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Reliance Capital gains after board approves independent listing of home finance business

Reliance Capital gains after board approves independent listing of home finance business

Sep 14,2016

The announcement was made yesterday, 13 September 2016, when stock market remained closed on account of Bakri Id.

Meanwhile, the S&P BSE Sensex was down 46.19 points or 0.16% at 28,307.35.

On BSE, so far 6.75 lakh shares were traded in the counter as against average daily volume of 5.01 lakh shares in the past one quarter. The stock hit a high of Rs 561.50 and a low of Rs 546.65 so far during the day. The stock had hit a 52-week high of Rs 574 on 9 September 2016. The stock had hit a 52-week low of Rs 303.60 on 12 February 2016. The stock had outperformed the market over the past one month till 12 September 2016, rising 21.96% compared with 0.71% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 32.06% as against Sensexs 6.45% rise.

The large-cap company has equity capital of Rs 252.63 crore. Face value per share is Rs 10.

Reliance Capital said the independent listing of Reliance Home Finance (RHF) is expected to unlock substantial value for existing shareholders of Reliance Capital. The listing of Reliance Home Finance will also lead to increased management focus and accelerated growth in the home finance business. As per the proposal, 49% stake in Reliance Home Finance Limited will be allotted to all shareholders of Reliance Capital, in the ratio of one share free of cost in Reliance Home Finance for every one share held in Reliance Capital.

Reliance Capital will hold a 51% stake in Reliance Home Finance, and the company will be adequately capitalised to grow the lending book to over Rs 20000 crore in the next 18 months. The proposal is subject to necessary shareholders and other approvals. Reliance Home Finance, a 100% subsidiary of Reliance Capital, provides a wide range of loan solutions like home loan, LAP, construction finance and affordable housing loans. The company reported an AUM of Rs 8259 crore ($1.2 billion) during the quarter ended 30 June 2016.

Mr. Anmol A. Ambani, Director, Reliance Capital said Prime Minister, Narendra Modi has set a goal of affordable housing for all by 2022. There is presently an estimated shortage of 10 crore residential units in India. To address the needs of this sector, Reliance Home Finance has charted an aggressive growth plan in this space, and aims to increase its book size to over Rs 50000 crore in the next few years.

On a consolidated basis, Reliance Capitals net profit rose 3% to Rs 207 crore on 48.3% growth in total income to Rs 3663 crore in Q1 June 2016 over Q1 June 2015.

Reliance Capital, a part of the Reliance Group, is one of Indias leading private sector financial services companies.

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Money Supply: Currency in circulation declines
Jan 06,2017

The money supply (M3) registered growth of 7.1% as on 09 December 2016. The growth was lower than 8.5% in the month of November 2016. Meanwhile, on annual basis the M3 growth was lower than in December 2015, amid fall in currency with public and deceleration in other deposits with RBI, while demand deposits with banks and time deposits with banks accelerated. In a historic move, the government, on advice of RBI, announced that existing notes of Rs 500 and Rs 1000 denomination ceased to be legal tender from 09 November 2016. A new series of Rs 500 and Rs 2000 notes were introduced by RBI from 10 November 2016. Accordingly, old notes that have been demonetised can be deposited in bank accounts (without limit till 31 December 2016) or can be exchanged for legal tender.

This move reduced the currency in circulation drastically and increased the deposits with banks.

Meanwhile, the M3 decreased by Rs 559.5 billion or 0.5% fortnightly, led by fall in currency with the public, while time deposits with banks, demand deposits with banks and other deposits with RBI increased.

Components

M3 recorded growth of 4.3% till 09 December in 2016-17 compared with the 7.2% rise in the same period a year ago. Meanwhile, on annual basis the M3 growth was lower than in December 2015, amid fall in currency with public and deceleration in other deposits with RBI, while demand deposits with banks and time deposits with banks accelerated.

The growth rate in time deposits with banks accelerated to 14.2% from 10.8% a year ago, demand deposits with banks, another major component of broad money, increased at 29.4% from 13% a year ago while currency with public fall 48% from 12.4% rise a year ago.

Meanwhile, the M3 decreased by Rs 559.5 billion or 0.5% fortnightly, led by fall in currency with the public, while time deposits with banks, demand deposits with banks and other deposits with RBI increased.

