RBI prescribes uniform norms against bank fraud cases

The RBI can initiate action in case where a bank has delayed in reporting a fraud or provisioning there against. 

The Reserve Bank of India has decided to prescribe a uniform provisioning norm in respect of all cases of frauds, where the entire amount due to the bank is to be provided for over a period not exceeding four quarters commencing with the quarter in which fraud has been detected.

“It has been decided to prescribe a uniform provisioning norm in respect of all cases of fraud,” RBI said in a notification on Thursday.

In case there’s a delay beyond the prescribed period in reporting the fraud to the Reserve Bank, the entire provisioning is required to be made at once.

The RBI can initiate action in case where a bank has delayed in reporting a fraud or provisioning there against.

Fire at GAIL pipeline in Delhi

The incident occurred due to a third party drilling activity without prior permission taken by the agency from GAIL, in spite of the pipeline warning markers located in close proximity to the site. 

There was an incident of fire on the DESU – Maruti pipeline of GAIL (India) Limited near Venkateswara College, Dhaulakuan, New Delhi around 9.45 a.m. today.

The incident occurred due to a third party drilling activity without prior permission taken by the agency from GAIL,  in spite of the pipeline warning markers located in close proximity to the site.

Immediately on receiving the information, GAIL’s pipeline sectionizing valves were closed by remote operation from the regional control room. With the support of Delhi Fire services and IGL Fire Tenders, the fire was extinguished by 11.10 a.m. The Army Supply Corps located in the vicinity also rendered support.  There have been no casualties. However, the fire damaged a couple of vehicles parked nearby. 

Mr. B C Tripathi, Chairman & Managing Director, GAIL and Dr. Ashutosh Karnatak, Director (Projects), GAIL immediately rushed to the spot and took immediate control of the situation.  Site engineers,  safety personnel of GAIL and IGL and GAIL Emergency Response Vehicle also reached the site.

Because of the incident, some CNG stations of IGL may get affected temporarily and efforts are being made to restore gas supply at the earliest. Restoration work of the pipeline has already started.

Shipping Corp Board to meet on May 21 India Infoline News Service | Mumbai | May 18, 2015 12:49 IST

Shipping Corporation of India Ltd has announced that a meeting the Board of Directors of the Company scheduled to be held on May 21, 2015, may discuss the agenda w.r.t. revision in useful life of the vessels of SCI.

Shipping Corporation of India Ltd has announced that a meeting the Board of Directors of the Company scheduled to be held on May 21, 2015, may discuss the agenda w.r.t. revision in useful life of the vessels of SCI

Market cap gains: SBI, HDFC, ONGC clock gains

In a week filled with earthquakes and huge volatility on the bourses, the BSE market cap stood at Rs. 1,01,82,407 crore, while the combined market cap of top seven companies rose by Rs. 34,645.72 crore last week. 

In a week filled with earthquakes and huge volatility on the bourses, the BSE market cap stood at Rs. 1,01,82,407 crore, while the combined market cap of top seven companies rose by Rs. 34,645.72 crore last week.

Markets started off the week on a high as domestic funds were seen lapping up stocks and some extent of short covering provided the market with the much needed respite. However, come Tuesday and indices fell sharply after the Indian currency weakened against the US Dollar.

Stocks which saw their market cap surge include ONGC, HDFC Bank, CIL, Sun Pharmaceutical, Infosys, SBI and HDFC. Those which lost weight among the top 10 Sensex companies were TCS, RIL and ITC.

While SBI’s market cap skyrocketed by Rs. 19,331.66 crore, HDFC saw a rise of Rs. 7,674.51 crore in its market cap.

ONGC gained Rs. 2,395.53 crore and HDFC Bank added Rs. 1,868.34 crore during the week. Coal India Limited managed to add Rs. 1,642.25 crore while Sun Pharma was up by Rs. 1,532 crore. Infosys saw some marginal gains in its market cap with an addition of Rs. 201 crore.

For the week, PSU Bank index surged over 9%, Auto index gained by 4.2%, Bank Nifty gained by 2.5%, Pharma index was up by 1.2%, Small-Cap index gained by 1.1%, FMCG index edged higher by half a percent and Infra index was almost unchanged.

Realty index slipped by 1.6%, Metal index was down by a percent and IT index was slightly lower by half a percent.

Apollo Tyres spurts on future growth plans

The company plans to set up a subsidiary in Malaysia over the next two years in order to increase its global footprint and garner around 15% of the total revenues from exports.

Apollo Tyres has spurted by nearly 2.5 percent to Rs. 175 on future growth plan.

