Punjab National Bank Q1 PAT down 57.5% to Rs.306 cr; Gross NPA at 13.75%

The bank has posted a net profit of Rs.306 crore for the quarter ended June 30, 2016 as compared to Rs.721 crore for the quarter ended June 30, 2015.

Punjab National Bank has announced the following unaudited standalone results for the quarter ended June 30, 2016:

The bank has posted a net profit of Rs.306 crore for the quarter ended June 30, 2016 as compared to Rs.721 crore for the quarter ended June 30, 2015. The bank's total income has increased from Rs.13,432 crore for the quarter ended June 30, 2015 to Rs 13,930 crore for the quarter ended June 30, 2016.

Stock view:

Punjab National Bank is currently trading at Rs. 133.3, up by Rs. 0.55 or 0.41% from its previous closing of Rs. 132.75 on the BSE.

The scrip opened at Rs. 133.3 and has touched a high and low of Rs. 136.35 and Rs. 132 respectively. So far 18714090(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 26066.76 crore.

The BSE group 'A' stock of face value Rs. 2 has touched a 52 week high of Rs. 180.5 on 17-Aug-2015 and a 52 week low of Rs. 69.4 on 17-Feb-2016. Last one week high and low of the scrip stood at Rs. 134.9 and Rs. 117 respectively.

The promoters holding in the company stood at 62.08 % while Institutions and Non-Institutions held 31.36 % and 6.55 % respectively.

The stock is currently trading above its 200 DMA.

RBI imposes penalty of Rs.2 crore on IndusInd Bank

The Bank has reinforced the control process so as to prevent such occurrences in future.

Indusind Bank Ltd has informed BSE that on the basis of media reports relating to certain irregularities in advance remittance for import / export transactions in the banking system, the Reserve Bank of India conducted a scrutiny under Section 35(1A) of the Banking Regulation Act 1949. A Show Cause Notice was issued, to which the Bank gave a detailed response. After considering the written and oral submissions of the Bank, the RBI has imposed a penalty of Rs.20 million on the Bank, citing grounds of non-adherence to KYC/AML Guidelines.

The Bank has reinforced the control process so as to prevent such occurrences in future.

The scrip opened at Rs. 1178.05 and has touched a high and low of Rs. 1191.15 and Rs. 1173 respectively. So far 222056(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 70209.81 crore.

The BSE group 'A' stock of face value Rs. 10 has touched a 52 week high of Rs. 1182 on 27-Jul-2016 and a 52 week low of Rs. 799 on 11-Feb-2016. Last one week high and low of the scrip stood at Rs. 1182 and Rs. 1105.15 respectively.

The promoters holding in the company stood at 14.88 % while Institutions and Non-Institutions held 55.3 % and 18.97 % respectively.

The stock is currently trading above its 50 DMA.

Top 14 stocks in focus: Sun Pharma, Bharti Airtel, PNB

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

Sun Pharma: Sun Pharma and its wholly owned subsidiary and Almirall announced a licensing agreement on the development and commercialization of tildrakizumab for psoriasis in Europe.

Bharti Airtel: The company reported its net profit rose 70.9% to Rs.756.20 crore in the quarter ended June 2016 as against Rs.442.40 crore during the previous quarter ended June 2015. 

PNB: The bank will announce its Q1 numbers today.

Maruti Suzuki: The country’s largest passenger vehicle maker Maruti Suzuki India Limited announced that it will start sales of its first Light Commercial Vehicle (LCV) - Super Carry towards the end of August. 

State Bank of Bikaner and Jaipur: Reserve Bank of India has imposed an aggregate penalty of Rs. 20 million on the Bank in exercise of the powers conferred under Section 47(A)(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949 in case of advance import remittance irregularities.

Bharat Forge: Bharat Forge Limited and Elbit now hold 51% and 49% equity share capital of BF Elbit Advanced Systems Private Limited, respectively.

Dabur India: The company reported 11.8% rise in net profit at Rs.292.80 crore for the quarter ended June 30, 2016 against Rs.261.84 crore in the corresponding quarter a year ago.

