Tuesday, 9 June 2015

RBL Bank is expanding in at a brisk pace

RBL Bank, a mid-sized lender, is a potential takeover target for some larger banks. Not surprising, considering that the bank has been turned around in the last four years by its Managing Director and CEO, Vishwavir Ahuja. "Many," says Ahuja, when asked whether any bank had approached RBL for a friendly merger.
Indeed, several old private-sector banks have been acquired in recent years. Unlike RBL (formerly Ratnakar Bank), the survival of most of them was at stake because of poor operating performance. Ahuja is confident of the future prospects of his bank. "There is no question of any merger," he says. Clearly, the bank, under a new management since June 2010, which includes foreign bankers, is aiming big.
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In the BT-KPMG study, RBL has emerged as a "Growth Winner" among mid-sized banks. It has a balance sheet size of Rs 18,198 crore and grew its deposits by 39 per cent and advances by 54 per cent in 2013/14. The three-year compound annual growth rate (CAGR) in deposits as well as advances is over 70 per cent. The fee income jumped 110 per cent in 2013/14. The number of branches has jumped from 80 in 2010 to close to 200 now. "We are very much in the interim phase in our long journey," says Ahuja.
The urge to merge
Several old private banks have merged with bigger banks but RBL plans to go it alone
RBL, under Ahuja, actually went and bought the credit card business of Royal Bank of Scotland in August 2013. In the last four years, Ahuja has revamped the top management, raised capital from marquee names, rebranded its identity as RBL, and launched Internet banking, among other business initiatives.RBL focused on small and medium enterprises when Ahuja took over. The total size of the loan book was just Rs 900 crore and the bank also had a negative return on equity (ROE) in 2010. Today, all its businesses have been expanding at a scorching pace, expanding anywhere between four and 10 times in the past four years. Its loan book is now about Rs 9,835 crore and it has an ROCE of 5.12 per cent.
"We want to be a mass-banking institution rather than an urban-centric bank," says Ahuja. The bank already has a presence in 13 states and will expand to 17 states next year and 20 states in 2016.
The next trigger for the bank's growth will come from its IPO, according to Ahuja. "We will raise a significant chunk of capital in the near future," he says. But there are challenges ahead. The big private banks, including HDFC Bank and ICICI Bank, are expanding into rural and semi-urban India, a thrust area for RBL. The Reserve Bank of India's new differentiated licensing mechanism will create new payment and small banks focused on rural and semi-urban centres. But Ahuja remains unfazed. "The competitive landscape will definitely change in the future, but there is enough space for everyone," he says.



Sandip Ginodia , Director
We deal in over 60 unlisted companies with 15 years of experience .
For latest prices visit : www.abhisheksecurities.com/unlisted.htm / call : 09830271248 .


RBL Bank Partners with CDC to Expand its Financial Literacy Program 'Saksham' in Madhya Pradesh

RBL Bank (formerly The Ratnakar Bank Ltd.) and CDC (the UK development finance institution) have announced a new financial literacy program that will be rolled out in Madhya Pradesh.


The new initiative, which builds on RBL Bank’s ‘Saksham’ program, will aim to increase financial inclusion (FI) by extending financial literacy to around 25,000 individuals and 300 villages in four districts of Madhya Pradesh during 2015. The programme, which will be designed and implemented by Accion India, will target rural areas where levels of education are low and levels of financial exclusion are high. In depth classroom-style training will be supplemented by a mass awareness campaign that will specifically cater for people with low literacy levels.

The umbrella financial literacy program ‘Saksham’ was launched by RBL Bank in December 2013 and through its partnerships has reached out to approximately 35,000 individuals from low-income communities in the States of Gujarat and Maharashtra.

RBL Bank currently serves over 700,000 individuals under various financial inclusion initiatives and offers products and services in over 6,000 villages across Maharashtra, Goa, Karnataka, Gujarat, Rajasthan, Madhya Pradesh and Tamil Nadu.


Sandip Ginodia , Director
We deal in over 60 unlisted companies with 15 years of experience .
For latest prices visit : www.abhisheksecurities.com/unlisted.htm / call : 09830271248 .