Demand deposit with banks increased 21% till 09 December 2016 compared with a rise of 3.8% in the corresponding period a year ago. The annual growth rate stood at 29.4% as on 09 December 2016 compared with a rise of 13% a year ago. On other hand, time deposits increased at 12.3% till 09 December in 2016-17 compared with 7.4% growth a year ago. The annual growth rate stood at 14.2% as on 09 December compared with a 10.8% increase a year ago.

One of the major components of M3, that is currency with the public, fell 48% annually as on 09 December 2016 compared with 12.4% increase a year ago. It recorded 51.1% fall till 09 December in 2016-17 compared with a 8.4% increase in the same period a year ago. Meanwhile, fortnightly the currency with the public fall 14.4% or by Rs 1309.6 billion.

Sources

The net bank credit to government declined by Rs 944.6 billion in the fortnight ended 09 December 2016 but increased 22% till 09 December in 2016-17. This is higher than the rise of 12.4% growth a year ago. The annual growth rate accelerated to 16.9% as on 09 December 2016 compared with 7.2% a year ago. The growth in net foreign exchange assets of the banking sector stood at 2.7% till 09 December 2016 in 2016-17 lower from 9.4% growth a year ago. Meanwhile, the annual growth rate also decelerated 5.7% as on 09 December 2016 compared with a rise of 19.9% a year ago.

Reserve money

The reserve money growth declined annually in December 2016 compared with an annual rise in December 2015. The annual growth rate declined 29.6% as on 23 December 2016 compared with the 14.3% growth a year ago. The fall in currency in circulation led to fall in reserve money growth, while Bankers Deposits with RBI and other deposits with RBI decelerated. The fall in currency in circulation was 40% as on 23 December 2016 compared with a rise of 13% rise a year ago. The bankers deposit with the RBI decelerated at 6.5% compared with a rise of 17.9% rise a year ago and the other deposits with RBI also decelerated annually to 6.4%.

The net foreign exchange assets of the banking sector decelerated to 5.4% as on 23 December 2016 compared with a rise of 15.4% a year ago. Meanwhile, the growth rate was 2.5% till 23 December in 2016-17 compared with 9% rise in the same period a year ago. Net non-monetary liabilities of the RBI decreased 0.8% till 23 December 2016 in FY17 compared with a rise of 14.7% in the same period a year ago. The annual growth rate accelerated by 5.2% as on 23 December compared with rise of 4.5% a year ago.

Outlook

The growth of money supply in the economy slipped to 7% from 12% in the near term, and may slip further if 25-30% of unaccounted currency does not flow back into the banking system post demonetisation move. The demonetization led to massive influx of currency into the banking system with system liquidity turning into huge surplus as currency in circulation fell and deposit base grew by same amount. In a short period, the banking system will have to carry out a massive exercise of accepting old, demonetized notes and issuing new legal tender. This will be later followed by a massive outflow of currency back into the system.

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Idea Cellular declines on brokerage downgrade
Jan 06,2017

Meanwhile, the S&P BSE Sensex was down 92.62 points or 0.34% at 26,785.62.

On the BSE, 3.35 lakh shares were traded on the counter so far as against the average daily volumes of 6.97 lakh shares in the past one quarter. The stock had hit a high of Rs 74.65 and a low of Rs 72.70 so far during the day.

The stock had hit a 52-week high of Rs 137.85 on 6 January 2016 and a 52-week low of Rs 66 on 9 November 2016. It had outperformed the market over the past one month till 5 January 2017, advancing 2.75% compared with the Sensexs 2.01% rise. The scrip had, however, underperformed the market in past one quarter, declining 6.57% as against the Sensexs 4.76% fall.

The large-cap company has equity capital of Rs 3601.69 crore. Face value per share is Rs 10.

The brokerage sees significant decline in operating profit of Idea Cellular going forward. Unlimited voice uptake makes risk-reward unfavourable, it added.

On a consolidated basis, Idea Cellulars net profit fell 88% to Rs 91.46 crore on 7.2% growth in net sales to Rs 9298.89 crore in Q2 September 2016 over Q2 September 2015.

Idea Cellular is the third largest wireless operator in India. Idea is part of the Aditya Birla Group, which is one of the largest business groups in India.

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SREI Infra gains after early closure of debenture issue by subsidiary
Jan 06,2017

The announcement was made during market hours today, 6 January 2016.

