Motor combined ratios may see improvement in FY17

The combined ratios of general insurance companies in the motor insurance segment may seen an improvement with the third party premium hike and declined pool being dismantled. Combined ratios had exceeded 100% for insurers meaning that the claims paid were much more than the premium collectedIn FY17, the motor third party premiums went up by increase of 10-40% from April 1 in the private cars and two-wheeler segment. Insurers said that taking into consideration the heavy losses in the motor segment, this rate hike was given which has been proportionally higher than the previous yearsWhile rates went up by 40% for all private cars with engine capacity under 1,500cc, it went up by 25% for cars with a higher engine capacity. Insurance Regulatory and Development Authority of India (IRDAI) in its circular said the cost inflation index had increased by 5.57% year-on-year, from 1,024 in FY15 to 1081 in FY16.However, the regulator cautioned insurers against denying or refusing to provide third-party covers for any vehicle. For two-wheelers, there would be a rise of 10-15% for vehicles up to 150cc, with a 25% hike in for two-vehicles with engine capacity of 150-350 cc. Share Market Astrology

Third-party motor premium is regulated by IRDAI and revised yearly, based on inflation and claims. While TP insurance is mandatory, own damage or OD insurance is optional for individuals. This type of insurance is mandatory for all motor vehicles on roads and covers the owner from third-party liability arising out of accidents or damage.Overall, the net incurred claims of non-life insurers stood at Rs 55,232 crore in 2014-15, against Rs 49,179 crore in 2013-14. The incurred claims exhibited an increase of 12.31% in FY15.Among the various segments, health insurance and motor insurance had a high claims ratio at 96.93% and 77.14% respectively. In the motor insurance space, while premiums had seen growth, rewards from the compensation from third-party incidents had seen a 20-30% growth.Bearing losses from the declined pool was also a cause of worry. However, the Declined Risk Pool for Commercial Vehicles that was in operation from April 1, 2012 has been dismantled from April 1, 2016. Sector executives said that this will lead to an improvement in the quality of motor business.IRDAI in its Obligation of Insurers in respect of Motor Third Party Insurance Business Regulations, 2015 which specified the insurers to underwrite minimum obligations in respect of Motor Third Party Business. This was based on a formula taking into account factors like total 'Gross Direct Premium Income (GDPI)' under all lines of business of all insurers in the immediate preceding financial year, total GDPI under motor insurance business of all insurers in the immediate preceding financial year among othe Nifty Trading Tips.

At present. motor insurance in India continued to be the largest non-life insurance segment business wise. It reported growth rate of 10.52% in last fiscal (14.15% in 2013-14), as per Insurance Regulatory and Development Authority (IRDAI). However, losses with respect to claims have been high.Overall, the net incurred claims of the non-life insurers stood at Rs 55,232 crore in 2014-15 as against Rs 49,179 crore in 2013-14. The incurred claims exhibited an increase of 12.31% during 2014-15.Among the various segments, health insurance and motor insurance had a high claims ratio at 96.93% and 77.14% respectively. In the motor insurance space, while premiums have seen a growth, rewards from the compensation from third party incidents have seen a 20-30% growth. Jackpot Stocks Trading Tips

Inflation remains high; No need to borrow in dollars: Rajan

Inflation remains “fairly sticky” and above the comfort level of the Reserve Bank of India (RBI), Governor Raghuram Rajan said, dashing hopes of any immediate lowering of interest rates by the central bank.At the same time, Rajan also exuded confidence about a robust pace of economic growth and said there was no need to borrow dollar from overseas markets as there were no problems on borrowing in domestic currency. He also promised greater access to the foreign investors to the rupee bond markets in India. “We have been increasing that (access) every six months and as we feel more confident about the pace of the economy and the prospects for the global economy and no surprises, we will look at that,” he added.Financial Astrology
Rajan has often linked his monetary policy actions to the retail inflation, which soared past five per cent level in April, as per the latest government data released on Thursday. The industry has been demanding further rate cuts by RBI to boost growth. The central bank is scheduled to hold its next monetary policy review meeting on June 7.Speaking at the Chicago Booth Business School on Friday, Rajan said, “Broadly, core inflation has been fairly sticky, a bit higher than we would want.”
It has not moved up and down. We will continue on the task of anchoring expectations.” Personal Numerology

He, however, exuded confidence in the recovery of Indian economy and pinned his hopes on a good monsoon."We are at the beginning or maybe in the midst of a slow recovery. The signs of faster growth are there... A good monsoon would accelerate the process of recovery." Rajan also sought to allay concerns over the bad-loan crisis and said banks have now got instruments to deal with this problem with the passage of the new bankruptcy la"I am hopeful the clean up will happen and create the necessary room for the banks to lend," he added.Rajan, who has previously served as the Chief Economist of the International Monetary Fund (IMF), further said, "I see absolutely no reason for the sovereign to issue dollar bonds across "The lesson for all of us is make sure you get fundamentals right and don't get too reliant on foreign capital," he said, while adding it was not critical to the country's development.  Sensex Astrology 

