TECHNICAL TREND ( NIFTY - BANK NIFTY FUTURES ) NIFTY FIFTY : - The Indian Equity benchmark Nifty 50 opened in a positive note on Monday up by 29 points or 0.33 per cent at 8612. Benchmark Index Nifty traded in a very small range of 48 points on Friday, Nifty has taken support of its two month's low of 8550. The Global cues still remain weak which lead Nifty to break its 8550 level, Market were weak in trading on Monday trading session where Nifty saw a fall of 105 points from its last trading session High. The Point to be noted here is that there is a downward gap existed at 8703-8681. last trading session, Nifty touched this gap area. A minimum requirement for wave 2 is fulfilled. Now Need to watch market reaction at this gap area. The market can take reverse any time from here on. On the downside 8550 breaking will be the first indication of completion of wave 2 and begin of Wave 3 downside. Below 8550 spot, next key level 8350. Nifty at crucial level Cautious At Current Levels. Going Forward Market started moving southward , as investors remained wary about a US rate hike on horizon which made investors skittish, as a rate hike could affect liquidity flow for emerging markets. All eyes are on the progress of GST , GST rates may be indicated Although as per various reports, there may be 4/5 rates ranging From 40% with some additional cess, it may take some more time for an overall consensus and another meeting may be called in just before the Winter Parliament session to finalize it. As suspected in last update, Nifty faced stiff resistance at gap area and reversing lower. Hence, most probably, by taking into other technical indicators, upside capped at gap area and wave 2 ended at Thursday high. Now Nifty heading lower towards to break 8550 spot level. Avoid taking long positions. Once 8550 taken out next week , then Nifty moves down in one direction towards 8350. The crucial levels for Nifty is 8573-8447 down side and 8732-8812 Up side. BANK NIFTY : - The Bank Nifty opened in a Positive on Monday up by 116 points or 0.59 per cent at 19136. Banking stocks were the strongest, with Bank Nifty jumping up to 19500 with massive short covering seen in various Call strikes that led to a decrease in open interest. The PSU Banks have always remained in the radar, be it buying or selling. because of the Financial Performance of Public Sector Banks has been a concern , Investors have remained perplexed about holding the holding PSU Banks stocks. 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
Monday, 24 October 2016
capital regulations. rating company Crisil said in a report. 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. Bank Nifty has to sustain above 19600-19650* area for further rally towards 19850-19950/20000 & 20200-20350 for the Next Week. On the other side, sustain below 19450-19400 zone, Bank Nifty may further fall towards 19300-19200 & 19040-18900 zone as the session progress. The Crucial level for Bank Nifty is 19850-19960 up side and 19080-19260 is down side.
TECHNICAL VIEW (NIFTY- BANK NIFTY FUTURES ) NIFTY DAILY
R2 8824
WEEKLY
R2 9290
MONTHLY
R2 9557
R1
PP
S1
S2
8722
8671
8620
R1
PP
S1
S2
8850
8630
8410
7970
R1
PP
S1
S2
8957
8657
8357
7757
R1
PP
S1
S2
19713
19585
19457
19201
R1
PP
S1
S2
20151
19437
18723
17295
R1
PP
S1
S2
20394
19411
18428
16462
8518
BANK NIFTY DAILY
R2 19969
WEEKLY
R2 21579
MONTHLY
R2 22360
MOVING AVERAGE
21 DAYS
50 DAYS
NIFTY
8700
8709
8527
8050
BANK NIFTY
19500
19498
18817
17255
PARABOLIC SAR
DAILY
WEEKLY
100 DAYS
200 DAYS
MONTHLY
NIFTY
8762
8935
7493
BANK NIFTY
18824
20344
15079
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 Indicators, 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 8600-8680 both the Indicators are Indicating break above 8720 would be the Important level for the Nifty. The Crucial Levels of Index For Next Week is 8753-8798 is Up side 8604-8555 is down side.
