Companies & Sectors
Bank bad loans have not worsened in the March quarter
Pressure on NPAs, especially for public sector banks will continue as more loans turn into non-performing assets due to the overall slowdown in the Indian and global economy, says a study by NPAsource
 
Net non-performing assets (NPAs) or bad loans of 39 listed banks increased by a negligible 0.8% or Rs750 crore only in the fourth quarter of 2012-13 due to high provisioning. However, for the full fiscal year net NPAs of these lenders jumped 51% to Rs92,825 crore, says a study conducted by NPAsource.com.
 
According to the study, gross NPAs of these 39 listed banks stood at Rs1.79 lakh crore as on March 2013, compared with Rs1.78 lakh crore as on December 2012, implying rise of Rs887 crore during the fourth quarter. During 2012-13, gross NPAs of these 39 banks rose by 36.1%, while net NPAs rose by 51.2%.
 
“We believe that with the interest rates expected to come down, the next few quarters may see a slowdown in the growth rate of NPAs. But, pressure on NPAs, especially for public sector banks will continue as more loans become NPAs due to the overall slowdown in the Indian and global economy. As a large chunk of the provisioning for NPAs is done by most banks in the last quarter, there is a marginal increase in NPAs in Q4 of FY2013. But, the first two quarters of current fiscal are going to see a higher growth in NPAs as provisioning will be low," said DK Jain, chairman and managing director of Atishya Group that owns NPAsource.com. 
 
According to the study, for FY13, net NPAs of 39 listed banks rose 51.2% to Rs92,825 crore from Rs61,381 crore a year ago. Out of the total 40 banks listed on stock exchanges, 39 have declared their results so far. Of the banks that have declared results, eight banks have reported reductions of more than Rs100 crore in net NPAs during the fourth quarter. These eight banks together accounted for drop of around Rs5,645 crore in net NPAs during the March quarter, NPAsource said. 
 
 
During the fourth quarter, State Bank of India (SBI) the largest lender in the country reported the biggest drop of around Rs3,400 crore. Net NPAs of Central Bank of India, Punjab National Bank (PNB), Corporation Bank and IDBI Bank fell by 14.9%, 4.6%, 16.9% and 6.1%, respectively, during the fourth quarter. 
 
These five banks accounted for more than Rs5,100 crore drop in net NPAs. As per the Q4 and FY2013 results declared by the SBI, the lender's provisioning for NPAs in the fourth quarter of 2012-13 was 40% higher at Rs3,974 crore as against Rs2,836 crore same period last year. 
 

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Weakness on the Sensex, Nifty may persist: Friday Closing Report
A close below 5,970 on the Nifty may pull the market down further. However, a close above any previous day’s high may bring some relief
 
The market managed to snap its four-session losing streak and end marginally higher today amid volatile and range-bound trade. A close below 5,970 on the Nifty may pull the market down further. However, a close above the previous day’s high may bring some relief. The National Stock Exchange (NSE) reported a lower turnover of 53.30 crore shares and advance-decline ratio of 750:628.
 
The market opened in the positive this morning, recouping itself from the 2% decline seen yesterday, as investors lapped stocks at lower levels. Across the globe, markets in Asia continued to trade in the negative in morning deals on economic concerns and the US markets closed marginally lower on Thursday as gains in IT major Hewlett Packard eased worries of the Federal Reserve’s proposed move.
 
The Nifty opened 44 points higher at 6,011 and the Sensex resumed trade at 19,765, a gain of 91 points over its previous close. Gains in fast moving consumer goods, banking, capital goods and consumer durables helped the indices hit their highs in initial trade itself. The Nifty rose to 6,015 and the Sensex inched up to 19,833 at their respective highs.
 
The market could not sustain the early gains and soon trended lower. The benchmarks fell to their lows at around 10.30am. The Nifty fell to 6,937 and the Sensex went back to 19,568 at their lows.
 
Select buying in capital goods, realty, metal and power stocks enabled the market recover from the lows and emerge in the positive terrain around 11.00am. However, the benchmarks remained range-bound and hovered on both sides of their previous closing levels in subsequent trade.
 
Meanwhile, the European markets opened mixed on negative news from China and the US. 
 
The market managed to snap its four-session losing streak and settle marginally higher today on buying in blue chips. The Nifty finished 17 points (0.28%) higher at 5,984 and the Sensex closed trade at 19,704, gaining 30 points (0.15%).
 
The broader indices outperformed the Sensex today, as the BSE Mid-cap index gained 0.37% and the BSE Small-cap index advanced 0.30%.
 
The top sectoral gainers were BSE Consumer Durables (up 1.86%); BSE Metal, BSE Capital Goods (up 1.61%) each; BSE Bankex (up 0.96%) and BSE Power (up 0.96%). The main losers were BSE Healthcare (down 1.28%); BSE IT (down 0.74%); BSE TECk (down 0.66%) and BSE Auto (down 0.04%).
 