PSU strategic sale road map in 2 months

will submit a detailed plan in the next two months on the divestment of government’s stakes in some public sector undertakings (PSUs) and strategic sale of those units that have been sick for a long time"The NITI Aayog will submit its detailed plan on strategic sales of government's stake in sick as well as profit-making PSUs within couple of months' time," a source said.
The Aayog has almost completed the task of preparing the list of PSUs that have been sick for a long time and cannot be revived and it will recommend closure and selling off those units accordingly, a source said.The source added, “The work on preparing another list will start soon. These will be profit-making PSUs where government can sell its stake to maximise proceeds from such divestments.”Commodity Market Astrology Tips

Initiating the work on strategic sale of PSUs, the Department of Investment and Public Asset Management (DIPAM) and NITI Aayog started discussions in March to identify state-run firms where the government can divest its stake.Finance Minister Arun Jaitley had said in his Budget 2016-17 speech that NITI Aayog will identify PSUs for strategic sale.Jaitley had said, "A new policy for management of government investment in Public Sector Enterprises, including disinvestment and strategic sale, has been approved. We have to leverage the assets of CPSEs for generation of resources for investment in new projects." Stock Market Trading Tips

"We will encourage CPSEs to divest individual assets like land, manufacturing units, etc to release their asset value for making investment in new projects. The NITI Aayog will identify the CPSEs for strategic sale," he had said.Jaitley further said the government will adopt a comprehensive approach for efficient management of investment in CPSEs by addressing issues such as capital restructuring, dividend and bonus shares.The Department of Disinvestment has been re-named DIPAM.The government aims to collect Rs 56,500 crore through disinvestment in PSUs this fiscal, as per the Budget for 2016-17.Of the total budgeted proceeds, Rs 36,000 crore is estimated to come from minority stake sale in PSUs, and the remaining Rs 20,500 crore from strategic sale in both profit and loss-making companies.During 2015-16, the government could manage to meet less than half the Budget estimates at Rs 25,312 crore as against the target of Rs 69,500 crore.
It had raised around Rs 24,500 crore in 2014-15 by selling stake in public companies; about Rs 16,000 crore in 2013-14 and Rs 23,960 crore in 2012-13. It had raised around Rs 14,000 crore in 2011-12 and over Rs 22,100 crore in 2010-11. EoM Himansu Tiwari Astrologer Blog

ICICI Bank reduces its equity in overseas units

ICICI Bank, the country’s largest private sector lender, is looking at consolidating its position in the overseas market by shrinking its equity investment in its subsidiaries in the United Kingdom and Canada. The lender has significantly reduced its equity stake in both these subsidiaries from 11.8 per cent at the end of March 31, 2010, to 4.8 per cent at the end of FY16.At the end of the quarter ended March, in rupee terms, the net advances of the overseas branches also decreased by 0.3 per cent, whereas in US dollar terms, the net advances decreased six per cent. Sensex Astrology 

N S Kannan, executive director, ICICI Bank, in an analysts’ call, said the portfolio of overseas branches is expected to further decline in US dollar terms. The management said in line with its strategy of rationalising capital invested in overseas subsidiaries under its approach to capital allocation, during the January-March quarter  of 2016, the bank received capital repatriation of 87.1 million Canadian dollars (Rs 452 crore) from ICICI Bank Canada.In fact, both ICICI Bank UK and ICICI Bank Canada have repatriated total capital of $175 million (Rs 1,166 crore) and 242.1 million Canadian dollars (Rs 1,256 crore) respectively since March 2013. Despite this, both subsidiaries remain adequately capitalised with a capital adequacy ratio of 23.6 per cent at ICICI Bank Canada and 16.7 per cent at ICICI Bank UK respectively. At the end of FY16, ICICI Bank’s equity investment in Canada and UK stands at Rs 2,531 crore and Rs 1,805 crore, respectively.

Share Market Astrology
The management had earlier stated that the bank expects growth in the domestic market to be higher than the international market they would look at calibrating growth and capital allocation in their overseas subsidiaries.Net interest margin (NIM), a key indicator of a bank’s profitability, was a little subdued for international operations at 1.62 per cent in the fourth quarter of FY16, compared with 1.94 per cent in the preceding quarter. Nifty Trading Tips

“The Q4 number (NIM) was particularly impacted because of two reasons — one is the bond issue expenses; other is that in the short term, we have been staying liquid. So yes, of course, our endeavour would be definitely to improve the international margins, but overall we thought that we should focus a lot more on the asset quality improvement rather than getting too concerned about the margin at this stage,” Kannan said.In line with shrinking its overseas business in December 2014, the lender had also sold off its shareholding in ICICI Bank Eurasia (its Russian subsidiary) to Sovcombank. Jackpot Stocks Trading Tips

