CENTRAL BANK REPORTED NET LOSS 605.70 CR IN DEC QUARTER

Public sector Central Bank of India today reported a net loss of Rs 605.70 crore for the third quarter ended December 31, 2016, on persisting bad loans.

The bank trimmed its losses for the quarter against a Rs 836.62 crore loss it posted in the corresponding October- December quarter of the previous fiscal.

Total income has decreased to Rs 6,787.87 crore during the quarter against Rs 6,911.620 crore in the same quarter of the previous fiscal.

On asset quality, the bank's gross non performing assets (NPAs) grew to 14.14 per cent of gross advances during the December quarter, against 8.95 per cent in the year-ago period.

Net NPAs stood at 8.54 per cent of net advances, up from 5.30 per cent a year ago.

The provisioning for bad loans and contingencies was at Rs 1,486 crore during the quarter, slightly down from Rs 1,499.05 crore year ago.

Demonetisation: ED files 1st chargesheet involving Axis bank staff

The ED has filed its first charge sheet in money laundering cases resulting from demonetisation against officials of an Axis bank branch here and others for alleged illegal conversion of scrapped currency notes.

The agency filed the charge sheet, called prosecution complaint in the Enforcement Directorate (ED) parlance, before a special Prevention of Money Laundering Act court here yesterday.

The agency has named two bank officials, working at the Kashmere Gate branch here, Vineet Gupta (Branch head) and Shobhit Sinha (Operations head) who with “active connivance” of a private person Rajeev S Kushwaha deposited “huge amount of demonetised currency to the tune of Rs 40 crore of various firms and companies run by Kushwaha for a huge commission and converted it into monetised form like RTGS transfers and gold.”

The case was first detected by Delhi Police after it intercepted three persons with about Rs 3.7 crore cash in old notes in front of the Axis Bank branch in November last year. The ED took cognisance of the police FIR and slapped money laundering charges against the accused.

The trio was arrested by it in December last year under PMLA and are currently in judicial custody.

Detailing their modus operandi, the agency said, the trio used to “deposit money after banking hours at around 6:00 PM The money deposited in these accounts was transferred to different accounts within minutes to different companies through Real Time Gross Settlement (RTGS). No Suspicious Transaction Reports (STRs) were filed by the bank officials and the depoits were made without authorisation, bypassing banking formalities.”

ED said, “It all started when following demonetisation (on November 8, 2016) people with illegal money began converting their old currency notes into gold/legal tender. These bullion traders wanted payments in RTGS/transfer of money through banking channel for the sale of gold as old currency was not accepted.

“Some of such elements contacted Kushwaha and his associates for this purpose. Kushwaha was having various fictitious companies/firms namely Ms Himalaya International, Ms RD Trader and Ms Beagle Marketing and Ms Sunrise Trading.”

The charge sheet further said: “They (Kushwaha and others) contacted Gupta and Sinha to get special facilities to put the old currency into the banking system through their fictitious/shell companies having current account in Kashmere Gate branch by offering huge commission.”

The charge sheet said, “Kushwaha and his associates collected old currency charging huge commission from various people and infused that money into the banking system and acted against the law.

“The amount so deposited in these companies’ account was transferred to various bullion traders for procurement of gold which was given to the person who had given them their illegal money in old currency,” it said.

The agency had also attached assets belonging to Gupta and others worth Rs 3.4 crore.

ED probe had also found that huge amount of money was transferred through RTGS to some shell companies including in a case where the Director of a firm was a “petty labourer” living in a slum in ‘Anna Nagar jhuggi’ camp in the national capital.

“It was also found that directors of other shell companies were also persons of no means,” the ED had said earlier.

Merger of weak PSU banks can be a possibility: UBI CEO

Merger of weak public sector banks cannot be ruled out in a run up to meet Basel III norms, a top bank official said today. “I think they (government) will be looking to two quarters, December 16 (Q3) and March 17 (Q4) and then a decision may be taken on merger of banks specially which are not doing well,” United Bank of India (UBI) Managing Director and CEO P K Bajaj said at a post-budget panel discussion organised by the Calcutta Chamber of Commerce.

However, he clarified that this has not yet been announced as of now and government was concentrating on merging associate banks of SBI with the parent.

Bajaj pointed out that Rs 10,000 crore each for FY2017-18 and FY2018-19 for recapitalisation of banks is not adequate given the stress in the banking system due to core sectors like steel, power, infrastructure and coal.

SOURCE FINANCIAL EXPRESS

INCOME TAX CHART FY 2017-2018

Bank of maharastra posted huge loss where as Vijaya bank jump in net profit cr in 3rd quater

 State-owned Bank of Maharashtra posted a net loss of Rs 182.51 crore for the third quarter ended December 31, 2016, on account of higher provisioning for bad loans.

The Pune-headquartered public sector lender had reported a net profit of Rs 89.06 crore in the October-December quarter of financial year 2015-16.

Total income of the bank stood at Rs 3,473.77 crore during the third quarter, down 0.06 per cent, from Rs 3,475.98 crore in year-ago period, it said in a BSE filing.

Its gross non-performing assets (NPAs) or bad loans soared further to 15.08 per cent of the gross advances as of December 2016, up from 7.97 per cent during the same period a year ago.

Net NPAs too rose to 10.67 per cent of the net advances for the quarter under review from 5.52 per cent a year ago.

Vijaya Bank zooms 20% on strong Q3 results
Vijaya Bank has locked in upper circuit of 20% at Rs 64, also its 52-week high on the BSE, after reported an over four-fold jump in net profit at Rs 230 crore for the quarter ended December 2016 (Q3FY17), due to higher other income. The state-owned bank had profit of Rs 53 crore in the same quarter year ago.

