ReportWire

Tag: Bank of India

  • Bank of India, Central Bank and Uco Bank post Q2 profit gains despite margin pressure

    [ad_1]

    Mumbai: Public sector lenders Uco Bank, Central Bank of India and Bank of India recorded gains on account of higher interest income and lower provisions in the September quarter. Over the year, net profit after tax increased by 2.8% to ₹620 crore for Uco bank, 7.6% to ₹2,555 crore for Bank of India and 32.8% to ₹1,213 crore for Central Bank of India.

    All the three banks saw a drop in net interest margins (NIMs)-the difference between interest income a bank generates from its assets and the interest it pays out on its liabilities.

    NIMs for Bank of India were at 2.41% in Q2FY26 from 2.81% in Q1FY25, for Central Bank of India, NIMs fell 52 basis points to 2.89% during the quarter, from 3.41%, while for Uco Bank NIMs stood at 2.90% from 3.10%. Pressure on NIMs is expected to reduce in the third quarter, bank officials said in the earnings call.

    loans grow faster than deposits in q2 at Uco, CBI & BoI

    The bank’s net interest income (NII) for Central Bank of India grew 3.7% to ₹3,283 crore, while it grew 10% to ₹ 2,533 crore for Uco bank over the year.

    For Bank of India, NII reduced by 1% to ₹5,912 crore and 2533 10%

    Provisions too, saw a drop by 58% to ₹441 crore for Bank of India and by 54.2% to ₹573 crores. Uco Bank however saw an increase in provisions over the year by 19% to ₹993 crores. “The provisions made are forward looking and prudent,” said Ashwani Kumar, MD & CEO, Uco Bank in the earnings call.

    Loan and deposit growth

    Loan growth outpaced deposit growth in all the three banks. For Uco Bank, deposits grew at 16.5% to ₹2.3 lakh crore while loans grew 10.8% to ₹ 3.05 lakh crore. For Bank of India, loans grew 14% to ₹7.1 lakh crore while deposits grew 10% to ₹8.5 lakh crore.

    For the Central Bank of India, loans grew 16.03% to ₹2.9 lakh crore and deposits grew 13.4% to ₹4.5 lakh crore.

    [ad_2]

    Source link

  • Bank of India plans share sale to meet SEBI’s minimum public holding norms

    Bank of India plans share sale to meet SEBI’s minimum public holding norms

    [ad_1]

    State-owned Bank of India is exploring the possibility of share sale to investors over the next one year to meet the minimum public holding requirement of 25 per cent.

    Currently, Indian Government holds 81.41 per cent stake in the Mumbai-based bank.

    “We are exploring options to meet SEBI’s minimum public holding requirement. However, the decision to sell shares would depend on market conditions,” Bank of India Managing Director Rajneesh Karnatak told PTI.

    Public sector banks have time till August 2024 for meeting the Securities and Exchange Board of India (SEBI) requirement, he said.

    Post share-sale, depending on the quantum, the holding of Indian Government would come down below 75 per cent.

    With regard to the bank’s growth, he said, credit growth is expected to be 11-12 per cent during the current financial year helped by retail, MSME and agriculture loans.

    As far as the deposit is concerned, he said, “We hope to grow the liability side by 10 per cent during the current financial year.” Asked about the resource mobilisation plan of the bank, he said, Capital Adequacy Ratio of the bank stood at 16.28 per cent in March 2023 and this should be enough to take care of loan growth during the year.

    However, the board has given its approval to raise capital aggregating up to ₹6,500 crore in FY24 through bonds.

    As per the board approval, the bank can raise up to ₹4,500 crore from follow-on public offer/ qualified institutional placement/rights issue/preferential issue and/or Basel III compliant additional tier-1 (AT-1) bonds while remaining ₹2,000 crore via Basel III compliant Tier-2 bonds in one or more tranches.

    It will be done when the need arises and market conditions are conducive, he added.

    Karnatak while addressing a town hall meet here on Wednesday asked officers and staff to focus on Current Account Savings Account (CASA) mobilisation and increase non-interest income.

    He said the bank is working towards aligning its IT and digital banking products to keep pace with digitalisation and enhanced customer experience.

    Karnatak, in presence of Field General Manager Prashant Thapliyal and head government business D S Shekhawat, said every employee should focus on customer satisfaction and improving efficiency.

    [ad_2]

    Source link

  • Bank of India launches “Centralised Pool Buy-Out and Co-Lending Cell” to boost priority sector lending

    Bank of India launches “Centralised Pool Buy-Out and Co-Lending Cell” to boost priority sector lending

    [ad_1]

    Bank of India has launched a ‘Centralized Pool Buy-Out and Co-Lending Cell’ to boost priority sector lending. 

    The Cell, which is housed in the Bank’s Mumbai headquarters, will be equipped with an end-to-end digital underwriting system to onboard pool buy-out and co-lending of loans in partnership with NBFCs (non-banking finance companies), per the public sector bank’s statement.

    Through this platform, seamless integration will be provided between the Bank and multiple NBFCs.

    The Cell will onboard loan assets under Retail, MSME and the Agriculture segment with a dedicated team, the Bank said.

