Wishing You Happy Christmas & New Year
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OVER www.southindianbank.com 77 YEAR OF TOTAL BANKING Blending tradition with technology Nov '06 - Jan '07 Wishing You Happy Christmas & New Year Dr. V.A. JOSEPH Chairman & CEO Dear NRI Patrons, At the outset, I would like to express my heartfelt gratitude for the unstinted support extended to South Indian Bank. Your Bank has achieved an enviable position among the realm of best performing old generation private sector banks in the country. With your support, the bank has recorded a net profit of Rs.41.65 crores for the second quarter ended September 30, 2006 as against Rs. 8.63 crores for the corresponding period last year registering a growth of 383%. The total Business of the bank has increased by Rs. 4007 crores from 14,217 crores to Rs. 18,224 crores on an year-to-year basis registering a growth of 28.18%. While the deposits has gone up by Rs.2, 728 crores from Rs.8, 130 crores to Rs.10, 858 crores, the advances has increased by Rs.1,279 crores from Rs.6, 087 crores to Rs. 7,366 crores. The bank earned a total income of Rs.273 crores registering a growth of 39.28% as against Rs.196 crores for the corresponding quarter last year. Net NPA is drastically brought down from 3.09% to 1.69%. The capital Adequacy ratio has gone up from 10.28% to 11.50% as on 30.09.2006. The NRI business of the Bank has shown positive growth and has touched the magical figure of Rs.3000 crore. I am well aware that this was made possible through our fruitful relationship with the NRI fraternity all over the world. Your bank is providing management support to Hadi Express Exchange, Dubai. We are happy to inform you that “SIB EXPRESS” money transfer facility is available from this office. Funds transferred through this facility will be credited in all networked branches of SIB instantaneously. We have plans to extend this service to Sharjah, and other centres through the net work of Hadi Express Exchange in due course. Your bank has drawing arrangements with 22 Exchange Houses/Banks in UAE. Your bank also has drawing arrangements with banks worldwide. We have recently made remittance arrangements with M/s. Money Gram. Bank has joined hands with TATA Mutual fund, Prudential ICICI AMC, Sundaram BNP Paribas MF, Franklin Templeton MF and Reliance MF for marketing their mutual fund products and with ICICI Prudential, United India Insurance for life and non life insurance schemes. We may also tie up with UTI Mutual Fund very soon so that you can select the best performing fund. In order to offer the best in Credit Card business, we are tieng up with CITIBANK for their International VISA affiliated credit card. We may able to offer you this co-branded card from November on-wards. The bank has already obtained permission to open another 21 branches to take the total number to 475.With these branches, bank will be represented in 23 States and Union Territories in India. Your bank is targeting a business growth of Rs.20, 000 crore in the current year and Rs.25, 000 crore, in the next year. The bank as a part of total brand revamp has signed up with the Megastar Padmasree Bharat Mammootty as its global Brand Ambassador. As a person who promotes the latest technological advancements, we hope, Mr.Mammootty will be the perfect icon to your organization, which radiates a similar image. Bank is on the thresh hold of becoming the first private bank in the State to implement total core banking solution in all the branches. We constantly strive to impart technology in all dimensions of banking. As a national level recognition to the excellent contribution made in the area of Information Systems Security Policies and Procedures, your bank won a special award for excellence in Banking Technology from IDRBT (Institute for Development and Research in Banking Technology) the technical arm of the Reserve Bank of India. Promoting talents in every facet has been the watchword of our bank. Rightfully following that, we are airing SOUTH INDIAN BANK GRANDMASTER QUIZ, 2006 for college students in Asianet every consecutive Sundays at 7.30 pm. (IST). In a scenario where banks are trying to be positioned as a one-stop shop providing all financial services to the customer, your bank could excel just because of your continued support and encouragement. I solicit your continued patronage in the coming days also, which I am sure will take your bank to unprecedented heights and glory. With Regards, Dr. V.A. JOSEPH Chairman & CEO HADI EXPRESS EXCHANGE, BURDUBAI MANAGEMENT SUPPORT : THE SOUTH INDIAN BANK LTD We have launched the “SIB EXPRESS” facility from this office. Funds transferred through this facility will be credited in all networked branches of SIB instantaneously. For