Kotak Mahindra Bank Q3

Private sector lender Kotak Mahindra Bank disappointed street with its third quarter earnings  on every parameter with the asset quality weakening. Standalone (banking operations only) net profit fell 6 percent year-on-year to Rs 340 crore and net interest income grew nearly 11 percent to Rs 912.7 crore.  Asset quality Gross non-performing assets (NPAs) expanded 4 basis points sequentially (55 basis points year-on-year) to 2.01 percent while net NPAs jumped 14 bps quarter-on-quarter (46 bps Y-o-Y) to 1.1 percent in the quarter gone by. In absolute term, gross NPAs surged 7 percent quarter-on-quarter (45.4 percent year-on-year) to Rs 1,076.18 crore while net NPAs climbed 20 percent Q-o-Q (81 percent Y-o-Y) to Rs 584.52 crore during October-December quarter.

Vacancies at Reserve Bank of India

Reserve Bank of India has called applications for filling various vacancies:

Combined Advertisement for the posts of (i) Research Officers in Gr. ‘B’ for DEPR (ii) Research Officers in Gr. ‘B’ for DSIM (iii) Assistant Manager (Rajbhasha) in Gr. ‘A’ and (iv) Manager (Technical-Civil) in Gr. ‘B’

Last Date for applying is 17.02.2014

IDBI Bank joins the credit card bandwagon

 

 

Nearly nine years after becoming a full-fledged commercial bank, IDBI Bank has decided to issue credit cards to its customers. The Mumbai-headquartered bank intends to issue around five lakh cards in three years — one lakh in the first year and two lakh cards each in the following two years. The public sector bank, which currently has a base of more than 10 million customers, will be issuing EMV (Europay, MasterCard and Visa) chip cards with magnetic stripes. EMV is a global security standard for microprocessor chip card technology. This ensures that the credit card is not only accepted anywhere in the world but is also better protected against fraudulent activities. Since many merchant establishments in the country still have credit card payment infrastructure (terminals) that accept cards with magnetic stripe, the bank has decided to issue EMV cards with magnetic stripe. The category of credit cards that the bank plans to issue are: Platinum, Signature and Corporate. For foraying into the credit cards space, IDBI Bank is planning to engage the services of a third party service (TPS) provider for providing end-to-end solutions for credit card issuance under the outsourced model.

Bank accounts for all in two years — a pipe dream?

The recommendation of the Nachiket Mor committee to provide bank account to every Indian over 18 years of age by January 1, 2016, seems a little stretched. It hinges on banks opening accounts based on KYC authentication done by the UIDAI for providing the 12-digit Aadhaar number to resident Indians. Till date, the UIDAI has provided Aadhaar numbers to about 56 Cr Indians. It plans to provide Aadhaars to three Cr Indians every month and complete the coverage by December 2015. But the UIDAI has, by design or default, left out most people working as migrant labourers and domestic helps as they do not possess valid identification and address proof. So, before banks can ride on the UIDAI-enabled KYC verification, the Authority must seek out such people and issue them Aadhaar numbers. According to the Mor committee report, only 36% adult Indians — 45% in urban centres and 32% in rural areas — have bank accounts. It is, however, not clear how many of these accounts are unique, as banks still lack the unique customer identification code where dual accounts of the same person across banks can be identified.