PATTERN FORMATION ( BANK NIFTY )
Detail of Chart - On the Above given daily Chart of Bank Nifty has Applied the Bollinger Band along with Parabolic SAR , The Bank Nifty Chart has also formed the Bullish Kicker Kind of Pattern on the daily chart of Bank Nifty which clearly indicating the Bullish Movement for the Index in Upcoming week. The Bank Nifty is has Touched the level of 19900 three time in last week but was not able to Sustain. From here we are Expecting that if Bank Nifty is able to break the level of 19800 could lead for the target of 20200-20560 in Near-Term. The Crucial levels for Bank Nifty is 19900-20120 is Up side and 19560-19480 is down side.
NSE EQUITY DAILY LEVELS COMPANY NAME
R2
R1
PP
S1
S2
ACC
EQ
1641
1596
1568
1523
1495
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
79 256 1182 545 2832 160 116 144 314 610 315 159 3171 452 997 861 1372 1286 3390 157 862 283 242 1241 1053 79 793 1528 1336 51781 5700 284 136 49 550 1112 584 50 262 210 754 554 86 432 150
78 251 1165 537 2816 158 114 143 312 595 314 158 3143 446 986 847 1354 1279 3374 154 857 280 241 1233 1045 78 787 1520 1331 51091 5675 281 133 48 547 1089 579 49 261 207 751 549 84 430 149
77 249 1154 530 2799 156 113 141 308 583 313 155 3116 441 977 834 1342 1264 3359 153 847 277 239 1217 1034 76 778 1507 1326 50409 5646 279 131 47 542 1073 574 49 258 204 745 545 83 425 146
76 244 1137 522 2783 154 113 140 306 568 312 154 3088 435 966 820 1324 1257 3343 150 842 274 238 1209 1026 75 772 1499 1321 49719 5621 276 128 46 539 1050 569 48 257 201 742 540 81 423 145
75 242 1126 515 2766 152 111 138 302 556 311 151 3061 430 957 807 1312 1242 3328 148 832 271 236 1193 1015 73 763 1486 1316 49037 5592 274 126 45 534 1034 564 48 254 198 736 536 80 418 142
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
ICICI BANK
241
277
ADANI PORTS
254
285
IDEA CELLULAR
74
80
TATA POWER CO.
78
83
BHEL
132
141
WIPRO LIMITED
475
499
YES BANK LTD
1259
1317
TATA STEEL
412
427
TECH MAHINDRA
419
434
NTPC
145
149
DR. REDDY LAB
3031
3113
TCS
2366
2428
SBIN
252
258
L&T
1474
1510
LUPIN LIMITED
1464
1500
// % CHANGE
+14.75 % +12.35 % +7.10 % +6.63 % +6.62 % +5.09 % +4.56 % +3.61 % +3.58 % +3.10 % +2.72 % +2.64 % +2.54 % +2.44 % +2.42 %
SR.NO
TOP 15 LOOSERS SCRIPT NAME
PREV CLOSE
CMP
% CHANGE
1
INDIAN OIL CORP 643
324
- 49.56 %
2
KAJARIA CHEM
724
615
- 15.05 %
3
NBCC LIMITED
256
241
- 6.02 %
4
MPHASIS LTD
546
518
- 5.10 %
5
ACC LTD.
1640
1566
- 4.52 %
6
MIND TREE LTD
501
479
- 4.40 %
7
ASIAN PAINTS
1205
1153
- 4.33 %
8
CEAT LIMITED
1375
1316
- 4.29 %
9
BHARAT FORGE
916
889
- 2.90 %
10
PETRONET LNG
400
389
- 2.88 %
11
AMBUJA CEMENT 252
247
- 2.35 %
12
TRENT LTD.
210
205
-2.33 %
13
M&M FINSERV
370
362
- 2.29 %
14
M&M
1357
1326
- 2.24 %
15
ALKEM LAB
1696
1659
- 2.22 %
NEXT WEEK STARS( AS PER TECHNICAL ANALYSIS ) NSE FUTURE NSE FUTURE : SELL RELIANCE FUTURE BELOW 1060 TGT 1040 SL 1070 NSE FUTURE : SELL RELIANCE CAPITAL FUTURE BELOW 540 TGT 520 SL 550. NSE FUTURE : BUY JAINIRRIGATION SYSTEMS FUTURE ABOVE 105 TGT 110 SL 103.
