The fund will provide a pipeline for central banks to invest in bonds issued by sovereigns and corporates that comply with strict international green standards, the BIS said in a statement.
“The fund will work closely with the Asian Development Bank (ADB) and other development financial institutions as well as other issuers,” the statement said.
Mumbai, Bank credit grew by 6.48 per cent to Rs 110.13 lakh crore and deposit by 10.16 per cent to Rs 157.56 lakh crore in the fortnight ended October 8, RBI data showed. In the year-ago fortnight ended October 9, bank advances were at Rs 103.43 lakh crore, and deposits were at Rs 143.02 lakh crore, according to RBI’s Scheduled Banks’ Statement of Position in India as on October 8, 2021 data, released on Thursday.
In the previous fortnight ended September 24, 2021, bank credit had grown by 6.67 per cent and deposit by 9.34 per cent.
In FY2020-21, bank credit had grown by 5.56 per cent and deposit by 11.4 per cent.
Indian markets have dipped in the last 2-days, having been on a winning streak for the last one week. According to Mr. Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd, the markets are likely to further consolidate given weak global cues, ongoing earnings season and elevated valuations.
“The earnings declared so far has been mixed with cost inflationary pressure being clearly visible on margins. Since the valuations are now at absurdly higher levels, many stocks are priced to perfection thus leaving very little room for any king of disappointment. Thus even slight deviation from result expectation is resulting in steep reactions. We would suggest traders to stay cautious given the kind of volatility being witnessed in the market. Investors on the other hand, should accumulate quality names on every dip as the margin pressure is short term phenomenon while the long term prospects remain bright for the equity markets,” he says.
Here are a few buy and sell stock ideas for short term traders, as suggested by technical experts.
Dr. Ravi Singh, Head of Research & Vice President, ShareIndia
Gabriel India: Buy the stock at Rs 152, sell the stock at Rs 165, Stop Loss at Rs 145
Bank of India: Buy the stock at Rs 61, sell the stock at Rs 75, Stop Loss Rs 55
Manoj Dalmia, Founder and Director, Proficient equities Private Limited
Tanla Solution: Buy the at Rs 1016, target Rs 1068, Stop Loss Rs 994.
Ravi Singhal, Vice chairman, GCL Securities Limited
Federal Bank, Buy at Rs 97, Stop Loss Rs 92, Target Rs 111.
Disclaimer
The above stocks are chosen by investing experts. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the article.
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Story first published: Friday, October 22, 2021, 8:41 [IST]
Gold rates usually gain significantly in the international markets when the US dollar index drops or the economy loses its momentum. But at present, the global scenario has mostly crossed both of these dimensions, as the US dollar is staying upfront and economic activities are also heading north. Yet, gold prices, globally are trying to maintain a moderate level at around $1785/oz, since last week. Although it failed to stay at 2020’s peak levels when the Pandemic was also at its peak.
Last traded gold rates
The Comex December gold futures closed at $1781, and the spot market stood at $1784, while the MCX gold futures closed at Rs. 47,386 on October 21. Global gold rates are resisting the path at around $1780 – $1785 now while trying to reach the $1800 level again. The concerns over inflation are helping the gold rates to stay bullish in the spot and futures markets.
USA’s Inflation rates
The US Bureau of Labor Statistics has recently released the inflation data for September concerning the Consumer Price Index (CPI). The report showed that the CPI – urban (CPI-U) has gained by 0.4%, crossing the expectations. So, since the last year collectively, items in the index have gained by 5.4%, before seasonal adjustment. The food price and energy prices hiked significantly, as the food index hiked 4%, and the energy index hiked over 24.8%. the inflation data of the US is, thus standing at a 30-years high level. On the other hand, USA’s supply chain bottleneck is another challenge, and the IMF is worried about it. Gold is a dollar-dominated asset class, and is inversely related to the US Dollar index. As the US Dollar rises, gold price falls, and vice versa.
However, commodity trader Paul Tudor Jones commented to CNBC that the present inflationary pressures are not just transitory. He also thinks that “the long side of commodity markets will be in keener favor in the coming months.”
