TECHNICAL TREND ( NIFTY - BANK NIFTY FUTURES ) NIFTY FIFTY : - The Equity benchmark Nifty 50 opened in a positive note on Monday up by 38 points or 0.43 per cent at 8735. The benchmark Index Nifty did not show any clear movement last week after testing 8800 levels, it corrected by 100 points on low volumes to close at 8715. This week being a truncated week with two successive holidays we have seen seen some negative movement. Nifty Closed Almost Flat in A Holiday Thinned Trade Amid Lackluster Global Cues And Caution Before Q2 Earnings & IIP/Inflation Data. The Market saw a significant decline in a Thursday trading session after the US Federal Reserve minutes boosted the case for higher interest rates. Nifty dropped to a day low of 8541 approximately so far from a previous closing of 8708. Nifty may consolidate between 8840-8540 range and any breakout or breakdown with volumes may result in a 300-450 point movement on either side. The Significance Resistance for Nifty is 8630-8740 and Support is 8520-8416. BANK NIFTY : - The Bank Nifty opened in a Positive Note on Monday up by 89 points or 0.45 per cent at 19489. On Monday Banking shares saw small profit booking after a rate cut and some under performance was witnessed despite holding on to the support of 19500. The Bank Nifty was showing Considerable weakness and had closed at 19379 on Monday, which is 300 points near range low of 19079. Banks may report some improvements in fresh NPA/NPL creation on a sequential basis rather than mere recognition, effective resolution may be more important as of now and transfer of Net Performing Assets to some other Assets Reconstruction Company may ease the burden on the banks temporarily, but it will not solve the basic problem of low capacity utilization & tepid demand. Bank Nifty immediate support is around 19106-19026* area and below that expect 18761-18519* area.On the upside, for any strength, Bank Nifty need to sustain above 19600-19700* zone for further rally up to 19900-20000 area. The Crucial Levels for Nifty is 19112-19348 Upside and 18880-18640 is down side.
Monday, 17 October 2016
TECHNICAL VIEW (NIFTY- BANK NIFTY FUTURES ) NIFTY DAILY
R2
R1
PP
S1
S2
8632
8578
8524
8416
R1
PP
S1
S2
8826
8623
8420
8014
R1
PP
S1
S2
8908
8644
8380
7852
R1
PP
S1
S2
19112
18994
18876
R1
PP
S1
S2
19771
19111
18451
17131
R2
R1
PP
S1
S2
22172
20206
19223
18240
16274
8740 WEEKLY
R2 9232
MONTHLY
R2 9436
BANK NIFTY DAILY
R2 19348
WEEKLY
R2 21091
MONTHLY
MOVING AVERAGE
21 DAYS
NIFTY
8714
BANK NIFTY
19626
PARABOLIC SAR
DAILY
50 DAYS
18640
100 DAYS
200 DAYS
8706
8485
8031
19436
18680
17193
WEEKLY
MONTHLY
NIFTY
8960
433
6907
BANK NIFTY
20613
15419
13769
PATTERN FORMATION ( NIFTY )
Detail of Chart - On the above given daily Chart of NIFTY has Applied Bollinger Band along with Parabolic SAR both the indicators are Leading, and gives signal of Buying or Selling. Although the Uses of Bollinger Band differ from traders to traders Some buywhen it break the Middle Band from below side and some buy when it break Upper Band. We assume that the Breaking the Middle Band Usually a Bull side Signal as we can see that. Although On the Above given Chart of Nifty both the Indicators are indicating Bull Movement for next week. Now the market has Shifted in a Cautious mode. However the Nifty Trend Now Seems clear toward the Next level of 8780-8800 both the Indicators are Indicating break above 860 would be the Important level for the Nifty.
PATTERN FORMATION ( BANK NIFTY )
Detail of Chart - On the Above given Chart of Bank Nifty daily Chart has Applied the Bollinger Band along With Parabolic SAR , Both are the Indicators are Showing the rally may Continue toward the 19900-20200 level for Bank Nifty in Near-Term. The Bank Nifty has 20570 around in last trading Week if it is able to Sustain the Level of 19750 will move toward the 20200 in two-three trading Sessions. The Important levels for Bank Nifty is 19560-19380 is Down side While 19980-20200 is Up side.