NSE CASH NSE CASH : BUY ABFRL NSE CASH ABOVE 151 TGT 162 SL 147. NSE CASH : BUY NOCIL NSE CASH ABOVE 79 TGT 86 SL 75. NSE CASH : BUY ASHOKLEY NSE CASH ABOVE 87.50 TGT 94 SL 85.
NSE - WEEKLY NEWS LETTERS � TOP NEWS OF THE WEEK WPI inflation to average 1.5% this year: Nomura - Inflation based on wholesale prices is expected to moderate further in the months ahead and is expected to average 1.5 per cent this year, says a Nomura report. According to the Japanese financial services major, despite adverse base effects the Wholesale Price Index-based inflation is set to moderate further on account of lower food prices and still weak pricing power of firms. "In the months ahead, we expect WPI inflation to moderate further despite adverse base effects due to lower food prices and still weak pricing power of firms," Nomura said in a research note. In its base case, Nomura expects WPI inflation to average 1.5 per cent in 2016 as against (-)2.7 per cent in 2015. Reversing its 7-month uptrend, wholesale inflation eased to 3.57 per cent in September, as good monsoon helped cool food prices. In September 2015, WPI inflation was (-)4.59 per cent. In August this year it stood at 3.74 per cent. "The positive WPI inflation surprise was mainly driven by a sharp moderation in food prices, while core WPI inflation was unchanged," Nomura said. Draft bill on resolution of financial firms credit positive: Moody's - The draft bill on resolution of financial firms is credit positive for banks as it is an important step to having a comprehensive framework in place for stressed financial firms, Moody's Investors Service today said. After enacting a bankruptcy code for time-bound settlement of insolvency cases in non-financial firms, the finance ministry last month released a draft bill to set up a resolution corporation to address similar issues among financial firms. "Currently, the resolution of financial firms in India is based on minor parts of legislation enacted for other purposes," says Srikanth Vadlamani, a Moody's Vice President and Senior Credit Officer. "This bill is therefore credit positive for Indian banks in terms of enhancing overall systemic stability." In a report titled 'Draft Bill on Resolution Will Enhance Systemic Stability', Moody's said based on the draft bill, bail-ins do not seem to be the preferred form of resolution, with significant restrictions in place for their usage. These restrictions include contractual bail-in clauses for instruments that may be bailed in and requirements that bail-ins should be used only after attempts at recovery have been made. Consequently, Moody's expects that the Indian banking system will continue to function without an operational resolution regime, and banks should continue to be rated under a basic loss given failure framework. Moody's also said the bill ranks depositors above senior unsecured creditors in a liquidation scenario. In contrast, under existing laws, senior unsecured creditors rank on equal footing with uninsured depositors.
Current account deficit likely to stay below 1 per cent of GDP this year: DBS report - India's current account deficit is likely to stay below 1 per cent of GDP this year, largely due to a sharp fall in the trade deficit as against last year, says a DBS research report. India's trade deficit in September stood at $ 8.33 billion when the trade gap was the highest in the last nine months. According to the global financial services major DBS, the widening of the trade deficit will be "watched closely", especially at a time when the services sector receiptsand private transfers are under pressure. "That said, a sharp fall in the trade deficit vis-à-vis last year suggests this year's current account deficit is likely to stay below 1 per cent of GDP from (-) 1.1 per cent in 2015-16," DBS said in a research note. In September, exports went up 4.62 per cent to $ 22.9 billion, while the country's imports contracted by 2.54 per cent to $ 31.22 billion, leaving a trade deficit of $ 8.33 billion. The trade gap was $ 11.66 billion