On the other hand, commenting on the relation between gold rates and inflation, Gary Wagner told Kitco, “This brings us to the double edge sword of inflationary pressures. Initially, the dot plot that was presented by the Federal Reserve during the height of the pandemic inferred that there would be no interest rate hikes through 2021, and 2022. It is now believed that there will be two rate hikes in 2022 to help temper and reduce the record-high inflationary level. As interest rates are raised, gold becomes less favorable as a fixed-income investment such as U.S. debt becomes more favorable.”
USA Manufacturing data
Philadelphia Federal Reserve said its manufacturing business outlook fell a reading of 23.8 in October, down from its September reading of 30.7. The data missed expectations as consensus forecasts were calling for reading around 25.1. The report supported the gold markets on a short-term basis. The report additionally mentioned that the Prices Paid Index (PPI) has hiked to 70.3, which is up from 67.3 in September, making it a positive turn for the gold market. Hence, the December gold futures bulls are having the overall near-term technical advantage.
As the gold rates are quite volatile now, the cryptocurrency is rallying significantly and standing above $64,000. The US stock markets are also recovering. The 10-year US Treasury yield is also fetching around 1.66%.
However, gold investors are also worried about the US Fed meeting in November, when they might declare the tapering timeline.
The National Asset Reconstruction Company (NARCL), or bad bank, is likely to get the first tranche of bad assets worth about Rs 90,000 crore by January 2022, according to a report. In the first phase, fully-provisioned toxic assets will be transferred.
Finance Minister Nirmala Sitharaman in the budget for 2021-22 had announced that an asset reconstruction company or a bad bank would be set up to consolidate and take over existing stressed assets of lenders and undertake their resolution. A bad bank refers to a financial institution that takes over bad assets of lenders and undertakes resolution.
Last month, the Cabinet had approved a proposal to offer sovereign guarantee on the security receipts (SRs) issued by the NARCL, It is estimated to cost the govenrment Rs 30,600 crore over five years.
Recovery hopes
The bad bank hopes to recover between Rs 50,000 crore and Rs 64,000 crore through the resolution of bad loans amounting to Rs 2 lakh crore.
The lowest recovery is seen at 25 per cent or Rs 50,000 crore, while the highest recovery rate is pegged at 32 per cent, or Rs 64,000 crore. The most likely recovery has been pegged at 28 per cent or Rs 56,000 crore.
The NARCL will buy the assets around Rs 36,000 crore or, about 18 per cent of the book value of Rs 2 lakh crore assets. About 15 per cent of Rs 36,000 crore would be paid by NARCL to banks in cash and the remaining 85 per cent via security receipts guaranteed by the Centre.
Close to liquidation
Though banks have made 100% provision for these assets, Rajkiran Rai, MD & CEO of Union Bank of India, does not expect more than 20-25 per cent recovery from these legacy accounts, he told a television channel.
The State Bank of India has identified NPAs with Rs 17,000-18,000 crore outstanding to be transferred to the NARCL, while Punjab National Bank has identified Rs 8,000 crore worth of NPAs, Union Bank of India Rs 7,800 crore of NPAs to be transferred to the National ARC. The Bank of India has identified about Rs 5,500 crores of assets for transfer while Indian Bank about Rs 1,900 crore.
Assets
Banks have identified Rs 82,496 crores worth of bad loans that could be transferred to the NARCL, which has names like Videocon’s VOVL (Rs 22,532 crores total exposure), Reliance Naval and Engineering Ltd (Rs 8,934 crore), Amtek Auto (Rs 9,014 crore), Jaypee Infratech (Rs 7,950 crore, Castex Technologies (Rs 6,337 crore), GTL Ltd (Rs 4,866 crore), Visa Steel (Rs 3,394 crore), Wind World India Ltd (Rs 3,161 crore), Lavasa Corporation (Rs 1,424 crore), Consolidated Construction Consortium Ltd (Rs 1,353 crores).
