported a 36% increase in its net profit at Rs.102.33 crore for the second quarter of the current financial year 2006-07 and has declared 10% interim dividend. The Deposits of the bank stood at Rs.25,938 crore registering a growth of 23.2% over corresponding period last year. Result Update : The Bank of Rajasthan Ltd. The bank has shown a net profit of Rs.55.24 crore for the quarter ended September 2006 as against Rs.5.24 crore over same period last year. The bank has shown 60.57 crore as other income which includes RS.36.54 crore being profit on sale of equity shares considered as long term capital asset. The total business stood at Rs.12,924 crore. The Capital adequacy ratio stood at 13.52%. The Net NPA stood at 0.76%.

Stock Recommendation: UTI Bank

Dalal Street Journal ( Diwali Buys) 16-29 Oct-2006

Here's a bank with increasing net interest margin (NIM), improving asset quality, well cushioned investment portfolio, consistant dividend payment history and better than industry average growth. UTI Bank is one such scrip which meets all the above parameters and becomes one of the scrips for our Muhurat buys. The growth of UTI Bank's business continues unabated. The current account and savings accout (CASA) ratio of the bank stands at 40 percent of the total deposits, NIM has improved consistently in each of the quarters in FY06 and even the fee-based income continues to be strong. The asset quality in on an uptrend due to the lower incremental defaults and the bottomline growth has been strong. At the CMP of Rs.410, UTI Bank is trading at P/E of 17.88x of FY07E earnings as compared to 20.32x of ICICI Bank, 23.98x of Kotak Mahindra Bank and 26.70x of HDFC Bank, which makes the scrip more attractive. We also think the UTI Bank could become a prime acquisition target for the foreign banks and expect the counter to trade at a higher premium going forward.

The major growth is expected from the increased branch network. UTI Bank has a pan-India presence with 367 branches, 95 extension counters and 2,000 ATM ( which is the third largest ATM network among banks in India). The bank is planning to roll out 100 more branches in FY07 and most of these branches will be set up un rural areas, which will result in higher retail banking business and increased share of the low-cost CASA deposits. The bank expects the share of these low cost deposits to increase to 42 percent in FY07E.

For Q1FY07, the deposits stood at Rs.42,094 crore while advances stood at Rs.25,836 crores. The important fact is that the retail advances constituted 30 percent of the total advances. We expect the share of retail loans to touch 32 percent by the end of FY07. Clearly indicating that the bank is focussing more on high-yielding retail assets. The net interest margin of the bank has shown consistent improvement in the past and stands at 2.68 percent. With improvement in yield on advances and increasing CASA deposits, the NIM of the bank is expected to improve to 2.90 percent at the end of FY07. The fee-based income of the bank is also expected to increase with opening of new branches and tie-ups with the MFs. This income will give the much needed stability to the bank"s overall profitability by reducing its dependence on the highly volatile treasury income. The asset quality of the bank has improved consistently and the net NPAs stand at 0.73 percent . According to the management, the net NPA level is expected around 0.60 percent at the end of FY07. Hence, with all these positive factors, we recommend the investors to buy the scrip with a minimum on one years perspective.

Punjab National Bank's Doorstep banking:

The Bank has launched doorstep banking through vans in North Delhi. The areas covered under the facility are Azadpur, Gujranwala Town and Model Town. The van will be stationed at three venues in two shifts - morning and afternoon, for duration of 20 to 40 minutes at each venue. Customers can make select transactions and requests for banking activities. Initially, only cash less service will be offered through the doorstep banking van.

Result Update : Punjab & Sind Bank

Net profit of bank rose 102% to Rs.72.93 crore for the second quarter ended September 30, 2006 against Rs.36.08 crore over the same period last year. The deposits grew by 35.44% to Rs.19,372 crore and advances grew by 55.28% to Rs.7,255 crore from Sept. 05 to Sept. 06. The net NPA stood at 1.81 % at Sept. 06.

Result Update : Centurion Bank of Punjab Ltd.