Six PSBs' bottom line hit as bad loans mount

Weighed down by stressed assets and provisions, the bottom line of six public sector banks came under pressure in the fourth quarter (Q4) of FY16. Five of them, including Bank of Baroda (BoB), posted a net loss while Union Bank of India reported a fall in net profit in the March 2016 quarter.
BoB, the largest among them, reported a loss of Rs 3,230 crore in the quarter under review compared with Rs 598 crore profit in the same period a year ago.Kolkata-based UCO Bank also posted a massive net loss of Rs 1,715 crore in Q4 of FY16, against a net profit of Rs 209 crore in the same quarter in FY15. Sequentially, the net loss swelled by 15 per cent from Rs 1,497 crore in Q3 of FY16.  Stock Market Trading Tips

Another lender that recorded loss in Q4 was Allahabad Bank, at Rs 581 crore, against Rs 203 crore profit reported in the same period a year ago. The loss was contained because it saw a tax write-back of Rs 1,033 crore in Q4, against a tax expense of Rs 175 crore.Mumbai-based Dena Bank posted a net loss of Rs 326 crore in Q4 against a net profit of Rs 56 crore in the year-ago period. Central Bank of India posted a net loss of Rs 898 crore in the quarter compared with a net profit of Rs 174 crore in Q4 of FY15. On the other hand, Union Bank managed to report a net profit of Rs 96 crore, though this was down 78 per cent from a year before. Himanshu Tiwari Astrologer Blog
The dent in the bottom line for all these lenders is the result of the increase in bad loans and higher provisioning for this. Non-performing assets (NPAs) in the quarters ended December 2015 and March 2016 also shot up as a result of the asset quality review initiated by the Reserve Bank of India (RBI). As a result of this exercise, lenders were asked to recognise bad assets on their balance sheet and make adequate provisioning over Q3 and Q4.BoB's provisions for NPAs grew three-fold four-fold, to Rs 4,880 crore compared to Rs 1,491 crore in the fourth quarter of FY15. Besides making regular provisions by RBI norms, it has set aside extra amounts (Rs 2,900 crore) to improve provision coverage ratio (PCR) from 52.7 in December 2015 to 60.09 per cent in March 2016. Financial Astrology
"This was done to strengthen the balance sheet and also feedback from analysts who treat private banks as its peer. It aspires to improve PCR to 68 per cent in FY17," said P S Jayakumar, BoB's managing director and CEO. In the same period, UCO Bank's provisioning jumped to Rs 2,345 crore. Allahabad Bank saw its provisioning almost quadruple to Rs 2,487 crore, from Rs 631 crore a year ago. Union Bank's rose 55 per cent to Rs 1,565 crore, from Rs 1,010 crore a year ago.
Personal Numerology

EXPAND Six PSBs' bottom line hit as bad loans mount

Weighed down by stressed assets and provisions, the bottom line of six public sector banks came under pressure in the fourth quarter (Q4) of FY16. Five of them, including Bank of Baroda (BoB), posted a net loss while Union Bank of India reported a fall in net profit in the March 2016 quarter.

BoB, the largest among them, reported a loss of Rs 3,230 crore in the quarter under review compared with Rs 598 crore profit in the same period a year ago Stock Market Trading Tips

Kolkata-based UCO Bank also posted a massive net loss of Rs 1,715 crore in Q4 of FY16, against a net profit of Rs 209 crore in the same quarter in FY15. Sequentially, the net loss swelled by 15 per cent from Rs 1,497 crore in Q3 of FY16.

Another lender that recorded loss in Q4 was Allahabad Bank, at Rs 581 crore, against Rs 203 crore profit reported in the same period a year ago. The loss was contained because it saw a tax write-back of Rs 1,033 crore in Q4, against a tax expense of Rs 175 crore.

Mumbai-based Dena Bank posted a net loss of Rs 326 crore in Q4 against a net profit of Rs 56 crore in the year-ago period. Central Bank of India posted a net loss of Rs 898 crore in the quarter compared with a net profit of Rs 174 crore in Q4 of FY15. On the other hand, Union Bank managed to report a net profit of Rs 96 crore, though this was down 78 per cent from a year before Himanshu Tiwari Astrologer Blog
The dent in the bottom line for all these lenders is the result of the increase in bad loans and higher provisioning for this. Non-performing assets (NPAs) in the quarters ended December 2015 and March 2016 also shot up as a result of the asset quality review initiated by the Reserve Bank of India (RBI). As a result of this exercise, lenders were asked to recognise bad assets on their balance sheet and make adequate provisioning over Q3 and Q4.

BoB's provisions for NPAs grew three-fold four-fold, to Rs 4,880 crore compared to Rs 1,491 crore in the fourth quarter of FY15. Besides making regular provisions by RBI norms, it has set aside extra amounts (Rs 2,900 crore) to improve provision coverage ratio (PCR) from 52.7 in December 2015 to 60.09 per cent in March 2016.

"This was done to strengthen the balance sheet and also feedback from analysts who treat private banks as its peer. It aspires to improve PCR to 68 per cent in FY17," said P S Jayakumar, BoB's managing director and CEO. In the same period, UCO Bank's provisioning jumped to Rs 2,345 crore. Allahabad Bank saw its provisioning almost quadruple to Rs 2,487 crore, from Rs 631 crore a year ago. Union Bank's rose 55 per cent to Rs 1,565 crore, from Rs 1,010 crore a year ago Commodity Market Astrology Tips
BoB's gross NPAs increased to almost 10 per cent of the total at the end of Q4, from 3.72 per cent in the same quarter a year before, and from 9.68 per cent in Q3. In absolute terms, gross NPAs increased to Rs 40,521 crore at the end of Q4, from Rs 16,261 crore a year ago.