    So far, the Bank had been underwriting the aforementioned loans via various branches spread across the country.

    Rajneesh Karnatak – MD & CEO, Bank of India, said: “Our Bank will build a sizeable business book through its digital platform while complying fully with all the regulatory guidelines.

    “By leveraging our partnerships with NBFCs, Bank of India will improve its priority sector lending portfolio.”

    [ad_2]

    Source link

  • SBI to raise up to $2 billion in FY24 from overseas markets

    SBI to raise up to $2 billion in FY24 from overseas markets

    [ad_1]

    The Executive Committee of State Bank of India’s Central Board on Tuesday approved long term fund raising of up to $2 billion in US dollar or any other convertible currency during FY24.

    The fund raising will be in single/multiple tranches under ‘Reg-S/144A’, through a public offer and/or private placement of senior unsecured notes, India’s largest bank said in a regulatory filing.

    According to an article in lexology.com, any offering of securities anywhere in the world must be either registered with the US Securities and Exchange Commission (the SEC) or exempt.

    “The two primary exemptions from such requirements that are most often utilized in international securities offerings are Rule 144A (offers and sales to qualified institutional buyers inside the US) and Regulation S (sales to investors outside the US in offshore transactions). These two exemptions commonly work in tandem,” per the article.

    Meanwhile, the Board of Directors of Bank of India (BoI) on Tuesday approved the raising of capital aggregating up to ₹6,500 crore in FY24 via issue of fresh equity capital and Basel III compliant Tier-2 bonds.

    The bank, in a regulatory filing, said it will raise up to ₹4,500 crore by issue of fresh equity capital.

    The equity capital raise could be in the form of follow-on public offer/qualified institutional placement/rights issue/preferential Issue and/or Basel III compliant Additional Tier-1 (AT-1) bonds (domestic and foreign currency).

    It will also issue of Basel III compliant Tier-2 bonds up to ₹2,000 crore.

    [ad_2]

    Source link

  • AT-1 Bonds: Market has become polarised towards larger/ quality banks, says Jefferies

    AT-1 Bonds: Market has become polarised towards larger/ quality banks, says Jefferies

    [ad_1]

    The Additional Tier (AT)-1 bond market has polarised towards large/quality banks post the writedown of these bonds aggregating ₹8,415 crore by Yes Bank in the fourth quarter of FY20, according to Jefferies.

    This observation comes in the backdrop of UBS’ acquisition of the troubled Credit Suisse entailing a write-down of the latter’s AT-1 bonds aggregating $17.2 billion.

    Explained: How will the Credit Suisse crisis impact India?
         Explained: How will the Credit Suisse crisis impact India?
     

    “India had a Credit Suisse-like AT-1 bond issue right around Covid when Yes Bank wrote-down AT-1 bonds and still there was some franchise value assigned to equity through capital infusion by leading banks/ NBFC.

    “Since then, the issuances have been lower and market has become polarised towards larger/ quality banks,” Brokerage firm Jefferies said in a report.

    Top contributors

    Among banks, the top three issuers are the State Bank of India (SBI), HDFC Bank, and Canara Bank with public sector banks (PSBs) having higher contribution from this.

    PSBs have a higher share of AT-1 bonds in capital structure compared to private sector peers, Jefferies said.

    Among PSBs, SBI had AT-1 capital of ₹41,500 crore, followed by Canara Bank (₹12,400 crore), Punjab National Bank (₹8,700 crore), Bank of India (₹2,900 crore), and Indian Bank (₹2,000 crore), the firm said.

    Among private sector banks, HDFC Bank had AT-1 capital of ₹12,300 crore, followed by ICICI Bank (₹5,100 crore), Axis Bank (₹4,800 crore), IndusInd Bank (₹1,500 crore), and Kotak Bank (₹500 crore)

    “Interestingly, smaller banks have a lower contribution from AT-1 bonds. Local bond market investors aren’t really seeing risks here for Indian stocks,” Jefferies said.

    ‘Better-placed’

    The report observed that Indian financials (banks and NBFCs) have also borne the rub-off effect of global dislocations. But, they are better placed with a higher share of retail deposits, limited ALM (asset-liability mismatch) gap & MTM (mark-to-market), limited dependence on AT-1 bonds, and lower exposure to riskier segments like promoter/acquisition finance.

    While equities and global bonds saw pressure off late, the local bond market is stable. Post correction, valuations of some are near/below Covid lows, the firm said.

    [ad_2]

    Source link

  • Mazagon Dock, Alembic Pharma, Adani Enterprises among 30 BSE500 stocks that gained up to 22% this week

    Mazagon Dock, Alembic Pharma, Adani Enterprises among 30 BSE500 stocks that gained up to 22% this week

    [ad_1]

    The Indian market ended in the green for the week buoyed by positive global cues. While Sensex gained 990.30 points or 1.65 per cent to 60,950, Nifty climbed 1.86 per cent or 330 points to 18,117.

    At least 30 stocks rose between 10 per cent to 22 per cent on the BSE 500 index in the last five trading sessions.