Net profit of CBoP rose 49% to Rs.31.13 crore for the second quarter ended September 30, 2006 against Rs.20.9 crore over the same period last year. The bank's net NPA stood at 1.3%. The deposits stood at Rs.11,383 crore against Rs.8,071 crore and advances stood at Rs.8,385 crore against Rs.5,113 crore.

Result Update : South Indian Bank Ltd.

Net profit of SIB for the quarter ended September 30, 2006 has grown by 383% to Rs.41.65 crore compared to Rs.8.63 crore over the same period last year. The gross NPA has come down to 5% and net NPA has come down to 1.69%. The Capital Adequacy Ratio has gone up to 11.50%. The total business grew 28 % to Rs.18,224 crore.

Result Update : HDFC Bank

Net profit of HDFC Bank rose 31.7 % to Rs.262.94 crore for the second quarter ended September 30,2006 against Rs.199.64 crore over the same period last year. Total deposits stood at Rs.63,447 crore (39.6% growth) and Total advances stood at Rs.49,326 crore (34.2% growth) for Q2. The Net Interest Margin was maintained at 4% which is highest in the industry. The Capital Adequacy Ratio was at 12.1%. The share of low cost deposit stood at 52% of total deposit base

Union Bank of India to sell gold coins:

Joining the bandwagon of banks selling gold coins and bars, Union Bank of India has also launched sale of gold coins of 5gm, 8gm and 10gm weight having 99.99 purity at select branches all over India.

Bank of Rajasthan hikes deposit rates:

With effect from October 6, 2006 the bank has hiked the rate of interest on deposits for the following periods; Deposit for 61 to 90 days - 5.75% , Deposit for 1 year to less than 2 years -8.25%, Deposit for 5 years and above - 8.50%, Interest on its tax savings deposits will be 8.50%.

Nobel Peace Prize for Bangla Banker

The Nobel Peace Prize was awarded on Friday to Muhammad Yunus of Bangladesh and the Grameen Bank that offers loans to poor people without any financial security. "Lasting peace cannot be achieved unless large population groups find ways in which to break out of poverty. Micro-credit is one such means" said Ole Danbolt Mjoes, the chairman of the Norwegian Nobel Committee. Yunus, dubbed "Banker to the Poor," began fighting poverty during a 1974 famine in Bangladesh with a loan of $27 to some villagers to save them from the clutches of the moneylenders. The economist professor is now seen as one of the main developers of the concept of "micro-credit", which gives entrepreneurs who are too poor to qualify for traditional bank loans. very small sums to start up their own enterprise. Borrowers used the loans to buy their own tools and equipment, cutting out the middlemen and transforming their lives through self-employment. The Grameen Bank has 6.5 million borrowers of which 96% are women.

Result Update : Jammu & Kashmir Bank

Jammu & Kashmir Bank has reported a 53% growth in its net profit for the quarter ended 30th September 2006 on the back of 51% rise in its fee based income. The net profit for reporting quarter stood at 84.02 Crore up from 54.90 crore. Net interest income grew 18% from 163.5 crore to 193.3 crore. Deposit grew 4% to Rs.20,392 crore and Advances grew 18% to Rs.14,020 crore.

Result Update : UTI Bank

UTI Bank has reported a 30% growth in net profit to Rs.141.98 crore for the second quarter ended 30th September 2006. Treasury income has fallen by 66% to 23.33 crore. The corporate advances has grown by 55% to Rs.20,607 crore and retail loan has grown by 66% to Rs.8,514 crore. Q2 performance Net Profit Total Income Deposits Advances Net NPA 2005 109.01 865.73 34,055 18,404 1.03% 2006 141.98 1254.86 48,986 29,121 0.74%

Mandvi Co-op bank to merge with Saraswat Bank

Mandvi Co-operative Bank Ltd. with a large Gujarathi clientele, is to merge with India"s largest co-operative bank, Saraswat Co-operative Bank Ltd. Following the merger Saraswat Co-op bank will have total business of around Rs.12,567 crore, branch network of 105. It is to be noted that Mandvi Co-operative bank is also making profits.

