Banking Buzz! RBI lowers repo rate by 25 bps, assures liquidity for banks

The information has been sourced from several leading media publications and curated for the readers for a quick glance

Banks may face problem with shrinking deposits and rising loans

Indian banks are facing a peculiar problem - that deposits growth is at a five decade low, and loans growth is beginning to turn after a five years of continuous fall - probably limiting the fall in borrowing costs as banks may be forced to deposit rates if demand for loans accelerate.

Banks Board can be effective in risk management: KPMG Survey

A majority of the banks in India favour a Banks Board that can help mitigate and manage the risks of thebanking industry, according to a survey conducted by KPMG.

MFIN plans more checks and balances to ward off any possible danger

With the astronomical level of growth being back in the field, theMicrofinance Institutions Network (MFIN), the sector's self-regulator, is planning to put more checks and balances to ward off any possible danger of the sector falling from grace again like in 2010.

RBI Monetary Policy: Reserve Bank cuts repo rate by 25 bps to 6.5%

In line with the expectations of the markets , Reserve Bank of India (RBI), in its First Bi-monthly Policy Statement for the year 2016-17, decided to cut interest rates by 25 bps. The new Repo Rate fixed by RBI is 6.50% , with reverse repo rate being raised to 6%. CRR remains unchanged at 4%. The marginal standing facility (MSF) rate is adjusted to 7.0 per cent. The Bank Rate which is aligned to the MSF rate also stands adjusted to 7.0 per cent.

Borrowing cost to ease as RBI lowers repo rate ensuring easy liquidity for banks

Borrowing cost is likely to come down with Reserve Bank of India resuming the process of monetary easing by loweringrepo rate by 25 basis point in line with market expectation and ensuring easy liquidity for banks.

Banks can’t escape scrutiny if public interest is violated: DRAT

Banks are "not immune from scrutiny", especially if they act against public interest by offering rebates to defaulters, the Debt Recovery Appellate Tribunal said, a ruling that has wide ramifications at a time when lenders are accused of being lenient towards big borrowers such as Vijay Mallya who have failed to repay.

Bank of Maharashtra third among PSBs in rejecting RTI pleas

The Recently published annual report of the Central Information Commissioner (CIC) throws up interesting trends about the performance of public sector banks (PSB)s when it comes to dealing with RTI applications. Of the 24 PSBs, 10 have reported decrease in the number of RTI applications received for the year 2014-15 with the Pune-headquartered Bank of Maharashtra leading the fray. 

Lupin launches first product from GAVIS pipeline, exclusivity of 180 days

Zolpidem Sublingual Tablets, 1.75 mg and 3.5 mg are AB-rated generic equivalent of Purdue Pharma L.P’s Intermezzo Sublingual Tablets, 1.75 mg & 3.5 mg and is indicated for use as needed for the treatment of insomnia when a middle-of-the-night awakening is followed by difficulty returning to sleep. 

Pharma major Lupin announced today that its US subsidiary, Lupin Pharmaceuticals Inc. (collectively Lupin) has launched the first product from its GAVIS pipeline, Zolpidem Sublingual Tablets, 1.75 mg & 3.5 mg to market a generic equivalent of Purdue Pharma L.P’s Intermezzo Sublingual Tablets, 1.75 mg & 3.5 mg, having received final approval from the United States Food & Drug Administration (FDA) earlier, as well as final clearance from the FTC with 180 days of exclusivity.

Zolpidem Sublingual Tablets, 1.75 mg and 3.5 mg are AB-rated generic equivalent of Purdue Pharma L.P’s Intermezzo Sublingual Tablets, 1.75 mg & 3.5 mg and is indicated for use as needed for the treatment of insomnia when a middle-of-the-night awakening is followed by difficulty returning to sleep.

Intermezzo had US sales of USD 9.46 million (IMS MAT December 2015).

Lupin Ltd is currently trading at Rs. 1466, up by Rs. 4.7 or 0.32% from its previous closing of Rs. 1461.3 on the BSE.

The scrip opened at Rs. 1465 and has touched a high and low of Rs. 1478.25 and Rs. 1447 respectively. So far 1736787(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 65843.69 crore.

The BSE group 'A' stock of face value Rs. 2 has touched a 52 week high of Rs. 2127 on 06-Oct-2015 and a 52 week low of Rs. 1294.05 on 29-Mar-2016. Last one week high and low of the scrip stood at Rs. 1502.55 and Rs. 1294.05 respectively.

The promoters holding in the company stood at 46.53 % while Institutions and Non-Institutions held 43.56 % and 9.92 % respectively.

The stock is currently trading below its 200 DMA. 

