Bank of Baroda becomes a registered bank in New Zealand

Wellington, Sep. 1 (ANI): The Reserve Bank of New Zealand has given permission to the Bank of Baroda to begin trading in the country, making it the nation’s 19th registered bank.

India’s third-largest public sector bank first indicated a desire to enter New Zealand when then-chairman Anil Kumar Khandelwel visited the country in 2007, stuff.co.nz reports.

The Mumbai-based lender’s registration was confirmed by the central bank on Monday.

Bank of Baroda may open its first branch in Auckland’s Mt Roskill, according to reports.

The bank’s local operation, which are is expected to begin near the end of the year, is going to target all ethnic communities, not only Indian residents.

Bank of Baroda is in some 70 countries, including offices in Australia and Fiji, and is looking to continue expanding its international operations with a joint venture to open a banking company in Malaysia, according to its latest earnings report.

Overseas business contributed some 23 percent to the bank’s operating profit.

The parent company boosted its net profit some 85 percent in the three months ended June 30 from the same period a year earlier. (ANI)

German government to take over HRE by way of equity issue

Munich – Germany’s government has told Hypo Real Estate (HRE), the biggest German casualty of the world financial crash, that it will obtain 90-per-cent control of the bank by way of an equity issue.

HRE disclosed the move in a board statement Friday from its head office in Munich.

Berlin would ask the shareholders at a meeting on June 2 to vote for an increase in equity from just under 700 million euros (925 million dollars) at present to 6.3 billion euros, with the German state pumping in all the new funds.

The equity issue would sharply dilute the stakes of the existing shareholders, leaving them with less than a tenth of voting stock.

The new equity would be held by SoFFin, the government agency charged with helping German banks via guarantees and equity infusions.

SoFFin disclosed earlier in Frankfurt that a government takeover offer for HRE of 1.39 euros per share had made little progress.

Only 1.28 per cent of shares had been acquired as of Thusrday afternoon, SoFFin said. That brought Berlin’s present stake to 9.94 per cent. US investor JC Flowers has been dismissive towards the bid.

The HRE supervisory and executive boards advised shareholders Friday to accept the takeover bid for their shares. That offer expires on May 4. HRE stock rose 1.4 per cent in stock-market trading Friday to 1.41 euros.

Last month, Germany legislated compulsory purchase powers in case the shareholders do not accept the takeover bid.

HRE’s problems arose at its Depfa Bank unit, which operated from largely deregulated Dublin. Depfa is a principal lender to German local government, raising bond issues for roads and new buildings.

The government has so far given the bank support worth 102 billion euros.(dpa)

HK shares expected to drop with banks seen hard-hit

HONG KONG, April 21 (Reuters) – Hong Kong shares are expected
to drop on Tuesday amid a global sell-down in banking stocks
after Bank of America (BAC.N) raised concerns about credit
quality deterioration.

The stock plunged more than 24 percent on Monday despite
reporting a rise in profit for the first quarter as its chief
executive warned the bad credit environment was getting worse.

American depository receipts (ADRs) in Hong kong-listed
companies joined the slump on Wall Street overnight with global
lender HSBC (HBC.N) (0005.HK) sliding 7.7 percent, while China
Mobile (CHL.N) (0941.HK), which reported a 5.2 percent increase
in its first quarter net profit on Monday, sank 4.5 percent.

The benchmark Hang Seng Index .HSI closed 1 percent higher
at 15,750.91 on Monday as Chinese stocks led the charge on
expectations of improved corporate earnings in 2009

STOCKS TO WATCH-

* Enric Energy Equipment Holdings (3899.HK), which had
previously made a takeover offer with CIMC Hong Kong for Target
Co China, has reduced its offer for Target Co China to HK$3 per
share from HK$4.49 per share, citing market conditions and
economic environment. For statement please click
here

* China National Resources Development Holdings (0661.HK) on
Tuesday said it had discovered 400,000 tonnes of copper reserves
in its mine in Xinjiang and 500,000 tonnes in the northern and
southern copper belts. For statement please click
here

* Chinese property developer Beijing North Star (0588.HK)
said its first-quarter net profit rose to 171.3 million yuan,
compared with 84.5 million yuan a year earlier. For statement
please click
here

* Xinjiang Xinxin Mining Industry Co (3833.HK) said it had
agreed to acquire a 57 percent equity interest in Zhongxin Mining
for 33.1 million yuan from Xinjiang Investment and Development
(Group) Co . For statement please click
here
———————-MARKET SNAPSHOT @ 2247 GMT ————