BoM to raise Rs 300 cr through bonds

Public sector lender Bank of Maharashtra will raise up to Rs 300 crore through a bonds issue during October 12-13 to meet the capital adequacy requirement. The Upper Tier II bonds with a maturity period of 15 years will be issued at a coupon rate of 9.10 per cent per annum, the bank informed Bombay Stock Exchange. The bank will pay 9.6 per cent interest per annum from 10th year onward if the call option is not exercised

PNB biz hits Rs 2,13,000 cr

The country's second largest public sector lender Punjab National Bank has achieved a business of Rs 2,13,000 in the first half of this fiscal. "The total business (deposits and advances) is around Rs 2,13,000 crore and we expect to surpass the goal of deposits and advances set for the year end-March 2007," a senior PNB official said. Deposits of the bank stood at Rs 1,29,000 crore while advances were at Rs 84,000 crore till September this year. The bank had set a business target of Rs 2,25,000 crore for 2006-07.

Union Bank to raise Rs 1,400 cr in 5 mths

Union Bank of India plans to mobilise Rs 1,400 crore capital funds through issuance of bonds over the next five months. This week, the mid-sized public sector bank also raised Rs 300 crore of perpetual debt. The bank raised the Rs 300 crore through its maiden perpetual debt issue at a coupon rate of 9.45 per cent for the first 10 years and 9.95 per cent for all subsequent years. Union Bank has drawn up a massive capital-raising plan to maintain its capital adequacy ratio (CAR) substantially above the mandatory 9 per cent even after implementing the Basel-II capital adequacy norms. The bank requires capital funds not only to support credit growth but also to provide nearly Rs 500 crore for operational risks under the new capital adequacy norms

HSBC money transfer scheme

Global bank HSBC has launched a new money transfer service for Indians living in the Gulf in a bid to boost its share of the multi-billion dollar India remittance pie. The 'One World' money transfer scheme will allow Indians to open bank accounts in the UAE even before they arrive here, to transfer their credit history from India as well as help with their credit card and mortgages, Mr Manasije Mishra, head of NRI services for HSBC India said on Tuesday. Indians living in the UAE can also transfer money to their HSBC accounts in India free of charge using cheques or the Internet.

Yogesh Agarwal, new SBI MD

The State Bank of India has a new Managing Director in Mr Yogesh Agarwal. He has been appointed as Managing Director of the board of State Bank of India with effect from October 10. Prior to this appointment, Mr Agarwal was the Managing Director of the State Bank of Patiala.

SBI commercial branch in Bahrain soon

The State Bank of India is set for a major expansion in Bahrain with the opening of its first commercial branch in the country next month. The bank had set up its first office in Bahrain 30 years ago and earlier upgraded its status to the headquarters of its West Asia and North Africa operations

CIBIL plans products to spot good customers

Mr S. Santhanakrishnan, Chairman, Credit Information Bureau of India Ltd (CIBIL) said, till now the focus with regard to using the CIBIL database had been more on spotting the defaulters and avoiding the possibility of refunding such delinquents. CIBIL is coming out with a couple of new products that will enable banks to spot their good customers and reward them. Another product, 'Macro analysis of the bureau data', sliced product-wise, geography-wise, is to be launched in December. With this, banks can thus compare their own profile vis-à-vis the industry profile as thrown up by the bureau data and take suitable corrective measures to shore up the risk profile of their books. CIBIL would also be launching "Bureau Credit Scores" for individual borrowers by February 2007. This is a product that is getting introduced in India for the first time.

PNB plans to tap HNIs, may offer portfolio services

For a country witnessing 19% growth in its number of high net worth individuals (HNIs), this sure is opportunity for banks like Punjab National Bank, which is planning a foray into offering portfolio management services (PMS). It is currently waiting for regulatory approvals. “We are looking to enter the portfolio management space. But as public sector banks, we are not allowed to offer advisory services. We are sorting some regulatory issues with the RBI,” a top official at the bank said. The RBI rules say a bank must firewall its PMS portfolio from its other business, to ensure that the bank’s exposure in capital markets does not affect its balance sheet. Also banks have to obtain a dual licence from RBI and Sebi, before they can offer discretionary PMS - i.e., manage the funds actively on behalf of their clients. At present, public sector banks are losing out to foreign and private banks in offering such services.