NSE EQUITY DAILY LEVELS COMPANY NAME
R2
R1
PP
S1
S2
ACC
EQ
1660
1649
1639
1628
1618
ALBK AMBUJACEM ASIAN PAINT AXISBANK BAJAJ-AUTO BANKBARODA BANKINDIA BHEL BHARTIARTL CIPLA COALINDIA DLF DRREDDY GAIL GRASIM HCLTECH HDFC HDFCBANK HEROMOTOCO HINDALCO HINDUNILVR ICICIBANK ITC INDUSIND BANK INFY JINDALSTEL KOTAKBANK LT M&M MRF MARUTI ONGC ORIENTBANK RCOM RELCAPITAL RELIANCE RELINFRA RPOWER SBIN SSLT( VEDL) SUNPHARMA TATAMOTORS TATAPOWER TATASTEEL UNIONBANK
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
76 256 1228 529 2870 157 113 133 310 594 320 154 3079 444 1010 834 1353 1275 3532 157 863 245 241 1239 1120 79 791 1502 1387 54018 5805 283 126 49 565 1095 578 48 255 200 753 559 79 415 143
75 254 1218 524 2838 155 112 133 307 590 317 152 3055 437 1002 823 1335 1268 3504 156 854 244 241 1228 1073 78 786 1488 1373 53138 5748 280 125 48 560 1086 575 47 254 197 748 556 79 413 142
74 253 1211 520 2817 154 111 132 305 587 315 149 3038 425 993 811 1323 1261 3489 154 845 241 239 1217 1034 77 778 1463 1363 52669 5708 275 123 47 554 1074 569 47 251 195 743 553 78 410 142
73 251 1201 515 2785 152 110 132 302 583 312 147 3014 418 985 800 1305 1254 3461 153 836 240 239 1206 987 76 773 1449 1349 51789 5651 272 122 46 549 1065 566 46 250 192 738 550 77 408 141
72 250 1194 511 2764 151 109 131 300 580 310 144 2997 406 976 788 1293 1247 3446 151 827 237 237 1195 948 75 765 1424 1339 51320 5611 267 120 45 543 1053 560 46 247 190 733 547 77 405 141
TOP 15 ACHIEVERS SR.NO
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
PREV CLOSE
SCRIPT NAME
CMP
RAMCO INDUS
179
217
ABAN OFFSHORE
223
261
NIIT TECHNO
408
440
PETRONET LNG
373
400
RAMCO CEMENT
618
660
MINDA INDUS
324
345
TRIDENT LTD.
54
57
JINDAL STEEL
74
79
L&T FINANCE
93
99
GODFREYPHILIPS
1339
1406
D B CORP
381
398
CYIENT LTD.
482
502
BEML LIMITED
908
945
GAIL LIMITED
414
430
ONGC
267
277
// % CHANGE
+ 21.03 % +16.86 % +7.85 % +7.38 % +6.75 % +6.42 % +6.20 % +6.04 % +5.69 % +5.06 % +4.54 % +4.11 % +4.10 % +3.95 % +3.63 %
SR.NO
TOP 15 LOOSERS SCRIPT NAME
PREV CLOSE
CMP
% CHANGE
1
ZEE LIMITED
572
528
-7.64 %
2
IDEA CELLULAR
80
74
-6.63 %
3
HDFC
1403
1316
-6.24 %
4
BANK BARODA
163
153
-6.04 %
5
ADANI PORTS
266
254
-4.68 %
6
BHARTI AIRTEL
319
305
-4.40 %
7
HUL
877
842
-3.99 %
8
AURO PHARMA
855
823
-3.77 %
9
ICICI BANK
250
241
-3.53 %
10
BAJAJ AUTO LTD. 2883
2793
-2.95 %
11
GRASIM INDUS
1024
995
-2.91 %
12
TATA POWER
80
78
-2.85 %
13
RELIANCE INDUS 1109
1077
-2.83 %
14
SBIN
258
252
-2.55 %
15
AXIS BANK LTD.
