Companies and Markets

Companies & Markets

Banks’ joust with RBI on new NPA framework reaches House panel

A Parliamentary panel on Tuesday met Reserve Bank governor Urjit Patel (in pic) and top bankers to discuss the revised NPA framework. Lenders are seeking respite from the new bad loan norms that threaten to raise their NPA levels which would require higher provisioning. They say the new guidelines also disrupt many other resolutions process of bad loans.

The meeting came in the backdrop of banks having already written to the Reserve Bank of India (RBI) seeking changes in the new framework of NPA recognition and classification.

Govt cleaning up banking sector, says DFS secretary

The government is in the process of cleaning up the entire banking sector with various reforms currently underway, which will prove beneficial for the system in the long run, a senior finance ministry official has said. “This year is the year of cleaning, in the sense that NPAs were recognised transparently, provisioning was made, exit route through NCLT provided, promoters debarred — you can’t have the cake and eat it too — and major reforms introduced,” Rajiv Kumar, secretary, department of financial services, told FC in an exclusive interview.

Operational creditors to Binani Cement move SC

The Binani Cement insolvency case has taken a new twist with operational creditors of the debt-ridden firm filing a writ petition in the Supreme Court seeking declaration of the Insolvency and Bankruptcy Code (IBC) provisions with respect of their rights ‘unconstitutional.’

Nothing more than a relief rally

The domestic market gained on Monday as trade war fears retreated across markers. The Sensex rose 161.57 points, or 0.48 per cent, to settle at 33,788, while the Nifty-50 rose 47.75 points, or 0.46 per cent to close at 10,379. The BSE Mid-Cap and Small-Cap indices underperformed the Sensex, making marginal gains.

The market breadth was positive as 1,654 shares rose and 1,069 shares fell.

Among the sectoral indices, the BSE Oil & Gas (up 1.52 per cent), Consumer Durables (1.7) and FMCG (1.15) outperformed the Sensex.

Technical view

Bourses asked to give co-location services to small players

In order to facilitate small and medium-sized trading members, Sebi on Monday asked stock exchanges to introduce ‘managed co-location services', wherein space will be provided to vendors along with technical knowhow and other expertise.

Lemon Tree rises 28% on market debut

Lemon Tree Hotels made a strong debut on the bourses on Monday, with its shares rising 27.86 per cent. After listing at a 10 per cent premium on both BSE and NSE at Rs 61.60 against the issue price of Rs 56, the shares touched an intra-day high of Rs 73.90. Finally, the Lemon Tree shares closed at 71.60, up 27.86 per cent, on both the bourses.

Huge gap between claim and sum assured

Similar to low penetration, underinsurance is an equally daunting issue in healthcare. Insurance players are witnessing multi-fold gap between the claims made by the customers and their sum assured. 

A Bajaj Allianz General Insurance analysis found that the claim cost was multiple times higher than the sum assured in cases both common and life-threatening diseases.

Creditor drags BHEL to NCLT to recover over Rs 1 crore due

Days after an Air India ex-pilot sough insolvency proceedings against the national carrier in the National Company Law Tribunal (NCLT), another state undertaking, Bharat Heavy Electricals (BHEL), has been is dragged to the NCLT by an operational creditor for dues of a little over Rs 1 crore.

Chanda’s fate hangs in balance

The board of ICICI Bank, which less than two weeks earlier expressed full faith in chief executive officer Chanda Kochhar, is divided over whether to ask her to step down as federal authorities investigate allegations of impropriety over loans made to Videocon group, people with knowledge of the matter said.

Early exit for Axis Bank’s Shikha

Indian women athletes are hogging the limelight at Commonwealth Games. For the leading ladies in the banking sector, it is disrepute. The board of private sector lender Axis Bank on Monday curtailed the fourth term of its CEO and MD Shikha Sharma to seven months. On other hand, the board of ICICI Bank is divided over whether to ask its CEO and MD Chanda Kochhar, facing allegations of impropriety, to step down. The Axis Bank board’s decision came following an unusual request from Sharma that she be relieved on December 2018, 29 months ahead of the scheduled term.