Equity Research Report 03 July 2017 Ways2Capital

TECHNICAL TREND ( NIFTY - BANK NIFTY FUTURES ) NIFTY FIFTY : - Last week Nifty showed profit booking as FII created sell position in the F&O. The Nifty Index made a high of 9699 and closed at 9575 after making a low of 9565. On Tuesday 27th June,the Nifty fell 142 points from day’s high. it opened at 9594, made a high of 9615 and closed at 9511 after making a low of 9473. Ahead of GST implementation, investors remained cautious and booked profits in Cash market. On Wednesday 28th June,the Benchmark Index Nifty opened at 9520 and closed at 9491 after making a low of 9474. The Index closed down by 20 points from its previous day close. On Thrusday trading session, Index Nifty opened at 9523 and closed at 9504 after making a high of 9576.The Index closed up by 13 points from its previous day close. NSE has recorded highest ever turnover in F&O segment on Thursday. The total turnover in F&O segment in yesterday’s trade stood at around Rs 14.1 lakh crore. The concern of GST disruptions & Normal monsoon in June so far may affect the domestic market sentiment. We expect market may continue to be under stress on earnings concern for Q1-Q2FY18 due to GST disruptions and NPA blues despite great thrust on deleveraging for stressed corporate India. Almost all the major sectors from steel, power to telecom are in stress. Time & price action Suggest Nifty need to Sustain over 9520 level for further up move toward 9642-9678 & Sustaining below 9500 level may drag the Index towards 9420-9297 in near term.

BANK NIFTY : - Bank Nifty also made a high of 23898 and closed at 23543 after making a low of 23508 in last week. The Banking shares gave correction last week, as the Reserve Bank of India asked banks to make higher provisioning on 12 large loan accounts. Bank Nifty fell allmost 730 points in two trading sessions and closed at 23216 after making a low of 23056 on Monday trading session.

Bank Nifty opened at 23210 and closed at 23236 after making a low of 23114 on Wednesday trading session.The Index closed up by 20 points from its previous day close. An unexpected RBI directive on weekend to Banks for requirement of higher provisions for the IBC NPA cases and ongoing farm loan waiver; this time from MH for Rs.34000 cr. Indian banks may be required to provide higher provisions for NPA cases under IBC and may also be required for around 60% of hair cuts to settle the large NPA (unviable projects); normally Banks in India can settle 40-50% or even 25% of the write off NPA, depending on various factors. Banks in India may have to also provide more provisions (+30%) for NPA as par changing accounting rules from next year. The Significance levels for Bank Nifty for next week trading sessions is 23130-22978 is down side and 23350-23700 is Up side

Monday, 3 July 2017

TECHNICAL VIEW (NIFTY- BANK NIFTY FUTURES ) NIFTY DAILY

WEEKLY

MONTHLY

R2

R1

PP

S1

S2

9675

9549

9486

9423

9297

R2

R1

PP

S1

S2

10039

9707

9541

9375

9043

R2

R1

PP

S1

S2

10341

9825

9567

9309

8793

R2

R1

PP

S1

S2

23780

23348

23132

22916

22484

R2

R1

PP

S1

S2

25281

24003

23364

22725

21447

R2

R1

PP

S1

S2

26061

24267

23370

22473

20679

BANK NIFTY DAILY

WEEKLY

MONTHLY

MOVING AVERAGE

21 DAYS

50 DAYS

100 DAYS

200 DAYS

NIFTY

9606

9474

9242

8827 20472

BANK NIFTY

23480

22948

21927

PARABOLIC SAR

DAILY

WEEKLY

MONTHLY

NIFTY

9694

9703

8770

BANK NIFTY

23864

23897

19595

PATTERN FORMATION ( NIFTY )

Detail of Chart - On the Above given daily chart of Equity index Nifty price seems to take a pause inside the breakdown zone before a swinging move. Nifty is expected to trade in a positive note in next trading session as the both the indicators are in positive territory and Nifty may touch the 9700 level. The Crucial levels of Nifty as per Technical Analysis is 9430-9361 is Down side and 9560-9648 is Up side.

