Award for Corp Bank

Corporation Bank has been awarded the second runner-up in the IBA Banking Technology Award 2012-13 for the ‘best use of mobility technology in banking’ under the category of public sector banks. SR Bansal, Chairman and Managing Director, received the award from Raghunath A Mashelkar, Chairman, National Innovation Foundation, in Mumbai on January 27.

Indian Overseas Bank Q3

IOB has reported a 35% drop in net profit at 75 Cr for the quarter ended December 31, 2013, against 116 Cr posted for the comparable previous year quarter. M Narendra, CMD of the bank, attributed the fall in net profit to higher provisioning towards bad debts and restructured accounts. The bank reported a slippage of 1,615 Cr during the quarter. According to Narendra, the bank provided 690 Cr for bad debts this quarter against 486 Cr in the previous quarter, and hence the coverage ratio was close to 57%. Total income went up by 6% to 6,190 Cr (5,846 Cr). “The year so far has been very challenging. And we have been focussing on recovery, and have recovered 206 Cr during the period,” he said. The bank’s net interest margin went down to 2.26% for the period, from 2.39% in the previous year period. Gross non-performing assets rose to 9,168 Cr (5.27%) during the quarter from 6,515 Cr (4.13%) last year. Net NPAs increased to 5,481 Cr (3.24%) for the quarter under consideration from 3,595 Cr (2.33%).

ICICI Bank Q3 profit rises 13%

ICICI Bank posted a 13% increase in net profit at 2,532 Cr for the December quarter, on stable interest income and healthy loan growth in the retail segment. Chanda Kochhar, MD and CEO, said that but for the provisions of 215 Cr towards additional deferred tax, the profit would have grown 22%. Provisions towards bad loans during the quarter rose 88% to 695 Cr from 369 Cr a year ago. Net interest income was at 4,255 Cr, up 22%. Non-interest income was up 26% at 2,801 Cr. The bank made a treasury profit of 447 Cr during the quarter, compared to a loss of 72 Cr in the second quarter. Despite the hike in policy rate, ICICI Bank expects to sustain its net interest margin as the bank’s dependence on short-term funding is low. Overall, the loan portfolio increased 16%, driven by 22% growth in retail advances. Given the challenges in the economic climate, the bank moderated its corporate loan growth to 7% (year-on-year) in the December-quarter, against 11% in the preceding quarter. Total deposits witnessed 11% growth including one-time deposits inflow of $2 billion raised via the FCNR (B) route. NPAs in net terms, worsened to 3,118 Cr compared to 2,182 Cr at Dec 31, 2012.