State support will remain crucial for public banks - considering the shallow domestic AT1 market and weak internal capital generation capabilities - as the sector as a whole seeks to raise an estimated USD140bn in new capital required by FY19.
Weak capitalisation and challenges from poor asset quality are to remain significant issues for India's state banks through the medium term, says Fitch Ratings. State support will remain crucial for public banks - considering the shallow domestic AT1 market and weak internal capital generation capabilities - as the sector as a whole seeks to raise an estimated US$140bn in new capital required by FY19. India's public banks have made only modest progress over the past year towards raising the necessary capital to meet Basel III requirements. The weak state of the public banks weighs on India's banking sector as a whole, with core capitalisation generally weaker than regional peers as a result. Average capitalisation at state banks is even worse when adjusted against a significant stressed asset stock and low-to-moderate provision cover. Government contributions will be essential to meet public banks' capital needs. This will be especially the case over the next one to two years as state banks work though the pressures of their stressed assets, and repair their balance sheets. Government's July announcement to inject INR700bn (US$11bn) in core equity through to FY19 - INR250bn in FY16 - will provide state banks with a much-needed immediate capital buffer, but may not provide sufficient support over the long term. Notably, government's capital plan calls for public banks to raise 60% of their required capital in the market, and this may be overly ambitious when considering the current state of their asset quality and valuations. The domestic AT1 market lacks depth and liquidity, which has been a constraining factor for public banks to raise substantial amounts of new capital. Domestic investor interest has been limited, with state banks not issuing any AT1 instruments in the market since March 2015. Fitch believes there is a growing mismatch between investor expectations and the level that banks are willing to pay for loss-absorbing instruments. The ability of the domestic market to meet the capital needs of the public banks remains uncertain, and it is only a matter of time before public banks seek AT1 funds internationally. The 31 August decision by the RBI to designate State Bank of India and ICICI Bank as Domestic Systemically Important Banks (DSIBs) reflects in part some of the broader capital challenges in India. The fact that the RBI designated only two banks as DSIBs reflects the already large capital requirement and the broader challenges financial institutions will face in meeting it. Fitch expects more banks to be designated DSIBs in future. India's private banks are in a much stronger capital position, and do not face the enormous challenges of their public counterparts. The private-sector banks already benefit from stronger capitalisation, high internal accruals, higher equity valuations and much lower asset-quality issues. They have also been proactive in raising core equity at regular intervals.
The company has set up a milk processing unit in Munger (Bihar), and also plans to set up similar dairy processing facilities in other parts of the country.
ITC has rallied 1.8 percent to touch a high of Rs. 323 as the company is all set to foray into the dairy business and the FMCG major will mark its entry in this segment by introducing ghee products by the end of September. The counter has seen trades of around 116,000 shares as against the two-week daily average volume of around 451,000 shares on the BSE.Meanwhile, the Sensex is up 64 points to 25,760.The company has set up a milk processing unit in Munger (Bihar), and also plans to set up similar dairy processing facilities in other parts of the country.
According to reports, Bombay HC approved merger with CMC. On Tuesday, the IT Company announced the inauguration of a Japan-centric Delivery Center (JDC), located within TCS Sahyadri Park in Pune.
TCS Ltd were trading higher 2.6% at Rs. 1,712 on BSE today. According to media reports, Bombay HC approved merger with CMC. On Tuesday, the IT Company announced the inauguration of a Japan-centric Delivery Center (JDC), located within TCS Sahyadri Park in Pune.The stock opened at Rs. 2,560 as against the previous close of Rs. 2,539 on BSE. It has hit a high of Rs. 2,619 and a low of Rs. 2,547 on BSE today.Total traded quantity on the counter stood at over 0.33 lk shares on BSE.Meanwhile, the BSE Sensex is up 29 points at 26,726.
The Government first moved earlier to buy conventional power by inviting bids and then promoted solar energy. We are delighted about being part of UP’s Vision 2016 and our contribution to it.”