in December 2015 while in September 2015, it stood at $ 10.16 billion. Regarding inflation and the consequent policy action, the report said that the Reserve Bank's policy decisions are likely to primarily take direction from CPI trends. $ 10 billion unhedged gap in foreign exchange deposit redemptions may put rupee under pressure - The Indian banking system has left a $ 10-billion position unhedged amid foreign exchange deposit redemptions, making the rupee vulnerable to a sudden depreciation in the next few months. On the other hand, such a drop would act as a booster for exports and possibly narrow the trade deficit although imports of oil and other commodities would become costlier, said experts, some of whom suggested the gap may have deliberately been left uncovered. Three years after the Reserve Bank of India sought to shore up the rupee through foreign currency non resident-bank deposits, the country is bracing for an outflow as these get redeemed. The rupee was at 66.72 a dollar on Friday. Experts baffled by RBI move. The Indian currency was at 66.68 a dollar a week back and may weaken to 67.50-68.00 a dollar by December, dealers said. According to a note prepared by one of India’s top private sector banks, there’s a $ 9.5-billion gap between $ 22.4 billion of FCNR-B maturities and $ 12.9 billion of forward contracts for October and November. “There is high possibility of a systemic rupee depreciation in the coming months on account of FCNR-B outflows,” said KN Dey, executive director at Mecklai Financial. “The rupee has been steady for almost 10 months and a fall will boost exports and in turn, reduce trade deficit.” India is double-digit growth market for cargo deliveries' - India continues to be one of the main growth markets for DHL Express which opened a new USD 100 million South Asia Hub in Singapore today. India-led South Asian markets accounted for 30 per cent growth in express cargo deliveries for DHL between 2012-15, the company's executives
said, adding that India itself is a double-digit growth market. The company, which inaugurated the new 140 million Singapore dollar South Asia Hub here, serves India with two dedicated daily flights to Bangalore and Delhi as well as commercial flights for express cargo deliveries to Mumbai, the officials said. The two dedicated flights to Bangalore and Delhi offers 195 tonnes per flight six times a week. South Asia accounts for 30 per cent of the company's daily shipment growth between 2012-2015, said Ken Lee, CEO of DHL Express Asia Pacific. Oceania accounts 50 per cent and South East Asia about 25 per cent, he said. "India is a double-digit growth market for DHL Express," said Sean Wall, executive vice president for network, operations and aviation for Asia Pacific. India Inc's Janyary-September M&A tally at $ 28 billion: Grant Thornton - Corporate India's shopping spree continued unabated in the third quarter of this year, with merger and acquisition deals worth $ 12.17 billion were announced, taking the year-to-date tally to $ 28 billion, says a report. In the July-September quarter, there were 140 M&A deals worth $ 12.17 billion as against 146 M&A transactions worth $ 6.87 billion in the yearago period. According to global audit, tax and assurance firm Grant Thornton, the significant rise in M&A deal activity in the September quarter was majorly driven by $ 3 billion deals contributing to over 50 per cent of the values. The quarter also witnessed two mega mergers in telecom and banking sectors. Overall M&A values saw a 33 per cent rise in the first nine months of this year largely owing to increase in domestic deals along with big ticket mergers and restructurings. During January-September period, there were 244 domestic deals worth $ 11.84 billion, and 13 mergers and internal restructuring worth $ 4.94 billion. However, cross border M&A activity declined by 13 per cent owing to fewer big-ticket transactions. There were 17 deals over $ 100 million so far this year as compared to 26 such deals in January-September 2015.
