Bank Employees News: madhya Pradesh

Showing posts with label madhya Pradesh. Show all posts

Saturday, 12 December 2015

RBI lets IDFC Bank into Second Schedule list

RBI lets IDFC Bank into Second Schedule list

The Reserve Bank today said IDFC Bank Ltd has been included in the Second Schedule of the RBI Act.

"We advise that the IDFC Bank Limited has been included in the Second Schedule of the Reserve Bank of India Act, 1934," RBI said in a notification.

Earlier, in October this year, IDFC Bank started its formal banking services with a total of 23 branches across the country.

Of these, as many as 15 branches are in rural Madhya Pradesh.

The bank, with a focus on technology, has started operations in corporate and wholesale banking, rural banking and treasury verticals.

As part of personal banking, the bank is offering free transactions at any bank ATMs, free fund transfers, free debit card for lifetime and no charges for any transactions except when cheques bounce.

Last year, IDFC, along with micro-lender Bandhan Financial Services, was selected for a banking licence.

Bandhan started operations in August with a network of over 500 branches.

Source:BankingUpdates

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Sunday, 8 November 2015

madhya Pradesh 14:52

Fact that public sector banks are going to be significantly capital-constrained in future -IDFC Bank Managing Director

Fact that public sector banks are going to be significantly capital-constrained in future -IDFC Bank Managing Director

IDFC Bank looks to cash in on capital-starved state-run banks

The newest private sector lender IDFC Bank hopes to fill the space being left by the inability of state-run banks to expand their balance sheet due to capital constraints, as it builds its retail franchise.

"The fact that public sector banks are going to be significantly capital-constrained in future, thanks to their legacy and asset problems, creates an opportunity for new private sector banks," IDFC Bank managing director and chief executive Rajiv Lall told PTI in an interview.

"So for us, starting from a small base but with strong capital, a strong management team and state-of-the-art technology, I believe it is very much possible to get a nice franchise over the next five years," Lall said.

Lall said the bank, which began operations on October 19 after getting an RBI licence in April 2014 by converting into a commercial bank from being an infra lender, will be focusing non-core income side to accrue capital which he hopes to pump back for rural play.

He noted that retail expansion, especially into rural areas, will take some time as it needs to shore up capital.

Lall also said out of the 23 branches opened so far, 15 are in rural areas of Madhya Pradesh.

"While we build on our existing historical strengths, we will be diversifying the revenue base from existing customers, and serve them much wider products, and build our non-interest income base.. these will be the engines that will drive IDFC Bank," Lall said.

He further said the bank will use the capital accrued from these verticals to drive rural expansion. "We will re-invest some profits generated from wholesale and commercial banking into building our rural franchise and a personal and business banking franchise," he added.

Lall said rural franchise is very important not only for meeting PSL targets but also for getting opportunity to build a profitable business in a segment that has not seen much competition.

Stating that personal and business banking will be a marathon, Lall said this stream of banking will be focused on top 50 centres as 80 per cent of corporate and household savings sit on these 50 centres.

The bank was listed on Friday at Rs 70.50 and closed at Rs 70.70 on the BSE. On this he said it shows that the market has understood the basis on which the demerger was undertaken.

On the asset quality, he said there is no worry on the bank as they have already provided for the next five year, going out of their way to clean up the book.

"We've effectively taken very deep provisions against our legacy portfolio. Our belief is that for next four-five years we will not need to provide anything more against the legacy portfolio," he said.

On the just reforms in the power distribution arena, Lall said though the bank and its parent have no direct exposure to discoms, the bailout package will "help improve operations of discoms which in turn will help the power sector, where it has huge exposure, and therefore the reforms will help our portfolio."

He further said advantage of the reforms of discoms "could be that if these reforms take off we will be writing back some of the provisions we made as this will only strengthen our legacy portfolio and the ability to extract more value than we have provided."

On the proposed bankruptcy laws, he said the new legal provisions will hasten recovery related to asset quality problems. It will also help banks prepare for the next cycle (of bad assets) as and when that happens.

When asked about the performance of the bank since the launch, Lall said he is very pleased that their complex technology platform is working very well.

Source:dnaindia

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Friday, 25 September 2015

SME 09:20

IDFC Bank targets 15 million customers in five years

IDFC Bank targets 15 million customers in five years

New private sector lender IDFC Bank will flag off its operations on October 1, with 23 branches for corporate and rural customers. Starting with a predominant share of corporate banking business, IDFC's banking subsidiary expects to grow the business of Bharat banking, a rural banking unit, to Rs 15,000 crore in five years.

Its personal and business banking unit focusing on retail, small and medium enterprises (SMEs) and self-employed professionals, will start operations, in January 2016. Rajiv Lall, the bank's executive vice-chairman and managing director, said the aim is to grow the client base from the current 400 corporate customers to 15 million in the next five years, a bulk of whom will come from business and personal banking and Bharat banking. Bandhan Bank, which got a banking licence around the same time as IDFC, started operations in August.

IDFC Bank is aiming at 10-15 per cent net profit growth and will rely on technology for customer acquisition rather than open branches across India. IDFC Ltd posted a net profit of Rs 240.88 crore for the June quarter this year.

Lall said the economy was coming out of a very difficult period after the global financial crisis and amid stress on bank balance sheets. Over the last year, the economic environment in India has seen steady improvement and the bank would like to gain from this momentum.

The bank will have a balance sheet of Rs 75,000-80,000 crore initially. Out of this the loan book, mostly infrastructure advances, will be in the region of Rs 55,000 crore and the balance will comprise bonds, corporate bonds and investments. It will be compliant with the statutory liquidity ratio and cash reserve ratio norms from day one, he added.

Commercial and wholesale banking, headed by Ajay Mahajan, will have an overbearing share in the loan book as well as bottom-line contribution. "We were offering term loans till date as infra lender. Now as a bank, we will be in position to give working capital, guarantees and letters of credit. Five years down the line, the bank expects the corporate segment to have two-thirds share in the loan book," Lall said.

The business will have three clusters - corporate, treasury services and government business. It expects the government business to ensure a steady flow of fee income and float money.

Bharat banking, backed by strong technology as well as brick and mortar banking, will start with 15 branches in Madhya Pradesh. Though this is a thrust area, its share in loan book is expected to be small. The emphasis would be on reaching the maximum number of customers with less investment on physical infrastructure.

Personal and business banking will be the last to start operations as the bank will first like to fine-tune its technical and service backbone. This business will start from January 2016 and would aggressively reach out to self-employed middle class professionals like architects, wedding planners and caterers. They generally create the maximum job opportunities, Lall said.

Lall said feedback surveys done by the bank in the run-up to the launch showed "no one likes bankers as there is a widespread perception that bankers are product pushers and less of solution providers". This is where IDFC Bank will like to stand out in services and offering, Lall said.

Source :Business Standard.

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