ICICI's Chanda Kochhar named most powerful Indian businesswoman

ICICI BankBSE -0.13 % MD and CEO Chanda Kochhar has been named as the most powerful businesswoman in India for the third consecutive year by Fortune Magazine. Shikha Sharma of Axis BankBSE -4.52 % and Aruna Jayanthi of Capgemini India have taken the second and third place in the Fortune list of 50 most powerful businesswomen ranking for 2013. Preetha Reddy, Managing Director of Apollo Hospital Enterprises, and Mallika Srinivasan, CEO of Tractors and Farm Equipment Limited (TAFE), have secured the fourth and fifth positions, respectively. "Whether it's heading the Indian operations of an energy multinational or the world's largest coffee chain, women are getting more visible in India Inc," the magazine said. ..Read more >> Click here

Private banks head for India's hinterland

Nazma , once a farm labourer , now runs a small business in Barabanki . She shows off her ATM card as she tells you how she pulled herself out of extreme poverty: "I do chikan work for large contractors in Lucknow . Thanks to a bank loan, I can earn Rs 3,000-4 ,000 a month. I have a bank account and also save some of my earnings," she says, a wide smile lighting up her face. In neighbouring Gothia village, Poonam Jaiswal, a housewife, runs her own beauty parlour and the earnings help her support her family . Across India's villages, banks are now fanning out to tap the banking needs of the poor, helping them run small business ventures and enlarging their own business portfolio. 

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How Chanda Kochhar saved ICICI Bank from being engulfed by Lehman bankruptcy

When ICICI BankBSE 1.07 % laid out its strategy for investors at a conference organised by Morgan Stanley in November 2007 in Singapore, the phrases often used were 'leadership position with demonstrated pricing power', 'leverage corporate relationships', and 'sustain leadership position in credit franchise'.

In September 2013, what investors heard from Chanda Kochhar, its chief executive, at an investor conference organised by broking firm Motilal OswalBSE -2.67 % in Mumbai were 'risk management', 'return on equity' and 'profitability'.

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Are ICICI's heady growth days under Chanda Kochhar over?

When ICICI BankBSE -0.72 % laid out its strategy for investors at a conference organised by Morgan Stanley in November 2007 in Singapore, the phrases often used were 'leadership position with demonstrated pricing power', 'leverage corporate relationships', and 'sustain leadership position in credit franchise'. 

In September 2013, what investors heard from Chanda Kochhar, its chief executive, at an investor conference organised by broking firm Motilal Oswal in Mumbai were 'risk management', 'return on equity' and 'profitability'. 

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Top private banks pip state-run rivals in opening new branches

The uncertain macro-economic environment has failed to discourage private sector banks from expanding their branch network in the country. In fact, except State Bank of India (SBI), large government-owned banks have opened less number of branches than ICICI Bank and HDFC Bank in the last five years. State-run banks, however, continue to top the list in terms of total number of branches.

Financial inclusion agenda coupled with growing business opportunities in non-metro centres have persuaded private lenders in increasing their branch count aggressively across the country. The introduction of low-cost branches has also encouraged network expansion. Consider this: India's largest private sector lender ICICI Bank's network increased by 1,838 branches between March, 2008 and March, 2013. HDFC Bank grew its branch count by 2,301 during this period. In comparison, state-run lenders like Punjab National Bank (PNB) and Bank of Baroda opened 1,610 and 1,483 new branches, respectively.

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India Inc CEOs reach out to 'rank and file' to tackle slowdown better

 At least twice a month, Chanda Kochhar, managing director and chief executive officer of ICICI BankBSE -0.30 %, the country's largest private lender, takes time out to engage with groups of 15-20 employees. The groups are made up of peers — a group of 15 general managers for instance or a group of 35 year olds. Whatever feedback she receives is carried back on a no-name basis.

"A leader should not sit in an ivory tower but be close to the reality on the ground...engaging with the teams is one of the most important ways of doing this," says Kochhar. And when the reality on the ground involves a crippling economic slowdown, CEOs can gain valuable insight by tapping those in the frontline.