IBA concern over home loan frauds

The Indian Banks Association is concerned about the proliferating cases of housing loan frauds. It has undertaken a survey of member banks to collect data on housing loan frauds and evolve a concrete action plan to tackle the problem. IBA has asked member banks to provide information on frauds they have encountered by fabrication of income documents (such as IT return, salary slip etc), encashment of loan cheques by third parties, frauds caused by forged title documents (through use of colour photocopies and fake stamp paper), overvaluation of property to secure higher loan amounts and instances of multiple financing by different agencies. Housing loans grew from a level of Rs 16,000 crore in 2001 to a level of Rs 1,86,000 crore in 2006.

South Indian Bank plans to change logo

Within a week of notifying the stock exchange about its intention to look for takeover of a mid-sized or smaller bank, the Kerala-based South Indian Bank informed the exchange about its proposed decision to change the 'logo'. The bank's Chairman, Mr V.A.Joseph, told that the image makeover was intended to give it a 'national or global image'. The bank is also in the process of finalising its Brand Ambassador. The bank has also initiated steps to renovate the interiors of some of its age-old branches to give it a 'look-alike wherever you go' feel.

HDFC Bank in pact with India Post

HDFC Bank has tied with up with India Post, Karnataka Circle, to offer loans to investors in small savings schemes. The loans would be in the nature of overdraft facilities against National Savings Certificates and Kisan Vikas Patras, according to Mr Biju Pillai, Vice-President and Business Head, HDFC Bank. The loans would be extended up to 90 per cent of the value of the savings scheme certificates and interest would be charged on the amount drawn.

Bank strike on Oct 27

Bank unions across India have called a strike on October 27 to demand certain benefits and protest against bank mergers and outsourcing of banking activities, a union leader said. The demands related to pension benefits and appointment privileges, said Mr Prafulla Patnaik, Chief Convenor of the United Forum of Bank Unions.

Union Bank bonds sale

Union Bank of India has raised an additional capital of Rs 300 crore through an offering of Hybrid Tier I Capital. The issue opened on October 9 and closed the same day fully subscribed. The perpetual bond, having a call option to redeem after the tenth year, carries a coupon rate of 9.45 per cent payable annually, with a step-up option of 50 basis points at the end of the tenth year if the call option is not exercised.

SBI - Savings plus account

This is a varient of Auto sweep facility being provided by various private and public sector banks for long. Different banks call it by different names this bank calls it ' Savings plus account ' This is a savings bank account which automatically sweeps surplus funds from savings account and deploys it is Term Deposits. The Minimum balance to be maintained in Savings account is Rs.5000/- Auto sweep at weekly or monthly intervals. Minimum Auto sweep is Rs.10000/- and in multiples of Rs.1000/- thereafter. Choice of deposit tenure from 1 to 5 years. Free ATM cum Debit card. Free internet banking

Corporation Bank's Corp Classic Account

Compared with above Corporation Banks' Corp Classic account gives some more advantage; Minimum deposit in SB account is Rs.10000/- which is the disadvantage for Corp Bank. Auto sweep will be on daily basis. Minimum auto sweep is for Rs.5000/- and in multiples of Rs.1000/- thereafter. Choice of tenure will be 14 days to 10 years. these are the advantages. Normal features will be Free ATM cum debit card Free internet banking

NPAs Written off by PSU banks

• Bank 2003-04 2004-05

Bank of Baroda -------------------------836------------ 609

Punjab National Bank-------------------483------------ 704

Canara Bank ---------------------------452------------- 973

Bank of India -------------------------- 588------------- 329

UCO Bank------------------------------ 278------------- 334

Union Bank of India---------------------278------------- 308

Dena Bank----------------------------- 319-------------- 317

Allahabad Bank------------------------ 622-------------- 275

Indian Overseas Bank----------------- 469-------------- 244

Central Bank of India------------------ 569-------------- 583

Oriental Bank of Commerce------------- 85-------------- 117

Bank of Maharashtra------------------- 92---------------- 79

United Bank of India------------------ 250--------------- 111

Syndicate Bank -------------------------33-------------- 220

Indian Bank--------------------------- 416-------------- 482

Andhra Bank-------------------------- 184-------------- 170

Vijaya Bank --------------------------240 ---------------125

Corporation Bank----------------------49-----------------91

Punjab & Sind Bank------------------ -85-----------------37

(Rs. in Crore)