INSTRUMENT LAST PCT CHG NET CHG
S and P 500 .SPX 832.39 -4.28% -37.210
USD/JPY JPY 98.04 0.08% 0.080
10-YR US TSY YLD US10YT 2.8562 — 0.000
SPOT GOLD XAU 884.05 -0.01% -0.100
US CRUDE CLc1 45.8 -0.17% -0.080
DOW JONES .DJI 7841.73 -3.56% -289.60
ASIA ADRS .BKAS 95.58 -4.00% -3.98
————————————————————-

MARKETS SUMMARY
*Wall St sinks on banks’ woes; IBM drops late [nN20421816]
*Oil drops over 8 pct on economic outlook, dollar [nSYD428032]
*Increased anxiety lifts dollar, euro slumps on ECB [nN20408601]
*Treasuries rally as bank fears clobber Wall Street [nN20563843]

(Reporting by Parvathy Ullatil; Editing by Chris Lewis)

ICICI Bank looking strong at current levels: Nirmal Bang

In its latest research report, Nirmal Bang, an equity research firm said that ICICI Bank, which presently stuck in a band of 405-445, can give good returns within 4-5 trading session.

The report further stated that, if the counter is successful to breach 445, then it will create a huge breakout.

Nirmal Bang Research has advised its clients to hold the scrip with a target price of Rs 460-485.

In addition, the firm has suggested a support level for the scrip between Rs 421-405 and resistance level at Rs 445. Apart from Nirmal Bang, Vibhav Kapoor of IL and FS Investmart also believes that, ICICI Bank is still looking cheap as compared to the rest of the stocks in the sector. He stated during a recommendation call that the banking sector had a very good run up in the past few weeks and has outperformed the market as a whole. But even at current levels ICICI Bank is good for the medium-term and longer-term investors. Mr. Kapoor believes that the counter is still cheap considering the market share of ICICI.

ICICI Bank, Country’s second largest lender, is a financial conglomerate with multiple lines of businesses, domestic and overseas.

Today, ICICI Bank stock opened at Rs 441, after the previous close of Rs 441.45 at BSE. Presently (1:52 pm), the stock is trading 440 on BSE.

Nikkei dips 0.4 percent as techs fall

TOKYO (Reuters) – Japan’s Nikkei average fell 0.4 percent on Monday, weighed down by Toshiba Corp’s (6502.T) tumble after a report on its plans to raise capital, while a stronger yen hurt shares in exporters.

Consumer lender Promise (8574.T) tumbled 16.2 percent to 1,310 yen after warning it faces an annual net loss of $1.3 billion as it sets aside more money to meet repayment claims from customers.

Despite upbeat results from banks such as Citigroup (C.N), Japanese banking shares fell. A top adviser to President Barack Obama said on Sunday that stress tests of the top 19 U.S. banks would expose some “very serious problems” but the administration has what it needs to confront the challenge.

“Investors can’t cheer U.S. bank earnings without qualms because although their profits from core operations appear to be improving, the issue of bad assets still remains,” said Takahiko Murai, general manager at Nozomi Securities.

“Ahead of U.S. banks’ earnings peak this week, investors are cautious and taking a wait-and-see stance.”

U.S. banks, which began reporting earnings last week, will continue to be in the spotlight, with results including Bank of America (BAC.N), Wells Fargo (WFC.N) and Bank of New York Mellon (BK.N).

The benchmark Nikkei .N225 slipped 37.07 points to 8,870.51. It had climbed 1.7 percent on Friday but lost 0.6 percent on the week, snapping a five-week rising streak.

The broader Topix .TOPIX inched down 0.3 percent to 843.20.

The Dow Jones industrial average .DJI finished up 0.1 percent on Friday, after General Electric (GE.N) and Citigroup (C.N) both posted better-than-expected results, lifting the broader market. .N

The Dow rose 22.7 percent over the past six weeks, making advances each week for the largest six-week gain since July 29, 1938.

Toshiba shares fell 6 percent to 312 yen after a newspaper said it plans to raise about 500 billion yen ($5 billion) in capital as early as June to prop up its finances, battered by loss-making chip operations and tax credit costs.

On Friday it widened its net loss estimate for the year ended March 31 by 25 percent to 350 billion yen after writing down 85 billion yen in deferred tax assets, cutting its shareholders’ equity ratio by more than half from a year ago to 8.2 percent.

Japan’s top lender Mitsubishi UFJ Financial Group (8306.T) fell 1.8 percent to 503 yen.

Advantest, the world’s biggest maker of semiconductor testers, declined 0.7 percent to 1,585 yen, Tokyo Electron Ltd (8035.T) fell 0.5 percent to 4,270 yen and Nikon Corp (7731.T) slid 2.8 percent to 1,290 yen.

The book-to-bill ratio for Japanese chip-making equipment hit a record low in March, an industry group said on Friday, as chip makers continued to cut spending as demand for electronics goods stayed weak.

Investors fret over a firmer yen as it curbs exporter profits when repatriated. In early Asia trade, the euro struck a three-week trough versus the yen.