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ICICI Bank to sell Mumbai's Prabhadevi property for 100 crore

 ICICI Bank is set to sell one of its residential buildings in central Mumbai'sPrabhadevi for about 100 crore, in line with the strategy of India's second-largest bank to offer its executives compensation for rent instead of accommodation as part of their annual package.  The bank has already identified a prospective buyer and the deal is likely to be concluded within two weeks, persons familiar with the matter told ET. 

The six-storey building, known as ICICI Apartments, is spread over nearly half an acre on Cadell Road, barely 100 metres from the seashore, and offers a clear view of the sea from the third floor upwards. An email query sent by ET to ICICI Bank did not elicit any response. 

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ICICI Bank to close two of its 11 branches in UK

ICICI Bank, the largest private sector lender in the country, is set to close a couple of its branches in the UK. The move follows the bank's decision to repatriate $100 million capital from its wholly-owned subsidiary ICICI Bank UK Plc. The subsidiary currently has 11 branches in the UK, and a branch each in Belgium and Germany.

ICICI Bank confirmed the development. "ICICI Bank is in the process of closing down two branches in the UK that cater to less than 2 per cent of the bank's retail customer base in that country. This move is in line with customers' preference to increasingly interact with the bank electronically, and, therefore, the move reflects the way customers do business with the bank," a spokesperson of the bank said in an e-mailed response.

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StanC is most profitable foreign bank in India

Standard Chartered Bank has regained its position as the most profitable foreign bank in the country, according to people familiar with the development. The British lender had slipped behind rivals Hongkong and Shanghai Banking Corporation (HSBC) and Citibank after its India profit declined in 2011-12.

But in 2012-13, higher interest income, tight cost control and relatively lower loan impairment charges allowed Standard Chartered Bank to report a 71 per cent rise in net profit of its India branches. The foreign lender’s profit after tax was Rs 2,960 crore during the financial year. Compared to this, India net profit of HSBC and Citibank were Rs 1,935 crore and Rs 2,718 crore, respectively. While Citibank’s profit rose 41 per cent, for HSBC.

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Plastic money gains acceptance in rural India

HDFC Bank offers credit cards in areas with population of less than 10,000

Plastic money is gaining acceptance in rural India. HDFC Bank, the second largest private lender in the country, has started offeringcredit cards even at its rural branches. Bank branches in areas with a population of up to 9,999 are classified as rural branches.

On an incremental basis, nearly 25 per cent of HDFC Bank’s credit cards are now sourced from rural and semi-urban markets even as 40 per cent of Indian population is believed to be in want of a bank account.

 The bank has started setting up point-of-sale (POS) terminals across merchant establishments in these geographies to encourage customers to use credit cards.

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UBS India giving pink slips post-banking exit, 50 to lose jobs

UBS India, the domestic franchise of Swiss banking major UBS Group which last month surrendered its banking licence, has started laying off around 50 people, who are affected by the decision.

When asked, a UBS spokesman said: “Around 50 redundancies (confined to the employees of the bank branch) are envisaged between now and the end of the second quarter of 2015.”

On the severance package being offered to the employees who are to lose jobs, the spokesman said today that “the group considers such information confidential.”

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ICICI Bank trains women staff in self-defence, ensures safe travel

Security for working women remains a concern in most cities across the country. Taking serious note of this, the country’s largest private sector lender, ICICI Bank, has initiated additional assistance and support to its women employees after working hours.

Last month, ICICI Bank implemented some measures for women by setting up a team to conduct self-defence training, monitoring their travel after working late and organising quick-reaction mobile vans to handle emergency situations.

Women constitute about 25-30 per cent of the bank’s workforce. At present, ICICI Bank has 17,000 women employees, including probationary officers.

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ICICI Bank: Healthy profits, hefty bonuses

In a turbulent year for banks, ICICI Bank expanded its retail loans by 25 per cent, boosted its low-cost deposits and managed a 3 per cent margin on lending for the first time ever. This helped the bank’s net profits jump by 29 per cent in 2012-13.

For this, its latest Annual Report shows, the top management has been well rewarded this year. Chanda Kochhar, Managing Director and CEO, received a bonus of Rs 1.8 crore, a good 38 per cent more than the previous year. This takes her overall compensation package to Rs 5 crore. N.S. Kannan, Executive Director and CFO, also received bonus of Rs 1.2 crore, also a similar increase. All whole-time directors took home higher bonuses.