ONGC gets green nod for drilling project In Gujarat

According to the proposal, wells would be drilled in blocks CB-CNN-2010/1, 6 and 9, says report 

ONGC has received green nod for Rs. 350-crore project of drilling 22 exploratory wells in NELP-9 blocks located at Banaskantha, Gandhinagar and Ahmedabad districts of Gujarat, according to reports.

Report says that according to the proposal, wells would be drilled in blocks CB-CNN-2010/1, 6 and 9.

The petroleum exploratory licence to start the activities as per the production sharing contract (PSC) was granted in February 2013 and the initial contract period is seven years, says report.

The total cost of the project is Rs 350 crore.

NSE comes under Sebi panel’s lens

Post unearthing evidence that some traders on the exchange had illicit access to market data and trading systems, the Securities and Exchange Board of India’s (Sebi’s) technical advisory committee has recommended action against NSE. 

National Stock Exchange (NSE), India’s largest bourse seems to have been pulled up by the Securities and Exchange Board of India.

Post unearthing evidence that some traders on the exchange had illicit access to market data and trading systems, the Securities and Exchange Board of India’s (Sebi’s) technical advisory committee has recommended action against NSE, 

The capital market regulator has also been asked by the committee to find out if there was a “collusion” between NSE officials and a trading firm, OPG Securities, the report said.

In its meeting last month, the regulator had accused NSE of violating the norms by providing unfair access to traders thereby benefiting brokers. However, the exchange has denied the persistent allegations, as per the report.

Immediate action on the lapses by NSE’s could be taken under the committee's guidance. Additionally, a team consisting of members relevant to resolve the issue could be formed by the regulator for a more effectual investigation, industry experts believe, added the report. 

RBI: Cuts Minimum Daily Maintenance of CRR to 90%

RBI Governor Raghuram Rajan said that it has reduced Minimum Daily Maintenance of CRR to 90%.

RBI Governor Raghuram Rajan said that it has reduced the minimum daily maintenance of the cash reserve ratio (CRR) from 95 per cent of the requirement to 90 per cent with effect from the fortnight beginning April 16, 2016, while keeping the CRR unchanged at 4.0 per cent of net demand and time liabilities. 

RBI: Expects economy to grow by 7.6% in FY17

RBI Governor Raghuram Rajan said that it expects economy to grow by 7.6%.

RBI Governor Raghuram Rajan said that it expects economy to grow by 7.6% in FY17.

The uneven recovery in growth in 2015-16 is likely to strengthen gradually into 2016-17, assuming a normal monsoon, the likely boost to consumption demand from the implementation of the 7th Pay Commission recommendations and OROP, andcontinuing monetary policy accommodation. 

After two consecutive years of deficient monsoon, a normal monsoon would work as a favourable supply shock, strengthening rural demand and augmenting the supply of farm products that also influence inflation. On the other hand, the fading impact of lower input costs on value addition in manufacturing, persisting corporate sector stress and risk aversion in the banking system, and the weaker global growth and trade outlook could impart a downside to growth outcomes going forward. The GVA growth projection for 2016-17 is accordingly retained at 7.6 per cent.

RBI: Expect CPI Inflation to remain around 5% in 2016-17

RBI Governor Raghuram Rajan said that the central bank expects CPI Inflation to remain around 5%.

RBI Governor Raghuram Rajan said that it expect CPI Inflation to remain around 5% In 2016-17.

CPI inflation excluding food and fuel edged up in February, mainly under
housing, education, personal care and transport and communication, suggesting
capacity constraints in the services sector. Excluding petrol and diesel from this
category, inflation stayed elevated and persistent at or above 5 per cent, indicating a
possible resistance level for further downward movements in the headline. The
stubborn underlying inflation momentum is unlikely to be helped by the 7th Pay
Commission award and the effects of the one-rank-one-pension (OROP) award, or
by the cost-push effect of the increase in the service tax rate. However, rural wage
growth as well as the rate of increase in corporate staff costs was moderate. Also,
input and output prices polled in purchasing managers’ surveys rose modestly for
manufacturing and services. 

Adani Ports slumps 3%; receives TN approval to acquire Kattupalli port

The company has won approval from the Tamil Nadu government to acquire Kattupalli port located at Ennore near Chennai from L&T Shipbuilding Ltd, according to reports. 

Adani Ports and Special Economic Zone Ltd stock was lower by 3% at Rs. 236. The company has won approval from the Tamil Nadu government to acquire Kattupalli port located at Ennore near Chennai from L&T Shipbuilding Ltd, according to reports.

The scrip opened at Rs. 242.5 and has touched a high and low of Rs. 242.65 and Rs. 234.65 respectively. So far 737952(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 50210.23 crore.

