Friday, 31 January 2014

RBI working on framework to deal with the NPA menace

With an aim to adopt effective judiciary and bankruptcy systems to deal with the NPA menace, the Reserve Bank of India (RBI) has stressed that the framework to revitalise distressed loans in the economy will be fully effective from April 1. The RBI’s new framework will help the domestic banking system to recognise financial distress early, take prompt steps to resolve it, and ensure fair recovery for lenders and investors. The asset quality of Indian banks has been showing downward trend since global financial crisis, 2008.

In order to improve the current restructuring process, the RBI framework will mandate the independent evaluation of large-value restructurings with a focus on viable plans and a fair sharing of losses between the promoters and the creditors. The framework proposal also noted that if a loss is fully disclosed, lenders can spread the loss on sale over two years. The central bank emphasized that lenders are encouraged to start early implementation of framework that do not require issuance of any notifications, regulatory guidelines and development of systems at their end. RBI also highlighted that banks and specified non-bank lenders should put in place necessary systems and infrastructure to implement the framework effectively.

The RBI further noted that in case borrowers do not co-operate with lenders in resolution, borrowing could become more expensive for them. Further, refinancing or take-out financing will be possible over a longer period and will not be interpreted as restructuring. Lenders will be given more liberal regulatory treatment for asset sales. The proposal also include allowing leveraged buyouts for specialised entities for acquisition of ‘stressed companies’ and to encourage sector-specific companies / private equity firms to play an active role in the stressed assets market.

Petronet LNG reports 57% fall in Q3 net profit

Petronet LNG has reported results for third quarter ended December 31, 2013.

The company has reported 57.44% fall in its net profit at Rs 135.55 crore for the quarter as compared to Rs 318.50 crore for the same quarter in the previous year. However, total income from operations of the company increased by 11.34% at Rs 9382.12 crore for quarter under review, as compared to Rs 8422.78 crore for the quarter ended December 31, 2012.

Petronet LNG is one of the leading players in oil and natural gas industry space. It has India’s first and largest LNG supply terminal located at Dahej.

IRB Infrastructure Developers reports 24% fall in Q3 consolidated net profit

IRB Infrastructure Developers has reported results for third quarter ended December 31, 2013.

The company has reported 48.41% fall in its net profit at Rs 25.51 crore for the quarter as compared to Rs 49.45 crore for the same quarter in the previous year.  However, Total income from operations of the company has increased by 15.63% at Rs 581.18 crore for quarter under review as compared to Rs 502.59 crore for the quarter ended December 31, 2012.

On the consolidated basis, the group has reported 23.96% fall in its net profit at Rs 108.52 crore for the quarter ended December 31, 2013 as compared to Rs 142.71 crore for the same quarter in the previous year. Total income from operations of the group has decreased by 4.30% at Rs 905.90 crore for quarter under review as compared to Rs 946.57 crore for the quarter ended December 31, 2012.

Union Bank of India reports 15% rise in Q3 net profit

Union Bank of India has reported results for third quarter ended December 31, 2013.

The bank has reported 15.39% rise in its net profit at Rs 348.94 crore for the quarter as compared to Rs 302.40 crore for the same quarter in the previous year. Total income of the bank has increased by 18.26% at Rs 8230.17 crore for quarter under review as compared to Rs 6959.37 crore for the quarter ended December 31, 2012.

The bank’s gross NPA for the December 31, 2013 quarter of the current fiscal stood at 3.85%, as compared to 3.36% in the same quarter of the previous year. Besides, bank’s Net NPA stood at 2.26% as compared to 1.70% in the same quarter of the previous year.

Canara Bank reports 42% fall in Q3 net profit

Canara Bank has reported results for third quarter ended December 31, 2013.

The bank has reported 42.39% fall in its net profit at Rs 409.35 crore for the quarter as compared to Rs 710.51 crore for the same quarter in the previous year. However, Total income of the bank has increased by 16.45% at Rs 10935.29 crore for quarter under review as compared to Rs 9390.29 crore for the quarter ended December 31, 2012.