UCO Bank's gross NPAs touched a record high of 15.43 per cent in Q4; it was 6.76 per cent in Q4 of FY15. Net NPAs were 9.09 per cent (4.3 per cent in Q4 of FY15). In absolute terms, Rs 20,908 crore in Q4, from Rs 10,265 crore a year before. Net NPAs were Rs 11,444 crore in Q4, up from Rs 6,331 crore in the same quarter of FY15.

UCO faces a more serious challenge than other lenders because if the net NPA of a bank is 10 per cent (and less than 15 per cent), some RBI-imposed restrictions set in. These include limitation in entering new lines of business, making dividend payments and increasing stake in subsidiaries, and a special drive to contain NPAs Jackpot Stocks Trading Tips

According to a senior official at UCO Bank, the increase in NPAs and net losses was on account of lower advances and higher provisioning, a part of balance sheet cleaning. "We think 2016-17 will be a year of consolidation. Moreover, our advances have come down significantly, which led to a higher percentage of NPAs. Our provisioning has also increased," said the official.

Similarly, the net NPAs of Allahabad Bank at the end of Q4 were 6.76 per cent (3.99 per cent in Q4 of FY15), while gross NPAs were 9.76 per cent (5.46 per cent in Q4 of FY15). Union Bank's NPAs rose to 8.7 per cent, from 4.96 per cent a year ago.

Despite these numbers, the managements are optimistic that FY17 will be better. Asset quality pressure has stabilised, according to Jayakumar of BoB. The lender expects to report growth and profitability in 2016-17. It expects to expand the loan book by 10 per cent in FY17. Loans stood at Rs 3,83,770 crore. This belief that the worst is behind us was also reiterated by Arun Tiwari, chairman of Union Bank. "The March 2017 results will be better on all quality parameters," he added Share Market Astrology

EXPAND Six PSBs' bottom line hit as bad loans mount

Weighed down by stressed assets and provisions, the bottom line of six public sector banks came under pressure in the fourth quarter (Q4) of FY16. Five of them, including Bank of Baroda (BoB), posted a net loss while Union Bank of India reported a fall in net profit in the March 2016 quarter.

BoB, the largest among them, reported a loss of Rs 3,230 crore in the quarter under review compared with Rs 598 crore profit in the same period a year ago Stock Market Trading Tips

Kolkata-based UCO Bank also posted a massive net loss of Rs 1,715 crore in Q4 of FY16, against a net profit of Rs 209 crore in the same quarter in FY15. Sequentially, the net loss swelled by 15 per cent from Rs 1,497 crore in Q3 of FY16.

Another lender that recorded loss in Q4 was Allahabad Bank, at Rs 581 crore, against Rs 203 crore profit reported in the same period a year ago. The loss was contained because it saw a tax write-back of Rs 1,033 crore in Q4, against a tax expense of Rs 175 crore.

Mumbai-based Dena Bank posted a net loss of Rs 326 crore in Q4 against a net profit of Rs 56 crore in the year-ago period. Central Bank of India posted a net loss of Rs 898 crore in the quarter compared with a net profit of Rs 174 crore in Q4 of FY15. On the other hand, Union Bank managed to report a net profit of Rs 96 crore, though this was down 78 per cent from a year before Himanshu Tiwari Astrologer Blog
The dent in the bottom line for all these lenders is the result of the increase in bad loans and higher provisioning for this. Non-performing assets (NPAs) in the quarters ended December 2015 and March 2016 also shot up as a result of the asset quality review initiated by the Reserve Bank of India (RBI). As a result of this exercise, lenders were asked to recognise bad assets on their balance sheet and make adequate provisioning over Q3 and Q4.

BoB's provisions for NPAs grew three-fold four-fold, to Rs 4,880 crore compared to Rs 1,491 crore in the fourth quarter of FY15. Besides making regular provisions by RBI norms, it has set aside extra amounts (Rs 2,900 crore) to improve provision coverage ratio (PCR) from 52.7 in December 2015 to 60.09 per cent in March 2016.

"This was done to strengthen the balance sheet and also feedback from analysts who treat private banks as its peer. It aspires to improve PCR to 68 per cent in FY17," said P S Jayakumar, BoB's managing director and CEO. In the same period, UCO Bank's provisioning jumped to Rs 2,345 crore. Allahabad Bank saw its provisioning almost quadruple to Rs 2,487 crore, from Rs 631 crore a year ago. Union Bank's rose 55 per cent to Rs 1,565 crore, from Rs 1,010 crore a year ago Commodity Market Astrology Tips
BoB's gross NPAs increased to almost 10 per cent of the total at the end of Q4, from 3.72 per cent in the same quarter a year before, and from 9.68 per cent in Q3. In absolute terms, gross NPAs increased to Rs 40,521 crore at the end of Q4, from Rs 16,261 crore a year ago.