The BSE group 'A' stock of face value Rs. 2 has touched a 52 week high of Rs. 374.7 on 20-Aug-2015 and a 52 week low of Rs. 169.65 on 12-Feb-2016. Last one week high and low of the scrip stood at Rs. 249.8 and Rs. 234 respectively.

The promoters holding in the company stood at 56.26 % while Institutions and Non-Institutions held 38.08 % and 5.66 % respectively.

The stock is currently trading above its 200 DMA.

RBI Monetary Policy: Reserve Bank cuts repo rate by 25 bps to 6.5%

With the Finance Minister Arun Jaitley sticking to the fiscal deficit target of 3.5% in his Budget speech, the onus was on the RBI to take advantage of the situation and cut interest rates 

In line with the expectations of the markets and analysts, Reserve Bank of India (RBI), in its First Bi-monthly Policy Statement for the year 2016-17, decided to cut interest rates by 25 bps. The new Repo Rate fixed by RBI is 6.50% , with reverse repo rate being raised to 6%. 

With the Finance Minister Arun Jaitley sticking to the fiscal deficit target of 3.5% in his Budget speech, the onus was on the RBI to take advantage of the situation and cut interest rates. The government, in a further bold move, had pared the small savings interest rate by up to 1.3 per cent providing cushion to the Reserve Bank for cutting the policy rate.

There was a general consensus of the rate cut, with a poll of Reuters expecting the RBI to cut the repo rate to 6.50 per cent - the lowest since January 2011. RBI had cut rates last time on September 29 to an effect of 50bps, pleasantly surprising the markets. 

India's consumer inflation during February eased to 5.18%, when compared with the reading of 5.69% in January. The inflation rates for rural and urban areas for February were reported at 5.97% and 4.3% respectively, as compared to 6.48% and 4.81% during the prior month. Meanwhile, India’s current account deficit during October-December period (Q3 FY16) narrowed to 1.3%, when compared with the reading of 1.5% during the same period last financial year. On the negative side, India's industrial output during January contracted 1.5% on yoy basis. On broader front, Indian economy grew 7.3% during the third quarter of the current fiscal year, slower than the upwardly revised reading of 7.7% during the prior quarter. However, Indian government is projecting growth for FY2015-16 at 7.6%, better than the growth rate of 7.2% during the previous fiscal year. 

Equitas Holdings raises Rs. 653 crore from anchor investors

The company allotted 5.93 crore shares at Rs.110 per share 

Equitas Holdings raised Rs. 653 crore from anchor investorses Rs. 653 crore from anchor investors

The company allotted 5.93 crore shares at Rs.110 per share

The anchor investors included  Franklin Templeton MF, Birla Sun Life Trustee Co, SBI MF, PI Opportunities Fund, UTI MF, ICICI Prudential MF, Kotak Mahindra MF, HDFC Standard Life Insurance, Birla Sun Life Insurance, Sundaram MF, Tata AIA Life Insurance, Reliance Life Insurance and Ambit Alpha Fund.

Top 14 stocks in focus today: Maruti Suzuki, Lupin, IOC

Check out the companies which will be in focus during trade today based on recent and latest news developments. 

IOC, BPCL, HPCL: The oil marketing companies have increased the price of petrol by Rs.2.19 per litre while it hiked the price of diesel by Rs.0.98 per litre. 

Maruti Suzuki: Maruti Suzuki India expects to clock double-digit growth in sales in FY17 as well, Executive Director (ED) Randhir Singh Kalsi has been quoted as saying.

Strides Shasun: Strides Shasun has closed the deal with Moberg Pharma, wherein the Indian pharma major has acquired 3 brands from Moberg for US$ 10 million.

Ricoh India: The company informed BSE that Mr Manoj Kumar has resigned from the Board of Directors of the Company with effect from April 02, 2016. He had been asked to go on leave on the March 29, 2016 by the decision of the Board of Directors.

Banking stocks in focus:  The Reserve Bank of India (RBI) Governor Raghuram Rajan will announce its monetary policy today.

Mphasis: Private equity firm Blackstone said it struck a deal with Hewlett-Packard Enterprises to buy a majority stake in Mphasis, putting an end to the buyout battle for the Indian IT firm.

Aurionpro: Aurionpro has announced the completion of sale of its IT Services business in USA to Saicon Consultants Inc., a leading professional services company effective immediately.

Power Grid Corporation of India:The company said its board has given approval to investment proposals worth Rs. 3,324 crore, including Rs. 845 crore generation projects in Odisha and Rs 810 crore solar park in Karnataka.