PATTERN FORMATION ( BANK NIFTY )

Detail of Chart - On the Above given daily chart of Bank Nifty has Applied the Bollinger Band and Parabolic SAR both the indicators are indicating that the Bank Nifty to trade in positive territory in upcoming week Bank Nifty to trade in a Positive note for next week trading session the crucial levels for Bank Nifty as Per technical Analysis is 23148-22964 is down side and

NSE EQUITY DAILY LEVELS COMPANY NAME

R2

R1

PP

S1

S2

ACC ADANI PORTS

EQ EQ

1593 289

1582 367

1569 363

1558 362

1545 358

AMBUJACEM ASIAN PAINT AXISBANK BAJAJ-AUTO BANKBARODA BPCL BHEL BHARTIARTL BOSCH LTD BHARTI INFRATEL CIPLA COALINDIA CAIRN INDIA LTD DRREDDY GAIL GRASIM HCLTECH HDFC HDFCBANK HEROMOTOCO HINDALCO HINDUNILVR ICICIBANK ITC INDUSIND BANK INFY IDEA CELLULAR KOTAKBANK LT M&M MRF MARUTI SUZUKI ONGC NTPC RCOM RELCAPITAL RELIANCE RELINFRA RPOWER SBIN SSLT( VEDL) SUNPHARMA TATA MOTORSDVR TCS TATAMOTORS TATAPOWER TATASTEEL UNIONBANK YES BANK LIMITED ZEEL

EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ

205 915 484 2694 164 621 126 323 20356 359 573 295 265 3145 429 841 843 1285 1189 3211 178 833 262 231 1108 1013 79 731 1370 1200 53393 5238 210 163 37 453 1066 507 44 268 241 662 305 2313 480 80 427 144 1209 451

248 1113 520 2811 162 641 137 387 23655 378 559 245 2703 366 1257 858 1628 1662 3712 193 1097 294 324 1486 937 86 964 1712 1362 68879 7246 158 159 23 650 1396 505 44 275 252 558 268 2370 436 82 548 147 1472 493 367

246 1098 514 2788 159 632 135 380 23185 374 551 244 2674 360 1242 848 1617 1653 3689 191 1080 290 317 1474 933 84 950 1686 1353 68365 7201 157 158 22 643 1386 498 43 272 250 548 264 2346 432 81 539 146 1449 490 363

245 1089 509 2776 156 622 134 376 22920 372 543 243 2637 358 1218 841 1609 1645 3663 190 1069 289 310 1465 928 82 939 1674 1349 67979 7170 156 157 21 639 1379 494 42 270 247 536 262 2316 429 80 531 144 1431 487 362

243 1074 503 2753 153 613 132 369 22450 368 535 242 2608 352 1203 831 1598 1636 3640 188 1052 285 303 1453 924 80 925 1648 1340 67465 7125 155 156 20 632 1369 487 42 267 245 526 258 2292 425 79 522 143 1408 484 358

