Tata MF introduces Fixed Maturity Plan Series 48 Scheme B

Tata Mutual Fund has launched the New Fund Offer (NFO) of Tata Fixed Maturity Plan Series 48 Scheme B (370 Days), a close ended income scheme. The NFO opens for subscription on June 09, 2014, and closes on June 16, 2014. No entry load or exit load will be applicable for the scheme. The minimum subscription amount is Rs 5,000.

The scheme’s performance will be benchmarked against CRISIL Short-Term Bond Fund Index and its fund manager is Amit Somani.

The investment objective of the scheme is to generate income and / or capital appreciation by investing in wide range of Fixed Income Instruments having maturity in line with the maturity of the scheme. The maturity of all investments shall be equal to or less than the maturity the scheme.

Call rates edge lower on Monday; but stay higher above repo rate

Interbank call rates were trading lower at 8.30/8.35% versus its close of 8.40/8.45% on Friday as demand ebbed in the second half of reporting cycle. The rates were however higher than repo rate as select banks scrambled to fulfill their product requirements in order to avoid the volatility of rates going further. 

The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 18424 crore through repo auction on June 9. Meanwhile, banks borrowed Rs 2485 crore via repo auction and parked Rs 893 crore via reverse repo window on June 6, 2014.

The overnight borrowing rates touched a high and low of 8.40% and 7.85% respectively.

According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was at 8.11% on Monday and total volume stood at Rs 32673.20 crore, so far.

As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was at 8.18% on Monday and total volume stood at Rs 32551.50 crore, so far.

The indicative call rates which closed 8.40/8.45% on Friday were contributions made from Andhra Bank, AXIS Bank, Bank of America, Bank of Baroda, Bank of India, Canara Bank, J P Morgan Chase, Citibank N.A., Corporation Bank, Credit Agricole Bank, Indusind Bank, ICICI Bank, ICICI Securities, IDBI Bank, Jammu and Kashmir Bank, Punjab National Bank, RBS, Societe Generale, Standard Chartered, so far.

TVS Motor speeds up on BSE

TVS Motor Company is currently trading at Rs. 133.45, up by 2.70 points or 2.07 % from its previous closing of Rs. 130.75 on the BSE.

The scrip opened at Rs. 132.00 and has touched a high and low of Rs. 133.70 and Rs. 130.60 respectively. So far 59332 shares were traded on the counter.

The BSE group 'B' stock of face value Re. 1 has touched a 52 week high of Rs. 139.80 on 29-May-2014 and a 52 week low of Rs. 28.10 on 31-Jul-2013.

Last one week high and low of the scrip stood at Rs. 136.00 and Rs. 124.00 respectively. The current market cap of the company is Rs. 6278.28 crore.

The promoters holding in the company stood at 57.40 % while Institutions and Non-Institutions held 22.16 % and 20.44 % respectively.

Life Insurance of India (LIC) has reduced its stake in TVS Motor Company by selling more than 2% shareholding over a period of around four years. The country’s largest life insurer offloaded 97,12,148 shares, constituting 2.04% stake, through open market transactions.

Following the stake sale, LIC’s stake in TVS Motors has come down to 3.46% from 5.5% earlier. The state-owned insurer offloaded the shares between September 9, 2010 and June 2, 2014.

TVS Motor Company is the flagship of the $6 billion Indian conglomerate, TVS Group which recently celebrated one hundred years in the automotive business in India. The company recently won 'India's Most Trusted Two Wheeler Brand' Award from the Times Group.

Finance Ministry evaluating various options to create robust financial institutions

In order to create much stronger financial institutions, the finance ministry is examining various suggestions made by investment bankers to merge the country's biggest state-run banks. The Ministry is evaluating these proposals which includes consolidation based on geography, business mix and information technology systems.

Among all the proposals, one suggests Punjab National Bank, Indian Bank and Dena Bank be merged to create a bank with an asset base of more than Rs 9 lakh crore, while another possible combination is to merge Bank of India, Allahabad Bank, Corporation Bank, Bank of  Maharashtra and Punjab & Sind Bank.

The basic rationale behind this move is to create large banks with a pan-India presence. However, this decision to form stronger financial institutions will hinge on political more than economic considerations. As a matter of fact, India's banks are still small when compared with global rivals. The country's largest, State Bank of India is ranked 16th in Asia while Bank of Baroda is at 32.

In a separate development, Finance Ministry has kick-started the search process for a 'special counsel' who will have the exclusive mandate to represent the government in tax disputes at the Supreme Court. Further, the Central Board of Direct Taxes has already held preliminary discussions with a few senior standing counsels in this regard and would be discussing the terms of reference with shortlisted candidates as early as next week.

Infosys, Tata Motors and RIL to see some action today

Jet Airways, the country’s premier international airline is planning to sell three of its airbus A330 aircraft. The company is looking at refinancing high-cost rupee debt. The company’s consolidated debt as on March 31, 2014 stood at Rs 10,576 crore. The private carrier posted its highest-ever net loss of Rs 2,154 crore in the fourth quarter ended March 31, impacted by higher operating expenditure and exceptional costs. The country’s second largest carrier had reported a net loss of Rs 496 crore during the same quarter a year ago. Jet Airways currently operates a fleet of 112 aircraft, which include 10 Boeing 777-300 ER aircraft, 8 Airbus A330-200 aircraft, 4 Airbus A330-300 aircraft, 72 next generations Boeing 737-700/800/900/900 ER aircraft and 15 ATR 72-500 and 3 ATR72-600.