PSU Banks extend gain; Andhra Bank, Indian Overseas Bank up over 5%
Posted on 1st April 2019 |
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Shares of public sector banks (PSB) continued to trade higher with the Nifty PSU Bank index up nearly 3 per cent on hopes of margin expansion.
Andhra Bank, United Bank of India, Corporation Bank, Indian Overseas Bank, Uco Bank, Bank of Maharashtra and Syndicate Bank were up more than 5 per cent each while Punjab National Bank (PNB), Bank of Baroda (BOB), Union Bank of India, Bank of India and Indian Bank were up in the range of 2 to 3 per cent on the National Stock Exchange (NSE).
At 11:53 am, the Nifty PSU Bank index, the largest gainer among sectoral indices, was up 2.8 per cent on the NSE. In comparison, the benchmark index Nifty 50 was up 0.67 per cent, while Nifty Bank and Nifty Private Bank were up 0.37 per cent and 0.19 per cent, respectively.
Nifty PSU Bank index has rallied 29 per cent from its recent low on February 18, 2019, after the Union government approved a capital infusion of Rs 48,239 crore into 12 PSBs. Post capital infusion from the government, rating agencies ICRA and Moody’s had revised upwards their outlook in select PSBs.
Brokerage firm Elara Capital believes banks, primarily PSB & corporate-facing, expect further margin expansion, led by higher NPL recovery and lower fresh delinquency. Therefore, on net slippages, banks would witness interest income accruals vs interest income reversals in the past. Although it would be again a tactical phenomenon, post a base reset, the margin would plateau.
The State Bank of India (SBI) management expects improvement in margin in Q4FY19 and FY20; in FY20, NIM would be around 300bp. Domestic margin would be higher by 25-50bp. The improvement in margin would primarily accrue from higher credit-deposit ratio and lower fresh delinquency, thereby resulting in lower interest reversals on NPA, the brokerage firm said in a sector update.
Meanwhile, BoB was up 4 per cent to Rs 134, surging 24 per cent in the past one month on the NSE. The amalgamation of Vijaya Bank and Dena Bank into the BoB came into effect from today, April 1, and all branches of the former two function as branches of BoB. Post the merger, Bank of Baroda would be the third largest bank in the country.
Shares of PNB were up 5 per cent to Rs 100, trading close to its 52-week high price of Rs 107 touched on April 10, 2018, on the NSE in intra-day trade. Rating agency ICRA last month upgraded the outlook on all the long-term ratings and the medium-term rating has been revised to ‘Stable’ from ‘Negative’. The stable outlook factors in ICRA’s expectations of reduced asset quality pressure, improving solvency levels and expectations of improved earnings indicators in FY2020. The outlook will be revised to positive if the bank is able to demonstrate an improvement in the asset quality, capitalisation and solvency levels, as per ICRA’s estimates, by limiting fresh slippages. |
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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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