The bank’s gross NPA for the December 31, 2013 quarter of the current fiscal stood at 2.79%, as compared to 2.77% in the same quarter of the previous year. Besides, bank’s Net NPA stood at 2.39% as compared to 2.35% in the same quarter of the previous year.

Oriental Bank of Commerce reports 31% fall in Q3 net profit

Oriental Bank of Commerce has reported results for third quarter ended December 31, 2013.

The bank has reported 31.28% fall in its net profit at Rs 224.30 crore for the quarter as compared to Rs 326.40 crore for the same quarter in the previous year. However, total income of the bank has increased by 4.48% at Rs 5063.98 crore for quarter under review as compared to Rs 4846.54 crore for the quarter ended December 31, 2012.

The bank’s gross NPA for the December 31, 2013 quarter of the current fiscal stood at 3.87%, as compared to 2.98% in the same quarter of the previous year. Besides, bank’s Net NPA increased to 2.91% as compared to 2.14% in the same quarter of the previous year.

Tata Teleservices Maharashtra reports net loss of Rs 156.36 crore in Q3

Tata Teleservices Maharashtra has reported results for third quarter ended December 31, 2013.

The company has reported a net loss of Rs 156.36 crore for the quarter as compared to net loss of Rs 197.16 crore for the same quarter in the previous year. Total income of the company has increased by 4.80% at Rs 682.16 crore for quarter under review as compared to Rs 650.90 crore for the quarter ended December 31, 2012.

Tata Teleservices Maharashtra (TTML) is a part of the Tata Group. This telecom services company has its presence all over Maharashtra and Goa. Tata Docomo has already partnered with the Delhi and Hyderabad airports to provide connectivity solutions. Tata Docomo has a strong presence in the enterprise space, across industry verticals — BFSI, IT, ITeS, services, manufacturing, government and PSU.

Piramal Enterprises reports consolidated net loss of Rs 11.14 crore in Q3

Piramal Enterprises has reported results for third quarter ended December 31, 2013.

The company has reported a net loss of Rs 82.14 crore for the quarter as compared to net loss of Rs 24.78 crore for the same quarter in the previous year. However, total income of the company has increased by 18.26% at Rs 566.10 crore for quarter under review as compared to Rs 478.66 crore for the quarter ended December 31, 2012.

On the consolidated basis, the group has reported a net loss after taxes and Minority Interest of Rs 11.14 crore for the quarter as compared to net profit of Rs 61.07 crore for the same quarter in the previous year. However, total income of the group has increased by 23.74% at Rs 1305.58 crore for quarter under review as compared to Rs 1055.06 crore for the quarter ended December 31, 2012.

Syndicate Bank reports 25% fall in Q3 net profit

Syndicate Bank has reported results for third quarter ended December 31, 2013.

The bank has reported 25.32% fall in its net profit at Rs 379.76 crore for the quarter as compared to Rs 508.49 crore for the same quarter in the previous year. However, Total income of the bank has increased by 11.61% at Rs 5011.28 crore for quarter under review as compared to Rs 4489.90 crore for the quarter ended December 31, 2012.

The bank’s gross NPA for the December 31, 2013 quarter of the current fiscal stood at 2.80%, as compared to 2.31% in the same quarter of the previous year. Besides, bank’s Net NPA stood at 1.66% as compared to 0.85% in the same quarter of the previous year.

PNB reports 42% fall in Q3 net profit

Punjab National Bank (PNB) has reported results for third quarter ended December 31, 2013.

The bank has reported 42.14% fall in its net profit at Rs 755.41 crore for the quarter as compared to Rs 1305.62 crore for the same quarter in the previous year. However, total income of the bank has increased by 3.68% at Rs 11922.30 crore for quarter under review as compared to Rs 11499.27 crore for the quarter ended December 31, 2012.

The bank’s gross NPA for the December 31, 2013 quarter of the current fiscal stood at 4.96%, as compared to 4.61% in the same quarter of the previous year. Besides, bank’s Net NPA stood at 2.80% as compared to 2.56% in the same quarter of the previous year.