TOP 15 ACHIEVERS SR.NO

SCRIPT NAME

//

PREV CLOSE

CMP

% CHANGE

TOP 15 LOOSERS SR.NO

SCRIPT NAME

PREV CLOSE

CMP

% CHANGE

1

TATA STEEL

507

545

+ 7.59 %

1

SBIN

288

273

- 5.30 %

2

VEDANTA

236

249

+ 5.15 %

2

ASIAN PAINTS LTD

1153

1102

- 4.39 %

3

ITC LIMITED

311

323

+ 4.07 %

3

ACC LIMITED

1636

1568

- 4.19 %

4

BHARTI AIRTEL

366

379

+ 3.69 %

4

RELIANCE

1435

1380

- 3.89 %

5

CIPLA LIMITED

541

555

+ 2.67 %

5

ZEEL

509

491

- 3.61 %

6

AXIS BANK LIMITED

504

517

+ 2.52 %

6

KOTAK BANK

985

955

- 2.99 %

7

SUN PHARMA

543

555

+ 2.19 %

7

TATA MOT LTD

443

432

- 2.39 %

8

GAIL LIMITED

354

361

+ 2.06 %

8

1102

1076

- 2.35 %

9

YES BANK LIMITED

1435

1463

+ 1.96 %

9

INDIABULLS HOUSING HDFC

1651

1614

- 2.20 %

10

AURO PHARMA

672

684

+ 1.84 %

10

L&T

1722

1687

- 2.04 %

11

DR. REDDY’S LAB’S

2643

2690

+ 1.76 %

11

M&M

1376

1348

- 2.01 %

12

BHARAT PETRO

630

639

+ 1.37 %

12

BOSCH LIMITED

23795

23327

- 1.97 %

13

AMBUJA CEMENT

243

246

+ 1.34 %

13

HINDUNILVR

1097

1079

- 1.67 %

14

HINDALCO

188

190

+ 1.19 %

14

HDFC BANK

1678

1652

- 1.58 %

15

HERO MOTOCORP

3660

3701

+ 1.13 %

15

TATA POWER

81

80

- 1.17 %

4 3 2 2 2 1 1

OPEN INTEREST INDEX F&O AND CASH SEGMENT ACTIVITY

NSE - WEEKLY NEWS LETTERS � TOP NEWS OF THE WEEK India Inc's foreign borrowings at $ 1 billion in May - Indian industry borrowed USD 1.05 billion from foreign markets last month, including through rupee denominated bonds . In contrast, the borrowings were USD 1.32 billion in May last year. However, the two sets of data are not comparable as the RDB route was not there until September. As per RBI data, of the total in May this year, external commercial borrowings and RDBs contributed almost equally at USD 523.95 million and USD 525.76 million respectively. But June onwards, it may be difficult for companies to float rupee bonds overseas as they will be subject to scrutiny from Reserve Bank's Foreign Exchange Department before every such issue. The RDB route has become a popular source of fund raising. Six entities issued rupee bonds -- popularly referred to as masala bonds -- including the National Highways Authority of India's USD 465.66 million (Rs 3,000 crore) for road construction.

Record low credit growth: 1,000 companies borrowed Rs 1 trillion less in FY17 - The record low bank credit growth of 5.1 per cent in FY17 was led by the top 1,000 listed corporates which saw their net loan outstanding decline by a whopping Rs. 1 trillion in the reporting year, said a report. One-third of this massive contraction was led by just 10 companies, which cumulatively availed of Rs. 33,571 crore less in the year over the previous year, according to the report by SBI Research. this could either be perceived as lower debt utilisation levels or prepayment through internal accruals or through asset sale. Other reasons could be QIP or private equity participation.

The RBI data showed that bank credit inched up by a tad 5.1 per cent in the year to March 2017, which was the lowest since 1951 when it had grown by a paltry 1.8 per cent which could be attributed rise in bond issuance and cheaper non-bank fund sources coupled with overall credit aversion in the economy as well as non-investment by the private sector in capacity expansion.

However, taken as a whole, as per cent annual results of about 3,000 listed entities for FY17, there was an 8 per cent increase on a CAGR basis in loan funds outstanding over FY15. The outstanding loan funds as of FY15 stood at Rs 22.8 trillion, which increased to Rs 26.5 trillion in FY17. This was Rs 24.2 trillion in FY16.

Unincorporated units contribute Rs. 11.5 lakh crore to economy - As many as 6.34 crore unincorporated non-agriculture enterprises excluding construction sector, have contributed Rs 11.52 lakh crore to the economy and provided employment to 11.13 crore in 2015-16. During 2015-16, the aggregate gross value added by the unincorporated non-agricultural enterprises engaged in market production was estimated as Rs. 11,52,338 crore," stated a report by National Sample Survey Organisation. According to the report, at all India level, units that employ at least

one hired worker on a fairly regular basis contributed about 56 per cent to the aggregate annual GVA. However, in rural areas, own account enterprises had a higher share (61 per cent) in aggregate GVA. The survey revealed that about 11.13 crore workers were engaged in unincorporated non-agricultural enterprises (excluding construction) during 2015-16. Out of the total number of workers, 34.8 per cent were engaged in trading, 32.8 per cent in other services and 32.4 per cent in manufacturing. While 55 per cent worked in urban areas, 45 per cent worked in rural areas. The top five states in terms of estimated number of workers are Uttar Pradesh (14.9 per cent), West Bengal (12.2 per cent), Tamil Nadu (8.7 per cent), Maharashtra (8.2 per cent) and Karnataka (6.4 per cent).

