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Hong Kong regulator increases supervision on Allahabad Bank branch

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Kolkata, June 12 (IANS) State-run lender Allahabad Bank on Tuesday said the Hong Kong Monetary Authority (HKMA) has enhanced supervisory arrangements on its Hong Kong branch while “assessing implications of the capital positions” of the lender.

“..we have to inform you that the Hong Kong Monitory Authority while assessing the implications of capital position of our bank as on march 31, 2018, has enhanced the supervisory arrangements on our Hong Kong branch,” it said in a regulatory filing.

In fact, the bank’s capital to risk-weighted assets ratio (CRAR) had declined to 8.69 per cent at the end of March quarter from 11.27 per cent at the end of December quarter of 2017-18.

The HKMA, the de facto central bank of Hong Kong, is responsible for maintaining monetary and banking stability.

According to the filing, the branch should maintain high quality liquid asset in Hong Kong equivalent to 100 per cent of unpledged deposits.

“ALHBHK (Allahabad Bank Hong Kong branch) should not proactively solicit customer deposits in Hong Kong. However, transactional deposits such as pledged deposits for commercial loans would be excluded from this supervisory arrangement,” the filing said.

According to supervisory arrangements imposed by HKMA, the branch should maintain a position of ‘net due to’ its head office, other branches and any direct or indirect subsidiaries and associates of the bank.

“ALHBHK should not incur additional non-bank credit exposures,” the filing added.

The bank’s latest annual report said its Hong Kong branch had earned operating profit of Rs. 90.52 crore and net profit of Rs. 44.86 crore in the financial year 2017-18.

In the last fiscal, the bank’s international business stood at Rs. 12,871 crore and recorded a negative year-on-year growth of (-) 8.91 per cent on account of 12.82 per cent year-on-year drop in overseas advances.

In fact, under the capital adequacy guidelines stipulated by the Reserve Bank of India (RBI), the lender is required to maintain a CRAR of 9 per cent with minimum Common Equity Tier I (CET1) of 5.5 per cent as on March 31, 2019.

In fact, the RBI had last month imposed additional restrictions on Allahabad Bank under prompt corrective action (PCA) framework.

The lender was asked to restrict expansion of risk-weighted assets (RWA), reduce exposure to high-risk loans and restrict accessing or renewing wholesale deposits.

The lender had posted a net loss of Rs 3,509.63 crore in the March quarter of 2017-18.

–IANS
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Dr. Abhishek Verma Dedicates a Shelter in Memory of His Mother, Veena Verma, at KGMU; Inaugurated by Daughter Nicolle Verma

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World-renowned business tycoon Dr. Abhishek Verma has supported Foodman Vishal Singh’s Hunger-Free World mission. In memory of his mother, Late Veena Verma, who was a 3 term Rajya Sabha MP.

Dr. Verma dedicated a state-of-the-art free permanent shelter for the attendants of patients at KGMU Medical University, Lucknow, under the aegis of Vijay Shree Foundation. His daughter, Nicolle Verma, inaugurated the shelter.

During the event, Foodman Vishal Singh honored Nicolle Verma by presenting her with a memento. Mrs. Nidhi Sharma and Avantika Yadav, associated with the organization, welcomed her with garlands. Following this, Nicolle Verma distributed essential items to the attendants and also handed out fruits. She became emotional remembering her grandmother on her birth anniversary.

On this occasion, she also inaugurated the “Veena Verma Sevalaya” in memory of her grandmother, Veena Verma, to serve the attendants. She expressed, “I feel proud that my family is engaged in nation-building as well as social service. Today, in collaboration with Vijay Shree Foundation founder Foodman Vishal Singh Ji, I feel immensely proud to dedicate this shelter for the poor, helpless, and needy attendants of patients battling serious illnesses like cancer. I am honored to be associated with the Hunger-Free World Mission for humanity.”

Inspired by the continuous humanitarian service provided by Vijay Shree Foundation over the past 17 years, Nicolle Verma donated 10 lakh rupees to support the cause. The purpose of this donation is to ensure that services continue for the needy attendants of patients suffering from severe illnesses in hospitals, as facilitated by Foodman Vishal Singh.

It is noteworthy that Dr. Abhishek Verma’s family has a legacy of public and philanthropic service. They are helping millions to carry forward the values and service work of their parents. On the occasion of his mother’s birth anniversary, Dr. Abhishek Verma dedicated this state-of-the-art permanent shelter at Lucknow Medical College to serve the attendants of patients through the Vijay Shree Foundation.

Supporting Foodman Vishal Singh’s Hunger-Free World mission, Dr. Abhishek Verma assured that he would continually support keeping this flame of humanity alive. He also promised to assist in providing medicines to the helpless patients.

Continuing her grandmother’s legacy of service, Nicolle Verma personally served food to the needy patients and attendants. She said, “It is our good fortune to have received the joy of doing this noble work today through Foodman Vishal Singh. I have taken another step forward in carrying my family’s values and cooperation by joining hands with the Vijay Shree Foundation. My father taught me to serve and help the needy, and I feel happy when I bring a smile to someone’s face.”

On the birth anniversary of the late Veena Verma, the event organizer, Vijay Shree Foundation founder Foodman Vishal Singh, said, “We feel proud and happy that Dr. Abhishek Verma, a globally renowned business tycoon, has extended his support to uplift our country from the hunger index. Today, on his mother’s birth anniversary, he inaugurated a state-of-the-art permanent shelter at Lucknow Medical College, which will always be helpful for the needy attendants of patients. It is a pleasure for me and the organization to receive the affection of Mr. Verma.”

The event was attended by General Manager Verma Family Office Hemant Garg, Sonu Rajput, and the organization’s volunteers, including Sandeep Singh, Parmeshwar Ji, Prashant Rao Gautam, Balram Singh, Ramesh Chaudhary, Suman, Jeetu, Anil, Suraj, Vinay, Manish Bhadauria, Manas Mehrotra, Vivek, Apurv, Happy, and others.

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