Lakshmi Vilas Bank Q1 net loss widens

Lakshmi Vilas Bank on Tuesday said its net loss widened to Rs.237 crore in the first quarter of FY20, mainly on account of higher provisioning and lower growth in net interest income.
The lender had registered a net loss of Rs.124 crore in the same period last financial year (FY19).
The provisions of the lender saw a huge decline sequentially and a rise of 31.06% on a year on year basis. In the June quarter of FY20, provisions of the lender stood at Rs.211.70 crore as compared to Rs.478.77 crore in Q4FY19 and Rs.161.53 crore in Q1FY19. The provision coverage ratio of the bank in this quarter stood at 63.08%.
Net interest income (NII), the difference between interest earned on loans and that paid on deposits, of the lender saw a 5.09% decline at Rs.123.57 crore in this quarter compared to130.20 crore in Q1FY19.
The net interest margin (NIM), a measure of profitability of banks, of the lender rose to 1.65% in this quarter, as compared to 1.48% in Q1FY19.
The non-interest income of the lender saw a decline of 12.05% at Rs.53.22 crore in Q1FY20 as compared to 60.51 crore in the same period a year ago.
On the asset quality front, the lender saw a rise in bad assets year-on-year. Gross non-performing assets (NPAs) of the bank in this quarter stood at 17.3%, compared to 10.73% in Q1FY19. Similarly, net NPAs of the bank in this quarter stood at 8.30% compared to 5.96% in Q1FY19.
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RBI cuts repo rate by 35 basis points


Reserve Bank of India’s (RBI) monetary policy committee (MPC) on Wednesday lowered its repo rate by an unconventional 35 basis points to 5.4%. This is the fourth reduction in a row of its key policy rate since Shaktikanta Das took over as the governor of the central bank in December last year.


All members of the MPC unanimously voted to reduce the policy repo rate and to maintain the accommodative stance of monetary policy. Four members — Ravindra H. Dholakia, Michael Debabrata Patra, Bibhu Prasad Kanungo and Shaktikanta Das — voted to reduce the policy repo rate by 35 basis points, while two members — Chetan Ghate and Pami Dua — voted to reduce the policy repo rate by 25 basis points.

The path of CPI inflation is now projected at 3.1% for the second quarter of FY20 and 3.5-3.7% for second half of FY20, with risks evenly balanced. Consumer price index (CPI) inflation for the first quarter of FY21 is projected at 3.6%. The MPC also revised downwards GDP growth for FY20 from 7% in the June policy to 6.9% in August in the range of 5.8-6.6% for the first half of FY20 and 7.3-7.5% for the second half–with risks somewhat tilted to the downside. GDP growth for the first quarter of FY21 is projected at 7.4%.

The central bank also said that liquidity in the system was in large surplus in June-July 2019 due to return of currency to the banking system; drawdown of excess cash reserve ratio (CRR) balances by banks; open market operation (OMO) purchase auctions; and RBI’s foreign exchange market operations.

RBI said it absorbed liquidity of Rs.51,710 crore in June, Rs.1.30 trillion in July and ₹2.04 trillion in August (up to 6 August, 2019) on a daily net average basis under the LAF.
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Five new rules recently NPS introduced


The government in the recent Budget announced several changes to the National Pension Scheme (NPS), including increasing the income tax exemption limit on withdrawal from the pension scheme. The government also announced some additional benefits exclusively for central government employees who contribute to the pension scheme. NPS Trust will restart recovery of administrative charges from the assets under management of subscribers. NPS Trust is responsible for the monitoring of the operational and service level functions under NPS or any other pension scheme regulated under the PFRDA Act.

Recent changes in NPS rules

1) The charges for NPS subscribers have increased marginally after NPS Trust also allowed recovery of administrative charges/expenses @0.005% per annum. “It is brought to the notice of all subscribers under National Pension System that, as approved by the Pension Fund Regulatory and Development Authority, NPS Trust will restart recovering administrative charges/expenses @0.005% per annum of the Asset under Management (AUM) on daily accrual basis to meet its expenditure," NPS Trust said in a notice to subscribers. This came into effect from 1 August, 2019.

From January this year, NPS Trust had stopped recovery of administrative charges/expenses that it used to charge @0.005% per annum of AUM on daily accrual basis to meet its expenses. The impact of the reimposition of @0.005% will have only a minimal impact, say experts. On an AUM of₹1 lakh, the new charge means that only ₹5 in extra charges will be deducted per year.

2) In Budget, which was tabled in July and later approved by the Parliament, the government had raised the income tax exemption limit on withdrawal from NPS corpus on retirement, or reaching the age of 60, to 60% from 40%.