(Reporting by Aiko Hayashi; Editing by Michael Watson)

Nikkei dips 0.4 pct as techs fall, Toshiba sinks

Toshiba tumbles on capital raising report

* Chip-related stocks fall after March orders drop

* Investors cautious ahead of U.S. bank results

TOKYO, April 20 (Reuters) – Japan’s Nikkei average fell 0.4 percent on Monday, weighed down by Toshiba Corp’s (6502.T) tumble after a report on its plans to raise capital, while a stronger yen hurt shares in exporters.

Consumer lender Promise (8574.T) tumbled 16.2 percent to 1,310 yen after warning it faces an annual net loss of $1.3 billion as it sets aside more money to meet repayment claims from customers. [ID:nT315789]

Despite upbeat results from banks such as Citigroup (C.N), Japanese banking shares fell. A top adviser to President Barack Obama said on Sunday that stress tests of the top 19 U.S. banks would expose some “very serious problems” but the administration has what it needs to confront the challenge. [ID:nN19520750]

“Investors can’t cheer U.S. bank earnings without qualms because although their profits from core operations appear to be improving, the issue of bad assets still remains,” said Takahiko Murai, general manager at Nozomi Securities.

“Ahead of U.S. banks’ earnings peak this week, investors are cautious and taking a wait-and-see stance.”

U.S. banks, which began reporting earnings last week, will continue to be in the spotlight, with results including Bank of America (BAC.N), Wells Fargo (WFC.N) and Bank of New York Mellon (BK.N).

The benchmark Nikkei .N225 slipped 37.07 points to 8,870.51. It had climbed 1.7 percent on Friday but lost 0.6 percent on the week, snapping a five-week rising streak.

The broader Topix .TOPIX inched down 0.3 percent to 843.20.

The Dow Jones industrial average .DJI finished up 0.1 percent on Friday, after General Electric (GE.N) and Citigroup (C.N) both posted better-than-expected results, lifting the broader market. [.N]

The Dow rose 22.7 percent over the past six weeks, making advances each week for the largest six-week gain since July 29, 1938.

Toshiba shares fell 6 percent to 312 yen after a newspaper said it plans to raise about 500 billion yen ($5 billion) in capital as early as June to prop up its finances, battered by loss-making chip operations and tax credit costs. [ID:nT353559]

On Friday it widened its net loss estimate for the year ended March 31 by 25 percent to 350 billion yen after writing down 85 billion yen in deferred tax assets, cutting its shareholders’ equity ratio by more than half from a year ago to 8.2 percent. [ID:nT308309]

Japan’s top lender Mitsubishi UFJ Financial Group (8306.T) fell 1.8 percent to 503 yen.

Advantest, the world’s biggest maker of semiconductor testers, declined 0.7 percent to 1,585 yen, Tokyo Electron Ltd (8035.T) fell 0.5 percent to 4,270 yen and Nikon Corp (7731.T) slid 2.8 percent to 1,290 yen.

The book-to-bill ratio for Japanese chip-making equipment hit a record low in March, an industry group said on Friday, as chip makers continued to cut spending as demand for electronics goods stayed weak. [ID:nT171380]

Investors fret over a firmer yen as it curbs exporter profits when repatriated. In early Asia trade, the euro struck a three-week trough versus the yen. (Reporting by Aiko Hayashi; Editing by Michael Watson)

UPDATE 1-Vietnam’s ACB sees 2009 gross profit up 5.5 pct

HANOI, April 20 (Reuters) – Vietnam’s fifth-largest lender, Asia Commercial Bank ACB.HN, said it expected gross profit this year to rise 5.5 percent to 2.7 trillion dong ($152 million).

The Ho Chi Minh City-based bank forecast loans would rise 87 percent to 65 trillion dong this year from 34.83 trillion in 2008, and its assets would jump 61 percent to 170 trillion dong.

It gave the figures after a shareholders’ meeting on Saturday.

ACB’s projected credit growth is far higher than the central bank’s target for credit growth this year of 21-23 percent, similar to last year’s 21-22 percent. [ID:nHAN434363]

Shareholders have also approved the establishment of ACB Financial Co and ACB Gold Trading Co, part of the bank’s plan to become one of Vietnam’s leading financial groups by 2015, the lender said in a statement.

Shares in ACB, 15 percent owned by Standard Chartered Plc (STAN.L), were down 2,100 dong at 37,600 dong at 0211 GMT on Monday.

ACB said last week its first-quarter gross profit fell 10.2 percent from the same period last year. ($1=17,780 dong) (Reporting by Ho Binh Minh; Editing by Alan Raybould)

Thai Hot Stocks-Index at 14-week high, steel makers firm

BANGKOK, April 20 (Reuters) – Thailand’s benchmark stock
index .SETI was up 2.76 percent at 469.41, its highest since
Jan. 7, at midsession on Monday, buoyed by buying of energy
.SETEN and petrochemical shares .SETPT despite recent
political violence.

