Companies & Sectors
CLSA, Credit Suisse sell Yes Bank shares

CLSA and Credit Suisse offloaded their stake in Yes Bank at an average price of Rs378-379 per share


Mumbai: Foreign fund houses -- CLSA (Mauritius) and Credit Suisse (Singapore)-- sold shares of Yes Bank  worth Rs429 crore through the open market route, reports PTI.

 

CLSA (Mauritius), which held 2.41% stake in Yes Bank at the end of September quarter, sold 63.58 lakh shares (about 1.78% stake) in the private sector lender, data from bourses showed.

 

The shares were sold by CLSA at an average price of about Rs379 , valuing its transaction at Rs240.82 crore.

 

Besides, Credit Suisse (Singapore) offloaded 49.85 lakh shares (translating to 1.4% stake) in Yes Bank. The shares were offloaded for Rs378 apiece, valuing its transaction at Rs188.46 crore.

 

At the end of September quarter, Credit Suisse (Singapore) held 2.42% stake in Yes Bank.

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NBFCs, infra finance companies ask RBI to relax ECB norms

Industry bodies have also urged RBI to revisit its guidelines on securitisation and priority sector lending as industry players, especially NBFCs, are facing fund crunch, apart from raising the cap on NBFCs' exposure to mutual funds


Mumbai: Non-banking finance companies (NBFCs) and asset infra finance companies have asked the Reserve Bank of India (RBI) to further liberalise foreign borrowing norms for them to tide over fund crunch, reports PTI.

 

Financial market players like NBFCs, the Finance Industry Development Council (FIDC), the Fixed Income Money Market and Derivatives Association (Fimmda), Foreign Exchange Dealers' Association (FEDAI), the Primary Dealers Association, among others, met the RBI top brass, including Governor D Subbarao, this evening at the customary pre-policy meeting.

 

"We requested the Governor to look at relaxing the external commercial borrowings (ECB) norms for NBFCs and asset financing companies," FIDC Director General Mahesh Thakkar told reporters after the meeting.

 

He said that the industry bodies have also urged RBI to revisit the guidelines on securitisation and priority sector lending as industry players, especially NBFCs, are facing fund crunch, apart from raising the cap on NBFCs' exposure to mutual funds.

 

Leading NBFC L&T Finance president N Shivraman said while conveying the industry's concerns about fund crunch, as banks have not passed on the benefit of the rate cuts by RBI in April to borrowers, they urged the central bank to relax the ECB norms for them.

 

"The RBI needs to help us to diversify our funding sources," Shivraman said.

 

The draft report of the Usha Thorat committee on NBFCs, submitted in August 2011, had called for tighter rules for NBFCs in terms of provisioning, lending and capital adequacy ratios, to help avert possible risks to the financial system.

 

The RBI set up the committee because unlike banks, whose exposure to realty and stock markets are tightly regulated, NBFCs don't have stringent rules on sectoral lending and group-wise exposure, enabling them to lend more liberally against shares and also for realty.

 

The industry, however, argued today that it was facing considerable fund crunch and sought liberalised borrowing norms to raise funds from overseas.

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Monetary policy focus should be to tame inflation: Gokarn

Gokarn, who is in-charge of the monetary policy at the RBI, said it is important for the monetary policy to focus on inflation control


Mumbai: Reserve Bank of India (RBI) deputy governor Subir Gokarn has said that monetary policy should be focused on containing inflation as lower prices can support sustained growth in the long term, reports PTI.

 

"It is important to keep inflation under control to support a sustained process of growth," Gokarn told a banking summit.

 

Citing historical anecdotes of central banks focusing on growth and the negative consequences thereof, Gokarn, who is in-charge of the monetary policy at the central bank, said it is important for the monetary policy to focus on inflation control.

 

The comments from the deputy governor come a day after government data said inflation rose up to a 10-month high of 7.81% in September and a fortnight ahead of the second quarter monetary policy announcement on 30th October.

 

Incidentally, Reserve Bank Deputy Governor Anand Sinha had said the scope of monetary policy has expanded beyond inflation targeting to factors like checking financial imbalances.

 

"The monetary policy has an expanded objective...It has a larger role than simple inflation targeting," Sinha had said.

 

Responding to a query, Gokarn, who was addressing a banking meet organised by the Financial Times and Yes Bank, conceded that the monetary policy should not alone be responsible for taming inflation and it needs to be complemented by the fiscal policy and supply side factors.

 

"It would be great if fiscal and supply side policies also help to keep the inflation pressure down," he said.

 

On the impact of the third round of stimulus by the US, Gokarn said it has not led to a surge in commodity prices as yet unlike earlier rounds and welcomed it as a "relief" for the country.

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