Stocks
Deutsche Bank downgrades SBI to ‘hold’ on poor asset quality

The investment bank cautioned that PSU banks like State Bank of India, which have a greater exposure to SME advances, are more susceptible to non-performing advances than private banks on account of uncertain monsoon and economic outlook

 
Deutsche Bank has downgraded India’s largest public sector lender, State Bank of India (SBI), to ‘hold’ from ‘buy’ stating that June quarter was one of the worst quarter for the PSU bank due to its poor asset quality, according to a media report.
 
Deutsche added that the decline in SBI’s interest margin to 3.57% in the June quarter, down 18 basis points, is not expected to help the bank much in boosting its asset quality.
 
The global investment bank cautioned that PSU banks, which have a greater exposure to SME advances, are more susceptible to non-performing advances than private banks. This is on account of uncertain monsoon and economic outlook, Deutsche added.
 
Meanwhile, Morgan Stanley maintained SBI at ‘underweight’, and cut its target price to Rs1,390 from Rs1,425 citing weak trends in margins and non-performing loans in a report dated Sunday.
 
SBI was trading down 0.21% at Rs1,883.95 on the BSE in post-noon trade. 
 

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GSK Pharma Q2 net profit at Rs163.52 crore

Commenting on the performance, Dr Hasit B Joshipura, managing director, GSK Pharma said, “Growth for the quarter was market competitive, with all the segments delivering strong growth”

GlaxoSmithKline Pharmaceuticals has posted a net profit from activities of Rs163.52 crore for the quarter ended 30 June 2012 as compared to Rs147.54 crore for the quarter ended 30 June 2011. Total Income has increased from Rs603.66 crore for the quarter ended 30 June 2011 to Rs699.88 crore for the quarter ended 30 June 2012.

 

In the second quarter, the company launched Uricostat for gout treatment. The company expanded its oncology portfolio by launching HycamtinTM to fulfil unmet needs for patients with advance cancers and relapsed small cell lung cancer (SCLC).

The company also introduced Volibris (Ambrisentan), a non-sulphonamide class endothelin receptor antagonist (ERA) used to treat pulmonary arterial hypertension (PAH).

 

During the quarter, a Metered Dose Inhaler (MDI) with dose counter was launched, which will help patients keep a correct count of drug doses taken. This technology has been introduced in Seretide Evohaler.

 

Commenting on the performance, Dr Hasit B Joshipura, managing director, GSK Pharma said, “Growth for the quarter was market competitive, with all the segments delivering strong growth.”

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PIL alleges Rs26,000 crore irrigation scam in Vidarbha

The PIL alleges cost of 38 irrigation projects executed by Vidarbha Irrigation Development Corp escalated by a whopping Rs20,050.06 crore from Rs6,672.27 crore within seven months

Nagpur: A public interest litigation (PIL) filed in the Bombay High Court has alleged that an unholy nexus of contractors, officers and politicians has siphoned off a staggering amount of Rs26,000 crore meant for irrigation projects in Vidarbha region of Maharashtra, reports PTI.

 

The division bench of Justices Pratap Hardas and ML Tahaliyani has issued notices to the Union Government (which is financing the Gosikhurd project), Maharashtra Government and Vidarbha Irrigation Development Corporation (VIDC), seeking replies within four weeks.

 

Activist Mohan Karemore, Amit Khot and city-based lawyer Bharti Dabhadkar, who is a member of Lokmanya Bapuji Aney Smarak Samiti, have filed the petition, seeking high-level inquiry into the scam and expeditious completion of irrigation projects.

 

The PIL cites newspaper reports about the alleged scam, involving sudden cost escalations, irregularities in grant of revised administrative approvals and twisting of norms in planning and execution.

 

Within a span of seven months in the year 2009, the cost of 38 irrigation projects executed by VIDC escalated by a whopping Rs20,050.06 crore from the earlier Rs6,672.27 crore, it alleges.

 

Of these 38 projects, 30 got sanction, -- 14 August 2009 (11 projects), 24 June 2009 (10 projects), 7 July 2009 (5 projects), 18 August 2009 (4 projects).

 

The cost of six projects went up six times to 33 times of the original cost and in the case of 12 projects, the cost shot up by more than twice the original estimates.

 

Mobilisation advance of Rs614.46 crore was given to contractors and the firms controlled by BJP MP Ajay Sancheti, NCP MLC Sandip Bajoria, construction magnate Avinash Bhosle, the PIL says.

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