UCO Bank's gross NPAs touched a record high of 15.43 per cent in Q4; it was 6.76 per cent in Q4 of FY15. Net NPAs were 9.09 per cent (4.3 per cent in Q4 of FY15). In absolute terms, Rs 20,908 crore in Q4, from Rs 10,265 crore a year before. Net NPAs were Rs 11,444 crore in Q4, up from Rs 6,331 crore in the same quarter of FY15.

UCO faces a more serious challenge than other lenders because if the net NPA of a bank is 10 per cent (and less than 15 per cent), some RBI-imposed restrictions set in. These include limitation in entering new lines of business, making dividend payments and increasing stake in subsidiaries, and a special drive to contain NPAs Jackpot Stocks Trading Tips

According to a senior official at UCO Bank, the increase in NPAs and net losses was on account of lower advances and higher provisioning, a part of balance sheet cleaning. "We think 2016-17 will be a year of consolidation. Moreover, our advances have come down significantly, which led to a higher percentage of NPAs. Our provisioning has also increased," said the official.

Similarly, the net NPAs of Allahabad Bank at the end of Q4 were 6.76 per cent (3.99 per cent in Q4 of FY15), while gross NPAs were 9.76 per cent (5.46 per cent in Q4 of FY15). Union Bank's NPAs rose to 8.7 per cent, from 4.96 per cent a year ago.

Despite these numbers, the managements are optimistic that FY17 will be better. Asset quality pressure has stabilised, according to Jayakumar of BoB. The lender expects to report growth and profitability in 2016-17. It expects to expand the loan book by 10 per cent in FY17. Loans stood at Rs 3,83,770 crore. This belief that the worst is behind us was also reiterated by Arun Tiwari, chairman of Union Bank. "The March 2017 results will be better on all quality parameters," he added Share Market Astrology

Rupee falls for second day, down 15 paise

Extending its losses for the second straight session, therupee on Friday fell by another 15 paise to 66.77 a dollar on sustained demand for the US currency from banks and importers on the back of higher greenback overseas amidst sharp fall in domestic equities Stock Market Trading Tips

The rupee resumed lower at 66.78 per dollar as against the yesterday's closing level of 66.62 at the Interbank Foreign Exchange market and moved down further to 66.83 before finishing at 66.77, showing a loss of 15 paise or 0.23 per cent. The rupee has dropped by 21 paise or 0.32 per cent in the last two days.

The domestic currency hovered in a range of 66.71 and 66.83 per dollar during the day. In the global market, the dollar traded moderately higher on Thursday against euro and yen, extending a recent streak of gains after hawkish comments from several Federal Reserve officials. However, the dollar turned slightly lower against yen during the late Asian trade on Friday, as investors awaited US retail sales data due later in the day. The US currency fell into a tailspin recently, touching an 18-month low of ¥105.55 on May 3 following the Bank of Japan's inaction Himanshu Tiwari Astrologer Blog

The market benchmark Sensex fell by 301 points to close at 25,489.57 on fresh selling pressure from operators on speculation that the Reserve Bank would restrain itself from cutting rates during its policy review next month following rise in inflation and dip in industrial output growth.

Bad loan situation not alarming: Rai

Banks Board Bureau (BBB) chairman Vinod Rai said on Friday that the bad loan situation in the country’s banking system is not alarming and public sector banks have their strategies in place to tackle the stressed asset woes.“All of them are suffering from stressed assets. They are across infrastructure sectors. But, each bank has a strategy to resolve which would be different from every other bank. That is what we discussed,” Rai, a former Comptroller and Auditor General, told reporters after a day-long meeting of the BBB with heads of state-owned banks in New Delhi on Friday.Asked if the non-performing asset (NPA) situation of banks has reached an alarming level, he replied in the negative, saying: “Banks will come out of this.” Commodity Market Astrology Tips

On the need for another large asset reconstruction company (ARC) in India, he said: “The issue was not raised. There are already three-four ARCs that exist here. There is no need to create another ARC.”According to Rai, consolidation of banks is a ‘secondary’ one and that bad loans and vacant management positions are a priority. “Right now, it is a question of trying to resolve the bad assets and ensuring vacancies get filled up. Consolidation and all other issues are being discussed. It is a work in progress.”  Stock Market Trading Tips

Gross NPAs of public sector banks rose from Rs 2.67 lakh crore in March 2015 to Rs 3.62 lakh crore in December 2015. Asked if state-owned banks would need more than Rs 25,000 crore capital infusion budgeted for the current financial year, Rai said it the government would take a decision after the banks declare their fourth quarter results. 
 
Rai met the heads of a number of public sector banks, including State Bank of India chief Arundhati Bhattacharya. “We discussed standard things like HR issues, board vacancies, NPAs, etc,” Bhattacharya said after the meeting.

