Combined m-cap of listed PSBs slips below that of HDFC Bank
Posted on 23rd February 2018 |
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| The combined market value of all listed state-owned banks has plunged below that of just one private lender – HDFC Bank – after a massive sell-off in shares of public sector banks in the wake of the biggest banking fraud in India. The combined market capitalisation of the 21 listed public sector banks on Thursday stood at Rs 4.34 lakh crore, Rs 46,726 crore less than the valuation of HDFC Bank at Rs 4.81 lakh crore. Interestingly, these 21 banks account for about 70% of the total advances of all listed banks, according to Capitaline data. HDFC Bank’s share of advances of this set is about 7.5%. The shares of state-owned banks, which are saddled with bad assets and slipping profitability, had caught the attention of investors following the government’s capital infusion plan of Rs 2.1 lakh crore announced last October. However, the fraud at the Punjab National Bank coupled with the surprise loss of State Bank of India in Q3 FY18 have resulted in the combined market capitalisation of these banks receding to the same level, as before the government’s recap announcement. The Nifty PSU Bank index has come-off 23% from its mid-November peak. This translates to a combined market cap loss of Rs 1.14 lakh crore, with SBI alone losing Rs 55,936 crore in market value. PNB has lost Rs 12,771 crore in market cap and Bank of Baroda Rs 9,297 crore. Shares of PNB, Bank of India, Allahabad Bank and Bank of Maharashtra have lost more than 37% of their value from their November highs, with PNB losing the most at 45%. Analysts believe the fraud will lead to higher provisioning and may further impact the profitability of banks, which are already grappling with growing bad loan assets. For the quarter ended December 2017, 16 public sector banks together posted a net loss of Rs 18,948 crore, with State Bank of India reporting a loss of Rs 2,416 crore. Bank of India reported a net loss of Rs 2,341 crore during the quarter. On Wednesday, Jefferies reduced the price target on PNB, but maintained its ‘hold’ rating. The brokerage observed that the alleged fraud in the bank necessitates capital infusion of Rs 5,500 crore to just about meet CET 1/AT 1/CRAR norms, calling it “capital at risk” after operational failure. Along with the new regulation on stressed assets and disarray in trade-finance, the next two quarters look dismal with low growth and higher provisions, the brokerage said. It now estimates a loss of Rs 7,600 crores ($1.17 bn) in FY18 and loss of R8,760 crore in Q4 of FY18 for PNB. The bank had reported a net profit of Rs 230 crore in third quarter of FY18. |
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Bharti Airtel defers Q2 results till Nov 14 over ambiguity on AGR verdict
Posted on 29th October 2019 |
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Bharti Airtel said on Tuesday it has postponed its second-quarter earnings report to mid-November, as the wireless operator sought clarity on the court ruling asking telecom firms to cough up overdue payments to the government.
Shares of the company, which was expected to release its quarterly numbers later in the day, dropped 3.3 per cent in early trade. |
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Rupee slips 8 paise vs US dollar in early trade amid drop in oil prices
Posted on 7th October 2019 |
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The rupee on Monday opened eight paise lower at 70.96 against the US dollar amid drop in crude oil prices and rise in Asian equities. The domestic unit on Friday closed almost flat at 70.88 against after the Reserve Bank of India (RBI) in a widely expected move cut key interest rates by 0.25 percentage point. On a weekly basis, the local unit slumped by 32 paise. |
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LIC pips private insurers in first-year premium growth during April-August
Posted on 13th September 2019 |
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In the first five months of the current financial year, first-year premiums of life insurance companies grew by 39.84% (year-on-year) at Rs 1.05 lakh crore as compared to Rs 75,588.35 crore in April-August of 2018-19. Life Insurance Corporation of India (LIC) continued to grow at a faster pace compared to private insurance players, shows the data from the Insurance Regulatory and Development Authority of India (Irdai). |
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Apollo Hospitals rules out further stake sale
Posted on 13th September 2019 |
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Apollo Hospitals Enterprise (AHEL) has ruled out further dilution of promoters’ stake in the company. The company also said its Rs 1,337-crore stake sale of Apollo Munich Health Insurance with mortgage major HDFC will be concluded by October. Following these stake sales, the promoters’ pledged position will come down from a high of 76% to 54% by October and eventually to 20% by November or December, company sources said here. |
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World trusts India on Kashmir, not us: Pakistan minister Ijaz Ahmed Shah
Posted on 13th September 2019 |
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In a major embarrassment for Pakistan and its Prime Minister Imran Khan, the country's Interior Minister Ijaz Ahmed Shah, a retired brigadier, said the international community didn't believe Pakistan's narrative on Kashmir; instead it is India whose version is trusted. |
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