Union Bank, Corporation Bank cut lending rate

Union Bank of India has revised base rate or minimum lending rate by 15 basis points to 10.50% from 10.65%. The revised rates will be effective from 1st May

New Delhi: A day after country’s largest lender SBI trimmed its fixed deposit rates, two more lenders—Union Bank of India and Corporation Bank—slashed benchmark lending rate by 0.15%, making loans cheaper, reports PTI.

The bank has revised base rate or minimum lending rate by 15 basis points to 10.50% from 10.65%, Union Bank of India said in a filing on the BSE.

Base rate is the benchmark rate below which a bank cannot lend.

Another state-owned lender Corporation Bank has also reduced the base rate by similar percentage points to 10.50%.

The revised rates of both the banks will be effective from 1 May 2012.

Following the Reserve Bank of India’s (RBI) decision to cut key interest rate by 0.5% to 8% in its annual credit policy last week, several banks including ICICI Bank, IDBI Bank and Punjab National Bank have reduced both lending and deposit rates.

State Bank of India (SBI), along with five more banks, has already announced revision in their interest rates.

SBI trimmed interest rates on fixed deposits by up to 1% across various maturities. There was upward revision of 0.25% in case of fixed deposits of 180 days.

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IDBI Mutual Fund launches ‘India Top 100 Equity Fund’

The investment approach of the scheme would concentrate on a total of 100 stocks that are constituents of the S&P CNX Nifty Index (Nifty 50) and the CNX Nifty Junior

Mumbai: IDBI Mututal Fund announced the launch of its second fund in the equity segment named ‘IDBI India Top 100 Equity Fund’, which has opened for subscription on 25 April 2012, reports PTI.

Subscription for the new fund offer (NFO) will close on 9 May 2012 and will reopen for sale and repurchase from 22 May 2012 onwards, a top company official said.

“Our bouquet of investment options comprise of index-based equity funds as well as gold and debt products. We now bring a diversified, actively manage equity fund to present a long-term investment opportunity in the current equity market,” IDBI Asset Management managing director and chief executive officer Debasish Mallick told reporters.

He said the fund house is aiming to ramp up Rs100 crore from investors from this offer.

Referring to investment objective, Mr Mallick said investment approach of this scheme would concentrate on a total of 100 stocks that are constituents of the S&P CNX Nifty Index (Nifty 50) and the CNX Nifty Junior.

The company, which has an index fund in the equity segment, also said that it would look for launching more equity funds in the current financial year.

“We may launch new funds in the equity space in the current financial year,” Mr Mallick said.

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COMMENTS

wealthucreate

5 years ago

It would be really interesting to see how IDBI would perform as Fund House. I

ING Vysya Q4 net profit up 39.5% to Rs127.4 crore

ING Vysya Bank’s total income rose by 32.81% to Rs1,258.30 crore compared to Rs947.42 crore in the same period last year

Mumbai: Private sector lender ING Vysya Bank posted 39.52% rise in net profit to Rs127.4 crore in the March quarter on the back of higher core earnings, reports PTI.

Net profit stood at Rs91.30 crore in the same period last fiscal.

Total income rose by 32.81% to Rs1,258.30 crore compared to Rs947.42 crore in the same period last year.

“Despite a difficult economic environment, we have witnessed a sound growth in our overall business during the last financial year,” the bank's chief financial officer Jayant Mehrotra told reporters in a conference call.

Net interest income (NII) rose 19% to Rs319.2 crore during the quarter while net interest margin (NIM) was steady at 3.29%.

“Though it is difficult to give a NIM outlook for 2012-13, we are hopeful of maintaining the current margin level,” Mr Mehrotra said.

The Bangalore-based private sector lender has also seen a sound growth in advances and deposits in 2011-12.

While its gross advances grew by 22% to Rs29,247 crore, deposits were up 17% to Rs35,195 crore by the end of March 2012.

On the non-performing asset front, net NPA improved to 0.18% from 0.39% and gross NPA improved to 1.92% from 2.30% during the fourth quarter.

Incidentally, current account, savings account (CASA) ratio stood at 34.2%.

For the whole financial year, net profit grew 43% to Rs456.3 crore and net interest income grew by 20% to Rs1,208.3 crore.

According to the bank, the net interest margin rose to 3.30% in FY11-12 from 3.25% reported in FY 10-11.

On the capital adequacy front, the CAR stood at 14% by the end of fiscal compared to 12.94% reported in FY10-11.

In afternoon trade, ING Vysya Bank was trading at around Rs358.80 per share on the Bombay Stock Exchange, 4.04% down from the previous close.

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