“With the political situation temporarily defused and
commodity prices stabilising, we recommend investors to
overweight commodity plays,” Kim Eng Securities said in a
research note.

Stocks on the move included:

STEEL MAKERS UP ON HOPES OF MEGA PROJECTS

Top hot-rolled steel coil maker Sahaviriya Steel Industries
SSI.BK jumped 13 percent to 0.43 baht, Bangsaphan Barmill
BSBM.BK rose 7.4 percent to 1.02 baht and Tata Steel
(Thailand) TSTH.BK, the largest steel bar maker, surged 13.3
percent to 1.11 baht.

Investors were positive on the steel firms in the short
term due to hopes that the government would continue the
construction of mass transit projects in Bangkok, analysts
said.

0529 GMT

BANK OF AYUDHYA (BAY.BK) OUTPERFORMS SECTOR

The country’s fifth biggest lender surged nearly 6.0
percent to 9.75 baht, its highest since Jan. 9, after
Thailand’s TRIS Rating upgraded the bank’s rating to “AA-” from
“A+”. The rating reflected the bank’s improved financial
performance, improved asset quality and growing franchise
value.

0532 GMT

KASIKORNBANK KBAN.BK UP ON BETTER-THAN-FORECAST Q1

Thailand’s fourth-largest lender rose 1.04 percent to 48.75
baht after it reported a 14 percent drop in quarterly net
profit due to falling income because of slowing loan demand and
softer margins, although the profit was higher than expected.
[nBAK000730]

However, the stock underperformed the banking subindex
.SETB which rose 1.55 percent.

0319 GMT

PTT AROMATICS AND REFINERY (PTTAR.BK) EXTENDS GAINS

Thailand’s largest olefins maker rose 1.55 percent to 13
baht, having hit a six-month high of 13.20 baht in early trade.

The company said it had completed upgrading its production
capacity to increase jet fuel and diesel capacity. [nBKK449846]

0325 GMT

– For the Thai press digest click on [PRESS/TH]

– For Thailand’s IPO diary click on

– For Thailand’s stock exchange news click on [TH-SET]

– For Thailand corporate earnings: [TH-RES-RTRS]

– For Thailand economic forecast: [POLL-ECI-TH-RTRS]
($1=35.43 Baht)
(Reporting by Arada Therdthammakun; Editing by Alan Raybould)

Folsom Lake Bank Tops $71 Million in Assets With 3/31/09 Financial Results

FOLSOM, Calif., April 16 /PRNewswire-FirstCall/ — Folsom Lake Bank (OTC
Bulletin Board: FOLB), announced unaudited financial results for the quarter
ending March 31, 2009, its second full year of operations. Total assets grew
to $71.2 million, an increase of $33.2 million or 87% over the 1st quarter of
2008. Assets were up $10.7 million or 17% over the prior quarter ending
12/31/08. Total deposits grew to $55.2 million, increasing $11.4 million (26%)
for the quarter and $31.4 million (132%) compared to the prior year. Total
loans outstanding as of March 31, 2009 were $42.8 million, up $4.8 million
(13%) for the quarter and $20.1 million (88%) compared to the prior year.

Robert J. Flautt, President and CEO commented, “We are pleased with the
continued strong growth this past quarter and look forward to additional
growth as we add our second branch in Roseville later this year.” The new
branch on Douglas Blvd is expected to open early July.

First quarter revenue for the Bank was $946,107 up $417,326 or 79% from the
first quarter of 2008 attributable to a strong increase in fee income and a
healthy net interest margin. The Bank reported a net loss of $461,803 for the
quarter, larger than the previous year’s $366,564 loss due to a higher
provision for the loan loss reserve. Operating losses are normal for a startup
bank and the Bank continues to march toward a profitable operation. Excluding
the provisions from both quarters the 3/31/09 loss would be $161,803 and the
3/31/08 loss would be $291,564, an improvement of $129,761 or 44.5%.

The Bank made a special provision of $300,000 in the first quarter to the
allowance for loan losses, to enhance its reserve in these unique economic
times. The Bank also experienced its first loss on a small commercial loan.
The net result was an increase in the loan loss reserve to 1.44% of loans from
the previous year’s 1.17%. Commented Flautt, “We are not unaffected by the
economic downturn, however our loan portfolio remains strong with no past due
or non-accrual loans. We remain an active lender in the community and look
forward to a continued growth in our loan portfolio.”