533
520
-2.47 %
NEXT WEEK STARS( AS PER TECHNICAL ANALYSIS ) NSE FUTURE NSE FUTURE : SELL TATASTEEL FUTURE BELOW 409 TGT 392 SL411 NSE FUTURE : BUY ULTRACEMCO FUTURE ABOVE 4040 TGT 4100 SL 4020 NSE FUTURE : SELL APOLLOTYRE TYRE BELOW FUTURE BELOW 215 TGT 209 SL 216.50 NSE CASH NSE CASH : BUY CROMPTON NSE CASH ABOVE 182 TGT 194 SL 178. NSE CASH : BUY UJJIVAN NSE CASH ABOVE 460 TGT 490 SL 448. NSE CASH : BUY KAJARIACER NSE CASH ABOVE 720 TGT 775 SL 702.
NSE - WEEKLY NEWS LETTERS � TOP NEWS OF THE WEEK Indian growth makes it natural recipient of higher FDI: Arun Jaitley - India, since it is growing much faster as compared to the rest of the world, has become natural recipient of a higher level of foreign direct investment , Finance Minister Arun Jaitley has said. "India has become far more aspirational than ever before. So compared to the rest of the world, we are doing much better," Jaitley, who is here attending the annual fall meeting of the International Monetary Fund and the World Bank, told reporters on Sunday. "Since India is growing much faster, as compared to the rest of the world, it has become the natural recipient of a higher level of FDI," he said. "For the rest of the world, whereas we aspire to do better in this adverse environment, they consider it extremely impressive. So there is a lot of global buzz around India," he added. The Finance Minister, however "put a caveat", saying by India's own yardstick, its current growth rate is not enough. "We can do still better, which in a sense, is not a bad thing to happen. To be restless, to be impatient is a sign of wanting to do better," he said. "I think with the kind of investments, both domestic and international, that we are getting, a reasonable amount of growth will always be there. If growth returns to the world, then you would probably move up. Structural reforms like Goods and Services Tax can only add to that," he added. Credit quality improvement still not on horizon: ICRA - Credit quality of corporates continued to remain weak in the first half of the current financial year with the domestic rating agency ICRA upgrading just 287 firms against downgrades of 314 companies out of the around 7,000 entities with loans. This makes the ratio of upgrades to downgrades, or the credit ratio, at a weak 0.9, a against 1.94 a year ago, or 460 upgrades against 237 downgrades, suggesting improvement in credit quality is still some time away. Over the past few quarters, the number of downgrades shot up following a rise in stress in sectors like metals, engineering, gems and jewellery and textiles, ICRA said in a note today, adding the volume of rating upgrades has been declining. ICRA's head of credit policy Jitin Makkar said, " the reduction in instances of upgrades, a trend that started in the second half of FY15, continued in the first half of FY 17 as power, real estate and construction, metals and engineering sectors stressed. He noted strengthening in credit quality of sectors like pharma and IT is not imminent in backdrop of increasing regulatory intervention and slowing client spending overseas. further upside risks to downgrades are limited the agency said. Government wants PSBs’ midsize corporate borrowers shifted to bond market - The government wants state-run banks to nudge their midsized corporate borrowers to seek
credit through alternative sources, help develop bond market and create space for banks to lend to small and medium enterprises. Simultaneously, the government is working with IIFCL and Life Insurance Corporation to make credit enhancement facilities available to such borrowers, which will allow them to easily access the bond market. “This will also help banks diversify their risk. We expect some of the larger banks will take lead in educating borrowers and also provide support, wherever necessary,” said a senior government official, who did not wish to be identified. Banks will also be asked to explore takeout financing schemes for exposure to infrastructure sector, the official said. Some of these issues were discussed in the performance review of state-run banks held last month. Reserve Bank of India deputy governor R Gandhi had, last month, expressed concern that the corporate bond market is accessible largely to top-rated borrowers. “Efforts in this respect should be focused on facilitating access of low credit borrowers to this market,” Gandhi had said. As per RBI data, more than 85% of corporate bond issuance in India is by borrowers with rating of ‘A’ and above. “We want banks to free up their capital and drive investment. If the borrowers are regulated through markets it will also instil more discipline in them,” said the government official cited earlier. Discussions are on with all regulators to further develop the bond market, the official said. No Fiscal worries, Government spending won’t falter: Arun Jaitley - The finance ministry wants ministries to maintain spending in line with budget allocations, dismissing fiscal concerns that have arisen halfway through the year after the recent spectrum auction fell short of target and the August deficit number was the highest in seven years. Any shortfalls will be made up by collections under the just-concluded black money disclosure scheme besides which stakes held in companies through the Specified Undertaking of the Unit Trust of India will provide an added cushion without the government