Bancon at Hyderabad:

Hyderabad will be hosting Bancon 2006, the two day Indian Banking Conclave, at the Hyderabad international convention centre here from November 3-4. Andhra Bank will be hosting the banker's conference this year with organisational support from the Indian Banks Association ( IBA ). The theme will be ' Inclusive Growth - A New Challenge '

SBI is Income Tax refund bank:

Income tax department has roped in State Bank of India for its ' refund bank ' project. This facility would allow a tax payer to get his returns directly from the bank. The refund banker would credit refund to assessees either in paper form or paperless form through electronic clearing system on an advice by the income tax department. The department will initially roll out the facility on a pilot basis from January 1, 2007 for three months.

Central Bank of India to raise Rs.700 crore tier-II capital

The bank is raising Rs.700 crore through issue of bonds that would qualify as tier-II capital. CRISIL has assigned the bond issue a rating of AA and said the bank's weak asset quality, modest capitalisation levels and average earnings profile temper these rating strengths. Banks NPA level is 6.85% as on March 31, 2006 Tier-I capital adequacy is 7.19% as on March 31, 2006

Central Bank of India to raise Rs.700 crore tier-II capital

The bank is raising Rs.700 crore through issue of bonds that would qualify as tier-II capital. CRISIL has assigned the bond issue a rating of AA and said the bank's weak asset quality, modest capitalisation levels and average earnings profile temper these rating strengths. Banks NPA level is 6.85% as on March 31, 2006 Tier-I capital adequacy is 7.19% as on March 31, 2006

BoE rates steady at 4.75%

The Bank of England kept interest rates steady at 4.75% for the second month running, but most economists predict a hike next month. " We expect a 25 basis points November rate hike, but then a period on hold as the problem in the US intensify and become more obvious. Untimately, this will lead to UK rate cuts from mid-2007" said Mr. Dominic Bryant, at BNP Paribas.

NABARD scheme for SHGs

The National Bank for Agricultural and Rural Development ( NABARD ) will launch a programme enabling Self-Help Groups ( SHG) to avail themselves of credit from post offices according to a press release from NABARD. Through an agreement between the bank and the Dept. of Posts, Tamil Nadu Circle, the SHGs will be able to invest their savings in the post office schemes and avail themselves of loans through the post offices, the release said. The pilot project will be launched on October 7 in Kancheepuram and Pudukotti districts, Tamil Nadu, and will be extended to Sivaganga shortly. NABARD has earmarked Rs.34 lakhs for lending to the post offices to support the scheme.

Corporation Bank gets HC nod for merger

Corporation Bank has received approval from the Karnataka High Court for the merger of CorpBank Homes Ltd with itself. In a filing on the Bombay Stock Exchange, Mangalore based Corporation Bank said the scheme of amalgamation of Corpbank Homes with the bank had been approved by High Court vide its order dated August 11, 2006. The order had been filed with the registrar of companies at Bangalore on October 4 and the amalgamation is also effected from the same date

Passbook facility must for SB account-holders

The Reserve Bank of India has mandated all banks to offer savings bank account holders the option of the passbook facility. The cost of the facility will have to be borne by the bank. If a customer chooses to get the statement of account then banks must issue monthly statements and not quarterly statements. Currently many private banks are not offering Pass book facility and additionally customers have to pay a fee to get their statements.

SBH raises Tier-II capital

State Bank of Hyderabad has issued bonds of Rs.550 crore with a green shoe option of Rs.50 crore through private placement. The tenure of the redeemable, unsecured , non-convertible subordinated bonds without any call option is for 115 months and carry a coupon rate of 8.8% per anum. Following this the CAR of the bank will be above 11 per cent.