Gujarat State Fertilizers & Chemicals reports 26% fall in Q3 net profit

Gujarat State Fertilizers & Chemicals (GSFC) has reported results for third quarter ended December 31, 2013.

The company has reported 25.86% fall in its net profit at Rs 101.20 crore for the quarter as compared to Rs 136.49 crore for the same quarter in the previous year. Total income of the company has decreased by 15.67% at Rs 1458.40 crore for quarter under review as compared to Rs 1729.43 crore for the quarter ended December 31, 2012.

GSFC is a leading manufacturer of quality products of Chemical Fertilizers and Industrial Products. The company’s manufacturing units is located at Kosamba, Sikka and Nandesari. It has marketing network spread across India in states like Andhra Pradesh, Chhattisgarh, Gujarat, Haryana, Karnataka, Madhya Pradesh, Maharashtra, Punjab, Rajasthan, Daman and Uttar Pradesh.

State Bank of Travancore reports 89% fall in Q3 net profit

State Bank of Travancore has reported results for third quarter ended December 31, 2013.

The bank has reported 88.82% fall in its net profit at Rs 14.76 crore for the quarter as compared to Rs 131.99 crore for the same quarter in the previous year. Total income of the bank has increased by 13.27% at Rs 2601.99 crore for quarter under review as compared to Rs 2297.16 crore for the quarter ended December 31, 2012.

The bank’s gross NPA for the December 31, 2013 quarter of the current fiscal stood at 4.41%, as compared to 3.04% in the same quarter of the previous year. Besides, bank’s Net NPA stood at 2.73% as compared to 1.83% in the same quarter of the previous year.

Shriram City Union Finance reports 15% surge in Q3 net profit

Shriram City Union Finance has reported results for third quarter ended December 31, 2013.

The company has reported 14.72% rise in its net profit at Rs 129.09 crore for the quarter as compared to Rs 112.52 crore for the same quarter in the previous year. However, total income of the company has decreased by 0.20% at Rs 812.07 crore for quarter under review as compared to Rs 813.73 crore for the quarter ended December 31, 2012.

Shriram City Union Finance has presence in the following business segments - loan Against Gold (LAG), Small Business Finance Loans (SBF), Auto Loans, 2-Wheeler loans, Personal Loans and Consumer Durables Loans.

Govt increases subsidised LPG quota to 12 cylinders per household in a year

Giving some respite to Indian households, the government has raised the quota of subsidised cooking gas to 12 cylinders from 9 per household in a year. The move will cost Rs 5,000 crore   annually for the government as an additional subsidy. Further, the government cleared that domestic households can get one extra cylinder on top of currently implemented scheme for 9  subsidised cylinders for the months February and March. Consumers will be entitled for 12  subsidised cylinders scheme from the next fiscal year beginning April.

At present, 89.2 percent of the 15 crore Indian LPG consumers use up to 9 cylinders in a year and only 10 per cent have to buy the additional requirement at the market price. With the implementation of 12 subsidised cylinders scheme, about 97 percent of the LPG consumers would be covered by this scheme.

However, the government suspended its ambitious direct benefit transfer for LPG (DBTL) to pay LPG subsidy in cash to consumers directly amid rising complains of not getting the benefit of this scheme in absence of either an Aadhaar card or a bank account linked Aadhaar. Earlier, the scheme was touted by the government as game-changer as it plugged distractions and helped subsidy to reach the intended beneficiaries. So far, the DBTL scheme has been implemented in country’s 289 districts in 18 states and provides cash of Rs 435 to consumers in their bank accounts so that they could buy cooking gas at market rate. Meanwhile, the government has decided to set up a committee which will review only the implementation of DBTL. After the suspension of DBTL scheme, the government will pay subsidy to oil companies as was practice earlier and consumer will get subsidised cooking gas from these companies.

Tata Global Beverages plans acquisition to strengthen its coffee business

In a bid to strengthen its coffee business, Tata Global Beverages is looking to expand the coffee business either through acquisitions or by extending the existing brands both in India and overseas markets.