Meanwhile, the BSE Sensex was down 9.53 points, or 0.04%, to 26,868.71.

On the BSE, 1.08 lakh shares were traded in the counter so far, compared with an average volume of 1.87 lakh shares in the past one quarter. The stock had hit a high of Rs 81.70 and a low of Rs 79.30 so far during the day. The stock had hit a 52-week high of Rs 91.95 on 10 November 2016. The stock had hit a 52-week low of Rs 42.35 on 24 May 2016.

The stock had underperformed the market over the past one month till 5 January 2017, remaining unchanged compared with the Sensexs 2.01% rise. The scrip had, however, outperformed the market in past one quarter, gaining 7.18% as against the Sensexs 4.76% fall.

The small-cap company has an equity capital of Rs 503.09 crore. Face value per share is Rs 10.

SREI Infrastructure Finance announced that Srei Equipment Finance (SEFL), a material subsidiary of the company has exercised the option of early closure of the public issue of secured redeemable non-convertible debentures and the issue shall now close today, 6 January 2017.

The issue opened for subscription on 3 January 2017 and was scheduled to close on 20 January 2017.

SREI Infrastructure Finance had announced on 26 December 2016 that Srei Equipment Finance is proposing a public issue of 25 lakh secured redeemable non-convertible debentures of face value of Rs 1,000 each for an amount upto Rs 250 crore with an option to retain over subscription upto Rs 500 crore.

SEFL is a leading equipment finance institutions. The object of the issue was to raise funds for various financing activities, to repay the companys existing loans and business operations etc.

On consolidated basis, SREI Infrastructure Finances net profit jumped 438% to Rs 61.87 crore on 30% rise in total income to Rs 1106.65 crore in Q2 September 2016 over Q2 September 2015.

SREI Infrastructure Finance is a leading infrastructure financing conglomerate in India.

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Natco jumps after USFDA final nod for generic drug
Jan 06,2017

The announcement was made during market hours today, 6 January 2017.

Meanwhile, the S&P BSE Sensex was down 27.79 points or 0.1% at 26,850.45.

On the BSE, 95,000 shares were traded on the counter so far as against the average daily volumes of 30,653 shares in the past one quarter. The stock had hit a high of Rs 632 and a low of Rs 596.95 so far during the day.

The stock had hit a record high of Rs 703.95 on 25 August 2016 and a 52-week low of Rs 390 on 29 March 2016. It had underperformed the market over the past one month till 5 January 2017, advancing 0.96% compared with the Sensexs 2.01% rise. The scrip had also outperformed the market in past one quarter, declining 1.12% as against the Sensexs 4.76% fall.

The large-cap company has equity capital of Rs 34.86 crore. Face value per share is Rs 2.

Natco Pharma said it has received the final approval of abbreviated new drug application (ANDA) containing a paragraph IV certification filed with the US Food and Drug Administration (FDA) for generic version of Bendamustine Hydrochloride powder for Injection, 25 mg/vial and 100 mg/vial (singe-dose vial).

Pursuant to the settlement of the Paragraph IV litigation, Natco plans to launch this drug on 1 November 2019, or earlier under certain circumstances, through its marketing partner Breckenridge Pharmaceutical, Inc., in the US market. Natco and Breckenridge filed their ANDA with a Paragraph IV certification on the first-to-file date and expect to share 180-day exclusivity with other ANDA first filers.

Cephalon (acquired by Teva in 2011) sells Bendamustine Hydrochloride powder for Injection, 25 mg/vial and 100 mg/vial (singe-dose vial) under Brand name TREANDA in the US market. TREANDA is indicated for the treatment of patients with chronic lymphocytic leukemia (CLL) and non-Hodgkins lymphoma. TREANDA had US sales of approximately $133 million for twelve months ended November 2016, according to IMS Health.

On a consolidated basis, net profit of Natco Pharma rose 127.2% to Rs 66.55 crore on 75.6% rise in net sales to Rs 415.21 crore in Q2 September 2016 over Q2 September 2015.

Natco Pharma manufactures generic dosage forms, bulk actives and intermediates for the Indian and international markets.

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Volumes jump at Fag Bearings India counter
Jan 06,2017

Fag Bearings India clocked volume of 20,000 shares by 13:05 IST on BSE, a 212.29-times surge over two-week average daily volume of 95 shares. The stock lost 0.25% at Rs 3,891.

