Stocks
RBL Bank to hit the market on Aug 19
At a time when banking majors are finding it difficult to raise capital, Maharashtra-based RBL Bank is expected to hit the market with a premium initial public offer on Aug 19.
 
Formerly known as the Ratnakar Bank Ltd, the bank is hoping to raise over Rs.1,200 crore, basically to shore up its capital base.
 
According to the prospectus, the bank will pursue inorganic growth initiatives to strengthen its competitive position, including stakes in small finance and payments bank.
 
For instance, the bank is considering a purchase of a minority stake in Utkarsh Micro Finance Private Limited, an applicant for a small finance bank license, subject to regulatory approvals.
 
The bank acquired Royal Bank of Scotland's business banking, credit card and mortgage portfolio businesses in fiscal 2014.
 
The RBL Bank also acquired minority stake in Swadhaar FinServe Private Limited, a company acting as a business correspondent, facilitator, agent and distributor for financial services providers for the purpose of offering such products and services to inadequately served sections of businesses, households and enterprises for a consideration of approximately Rs.20.5 crore.
 
The IPO comprises a fresh issue of Rs.832.5 crore and an offer of sale of shares by existing shareholders up to 16,909,628 equity shares.
 
The public issue is the first by a private bank in the past couple of years.
 
Last fiscal, the bank's total income stood at Rs.3,234.85 crore up from Rs.2,356.49 the previous fiscal.
 
The RBL Bank last fiscal logged a profit Rs.296.80 crore up from Rs.208.45 crore the previous fiscal.
 
The bank's gross non-performing assets as on 31.3.2016 stood at Rs.208.05 crore, up from Rs.Rs.77.75 crore at the end of previous fiscal. The net NPA at the end of last fiscal was Rs.124.44 crore up from Rs.38.59 crore.
 
The bank said the increase in its NPA is due to difficult economic conditions in India in recent years.
 
According to the bank it had provided for Rs.93.19 crore during the fiscal ended March 31, 2016 towards provision for NPA, non-performing investments, depreciation on investments, write-off and sacrifice for restructured advances.
 
The bank said as a part of its growth strategy, it is moving from a traditional corporate-commercial relationship-led local bank to a mid-sized bank with a diversified corporate, commercial and retail banking portfolio.
 
As of March 31, 2016, the bank had 197 branches, of which 94 were located in Maharashtra and 23 branches were located in Karnataka, leaving it more exposed to issues in these regions.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
  

 

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COMMENTS

Prantik Mukherjee

4 months ago

any recommendation ?

REPLY

Suketu Shah

In Reply to Prantik Mukherjee 4 months ago

is this true this is HDFC head Deepak Parekh's son's brainchild?

US rejig of trade pacts risky for global growth: Moody's
Chennai: One of the immediate downside risks for the global economic growth is the potential renegotiation of global trade pacts and security alliances after US' presidential elections in November, said credit rating agency Moody's Investors Service.
 
According to Moody's, such an event would make the export oriented Asian economies vulnerable to this risk.
 
In its latest report on the global economy, Moody's also said the outlook for the emerging economies has stabilised due to a combination of the modest recovery in commodity prices, better capital flows and a better near-term outlook for growth in China.
 
"The political and geopolitical risks, including a rise in nationalist and protectionist policies, are among the downside risks to global growth. In this context, the most immediate risk is a potential renegotiation of global trade pacts and security alliances, after this year's US presidential election," Moody's said.
 
Based on its macroeconomic forecasts, Moody's assume that the course of current economic policies and international agreements will be left intact after the next election.
 
"A protectionist stance that proposes renegotiating global trade alliances, including NAFTA and withdrawing from the Transpacific Trade Partnership, would be unambiguously harmful for potential global growth in the long run. Export-oriented Asian economies are particularly vulnerable to this risk," Moody's said.
 
In Europe, political risk could rise if populist anti-European Union parties gain support of countries like Netherlands, France and Germany, who are set to face important elections in 2017.
 
"Whether or not populist parties come to hold office over the next year or so, it is clear that the nationalist discourse injected by them will remain and potentially shape future policies in Europe," Moody's said.
 