Hindustan Powerprojects (HPP) – one of India’s leading integrated power companies – announced that it has commenced supply of 361 megawatt power to Uttar Pradesh from its flagship 2,520 MW Anuppur Thermal Power Project more than a year ahead of schedule. The power is being supplied through the recently-commissioned WR-NR Inter-Regional link (765 kV Gwalior-Jaipur Transmission Line). With this supply, HPP becomes the first Inter-Regional Independent Power Producer (IPP) to supply power to UP on long-term basis, among the Case-1 PPAs (power purchase agreements) signed by the State for an aggregate capacity of 2,175 MW.Commenting on the achievement, Ratul Puri, Chairman – Hindustan Powerprojects, said: “The UP Government has followed a well thought-out strategy to solve the State’s challenging energy situation. Recognizing the limited availability of coal and, thereby, the inability to ramp up thermal production, the Government first moved earlier to buy conventional power by inviting bids and then promoted solar energy. We are delighted about being part of UP’s Vision 2016 and our contribution to it.”Ravi Arya, President (Commercial & Business Development) – Hindustan Powerprojects, revealed: “Commissioning of the Anuppur Power Plant and the 765 kV Gwalior-Jaipur Transmission Line proved to be most critical in our supplying power to UP. This was based upon the Case 1 Bid invited by the UP Government where we had participated.”The total capacity of the flagship thermal plant is 2,520 MW – to be developed in two phases of 1,200 MW (2x600 MW) and 1,320 MW (2x660 MW). The Unit-1 of the first phase has been commissioned at a very competitive Cost.Project highlights:One-of-its-kind hydro bins, ESP technology and disposal mechanism.Direct project connectivity with the National Grid to enhance reliability and cost effectiveness, while minimizing system losses.Highly sophisticated thermal power plant construction and erection process via deployment of state-of-the-art mechanized equipment.
WBCSD and Tata group’s unified partnership will create an opportunity for both organizations to learn from each other about emerging best practices in the field of sustainability.
Today, Tata group became the newest member of the World Business Council for Sustainable Development (WBCSD), joining some 200 other forward thinking companies all focused on creating a better world. WBCSD and Tata group’s unified partnership will create an opportunity for both organizations to learn from each other about emerging best practices in the field of sustainability. Dr. Mukund Rajan, Brand Custodian and Chief Ethics Officer, Tata Sons said, “We are extremely pleased to partner with WBCSD. Our mission statement underscores long term stakeholder value creation, and our recently unveiled sustainability policy highlights our commitment to integrate sustainability considerations into all of our business decisions and key work processes. “With over half a million employees and a footprint across more than a hundred countries, we recognize that Tata can be a powerful force not only for doing good business but being in the business of doing good. We look forward to working with WBCSD and playing our role in shaping a sustainable future for all of us.” Peter Bakker, WBCSD’s President and CEO, is optimistic about the partnership as well. “As one of India’s well known success stories, Tata’s commitment to sustainability has the capacity to influence a wide range of industries- pushing sustainable development forward through their impressive global reach. We look forward to sharing our experiences and to learning from each other in what I’m sure will be a powerful partnership to advance sustainable business around the world.”
Ratings agency Fitch has downgraded viability rating of state-owned Punjab National Bank by a notch while affirming ratings on nine other banks, including SBI and ICICI Bank.Yes Bank said it will enter the credit card space by June and has appointed former HDFC Bank executive Rajanish Prabhu to lead the division, as it announced a new organisational structure to boost retail and corporate banking.Larsen & Toubro has bagged an order worth Rs 10.7bn to build tracks for the Riyadh metro project in Saudi Arabia, the engineering major said.Inox Wind said it has bagged an order for a 100 MW wind power project at Lahori in Madhya Pradesh from Ostro Energy. Maruti Suzuki launched its first hybrid vehicle by upgrading the diesel Ciaz with hybrid features at a price cheaper by up to Rs 20,500 than the existing diesel variant that is being phased out.Attivo Economic Zones, part of Srei Infrastructure Finance and in the business of developing managing and marketing industrial parks, has acquired AMRL Hitech City, a multi-product Special Economic Zone (SEZ) at Nanguneri in Tamil Nadu.Welspun Corp said its shareholders have approved borrowing up to Rs 5bn through issuance of securities.Sun Pharmaceuticals has completed the acquisition of GSK's opiates manufacturing facilities in Australia.
Check out the companies which will be in focus during trade today based on recent and latest news developments.