details contact : Mr. Shelly Joseph (GM) Hadi Express Exchange, P O BOX: 28909,Al Souq road, Near ABRA STATION, Bur Dubai, UAE Fax: 009714 3537660,Telephone: 3537650 /3534802, 00971-50-4516418(M) Email: [email protected] NRIs TO GET PAN FOR TRADING The Securities and Exchange board of India is withdrawing the “limited purpose Beneficiary owner account”/ trading account facility for non resident Indians(NRIs) and persons of Indian origin(PIO) without a Permanent Account Number. This follows the directorate of Income tax issuing guidelines facilitating Indian citizens residing outside India, foreign citizens and other persons (like companies, trusts or firms) having no office of their own in India, to obtain PAN based on the copy of their passport as ID proof and copy of passport/copy of bank account in the country of residence as address proof. The Income Tax Department has recently simplified the process of issuing PAN card to NRIs.The process now allows NRIs and even foreign citizens direct access to apply for a PAN card. The latest simplification carried out earlier this month is that NRIs/ foreign citizens do not require any representative to act on their behalf, or even give his details.NRIs can directly apply for the same. The form 49A, required to be filled up by NRIS in the standard format, is similar to that of anybody seeking a PAN card. The NRI can easily download the forms from the websites of the two designated PAN Service providers- UTI Technology Services and National Securities Depositories. The filled form has to be sent back to the service provider's offices. Such an application form requires NRIs to attach the photocopy of the passport, and the photocopy of the bank account maintained in India, if the NRIs are filing the application 49A are doing so from overseas. In case the individual NRIs are doing so when they are in India, they need to furnish the photocopy of their bank accounts, which they hold in their country of residence. The PAN card proves to be handy for NRIs in all such cases in which the individuals are interested in purchase/sale of shares or participating in IPO's online or through overseas branches of brokers. This is because in case of IPO's it is now necessary to have demat account, which can only be opened by furnishing PAN card photocopies. In case of the secondary market too, the application for opening an account with the broker (overseas branch)or trading online, needs to have the PAN details along with the demat account details. Source: Economic Times, 25th and 28th Oct, 2006 SPURT IN OUTWARD FOREIGN DIRECT INVESTMENT Dr Reddy's laboratories emerged as the second biggest investor abroad with an investment of about $ 770m in 2005-06,according to a recent report by CRISIL.During the period, Dr Reddy's completed the acquisition of Germany's Betapharm, in one of the largest pharma deals by an Indian company. Among the other top investors of 2005-06 are Suzlon energy, Tata steel, Ranbaxy laboratories, Videocon international, VSNL, Matrix Laboratories, TCS and Wipro. However, if all Tata investments are clubbed together, the group will stand third with an investment of $ 755m. Indian companies invested over $ 1.05bn in the US, it being the top favorite. As per the Indian investment preferences in 2005-06, the United Kingdom came second, attracting $ 800m, says the report. Other countries where Indian companies were bullish on during the year are Belgium with $ 790m, Germany with $ 657m, and Thailand with $486m. Sector wise, pharmaceuticals has been the leader, with $1.58bn of outward investment in 2005-06. The major investors abroad in this sector are Dr.Reddy's laboratories, Matrix laboratories, Jubilant Organosys and Nicholas Piramal India. Banking follows next with an investment of $1.18bn and third comes IT with an investment of $786m.In the metals sector, India invested about $777m overseas-largely driven by Tata Steel's foray into Thailand. The energy sector invested $630m abroad. One of the major investments by an Indian company abroad so far has been that of Aban Loyd Chiles Offshore, which invested $445m in Norway. Source: Economic Times, 21st October 2006 RBI GOVERNOR ANNOUNCES MID-TERM REVIEW OF ANNUAL POLICY FOR 2006-07 Highlights l Repo Rate increased to 7.25 per cent acquisition of immovable property for the whose accounts have been rescheduled/ from 7.0 per cent. l The flexibility to conduct overseas office, within these limits. l The restructured due to natural calamities as also those overnight repo or longer term repo including the existing limit of US $ 2 billion on investments in who have defaulted on account of circumstances right to accept or reject tender(s) under the LAF, Government securities by foreign institutional beyond their control.