EIH notched up volume of 6.29 lakh shares, a 152.47-fold surge over two-week average daily volume of 4,000 shares. The stock fell 0.36% at Rs 96.05.

KPR Mill saw volume of 1.53 lakh shares, a 46.6-fold surge over two-week average daily volume of 3,000 shares. The stock rose 0.27% at Rs 566.25.

CCL Products (India) clocked volume of 3.13 lakh shares, a 38.36-fold surge over two-week average daily volume of 8,000 shares. The stock was unchanged at Rs 266.25.

eClerx Services saw volume of 52,000 shares, a 27.01-fold rise over two-week average daily volume of 2,000 shares. The stock was up 0.39% at Rs 1,430.

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India and Kazakhstan sign Protocol to amend the Double Taxation Avoidance Convention (DTAC)
Jan 06,2017

India and Kazakhstan signed here today in the national capital a Protocol to amend the existing Double Taxation Avoidance Convention (DTAC) between the two countries which was earlier signed on 9th December, 1996 for the avoidance of double taxation and for the prevention of fiscal evasion with respect to taxes on income.

Salient features of the Protocol are as under:

(i) The Protocol provides internationally accepted standards for effective exchange of information on tax matters. Further, the information received from Kazakhstan for tax purposes can be shared with other law enforcement agencies with authorisation of the competent authority of Kazakhstan and vice versa.

(ii) The Protocol inserts a Limitation of Benefits Article, to provide a main purpose test to prevent misuse of the DTAC and to allow application of domestic law and measures against tax avoidance or evasion.

(iii) The Protocol inserts specific provisions to facilitate relieving of economic double taxation in transfer pricing cases. This is a taxpayer friendly measure and is in line with Indias commitment under Base Erosion and Profit Shifting (BEPS) Action Plan to meet the minimum standard of providing Mutual Agreement Procedure (MAP) access in transfer pricing cases.

(iv) The Protocol inserts service PE provisions with a threshold and also provides that the profits to be attributed to PE will be determined on the basis of apportionment of total profits of the enterprise.

(v) The Protocol replaces existing Article on Assistance in Collection of Taxes with a new Article to align it with international standards.

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Sanguine Media fixes record date for consolidation of shares
Jan 06,2017

Sanguine Media has fixed 20 January 2017 as the Record Date for the purpose of Consolidation of equity shares (Face value from Re. 1/- to Rs. 10/- per equity share).

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Wockhardt leads gainers in A group
Jan 06,2017

Wockhardt jumped 7.23% to Rs 721.95 at 12:40 IST. The stock topped the gainers in the BSEs A group. On the BSE, 6.27 lakh shares were traded on the counter so far as against the average daily volumes of 1.87 lakh shares in the past two weeks.

Wockhardt said that competent authority, Berlin, Germany has issued EU good manufacturing practices (GMP) certificate confirming that companys manufacturing facility at 138, GIDC Estate, Ankaleshwar, Gujarat, complies with the principles and guidelines of good manufacturing practices. The certificate issued in this regard is valid for 3 years. The announcement was made after market hours yesterday, 5 January 2017.

JSW Energy jumped 7.14% to Rs 66.05. The stock was the second biggest gainer in A group. On the BSE, 10.59 lakh shares were traded on the counter so far as against the average daily volumes of 2.81 lakh shares in the past two weeks.

Fortis Healthcare gained 5.02% at Rs 194.50. The stock was the third biggest gainer in A group. On the BSE, 9.05 lakh shares were traded on the counter so far as against the average daily volumes of 1.35 lakh shares in the past two weeks.

Religare Enterprises surged 4.38% at Rs 261. The stock was the fourth biggest gainer in A group. On the BSE, 3,244 shares were traded on the counter so far as against the average daily volumes of 912 shares in the past two weeks.

Indian Bank rose 4.57% to Rs 238.90. The stock was the fifth biggest gainer in A group. On the BSE, 1.43 lakh shares were traded on the counter so far as against the average daily volumes of 55,000 shares in the past two weeks.

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MBL Infrastructures gains on bargain hunting post 55.62% tumble
Jan 06,2017

Meanwhile, the BSE Sensex was up 15.52 points, or 0.06%, to 26,893.76.