In India, the company has got a few coffee brands such as Coorg, Tata Coffee and Mr Bean. However, while these brands have a dominant position in the southern market, they have been unable to take on Nescafe and Hindustan Unilever’s Bru at the national level. Similarly, in the US, which is dominantly a coffee drinking nation, the company is witnessing a major challenge from local coffee players.

Meanwhile, the company has been pushing the coffee business through its joint venture with Starbucks in India.

The company reported 23.56% rise in its net profit at Rs 87.95 crore for the quarter as compared to Rs 71.18 crore for the same quarter in the previous year. Total income of the company increased 12.52% at Rs 768.90 crore for quarter under review, as compared to Rs 683.36 crore for the quarter ended December 31, 2012.

Hero MotoCorp reports 8% rise in Q3 net profit

Hero MotoCorp has reported results for third quarter ended December 31, 2013.

The company has reported 7.53% rise in its net profit at Rs 524.66 crore for the quarter as compared to Rs 487.89 crore for the same quarter in the previous year. Total income of the company has increased by 11.06% at Rs 6972.46 crore for quarter under review, as compared to Rs 6277.72 crore for the quarter ended December 31, 2012.

Hero MotoCorp is the World’s single largest two-wheeler motorcycle company. Honda Motor Company of Japan and the Hero Group entered a joint venture to setup Hero Honda Motors in 1984. Hero Honda Motors changed its name to Hero MotoCorp following the exit of its erstwhile Japanese promoter, Honda, from the company.

Neyveli Lignite Corporation reports over two fold jump in Q3 net profit

Neyveli Lignite Corporation has reported results for third quarter ended December 31, 2013.

The company has reported  over two fold jump in its  in its net profit at Rs 489.02 crore for the quarter as compared to Rs 221.65 crore for the same quarter in the previous year. Total income from operations of the company increased by 24.47% at Rs 1868.36 crore for quarter under review as compared to Rs 1371.14 crore for the quarter ended December 31, 2012.

NLC is engaged in the business of lignite mining and power generation. At present, the company has four opencast lignite mines with a capacity of about 30.60 million tonnes per annum, while it can produce about 2,740 MW of power from four power plants.

Claris receives for ANDA approval for Furosemide Injection in US

Claris Lifesciences has received the Abbreviated New Drug Application (ANDA) approval for Furosemide Injection in the United States of America (US). This product will be sold in 10 mg/ml formulation packed in 20mg/2ml, 40mg/4ml and 100mg/10ml single dose vials having approximately market size of $22 million. This brings the company’s total tally of approved and marketable ANDAs to 13 with estimated addressable market size of $204.33 million.

Furosemide is used to treat edema (fluid retention) that occurs with congestive heart failure and disorders of the liver, kidney, and lung. It is also used to control mild to moderate high blood pressure. It may be used in combination with other medications to treat more severe high blood pressure.

The product has been facing supply issues in USA during the past year on various occasions and has also featured in the USFDA shortage list since June 2012. Presently there are only 4 other companies who have an approved ANDA for this product. Claris is the only company out of the emerging markets to have received the ANDA approval for the US.

Siemens to acquire 100% equity shares of SRAPL for Rs 55 crore

Siemens has received an approval for acquisition of 100% equity shares of Siemens Rail Automation (SRAPL) from Siemens International Holding BV, Netherlands (99.99%) and Siemens AG (0.01%) for a consideration of Rs 55 crore. The board of director at its meeting held on January 30, 2014 has approved for the same.

SRAPL is engaged in the business of manufacture, supply, design, installation and commissioning of Railway Signaling equipments consisting of trackside and on board equipment. The business is complementary to the existing business of the company and should provide significant synergies.

Siemens is the flagship listed company of Siemens AG in India and is a major player in the electronics and electrical engineering business. Germany’s Siemens AG holds a 75 per cent stake in the company.

SKS Microfinance completes Rs 55.56 crore securitization

SKS Microfinance has completed the fifth microfinance securitization amounting Rs 55.56 crore during the current financial year. With this, the total sum of securitizations completed during FY14 (YTD) is Rs 727.37 crore. The first four substantial securitizations were Rs 321 crore (on September 30), Rs 80.81 crore (on December 11), Rs 215 crore (on December 19) and Rs 55 crore (on December 30).