Consumption to propel India's GDP growth: Nomura - India's GDP growth witnessed a trough in January-March quarter, but going forward the economy is expected to see gradual improvement in growth numbers primarily driven by consumption, says a Nomura report.

According to the Japanese financial services major, consumption has recovered from the demonetisation "shock" and while external demand has moderated slightly, it remains supportive of growth. Moreover, there are signs of a pick-up in central government investment. "We believe, GDP growth reached a nadir in March quarter (at 6.1 per cent) and will gradually improve to a still-modest 6.6 per cent in the second quarter," Nomura said in a research note adding that growth is expected to be mainly consumption- led. The report said some GST-related disruptions could spill into early part of the third quarter. But good monsoons, strong rural wage growth, pay hikes for state government employees, lower lending rates and a modest pick-up in external demand may push GDP growth to 7.1 per cent in September quarter and further to 7.7 per cent in the next quarter. India lost the tag of the fastest growing economy to China in the March quarter with a GDP growth of 6.1 per cent, which pulled down the 2016-17 expansion to 7.1 per cent.

Plenty of hiccups' expected as India rolls out new tax reform - As India prepares to launch its biggest tax reform since independence in 1947, businesses and citizens across the country are bracing for economic chaos. At midnight on July 1, Prime Minister Narendra Modi will formally usher in the country’s new goods and services tax. First proposed in 2006, the GST will subsume more than a dozen state and central levies into one tax, unifying this country of 29 diverse states and 1.28 billion people into a single market for the first time. "We are not ready," said K.E. Raghunathan, a Chennai-based business owner and president of the All India Manufacturers Association. "We do expect tremendous chaos." With the deadline looming, protests and industrial strikes broke out across the country over tax rates and compliance burdens. In the states of Tamil Nadu, Gujarat and Rajasthan, tens of thousands of textile workers went on strike, while the association that represents sellers of seeds, pesticides and fertilizers protest protested in the

agricultural state of Punjab. The move should eventually expand India’s narrow tax base and increase government revenues. It has been heralded by economists and will count as the most important structural economic reform of Modi’s three-year-old administration.

Loan demand to pick up to 15% in 2017-18: BofAML - Loan growth in the country is expected to pick up to 15 per cent in 2017-18, from 9.1 per cent in the previous fiscal, as demonetisation shock fades, says a report. According to a Bank of America Merrill Lynch report, loan growth in the country is now at a historic low and is expected to bottom out. "Our BofAML liquidity model forecasts that loan growth will pick up to 15 per cent from 9.1 per cent in 2016-17 as the demonetisation shock works itself out," BofAML said in a note. The report further said RBI open market operation (OMO) is also expected to push up loan supply and pull down bank lending rates, which in turn will spur loan demand. BofAML sought to illustrate the point. It said, "Re 1 of RBI OMO generates Rs 4 of loan supply. Besides, demonetisation has added temporary liquidity of around Rs 4,000 billion to banks, which would also boost loan growth." OMOs are market operations conducted by RBI by way of sale or purchase of government securities to or from the market with an objective to adjust the rupee liquidity conditions on a durable basis. If there is excess liquidity, RBI resorts to sale of securities and sucks out the surplus. Similarly, when the conditions are tight, RBI buys securities from the market, thereby releasing liquidity into the market.

