Karnataka Bank Q2 net profit up 20%

Private sector Karnataka Bank has reported a rise of 20 per cent in its net profit at Rs 111.86 crore in the second quarter ended September 2018 on healthy interest income and lower provision for bad assets. The bank had reported a net profit of Rs 93.38 crore in the corresponding July-September quarter of 2017-18.

Total income of the bank increased to Rs 1,653.81 crore in the second quarter of 2018-19, from Rs 1,565.75 crore in the same period of the preceding fiscal, the bank said in a regulatory filing.

Bank's earnings from interest moved up to Rs 1,452.61 crore during the September quarter as against Rs 1,317.93 crore in the year-ago period. The provisioning for bad loans and contingencies for the quarter came down to Rs 193.22 crore as against Rs 225.98 crore.

On asset quality, the net non-performing assets (NPAs) came down to 3 per cent of the net advances by the end of September 30, 2018, as against 3.04 per cent in the same period a year earlier.

In value terms, net NPAs stood at Rs 1,497.68 crore as on September 30, 2018, as against Rs 1,246.81 crore as at end-September 2017.

Gross NPA ratio rose to 4.66 per cent (Rs 2,371.62 crore) against 4.13 per cent (Rs 1,715.70 crore). Provision coverage ratio as at September 30, 2018 stood at 57.49 per cent (46.94 per cent at September 2017).

Read More

AIBEA condemn demand of ASSOCHAM to privatise banks

Read More

Aadhaar Enabled Payment System (AEPS)

• AEPS allows bank-to-bank transaction at PoS (MicroATM) with the help of Banking  Correspondent
• Seed your account with your Aadhaar number
• Now do transactions without remembering any PIN

Aadhar enabled Services

  – Balance Enquiry

  – Cash Withdrawal

  – Cash Deposit

  – Aadhaar to Aadhaar Funds Transfer

Key Steps for AEPS Transaction

1.        GO TO A MICROATM OR BANKING CORRESPONDENT 
2.       PROVIDE YOUR BANK NAME AND AADHAAR
3.        CHOOSE WHICH TRANSACTION TO DO
4.        PROVIDE FINGER PRINT ON SCANNER
5.        ON SUCCESSFUL TRANSACTION, TAKE THE PRINT SLIP
6.        PROCESS COMPLETED

Read More

Different modes of Payment

As the commerce and economy expand, volume and variety of transactions expand where there is a need to exchange the money. Using cash for each of these transactions is neither feasible nor practically possible. There are concerns regarding security and transportation of cash in cases where large amounts of money are involved. Banks support ease and velocity in such cases by offering various payment systems as solutions.

What are Payment Systems?

A Payment System is a mechanism that facilitates transfer of value between a payer and a beneficiary by which the payer discharges the payment obligations to the beneficiary. Payment Systems are the medium to transfer funds from one person to another that facilitate businesses and economies. Payment system enables two-way flow of payments in exchange of goods and services in the economy. Payment systems help consumers to transfer funds to each other. Cash is the traditional and most widely used payment instrument that consumers use in their daily lives to purchase goods and services. Banking channels also provide other payment instruments through different platforms and these are also widely used in commerce. Payment systems comprises of instruments through which payments can be made, rules, regulations and procedures that guide these payments, institutions which facilitate payment mechanisms and legal systems etc. that are established to facilitate transfer of funds between different participant institutions. Payment systems are used by individuals, banks, companies, governments, etc. to make payments to one another.

Read More