RBL Bank supports Happay in launching cards

Founded in 2012, Happay is a business expense management solution that streamlines an organization’s expense workflow. It is an end-to-end solution that take cares of expense management to reporting and gives real-time visibility and control over business spending. Anshul Rai and Varun Rathi, both from IIT Kharagpur (batch of 2010) are the brains behind happay and have been trying to crack a piece of the payments puzzle. The team has been at it for a couple of years and has now figured out a way forward with support from RBL Bank in launching the cards and funding from AngelPrime, a seed stage VC fund.

happay_founders














Sandip Ginodia , Director
We deal in over 60 unlisted companies with 15 years of experience .
For latest prices visit : www.abhisheksecurities.com/unlisted.htm / call : 09830271248 .


Monday, 8 June 2015

United India ties up with Catholic Syrian Bank to offer PM Suraksha Bima

United India Insurance Company Ltd has signed an MoU with Catholic Syrian Bank for the Prime Minister Suraksha Bima Yojana.
This is a personal accident insurance master policy covering all savings bank account holders of the bank between 18 and 70 years of age and declared for insurance coverage against death or permanent disability for ₹2 lakh.

Sandip Ginodia , Director
We deal in over 60 unlisted companies with 15 years of experience .
For latest prices visit : www.abhisheksecurities.com/unlisted.htm / call : 09830271248 .

Monsoon of unlisted PSU IPOs to hit India soon; 25 companies to sell shares for the first time

The government has drawn up a list of 25 state-owned companies that could sell shares to the public for the first time, possibly raising more than a third of India's record divestment target for the fiscal year.

They include profit-making arms of Coal India and ONGC that could help the government get around Rs 25,000 crore in total. Such a move could fire up the primary market besides giving government finances a big boost. The department of disinvestment has written to the administrative ministries.



"The idea is to create a pipeline for the next two-three years," the official said. This needs to be done as the government is close to the 51 per cent stake level in several listed stateowned companies, the person said. "So, the ideal situation is that we have approvals for stake sale in these firms and we can proceed depending on market conditions."
The unlisted firms may include ONGC Videsh, Southern Coalfields, Bharat Broadband, KIOCL and Mazagon Dock.

"While we can fast track stake sales in already listed firms through the offer for sale (OFS) mechanism, it is essential that all profitable CPSEs (central public sector enterprises) realise their true valuation through listing and further unlock their potential," the official said.
As per the Public Enterprise Survey 2013-14, India has 234 CPSEs, of which 46 are listed.

Some of the profitable ones, including subsidiaries, are South Eastern Coalfields, ONGC Videsh, Bharat Bhari Udyog Nigam, Antrix Corp. and various railway units.

In the case of subsidiaries, the amount raised by the listing will flow into the parent company, which in turn can offer better dividends to the government and increase capital expenditure.
 

"The idea is to create a pipeline for the next two-three years," the official said. This needs to be done as the government is close to the 51 per cent stake level in several listed stateowned companies, the person said. "So, the ideal situation is that we have approvals for stake sale in these firms and we can proceed depending on market conditions."


Sandip Ginodia , Director
We deal in over 60 unlisted companies with 15 years of experience .
For latest prices visit : www.abhisheksecurities.com/unlisted.htm / call : 09830271248 .
"The idea is to create a pipeline for the next two-three years," the official said. This needs to be done as the government is close to the 51 per cent stake level in several listed stateowned companies, the person said. "So, the ideal situation is that we have approvals for stake sale in these firms and we can proceed depending on market conditions."

The unlisted firms may include ONGC Videsh, Southern Coalfields, Bharat Broadband, KIOCL and Mazagon Dock.

"While we can fast t ..


"The idea is to create a pipeline for the next two-three years," the official said. This needs to be done as the government is close to the 51 per cent stake level in several listed stateowned companies, the person said. "So, the ideal situation is that we have approvals for stake sale in these firms and we can proceed depending on market conditions."

The unlisted firms may include ONGC Videsh, Southern Coalfields, Bharat Broadband, KIOCL and Mazagon Dock.

"While we can fast t ..

The government has drawn up a list of 25 state-owned companies that could sell shares to the public for the first time, possibly raising more than a third of India's record divestment target for the fiscal year.

They include profit-making arms of Coal India and ONGC that could help the government get around Rs 25,000 crore in total. Such a move could fire up the primary market besides giving government finances a big boost. The department of disinvestment has written to the administrati ..

The government has drawn up a list of 25 state-owned companies that could sell shares to the public for the first time, possibly raising more than a third of India's record divestment target for the fiscal year.