SUBSIDIARIES

The other highlight  of  the year was the bank’s subsidiaries chipping in with better numbers. ICICI Bank has   arms   operating   in   life insurance,  genera l  insurance   and   mutual   fund businesses. It   also   has subsidiaries doing banking business in Canada, Russia and the UK .

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Banking services turn costly for the common man

Inflation has not spared the banking sector either. But it is the common man who is feeling the pinch as banks up the bill for services.

Banks are charging for looking up their accounts (savings or current) on the Internet as also for mobile banking. While some banks levy an annual fee on the debit card use, a few have increased charges for depositing cash and issue of demand draft. Without doubt, banking has now become a costly affair.

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M&M Finance opts out from banking foray

With merely a week remaining for applying for a bank licence, activity among aspirants has gained momentum with few more entities securing board approval for entering the sector.

Also, there was at least one serious aspirant which decided not to pursue due to the stringent norms.

The last date for applying for a bank licence is 1 July, 5.45pm, the central bank said adding that any applications submitted after the deadline and incomplete application will not be considered.

Commenting on the stipulation that cash reserve ratio and statutory requirement ratio to be maintained since inception though building up the low cost deposit portfolio will take time, M&M Finance said “this anomaly will impose an undue penalty on large asset financing NBFC.”

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SREI, Edelweiss to seek banking licences

Joining the list of banking aspirants, financial services firms SREI Infrastructure Finance and Edelweiss Financial today said they will apply to RBI for seeking bank licences.

The board of SREI Infrastructure Finance at its meeting today, has decided to submit an application to the RBI for obtaining a banking licence, the company said in a filing on the BSE.

Shares of the Kolkata-based company closed at Rs 25.20, down by 1.37 per cent on the BSE.

Edelweiss Financial in a separate filing said, the board has approved proposal for making an application to the RBI for a banking licence.

Shares of Edelweiss Financial closed flat at Rs 30.10 on the BSE.

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Durable rupee recovery appears unlikely ahead of 2014 general elections: Stanchart

Reform prospects are bleak ahead of the 2014 general elections, a report put out by Standard Chartered Bank to its research clients has said. This is even as quicker policy reforms are needed to substantially ease upside pressure on USD-INR.

In the absence of quicker policy reforms, investor jitters related to India are likely to increase given memories of the earlier policy analysis and its impact on growth, said the SCB research note.

SCB has forecast USD-INR at 60.5 at end December 2013 and 61 at end March 2014.

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No plan to trim saving deposit rate from 6 pc: Kotak Bank

Private sector lender Kotak Mahindra BankBSE -3.39 % is unlikely to reduce its savings bank deposit rate this fiscal, a top official said today. 

"We will maintain the 6 per cent rate for some time. We have no plans to change the rate this fiscal," president for consumer banking KVS Manian told reporters on the sidelines of a bank event here. 

He said the bank has more than doubled its savings account base over the last 18 months, ever since the Reserve Bank deregulated interest rates on the product helping it tap into the market with an aggressive offering. 

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Private banks score over public sector peers in 2012-13

Banking business in India grew 15 per cent in 2012-13 compared with 17.6 per cent in 2011-12 as real GDP growth decelerated from 6.2 per cent to 5 per cent.

The extent of corrosion in business growth can be appreciated if we consider the growth of the real economy and banking business in the preceding year. The business growth was as high as 25.7 per cent in 2010-11 when growth registered a sturdy 9.3 per cent. The numbers reinforce the notion that behaviour of the banking business mirrors the performance of the real economy

The deceleration in business growth in 2012-13, however, has not been uniform across the banking spectrum. Banks in India can be classified into two broad composite categories — public sector banks and private banks.

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29 Axis bank accounts hacked, Rs 13 lakh withdrawn from ATMs

A total of 29 Axis Bank accounts, including 12 operated by Mumbai policemen, have been hacked in the last two months and Rs 13 lakh withdrawn through ATMs inGreece, police said here today. 

Some of the policemen in the city had received SMS messages that cash has been withdrawn from their Axis bank accounts in euro currency, they said. 

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