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India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
TOP STORIES
Festive season sees loans grow faster than deposits
Loans grew faster than deposits during the fortnight ended September 9,
indicating an increase in credit demand during the festive season. The growth in
loans has been slow so far this financial year, owing to steep rate rises by the
Reserve Bank of India (RBI). According to recent data released by RBI, credit
growth during the period was Rs 294.33 bn, a growth of 0.7 per cent over the
previous fortnight. On a year-on-year basis, loans grew 20.4 per cent till
September 9. On the other hand, deposits saw a growth of only Rs 129.35 bn, a
rise of 0.2 per cent over the previous fortnight. On a year-on-year basis, deposits
grew 17.5 per cent. (Business Standard)
SBI extends 25 bps discount on home loans till December
Facing stiff competition from its rivals offering dual interest home loan products,
the country's largest lender State Bank of India (SBI) on Wednesday extended 25
basis point concessional home loan scheme till December this year. Under the
scheme, SBI offers 25 bps discount on interest rates on its card rate across the
tenor of a floating home loan. The scheme which was open till October 31, 2011,
has now been extended till December 31, 2011. (Economic Times)
NBFCs want risk weight lowered for secured assets
Non-banking finance companies want the RBI to introduce dynamic risk-weighting
for their assets to compensate for the higher capital adequacy that the central
bank's Working Group on Issues and Concerns in the NBFC Sector has
recommended. Welcoming the move towards convergence in regulations
between banks and non-banks, Mr T.T. Srinivasaraghavan, Managing Director,
Sundaram Finance Ltd, said, like banks, NBFCs too should get the benefit of
lower-risk weightage for secured assets so that capital is freed-up for further
lending. (The Hindu Business Line)
DB RESEARCH
HDFC Company meeting takeaways: stable spreads & growth
The key takeaway from our meeting with HDFC management is that a well
diversified liabilities mix is its core strength; this continues to differentiate HDFC
from its peers. The company is confident in growing loans at 18-20% in FY12E,
with volumes in non-metro areas partly off-setting the moderation in metro areas.
HDFC carries excess provisions on its balance sheet; hence, there will not be any
material impact of the recent change in NPL provision norms by NHB. We
maintain a Buy rating with a target price of INR805.
Sector news
Insurers can't deny claims for delay in intimation, says Irda
From now on, insurers cannot deny any claims on the ground of delayed filing and intimation
of documents, particularly if the delay was due to unavoidable circumstances. The Insurance
Regulatory and Development Authority (Irda), in a circular to insurance companies, said it had
been receiving many complaints that claims were being rejected by the insurers on the
ground of delayed intimation and submission of documents. (Business Standard)
Yuan finds favour with infra firms
As currencies of developed nations struggle to maintain supremacy in global financial
markets, the yuan is finding favour with Indian firms. Despite the partial convertibility clause,
the Chinese currency is fast gaining popularity as an alternate source of fund raising by India
Inc. The demand for yuan-denominated funds in the country, along with the growing IndoChina trade, is clearly reflected in the government's decision to allow fund raising up to $1
billion in the currency. According to bankers, power and infrastructure companies are
showing great interest, mostly due to the purchase of equipment from Chinese
manufacturers. Infrastructure and power companies usually have projects with long gestation
periods, and longer tenor debt is preferred, they said. (Business Standard)
YES Bank ties up with Malayan Bank Berhad
YES Bank and Malayan Banking Berhad signed an agreement to offer cross-border
investment banking, advisory, corporate banking, trade finance, remittance and other services
between India and Malaysia, said a press release issued by YES Bank. The alliance will play
an active role towards further augmenting trade and investment flows in the Indo-South East
Asia corridor, the release said. (The Hindu Business Line)
IDFC to raise Rs 50bn via tax-saving infra bonds
Infrastructure Development Finance Company (IDFC) is planning to raise up to Rs 50bn
through tax-saving bonds in the current fiscal. The proceeds from bonds with a face value of
Rs 5,000 would be used for investment in infrastructure sector, said the draft document.