According to reports, the company plans to set up a subsidiary in Malaysia over the next two years in order to increase its global footprint and garner around 15 per cent of the total revenues from exports.

The stock is now up 1.5 percent at Rs. 174. The counter has seen trades of around 45,000 shares as against the two-week daily average volume of around 289,000 shares on the BSE.

Meanwhile, the Sensex has advanced 128 points to 27,452.

Rupee opens at 63.44 against US dollar

The local unit hit a high of 63.40 and a low of 63.56 against the greenback today. 

The Rupee opened today at 63.44 against the US dollar.

The local unit hit a high of 63.40 and a low of 63.56 against the greenback today.

The FIIs were net sellers of Rs383mn in the cash segment on Friday. The domestic institutional investors (DIIs) were net buyers of Rs5.64bn, as per the provisional figures released by the NSE.

OMCs jump on hike in fuel prices

According to media reports, the OMCs have increased the retail price of petrol by Rs 3.13 per litre and diesel by Rs 2.71 per litre, citing sharp increase in international prices. 

Shares of oil state-run oil marketing companies (OMCs) are trading on a positive note this morning on the back of fresh hike in fuel prices.

According to media reports, the OMCs have increased the retail price of petrol by Rs 3.13 per litre and diesel by Rs 2.71 per litre, citing sharp increase in international prices.

HPCL has spurted over 2.5 percent to Rs. 619. BPCL and Indian Oil too have jumped 2 percent each to Rs. 781 and Rs. 343, respectively.

Meanwhile, the Sensex has added 86 points to 27,410.

Sensex, Nifty in green; oil & gas, auto stocks gain

The BSE Mid-cap Index is trading up 0.44% at 10,610, whereas BSE Small-cap Index is trading up 0.38% at 11,083. 

At 9:25 AM, the S&P BSE Sensex is trading at 27,406 up 82 points, while NSE Nifty is trading at 8,287 up 24 points.

The BSE Mid-cap Index is trading up 0.44% at 10,610, whereas BSE Small-cap Index is trading up 0.38% at 11,083.

Hindalco Industries, ONGC, M&M, GAIL, BHEL and Dr. Reddy's are among the gainers, whereas Coal India, HUL, Wipro and HDFC are losing sheen on BSE.

FII activity will be in focus as they have pulled out nearly Rs. 17,000 crore in the first two weeks of May. For the Nifty, 8,350 is acting as a tough barrier for almost a month now. Technically speaking, this consolidation at the bottom has taken shape of a bullish Head & Shoulder pattern. A move above the same could result in reversal of the trend. Corporate results on the other hand will continue to pour in with heavyweights like Tata Steel, Colgate and Bajaj Auto to announce their earnings this week.

Global cues are quite subdued. US consumer sentiment fell more than expected in May and was at its lowest since October leading to US indices closing flat. Asian markets are mixed with Japan's Nikkei 225 up while Hong Kong's Hang Seng is trading lower. China's Shanghai index is flat for now.

Infrastructure Leasing & Financial Services (IL& FS) Group has raised $1 billion of financial support from Industrial and Commercial Bank of China, signifying increased collaboration between the two nations. The financial support has come amid Prime Minister Narendra Modi's visit to China. Funds raised will be used toward infrastructure-related financing in India.

SEBI has decided to fix ‘strict timelines’ for completing its enforcement actions and ensuring fast—track refund of money collected fraudulently from the investors, says a report.

The National Stock Exchange will auction investment limit for foreign investors to buy government debt securities worth Rs. 2,684 crore today.

Meanwhile, India’s industrial output growth during March slowed to 2.1%, compared with a reading of 4.1% in February.

The trade deficit for April 2015 was estimated at US $ 10992.30 million which was higher than the deficit of US $ 10085.95 million during April 2014.

Oil imports during April, 2015 were valued at US $ 7442.92  million which was 42.65 per cent lower than oil imports valued at US $ 12977.83 million in the corresponding period last year.

Petrol prices were increased on Friday by Rs 3.13 per litre and diesel by Rs 2.71 per litre.

U.S. shares ended changed on Friday, with the S&P 500 edging up to a record high. The Dow Jones rose 20.32 points, or 0.11 percent, to end at 18,272.56, while Nasdaq Composite dropped 2.50 points, or 0.05 percent, to 5,048.29.

Foreign exchange reserves hit an all-time high of $352.13 billion for the week ending May 8, recording a week-on-week growth of $262.4 million, Reserve bank of India data showed. Foreign currency assets, a key component, rose $262.7 million to $327.42 billion.