Several assets such as Videocon have seen realisable value close to liquidation value in NCLT proceedings. Many big-ticket resolutions at IBC have seen haircuts over 90%. With most of the NPAs proposed to be transferred to the bad bank being old legacy NPAs, there has been an erosion in value, making them more likely to head to liquidation.
Lavasa Corporation has got bids worth Rs 700 crore for loan claims of over Rs 8,000 crore at NCLT.
IPO market has been enticing retail category to institutional investors such as mutual funds and as per a report for the September month mutual funds lapped up IPO stocks worth some good substantial amount. Now as the street has been witnessing some correction owing to profit booking but by and large the sentiment looks positive, there will be continue to be seen IPOs tapping the current momentum.
10 Pharma And Wellness Firms That Have Filed DRHP With Sebi For IPO
Within the sector the pharma sector is riding the IPO wave with not just listing gains but also is offering stupendous returns ever since listing. Now of the Rs. 65000 crore raised through the IPO route so far this year, close to 22 percent has been accounted by the healthcare and pharma space.
Now after a strong number from the space has already made its way to the D-street, few more in the pipeline that have done their initial formality by filing an IPO DRHP are given below:
1 Wellness Forever Medicare:
This is an Adar Poonawalla-backed company that has filed DRHP for Rs. 1500 crore IPO.offer. The IPO consists of a fresh issue of equity shares up to Rs 400 crore and an offer for sale up to 1.60 crore equity shares, according to DRHP. This is the second IPO by a pharmacy chain that is based out of Mumbai with presence in as many as 23 cities across Maharashtra, Goa, and Karnataka.
2. Global Health Ltd./Medanta Hospitals:
The group that operates hospital under the brand name Medanta has filed for an initial share sale. The initial public offering (IPO) consists of a fresh issue of equity shares aggregating to Rs 500 crore, and an offer for sale of up to 4.84 crore equity shares, according to the draft red herring prospectus (DRHP).
In the current regime, there are 4 hospitals operating from 4 cities and one is under construction in Patna and the other is planned for Noida.
3. Sahajanand Medical Technologies:
The heart stent making company has filed for Rs. 1500 crore IPO. The issue comprises a fresh issue of shares of around Rs 410 crores and an offer for sale component of Rs 1,089 crore. It will also provide a partial exit to the investors Morgan Stanley Private Equity Asia and Samara Capital who hold 18.44 percent and 36.59 percent, respectively, in the company.
4. Veeda Clinical Research Limited:
The clinical research entity Veeda Clinical Research Limited has filed its draft red herring prospectus (DRHP) with capital markets regulator Securities and Exchange Board of India (Sebi) for raising funds from the primary markets.
The issue will consist of an issuance of fresh equity shares worth up to Rs331.60cr and an offer for sale (OFS) of Rs500cr by promoters and existing shareholders.
5. Healthium Medtech:
The global medtech company with focus chiefly on surgical, post surgical as well as chronic care has filed for an IPO. The public issue comprises a fresh issue of Rs 390 crore and an offer for sale of 3.91 crore equity shares by selling shareholders. The funds raised from the fresh issue are proposed to be utilised for repaying debts, investments in subsidiary firms, acquisitions and other strategic initiatives and general corporate purposes.
6. MedPlus Health Service:
Hyderabad based Pharmacy retailing company has filed DRHP for Rs. 1639 crore IPO. The IPO shall include a fresh issuance of shares worth Rs 600 crore and an offer for sale (OFS) of equity up to Rs 1,038.7 crore by promoter and shareholders. The company’s offerings range from pharmaceutical and wellness products including medicines, vitamins, medical devices and test kits, and FMCG products such as home and personal care products including toiletries, baby care products, soaps and detergents and sanitisers.
7. Infinion Biopharma IPO:
The company has filed DRHP for the sale of 45 lakh equity shares of the company.
This is a life sciences company Infinion Biopharma is an innovation-driven life sciences company integrating biophysics and engineering with traditional pharmacology and biochemistry to produce high-value, innovative products across a range of therapeutic areas.
