RBI to conduct Rs 600 bn special repo auction today

The Reserve Bank of India (RBI) will be conducting a special fixed rate term repo auction at 4.75% per annum (p.a.) against eligible securities for Rs 600 billion on Monday, Sep. 7, 2009.

The move will provide liquidity to mutual funds (MF), non-banking financial companies (NBFC) and housing finance companies (HFC) either on incremental or on rollover basis.

The reversal of the auction will take place on Sep. 22, 2009. There is no amount outstanding under this facility as on Aug. 31, 2009.

The apex bank had increased the daily liquidity adjustment facility (LAF) till Mar. 31, 2010 up to a cumulative amount of Rs 600 billion on outstanding basis exclusively for the purpose of meeting requirements of MFs, NBFCs and HFCs.

Sensex ends in negative; M&M plummets 7.93%

The Sensex ended in the negative terrain led by banking, metal and consumer goods stocks. Sustained selling was seen across board.

Equities opened on a flat note with negative bias tracking global cues. The 30-share index, BSE Sensex opened with a loss of 9.69 points, at 8,804.15 on Friday. After few minutes of trading, Sensex moved up into the postive to trade on a flat note touching a high of 8,858.84 amid volatility. Later the index fell back into the negative and slipped further on intense selling witnessed in frontliners touching a low of 8,631.60. Banking, realty and metal sectors were the major draggers.

BSE Midcap and Smallcap index declined 1.56% and 1.50% respectively.

Among the sectoral indices, BSE Bankex tumbled 4.16%, Metal plunged 3.35%, Consumer goods shed 2.87% and Realty declined 2.45%.

Asian stocks declined after losses at Sony Corp. and Samsung Electronics Co. showed the global recession is eroding the profits.

The Sensex ended the day with a loss of 139.49 points, or 1.58% at 8,674.35 after touching a high of 8,858.84 and a low of 8,631.60. The broad-based NSE Nifty fell 35.25 points, or 1.30% at 2,678.55 after hitting a high of 2,765.55 and a low of 2,661.65.

Biggest gainers in the 30-share index were Tata Motors (1.81%), Reliance Industries (1.78%), Ranbaxy Laboratories (0.75%), and NTPC (0.28%).

On the other hand, Mahindra & Mahindra (7.93%), Tata Steel (7.17%), Jaiprakash Associates (6.95%), Reliance Communications (4.50%), State Bank Of India (4.34%), and ICICI Bank (3.71%) were the major losers in the Sensex.

Overall market breadth was extremely negative. Out of the total 2,501 stocks traded at BSE, 808 advanced, 1,600 declined while 93 remained unchanged.

Results :

JK Tyre and Industries, swung to loss for the quarter ended December 2008 on account of severe impact in the demand due to the unprecedented global economic slowdown affecting the automobile sector in no small measure.

Zee News, primarily a media company registered a rise of 18.40% in the consolidated net profit in the quarter ended December 2008.

Union Bank of India, one of the largest public sector banks reported a phenomenal rise in standalone net profit for the quarter ended December 2008 due to rise in interest income.

Edelweiss Capital, a diversified Indian financial services company registered a fall of 17.13% in the consolidated net profit in the quarter ended December 2008


Indices Trend
Sensex Nifty
Period Value % Change Value % Change
1 Week 9,046.74 (4.12) 2,736.70 (2.12)
1 Month 9,686.75 (10.45) 2,968.65 (9.77)
3 Months 8,701.07 (0.31) 2,584.00 3.66
6 Months 14,274.94 (39.23) 4,311.85 (37.88)
1 Year 18,152.78 (52.21) 5,274.10 (49.21)


Thanks to www.myiris.com

ICICI Bank has healthy capital position: Chanda Kochhar

Chanda Kochhar, Joint MD and CFO, ICICI Bank, said India’s largest private sector bank has a very healthy capital position, “In the past few days there have been rumours being circulated about ICICI Bank’s financial health in certain parts of the country. These rumours are baseless. We wanted to clarify that ICICI Bank has a very healthy capital position.”

Kochhar said ICICI Bank is the second largest bank in India with an asset base of more than Rs 4,84,000 crore. “We have been proactively raising capital and have a net worth of Rs 47,000 crore. This gives us capital adequacy of 13.4%. The regulatory requirement is 9%, which means it is at least 150% more than what is required. This is one of the highest capital adequacy positions among large Indian banks. This indicates a very strong capital position and comfortable levels of leverage at which ICICI Bank operates.”



She said the bank has already clarified about its investments in the UK subsidiary. “About 98% of them are in investment grade and above category. We have also clarified that the capital adequacy not only of ICICI Bank but also of the subsidiaries are very comfortable. Today, the Reserve Bank also clarified that ICICI Bank and its subsidiaries abroad are well and sufficiently capitalized. They also clarified that we have enough liquidity to meet the requirements of our depositors.”



The Finance Minister has also clarified that the Indian banking system is well capitalized and well regulated. “In that context, I would only like to reiterate that the rumours are quite baseless. I would like to assure all our stakeholders including depositors, and investors that we continue to have a healthy capital position and financial position. We will be able to meet everybody’s requirement and there is no cause to worry at all.”

source: http://www.moneycontrol.com/