� TOP ECONOMY NEWS Indian companies have raised close to Rs. 240 billion by issuing non-convertible debentures in the first half of the current fiscal to meet their business needs. The crucial three-day meeting of the all-powerful GST Council, will decide on the tax rate and sort out issues like compensation formula for rollout of the new indirect tax regime from April 1, 2017. The Centre is likely to propose a four tier-tax structure under the goods and service tax
with a peak slab of 26%. Almost a fourth of all taxable goods, including those consumed by the middle class, may come under the peak rate. Consumer Price Index based inflation eased to 4.31% in September as against 5.05% in August. It was 4.41% in September 2015. Net direct tax collections grew 8.95% in the first half of the fiscal, amounting to Rs. 3.27 trillion. The Cabinet Committee on Economic Affairs cleared a proposal to come up with a new mechanism for revision of ethanol price for supply to public sector oil marketing companies to carry out the Ethanol Blended Petrol programme. Through this, the prices of ethanol for blending will be cut by about 21% from December 1. The country plans to more than double its liquefied natural gas import capacity to 50 MT in the next one year. India's rooftop solar energy capacity has crossed 1 GW mark this year with 513 MW generation capacity added over the past 12 months. The much-awaited decision on GST rates did not come at the last day of the third round of GST Council meeting. These will be discussed further at the next meeting of the Council, slated for November three and four. Banks in India will either replace or ask users to change the security codes of as many as 3.2mn debit cards in what's emerging as one of the biggest ever breaches of financial data in India. Reserve Bank of India has eased norms for foreign investment in start-ups. The banking regulator said that any Foreign Venture Capital Investors which is registered under the Securities and Exchange Board of India Regulations can invest in equity or equity linked instrument or debt instrument issued by an Indian 'start-up' irrespective of the sector in which the start-up is engaged. They will not require any approval from RBI. Union Labour Minister said that the Employees Provident Fund Organisation has invested over Rs. 90 billion in Exchange Traded Funds till September 30 this year with a Return on Investment of 9.43%.
Simplifying external commercial borrowing norms, RBI delegated powers to banks to approve requests from borrowers for extension of matured but unpaid ECB.
✍ TOP CORPORATE NEWS After establishing itself in benzene-based derivatives for over three decades, Aarti Industries Limited diversified into toluene-based derivatives in this financial year by setting up 30,000 tpa greenfield capacity at Jhagadia Gujarat. Suven Life Sciences Limited has been granted one product patent each by Europe and Israel for a drug used in the treatment of neuro-degenerative diseases. Vedanta group company Cairn India Limited plea for permission to export excess crude from its oil field in Rajasthan was dismissed by the Delhi High Court. Cochin Shipyard Limited has signed a MoU with Engineers India Limited for design and construction of small-scale LNG carriers. Ceat Limited has introduced a new range of puncture-safe tyres for motorcycles, thereby creating a new segment. ABG Shipyard Limited will soon be getting a new owner as promoters of the company are in advance talks with a Russian shipbuilder for sale of the controlling stake. PTC India Financial Services Limited has taken recourse to SARFAESI law to recover stressed loans from two power projects after the Centre in August explicitly allowed certain NBFCs to use this route for recovery of dues. Apollo Health and Lifestyle, a subsidiary of Apollo Hospitals Enterprise Limited, is planning to raise Rs. 4.50 billion by selling the equity in the company. The company aims to double the network of clinics to 150 centres in the next three years by utilising these funds. Granules India Limited said its Gagillapur facility in Hyderabad has completed USFDA inspection without any observations. Ashok Leyland Limited launched ‘Circuit’ Series – first Electric Bus Made in India.
IFCI Limited lowered short-term lending rate by a steep 0.80% following the 0.25% repo rate cut by the Reserve Bank of India. Jet Airways Limited is set to introduce wide-body services on the busiest domestic routes in a move that will significantly enhance connectivity. After Maruti Suzuki India Limited signed a pact with the government for transportation of vehicles through inland waterways, Mahindra & Mahindra and Honda are also trying for one. Shriram EPC Limited has bagged a Rs. 0.61 billion contract for a water supply scheme in Bengaluru. It has bagged the contract for a water supply scheme to Robertsonpet City under the Centre’s Atal Mission for Rejuvenation and Urban Transformation scheme. Nokia has bagged USD 230 million 4G network deal from Bharti Airtel Limited in nine telecom service areas. Sun Pharmaceuticals Industries Limited announced a new collaboration with International Centre for Genetic Engineering and Biotechnology for development of dengue vaccine targeted against all four serotypes of the virus. L&T Technology Services Limited, an arm of Larsen and Toubro, has secured a multimillion dollar contract from a large global semi-conductor company to provide verification support on their expansive portfolio of offerings and products. Bharti Airtel Limited launched a 10 GB data offer for Rs. 259 for consumers buying a new 4G mobile device, offering data at effectively just over Rs. 25 a GB to take on aggressive pricing from new entrant Reliance Jio Infocomm. Coal India Limited will begin special spot e-auction of coal and will put on offer 20 MT of the fossil fuel for various sectors, including power, amid government’s efforts for 24x7 power to all. Hindustan Zinc Limited will come out with its specialised product -- zinc die casting alloy -- through which it looks to meet requirements of auto, household appliances and defence sectors.