On the BSE, 4,370 shares were traded in the counter so far, compared with an average volume of 79,874 shares in the past one quarter. The was locked at a high of Rs 40.15 so far during the day. The stock had hit a 52-week high of Rs 224 on 6 January 2016. The stock had hit a 52-week low of Rs 34.65 yesterday, 5 January 2017.

The stock had underperformed the market over the past one month till 5 January 2017, dropping 49.8% compared with the Sensexs 2.01% rise. The scrip had also underperformed the market in past one quarter, slumping 66.54% as against the Sensexs 4.76% fall.

The small-cap company has an equity capital of Rs 41.45 crore. Face value per share is Rs 10.

Shares of MBL Infrastructures had witnessed unabated selling post announcement of reverse turnaround in Q2 results on 14 December 2016. MBL Infrastructures reported consolidated net loss of Rs 121.84 crore in Q2 September 2016 compared with net profit of Rs 17.47 crore in Q2 September 2015. Consolidated net sales fell 7.9% to Rs 378.99 crore in Q2 September 2016 over in Q2 September 2015.

Shares of the company had dropped 55.62% in sixteen sessions to close at Rs 36.45 on 4 January 2017 from its close of Rs 82.15 on 13 December 2016.

Selling pressure was also aggravated after MBL Infrastructures on 14 December 2016 announced that Madhya Pradesh Road Development Corporation Limited (MPRDC) illegally terminated two projects being executed by the 100% subsidiaries of the company.

MPRDC illegally terminated build, operate and transfer (BOT) project of development and operation of Seoni-Katangi-Maharashtra border section of State Highway no. 54 by two laning on design, build, finance, operate and transfer (DBFOT) basis being executed by the 100% subsidiary of the company MBL Highway Development Company Limited.

The another BOT project was for widening and upgrading of Garra-Waraseoni-Maharashtra border section of Major District Road (MDR) in Madhya Pradesh through public private partnership (PPP) on DBFOT basis being executed by the 100% subsidiary of the company MBL (MP) Road Nirman Company Limited.

The company had said at that time that arbitration has been invoked by both the subsidiary companies as per the provisions of the concession agreement.

MBL Infrastructures is engaged in execution of civil engineering projects with specialisation in roads & highways. The company has a rich experience in road building and maintenance. The company has an integrated business model for engineering, procurement and construction (EPC) and BOT (build-operate-transfer) projects.

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Strong Q3 earnings boost Chartered Logistics
Jan 06,2017

The result was announced after market hours yesterday, 5 January 2017.

Meanwhile, the S&P BSE Sensex was up 10.31 points or 0.04% at 26,888.55.

On the BSE, 17.89 lakh shares were traded on the counter so far as against the average daily volumes of 2.81 lakh shares in the past one quarter. The stock had hit a high of Rs 24.90 and a low of Rs 22.90 so far during the day.

The stock had hit a 52-week high of Rs 26.70 on 4 August 2016 and a 52-week low of Rs 13.25 on 12 February 2016. It had outperformed the market over the past one month till 5 January 2017, advancing 16.24% compared with the Sensexs 2.01% rise. The scrip had also outperformed the market in past one quarter, gaining 11.71% as against the Sensexs 4.76% fall.

The small-cap company has equity capital of Rs 9.93 crore. Face value per share is Rs 1.

Chartered Logistics is a logistics company and a transport service provider.

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GE Power India gains after securing new order
Jan 06,2017

The announcement was made after market hours yesterday, 5 January 2017.

Meanwhile, the S&P BSE Sensex was down 12.06 points or 0.04% at 26,866.18.

On the BSE, 1,146 shares were traded on the counter so far as against the average daily volumes of 1,617 shares in the past one quarter. The stock had hit a high of Rs 545 and a low of Rs 525 so far during the day.

The stock had hit a 52-week high of Rs 689.15 on 8 January 2016 and a 52-week low of Rs 440.50 on 21 November 2016. The stock had outperformed the market over the past one month till 05 January 2017, advancing 8.26% compared with the Sensexs 2.01% rise. The scrip had also outperformed the market over the past one quarter, declining 3.79% as against the Sensexs 4.76% fall.

The mid-cap company has equity capital of Rs 67.23 crore. Face value per share is Rs 10.