Mahindra and Mahindra: Mahindra and Mahindra launched the Nuvo Sport compact sport utility vehicle. With prices starting at Rs.7.35 lakh (ex-showroom,Thane), Nuvo will be powered by a 1.5 litre mHawk engine, and replace the Quanto, the company’s first sub-four meter SUV offering launched in 2012. Mahindra has pitted the model against the Ford Ecosport.

Hindustan Unilever Ltd: FMCG major Hindustan Unilever has completed sale of its bread and bakery business under 'Modern' brand to Everstone Group's Nimman Foods Pvt Ltd.

Vedanta: Standard & Poor's Ratings Services said that it had affirmed its 'B' foreign currency long-term corporate credit rating on Vedanta Resources PLC.

Kitex Garments Ltd: Kitex Garments Ltd posted Q4 net profit for the quarter stands at Rs.45 crore

Torrent Pharma: Hyderabad-based specialty injectable drugmaker Gland Pharma has attracted bids from top drugmakers, including Torrent Pharma and US-based Baxter, says a business daily.

Lupin Ltd: Lupin Ltd is looking for acquisitions in Japan to maintain its lead in a bid to counter the threat from the entry of Sun Pharmaceutical Industries in that market, reports a business daily.

JSW Steel: Fitch Ratings downgraded Sajjan Jindal-led JSW Steel one notch to 'BB' from 'BB+', citing a decline in profitability and rise in leverage caused due to a prolonged period of weak international steel prices and debt-funded capacity expansion.


MBL Infrastructures: Construction firm MBL Infrastructures has bagged road development projects worth Rs 2,126 crore from NHAI in Uttarakhand and Uttar Pradesh.”MBL Infrastructures Ltd has been awarded the following projects on DBFOT (Design-Build-Finance-Operate-Transfer) Hybrid Annuity basis by the National Highways Authority of India (NHAI) worth Rs 2,126 crore,” the company said.

Cox and Kings Ltd: Cox and Kings Ltd, one of the oldest travel agents in India, has sold a majority stake in its subsidiaries—hotel booking website LateRooms UK Ltd and short break specialist firm Superbreak, the company informed the exchanges on Monday.

NTPC : State-run power producer NTPC said water scarcity has forced temporary closure of its power plant at Farakka, West Bengal, but it will not affect power supply to the state. The Board of Directors of the Company at its meeting held on March 30, 2016 as accorded investment approval for:- Mand saur Solar PV Project (5x50 MW) in the state of Madhya Pradesh at an appraised estimated cost of Rs. 1,502.77 Crore; and (ii) Bhadla Solar PV Project (4x65 MW) in the state of Rajasthan at an appraised estimated cost of Rs. 1,601.27 Crore.

Bajaj Auto: The auto company reported a 26 per cent increase in motorcycle sales at 2,64,249 units in March. 

All eyes on RBI Monetary policy

A 25 basis points cut in the policy interest rates by the Reserve Bank of India (RBI) is almost given, but the real impact of falling lending cost can be felt only if the central bank goes in for a bold reduction of at least 50 bps, an overwhelming majority of CEOs polled in an ASSOCHAM survey pointed out. 

All eyes are on RBI Monetary policy today. The Reserve Bank of India (RBI) Governor Raghuram Rajan will announce its monetary policy today.

A 25 basis points cut in the policy interest rates by the Reserve Bank of India (RBI) is almost given, but the real impact of falling lending cost can be felt only if the central bank goes in for a bold reduction of at least 50 bps, an overwhelming majority of CEOs polled in an ASSOCHAM survey pointed out.

Banks to invite bidders for controlling stake in ABG Shipyard

The banks are actively pursuing the possibility of a change of ownership and management at ABG Shipyard, says the paper

Lenders to ABG Shipyard Ltd have decided to issue a public notice inviting expression of interest (EOI) from buyers keen to pick up a controlling stake in the company, reports a business daily.

“We are going for an open process since it is more transparent and we will get a better sense of the valuation of the company this way,” one banker close to the development has been quoted as saying.

“Initially, when we were going through a closed process, we could not find that many buyers. The discussions with the Vietnamese investors is still on, though we are doing this open process to see if any surprises come up,” the banker told the financial newspaper.

On 9th March, the paper had reported that the lending consortium was in discussions with a Vietnamese financial investor to sell a majority stake in ABG, after they invoked the strategic debt restructuring (SDR) provision in December.

The consortium is led by ICICI Bank and State Bank of India (SBI).

The banks are actively pursuing the possibility of a change of ownership and management at ABG Shipyard, says the paper.

Another option that banks are exploring is to sell the assets of ABG Shipyard to recover their money, it adds.

ABG’s CDR was one of the largest loan recasts undertaken in recent years by India’s banks, second only to the INR 13,500 crore debt reorganization done for Gammon India in July 2013.