Canara Bank June quarter’s net profit goes up by 23.5%:
On Wednesday Canara Bank reported a 23.5 per cent rise in standalone net profit at Rs 406.24 crore for the first quarter of the financial year 2020-21. In the same quarter of the previous financial year, the bank logged a net profit of Rs 329.07. The Canara Bank, which merged Syndicate Bank into itself with effect from April 1, 2020, however, the bank stated that the earning figures are not comparable as these are related to standalone financials for the pre-merger period. Total income of bank in the first quarter of the financial year 2020-21 increased to Rs 20,685.91 crore from Rs 14,062.39 crore in the last financial year, the bank said in a regulatory filing. The bank also stated that the bank’s gross non-performing assets (NPAs) were up slightly at 8.84% of the gross advances as on June 30, 2020, as against 8.77% at June-end last financial year. In terms of numbers, total gross NPAs or bad loans stood at Rs 57,525.52 crore as against Rs 39,399.02 crore in the last financial year for the same period.
PNB declared its loan exposure to Reliance Home Finance account as fraud:
After the forensic audit proved that there was the diversion of funds in RHFL, Punjab National Bank (PNB) has declared its loan exposure to Reliance Home Finance Ltd (RHFL) as a “fraud account” and also communicated it to the Reserve Bank of India (RBI), three bankers aware of the development said. As on 3 July last year, PNB’s exposure to the RHFL was ₹80 crore. Punjab National Bank made the decision following a forensic audit report that highlighted some RHFL transactions with other companies in the same group, the bankers cited above said on condition of anonymity. Though Reliance Home Finance had informed stock exchanges on 12 January that the audit found no evidence of diversion of funds, the bankers said PNB still went ahead with the decision.
IDBI Bank launches specialised gold loan branches:
IDBI Bank has launched “IDBI Swarna Kalas” by remodelled its four existing branches at Neelamangalam and Sivaganga (both in Tamil Nadu), Vijaya Nagar (Bengaluru) and L.B. Nagar (Hyderabad) as specialised gold loan branches.
Rakesh Sharma, MD & CEO, said “We have witnessed a surge in the demand for the gold loan and have conceptualised “Swarna Kalash” as a premium offering. Our focus is on the creation of such specialised branches to cater to the demand in the market and facilitate easy access to our gold loan customers.” In a statement, the bank said that these branches will facilitate quick, transparent and hassle-free gold loan financing to our customers. They will also take steps to fulfil increasing credit demand in the Agriculture, Priority Sector Lending, and rural markets.