Folsom Lake Bank is the area’s newest community bank. The Bank is a locally
owned and locally operated full service commercial banking organization
focused on small business owners, professionals and individuals in the
communities surrounding Folsom Lake. By providing the personal attention that
clients want and delivering banking services that they need, the bank
continues to build strong banking relationships across the communities that it
serves. Folsom Lake Bank is publicly traded on the Over-the-Counter Bulletin
Board. Howe Barnes Hoefer and Arnett (John Cavender 415-538-5725) is the primary
market maker. For more information please call Robert Flautt at 916-235-4570.

This correspondence may contain “forward-looking statements” within the
meaning of Section 27A of the Securities Act. All of the statements contained
in this correspondence, other than statements of historical fact, should be
considered forward-looking statements. Although the Bank believes the
expectations reflected in those forward-looking statements are reasonable, it
can give no assurance that those expectations will prove to have been correct.
Investors are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date hereof and are not intended to
give any assurance as to future results.

SOURCE Folsom Lake Bank

Bob Flautt, CEO, +1-916-235-4570, or Jack Olson, CFO, +1-916-235-4600, both of
Folsom Lake Bank

Nikkei gains 1.7 pct as banks, high-techs lead

Banks climb amid growing hope US lenders stabilising

* High-tech exporters up on industry hopes after Google, Nokia

* Nippon Steel surges on smaller-than-expected price cut

TOKYO, April 17 (Reuters) – Japan’s Nikkei average rose 1.7 percent on Friday as financial stocks such as Mitsubishi UFJ Financial Group (8306.T) climbed after reassuring earnings results from JPMorgan (JPM.N) fuelled hopes that the banking sector is stabilising.

Sony Corp (6758.T) and other high-tech shares gained after Google Inc’s (GOOG.O) quarterly profit topped expectations, while the world’s top cellphone maker Nokia (NOK1V.HE) said it saw signs of stabilising demand in the handset market. [ID:nN16272680] [ID:nLG183354]

Nippon Steel Corp (5401.T) surged after a newspaper said the steelmaker and its peers had agreed with Toyota Motor Corp (7203.T) to cut steel prices by more than 10 percent this business year, a smaller-than-expected price cut. [ID:nT286976]

“Investors are beginning to harbour hopes that the high-tech industry may be bottoming out. Although demand hasn’t exactly turned positive, there are signs that contractions are slowing,” said Takahiko Murai, general manager at Nozomi Securities.

“At least until the announcement of the results of (bank) ‘stress tests’ on May 4, the market probably won’t sell off bank shares. Also, considering what we have seen so far about U.S. banks earnings, the market doesn’t expect Citigroup to post surprisingly bad figures.”

Citigroup (C.N) is due to post quarterly results on Friday.

A U.S. Federal Reserve official said on Thursday that results of “stress tests” designed to see how the 19 largest U.S. banks would fare should the recession prove unexpectedly severe, would be made public on May 4. [ID:nN16267186]

The benchmark Nikkei .N225 climbed 146.70 points to 8,901.96, while the broader Topix .TOPIX added 1.5 percent to 844.53.

On Wall Street on Thursday, the Standard and Poor’s 500 Index .SPX climbed 1.6 percent after JPMorgan’s results beat analysts’ expectations as debt trading and underwriting revenue surged. [ID:nN16542451]

That added to a string of encouraging results from other banks, including Wells Fargo’s (WFC.N) strong preliminary figures last week.

Japan’s banking shares gained, with top lender Mitsubishi UFJ advancing 2 percent to 515 yen and No.2 Mizuho Financial Group (8411.T) rising 1 percent to 194 yen.

Nomura Holdings (8604.T), the top brokerage, added 1.7 percent to 592 yen.

Exporters gained after Google’s (GOOG.O) results, though Chief Executive Eric Schmidt said the economic environment remains tough with users still searching but buying less.

Sony Corp (6758.T) jumped 4.5 percent to 2,555 yen, after Google’s YouTube said it had reached a deal to post Sony films and TV shows and was talking with other big studios to ramp up content and attract more advertising. [ID:nN16520771]

Canon Inc (7751.T) advanced 2.2 percent to 3,050 yen, while Panasonic Corp (6752.T) gained 2.4 percent to 1,343 yen.

Toyota Motor Corp (7203.T) gained 3 percent to 3,820 yen and Honda Motor Co (7267.T) also rose 3 percent to 2,780 yen.

Shares of Nippon Steel shot up 8 percent to 338 yen. (Reporting by Aiko Hayashi)

Australia’s Challenger prices A$632.1 mln RMBS issue

(For the latest Australia and New Zealand bond news, double
click on [AU/CRD] and then double click on the ID number)

SYDNEY, April 16 (Reuters) – Australian non-bank housing
lender Challenger Mortgage has priced a A$632.1 million ($458
million) issue of prime residential mortgage-backed securities
(RMBS), a joint lead said on Thursday.