On retirement, an NPS subscriber can withdraw a lumpsum of up to 60% of the NPS corpus fund and balance 40% has to be invested in an annuity plan. This makes NPS an Exempt, Exempt and Exempt (EEE) product like Public Provident Fund and Sukanya Samriddhi Yojana though only 60% of the corpus can be withdrawn.

3) For central government employees, Section 80CCD(2) of the Income Tax Act has been amended to allow exemption of employer contribution up to 14% of the salary of central government employees. This move benefits approximately 18 lakh central government employees covered under NPS. This is not applicable for private sector employees.

4) The government has also allowed own contribution by central government employees to Tier II account qualify for income tax benefits under Section 80C, provided the money is locked in for a period of 3 years.

5) Earlier this year, pension fund regulator PFRDA gave government sector NPS subscribers more choice in terms of selecting fund managers to manage their NPS contributions. Central Government subscribers have been allowed to choose any one of the pension funds including private sector pension fund manager. Government employees have the freedom to choose asset allocations, allowing more equity exposure. Earlier it was capped at 15%.
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Central Bank of India back into profit in Q1


Central Bank of India returned to profit in the first quarter ended June 2019 aided by lower provisioning. The bank posted a net profit ₹118.33 crore for the three months ended 30 June, against a net loss of₹1,522.24 crore in the year-ago period.

Provisions during the quarter decreased 62.62% to ₹1,034.78 crore, from ₹2,768.22 crore in the year-ago quarter. During the January-March quarter, the bank had set aside ₹4,733.82 crore in provisions.

Net interest income, or the difference between interest earned on loans and that paid on deposits, increased 6.67% to₹1,790.19 crore during the first quarter, against ₹1678.18 crore in the corresponding period last year.

Other income, including core fee income, rose more than three times to ₹7,79.11 crore in the first three months of the current financial year, from ₹212.95 crore a year ago.

Gross non-performing assets (NPAs), as a percentage of total advances, were at 19.93% in the June quarter, compared with 19.29% in the March quarter, and 22.17% a year ago.

Post-provision, the net NPA ratio was at 7.98%, against 7.73% during the January-March quarter and 10.58% in the year-ago quarter.
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Indian bank Q1 result, net profit up 74%


Indian Bank on Monday posted a 74.55 per cent jump in its net profits for the April-June quarter. According to a top official, it recorded a net profit of Rs 365.37 crore.

Indian bank recorded net profits at Rs 209.31 crore during the corresponding quarter the previous year.

For the year ending March 31, 2019 the net profits were at Rs 321.95 crore.

Declaring the financial performance, Indian Bank managing director and Chief Executive Officer (CEO) Padmaja Chunduru said it is one quarter posting strong results.

“The bank has posted a healthy growth in all segments,” she told reporters.

On the total income for the April-June quarter, she said it grew to Rs 5,832.11 crore from Rs 5,131.96 crore registered the same period last year.

For the year ending March 31, 2019 total income of the bank was at Rs 21,067.70 crore.

On the 74.55 per cent jump in the net profits, Chunduru said they have been the highest strong point of this quarter.

“There is a 75 per cent increase (in net profits). This is because of arrest in fresh slippages, increase in recovery.

I think, we are back on track. We have been working on arresting fresh slippages,” she said.

According to her, the slippages were Rs 1,035 crore for the quarter under review period.

She said the bank has set a target of bringing down the slippages to around Rs 800-Rs 900 crore in the coming quarters.

“There is growth in RAM (retail, agriculture and micro, small and medium enterprises segments) with 25 per cent in retail, 25 per cent in agriculture and 10 per cent in micro, small and medium enterprises (MSMEs).

The overall capital adequacy ratio is at 13.62 per cent. This is what gives us more comfort and confidence. We are building assets in a very prudent way”, she said.

Noting that the bank witnessed over 300 per cent rise in transactions made through mobile banking, she said the bank planned to ramp up transactions made through the digital platform.

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RBI slaps fine on Nine banks due to violating norms

The RBI has imposed penalties on nine commercial banks, including SBI, PNB and BoB, for a host of violations, including delay on the reporting of fraud in the account of Kingfisher Airlines in case of two lenders.

The nine lenders in separate regulatory filings said that the penalties have been imposed on them for delay in reporting of frauds. Public sector lender Punjab National Bank (PNB) said the RBI has imposed a penalty of Rs 50 lakh on it for delay in reporting of fraud in the account of Kingfisher Airlines.