GE Power India announced that it has been awarded a contract by NTPC ALSTOM Power Services (a 50:50 joint venture between NTPC & GE) of approximately Rs 198.80 crore including duties and taxes for steam turbine upgrade project at NTPCs Ramagundam super thermal power plant in Telangana. The companys scope of work consists of supply of steam turbine module, its auxiliaries, turbine controller and spares including supervision of erection, commissioning and testing, GE Power India said.

GE Power India reported net loss of Rs 97.10 crore in Q2 September 2016, higher than net loss of Rs 48.02 crore in Q2 September 2015. Net sales declined 9.8% to Rs 477.65 crore in Q2 September 2016 over Q2 September 2015.

GE Power India is engaged in power generation with deep domain expertise to help customers deliver electricity from a wide spectrum of fuel sources.

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ADB Sells Dual-Tranche $3 Billion 3-Year and $1 Billion 10-Year Global Benchmark Bonds
Jan 06,2017

The Asian Development Bank (ADB) returned to the US dollar bond market with the pricing of a dual-tranche $3 billion 3-year and $1 billion 10-year global benchmark bond issues, proceeds of which will be part of ADBs ordinary capital resources.

n++The first week of January has traditionally been an extremely busy issuance period with clear first-mover advantages and New Year cash flows we were keen to capitalize on. As the supply picture unfolded, there was a clear window to navigate the building pipeline with a maturity differentiating 3/10-year dual-tranche transaction. This format allows us to respond to demand in the front and back-end of the curve and I am pleased to see the solid investor response for ADBs credit and support of its mission in the region,n++ said ADB Treasurer Pierre Van Peteghem.

The 3-year bond, with a coupon rate of 1.750% per annum payable semi-annually and a maturity date of 10 January 2020, was priced at 99.942% to yield 28.05 basis points over the 1.375% US Treasury notes due December 2019. The 10-year bond, with a coupon rate of 2.625% per annum payable semi-annually and a maturity date of 12 January 2027, was priced at 99.451% to yield 23.75 basis points over the 2.000% US Treasury notes due November 2026.

The transactions were lead-managed by Citi, Goldman Sachs, J.P. Morgan, and Nomura. A syndicate group was also formed consisting of Bank of America Merrill Lynch, BMO Capital Markets, BNP Paribas, Credit Agricole CIB, Daiwa Securities, DBS Bank, Mizuho International, RBC Capital Markets, SMBC Nikko, and TD Securities.

Both issues achieved wide primary market distribution with 40% of the 3-year bonds placed in Asia, 29% in Europe, Middle East, and Africa, and 31% in the Americas. By investor type, 72% of the bonds went to central banks and official institutions, 8% to banks, and 20% to fund managers and other types of investors. For the 10-year bonds, 27% were placed in Asia, 20% in Europe, Middle East and Africa, and 53% in the Americas. By investor type, 47% of the bonds went to central banks and official institutions, 11% to banks, 42% to fund managers and other types of investors.

ADB plans to raise around $25-30 billion from the capital markets in 2017.

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Attractive compensation package to recruit best professionals for PSBs on anvil: Vinod Rai
Jan 06,2017

The Banks Board Bureau is working on a fairly attractive compensation package including elements of bonus, employee stock ownership plans (ESOPs), non-monetary perks and others at all management levels as part of corrective steps to ensure that best of professionals are recruited for public sector banks (PSBs), its chairman, Mr Vinod Rai said at an ASSOCHAM event.

n++In some ways the compensation package of these public sector institutions needs to be improved, maybe we are not able to do much with fixed part of compensation package but variable part we certainly are looking into it and we are hopeful that by next financial year we will be able to introduce a far more attractive package,n++ informed Mr Rai.

n++An attempt will be made to introduce accountability in the system, to ensure that you appoint a whole time director or a CEO (chief executive officer) at an age where he has got a minimum of six years more to go in the institution so that he can be held accountable for the decision,n++ added Mr Rai.

He also said that the Banks Board Bureau is in the process of filling up vacancies. n++We are looking for the right people, and we are trying to ensure that we choose the best and not the second-best.n++

Mr Rai further said, n++We are in the business of trying to collate people who are from different walks of life and who will be willing to join boards of PSBs and be able to provide that kind of expertise which these banks have not had in the past and the effort is to ensure that it is these boards which run the banks.n++

He said that all these activities are being carried out to establish a system and structure sans unhealthy practices that led to huge stress in the banking sector.

