Mumbai

Rupee, oil to impact earnings

Rupee depreciation and the flare-up in oil prices would be dominant themes in the second quarter corporate earnings, possibly distorting projections made by the analysts earlier.

The rupee weakened to Rs 72.51 a dollar on September 30, 2018, the last day of the quarter, from Rs 68.46 to the dollar on June 30, 2018, the end of the first quarter, marking a 5.91-per cent fall.

Brent crude oil price, in the same three months, moved up 6.80 per cent from $77.45 a barrel to $82.77 a barrel.

IL&FS loan account remains standard: Bank of Baroda

Bank of Baroda on Tuesday said it's loan account to debt-laden Infrastructure Leasing and Financing Services (IL&FS) continues to remain standard at present. It said it continues to lend to non-banking financial companies (NBFCs) and housing finance companies (HFCs).

40-60% haircut to help resolve Rs 1 lakh cr of power debt

A haircut of 40-60 per cent along with a few financial safeguards can help in resolving nearly Rs 1 lakh crore of stressed power loans, a report by Crisil said on Tuesday.

The analysis is based on the rating agency's assessment of 16,000 megawatt (mw) power assets, which account for nearly two-thirds of stressed and operational coal-based capacities.

“A 40-60 per cent haircut, along with financial safeguards, can resolve as much as Rs 1 lakh crore of debt stuck in coal-based power projects and enhance their viability on a sustained basis,” the agency said in the report.

Oil stocks rise, but analysts see hit to OMC bottom line in Q3

Oil marketing companies (OMCs) may take a hit in their profit in the third quarter as the government’s fuel price cut would partly get financed from their pockets.

As the poll season has begun, brokerages expect further government interventions if oil prices keep rising. It may ask OMCs to cut their margins further. This could lead to days of uncertainty over pricing of auto fuels and hence unpredictability of earnings for the OMCs, a domestic brokerage house said.

Sovereign gold bond scheme to open on Oct 15

The government's sovereign gold bond scheme will be open for subscription from mid-October, running up to five tranches till February, RBI said on Monday.

The sovereign gold bon­ds would be issued every month from October 2018 to February 2019 as per the calendar specified, the RBI said in a release.

The bonds would be sold through banks, Stock Holding Corporation of India (SHCIL), post offices, and stock exchanges – NSE and BSE. The first tranche of the scheme would be open for subscription from on October 15.

NO TRUCE IN SIGHT BETWEEN ESTRANGED YES BANK PROMOTERS

Even as Yes Bank remains in a state of flux after the RBI refused extension to chief executive Rana Kapoor, it now emerges that Madhu Kapur, widow of co-founder Ashok Kapur, will have a decisive say in the appointment of new CEO and whole-time directors on board.

Amid speculation of estranged promoters going for an out-of-court settlement, sources close to Madhu Kapur said so far no meeting has taken place between Rana Kapoor and Madhu Kapur.

IPOs feel the heat

The market meltdown is spilling over to the primary market. The great Indian IPO rush has stalled and companies which had been readying their initial public offerings would now have to either defer their issues or take a price cut to see their offerings through.

The lull in the IPO market would also hinder the government’s disinvestments target and upset its fiscal math.

MSP hike can push headline inflation up 0.35%, says RBI

The hike in minimum support prices (MSP) for kharif crop announced in July by the government was “well below” the ones effected under the previous UPA governments in 2008-09 and 2012-13, the Reserve Bank of India (RBI) has said.

The government had announced the MSP hike in July for kharif (summer) crop, following a bu­dget announcement affirming a 50 per cent mark up to farmers over the cost of produce.

Yes Bank to shortlist 3 names to find Rana Kapoor’s successor

Private lender Yes Bank aims to shortlist three names as potential candidates to succeed Rana Kapoor, the current managing director and chief executive officer of the bank by month end, which would then be submitted to the Reserve Bank of India (RBI) for its approval by end of November or first week of December.

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