The Australian government bought A$500 million of the offer
as part of its A$8 billion RMBS purchase plan announced late
last year to inject much-needed liquidity into the home loan
market.

The government has now invested A$4.8 billion in RMBS since
the programme was introduced.

Australian non-bank lenders have suffered since the U.S
subprime mortgage crisis because they are reliant on the
now-moribund securitisation market to fund their operations.

The Challenger offer is the fifth RMBS issue to be sold to
investors this year with the government acting as a cornerstone
investor.

The new Challenger offer, called Challenger Millennium
Series 2009-1 Trust, is backed by prime mortgages, and jointly
led by Barclays Capital, Deutsche Bank and National Australia
Bank.

The offer structure was revised from the day it was
launched with different amounts and ratings.

The issuer is a unit of Challenger Financial Group
(CGF.AX). The first tranche has a final maturity of April 20,
2010, while the other tranches mature on April 20, 2040.

Settlement is on April 24.

The issue pool includes loans with an average loan-to-value
ratio of 69 percent and an average time since issue, or
seasoning, of 30 months, according to Standard and Poor’s. The
pool comprises 8 percent of low-documentations loans.

Mortgage insurers are Genworth Financial Mortgage Insurance
Pty Ltd (47 percent) and QBE Lenders’ Mortgage Insurance Ltd
(53 percent).

Details of the offer are as follows:

Class AMOUNT RATINGS AVER LIFE MARGIN

(MLN) (S and P/FITCH) (YEARS) (bps)

A1 A$49 A-1+/F1+ 0.19 +70/1mBBSW

A2 A$51 AAA/AAA 0.54 +100/1mBBSW

A3 A$202.5 AAA/AAA 1.53 +130/1mBBSW

A4 A$289 AAA/AAA 4.29 +145/1mBBSW

AB A$20.3 AAA/AAA 4.38 +170/1mBBSW

B A$20.3 AA-/AA- undisclosed undisclosed
($1=1.38 Australian Dollar)
(Reporting by Cecile Lefort)

Allahabad Bank Launches Gold Coins; Eyes Over 20% Growth In 2009-10

On the eve of entering its 145th year of service, Kolkata-based Allahabad Bank, has made announcement about the retail selling of gold coins publicly.

The public sector lender said that it will shortly launch the scheme in other areas.

While speaking to media persons, Mr. KR Kamath, Allahabad Bank Chairman and Managing Director, stated that at first, the coins will be available in denominations of four (4), eight (8) and ten (10) grams in select core banking solutions branches of the bank.

Mr. Kamath also said that gold bars of 20 and 50 grams will also be available later.

Allahabad Bank gold coins come with an ‘ASSAY Certification’, showing the highest quality of gold at 99.99% purity.

The gold is packed in tamper – proof blister packs, which are see through at the manufacturing stage itself to prevent any damage/ theft during transit.

The coins will be competitively priced based on the everyday rates in the global bullion market and quoted daily exclusive of VAT/Sales Tax.

The bank posted 18% growth in deposits and advances during the last fiscal (2008-09), as against the same period of the last fiscal.

As on March 31, 2009, the bank has attained a total business of Rs 144,000 crore, out of which Rs 84,865 crore comes from deposits and Rs59,177 crore is from advances.

Moreover, the bank is projecting over 20 per cent growth in business during the financial year 2009-10.

The bank was aspiring to attain a total business of Rs 1.75 lakh crore by March 2010, as against Rs 1.44 lakh crore in March 2009.

PRESS DIGEST – Hong Kong – April 15

HONG KONG, April 15 (Reuters) – These are some of the leading stories in Hong Kong newspapers on Wednesday. Reuters has not verified these stories and does not vouch for their accuracy.

APPLE DAILY

– Hong Kong’s economy will see a recovery in the second half of the year, as asset markets appear to have bottomed out, Morgan Stanley said in a report.

MING PAO DAILY NEWS

– Cathay Pacific (0293.HK) will announce within this week plans for a new round of cost-cutting policies, which include a mandatory no-pay leave requirement for staff, sources said.

SOUTH CHINA MORNING POST

– China Life Insurance Co (2628.HK) said premium income for the first quarter rose 1.8 percent to 104 billion yuan, compared with 102.2 billion yuan in the same period last year.

– Vietnamese Prime Minister Nguyen Tan Dung will visit Hong Kong next week in the first official mission to the city by a government leader from modern Vietnam.

THE STANDARD

– Bank of China president Li Lihui reiterated on Tuesday that the Beijing lender will increase its stake in its subsidiary, Bank of China (Hong Kong), to 75 percent if necessary.

HONG KONG DAILY NEWS

– Great Eagle Holdings (0041.HK) said Hong Kong’s overall hotel earnings from room sales fell by a third year-on-year in the first quarter.