As of December 2015, SBI's portfolio quality declined with gross NPAs at 5.10 per cent of gross advances against 4.90 per cent a year ago. The gross NPAs in absolute terms, which represent a portion of bad loans, stood at Rs 72,792 crore at the end of December 2015 for India’s largest lender, up from Rs 61,991 crore in the year-ago period.  Financial Astrology
On the proposed dilution of the government’s stake in IDBI Bank, Rai said the disinvestment could happen in less than six months but added it was not an issue under BBB’s domain.

The government had in December 2015 given approval to IDBI Bank for raising Rs 3,771 crore during the current year, by way of qualified institutional placement, a move which will dilute its holding by 26 per cent in the lender. The Centre’s holding in the bank stands at 80.16 per cent.

The BBB was constituted earlier this calendar year to help the government select heads of public sector banks and financial institutions, and to assist banks in developing strategies with regard to capital raising and consolidation.

Besides Rai as chairman, the BBB has three ex-officio members and an equal number of expert members which include ICICI Bank's former joint managing director H N Sinor, Bank of Baroda's former chairman and managing director Anil K Khandelwal and rating agency Crisil’s former chief Rupa Kudva. Personal Numerology
BBB’s ex-officio members are Secretary, Department of Public Enterprises, Financial Services Secretary and deputy governor of the Reserve Bank of India.

Supreme Court admits tax appeal against Vodafone

The Supreme Court on Friday admitted an appeal by the Income Tax Department against a Bombay High Court order rejecting its demand to raise tax on Vodafone for a Rs 8,500-crore deal with Hutchison.The bench, presided over by Justice Anil Dave, issued a notice to the company.
The Bombay High Court had in April set aside an order of the Income Tax Appellate Tribunal, which had ruled the tax department had the power to raise a tax demand on Vodafone over the sale of its call centre business to Hutchison Whampoa Properties in 2007-08 and assignment of a call option to Vodafone.  Share Market Astrology

The high court had held that surrender of option rights was not a transfer under the Income Tax Act. The question involved was the taxability of capital gains arising from the surrender of call option rights, revenue authorities said. The ruling could affect several other cases involving Shell, IBM and Nokia.This case is different from another one in which the Central Board of Direct Taxes had decided not to appeal against a high court ruling, rejecting a claim that Vodafone priced the shares of its stakes in its Indian companies sold to other arms of Vodafone in a manner that would avoid taxes. Nifty Trading Tips

The apex court is not likely to take up the case this month because it is closing for the summer vacation and will re-open at the end of June.Amit Maheshwari, managing partner of Ashok Maheshwary and Associates, said the move by the tax department would dampen investor sentiment. "Foreign investors are not seeing big names like Vodafone and Cairn getting a reprieve from litigation," he said.Finance Minister Arun Jaitley had said in New York recently the case had nothing to do with retrospective tax and no company was immune from paying taxes. He had said important questions of law went to the Supreme Court.Vodafone is embroiled in arbitration with the government over a retrospective amendment to the Income Tax Act. The latest budget had offered the company the option to come out of arbitration and pay tax without interest and penalty.
Vodafone did not respond to queries by Business Standard.  Jackpot Stocks Trading Tips

The outcome of the assembly polls in five states will be the key factor for the markets in the week ahead along with the next batch of fourth quarter earnings and data on April wholesale price inflation.In the week to May 13, markets snapped two-week losing streak to end higher after the government unleashed two major reforms, the amended India-Mauritius Double Taxation Avoidance Agreement (DTAA) and the Insolvency and Bankruptcy Code Bill.The S&P BSE Sensex ended up 261 points at 25,490 and the Nifty50 ended up 81 points at 7,815. In the broader market, the BSE Midcap and Smallcap indices ended up 1.7%-2%. 
The Rajya Sabha passsed the Insolvency and Bankruptcy Code Bill, enabling a single law to deal with distressed companies, their promoters, creditors, employees and other stakeholders for the first time in India.  Stock Market Trading Tips

As per the amended tax treaty with Mauritius, India has gained the right to tax capital gains arising in Mauritius from sale of shares acquired on or after April 1, 2017, in Indian companies.
India's industrial output rose by 0.1 per cent in March, largely losing the momentum generated in February when it had risen by two per cent, after a three-month fall.Consumer Price Index-based inflation (CPI) for the month of April was a higher than expected 5.39 per cent, on the back of a large jump in food prices, snapping a three-month downtrend.  Himanshu Tiwari Astrologer Blog

"The week has been exciting with the earnings season continuing to provide positive surprises and the number of domestic macro events affecting the markets both in the short and medium to long-term. The modified Mauritius tax treaty was long expected and should not have an incrementally negative impact on capital inflows since the adequate level of
grandfathering provided. We believe the Bankruptcy Bill will have a long term positive impact of doing business in India particularly for financial intermediaries at the trough of the credit cycle in the long term," said Tirthankar Patnaik, India Strategist, Mizuho Bank.Further, Indian banks would have to make higher provisions for lending to large corporate borrowers above a certain level from next financial year, according to a proposal by the Reserve Bank of India. Financial Astrology