Bharti Airtel Limited said that it has received financing commitments of up to USD 2.5 Billion from China Development Bank and Industrial and Commercial Bank of China.The Company signed the term sheets for the financing options in the presence of  Prime Minister of India, Narendra Modi, who is currently on an official visit to China. Subject to final agreements and requisite approvals, Bharti Airtel can draw these funds over a long availability period, depending on its financing requirements. 

Jain Irrigation stock surges 11% on Q4 earnings

The Group has posted a net profit of Rs. 985.30 million for the quarter ended March 31, 2015 as compared to Rs. 753.40 million for the quarter ended March 31, 2014. 

Jain Irrigation stock surged 11% at Rs. 62 after the company posted Q4 results.

The stock has hit a high of Rs. 62 and a low of Rs. 60.

The Group has posted a net profit of Rs. 985.30 million for the quarter ended March 31, 2015 as compared to Rs. 753.40 million for the quarter ended March 31, 2014. 

Total Income has increased from Rs. 18317.70 million for the quarter ended March 31, 2014 to Rs. 20580.90 million for the quarter ended March 31, 2015

NSE to auction debt securities on Monday

The auction for debt securities worth Rs. 2,684 crore would take place on NSE’s e-bid platform from 3.30 pm to 5.30 pm on Monday 

The National Stock Exchange on Monday will auction investment limit for foreign investors to buy government debt securities worth Rs. 2,684 crore.

The auction for debt securities worth Rs. 2,684 crore would take place on NSE’s e-bid platform from 3.30 pm to 5.30 pm after the close of normal market hours on May 18.

“As informed by the depositories the total investment in Government debt (Auction) has reached INR 1,21,748 Crs. on May 14, 2015 (i.e. 97.84 % of total permitted limit of INR 1,24,432 Crs).

Consequently, Exchange shall conduct an auction for the allocation of unutilized debt limits on May 18, 2015,” NSE said in a circular. 

Top corporate news of the day - May 18, 2015

Vedanta is eyeing the expected low interest rates in India to refinance its short-term loans of up to USD1.6bn with long-term options in this fiscal ending March 2016. 

Zuari group is set to have a majority stake of over 53% in Mangalore Chemicals and Fertilisers Ltd as its open offer to buy 36.56% share in the UB group firm for nearly Rs4bn has been successful.

Vedanta is eyeing the expected low interest rates in India to refinance its short-term loans of up to USD1.6bn with long-term options in this fiscal ending March 2016. 

HDIL is in talks to sell about 200 acres of land parcels in Baroda and Hyderabad as part of its strategy to offload non-core assets to improve cash-flows and cut debt.

NTPC and Damodar Valley Corporation have outstanding dues of around Rs90bn to Coal India. 

Apollo Tyres plans to set up a subsidiary in Malaysia over the next two years as the company aims to increase its global footprint to garner around 15% of the total revenues from exports. 

The government may allow a part of the natural gas produced by firms like ONGC and Reliance Industries from new discoveries to be sold at market price as it looks to boost domestic exploration and production.

Tata Power Renewable Energy, a subsidiary of Tata Power Ltd, is set to expand its wind power generation capacity by 150MW this fiscal. This will take the company’s installed capacity to more than 700MW. 

DCM Shriram Group has set its sights firmly on the future with its commodity interests in sugar, seeds and farm solutions set to expand over the next 3-5 years. The conglomerate, however, will not invest resources to further its urea manufacturing business. 

Zop Now has secured the e-commerce based home delivery business of Aditya Birla Retail across its 16 ‘More’ hypermarkets in cities such as Bengaluru, Hyderabad and Kolkata. 

Indraprastha Gas Ltd has hiked the selling price of CNG (for automobiles) and PNG (piped natural gas) by 45 paise a kg and 45 paise per standard cubic metre respectively in Delhi. 

Corporation Bank has dropped plans to take over the assets and liabilities of the ailing Maharashtra-based Rupee Co-operative bank.

SBI Composite Index for May 2015 decelerates to 56.4

The moderate growth in Monthly Index possibly have been helped by growth in IIP-Mining and Capital goods, with a lag. 

In continuation to the launch of the SBI Composite Index on December 9, 2014, State Bank of India herewith releases yearly as well as monthly Composite Index value for the month of May 2015.

