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If the RBI decides to make no effort to trace the bank account holders, appropriation of unclaimed deposits is unfair and improper
There are news reports which states that the Reserve Bank of India (RBI) is proposing to use ‘unclaimed’ deposits from banks for public purpose. Whilst I have no objection with the move, the banks have not done enough to trace depositors.
It was easy to open bank accounts. Many of us had many bank accounts, as we kept moving jobs, cities and houses. And, in some cases, people salted away savings secretly, to keep their immediate family out for some strange reasons.
Banks must introduce a system where they send out a mail to the last known address of their customer, every six months, enclosing a simple slip with the balance, account number, account holder name, beneficiary and nominee. It should be for every kind of account that the banker holds. This will ensure that there are no dormant accounts or at least ensure awareness with family members about accounts of other members. I do not see any breach of privacy in this. If not on a continuous basis, then banks can compulsorily do this if there is no debit operation in the account for more than three months.
I exclude credits because, in many cases, recurring payments keep happening even after the death of the account holder. Sometimes, spouses will not disclose the death of the pensioner till the next ‘life’ certificate is due. So, debits are a useful indicator. Similarly for fixed deposits (FDs), which have matured but not acted upon by the depositor for more than three months, can be actionable time lines for the banks. RBI has to ensure this. Yes, it is possible that some banks will cheat by not mailing, but simply ‘certifying’ that they have mailed. But hopefully, public sector banks (PSBs) will not resort to this.
Regarding the present pile-up of dormant accounts with huge balances, it would be useful if the RBI puts up details like names, dates of birth, last known addresses of such unclaimed money in an accessible website and announce publicity through the radio, television and print media. This will help in locating some survivors or account holders or their heirs who can then claim the money by following a legal process. If the RBI decides to make no effort to trace the account holders, this appropriation of unclaimed deposits is unfair and improper.
During the December quarter, the home loan lender posted net profit of Rs1277.71 crore on robust growth of its loan book and higher NII
Housing Development Finance Corporation (HDFC) reported a 12% increase in its net profit during the December quarter on strong revenues and robust growth of its loan book, which grew 19% and its individual loan book grew 27%.
For the quarter to end-December, the home loan lender said its net profit rose 12% to Rs1,277.71 crore from Rs1,140.10 crore while total revenues, including net interest income (NII) increased 16% to Rs5,985.18 crore from Rs5,145.70 crore a year ago period.
HDFC net interest margin (NIM) for the nine months ended 31 December 2013 stood at 4.0%, compared with 4.01%, a year ago period.
According to Monelylife analysis, HDFC’s net sales growth rate for the December quarter stood at 16%, which is marginally higher than its three-quarter year-on-year growth rate of 14%. HDFC’s operating profit growth rate stood at 19%, which is slightly higher than its three-quarter year-on-year growth rate of 17%. HDFC’s return on networth stood at 21% while its market capitalisation stood at 19 times its operating profit.
As on 31 December 2013, HDFC's total loan book grew 19% to Rs1.92 lakh crore from Rs1.60 lakh crore recorded in the same period a year ago. HDFC also reported 27% growth in the individual loan book. While spread on loans for the nine-months ended December 2013 stood at 2.25% as compared with 2.28% a year ago period.
HDFC’s gross non-performing loans reduced by 2 basis points to 0.77% of the loan portfolio as on 31 December 2013.
HDFC capital adequacy ratio (CAR) increased to 19.1% from 17.5%, a year ago period due to the reduction in risk weights of mortgages.
The total assets of HDFC, as on December 31, 2013 stood at Rs2,18,286 crore, an increase of 19% compared with Rs1,83,770 crore a year ago period.
At 12.42pm Thursday, HDFC was trading marginally higher at Rs850 on the BSE, while the 30-share benchmark was flat at 21,337.
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