Out of the 30 stocks on the Sensex, 15 settled higher. The major gainers were Tata Steel (up 4.56%); Tata Power (up 3.7%); Larsen & Toubro (up 2.705); ICICI Bank (up 2.60%) and Sterlite Industries (up 1.63%). The key losers were Sun Pharmaceutical Industries (down 3.67%); Hindalco Industries (down 1.70%); Cipla (down 1.63%); TCS (down 1.59%) and BHEL (down 1.51%).
 
The top two A Group gainers on the BSE were—United Spirits (up 6.55%) and Amara Raja Batteries (up 5.98%).
The top two A Group losers on the BSE were—Wockhardt (down 6.50%) and Apollo Hospitals Enterprise (down 5.09%).
 
The top two B Group gainers on the BSE were—TTK Healthcare (up 20%) and SAH Petroleums (up 20%).
The top two B Group losers on the BSE were—Ashima (down 19.77%) and GG Dandekar Machine Works (down 19.01%).
 
Of the 50 stocks on the Nifty, 34 ended in the in the green. The main gainers were Maruti Suzuki (up 7.86%); Tata Steel (up 4.77%); Tata Power (up 3.98%); Lupin (up 2.94%) and L&T (up 2.90%). Sun Pharma (down 3.1%); BHEL (down 1.61%); Cipla (down 1.53%); TCS (down 1.39%) and Ranbaxy Laboratories (down 1.32%), were the major losers on the index.
 
Markets in Asia closed mostly higher and the Nikkei 225, which plunged over 7% yesterday, managed to close nearly 0.90% higher today. A Tokyo-based market analyst said that the markets, which were going up and down like a roller coaster, are expected to calm down in a week’s time. Markets in Singapore, Malaysia, and Thailand were closed for a public holiday. 
 
The Shanghai Composite gained 0.57%; the Jakarta Composite advanced 0.66%; The Nikkei 225 climbed 0.89% and the Seoul Composite rose 0.22%. Among the losers, the Hang Seng fell 0.23% and the Taiwan Weighted lost 0.34%.
 
 At the time of writing, two of the three European markets were in the red and the US stock futures were trading lower.
 
Back home, foreign institutional investors were net buyers of equities aggregating Rs316.23 crore on Thursday while domestic institutional investors were net sellers of shares amounting to Rs538.75 crore.
 
Viceroy Hotels is in the process of securing shareholder nod, through a postal ballot, for selling its Chennai Property Division to Ceebros Hotels Pvt Ltd for Rs480 crore. The sale will help the company retire Rs430 crore debt of Chennai property and bring down the overall company debt to Rs200 crore. The stock rose 0.51% to Rs19.70 on the NSE.
 
Fortis Healthcare today said that its Singapore-based subsidiary will receive A$270.38 million (around Rs 1,452 crore) on completion of its stake sale in Dental Corporation Australia to Bupa Australia Health. Fortis Healthcare International has a 64% stake in Dental Corporation Holdings. The stock closed 3.90% down at Rs91.15 on the NSE.
 
Private sector lender YES Bank has ties up with the International Finance Corporation (IFC) to boost international trade opportunities. Through this programme, IFC will extend credit guarantees to YES Bank to cover its payment risks under trade instruments issued by the bank in favour of participating correspondent banks. YES Bank gained 1.75% to close at Rs505.40 on the NSE.
 

 

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COMMENTS

snehakamath

4 years ago

GMR Infra after touching Rs 25 the recent 6 months high , has sharpely corrected till Rs 20.90 and have started upmove and within a day gained Rs 0.85 to Rs 21.75 ( more than 4% gain in a single day)

This strongly indicates it will go higher than the Rs 25 mark in this upmove and the results are also scheduled next week.

This being one of the very high Beta share stop loss is a must for trading.

NSE cuts STT rate in capital markets segment from 1st June
The revision is as per the Finance Act 2013, which received Presidential assent on 10th May
 
Leading bourse NSE (National Stock Exchange) today said it will reduce securities transaction tax (STT) in the capital market segments from 1st June.
 
The revision is as per the Finance Act 2013, which received Presidential assent on 10th May.
 
Introduced in 2004, STT is levied on the sale and purchase of equities.
 
In the case of sale of securities in futures segment, the tax has been revised downward to 0.01%, from 0.017%.
 
“We would like to inform you that as per the Finance Act 2013, which received the Presidential assent on 10 May 2013, rates of levy of STT with effect from 1 June 2013, are revised,” NSE (National Stock Exchange) said in a circular.
 
Regarding the sale of a unit of an equity oriented fund, where the transaction is entered into on a recognised bourse and the contract for the sale of such share is settled by the actual delivery or transfer of such share, STT has been revised downward from 0.1% to 0.001%.
 
In case of purchase of a unit of an equity oriented fund, where the transaction is entered into in a recognised stock exchange and the contract for the purchase of such unit is settled by the actual delivery, NSE has done away the tax from the existing 0.1%.
 
The exchange said that in case of other transactions, there would not be any change in STT rate.
 

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