having to scale back spending to meet the fiscal deficit target of 3.5 per cent of GDP for the fiscal year, a senior finance ministry official said. “We want ministries to spend what has been allocated to them,” the official said. “We are on track on the fisc.” At the end of August, the fiscal deficit was at 76.4 per cent of what’s been budgeted for the year, the highest since FY 09 for the month, sparking concerns that Finance Minister Arun Jaitley may struggle to meet the target. The government will get Rs 32,000 crore from spectrum auction this year against an anticipated Rs 64,000 crore while the seventh pay commission award is expected to cost more than what has been set aside. GST lends more weight to India's 8% growth projection: S&P - : Calling Goods and Services Tax as the most important structural reform till date by the Modi government, S&P Global Ratings today said the passage of the indirect tax law gives it additional conviction of India clocking 8 per cent growth in the next few years. "India's GST
passage gives us additional conviction around our 8%-ish GDP growth forecast over the next few years," it said in a report titled 'Asia-Pacific steadies while China goes silent'. The rating agency had last month projected India to clock a "steroid-free" growth of 8 per cent in coming years. "The GST passage is arguably the most important structural reform to date by the Modi government and will improve efficiency, cross-state trade and tax buoyancy," it said today. It saw a reasonably firm pick-up in Asia-Pacific's macro momentum indicators, with pick-up in retail sales offering the clearest sign in most of the region's economies.with pick-up in retail sales offering the clearest sign in most of the region's economies. This, it said, stems from rising income, which in turn is part of the region's evolving growth dynamics, with consumption playing a larger role. Growth remains subdued and outlook is clouded from economic and political sources: Arun Jaitley - The recovery from the global financial crisis has not been as healthy as we would have liked. Growth remains subdued and the outlook is clouded by uncertainties emanating from both economic and political sources. Against this backdrop, we also broadly agree with the way forward proposed in the Managing Director’s Global Policy Agenda. We particularly welcome the focus on measures to make growth more broad based. We support the proposals for identifying policy space. We believe that the IMF represents an unparalleled pool of economic knowledge and experience and has a very important role to play in advising its membership on the way forward. This is particularly true of those members whose capacities of economic policy formulation and implementation are less developed. However, the IMF also needs to continue working on removing perceptions of lack of evenhandedness. The Fund’s smaller members should be confident that they are considered as important as the larger ones, and Fund conditionality in programs is not unnecessarily burdensome for them. Chairman, monetary policies in advanced economies have stayed accommodative for an unprecedentedly longtime. In today’s interconnected world, these policies inevitably produce spillovers to EMDEs. We have consistently maintained that monetary policies in advanced economies should be mindful of the risks caused to EMDEs. We would expect that while the IMF analyzes the implications of low and negative interest rates, it should also analyze the implications of these rates for EMDEs. We look forward to the IMF’s work to better understand the drivers of the slowdown in productivity growth. We understand the Fund’s advice to commodity exporters for adjustment and diversification. However, for a country to diversify its economy over the course of a few years is not an easy task, particularly at a time when global demand is subdued. Therefore, we would like the Fund to be more concrete in its advice for diversification, with a set of focused recommendations for action, which are consistent with a country’s resources and
capabilities. Chairman, with inward looking policies finding support of a significant part of the population in some countries, the Fund’s call for and focus on international cooperation are timely. As the Global Policy Agenda mentions, such cooperation should cover diverse areas like trade integration, financial regulatory reform and managing spillovers. Recently, the Fund’s work plan has expanded to cover areas where the Fund does not have as much expertise as it has in macroeconomic policies. These include policies to deal with the impact of climate change, foster financial inclusion, tackle growing inequality and so on. The Fund would do well to collaborate with the relevant international organizations as it takes on these work-streams, while also making efforts to enhance its in-house capabilities through training and recruitment Finally, Chairman, let me say that we are somewhat disappointed that the deadline for completing the 15th Review will be pushed back to the 2019 Spring Meetings. Given that there is broad agreement on maintaining the current overall lending capacity of the Fund and that the Fund’s resource pool is excessively tilted toward borrowed resources, there is a dire need for increasing quotas. Recent work by the Fund also points to the need for realigning quota shares to reflect