Gains during the week were led by banks after the passage of the Bankruptcy Bill which allows early identification of financial distress and help faster recovery of dues. Axis Bank was the top Sensex gainer up 6% followed by ICICI Bank, HDFC Bank and SBI.Asian Paints ended up 6% after the company reported 20% year on year (YoY) jump in its consolidated net profit at Rs 409 crore for the quarter ended March 31, 2016 (Q4FY16), on the back of healthy operational income.
FMCG major Hindustan Unilever ended down 2.6% after volume growth stood at 4% in Q4. This number lagged Street expectations of five-seven per cent and was HUL's lowest volume growth in the past five quarters.  Personal Numerology

Dr Reddy's Laboratories gained 1.5%. The drug major reported an 85.6 per cent fall in consolidated net profit to Rs 74.6 crore for the quarter ended March. The reasons include provisioning to write down receivables from Venezuela and increased tax expenses. However, the management guided for an uptick in revenues during the second half of the current fiscal.
IT majors TCS and Infosys were also among the top Sensex gainers during the week with gains of over 2% each.Sensex Astrology 

Markets trim early losses; Nifty reclaims 7,800

Markets came off their early lows and were trading with marginal losses. India will start imposing capital gains tax on investments from Mauritius starting next year.At 9:30am, the S&P BSE Sensex was down 164 points or 0.6% at 25,608 and the Nifty50 was down 49 points or 0.6% at 7,839  Stock Market Trading Tips
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"Despite Monday’s vertical rise, yesterday’s commentary did discuss oscillators’ signals calling for either a short turn lower or a deeper correction. The upper extremity of the 7885-7939 discussed yesterday’s almost held to perfection, and a turn lower there of is anticipated today.  While early bias is likely to be negative, volatility is likely to step up later on, as long as inside the 7540-7780 region, which is also seen as a region for accumulation from a medium term – uptrend point of view," Geojit BNP Paribas Financial Services said in a technical note.    Himanshu Tiwari Astrologer Blog

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Foreign institutional investors were net buyers in equities to the tune of Rs 329 crore, as per provisional stock exchange data.  Financial Astrology
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STOCKS 
Tata Motors extended losses and was down 2% on the back of moderating domestic sales.
HDFC Bank was down nearly 1%. Reports suggest that the private lender wants to accelerate its growth in the credit card segment and capture further market share by aiming to offer 0.4 million credit cards every month, almost double of the number they issue currently. HDFC was down 0.9%.
Among others, ICICI Bank and SBI were down nearly 1% each.
Other Sensex losers include ITC and Bharti Airtel among others. Personal Numerology

Tata Steel gains as UK business gets seven proposals

Tata Steel has gained 2.5% to Rs 337 on the BSE in an otherwise range bound market after Tata Steel Europe announced that it has received seven expressions of interest for Tata Steel’s UK business which have been immediately taken forward to the next stage of the sale process.
Sensex Astrology 
“In addition, Tata Steel Europe is clarifying outstanding points with a number of other parties who have submitted an expression of interest. The remaining parties who submitted expressions of interest have been thanked for their participation in the process but informed that their expressions would not be taken forward currently,” Tata Steel said in a news release. Share Market Astrology


In the next phase of the sales process the progressing interested parties will be given access to further business information and management team presentations in order for them to rapidly progress their interest to a binding stage, it added.At 10:24 am, the stock was up 1.7% at Rs 335 on the BSE as compared to 0.06% decline in the S&P BSE Sensex. A combined 4.06 million shares changed hands on the counter on the BSE and NSE.  Nifty Trading Tips
 

Three NBFCs to bet on as CV sales recover

With many quarters of earnings disappointment on account of weak net interest income (NII) growth or elevated non-performing assets (NPAs), stocks such as Shriram Transport, M&M Finance and Cholamandalam Finance have remained under pressure. Now, with themonsoon likely to be better than average and sales ofcommercial vehicles (CVs) showing steadfast signs of improvement, these stocks gained between 14 and 30 per cent in the past month. Their March quarter (Q4) results, exceeding the Street’s expectations, has also fuelled their stock performance, regenerating interest in these.For instance, Shriram Transport, market leader in the CV lending segment, saw its NII for Q4 expand to Rs 1,273 crore, up 34 per cent over a year. However higher provisioning (Rs 1,073 crore, up 33 per cent) dented net profit to Rs 143 crore, down 55 per cent. However, as this was due to consolidation of its commercial equipment business, analysts regard it as a one-off. In fact, the 23 per cent year's growth in assets under management or AUM (Rs 72,750 crore), and positive surprise from the share of new CVs expanding from eight per cent a year before to 10 per cent, offset the decline in profit. Used vehicles, the rest of its business, grew 21 per cent over a year. AUMs in FY17 are expected to grow by 15 per cent, contingent on the monsoon. 
Himanshu Tiwari Astrologer Blog