Morgan Stanley buys a bank in China

US investment bank Morgan Stanley said it had gained access to the key Chinese market by buying a small local lender. The acquisition of Nan Tung Bank, based in the south Chinese city of Zhuhai, seemed to open the door to the potentially lucrative business of providing products denominated in the local yuan currency to corporate customers. Foreign banks would normally have to operate for at least five years in China.

How valuable are our banks ?

The Industrial and Commercial Bank of China (ICBC), China's largest lender is coming out with IPO. After the IPO, its valuation will roughly be about $87 billion. This is almost one and half times of the collective market capitalisation of all the listed Indian banks. The market cap of 37 listed Indian banks is roughly $62.76 billion. But ICBC is still for behind Citigroup which has market cap of $140 billion.

UTI Bank hybrid issue mops up Rs.214 crore

UTI Bank has raised Rs.214 crore through a hybrid Tier-I issuance in the domestic market. It has offered a coupon of 10.05% on its Tier-I bond issue, with a size of Rs.214 crore. So far, UTI Bank has raised $150m through upper Tier-II issuances in the over- seas market. In the next couple of months, it may look at raising another Rs.200 crore through the upper Tier-I route from overseas markets. Post issue, the capital adequacy ratio of the bank is likely to raise to over 11%.

UTI Bank hybrid issue mops up Rs.214 crore

UTI Bank has raised Rs.214 crore through a hybrid Tier-I issuance in the domestic market. It has offered a coupon of 10.05% on its Tier-I bond issue, with a size of Rs.214 crore. So far, UTI Bank has raised $150m through upper Tier-II issuances in the over- seas market. In the next couple of months, it may look at raising another Rs.200 crore through the upper Tier-I route from overseas markets. Post issue, the capital adequacy ratio of the bank is likely to raise to over 11%.

Jammu & Kashmir bank for FII stake hike

Jammu & Kashmir bank has applied to Reserve Bank of India to increase the limit of foreign institutional investors in the bank to 40% from 33%. This follows the board's approval to increase the FII limit in the bank.

Allahabad Bank raises Rs.561 crore

The Bank has raised Rs.561.90 crore through private placement of redeemable subordinated debt instrument or lower tier-II bonds to strengthen its capital base. While the face value of each bond was Rs.10 lakh, they had a coupon rate of 8.85 % per anum payable for a tenure of 120 months. The bank's capital adequacy ratio is already at 12.24%.

Happy Dussera for UWB customers

It was a Happy Dussera for United Western Bank customers as RBI approved the merger of UWB with IDBI Bank and lifted the moratorium wef 03.10.2006. The shareholders will also be happy because they get Rs.28 per share they own. But this merger raises many questions: 1. What is the rationale for setting price of Rs.28 per share, we have seen some merger cases where the shareholders were totally ignored, so what makes UWB special case where RBI fixed share price above privailing market price. 2. When many of better banks were eyeing for the merger what made RBI to select IDBI bank the suitable candidate? 3. When nationalised banks are serving better for the betterment of the country than the private banks and there were many nationalised banks also in the race, why RBI sold UWB to profit motived IDBI Bank?

Corporation Bank's home loan utsav

Corporation Bank will conduct "Home Loan Utsav" from October 3 to November 2. As part of this, the bank has slashed interest rate on home loans by 0.5% for tenure above 5 years upto and including 25 years. The offer is applicable for floating and fixed rate loans and available at all branches of the bank.

C.I.B.I.L

Credit Information Bureau of India Limited this compiles the database of all borrowers of all banks in the country. The banks can use this information while sactioning new loan by serching the Cibil database online for the credit history of the borrower.