the changed economic realities. All this can be achieved as part of the 15th Review. Delays in General Reviews of Quotas erode the Fund’s legitimacy and credibility, and are against the provisions of the Articles of Agreement. I do hope that the deadlines that will now be set for completing the 15th Review, including agreement on a new quota formula as the basis for realignment of quota shares, will be honored and adhered to in letter and spirit. It is also important that the new quota formula should give more weight to PPP GDP to better reflect the true economic strength of EMDEs.” Industrial output contracts 0.7 year-on-year in August - India’s industrial prodution fell 0.7% in August, slighlty slower than 2.5% decline in July. Data released by the statistics office showed a 0.3% fall in manufacturing production in August and a sharp 5.6% decline in mining output compared with a 0.8% growth in July. Manufacturing as a sector has the highest weight in the Index of Industrial Production. The pace of electricity generation marginally improved 0.1% compared with moderation in the previous month. July IIP reading was revised to a 2.5% contraction, compared with the 2.4% decline reported earlier. Capital goods output nosedived 22.2% July. It has been falling for the last few months. The decreased pace of slowing industrial activity was evident in seven out of the 22 industry groups in the manufacturing sector in August- a marked improvement from July. Consumer goods production rose 1.1% in August with the output of consumer non-durables — an indicator of rural demand – rising a mere 0.1% and that of consumer durables a gauge of urban demand, rising 2.3%.
� TOP ECONOMY NEWS The government will have to raise Rs. 320 billion more to meet the fiscal deficit target of 3.5% of gross domestic product for 2016-17, as it will get just half of the Rs. 640 billion it had budgeted for 2016-17 from spectrum sale. Moving fast on its ambitious waterways project, the government has said it will augment the process of development for 36 waterways in the first phase and soon float tenders to invite bids for the project. The mines auction, which kicked off earlier this year, is now pulling investors in hordes as 10 companies snapped up 16 mines, translating into a revenue of close to Rs. 595 billion for states. The Finance Ministry is likely to finalise contours of listing of public sector general insurance companies in a couple of months. Singapore is seeking more time to revise the two-decade-old tax treaty with India, saying its investors need more time to shift to source-based taxation. India's merger and acquisition activity has reached its highest on record, up 36.2% by value at USD 46 billion across 278 deals as compared to the whole of 2015, which saw USD 33.8 billion across 419 deals. The finance ministry said it will take away from the Reserve Bank of India the powers to manage public debt or government borrowings in about 2 years and has set up a cell for an interim period to smoothen the transition so that markets do not witness disruptions. UTI Mutual Fund has got the mandate to manage 25% of the incremental flows into Employees' Provident Fund Organisation that will be invested in the stock market through the exchange-traded fund route. Telecom spectrum auction ended with bids worth Rs. 657.89 billion over the last five days, a mere 40% of the total worth of spectrum that was placed on the block. Over 90% of foreign direct investment in the country is coming through automatic route and the commerce ministry is further relaxing the FDI regime.
Industrial production contracted for the second straight month by 0.7% in August. The pace of fall decelerated as the decline was an eight month low of 2.5% in July. Investments into domestic capital markets through participatory notes rose to the highest level in five months at Rs 2.16 trillion in August. Stressed loans in India's banking sector crossed USD 138 billion in June, an increase of nearly 15% in just six months that suggests a state clean-up effort will take longer and cost more than expected. India's gold imports declined by 58.96% to 270 t from January to September from 658 t that were shipped in during the corresponding period of last year. The year 2016 is set to be a record-breaking year for Indian IPO market as 50 firms have entered Dalal Street with initial share-sale offers to garner USD 2.93 billion and an impressive pipeline is already in place for the coming months. The government will have to raise Rs. 320 billion more to meet the fiscal deficit target of 3.5% of gross domestic product for 2016-17, as it will get just half of the Rs. 640 billion it had budgeted for 2016-17 from spectrum sale. The Finance Ministry is likely to finalise contours of listing of public sector general insurance companies in a couple of months. Moving fast on its ambitious waterways project, the government has said it will augment the process of development for 36 waterways in the first phase and soon float tenders to invite bids for the project. The mines auction, which kicked off earlier this year, is now pulling investors in hordes as 10 companies snapped up 16 mines, translating into a revenue of close to Rs. 595 billion for states. Singapore is seeking more time to revise the two-decade-old tax treaty with India, saying its investors need more time to shift to source-based taxation.