✍ TOP ECONOMY NEWS

The finance ministry has made a case for pushing back the Reserve Bank's deadline for implementing Basel III banking norms in view of higher capital requirement to deal with bad loans which have reached unacceptable levels. In a recent meeting with RBI, senior officials from the ministry pitched for deferring the implementation beyond March 2019, saying it will help banks meet the capital needs and increase credit flow to productive sectors along with balance sheet clean-up.

Former RBI Governor Bimal Jalan today said that 'inflation targeting' cannot work in India as prices depend on a range of factors like monsoon and oil prices over which neither the RBI nor the government has any control. Inflation targeting is fine for countries like the US and the UK. But we are dependent on rain, import of oil from Gulf countries. In India, there is no point in setting inflation target," Jalan said at a function to release a book written by former RBI Governor Y V Reddy.

Government think-tank NITI Aayog has made a case for a single regulator to govern India’s energy market to make the country ‘energy ready’ by the year 2040. “Coal and upstream petroleum sectors have lacked independent, statutory regulators,” said the draft National Energy Policy, on which the central think-tank has sought public feedback till July 14. “This is also expected to mainstream emerging energy tech and provide energy choices,” NITI Aayog said.

One of the leading credit rating agencies, Fitch Ratings has warned that there is a risk that farm loan waiver schemes, which are being discussed and implemented across a number of Indian states will result in further fiscal slippage at the state level or will curtail the funds available for public investment. The farm loan waiver schemes could have a significant impact on the finances of the state government, and might undermine efforts to bring down general government debt, it added.

At the midnight of June 30, India will make a tryst with history by heralding the much-awaited GST regime and turning a new leaf in the annals of the country’s taxation system. The gamechanging ‘one nation, one market, one tax’ arrangement is the biggest taxation reform since Independence. It is expected to benefit both the traders and consumers, while providing buoyancy to government revenues due to increased tax compliance. It is estimated that with its implementation, GDP will increase by 1.5-2 per cent.

Former RBI Governor Bimal Jalan today said that 'inflation targeting' cannot work in India as prices depend on a range of factors like monsoon and oil prices over which neither the RBI nor the government has any control. Inflation targeting is fine for countries like the US and the UK. But we are dependent on rain, import of oil from Gulf countries. In India, there is no point in setting inflation target," Jalan said at a function to release a book written by former RBI Governor Y V Reddy.

The Reserve Bank today said district central cooperative banks can deposit banned bank-notes exchanged or collected only between November 10-14 last year under a special window until July 19. Specified banned notes of Rs 500 and Rs 1,000 held as on November 8, 2016, at the close of banking hours will not be eligible, the RBI said in a notification this evening. The ones accepted

by DCCBs after November 14 are also not eligible for exchange, the central bank said.

The Reserve Bank of India has finalised norms for peer-to-peer lending platforms and is expected to release final guidelines in 2-3 weeks, a top finance ministry official said. According to the official, the finance ministry has given its comments to the central bank and the latter is giving final touches to the rules.

The government will clear all FDI proposals requiring approval within a maximum of 10 weeks after the receipt of an application as per the standard operation procedure which replaces FIPB. The move is aimed at improving investment climate of the country. The new mechanism will replace the Foreign Investment Promotion Board, abolished by the government. ✍ TOP CORPORATE NEWS Indiabulls Real Estate on Tuesday announced that it has acquired the entire minority stake of 10.08% in Indiabulls Infra estate Limited a majority-owned subsidiary of the company. The company has acquired IIL from IL&FS Fund entities namely IIRF India Realty XXI Limited, Little Fairy Limited and Vistra ITCL Limited, its minority investors. The aggregate cash consideration paid for the acquisition is Rs 358.44 crore, which includes interest of Rs 94.85 crore as against their aggregate total investment of Rs 250 crore.

The leading public sector lender, Dena Bank plans to raise up to Rs. 1,800 crore through a qualified institutional placement. The bank’s annual general meeting took place on June 27, 2017.

The shareholders voted on the proposal of creating, offering, issuing and allotting equity shares up to Rs. 1,800 crore in a QIP. Indian branded fabric and fashion retailer, Raymond Limited in a phased manner is going to invest Rs. 1,400 crore in its new plant at Amravati in Maharashtra which will go live by the yearend. In the first phase, the new unit that will produce linen and denim, cotton shirts among other, the company has made an initial investment of Rs. 200 crore. The facility will employ about 8,000 workers when fully operational.