Development Credit Bank - IPO

(Hindu Business Line 01.10.2006) Rating - Avoid Small Size Bank: DCB is a small bank with operations in Gujarat, Maharashtra and Andhra Pradesh. With a business volume of about Rs.5,500 core, it has a nework of about 70 branches. Capital constraints over the past few years have placed a check on its growth. Historically, the bank has had a high level of NPA (non-performing assets). Higher provisioning has resulted in the shortage of capital to fund its balance-sheet growth. Over the last two years, DCB recorded a negetive growth in its advances. From Rs.2,510 crore in 2004, advances fell to Rs.1,867 crore in 2006. As a result, the net interest income has been declining and the bank has been making losses since 2004. On the other hand, DCS's cost of funds, at about 5.5 percent has been on the high side owing to greater proportion of term deposits. This, perhaps, explains its low net interest margins at 0.2 percent. Revitalisation Plan: The public offer is part of the management's revitalisation plan to address issues of asset quality, and operating costs as also to foucs on core business. As on March 31, 2006, DCB had a net NPA level of 4.5 percent on its books. This is far higher than industry average of about one per cent. Bringing the NPA level to industry standards is likely to be an uphill task. DCB expects to expand its branch network grow to 100 by 2008 to garner low-cost deposits and step up its exposure to cosumer assets. Low-cost deposits make for 32 per cent of its total deposit mix. That the savings bank deposits have been growing at a CAGR of about 20 % over the last three years is an encouraging sign. Its loan book is also undergoing a change. Traditionally, DCB has been active in commercial and corporate lending. Exposure to this segment constituted 89 per cent of its outstanding loans in 2003. However, since than, this proportion has fallen gradually to 57 percent as on March 31, 2006. The bank has made up for the fall by increasing its exposure to the retail sector. From a low three per cent in 2003, the share of housing and retail loans has risen to 37 per cent in 2006. The last three years have seen the retail assets clock a CAGR of over 90 percent, It is unlikely that the bank will sustain this pace of growth. Further, for most new private sector banks, retail loans still account for 30-35 % of the total portfolio, though they have added assets at a scorching pace over the last few years. Given its already high pro- portion of retail loans, DCB is likely to see some stagnation in the segment. Liquidity and interest rate risk: The liquidity position of the bank also does not offer a great degree of comfort. Maturing liabilities of the Bank (short term) far exceed the assets. This means if the bank is not able to find new deposits or is unable to roll over existing deposits, the liquidity position may be affected. This has to be viewed particularly in the context of the bank's deposits falling 19 % in the last one year. The Bank has about 30 % of its investments under available for sale category. Although the larger view is that interest rates are likely to stabilise, any hardening in the cycle is likely to expose bond book to mark-to-market losses. Other Risks: According to the offer document, there is a contingent liability of Rs.1,953 crore towards forward exchange contracts. If this materialises, it is likely to have an adverse impact on its profitability. Though the management intends retaining the individual identity, the possibility of a merger with a larger bank cannot be ruled out in the long term. Although DCB has made a profit of Rs.4 crore in the June quarter, it remains to be seen whether this will be sustained. But for its branch network, which carries a scarcity premium, there may not be much value for the acquirer in the event of a merger\takeover. As such, the risk of an unremunerative deal for the shareholders also remains high. Richly Valued: DCB is offering 7.1 crore shares in the price band of Rs.22-26. At the upper end, the stock is valued at 1.4 times its book value. Although DCB is categorised as a new private sector bank, considering its size and business mix, we think it would be appropriate to compare it with old private sector bank. Karnataka Bank, City Union Bank and Federal Bank are quoting at a P/BV of about 1.3. DCB's valuation, thus appears steep, The risks are likely to outweigh the opportunities, thus limiting the upside. Offer Details: DCB proposes to mop up about Rs.157-186 crore through this issue and use the same to fund capital requirements. Post-issue, the promoters' stake would come down to 30% from 58% now. JM Morgan Stanley and Enam Financial Consultants are the lead managers to the issue, which opened on September 29 and closes on October 6.

SBI associates business

Bank, Deposits, Advances, Total Business SBH- 36,061 23,043 59,104 SBP- 32,718 23,951 56,669 SBT- 27,050 20,376 47,426 SBBJ- 22,735 17,107 39,842 SBM- 17,898 13,281 31,179 SBS- 14,375 9,090 23,465 (Rs.in crore by August-2006) (Business Line 30.09.2006)