BANKING AND FINANCE NEWS!

Andhra Bank Q3 net profit rises to Rs 275 CR:
The PSU Andhra Bank (AB) recorded a growth of 29.47 per cent in its net profit during Q3 end December last at Rs 275-crore as against Rs 213-crore during the corresponding period last year.

Announcing the Q3 results, Anil Girolra, Executive Director of AB said here today that the over all performance of the bank was exellent in all fronts.

He said net profit of Andhra Bank zoomed to Rs 806-crore for the nine months period from Rs 452-crore of the corresponding period last year, with a growth of 78.32 per cent.

Total business touched Rs 1,17,899-crore, up by 23.04 per cent with deposits at Rs 66,547-core clocking a growth of 23.70 per cent and acvances reaching Rs 51,352-crore with a growth of 22.19 per cent. Credit Deposit ratio stood at 77.47 per cent, Girolra said, adding that bank expected to touch a business of Rs 1,30,000-crore by March next.

The Bank has opened 112 branches all over the country while it plans to open another 20 in the next two to three months the bank's ED added.

IDBI Bank announces repayment of IDBI SLR Bonds 2010 :

IDBI Bank said that the repayment of 11.50 per cent IDBI SLR Bonds 2010 56th Series will be paid on March 13, 2010.

No interest will accrue on the bonds after March 13, the bank said in a press release issued on Monday.

Book closure of the 56th Series will be observed with effect from February 13, after which no request for transfer will be entertained, the bank said.

Investors holding the bonds in the form of Promissory Notes should tender the bonds at the concerned branch of IDBI Bank before February 20 to facilitate repayment in time, the release said.

Investors, having investment in the form of 'Entry-in-Account’ with IDBI Bank should furnish a receipt in the prescribed form for the principal amount, along with the relevant certificate.

In case the bonds are held in demat form, bond-holders need not furnish any document. The bonds will automatically be debited and the redemption proceeds will be sent to the investors, the bank said.

ICICI Q3 net falls 13.4 per cent :

ICICI Bank, India's No.2 lender, reported a smaller-than-expected 13.4 per cent drop in quarterly net profit, as demand for retail loans helped offset the impact of a drop in treasury income.

ICICI said its October-December net profit fell to Rs 11.01 billion ($239 million) from Rs 12.72 billion a year earlier. A Reuters poll of analysts had forecast net profit of Rs 10.55 billion.

Indian banks were mostly insulated from the direct impact of the global credit crisis, but the world downturn hit the country harder than expected leading to a sharp slowdown in credit growth in the current financial year.

Demand for credit is expected to pick up in the near future, as improving business and consumer confidence brings back corporate, housing, auto and retail demand in Asia's third-largest economy.

Shares in ICICI Bank, valued at $21 billion, fell 3 per cent in October-December, lagging a small gain in the sector index.

Rel Capital to sell up to 20% stake in MF arm :

Anil Ambani Group's financial services firm Reliance Capital is considering divesting up to 20 per cent stake in its mutual fund arm, Reliance Asset Management Company, to an overseas strategic partner.

Induction of global partner would help Reliance Asset Management Company to expand its reach and help improve product, technology and process, sources said.

Reliance Capital holds 93.37 per cent in Reliance Asset Management Company, the largest mutual fund house with asset under management over 1.18 lakh crore.

When contacted, Reliance Capital spokesperson said, "As a policy, we do not comment on speculations."

In 2007, Reliance Capital sold 5 per cent stake to global investor Eton Park for Rs 501 crore, at an equity valuation of Rs 10,000 crore. Eton Park Capital Management is a hedge fund founded by former Goldman Sachs partner Eric Mindich.

The investment valued the asset management firm at about 13 per cent of its assets under management and the valuation translated into a price of Rs 400 per share of Reliance Capital.

The development assume significance in the light of UTI Asset Management Company entering into an agreement with the US-based T Rowe Price for selling 26 per cent stake to the foreign institutional investor.