Net interest income (interest earned minus interest expended) increased by 22.7% at Rs 906 crore during quarter under review against Rs 738 crore in the corresponding quarter of previous fiscal. Other income jumped nearly three-fold to Rs 577 crore from Rs 209 crore over the previous year.

The bank’s assets quality improved on sequential basis with gross non-performing assets (NPAs) stood at 6.98% of gross advances, as on December 31, 2016 compared with 7.07% in the September 2016 quarter. The net NPAs stood at 4.74% against 5.10% in the preceding quarter.

The bank's gross non-performing assets (NPAs) rose to 6.98 percent as against 4.32 percent in the same quarter last fiscal.

Net NPAs rose to 4.74 percent in the quarter under review compared to 2.98 percent a year ago.

As a result, provision for bad loans have significantly increased to Rs 424.17 crore as against Rs 278.72 crore in the year-ago period.

New Income Tax Slabs for Year 2017-18: See below how govt cheated you!!!!!!!!

New Income Tax Slabs for Year 2017-18:

Income	Tax rate
Individual tax payers
Up to Rs 2,50,000	No tax
Rs 2,50,001 to Rs 5,00,000	5%
Rs 5,00,001 – 10,00,000	20%
More than Rs 10,00,000	30%
Senior citizens who are 60 years old and above but less than 80 years
Up to Rs 3,00,000	No tax
Rs 3,00,001 to Rs 5,00,000	10%
Rs 5,00,001 to Rs 10,00,000	20%
More than Rs 10,00,000	30%
Senior Citizens who are 80 years old and above
Up to Rs 5,00,000	No tax
Rs 5,00,001 to Rs 10,00,000	20%
More than Rs 10,00,000	30%
(Surcharge of 10 per cent on income of all individuals above Rs 50 lakh and less than Rs 1 crore and surcharge of 15 per cent on income above Rs 1 crore).

Earlier, there were three slabs — 10 per cent income tax for annual income between Rs 2.5 lakh and Rs 5 lakh, 20 per cent on annual income from Rs 5 lakh to Rs 10 lakh, and 30 per cent on income above Rs 10 lakh.

Tall claims !!
Income Tax slab rate reduced from
10% to 5% , For income upto Rs.500000!
Tax payer will be benefited by Rs.12500!

Is it true?

But, media / news papers does not highlight one change.
Yes, Tax rebate of Rs.5000 for income upto Rs.500000 available till last year is changed.
Now it is reduced to Rs.2500 and that too upto income of Rs.350000.

Giving benefit by one hand and take away the existing benefit by the other hand!
What an ideaji?

Pl. Read the examples compiled by me .
Those who are under income of Rs. 500000 are not benefited anything.

But, those who are having income of above Rs.500000 are fully benefitted by
Rs.12500.

source:Table and few data collected from indiabank kumar

PSBs don't have much to bank on

BL RESEARCH BUREAU:  

The change

Public sector banks that have seen no let up in asset quality pressure over the past year now have to fend for themselves, going by the measly Rs. 10,000 crore that the Centre has committed to infuse into these banks in 2017-18. Considering that the profit for all PSBs put together shrunk by 60 per cent in the first half of this fiscal, and more pain is expected in the coming quarters, the sum set aside by the Centre, will hardly meet their capital requirements. The silver lining though is that the Finance Minister has assured additional infusion where needed. In the 2015-16 Budget, the Centre had laid out a meagre Rs. 7,000 crore for capitalisation, which it revised during the latter part of the fiscal and infused an additional Rs.20,000 crore into PSBs, given the sharp increase in bad loans and their weak capital position.

The Budget has also offered only a modest tax concession on the bad loan provisioning. This will offer only a marginal relief to PSU Banks.

The background

In the last five years, the Centre has infused about Rs. 89,000 crore (2012-2017) into PSBs. But inspite of the Centre’s largesse, PSU banks have seen a consistent fall in earnings owing to weak credit growth, stressed margins and a sharp rise in bad loan provisioning. The overall loan growth for all PSU Banks put together was a meagre 4 per cent in 2015-16, even as the Centre infused around Rs. 20,000 crore during the year. Hence, the Centre’s infusion, has funded banks’ losses on account of rise in bad loan provisioning rather than growth. The trend is likely to continue as the loan growth for PSBs, in particular continues to slip.

The Centre has stuck to the Rs. 70,000 crore capital infusion between 2015-16 and 2018-19 proposed under the Indradhanush plan. But this is grossly inadequate, given the persisting concerns on asset quality and weak credit growth.

Bankers have been making a pitch for a 100 per cent deduction on bad debt provisioning. But the Finance Minister has only tinkered with the existing provisions to offer a small respite to banks. From the existing 7.5 per cent of income (essentially operating income after some adjustments), banks can now claim deduction on bad loan provisions upto 8.5 per cent of income.

The verdict

In the near term, banks such as UCO, Union Bank, Central Bank of India, IOB, Syndicate Bank, Dena, Bank of Maharashtra, IDBI Bank, United Bank and Allahabad Bank, may be impacted because of the Centre’s tight fistedness regarding capital infusion. These banks have relatively lower capital buffer and high stock of bad loans.

The increase in cap on claiming deduction on bad loan provisioning, will not offer significant relief to PSU banks’ earnings. For most of them bad loan provisioning formed 90 per cent to over 100 per cent of their operating profit in 2015-16. Hence they will only see a token relief.

source  The hindubusinessline