Another state-run lender Oriental Bank of Commerce said that the RBI has imposed a fine of Rs 1.5 crore on it for delay in reporting fraud in the account of Kingfisher Airlines. The aforesaid penalty is required to be paid within 14 days from the date of receipt of the RBI order, the bank added.

United Bank of India and Punjab & Sind Bank said they have been fined 1 crore each by the RBI. State Bank of India (SBI) said the RBI imposed a penalty of Rs 50 lakh on it for non-compliance relating to reporting of frauds. The RBI in exercise of the powers conferred under various sections of the Banking Regulations Act, has imposed a penalty of Rs 50 lakh on the bank for non-compliance with its directions relating to reporting of frauds, it said in a filing.

Bank of Baroda and Federal Bank reported a fine of Rs 50 lakh each on them for delay in reporting fraud in an account.

Corporation Bank and UCO Bank also reported imposition of fines by the RBI for delay in reporting of frauds.

The RBI in a release on Friday had said that it had imposed a fine of Rs 1 crore on Corporation Bank non-compliance with the directions on cyber security framework and frauds classification and reporting.

The central bank in another release on Friday had named seven banks that faced penalties of various amounts for violation of its direction on fraud classification and reporting and opening of current accounts. The RBI slapped a penalty of Rs 2 crore each on Allahabad Bank and Bank of Maharashtra, Rs 1.5 crore each on Bank of Baroda, Bank of India, Indian Overseas Bank and Union Bank of India, and Rs 1 crore penalty on Oriental Bank of Commerce.

A scrutiny was carried out by the RBI in the accounts of the companies of a Group and it was observed that the banks had failed to comply with provisions of one or more of the directions issued by the RBI, the release had said. Based on the findings of the scrutiny, notices were issued to the banks advising them to show cause as to why penalty should not be imposed for non-compliance with the directions.
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IBPS PO/MT IX 2019 Official Notification for 4336 Posts

IBPS (Institute of Banking Personnel Selection)  has published an Advertisement for PO/MT Posts 2019. Other details like age limit, educational qualification, selection process, application fee and how to apply are given below in the advertisement.

Posts: Probationary Officers (PO) / Management Trainee (MT)

Category Wise Posts:
General Post – 2031 Post
OBC Post – 904 Post
EBC Post – 432 Post
SC Post – 670 Post
ST Post – 299 Post

Total No. of Posts: 4336 Post

Participants: Allahabad Bank, Canara Bank, Indian Bank, Syndicate Bank, Andhra Bank, Central Bank of India, Indian Overseas Bank, UCO Bank, Bank of Baroda, Corporation Bank, Oriental Bank of Commerce, United Bank of India, Bank of India, Punjab National Bank, Union Bank of India, Bank of Maharashtra, Punjab and Sind Bank.

Educational QualificationThe candidate must possess a Degree of Graduation from a recognized university., Please read Official Notification for More Educational Qualification details.

Age Limit: (As on 01-August-2019)
The candidate’s age must be 20-30 years.
(Age Relaxation- SC/ST- 05 years, OBC-03 years)

Application Fee:
General/OBC – Rs.600/-
SC/ST/PH – Rs.100/-
The application fee can be paid online through credit card/ debit card/ net banking/mobile wallets/ cash card/ IMPS

Selection Process: i) Online Preliminary Exam, ii) Online Main Exam, iii) Interview
For more details on IBPS PO Recruitment 2019, check the official notification

Important Dates:
Starting Date of Online Application: 07-August-2019
Last Date to Apply Online: 28-August-2019
Fee Payment Last Date: 28-August-2019
Preliminary Exam Date: 12, 13, 19,  20 October 2019
Mains Exam Date: 30-November-2019

How to Apply: Interested Candidates may Apply Online Through official Website.

Advertisement: Click Here

Apply Online: Click Here
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Jammu & Kashmir Bank reports 58% fall in Q1 net profit

Jammu & Kashmir Bank on Saturday reported a 58 per cent fall in its net profit to Rs 21.87 crore in the first quarter of 2019-20 due to a rise in provisions for bad loans.
The bank had posted a net profit of Rs 52.59 crore in the April-June quarter of the previous fiscal.
Total income during the first quarter of 2019-20 rose to Rs 2,256.25 crore from Rs 1,897.24 crore in the same period of 2018-19, the bank said in a release.
On asset front, gross non performing assets fell to 8.48 per cent of gross advances as on June 2019, as against 9.83 per cent by June end 2018.
Net NPAs also came down to Rs 4.36 per cent from 4.46 per cent a year ago.
However, the provisioning for bad loans and contingencies moved up to Rs 293.21 crore in the June quarter from Rs 255.01 crore in the same quarter of previous fiscal.
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