WEN WEI PO

– Sales of new apartments rebounded slightly over the Easter holiday, after lower prices and concession offers lured buyers. Some new apartments were offered at more than 20 percent below secondary market prices of similar flats in the same district.

For Chinese newspapers, see……………[PRESS/CN]

For Taiwan newspapers, see…………[PRESS/TW]

S.Korea’s IBK in 5-yr dollar bond sale -source

HONG KONG, April 15 (Reuters) – Industrial Bank of Korea (024110.KS) is looking to sell a benchmark-sized, 5-year dollar bond at a price of around mid-500 basis points (bps) over mid-swaps, a source close to the deal said on Wednesday.

The deal which is likely to be priced on Thursday during New York trading hours, will not feature a government guarantee since IBK, which specialises in lending to small and medium-sized enterprises, is already majority-owned by South Korea.

A benchmark deal is typically of at least $500 million, but sources had earlier told Reuters the South Korean lender could raise as much as $1 billion.

Barclays Capital, Citigroup (C.N), Merrill Lynch, and Morgan Stanley (MS.N) will be the lead managers for the sale.

IBK is rated A by Standard and Poor’s and A2 by Moody’s, or the sixth-highest investment-grade rating. The lender is rated one notch above that at A-plus by Fitch, but with a negative outlook. (Reporting by Rafael Nam; Editing by Jonathan Hopfner)

UPDATE 1-Canwest gets extension from noteholders

NEW YORK, April 14 (Reuters) – Canwest Global Communications Corp (CGS.TO), Canada’s largest media company, announced yet another extension to lender talks on Tuesday as it fights a massive downturn in the advertising market.

Debtholders have agreed not to demand payment of their notes for a period that ends on April 21, Canwest said in a statement.

Canwest subsidiary Canwest Media Inc “continues discussions with its senior lenders and noteholders to develop a framework for a potential recapitalization transaction and to secure the necessary extensions to allow the recapitalization process to process,” the Winnipeg, Manitoba-based company said.

Tuesday was the day by which Canwest had to pay $30.4 million in interest to holders of its 8 percent senior subordinated notes. The payment was originally due March 15, but the company missed it.

Under the terms of the debt, investors can demand the repayment of about $761 million of outstanding principal on the notes if Canwest failure to pay the interest.

While critical, the interest payment is only the tip of the iceberg for Winnipeg, Manitoba-based Canwest, which has a debtload of about C$3.7 billion ($3.03 billion), some of it dating back to its 2000 acquisition of newspaper assets from Hollinger International.

Canwest also said Canwest Limited Partnership has initiated talks with its senior lenders about amending financial covenants under its senior credit facility. (Reporting by Anupreeta Das and Wojtek Dabrowski; Editing by Gary Hill)

S.Korea’s IBK selling 5-year dollar bonds-sources

HONG KONG, April 15 (Reuters) – Industrial Bank of Korea (024110.KS) is selling benchmark five-year dollar bonds, or typically meaning of at least $500 million, two sources familiar with the sale said on Wednesday.

IBK aimed to price the deal, which could raise as much as $1 billion, at around mid-500 basis points over midswaps, said one of the sources. No official guidance has been released, and the deal is expected to price by Thursday morning in New York hours.

The debt will not carry a government guarantee since IBK, which specialises in lending to small and medium-sized enterprises, is already majority owned by South Korea, the two sources said.

Both sources declined to be identified because they were not authorised to talk publicly about the sale.

Barclays Capital, Citigroup (C.N), Merrill Lynch, and Morgan Stanley will be the lead managers for the sale, the source said.

IBK follows on the footsteps of the South Korean government, which last week raised $3 billion in a two-tranche dollar bond deal, while others including Hana Bank and steelmaker POSCO (005490.KS) have also recently sold debt.

South Korea’s two other government-owned lenders, Korea Development Bank and Export-Import Bank of Korea, have already raised $2 billion each in overseas markets early this year.

South Korean issuers are expected to continue tapping global markets, driven by the need for dollars in a country that has about $194 billion in foreign debt falling due this year, compared with just over $200 billion in foreign reserves.

Banks in South Korea averted a cash crunch after the government made billions of dollars available to the sector and took other steps such as guaranteeing some types of overseas borrowing, although lenders are still encouraged to find their own foreign funding sources.

However, concerns about profitability remain. IBK’s profit last year declined 36 percent to 764.4 billion won ($579.3 million) from 2007.

IBK is rated A by Standard and Poor’s and A2 by Moody’s, or the sixth-highest investment-grade rating. The lender is rated one notch above that at A-plus by Fitch, but with a negative outlook. (Reporting by Rafael Nam; Editing by Chris Lewis)

Loan waiver scheme helps UP farmers

Jangal Dhusar (Uttar Pradesh), Apr 14 (ANI): Farmers in Uttar Pradesh are enjoying the benefits of loan waiver scheme announced by the Congress-led United Progressive Alliance (UPA) government.