The government will sell 15% stake in NBCC India Limited at a floor price of Rs. 246.50 /share, which is expected to fetch around Rs. 22 billion. The Supreme Court directed Unitech Limited to refund the principal cost of flats to 39 buyers who had booked apartments in a Gurgaon project seven years back and have still not got possession of their houses. Mahindra & Mahindra Limited said that it will buy 60% stake in Classic Legends , a company engaged in manufacturing and marketing two-wheelers, for Rs. 60 million. Suzlon Energy Limited announced a joint venture with Canadian Solar for developing two solar projects of 15 MW each in Telangana. The NCC-BGR Consortium has been awarded the Pachhwara North Coal Block Mine Developer and Operator Project by the West Bengal Power Development Corporation Limited. Nestle India Limited said Maggi noodles in India has reported sustained recovery, regaining market share in the country almost a year after it was relaunched following a 5month ban in 2015. Wipro Limited has acquired US-based consultancy firm Appirio, a services firm with a large offshore firm that helps corporates implement cloud applications such as SalesForce. Ashok Leyland Limited has won USD 170 million order from the government of United Republic of Tanzania. Quess Corp Limited said it will acquire stake in three companies – Terrier Securities, Simpliance and Comtel Solutions -- helping it to offer increased services and expand the share of the wallet from its clients. Government has received over Rs. 324 billion in upfront payments for telecom spectrum that was sold in the recently-held auction with five operators, including Bharti Airtel Limited and newcomer Reliance Jio, paying Rs. 199.81 billion. Insurance Regulatory and Development Authority of India has said that the final decision of the surveyor in a claim payment case to Nectar Life Sciences Limited by New India
Assurance in a Rs14.30bn policy will be final. The surveyor has said that it is not payable as the loss occurred due to delay in transit, which is an exclusion in the policy and not due to fire.
✍ TOP BANKING AND FINANCIAL NEWS OF THE WEEK A month ago, an official of Axis Bank Limited — India’s third-largest private sector lender — received an unexpected telephone call. The caller, an engineer at Kaspersky Lab, the well-known Moscow based cyber security firm, rattled off the names of several Axis computers which, he claimed, have been breached. The Kaspersky man said his firm had stumbled on the information in the course of a separate probe. When an Axis team looked into the bank’s servers, it found out that there was indeed an unauthorised login by an unnamed, offshore hacker. Last week, Axis filed a preliminary report about the breach to Reserve Bank of India. The bank has hired EY, the audit and advisory firm, to carry out an investigation. Till now, there are no reports of any fund transfers, but the bank and EY are trying to figure out the extent of damage, data loss if any, and most importantly whether the virus is still crawling in the institution’s server zone, said a banker who is aware of the breach. Billionaire Uday Kotak did something unusual last month. He signed off on his Kotak Mahindra Bank valued at Rs 1.4 lakh crore for buying BSS Micro Finance, a tiny lender which does not even have 1% of the assets the bank has. And Kotak is not alone in the hunt for companies which make money out of lending to people who need a few thousand rupees to do their business – like a vegetable vendor, a carpenter, or an auto rickshaw driver. Those who minted money lending to businessmen in South Mumbai and in New Delhi for their BMWs or Mercs, are setting their eyes on towns and villages like Sanchi or Mettur. At last, the big banks in India are beginning to act on management guru CK Prahalad’s ‘Bottom of the Pyramid’ story. Things may be falling in place for small towns and villages which have been credit starved despite the lofty principles of making credit available to everyone on which banks were nationalised. 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 Limited 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. 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 taking the State Bank of India and its associates as a consolidated entity reported losses for fiscal 2016, and almost half of them could do so again this fiscal, the rating company said. 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, high-cost funds banks are also playing safe in a falling interest rate regime where customers avoid borrowing for longer periods.
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