✍ TOP CORPORATE NEWS ONGC Limited has signed a preliminary pact to acquire a stake and operate the KG Basin block of Gujarat State Petroleum Corp. , which had announced a major natural gas discovery and spent USD 3 billion to develop it. Idea Cellular Limited acquisition of airwaves in this year’s auction will result in a Rs. 10 billion increase in planned capital expenditure for the year. The government, looking to get IDBI Bank Limited stalled disinvestment plan moving again, has instructed the lender’s management to bring its stake down to 52%. Adani Transmission Limited has completed the acquisition of the GMR Energy transmission assets, which it bought in July this year. Reliance Defence and Engineering Limited, a subsidiary of Reliance Infrastructure Limited, has signed a memorandum of understanding with ALLRIG USA for services in the oil and gas sector in India and the south-east region. Mahindra & Mahindra Limited became the first Indian company to announce its internal carbon Price of USD 10/t of carbon emitted. Standard Chartered Private Equity has increased its stake in Redington India by acquiring 3.48% shares in the company, taking up the total shareholding to 15.41%, worth over Rs. 1.50 billion. Reliance Communications Limited said Bombay High Court has approved its deal to acquire Russian conglomerate Sistema's Indian telecom unit, Sistema Shyam Teleservices Limited, that operates under the MTS brand. The government is likely to launch disinvestment in NMDC Limited, NALCO and MOIL Limited in the January-March quarter of the current fiscal, which could fetch about Rs. 60 billion to the exchequer. Oil India Limited has received environment clearance for Rs. 2.20 billion development drilling project in Jaisalmer district of Rajasthan.
Ajanta Pharma Limited said its new formulations facility at Guwahati will be commercialised before March 2017. Jubilant Life Sciences Limited has received the final approval from the US health regulator for Darifenacin Extended-Release Tablets, used for the treatment of urinary incontinence. Granules India Limited has received approval from the US health regulator for antiinflammatory drug Ibuprofen tablets, in the US market. Bharti Airtel Limited has relaunched its MyAirtel app with new ‘Airtel Apps’ section that will have a collection of top apps under a single interface, in addition to the existing selfcare features. Dr. Reddy's Laboratories Limited has launched Aripiprazole tablets in 2mg, 5mg, 10mg, and 30mg, a therapeutic equivalent generic version of Ablify tablets in the US market following the approval from the US Food and Drug Administration. Coal India Limited has tied up with Andhra Pradesh Generation Company for substituting imported fuel, used for blending purposes, by high quality Ranigunj coal. The initiative is part of the CIL’s effort to market Ranigunj coal that has few takers. As it looks to take on Reliance Jio heads on in providing high-speed broadband internet services, Bharti Airtel Limited has deployed a technology that will deliver speeds of up to 100 Mbps on its fixed broadband footprint in 87 cities. Reliance Broadcast Network is in advanced talks with the Zee Entertainment Enterprises Limited. The deal is expected to be in the range of Rs. 18-20 billion.