(Business Standard)
PFC gets RBI nod for $1 bn overseas debt issue
State-run Power Finance Corp has received the RBI's approval to raise $1 billion via offshore
medium-term note borrowing, which will mark its debut in the international bond market. The
company, which expects to set up an Euro Medium Term Note (EMTN) programme in the
next 6-8 weeks, said it will appoint bankers for the offering by end-September, the source
said. The borrowing will be utilised for funding the power projects, including ultra mega
power projects, financed by the company, the source added. (Business Standard)
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
TOP STORIES
Festive season sees loans grow faster than deposits
Loans grew faster than deposits during the fortnight ended September 9,
indicating an increase in credit demand during the festive season. The growth in
loans has been slow so far this financial year, owing to steep rate rises by the
Reserve Bank of India (RBI). According to recent data released by RBI, credit
growth during the period was Rs 294.33 bn, a growth of 0.7 per cent over the
previous fortnight. On a year-on-year basis, loans grew 20.4 per cent till
September 9. On the other hand, deposits saw a growth of only Rs 129.35 bn, a
rise of 0.2 per cent over the previous fortnight. On a year-on-year basis, deposits
grew 17.5 per cent. (Business Standard)
SBI extends 25 bps discount on home loans till December
Facing stiff competition from its rivals offering dual interest home loan products,
the country's largest lender State Bank of India (SBI) on Wednesday extended 25
basis point concessional home loan scheme till December this year. Under the
scheme, SBI offers 25 bps discount on interest rates on its card rate across the
tenor of a floating home loan. The scheme which was open till October 31, 2011,
has now been extended till December 31, 2011. (Economic Times)
NBFCs want risk weight lowered for secured assets
Non-banking finance companies want the RBI to introduce dynamic risk-weighting
for their assets to compensate for the higher capital adequacy that the central
bank's Working Group on Issues and Concerns in the NBFC Sector has
recommended. Welcoming the move towards convergence in regulations
between banks and non-banks, Mr T.T. Srinivasaraghavan, Managing Director,
Sundaram Finance Ltd, said, like banks, NBFCs too should get the benefit of
lower-risk weightage for secured assets so that capital is freed-up for further
lending. (The Hindu Business Line)
DB RESEARCH
HDFC Company meeting takeaways: stable spreads & growth
The key takeaway from our meeting with HDFC management is that a well
diversified liabilities mix is its core strength; this continues to differentiate HDFC
from its peers. The company is confident in growing loans at 18-20% in FY12E,
with volumes in non-metro areas partly off-setting the moderation in metro areas.
HDFC carries excess provisions on its balance sheet; hence, there will not be any
material impact of the recent change in NPL provision norms by NHB. We
maintain a Buy rating with a target price of INR805.
Sector news
Insurers can't deny claims for delay in intimation, says Irda
From now on, insurers cannot deny any claims on the ground of delayed filing and intimation
of documents, particularly if the delay was due to unavoidable circumstances. The Insurance
Regulatory and Development Authority (Irda), in a circular to insurance companies, said it had
been receiving many complaints that claims were being rejected by the insurers on the
ground of delayed intimation and submission of documents. (Business Standard)
Yuan finds favour with infra firms
As currencies of developed nations struggle to maintain supremacy in global financial
markets, the yuan is finding favour with Indian firms. Despite the partial convertibility clause,
the Chinese currency is fast gaining popularity as an alternate source of fund raising by India
Inc. The demand for yuan-denominated funds in the country, along with the growing IndoChina trade, is clearly reflected in the government's decision to allow fund raising up to $1
billion in the currency. According to bankers, power and infrastructure companies are
showing great interest, mostly due to the purchase of equipment from Chinese
manufacturers. Infrastructure and power companies usually have projects with long gestation
periods, and longer tenor debt is preferred, they said. (Business Standard)
YES Bank ties up with Malayan Bank Berhad
YES Bank and Malayan Banking Berhad signed an agreement to offer cross-border
investment banking, advisory, corporate banking, trade finance, remittance and other services
between India and Malaysia, said a press release issued by YES Bank. The alliance will play
an active role towards further augmenting trade and investment flows in the Indo-South East
Asia corridor, the release said. (The Hindu Business Line)
IDFC to raise Rs 50bn via tax-saving infra bonds
Infrastructure Development Finance Company (IDFC) is planning to raise up to Rs 50bn
through tax-saving bonds in the current fiscal. The proceeds from bonds with a face value of
Rs 5,000 would be used for investment in infrastructure sector, said the draft document.
(Business Standard)
PFC gets RBI nod for $1 bn overseas debt issue
State-run Power Finance Corp has received the RBI's approval to raise $1 billion via offshore
medium-term note borrowing, which will mark its debut in the international bond market. The
company, which expects to set up an Euro Medium Term Note (EMTN) programme in the
next 6-8 weeks, said it will appoint bankers for the offering by end-September, the source
said. The borrowing will be utilised for funding the power projects, including ultra mega
power projects, financed by the company, the source added. (Business Standard)
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