8. Emcure Pharma:
The leading pharma company is expected to float an IPO of Rs. 4500-5000 crore IPO . The initial public offering (IPO) comprises fresh issuance of equity shares worth Rs. 1,100 crore and an offer of sale (OFS) of 18,168,356 shares by promoters and existing shareholders, according to the draft red herring prospectus (DRHP). The company produces a broad range of pharma products across therapeutic areas.
9. Supriya Lifesciences:
The Mumbai based drug making company has filed an IPO for Rs. 1200 crore IPO. According to the prospectus, the IPO consists of a fresh issue of shares worth Rs 200 crore and an offer of sale (OFS) of shares worth up to Rs 1,000 crore held by its promoter Satish Waman Wagh. The face value of each share is Rs 2.
The company is the leading manufacturer and supplier of APIs with a focus on research and development.
10. VLCC Health care ltd.:
The wellness company has filed for raising funds via an IPO.The company in 2016 had withdrawn its IPO because of demonetization then. The initial public offering comprises a fresh issue of Rs 300 crore by the company and an offer for sale of 89,22,672 equity shares by promoter and investors.
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In the retail loan segment, housing loans grew by 20.35%, while vehicle loans were up 27% compared to a year ago. The earlier stressed MSME too was showing clear signs of cash flow and better capacity utilisation, the CEO said. MSME advances grew 20.66% YoY to Rs 22,995 crore for Q2FY22.
Bank of Maharashtra (BoM) on Thursday reported a 102.71% Y-o-Y rise in its net profit to Rs 264 crore for the September quarter. The net interest margin improved to 3.27% on a Y-o-Y basis against 2.3% in the comparable quarter last year. Net interest income increased by 33.84% to Rs 1,500 crore, compared with Rs 1,120 crore during Q2FY21.
The bank’s net NPA was at 1.73%, while gross NPA came in at 5.56%, as against a net NPA ratio of 3.30% and gross NPA ratio of 8.81% last year. The bank’s provisional coverage ratio improved to 92.38%. It held cumulative Covid-19 provision of Rs 973 crore as on September 30, 2021.
AS Rajeev, CEO, said this was the highest net interest margin reported by the bank in the last five years. Apart from the rise in the net interest margin and net interest income, profits got a boost with Rs 258-crore recovery from the DHFL account and Rs 80 crore from another small account, taking the total recovery to Rs 340 crore. BoM had an exposure of Rs 553 crore to Srei Group which was written off and fully provided for, he said.
Rajeev expects the bank to see a credit growth of around 14-16% for the full year as the economy is opening up. The bank’s strategy of reducing the share of corporate loans and expanding the retail, agriculture and MSME (RAM) segment has paid dividends, with RAM advances growing by 14.4% YoY to Rs 30,4800 crore, he said.
In the retail loan segment, housing loans grew by 20.35%, while vehicle loans were up 27% compared to a year ago. The earlier stressed MSME too was showing clear signs of cash flow and better capacity utilisation, the CEO said. MSME advances grew 20.66% YoY to Rs 22,995 crore for Q2FY22.
The bank plans to raise funds to meet its growth requirements. It raised equity capital of Rs 403.70 crore in the second quarter. It has plans to raise Rs 1,000 crore through tier II bonds.
Total business grew by 13.27% to Rs 296,808 crore. Deposits rose 14.47% to Rs 181,572 crore while gross advances increased 11.44% to Rs 115,235 crore.
Slippages amounted to Rs 1,541 crore, down from Rs 1,577 crore in Q1FY22. Recoveries and upgrades were to the tune of Rs 1,910 crore, up from Rs 1,596 crore in the June quarter. The slippage ratio for the year so far stands at 2.2% and the bank intends to contain it at around 3% for the full year.
IDBI Bank on Thursday reported a 75% year-on-year (y-o-y) jump in net profit to Rs 567 crore for the quarter ended September, driven by a reduction in employee costs and an improvement in net interest income (NII).
The bank’s NII, or the difference between interest earned and interest expended, rose 9.45% y-o-y to Rs 1,854 crore.