Asian Paints: The company has posted a net profit after tax of Rs.5011.80 million for the quarter ended June 30, 2016 as compared to Rs. 4275.40 million for the quarter ended June 30, 2015.

Castrol India: The company has posted a net profit after tax of Rs.2069 million for the quarter ended June 30, 2016 as compared to Rs.1845 million for the quarter ended June 30, 2015.

RPG Life Sciences: Sun Pharmaceutical Industries signed an agreement with RPG Life Sciences Ltd to divest seven prescription brands in India.

Lupin: Lupin Pharmaceuticals Inc. has received tentative approval from the United States Food and Drug Administration (FDA) to market a generic equivalent of ViiV Healthcare’s (ViiV) Lexiva Tablets, 700 mg (Fosamprenavir Calcium Tablets, 700 mg). 

United Spirits: United Spirits said it will stop manufacturing operations in Bihar due to the ban on sale of alcohol in the state that took effect from 1 April.

L&T Infotech: L&T Infotech will announce its Q1 result today. The company announced a strategic partnership with GE Digital combining LTI’s diverse industrial capabilities with GE’s Predix cloud-based operating system for the Industrial Internet.

Glenmark: Glenmark Pharmaceuticals Inc., USA (Glenmark) has been granted final approval by the United States Food & Drug Administration (U.S. FDA) for Potassium Chloride Extended-Release Tablets USP, 10 mEq (750 mg) and 20 mEq (1500 mg), the generic version of K-Dur (Potassium Chloride) Extended-Release Tablets, 10 and 20 mEq, of Merck Sharp and Dohme Corp (which is no longer being marketed in the United States).

Chinese authorities will continue to allow credit to drive growth, expects Fitch

Chinese banks' viability ratings (VRs), which range from 'bb' to 'b', reflect substantial but varying risks to capital and asset quality. Fitch's base-case assessment of banks' intrinsic profiles considers relative loss-absorption capacity rather than subjectively adjusting reported NPL data.

The rapid pace of growth in Chinese leverage since 2008, which has contributed to economic imbalances and decreasing credit efficiency, poses significant asset-quality risks for Chinese banks, says Fitch Ratings in a Special Report published.
 
Credit to GDP, as measured by Fitch-adjusted total social financing, has roughly doubled over the past eight years, while credit/GDP productivity rates since 2008 indicate substantial mal-investment and further increases in problem credit. Fitch believes the Chinese authorities will continue to allow credit to drive growth and prefer to restructure debt rather than allow mass defaults, regardless of the size of problem credit in the economy. Bad debt may be socialised and other tools employed over time - including offsetting risks through capital market issuance - to help the resolution process. The migration of debt to the sovereign balance sheet is more probable than a wholesale upfront carve-out of assets.
 
Chinese banks' viability ratings (VRs), which range from 'bb' to 'b', reflect substantial but varying risks to capital and asset quality. Fitch's base-case assessment of banks' intrinsic profiles considers relative loss-absorption capacity rather than subjectively adjusting reported NPL data. This is due to uncertainties relating to on-and-off balance sheet asset quality. That said, Fitch's report addresses questions about the potential size of asset quality problems facing the financial system and the process by which they will likely be addressed, with reference to implications for bank ratings.
 
The report also outlines two alternative scenarios beyond the base case to help frame the potential scale of risk and policy solutions. The scenarios - based around core assumptions pertaining to inefficient credit, impairment rates and loss rates - assume a one-off resolution of the debt problem over the more probable multi-year process.
 
Our alternative scenario assumptions yielded NPL rates of 15%-21% for the financial system, resulting in a one-off capital shortfall of CNY7.4trn-13.6trn (USD1.1trn-2.2trn) - equivalent to around 11%-20% of GDP. The aggregate capital gap for Fitch-rated commercial banks is CNY4.9trn-8.7trn, but individual gaps relative to risk-weighted assets vary across the portfolio.
 