Piramal Enterprise Limited board of directors has approved a proposal through the issuance of non-convertible debentures to raise up to Rs. 500 crore private placement basis. Piramal Enterprises said in a BSE filing on Tuesday said that the NCD are proposed to be listed on the wholesale debt market segment of the NSE. Mukesh Ambani led Reliance Industries is planning to raise Rs. 25,000 crore as the company seeks to fund an aggressive expansion plan in the telecom sector and to also replace existing highcost borrowings. The funds would be raised through privately placed debentures HDFC Limited, a major provider of finance for housing in India, will seek shareholder’s approval to raise RS. 85,000 crore through various debt instruments. The mortgage lender will seek its shareholder’s nod at the Annual General Meeting which is scheduled on July 26, 2017.

Zydus Cadila has received final approval from the USFDA to market Entecavir tablets in the strengths of 0.5 mg and 1mg. The drug is used to treatment of Hepatitis B virus infection and will be produced at the group’s formulation manufacturing facility at the Pharma SEZ in Ahmedabad.

The construction arm of L&T Limited has won orders worth Rs. 2,552 crore across various business segments. The Transportation Infrastructure & Water Effluent Treatment businesses have jointly bagged an EPC order worth Rs 1,223 crore from Aurangabad Industrial Township Limited.

UltraTech Cement on Thursday completed the acquisition of Jaiprakash Associates’ six integrated cement plants and five grinding units, the company informed the bourses. The plant and units are spread across the state of Himachal Pradesh, Uttar Pradesh, Uttrakhand, Madhya Pradesh and Andhra Pradesh with a capacity of 21.2 million tonne. Consequent to this acquisition, the acquired cement plants of JAL and JCCL stand transferred to UltraTech. With a value of Rs 16,189 crore (USD 2.5 bn), the deal was the largest transaction of its kind and involves a major financial restructuring program of JAL, overseen by the ICICI-led consortium of lenders.

Piramal Enterprises Limited through its subsidiary Piramal Finance Ltd has committed Rs 485 crore to third party logistics

solutions provider, Apollo LogiSolutions, reported a leading

business daily on Thursday. Piramal Finance will be a long-term investor in the company as it eyes to boost its operations over the coming years. Apollo LogiSolutions will utilise the funds for organic growth of existing business, setting up of new business ventures as well as restructuring ownership in many of its joint ventures.

Rajesh Exports Limited has procured an order of Rs. 774 crore. The order has been procured beating global competition from a well-established and prestigious global white label importer from UAE. The order is to be completed by October 2017. Company will be executing the order from its Bangalore facility. This facility has a processing capacity of 250 tons of jewellery and gold products per annum. With this current order which is to be executed by October 2017, order book at the consolidated level stands at Rs. 38,419 crore.

MEP Infrastructure developers Limited on Thursday announced that it has received an order worth Rs 325.08 crore from the Maharashtra State Road Development Corporation Limited (MSRC). The order includes operation maintenance of Rajiv Gandhi Sea Link and collection of Toll Plaza on a whole basis. The period of the contract is for 156 weeks from the date of the Letter of Acceptance i.e. June 28, 2017.

Mindtree Limited has come up with a share buyback plan of equity shares worth Rs. 270 crore.

It will become the seventh IT company in India to announce share buyback plan. The company’s board has approved buyback of up to 2.5% of total fully paid-up equity shares in the market up to Rs 43.2 lakh shares at Rs 625 per share, as reported by the company in a BSE filing. The buyback would be carried out via the tender offer route under the board approval route. Promoters of the company will have an option to participate in the buyback plan.