According to Moody's, in the long run, this could have detrimental implications for the continued cohesiveness of the European Union, and in the extreme threaten its existence.
 
According to Moody's, the fragmentation of the European Union could also encourage protectionist tendencies in a number of other countries, and therefore seriously challenge, and ultimately reverse, the past few decades of increased globalisation. This in turn would thwart the long-term growth prospects of individual economies and slow the catch-up of less developed countries.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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Bleeding Balochistan: An aspiration to be free from Pakistan
A simple reference towards the end of his Independence Day speech by Prime Minister Narendra Modi has thrown open Pakistan's festering Balochistan wound, rattling a neighbour India has for decades blamed for stoking trouble in Jammu and Kashmir.
 
Modi, in tit-for-tat tactics, has thrown open a Pandora's Box that has geopolitical implications and holds the potential of changing the direction of India's foreign policy. Balochistan has been as troubling for Pakistan as Kashmir has been for India.
 
But Pakistan's largest province has not received as much international attention as Kashmir -- mostly because the region, often described as a "black hole", is "no-go area" for journalists -- unlike Kashmir. On the other hand, Pakistan has always raked up the Kashmir issue globally and spoken about the alleged rights violations in India's only Muslim-majority state.
 
The Pakistani province -- almost the size of France -- is rich in gas, gold, copper, oil and uranium, but it has been plagued by an unending cycle of violence and underdevelopment since the 1947 division of the sub-continent and the formation of India and Pakistan as separate nations.
 
The restive province, spread over 40 per cent of Pakistan's total land mass but consisting of less than four per cent of its population, has never made global headlines despite activists alleging that security forces have been committing alleged genocide of Balochis to kill their aspirations for a free, sovereign nation.
 
The history of the region is that of broken promises, rights abuses, induced poverty and repressive rule of elite Punjabis.
 
Pakistan has been alleging that India's spy agency, the Research and Analysis Wing (R&AW), has been stoking trouble in the region by sponsoring the separatist campaign there. India has always denied such allegations.
 
Historically, Balochistan has never been part of the sub-continent and consisted of four princely states -- Kalat, Lasbela, Kharan and Makran -- under the British Raj. The region finds more similarities with Afghanistan and Iran than India or Pakistan.
 
It is generally believed that Pakistan's first governor-general Mohammad Ali Jinnah coerced the last independent Baloch ruler Mir Ahmad Yar Khan to sign an instrument of accession.
 
Some historical accounts, disputed by critics, says that three months before Pakistan was formed Jinnah had negotiated the freedom of Balochistan from the British.
 
In fact, a communiqué dated August 11, 1947, stated that a standstill agreement had been made between Pakistan and the region, and discussions would take place between Pakistan and Khan with a view to reaching agreements on Defence, External Affairs and Communications.
 
Despite the standstill agreement, the Pakistan Army, on March 26, 1948, moved into Baloch coastal regions. Days later, it was announced in Karachi that Khan has agreed to merge his state with Pakistan.
 
What followed is a chronicle of bloodshed, denial of basic rights and acute deprivation amid military operations to crush any voice raised for freedom of the region.
 
"The human rights situation in Balochistan is drastically deteriorating, with the region's respective governments failing at their most basic duty -- to protect the safety of their citizens and enforce the rule of law," says a report compiled after a last year Geneva conference titled "Balochistan in the Shadows".
 
Angry over Pakistan's exploitation of the resources and its repressive rule, Balochis have so far launched five low-intensity armed insurgencies since 1948.
 
A prominent Baloch activist, Naela Quadri, in an interview to IANS in April, accused Pakistan of resorting to "genocide" in response to the "political, democratic and secular" freedom struggle.
 
"They have killed some 200,000 Balochis in the last decade. The Pakistan Army has participated in enforced disappearance of 25,000 people, including men and women," Quadri said.
 
"They are using all the eight UN indicators of genocide, including dehumanisation, polarisation, extermination and denial."
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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COMMENTS

Bapoo Malcolm

3 months ago

What do I think? Nothing. We are surrounded by peoples we "freed" and who are now a major pain in the neck. Do we need one more?

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