Fitch has long highlighted how Chinese banks' strengths and in particular weaknesses are factored into their ratings. The pace of credit growth, the rise of shadow banking and limited transparency around certain risks have especially weighed on VRs. The size of the problem will ultimately grow, which is why we conducted the alternative scenario analysis. The scenarios are not factored into banks' ratings, and Fitch does not expect the exercise to lead directly to rating actions. Nevertheless, how the debt resolution plays out will determine bank ratings. Bank VRs may be subject to change in the event of an unexpected significant one-off fall in credit exposure, depending on its size and purpose, how the fall was achieved, and a bank's sustainable financial profile after the event.
 
All Issuer Default Ratings for Fitch-rated Chinese banks are support-driven, and any rating changes are tied to perceived changes in the propensity or ability of the sovereign to support the banks. Support already appears to be playing out in less explicit ways, but larger issues affecting the banks - such as idiosyncratic risks and resolution - are less inclined to face public disclosure, even though systemic issues tend to require greater disclosure to address market concerns. If support for the financial system crystallises on the sovereign's balance sheet and sufficiently alters its financial profile to warrant rating action on the sovereign, it could result in similar rating action for bank IDRs.

RBI penalises 13 Banks for violating KYC Nor

The penalties have been imposed in exercise of powers vested in the Reserve Bank under the provisions of Section 47(A) (1) (c) read with Section 46(4)(i) of the Banking Regulation Act, 1949, taking into account the violations of the instructions/directions/guidelines issued by the Reserve Bank from time to time.

The Reserve Bank of India has imposed monetary penalty on the following banks for violation of regulatory directions / instructions / guidelines, among other things, on KYC norms.

Eight other banks, namely, Axis Bank, Federal Bank, ICICI Bank, Kotak Mahindra Bank, OBC, Standard Chartered Bank, SBI and Union Bank of India have been advised to put in place appropriate measures and review them from time to time to ensure strict compliance of KYC requirements and FEMA provisions on an ongoing basis.

The penalties have been imposed in exercise of powers vested in the Reserve Bank under the provisions of Section 47(A) (1) (c) read with Section 46(4)(i) of the Banking Regulation Act, 1949, taking into account the violations of the instructions/directions/guidelines issued by the Reserve Bank from time to time. This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank and its customers.

The details of the penalty are:

S. No.	Name of the bank	Penalty Amount (in ₹ million)
1.	Allahabad Bank	20
2.	Bank of India	10
3.	Bank of Baroda	50
4.	Canara Bank	20
5.	Corporation Bank	10
6.	HDFC Bank	20
7.	IndusInd Bank	20
8.	Punjab National Bank	30
9.	RBL Bank	10
10.	SBBJ	20
11.	SBM	10
12.	Syndicate Bank	30
13.	UCO Bank	20

Opening Bell - Nifty opens above 8600 mark

At 9:15 AM, the S&P BSE Sensex is trading at 28,078 up 53 points, while NSE Nifty is trading at 8,631 up 14 points.

At 9:15 AM, the S&P BSE Sensex is trading at 28,078 up 53 points, while NSE Nifty is trading at 8,631 up 14 points.

Asian markets are trading mixed. In Japan, the Nikkei 225 dropped 0.7%. Hong Kong's Hang Seng is trading in red.

US stocks closed mixed Wednesday. The US Fed kept interest rates unchanged. Dow Jones Industrial Average was near flat at 18,472.17 points. The S&P 500 index closed 0.12% lower at 2,166.58 points, while the Nasdaq Composite was up 0.58% at 5,139.81 points.

The Union cabinet has increased the foreign shareholding limit in Indian stock exchanges from 5% to 15%, as announced in the budget, bringing investments by foreign entities on par with those by domestic institutions.

Also, the cabinet approved key changes to the Constitution amendment bill for goods and services tax (GST), doing away with 1% additional levy on supply of goods, and proposing full compensation to states for five years for revenue loss arising from transition to GST.

The rupee opened higher by four paise at 67.06/$ against US Dollar Thursday as against the previous close of 67.27/$.