P Sitaram, chief financial officer, IDBI Bank, explained that the improvement in the bottom line was aided by certain accounting benefits.
“We have seen a reduction in the employee cost. In September 2020, because of the interest rate movement, we had to take an actuarial hit on retirement benefits. This year so far, the movement in interest rates has not given rise to any significant increase in retirement benefits over and above the March 2021 levels,” Sitaram said.
The private lender’s pre-provisioning operating profit rose 15% y-o-y to Rs 1,209 crore. The net interest margin (NIM), a key measure of profitability, stood at 3.02%, down 104 basis points (bps) sequentially.
The lender’s provisions rose 11.6% y-o-y to Rs 434 crore in Q2FY22. Asset-quality performance was a mixed bag as the gross non-performing asset (NPA) ratio improved to 20.92% in Q2FY22 from 21.48% in the previous quarter. The net NPA ratio rose to 1.62% in the September quarter from 1.56% in the June quarter. The provision coverage ratio (PCR) improved to 97.27% as on September 30, 2021, from 95.96% as on September 30, 2020.
Slippages amounted to Rs 1,541 crore, down from Rs 1,577 crore in Q1FY22. Recoveries and upgrades were to the tune of Rs 1,910 crore, up from Rs 1,596 crore in the June quarter. The slippage ratio for the year so far stands at 2.2% and the bank intends to contain it at around 3% for the full year.
The bank’s total deposits fell 0.26% y-o-y to Rs 2.23 lakh crore at the end of September 2021. The value of current account savings account (CASA) with the bank increased 13% y-o-y to Rs 1.22 lakh crore. The share of CASA in total deposits improved to 54.64% as on September 30, 2021, against 48.33% as on September 30, 2020. Gross advances grew 0.41% y-o-y to Rs 1.64 lakh crore at the end of September 2021. Retail loans accounted for 63% of the total loan book, with the rest being corporate loans.
Shares of IDBI Bank ended at Rs 55.60 on the BSE on Thursday, down 2.03% from their previous close.
Reserve Bank of India, Thiruvananthapuram had invited e-tender for Design, Supply, Installation, Testing and Commissioning of a Passenger Lift (Capacity – 6 Persons) at Amenities Block at Reserve Bank of India, Thiruvananthapuram, through the RBI Website and MSTC Portal on September 28, 2021.
2. In this context, it is notified that the schedule of events of the tender is modified as under.
Thrissur-based South Indian Bank posted a net loss of ₹187.06 crore in the second quarter of FY22 against a net a profit of ₹65.09 crore during the corresponding period of FY21.
The operating profit stood at ₹111.91 crore as against ₹390.94 core for Q2FY21.
As per the RBI direction, provision for depreciation on investments amounting to ₹175.56 crore for Q2FY22 has been shown under “other income” in the profit and loss account, which was originally classified under “provisions and contingencies. Further, amounts recovered from written-off accounts were reclassified under “provisions and contingencies” against previous year classification under “other income”. Excluding these amendments, operating profit would have been ₹346 crore, a press statement said.
The bank has made an additional provision of ₹160 crore which resulted in improved PCR, from 60.11 per cent as on June 30 to 65 per cent as on September 30, 2021. Had this additional provision of ₹160 crore not been provided, the net loss of the bank would be ₹27.06 crore.
NPAs improve
GNPA improved by 137 bps to 6.65 per cent as at September 30 compared to 8.02 per cent as at June 30. CASA ratio improved to 30.8 per cent as at September 30 compared to 27.8 per cent.
According to Murali Ramakrishnan, MD & CEO, the prevailing Covid pandemic scenario impacted the growth in the business and personal loan segment. However, the bank could register reasonable growth in the desired segments like well-rated corporates and gold loan portfolios during the period.
The bank has also been able to meet targeted levels of recovery/upgrades which has helped in containing the GNPA level. The Capital Adequacy Ratio stands comfortable at 15.74 per cent as on September 30, 2021. The bank plans to raise additional capital during FY21-22 to further strengthen the capital base, he added.
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