As a result, analysts at Jefferies have raised their earnings per share (EPS) target for FY17-18 by 100–200 basis points (bps), as Shriram Transport should benefit from strong CV credit demand and lower borrowing cost.Likewise for M&M Financial Services. After a watered-down December ‘15 quarter, NII and net profit posted 16 per cent and 12 per cent growth over a year in Q4. Elevated provisioning for bad loans, major pain point for many quarters, showed remarkable improvement, down 23 per cent year-on-year to Rs 116 crore. Also, with fairly high levels of repossession and collection efforts in place, analysts at Credit Suisse note the provision coverage for M&M Financial remains intact at 62 per cent. Though loans grew 11 per cent over a year (versus 18-20 per cent for peers), Credit Suisse has, with the asset quality improving, recently upgraded its EPS target for FY17 by 300 bps to Rs 23.6.  Financial Astrology

In the case of Cholamandalam Finance, Phillips Capital has increased its EPS estimate for FY17 by 350 bps to Rs 48, on the back of strong NII, net profit and disbursements in the March quarter. While NII at Rs 600 crore grew 33 per cent over a year, net profit expanded 42 per cent to Rs 192 crore. Vehicle finance (mainly CVs) accounts for 67 per cent of Cholamandalam’s assets. In FY17, the company expects to maintain 20 per cent growth in advances, with higher focus on heavy CVs.
A word of caution, though. While the asset quality might improve in FY17, with an above-average monsoon, the crunching of provisioning norms from 120 and 150 days per dues to 90 dpd by FY17 (or FY18 in the case of Shriram Transport) could put some stress on asset quality. But, as this is a structural change, the Street is not too wary  
. Personal Numerology

Sensex earnings may grow 23% or more in FY17 due to low base: Raamdeo Agrawal

We are positive on FY17 because the low base is already formed. One of the reasons earnings were getting deflated every quarter was that commodity companies were hurting as commodity prices were falling every quarter. My sense is the base is already formed as far as commodity prices are concerned.
Thus, commodity companies in the power sector, the likes of Tata Steel, ONGC (Oil and Natural Gas Corporation) and Oil India might actually do better from here on. The base is so low that Sensex companies may report 23 per cent or higher growth in FY17. Also, falling interest rates will slowly start having some sobering impact on interest costs and aid earnings.The real upgrades will start after monsoon. If monsoon turns out as predicted, it will have a salutary effect this time. Jackpot Stocks Trading Tips
What were your key takeaways from your visit to 2016 Berkshire Hathaway annual meeting at Omaha (US) this year?

I met 15-20 big clients before the AGM (annual general meeting) and realised there is a lot of appetite for Indian stocks. But, unfortunately, foreign investors have actually not made much money here in the past. So they are trying to time the market; they are trying to see some more data; a firm trend in recovery before making investments. I think they are in a wait-and-watch mode right now. They need some breakouts such as good monsoon, industrial recovery.   Commodity Market Astrology Tips

Which sectors you are bullish on?

We like select companies in IT (information technology), pharmaceuticals, private sector banking, NBFC (non-banking financial companies) segment, and FMCG (fast-moving consumer goods) category. We also prefer some monopolistic companies such as Bosch, InterGlobe Aviation, and oil marketing companies. Mortgage (home loan) has a long future and is one of the best growth stories in India.So we like HDFC (Housing Development Finance Corporation) despite the fact that its growth has slowed partly due to its large size. Currently, IT and pharma form 30 per cent of our portfolio, while private banks and NBFCs form 25-30 per cent. Automobile stocks contribute 20-25 per cent, with consumers and aviation being the rest. That covers 18-20 stocks. We like Britannia, Maruti Suzuki, Eicher and Max India, among others. We are staying away from highly-leveraged companies.   Stock Market Trading Tips

Markets trade flat; metal shares lose sheen

Benchmark indices have open on a flat note amid mixed trend among global markets, along with profit booking after witnessing a strong rally yesterday.On Monday, markets finished the session on a robust note on fresh buying by participants amid strength in the European equities. A weak jobs data dampened prospects for a Federal Reserve interest-rate hike next month further boosting the sentiment. Recent string of positive corporate results also raised tentative hopes about an improving domestic economy. Share Market Astrology

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By 9:27 am, the S&P BSE Sensex inched up 3 points to trade at 25,692 and the Nifty50 dipped 2 points at 7,864. Broader markets are outperforming the benchmark indices- BSE Midcap and Smallcap indices are up 0.2%-0.3%."Yesterday’s push above 7,800 earlier in the day triggered short covering that has scaled the 7,900 mark. However oscillators have not yet aligned well with this move suggesting that either a short turn lower or a deeper correction is to be anticipated. To this end, the early range today is likely to be the 7,885-7,939. While these extremities can be expected to hold initial tests, a breakout will not be surprising, but need not be followed by directional moves though", adds Geojit BNP Paribas in a technical note. Nifty Trading Tips

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Among overseas markets, Asian shares got off to a weak start on Tuesday, pressured by weaker crude oil prices, though Japanese shares got a tailwind as the dollar stood tall against the yen.MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.3 percent in early trading. Wall Street put in a mixed performance overnight, undercut by tumbling oil prices amid expectations that US crude inventories would again build to record highs. Japan's Nikkei stock index added 0.7%.Back home, foreign portfolio investors (FPIs) bought shares worth a net Rs 224.40 crore yesterday, 9 May 2016, as per provisional data released by the stock exchanges. Jackpot Stocks Trading Tips