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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