✍ TOP BANKING AND FINANCIAL NEWS OF THE WEEK Stung by high cost of funds when demand for loans is at the weakest in nearly a decade, state-run banks, which used to rely on long-term fixed deposits, are increasingly not accepting any fixed deposit beyond five years. This also reflects a dip in demand for long-term loans for infrastructure projects like power plants or ports, which require funding for anywhere between seven and twelve years, say bankers. Lenders like State Bank of India, UCO Bank and Punjab National Bank are discouraging depositors from
locking up funds at a higher rate for longer periods. By not contracting long-term, highcost funds banks are also playing safe in a falling interest rate regime where customers avoid borrowing for longer periods. India’s largest private sector lender, ICICI Bank Limited had tied up with Emirates NBD — a leading banking group in the Middle East — to execute transactions in international trade finance and remittance using blockchain technology. ICICI Bank is the first few banks globally to exchange and authenticate remittance transaction messages electronically on blockchain in real time. The usage of blockchain technology simplifies the process and makes it almost instant—to only a few minutes. “We have also marked a milestone by piloting a blockchain network with Emirates NBD as a partner and have successfully executed cross-border open account trade finance and remittance transactions,” Chanda Kochhar, MD & CEO, ICICI Bank said. Kochhar added that the emergence of blockchain will play a significant role in banking in the coming years by making complex bilateral and multi-lateral banking transactions seamless, quick and more secure Public sector banks which made losses or experienced sharp dip profit in the last fiscal could lose their ability to service coupon on additional tier 1 bonds issued under Basel III capital regulations. rating company Crisil said in a report. A sharp dip in profitability and mounting losses could wipe out the revenue reserves of some public sector banks, Crisil said. As many as 13 of the 21 public sector lenders reported losses for fiscal 2016, and almost half of them could do so again this fiscal, the rating company said. Crisil however did not divulge the name of the banks which are in risk of defaulting AT1 bond coupon payment. As on date, 14 banks have Rs 22,600 crore of additional tier 1 bonds outstanding. Small finance bank license holder Utkarsh Micro Finance has raised Rs. 395 crore by selling fresh shares from a clutch of Indian investors which will help it comply with one of Reserve Bank of India’s conditions to start banking operations. Varanasi based Utkarsh has sold shares to eight Indian institutional investors which will reduce its foreign shareholding to 48.5% from 85% helping to comply with RBI norms which stipulate that foreign ownership in these new banks must be must be at 49% or below. In a press release on Wednesday Utkarsh said HDFC Ergo General Insurance Co. Ltd, HDFC Standard Life Insurance Co Ltd, ICICI Prudential Life Insurance Co Ltd, RBL Bank Ltd., Shriram Life Insurance Co. Ltd, Small Industries Development Bank of India and local private equity funds such as Arpwood Investments and Faering Capital haver all bought stakes in the company. It did not give details of their ownership.
To cash in on the 7th Pay Commission payout to government employees, state-owned Punjab National Bank is offering them home and auto loans at attractive rates of 9.39.8 per cent beginning this month. Besides, the bank said it will offer loans to these segments without any processing or upfront fee and no documentation charges will be levied on them. The rate of interest is with effect from October 1, 2016. The Delhi-based state lender said the objective of the drive- christened as 'PNB Pride' -- is to "ensure availability of housing and vehicle loan at attractive rates and ensure a house and a car for all government employees". For housing loan, the floating interest rate has been fixed at marginal cost of lending rate for one year at 9.3 per cent. For those availing the housing loan on a fixed rate basis. Stung by high cost of funds when demand for loans is at the weakest in nearly a decade, state-run banks, which used to rely on long-term fixed deposits, are increasingly not accepting any fixed deposit beyond five years. This also reflects a dip in demand for long-term loans for infrastructure projects like power plants or ports, which require funding for anywhere between seven and twelve years, say bankers. Lenders like State Bank of India, UCO Bank and Punjab National Bank are discouraging depositors from locking up funds at a higher rate for longer periods. By not contracting long-term, highcost funds banks are also playing safe in a falling interest rate regime where customers avoid borrowing for longer periods. Jammu and Kashmir Bank Limited is willing to offer Islamic banking to customers in the state and would examine the proposal after taking the Reserve Bank on board, its chairman Parvez Ahmad said today. "Well, we have not given a serious thought to it, but there is a lot of demand for Islamic Banking in the state. Few clients who do not want to have the interest on their saving bank accounts, we do not have the mechanism how to take care of that particular component. But, we will examine the proposal and we have to also take RBI on board," Ahmad told reporters here. Country's largest lender State Bank of India today said it has consistently passed on Reserve Bank of India rate cuts to borrowers and would further reduce the lending rate in the near term, benefiting auto and home loan seekers. State Bank of India Chairperson Arundhati Bhattacharya has said that out of the 1.75 per cent rate cut by the RBI since January 2015, it has already passed on up to 0.95 per cent to the borrowers.
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