ICICI Bank says to cut base lending rate by 25 basis points to 9.75%

SBI and HDFC Bank Ltd to lower base lending rates by 15% each

ICICI Bank Ltd, India's biggest private sector lender by assets, will cut its base lending rate by 25 basis points to 9.75 percent, effective Friday, it said on Tuesday. 

ICICI Bank's move followed announcements by market leader State Bank of India and second-biggest private sector lender HDFC Bank Ltd to lower base lending rates by 15 percent each. 

The Reserve Bank of India kept its key policy rate on hold on Tuesday and Governor Raghuram Rajan voiced impatience that few banks had lowered their lending rates despite two policy rate cuts earlier this year. 

Dr. Reddy’s Lab, Promius Pharma announces filing of three NDAs with USFDA

The three NDAs - DFD-01, DFD-09, and DFN-11, are in support of Dr. Reddy’s Proprietary Products group, focused on developing and commercializing therapies in dermatology and neurology. 

Dr. Reddy's Laboratories and its subsidiary, Promius Pharma, LLC announced the filing of three 505(b)(2) New Drug Applications (NDAs) with the U.S. Food and Drug Administration (US FDA).

The three NDAs - DFD-01, DFD-09, and DFN-11, are in support of Dr. Reddy’s Proprietary Products group, focused on developing and commercializing therapies in dermatology and neurology.

DFD-01 and DFD-09 are the first dermatology applications submitted to the NDA that have been fully developed leveraging in-house capabilities.

DFD-01 is a corticosteroid delivered in a novel non-irritating spray platform, intended for the treatment of patients suffering from psoriasis. 

DFD-09 is a modified release oral tetracycline intended for the treatment of rosacea.

 DFN-11 is the first development program filed in support of a newly created vertical, focused on the US neurology market. 

DFN-11 is a drug-device combination product intended to treat acute migraine episodes in certain patient populations who are inadequately managed with existing treatment regimens.

Commenting on the filings, Raghav Chari, Executive Vice President of Proprietary Products at Dr. Reddy’s and President of Promius Pharma said: “These products potentially represent new, compelling options for specific segments of patients suffering from Psoriasis, Rosacea and Migraine. They are also the first of a large basket of products targeting conditions predominantly treated by the medical dermatologist and neurologist. By focusing exclusively on these two specialty therapeutic areas, we intend to build a leading presence in them over time.”

Upon approval, the products will be commercialized by Promius Pharma

Lakshmi Vilas Bank cuts base Rate by 0.15 % to 11.10 %

This will be effective from 14th April 2015.

Lakshmi Vilas Bank cuts Base rate by 0.15 % to 11.10 % effective 14th April 2015.

The stock was down 1% at Rs 103.

The stock has hit a high of Rs 104 and a low of Rs 103.

REC OFS fully subscribed

The indicative Price was at Rs.316/Sh as compared to Floor Price Of Rs.315/Share.

Rural Electrification Corporation OFS was fully subscribed. 

The indicative Price was at Rs.316/Sh as compared to Floor Price Of Rs.315/Share.

Earlier the company announced that the Floor Price of the Offer in terms of the SEBI OFS circulars shall be Rs. 315/- per equity share of Rural Electrification Corporation Ltd.

Axis Bank cuts base rate by 20 bps to 9.95%

Apart from Axis Bank, ICICI Bank, HDFC and SBI have also reduced rates. The move comes after Dr. Raghuram Rajan's criticism of lenders yesterday after he announced the first bi-monthly policy of RBI for 2015-16. 

In a classic case of 'spiral effect', Axis Bank has reduced base rate by 20 bps to 9.95%, following the footsteps of other major banks like SBI and HDFC, after the critical comments by Dr. Raghuram Rajan on the public and private lenders who have failed to pass on the benefits to the consumers, even when the RBI had cut rates. This new rate from Axis Bank will be effective from 13th April, 2015.

SBI lowered its base rate by 15 basis points — from 10% to 9.85%. HDFC Bank lowered its base rate by 15 bps to 9.85%, while ICICI Bank cut it by 25 bps to 9.75%. The SBI rate cut is effective from April 10.

Following SBI and HDFC Bank, small banks such as Lakshmi Vilas Bank have also announced a rate cut.

The cut in interest rates is expected to bring some relief to corporate and retail borrowers including for home and auto loans.

The notion that banks' cost of funds hasn't fallen is "nonsense", RBI governor Dr Raghuram Rajan said at a press conference on Tuesday, coming down heavily on lenders for not passing the benefits of lower interest rates to consumers.

Dr Rajan announced the First Bi-monthly Monetary Policy Statement for 2015-16 on Tuesday. Rajan decided to keep the repo rate unchanged at 7.50 per cent citing banks not transmitting the rate cut to end borrowers.

"I do not see an environment where credit growth is tepid, banks are sitting on money and their marginal cost of funding (has) fallen, the notion that it hasn't fallen is nonsense, it has fallen," Rajan said.

PM launches MUDRA Bank

PM Narendra Mod has announced the launch of MUDRA Bank today. 

PM Narendra Mod has announced the launch of MUDRA Bank today.