The company has downloaded the receivables from micro loans extended to more than 60,000 rural women entrepreneurs to a Special Purpose Vehicle, and Pass Through Certificates (PTCs) have been purchased by a private sector bank. The entire pool qualifies for priority sector treatment as per RBI’s priority sector lending guidelines.

The pool is rated A1+ (SO) by a leading rating agency signifying ‘a very strong degree of safety regarding timely servicing of financial obligation’. Such instruments carry the lowest credit risk.

New series likely to get a positive start; GDP data eyed

The Indian markets despite some recovery in second half ended with cut of over half a percent in the last session. Today, the start of the new series is likely to be in green and some recovery and stabilization can be expected after the slump. However, there will be some cautiousness too, as the RBI Governor Raghuram Rajan has warned of a breakdown in global policy coordination after the Federal Reserve further cut stimulus, weakening emerging-market currencies and has called for greater cooperation among policy makers. Traders will be eyeing fiscal deficit data for the April-December period and first revised GDP data for the fiscal year that ended in March 2013, scheduled to be announced later in the day. The PSU oil marketing companies are likely to remain under pressure after the government raised the supply of cheap cooking gas cylinders to 12 per year from 9, and de-linked subsidy on the fuel from Aadhaar cards. Meanwhile, the RBI governor has called the hike in LPG cylinder quota a misdirected subsidy and said that the move will end up benefiting people who can afford to pay market rates.

There will be lots of important result announcements to keep the markets buzzing. Adani Enterprises, Alstom T&D, Bank of Maharashtra, Canara Bank, IDFC, ING Vysya Bank, IRB Infra, Marico, Merck, Motherson Sumi, NHPC, PNB, Pfizer, PVR and Union Bank are among the many to announce their numbers today.

The US markets rebounded in last session and the major indices recovered on getting report that despite slowing, US economic growth matched estimates. Also there were lots of good earnings supporting the markets. Asian indices have made a positive start, though some of the markets are closed today. Japanese market was trading in green after the statistics bureau reported that Japan’s inflation accelerated in December.

Back home, F&O expiry session turned out to be another disappointing session for the Indian equity indices which got pounded by over half percentage point. Indian barometer gauges, prolonging their southward journey for fifth consecutive session, snapped the day’s trade with over half a percent cuts on extremely large volumes on feeble global cues. Selling was both brutal and wide-based as, barring consumer durables and auto; none of sectoral indices on BSE could manage a green close. Counters, which featured in the list of worst performers, include banking, realty and metal. Though, the benchmark equity indices went on to stage a swift recovery in the last leg of trade on Thursday after suffering hefty pounding through the first half. The key gauges even breached the psychological 6,030 (Nifty) and 20,350 (Sensex) levels in the noon session as selling pressure got aggravated after the European markets made a negative opening. The Asian peers too ended in the red, as sentiments remained dampened after US Federal Reserve announced plans to scale back its bond purchases by another $10 billion. Selling in metal counter also spooked sentiments, as stocks like, Nalco, Sesa Sterlite, JSW Steel etc edged lower after weak Chinese manufacturing data. Moreover, stocks related to public oil marketing companies (OMC), viz. BPCL and HPCL ended lower on the Union Cabinet’s decision of approving a proposal to raise the quota of subsidized LPG cylinders from 9 to 12 per household in a year. However, covering of hefty short positions, in the late hours of trade, ensured that the benchmarks recover over a percentage points from the low points of the day and settled above their crucial 6,050 (Nifty) and 20,450 (Sensex) bastions. Some support also came after fertilizer stocks, like Chambal Fertilisers & Chemicals, Rashtriya Chemicals & Fertilizers (RCF) and National Fertilizers gained after Group of Ministers okayed the proposal to hike fixed cost of Urea by Rs 350 per tonne. Finally, the BSE Sensex plunged by 149.05 points or 0.72%, to settle at 20498.25, while the CNX Nifty lost 46.55 points or 0.76% to settle at 6,073.70.