Citi India records a PAT upsurge
Citi India has claimed on 1st July, 2008 that the company's profit after tax (PAT) has recorded a 65 per cent increment for the last 31st March year ending period.
The reasons cited for the robust performance of the bank are quite a few. They include the bank's solid performance in the area of transaction services, consumer banking services, fixed income services, market activities and treasury activities.
Citi India posted a figure of Rs 2,596 crore for the reported year. The comparable figure was Rs 1,575 crore for the year preceding that.
As per Sanjay Nayar, CEO Citi India, the bank has now attained the status of the biggest foreign bank operating in India, after taking into account its present assets and profits
PSB sector giant SBI to offer mobile banking services
SBI added another feather to its cap by being the first public sector bank in India to start mobile banking operations from 1st July, 2008.
SBI has an estimated customer base numbering 1.3 crores. Coverage of even half of that customer base via mobile banking would render SBI the single largest player in India's mobile banking market.
It may be noted that, Spanco Telesystems is providing SBI with the requisite guidance and technical support for the mobile banking operations.
The bank also opened 101 new branches offering core banking solutions on the same day.
Core banking solution or CBS refers to the technology, which enables bank branches to stay networked. This way a customer can gain access to his SBI account from any branch of the bank.
It is interesting to note that, 1st July is the foundation day of this public sector banking giant.
Poor show by Indian equity market
Indian equity markets have put in their worst performance in the last few decades. Similar is the case for China.
It may be noted that India and China are touted as the two fastest growing economies in the world.
Since the beginning of 2008, Indian benchmarks have recorded a 34% negative figure. This is the highest half yearly losses recorded in the last 22 years.
The Indian investors have been affected by the tightening liquidity conditions and the high inflation rates. China too has faced similar market conditions in recent times.
Banking stocks in free-fall in India
July started off with depressing news for the stock markets.
As the stock markets tumbled, stocks led by the ones from the banking sector went for a free fall.
A high rate of inflation coupled with rising rates of interest have cast a doubt on the banking sector's profitability in near future.
People are also apprehensive of an economic slowdown.
Acting on the RBI's policy directive of money supply constriction, commercial banks have raised the lending rates. This is going to affect future investments and corporate profits.
The hike in the rates of interest is also adversely affecting the investment made by commercial banks in government securities.
Bombay Stock Exchange's Banking Index has suffered a 5.6 per cent loss.
It may be noted that most banks operating in India have gone for a 50 basis point increase of their PLRs. Banks like ICICI have gone for even higher increments.
OP Bhatt, SBI Chairman is not ruling out further interest hikes in the near future.
Bonus Issue from South Indian Bank
South Indian Bank's BOD has recommended for the issuance of bonus shares to the bank's existent share holders in 1:4 ratio. This was declared at the board's meeting held on 28th June, 2008.
The proposal is however subject to approval from shareholders in the coming Annual General Meeting of the bank.
This Annual General Meeting is slated for 18th August, 2008.
Incidentally, this is the 79 year old bank's first bonus issue.
CEO and Chairman of South Indian Bank, Dr V.A. Joseph further added that the bank's profits have crossed the Rs 150-crore threshold in the last concluded fiscal.
It may be noted that South Indian Bank operates in 23 States and Union Territories of India. It has 503
Core Banking Branches, 230 (online) ATM Centers and 26 Extension Counters (CBS).
Another 27 branches are on the anvil from this banking major in the present financial year.
