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Discuss Banking News..... within the Discuss about leading banks and insurance companies forums, part of the Banking and Insurance Paradise ( BBI Projects and Research Notes ) category; Business mix no mirror to bank's efficiency MUMBAI: Next week when finance minister P Chidambaram reviews the performance of state-owned ...

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Re: Banking News..... - January 2nd, 2008

Business mix no mirror to bank's efficiency

MUMBAI: Next week when finance minister P Chidambaram reviews the performance of state-owned banks, he may well have to reflect on the fact that balance sheet size is in no way an indicator of the efficiency of a bank.

A study of select banks shows that a number of banks with a smaller business mix have reported higher profits than those with a larger business mix — which is deposits plus advances. For instance, Bank of India reported an operating profit of Rs 1,517 crore against its total business of Rs 2,25,406 crore. Compared to this, Canara Bank, which features among the largest state-owned banks, reported an operating profit of Rs 1,262.3 crore with total business of Rs 2,40,537 crore.

Similarly, Indian Overseas Bank has reported an operating profit of Rs 867 crore against its total business of Rs 1,29,628 crore. In comparison, Central Bank of India, which recently raised over Rs 800 crore from the capital market, reported an operating profit of Rs 511 crore, despite the fact that its business mix was much higher at Rs 1,44,816 crore.

Surprisingly, Canara Bank, which is undergoing a massive branding exercise, has a business mix three times that of Corporation Bank. Yet, its operating profit is only twice that of Corporation Bank. In fact, many banks including Allahabad Bank, Corporation Bank and Indian Overseas Bank with a far lower business mix than that of Central Bank of India have outpaced the Mumbai-based bank in terms of profits.

Analysts say if the profits are not commensurate with the business mix, it does not reflect well on the efficiency of the bank. Further, it also indicates that the bank has earned a lower fee income and that it has raised deposits on which the management has failed to generate healthy revenues.

But the performance of state-owned banks pales when compared with private banks. HDFC Bank, has reported an operating profit of Rs 1,610 crore, which is much higher than that reported by a host of large state-owned banks such as Canara Bank, Bank of Baroda, Bank of India and Union Bank of India.

Yet, its total business mix at Rs 1,53,347 crore is much lower than these banks. This could be partly because HDFC Bank has posted the highest net interest margin (NIM) of 4% in the local banking industry while most state-owned banks are stacked far below, averaging NIMs in the range of 2.3% to 3.5%.

Similarly, the country’s largest bank, State Bank of India, has a business mix twice that of the second-largest bank, ICICI Bank. Yet, the private bank has reported more than half the profit of SBI in the first six months. This is despite the fact that ICICI Bank’s NIM at 2.25% is much lower than that of SBI at 2.84%.
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Re: Banking News..... - January 3rd, 2008

Nabard grants Rs 222 cr for infrastructure development

KOLKATA: The National Bank for Agriculture and Rural Development (Nabard) on Thursday said it has sanctioned Rs 222.23 crore for Rural Infrastructure Development Fund (RIDF) of West Bengal.

Nabard said the amount was sanctioned for projects under 13 tranches of RIDF for building 48 rural roads, three bridges, 1,208 minor irrigation projects, construction of 1,119 anganwadi centres, drainage and joint forest management projects.

In 2007-08, total cumulative assistance from Nabard in RIDF-XIII to West Bengal was Rs 358.53 crore, Nabard said.

Since inception of RIDF, Nabard has sanctioned loan to 25,392 projects totalling 4338.30 crore, the release said.

Rural connectivity received the highest attention with Rs 2188.74 crore or 50.45 per cent of the total assistance.


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Re: Banking News..... - January 18th, 2008

this is really good
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Smile Re: Banking News..... - January 18th, 2008

it is amazing ...............
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Re: Banking News..... - February 27th, 2008

HDFC is taking over Centurion bank to create the first bank with a 1000 branches in india..... its a $2.3bn takeover
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Jitendra Mazee
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Re: Banking News..... - April 14th, 2016

Quote:
Originally Posted by maverick_ronnie View Post
hey boyz n gilrz
there r lots of new things going on in banking sector
soo stay updated

Hey friend, you said right thing that there are many changes taking place in banking sector in order to improve their service quality. Well, i am also uploading a document which will show you some reforms or changes took place in banking sector.
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File Type: pdf banking reforms.pdf (215.7 KB, 0 views)
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Kumud Patel Kumud Patel
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Re: Banking News..... - November 24th, 2016

Why not sure always want new new updates to us
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