They include profit-making arms of Coal India and ONGC that could help the government get around Rs 25,000 crore in total. Such a move could fire up the primary market besides giving government finances a big boost. The department of disinvestment has written to the administrati ..

MSTC gets Odisha government's mandate to e-auction liquor licences

: "There are only two real ways to get ahead today, sell liquor or drink it." What American actor WC Fields probably said in the early nineties still holds true — at least for state-owned trading company MSTC Ltd. From auctioning scrap to selling liquor dealerships, the lesser known PSU has come a long way. In a first-of-its-kind move, MSTC has been approached by the Odisha government to e-auction the state's liquor licences.

So far, the state has been holding manual auctions for the dealerships. Thanks to the coal auctions, the miniratna company under the steel ministry is in demand, with none other than power and coal minister Piyush Goyal and Andhra Pradesh chief minister Chandrababu Naidu among its admirers.
"The coal minister, who is a chartered accountant himself, and tech savvy Chandrababu Naidu are very impressed with MSTC's work," said a company official. Other states including Rajasthan, Madhya Pradesh and Andhra Pradesh have approached MSTC for transparent sale of minerals.
Formed in 1964 as a small trading company with a capital of mere Rs 6 lakh, MSTC today deals in a wide range of items, including land, iron ore, tendu leaves, sandal and even human hair, grossing revenue of Rs 5,330 crore for the year ended March 2014. The company conducts e-auctions of human hair for the Tirupati Balaji temple in Andhra Pradesh. The temple earns Rs 200 crore annually from the auction against about Rs 35 crore earlier.
MSTC earned Rs 10 lakh as a fee for each coal block it sold through e-auction. It also manages the auction of re-gasified liquefied natural gas for the power ministry under its bailout scheme for gas-based power plants. With a staff strength of 300-odd people across India, the PSU develops separate trading portals for each kind of auction.
MSTC has become indispensable for stateowned power utility NTPC, which recently sold fly ash on its portal at four times the normal price. NTPC is likely to engage MSTC to conduct global bidding to find mine developers for coal blocks that were recently allocated to the generation company.
After the success of the first coal block auctions in the country in February this year, MSTC attracted many states as clients eager to do business with it. "Earlier, when we visited various states to get business, we were kept waiting before the official meeting but now the states are themselves approaching us to conduct auctions of various minerals, among other things," the official at MSTC said.
The company plans to ride the success wave and end the current financial year with a healthier bottom line, the official said. MSTC also plans to spread its wings to other territories, including power trading. It plans to venture into trading of electricity on the lines of power exchanges such as India Energy Exchange and Power Exchange of India. The dream, however, is in a very nascent stage.
auctions in the country in February this year, MSTC attracted many states as clients eager to do business with it. "Earlier, when we visited various states to get business, we were kept waiting before the official meeting but now the states are themselves approaching us to conduct auctions of various minerals, among other things," the official at MSTC said.

The company plans to ride the success wave and end the current financial year with a healthier bottom line, the official said. MSTC also plans to spread its wings to other territories, including power trading. It plans to venture into trading of electricity on the lines of power exchanges such as India Energy Exchange and Power Exchange of India. The dream, however, is in a very nascent stage.

Sandip Ginodia , Director
We deal in over 60 unlisted companies with 15 years of experience .
For latest prices visit : www.abhisheksecurities.com/unlisted.htm / call : 09830271248 .

Tamilnad Mercantile Bank standalone net profit rises 69.11% in the March 2015 quarter

Total Operating Income rise 6.00% to Rs 743.57 crore
Net profit of Tamilnad Mercantile Bank rose 69.11% to Rs 134.54 crore in the quarter ended March 2015 as against Rs 79.56 crore during the previous quarter ended March 2014. Total Operating Income rose 6.00% to Rs 743.57 crore in the quarter ended March 2015 as against Rs 701.46 crore during the previous quarter ended March 2014. For the full year,net profit rose 26.14% to Rs 379.40 crore in the year ended March 2015 as against Rs 300.77 crore during the previous year ended March 2014. Total Operating Income rose 4.92% to Rs 2835.53 crore in the year ended March 2015 as against Rs 2702.65 crore during the previous year ended March 2014.

Sandip Ginodia , Director
We deal in over 60 unlisted companies with 15 years of experience .
For latest prices visit : www.abhisheksecurities.com/unlisted.htm / call : 09830271248 .