Mudra Bank will provide credit up to Rs.10 lakh to small businesses 

Indices in green

The market has managed to hold gains following the opening spurt. The Sensex is now up 81 points at 28,567, and the Nifty has added 30 points to 8,691.

The market has managed to hold gains following the opening spurt. The Sensex is now up 81 points at 28,567, and the Nifty has added 30 points to 8,691.

The India VIX (Volatility) index has jumped 2.2 percent to 14.565.

Index heavyweights - IT majors - Infosys, TCS along with Reliance Industries and ITC are the major contributors.

Among sectors - the FMCG, IT and Realty indices are up over a percent each at 20,978, 12,131 and 232.45, respectively. 

The broader market are also trading on a firm note - the CNX Midcap index has advanced 0.7 percent to 13,487, and the Smallcap index has soared 1.3 percent to 5,981.

The breadth too is fairly positive, with more than 1,000 advancing shares versus 320-odd declining stocks on the NSE.

BPCL is the major gainer in the Nifty-50 space, up over 4 percent at Rs. 829. Coal India has surged 3.3 percent to Rs. 371.

Tech Mahindra and UltraTech Cements have rallied 2.5 percent each to Rs. 670 and Rs. 3,006, respectively. Bharti Airtel has jumped over 2 percent to Rs. 413.

Reliance Industries has advanced 1.8 percent to Rs. 848. Maruti, Asian Paints, TCS, Ambuja Cements, Infosys, HCL Technologies, ACC and Tata Motors are the other prominent gainers.

On the other hand, Sesa Sterlite and ONGC have shed 2 percent each at Rs. 194 and Rs. 313, respectively. 

NMDC has slipped 1.3 percent to Rs. 128. Cairn India, NTPC, Tata Steel and Mahindra & Mahindra are the other notable losers.

Glenmark Generics to pay $1.56 mn each quarter for next 16 quarters to the state of texas

"The settlement amount will not materially impact the organization's cashflow." said Robert Matsuk, President, North America and Global API Business, Glenmark. 

Glenmark Pharmaceuticals Ltd has announced that its subsidiary Glenmark Generics Inc., USA has concluded the pricing investigation by the Texas Attorney General, USA. Under the terms of the agreed settlement, there is no admission of liability. Glenmark Generics will make a payment in 16 equal payments of $1.56 mn each quarter for the next 16 quarters to the state of texas.

"The settlement amount will not materially impact the organization's cashflow." said Robert Matsuk, President, North America and Global API Business, Glenmark. "We remain committed to continuing our mission of providing our customers with the finest generic pharmaceutical products in the US and complying with all applicable state and federal pricing requirements."

Under the settlement agreement, Glenmark must pay the State of Texas a total of $11.25 million for the State's general revenue fund. Because the Medicaid program is jointly funded by the State and U.S taxpayers, the federal government is entitled to a percentage of the settlement proceeds. The federal government's share is also $11.25 million. Additionally, the Texas Attorney General's Office will receive $2.5 million in attorneys' fees and costs."

Nifty above 8,700 levels

Auto, Bankex, Consumer Durables, PSU, IT, TECK, Capital Goods, Power indices are the gainers, while Oil and gas indices is only the loser. 

At 9:23 AM, The Sensex is up 128 points at 28,645, while NSE Nifty is up 41 points at 8,701.

BSE Mid-cap and BSE Small-cap was flat.

Auto, Bankex, PSU, IT, TECK, Consumer Durables, Capital Goods, Power indices are the gainers, while Oil and gas indices is only the loser.

Indian rupee inched lower, as Reserve Bank of India decided to maintain status quo with the interest rate trajectory. The repo rate and the cash reserve ratio remains unchanged at 7.5% and 4% respectively. The central bank has opted to take a pause after hiking interest rates twice this year. RBI is buying time to assess the inflationary pressures and the impact of the unseasonal rains this year on food prices.

Banks with weak balance sheets are buffering their margin to overcome high provisioning requirements from elevated asset quality stress. The central bank has expressed displeasure on the absence of monetary policy transmission so far and thus to make it more effective RBI would be encouraging banks  to move in a time-bound manner to marginal-cost-of-funds-based determination of Base Rate. The detailed guidelines on the same are expected to be issued shortly.

The outlook for growth is improving gradually, according to RBI. Going ahead, the key triggers that would accelerate growth would be the initiatives announced in the Union Budget to boost investment in infrastructure and to improve the business environment, start of the Base Rate reduction cycle by banks given comfortable liquidity conditions and benign outlook on inflation, delivering lower input cost advantages to corporates. The central bank has projected FY16 growth at 7.8%, 30bps higher than 7.5% in FY15, assuming a normal monsoon, continuation of the cyclical upturn in a supportive policy environment and no major structural change or supply shocks.

In the longer horizon, performance of monsoon, government’s policy efforts towards unclogging supply bottlenecks and US monetary policy would also be the key determinants. Overall, we maintain our view that further 75-100bps repo rate cut is possible in the current calendar year.

Nifty 50 companies would disappoint shareholders and creditors with lacklustre growth in sales and profits for the March 2015 quarter, according to estimates by the ET Intelligence Group.