Mr Rai said that though the Corporate Debt Restructuring Cell was created with very noble intentions in early 2000s but later it found itself sagging with humongous amount of stressed assets in which there was no way it could manage those resources.

He said that there have been innumerable cases where project reports were inflated, balance sheets manipulated and submitted, funds siphoned off and others.

While on the other hand there are an equal number of instances where irresponsible or lazy lending took place, due diligence was given the go by and where supervision was callous.

n++In the Banks Bureau we are engaged in the task of trying to ensure that going forward, these things do not repeat themselves, a project report needs to be scrutinised very effectively, maybe we were lacking in experience in the banks which scrutinised or appraised these project reports, these have to be done by one or may be two independent agencies not having anything in common with each other,n++ he said.

Sharing his perspective on the most recent demonetisation move of the Union Government, he said that there is no harm in trying to cleanse the system and there are various ways to do it and demonetisation was one very effective way.

n++Any attempt to cleanse the economy is a very noble attempt and we should lend our energies in ensuring that process of cleansing takes place,n++ said Mr Rai.

n++It is far too early for us to say it is a success or not a success,n++ he added.

He also said that over the period of time banks may go in for mergers, consolidation and lots of thinking was going into the entire process.

n++The entire process is being thought of, it is not going to materialise in two or three months, it is a long drawn process, there is a lot of work which has to be done and once the roadmap is ready and hopefully in the next two to three years it will be rolled out,n++ said Mr Rai.

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SpiceJet nudges higher on buzz of fleet expansion
Jan 06,2017

Meanwhile, the BSE Sensex was up 7.62 points, or 0.03%, to 26,885.86.

On the BSE, 20.65 lakh shares were traded in the counter so far, compared with an average volume of 42.64 lakh shares in the past one quarter. The stock had hit a high of Rs 64.70 and a low of Rs 63.50 so far during the day. The stock had hit a 52-week high of Rs 95.30 on 28 January 2016. The stock had hit a 52-week low of Rs 54.50 on 9 November 2016.

The stock had underperformed the market over the past one month till 5 January 2017, rising 0.48% compared with the Sensexs 2.01% rise. The scrip had, however, outperformed the market in past one quarter, gaining 8.04% as against the Sensexs 4.76% fall.

The mid-cap low-cost airliner has an equity capital of Rs 599.45 crore. Face value per share is Rs 10.

As per reports, the deal, which would more than double SpiceJets 40-plane fleet, may be closed within weeks. The order could be worth about $10.1 billion, report added.

SpiceJets net profit jumped 103.1% to Rs 58.92 crore on 33.9% rise in net sales to Rs 1378.47 crore in Q2 September 2016 over Q2 September 2015.

SpiceJet is a low-cost airliner.

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Bharti Infratel moves higher on brokerage upgrade
Jan 06,2017

Meanwhile, the S&P BSE Sensex was down 1.09 points at 26,877.15.

On the BSE, 13,000 shares were traded on the counter so far as against the average daily volumes of 1.24 lakh shares in the past one quarter. The stock had hit a high of Rs 355.40 and a low of Rs 351.60 so far during the day.

The stock had hit a 52-week high of Rs 426 on 6 January 2016 and a 52-week low of Rs 302.10 on 24 June 2016. It had underperformed the market over the past one month till 5 January 2017, sliding 9.74% compared with the Sensexs 2.01% rise. The scrip had also underperformed the market in past one quarter, declining 6.99% as against the Sensexs 4.76% fall.

The large-cap company has equity capital of Rs 1849.61 crore. Face value per share is Rs 10.

The brokerage expects stronger tenancy growth for Bharti Infratel. Bharti Airtels stake sale in the company could be a catalyst, it added. The brokerage has raised its earnings estimates for Bharti Infratel by 2-3% for FY 2018-19.

Bharti Infratels consolidated net profit rose 30.8% to Rs 773.80 crore on 9% growth in net sales to Rs 1496.30 crore in Q2 September 2016 over Q2 September 2015. The company is scheduled to announce Q3 December 2016 results on 23 January 2017.

Bharti Infratel is a provider of telecom tower and related infrastructure.

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