The yearly SBI Composite Index for May 2015 decelerated to 56.4 (High growth) from 58.2 (High growth) in April 2015, due to entrenched disinflationary impetus and weak demand. The Monthly Index however inched up from 46.8 (Low decline) in April 2015 to 53.8 (Moderate Growth) in May 2015. The moderate growth in Monthly Index possibly have been helped by growth in IIP-Mining and Capital goods, with a lag.

However, we believe that due to continued tepid credit growth and subdued commercial vehicle sales in recent period, a negative impact may precipitate in June/July 2015 IIP. This will subsequently reflect in our Composite Index values, going forward. We are overtly concerned regarding the weak demand conditions that is refusing to pick up. Inflation numbers will continue to surprise on the downside, with retail inflation likely to be at sub 4% within the next 2-3 months, and this will not be a result of only base effect, as widely believed. This is already undershooting RBI projections (5.8% by Mar’16) by 40-50 basis points as off now. Wholesale prices will remain in deep negative territory for most part of 2015, if not the entire duration.

Though some of the companies have been able to manage top line growth, deterioration in EBIDTAM reflect the kind of strain in the books of the companies. These companies may not be able to continue the same way for a longer period since as competition increase, addition of volume from other than core business may be at a cost and affect bottom line too.

The positive thing is that the Government is planning to come out with several project initiatives. We feel that the infra activities will start possibly from the second half of this year as the Government would be in a position to push the projects and schemes in the next six months. Rating upgrades are seen in Mid-sized companies (Operating Income between Rs 100 crore to Rs 500 crore) showing expectations of better result in 2015-16, that had seen the most stress.

With the Government doing its bit, it is imperative to improve sentiments further through another round of monetary easing. Interestingly, recently Spain, France and Italy growth accelerated on the back of strong household consumption (albeit boosted by energy consumption), defying the negative messages from the persistently weak manufacturing PMIs. Why can’t it also happen in India?

The Index captures two components of the manufacturing cycle namely month-on-month and year-on-year growth on a scale of 0 to 100. Index above 50 implies growth over previous respective period and less than 50 will suggest a contraction over respective period.

Gross tax collections register 9% growth in FY15: Govt

Gross tax collections stand at Rs. 12.45 trillion during 2014-15; Registering a growth of 9% in FY15 as compared to FY13-14

The Government's gross tax collections in FY15 stood at Rs. 12.45 trillion, which has shown a growth of 9% (Rs.1.06 trillion) as compared to FY2013-14. The gross tax collections is 9.8% of GDP, the Finance Ministry said in a statement on Sunday.

Devolution of tax collections to states at the end of 2014-15 is Rs.3.37 trillion which is higher by Rs.19,578 crore over the previous year 2013-14, while the Non Tax Revenue stands at Rs.1.96 trillion (90% of RE).

Non Debt Capital Receipts which includes disinvestment stands at Rs.43,439 crore (103% of RE) and has shown an increase of 4% as compared to the previous year’s collection of Rs.41,865 crore.

Plan Expenditure at the end of 2014-15 stands at Rs.4.35 trillion, whereas Non-Plan Expenditure during the same year has been Rs.11.91 trillion (99.8% of RE). 

Dr. Reddy’s launches Somazina for stroke patients in India

Dr. Reddy’s has partnered with Citicoline, Ferrer Internacional S.A., Spain, to make Somazina available in India. 

Dr. Reddy's Laboratories Ltd announced the launch of Somazina, the innovator brand of Citicoline in the Indian market. Dr. Reddy’s has partnered with the global innovator of Citicoline, Ferrer Internacional S.A., Spain, to make Somazina available in India. This is an important product in the management of stroke and has been used for the treatment of post-stroke patients around the world.

Somazina is indicated for improving cognitive function in patients who have suffered from stroke or cerebral infarction, or who have undergone a brain surgery or have suffered from head injuries. Each year about 15 Lakh people suffer from stroke in India.

 Cerebral Stroke is the third leading cause of deaths in India, as per the Global Burden of Disease Study 2013. "Stroke is a major cause of disability and death in India. There is a pressing need for novel neuroprotective agents which can salvage brain tissue and optimize the functional outcome." said Dr. Subhash Kaul, renowned senior neurologist from NIMS, Hyderabad.

Citicoline is a widely used neuro-protectant to help accelerate the recovery of these patients. It is used in both ischemic and haemorrhagic strokes, and provides a compelling option to physicians treating stroke patients. “Citicoline is safe to use and may have a beneficial effect in stroke patients. Citicoline is the only drug, that in a number of different clinical stroke trials, has had some neuroprotective effect.” shared Dr. Atul Prasad, Director & Sr. Consultant, BLK Super specialty hospital, Delhi.