    Top gainer was Mazagon Dock Shipbuilders rising 21.93 per cent during the week to close at Rs 781.20. The stock also hit its 52-week high of Rs 798.50 on November 3 (Thursday).

    On a daily basis, the stock ended 3.63 per cent or Rs 27.40 higher on Friday.  It also touched an intraday high of Rs 792.50. Market cap of the firm rose to Rs 15,756 crore. The stock gained 22.74 per cent in the last four trading sessions. The company will announce its September quarter earnings on November 10, 2022.

    Shares of Alembic Pharmaceuticals were the second largest gainers on BSE 500 rising 19.37 per cent during the week. On a daily basis, the stock ended 0.36 per cent or Rs 2.40 lower on Friday. It also touched an intraday low of Rs 642.45 falling 2.49 percent in the last trading session. Market cap of the firm fell to Rs 12,903 crore. The stock fell on Friday after six sessions of gains. The company will announce its September quarter earnings on November 11, 2022

    Redington stock also gained 16.53 per cent during the week to close at Rs 158.20. On a daily basis, the stock ended 0.73 per cent or Rs 1.15 higher on Friday. It also touched an intraday high of Rs 164.45 rising 4.71 percent in the last trading session. Market cap of the firm rose to Rs 12,362 crore. The stock has risen consecutively for the last five sessions. The company reported a 26% rise in consolidated net profit to Rs 387 crore on a 25% increase in revenue to Rs 19,080.8 crore in Q2 FY23 on a year-on-year basis.

    Shares of Indian Overseas Bank climbed 16.08 per cent during the week to close at Rs 21.65. The banking stock touched an intraday high of Rs 21.9, rising 13.18% on BSE. Later, it closed 11.89 per cent higher on Friday. Market cap of the bank rose to Rs 38,750 crore. The stock has risen 15.78 per cent in the last two sessions. The lender will announce its September quarter earnings on November 5 (today).

    Shares of Adani Enterprises climbed 15.24 per cent during the week to close at Rs 3,832.5. The large cap stock touched an intraday high of Rs 3,850, rising 7.21% on BSE. Later, it closed 6.72 per cent higher on Friday. Market cap of the Adani Group firm rose to Rs 38,750 crore. The stock has risen 16.13 per cent in the last seven sessions. The company announced its September quarter earnings on November 3. Consolidated profit in Q2 jumped 117 per cent year-on-year (YoY) to Rs 461 crore from Rs 202 crore in the corresponding quarter last year. Consolidated total income for the quarter surged 183 per cent YoY to Rs 38,441 crore compared with Rs 13,597 crore in the same quarter last year. The top line growth was led by a strong show at IRM and Airport business.

    Other stocks which rose between 10% to 15% during the week were UCO Bank, Bank Of India, JK Lakshmi Cement, Dalmia Bharat Ltd., Punjab & Sind Bank, Rajesh Exports Ltd, Rail Vikas Nigam Ltd, Amara Raja Batteries, Vedanta Ltd, FSN E-Commerce Ventures Ltd., Lemon Tree Hotels Ltd, MAS Financial Services, Delhivery, Jindal Stainless, Thermax, Ircon International, Cochin Shipyard, Godfrey Phillips India, Bank Of Maharashtra, Heidelberg Cement India and Aster DM Healthcare.

    [ad_2]

    Source link

  • Fixed 7% return! Bank of Baroda and Bank of India launch new schemes for you

    Fixed 7% return! Bank of Baroda and Bank of India launch new schemes for you

    [ad_1]

    With the rise in repo rate along with the widening credit deposit gap, banks have started offering higher interest rates to attract more customers. For example, Bank of Baroda has today announced the launch of the Baroda Tiranga Plus Deposit Scheme, offering higher interest rates of up to 7.50 per cent p.a. for 399 days with effect from 1st November 2022, which includes 0.50 per cent p.a. for senior citizens and 0.25 per cent for non-callable deposits. The scheme is applicable on retail term deposits below Rs 2 crore. The bank has also increased the premium on Non-Callable Retail Term Deposits from 0.15 per cent p.a. to 0.25 per cent p.a. Hence, non-callable deposits will now receive 0.25 per cent p.a. extra.

    Similarly, Bank of India increased FD rates on Tuesday and is now offering up to 7.75 per cent interest rate on their ‘Star Super Triple Seven Fixed Deposit’, which is a limited-time offer. Under the newly launched Fixed Deposit Scheme, depositors can earn an interest rate of 7.25 per cent and up to 7.75 per cent for senior citizens on a deposit for 777 days. In addition to this new offering, the bank has raised the interest rate on its existing 555-day fixed deposit scheme to 6.30 per cent. On other time buckets from 180 days to less than 5 years, the bank has raised the interest by 25 basis points.

    Ajay K. Khurana, Executive Director, Bank of Baroda said, “In a rising interest rate environment, we are pleased to offer a higher interest rate to consumers so that they earn more on their savings. The Baroda Tiranga Plus Deposit Scheme offers higher interest rates and assured returns. On our Non-Callable Deposits, the Bank has also decided to increase the Non-Callable Premium from 0.15 to 0.25 per cent on retail term deposits, providing further benefits to customers.”

    [ad_2]

    Source link