Congress had announced the 600 billion rupees package in the budget and Prime Minister Manmohan Singh had said that banks would be compensated as and when loans became due.

Farmers in state’s Jangal Dhusar village said that the lack of burden of loan repayment has made their lives much easier as all the overdues are covered through government revenue.The loan waiver for the poor farmers is really beneficial. Earlier we used to toil in our fields for our household. Now after this scheme, I used the money saved for arranging marriage of my daughter,” said Parasnath Bhoyi, a farmer.

Similar sentiments were echoed by other farmers.

“Earlier all our money used to get exhausted in paying interests to the money lender. Now, the same money is being used to educate our children. We are doing very well now,” said Nisha Devi, another farmer.

Agriculture in India continues to be highly labour intensive and supports nearly 60 percent of the one billion-plus population. However, it constitutes only 20 percent of the country’s Gross Domestic Product (GDP). By Pavan Kumar Shah (ANI)

PREVIEW-Kuwaiti bank profits to rebound after Q4 losses

* Profits seen falling year on year

* Expects to rebound from Q4 losses

By Ulf Laessing

KUWAIT, April 12 (Reuters) – First-quarter profits at Kuwaiti banks are expected to decline year on year, but improve from losses in the prior three months even as a global recession hits, analysts said.

Shares in the OPEC producer’s banks have risen since it approved a $5 billion stimulus aimed at helping the financial sector, mainly by giving state guarantees for new loans. It also allows the state to buy into banks unable to raise fresh funds. [ID:nLQ655621]

Analysts said the worst appeared to be over for now at Kuwaiti banks after several major players, such as Kuwait Finance House (KFIN.KW) (KFH) and Commercial Bank of Kuwait (CBKK.KW) (CBK), plunged into the red in the fourth quarter after taking provisions.

Banks’ first-quarter profits would fall on average 30-35 percent from the year ago period, but that might still boost shares, said Naser al-Nafisi, general manager at the al-Joman Center for Economic Consultancy.

“The situation has improved compared to the fourth quarter, provided there are no more provisions we don’t know about,” he said. “Despite a profit fall the shares, which have fallen 50 percent in some cases, might benefit.” Gulf Bank (GBKK.KW) has already said it is expecting to post a profit in the first quarter, after diving deep into the red in the fourth quarter due to losses with derivatives. [ID:nLB15843]

Under a revamp ordered by the central bank the lender secured fresh funds from shareholders and the state’s sovereign wealth fund.

“Earnings will be under pressure. For National Bank of Kuwait (NBKK.KW) and CBK, profit will be subdued but I don’t expect they will be making losses,” said Naveed Ahmed, a financial analyst at Kuwaiti investment bank Global Investment House.

“I am a bit sceptical regarding KFH and Gulf Bank due to their low non-performing loans coverage ratio.”

In a Reuters survey, EFG-Hermes expected net profit at NBK to fall by 26 percent, KFH to fall by 51 percent and CBK by 30 percent. [ID:nEARNINGS]

Both KFH and CBK have warned of a tough first quarter but said profit would be good given the current economic situation.

INVESTMENT FIRMS EXPOSURE

Kuwaiti banks have also managed to diversify their income streams by expanding abroad — although to a much lesser extent than rivals in the United Arab Emirates — which has left them less exposed to international real estate or stock markets.

But local banks are exposed to the troubled investment sector, where several major players like Global Investment House (GLOB.KW) or Investment Dar (TIDK.KW) are struggling to raise new loans.

Fitch Ratings has cut its rating on KFH over risks in its loans to Kuwaiti investment firms, warning it may further downgrade the major Islamic lender after its first-half results. [ID:nL1274542]

“Further provisioning and equity mark-to-market losses will also be seen this quarter, though to a lower extent,” said Global Investment House’s Ahmed. (Additional reporting by Rania El Gamal; Editing by Sam Cage and Mike Nesbit)

Vietnam’s ACB Q1 gross profit drops 10.2 pct

HANOI, April 13 (Reuters) – Vietnam’s fifth-largest lender, Asia Commercial Bank ACB.HN, said first-quarter gross profit fell 10.2 percent to more than 450 billion dong ($25.3 million), compared with the same period last year.

Assets totaled 136.15 trillion dong at end March, according to a statement on the Ho Chi Minh City-based bank’s website (www.acb.com.vn) detailing its first-quarter unaudited results. It gave no comparisons with the same period last year.

The bank, 15-percent owned by Standard Chartered Plc (STAN.L), made a gross profit of 501 billion dong in the first quarter of 2008, while assets reached 100 trillion dong. ($1=17,780 dong) (Reporting by Ho Binh Minh; Editing by Kim Coghill)