Tata Motors: The automotive manufacturing company continued to witness strong year-on-year growth in certain key segments in August 2015, with passenger cars (excluding UV’s), M&HCV and Exports, growing by 19%, 31% and 16%, respectively.Yes Bank: The said it will enter the credit card space by June and has appointed former HDFC Bank executive Rajanish Prabhu to lead the division, as it announced a new organisational structure to boost retail and corporate banking.Max India: The company is in talks with four private equity firms for the sale of 22% stake in Max Life Insurance. The stake sale may fetch about Rs. 4,000 crore.Larsen & Toubro: The company has bagged an order worth Rs 10.7bn to build tracks for the Riyadh metro project in Saudi Arabia, the engineering major said.Maruti Suzuki: The company launched its first hybrid vehicle by upgrading the diesel Ciaz with hybrid features at a price cheaper by up to Rs 20,500 than the existing diesel variant that is being phased out.DLF Ltd: The shareholders has approved the resolution to create charge, lien or pledge on its over 50 per cent shares in three subsidiaries, holding rental commercial assets, for raising up to Rs. 7,500 crore.Welspun Corp: The company said its shareholders have approved borrowing up to Rs. 5bn through issuance of securities.Coal India Ltd: The company recorded an output of 36.21 million tonnes (MT) in August as against a production target of 37.65 MT. It has achieved an output of 192.37 MT in the first five months of the current fiscal year, missing its target of 196.73 MT.Emami Infrastructure Ltd: The company informed BSE that the Board of Directors has considered and approved the Scheme of Amalgamation ("Scheme") of its wholly-owned subsidiary companies, Emami Realty Limited and Emami Rainbow Niketan Private Limited with itself.Hero MotoCorp Ltd: The company reported 14% decline in sales at 4,80,537 units in August. The company had sold 5,58,609 units in the same month last year, the company said.Punj Lloy: The company is planning to expand Gwalior facility. The group is also planning to investment in the range of up to Rs 2,000 crore depending on the opportunity.Info Edge Ltd: The promoter of Naukri.com, has got approval from the RBI to raise the limit of foreign shareholding to 50 per cent of its paid-up capital.Cipla Ltd: The company appointed former head of Dr Reddy's North American business Umang Vohra as its Global Chief Financial and Strategy Officer.TVS Motor Company Ltd: The two-wheeler company reported a marginal increase in two-wheeler sales during the month of August 2015 at 216,781 units as compared to 215,244 units, a year ago.Infosys Ltd: The company said that it is embracing automation in massive way but in early stages. Win rates in large deals have doubled compared to year back.Bharati Shipyard Ltd: Edelweiss Asset Reconstruction Company, an arm of Edelweiss group that deals with junk loan, has acquired management control of Bharati Shipyard that has fallen in bad times, as per media reports.Inox Wind: The company said it has bagged an order for a 100 MW wind power project at Lahori in Madhya Pradesh from Ostro Energy.Sun Pharmaceuticals: The pharma company has completed the acquisition of GSK's opiates manufacturing facilities in Australia.
The BSE Mid-cap Index is trading up 0.31% at 10,556, whereas BSE Small-cap Index is trading up 0.76% at 10,733.
Buy in September may be part of an old market adage and the constant crashes may make stocks attractive but investors are shying away from equities world over as selling grips stock markets.At 9:20 AM, the S&P BSE Sensex is trading at 25,866 up 169 points, while NSE Nifty is trading at 7,839 up 53 points.Asian markets are in the red. US stocks sank yet again on Tuesday with the blue chips registering their third biggest loss for the year, as investors turned jittery following downbeat economic data out of China. The S&P 500 index nosedived 58.33 points, or 3%, to end at 1,913, with all of its 10 sectors in the red. The Dow Jones Industrial Average lost 469.68 points, or 2.8%, to close at 16,058.35. All 30 of its components closed lower. The Nasdaq Composite index plunged 140.40 points, or 2.9%, to settle at 4,636.10.Tuesday marked the third-biggest daily drop of the year for the S&P 500 and the Dow, while for the Nasdaq, it was the third worst percentage decline. Also, the Nasdaq fell into negative territory for the year following Tuesday’s sharp fall. The Shanghai stock market will be closed Thursday and Friday as China commemorates the 70th anniversary of the end of World War IIEl Niño is now the strongest since 1997-98, according to the Australian Bureau of Meteorology. The temperature anomalies in the tropical Pacific Ocean remain a little more than half a degree below the peak observed during 1997-98, the bureau said in its update on Tuesday.Ten central trade unions will on Wednesday go ahead with their one-day nationwide strike despite appeal from the Government for calling off the agitation. The nationwide strike is likely to affect the functioning of essential services like banking, transport and supply of power, gas and oil.Maruti Suzuki, has launched the Ciaz hybrid at a starting price of Rs 8.23 lakh (Ex-showroom Delhi).Tata Consultancy Services (TCS) announced the inauguration of a Japan-centric Delivery Center (JDC), located within TCS Sahyadri Park in Pune. The new center augments delivery capabilities of TCS’ 2,400 strong Japan-based workforce, established in July 2014 in joint venture with Mitsubishi Corporation as part of a strategic expansion in the Japan market.ATF or jet fuel price was slashed by a steep 11.7%, while rates of non-subsidised cooking gas LPG were reduced by Rs 25.5 per cylinder.The Non-subsidised domestic LPG rated was reduced by Rs. 25.5 per cylinder.The Non-subsidised cooking gas (LPG) price in Delhi has been reduced to Rs. 559.50 per cylinder as compared to Rs 585 previously.
