Companies & Sectors
Canara Bank to open 2,000 ATMs by March 2014

Canara Bank has about 3,200 ATMs spread across the country at present and plans to increase the count to around 5,000 by 2014


New Delhi: State-owned Canara Bank said it will open 2,000 ATMs by March 2014, taking the total number of cash dispensing machines to over 5,000 by the end of next fiscal, reports PTI.


“In order to increase our delivery channel, we will be opening 2,000 ATMs by March 2014,” Canara Bank’s executive director AK Gupta said while inaugurating the first e-lounge of the bank in the capital.


The bank has about 3,200 ATMs spread across the country at present.


The Bangalore-based bank has about 3,700 branches in the country and six overseas branches.


Talking about the e-lounge, Gupta said this is the first such delivery point in Delhi which will provide customers facility to update their account, withdraw and deposit funds beyond the banking hours.


Customers can also use the Internet facility to do banking operations and stock trading, he said, adding, video conference facility is also available for interaction with the bank officials.


The bank also intends to open eight such centres at various locations in the country in the next two months. These e-lounges will cater to the needs of customers round-the-clock and all seven days of the week, he added.


Asked about the interest rates revision, Gupta said the bank recently revised its fixed deposit rates by up to 1% on select maturities.


The interest rate has been brought down by 0.5% on one maturity slab (180-269 days) to 7.5% from 8%.


On 1-2 years and 3-5 years fixed deposits, rates have been raised by 0.55% to 9.05%.


Fixed deposits between 270 days and one year will earn 1% higher interest. The new rate would be 9% against existing rate of 8%.


ED attaches bank accounts worth Rs1.63 crore

The ED had registered a money laundering case last year against few persons involved in a money-doubling racket after investors filed a complaint with the police in Haryana

: The Enforcement Directorate (ED) has attached bank accounts worth Rs1.63 crore of some individuals allegedly involved in a racket which had duped a number of investors, reports PTI.


The ED authorities had registered a money laundering case last year against few persons after investors filed a complaint with the police in Haryana and other places.


The ED office in Chandigarh has jurisdiction to probe cases in Haryana.


“It was alleged that during 2009 that a company with offices at Bangalore and Chennai had lured several investors and the Directors of the company through their agents promised to double their invested money.


“The firms involved started online schemes and they have paid committed returns/payouts to the investors for one year but after sometime the companies have stopped paying the returns since September/October 2010,” the ED said in its order.


The ED order added that “investigations conducted culminated in identification of proceeds of the crime to the tune of Rs1.63 crore lying in different bank accounts which have been provisionally attached under Provisions of Prevention of Money Laundering Act (PMLA).”




4 years ago


Bank of India Q3 net profit up 12% to Rs803 crore on lower tax outgo

The state-run lender’s net interest income rose 11.7% to Rs2,308.5 crore during December quarter, while its total revenues increased 12% to Rs 8,960 crore


Mumbai: State-run Bank of India (BoI) has reported 12.15% rise in net profit at Rs803.48 crore in the third quarter on the back of growth in core income supported by other income and decline in tax outgo, reports PTI.


Total income of the city-based bank rose 11.97% to Rs 8,960 crore during the quarter ended December 2012 from Rs8,002 crore a year ago.


“We have reported positive result in major parameters. Asset quality has seen marginal improvement in the third quarter, which is likely to be better in the future. Going ahead, our major focus will be on retail and SME segments,” BoI’s newly-appointed chairman and managing director VR Iyer told reporters.


The public sector bank reported 11.65% rise in Q3 net interest income (NII) to Rs2,308.46 crore, while non-interest income rose 9.97% to Rs937.15 crore.


During the period under review, other income and drop in tax outgo supplemented the overall profit numbers.


The bank however, reported a decline in its net interest margin to 2.36% compared to 2.55% reported in the same period last fiscal.


“Going ahead, we hope that NIM will improve with our focus on increasing the domestic credit to deposit (CD) ratio to around 75%,” Iyer said, adding it aims to achieve a NIM of 2.6% by the end of the fiscal.


The lender posted a 13.63% rise in deposit to Rs3.49 lakh crore and 20.27% rise in credit to Rs2.80 lakh crore by the end of December quarter.


“We hope advances will grow by 17-18% in the current fiscal with a deposit growth of 15%,” she said, adding the bank is emphasising on increasing the cheap CASA deposit base with shedding of bulk deposits.


She said the bank aims to maintain the CASA at the present level of 33.84% by the end of FY13 and it has already shed around Rs21,000 crore from the bulk deposit from the June quarter.


“Our bulk deposits stood at around 18% by the end of December and we hope to bring it down 15% in the near future, as desired by the government,” Iyer said.


On the asset quality front, net NPAs rose to 1.97% year-on year, from 1.78%. But sequentially it improved considerably from 2.04% in the September quarter.


Similarly, gross NPAs also rose to 3.08% from 2.74% a year ago, but q-o-q it improved from 3.42% in the September quarter.


“We hope to reduce gross NPAs to 2.9% and net NPAs to 1.8% by the end of the fiscal,” Iyer said.


On the restructured accounts, the bank saw an addition of around Rs2,300 crore in the last quarter, totalling the total recast loan book to Rs15,937 crore, mostly from some textile and steel accounts.


“Our total restructured book to the total outstanding loan has declined and I don't see any major restructuring pipeline going ahead,” she said.


On the capital adequacy front, the bank’s a CAR stood at 10.59% with a tier-I capital of 7.64%.


“The government will infuse Rs 809 crore in FY13, which will increase our CAR to around 11%. Though we don’t need capital for the next six months, we need to raise money for sustaining our growth,” she said, adding BoI will take a call on the instruments of fund raising going ahead.


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