Motherson Sumi Systems Limited shares witnessed a jump by 1% during Wednesday’s trading session as the shareholders approved the issuance of bonus shares to existing shareholders. The register of members and share transfer books will remain closed on July 7 as the company has fixed July 7 as record date for purpose of the bonus issue. On May 19, the board of directors had recommended the issue of bonus shares in the ratio of one bonus shares against the two existing shares Steel Strips Wheels Limited has bagged exports order for supply of steel wheels for EU caravan and Canadian winter market. This order covers supplies of approx 15,500 number of wheels with total order value above USD 150,000 and would be dispatched by end of July 2017 from SSWL’s Chennai plant. Meanwhile, the stock traded in a positive territory surging 1.85% at Rs 888.10 per share during Wednesday’s intraday trade.

Zydus Cadila has received the final approval from the USFDA to market Phentermine Hydrochloride orally disinterating tablets in strengths of 15mg, 30 mg and 37.5 mg. The drug is used together with diet and exercise to treat obesity in people with risk factors such as high blood pressure, high cholesterol or diabetes and will be produced at the group’s formulations manufacturing facility at Moraiya in Ahmedabad. ✍ TOP BANKING AND FINANCIAL NEWS OF THE WEEK The country’s largest bank, the State Bank of India, has written a letter to the finance ministry raising concerns over the stringent provisioning norms for companies under the Bankruptcy Code, which will eat into its profit margins. The lender is reluctant to meet these norms and has sought the ministry’s intervention on the matter.

A senior executive with the lender confirmed the development and said that the government is expected to hold discussions with the Reserve Bank of India, state-run lenders and the Bankruptcy Board. An email sent to both SBI and RBI did not elicit any response till the time of going to press.

With rising concerns on additional provisionings to be made on accounts headed for insolvency, Axis Bank said it has exposure to eight of the 12 companies named by the regulator and has

already set aside adequate money for the same. The third largest private sector lender said the overall fund-based exposure to these eight accounts is Rs. 5,071 crore and the non-fund based one is only Rs 212 crore. Around 80 per cent of this outstanding loan is secured, it said in an exchange filing made before the start of the trading today.

Reserve Bank will remain open on July 1 for services such as transfer of funds through NEFT and RTGS from 11 AM onwards. RBI follows a July to June accounting year and June 30 being the closing date of the year, the office generally remains closed on July 1 every year. The apex bank said July 1 being a working Saturday, it has decided to remain open on that day.

ICICI Bank Limited said that a lenders consortium led by it has concluded the biggest asset resolution in the country with the consummation of the Rs. 16,189 crore takeover of Jaypee Cements by Ultratech. This is the largest asset resolution in the country so far and I hope that this landmark transaction will pave the way for more such resolutions," Chanda Kochhar, ICICI Bank managing director and chief executive, said in a statement.

The nation's largest lender State Bank India ruled out the additional provisioning towards the 12 largest NPA accounts which have been referred to insolvency proceedings denting the bottom lines very hard as most of the provisioning has already been done. The increased provisioning requirements, more or less, in all of these accounts we have pretty large provisions. But yes, we have to make a little more but it should not very badly impact our earnings going forward," chairman Arundhati Bhattacharya told reporters after the AGM. The strong steps taken by Reserve Bank to resolve NPAs are likely to raise provisioning by a whopping 25 per cent this year as lenders will take up to 60 percent hair cut while resolving these accounts. Based on our assessment of the embedded value in the top 50 NPA cases, we estimate a 60 per cent haircut would be needed on these loan assets. That would mean banks will have to increase provisioning by another 25 per cent this fiscal, compared with nine per cent in the last fiscal," Crisil senior director Krishnan Sitaraman said.

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Analyst compensation: Analysts are salary based permanent employees of High Brow Market Research Pvt. Ltd.

Disclosure in terms of Public Appearance: (a) High Brow Market Research Pvt. Ltd. or its associates have not received any compensation from the subject company in the past twelve months; (b) The subject company is not now or never a client during twelve months preceding the date of distribution of the research report. (c) High Brow Market Research Pvt. Ltd. or its associates has never served as an officer, director or employee of the subject company; (d) High Brow Market Research Pvt. Ltd. has never been engaged in market making activity for the subject company.