Posted by Yogesh on Monday, 13 October, 2008
MUMBAI: Reeling under a financial crisis, both Kingfisher Airlines as well as Jet Airways on Monday broached a possible alliance to overcome their problems largely generated by mounting fuel bills.
Kingfisher chief Vijay Mallya walked into the corporate head office of Jet at S M Centre in Andheri to discuss the issues of common interest with Naresh Goyal, as both the airlines are losing an estimated up to Rs 20 crore a day.
When contacted, a Jet spokesperson said: “Yes, Dr Mallya and Mr Goyal have met today.” Read the rest of this entry »
Posted in Corporate News | Tagged: Jet, Kingfisher | Leave a Comment »
Posted by Yogesh on Monday, 13 October, 2008
NEW DELHI: Applying for and getting passports will be as easy as 1-2-3, with the government today awarding a Rs 1,000 crore e-project to software company TCS for issuing the travel document to citizens in just three days.
Passports applied for under the ‘tatkal’ (instant) scheme would be delivered in just one day.
This is Tata Consultancy Services’ second largest e-governance deal with the government, which aims to nearly quadruple the number of passport counters to 1,250 from the current 345 and bring the entire process of issuing the travel document online. Read the rest of this entry »
Posted in Technology | Tagged: Passport, TCS | Leave a Comment »
Posted by Yogesh on Monday, 13 October, 2008
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When the markets were in shambles on September 29 the ICICI Bank stock was down 11.97% on rumours that the bank’s UK operations had exposure to the bankrupt Lehman Brothers. The bank’s UK subsidiary has an exposure of around USD 80 million, against which there are provisions of USD 12 million. |
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To stem the fall in the stock on September 30, 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. About 98% of the bank’s UK subsidiary investments 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.” (See: Stemming the fall)
Earlier on the same day, the Reserve Bank clarified that ICICI Bank and its subsidiaries abroad were well and sufficiently capitalized. “The bank has enough liquidity to meet the requirements of our depositors.” Post-these two statements, the stock rallied and ended the day up 8.56%.
Between October 1 and October 8, the stocks fell 15.89%. However, the Sensex fell just 13.23% in the period under review.
But the pain was not over yet. On October 10, the stock touched a 52-week low and ended around 20-21% lower. At one point, it was trading 26% down. The downfall was fuelled by alleged rumours that the bank’s joint venture with Prudential was in danger. There were also rumours of a stake sale by promoters, and fall in deposits.
In its usual fire-fighting mode, Kochhar said the bank had adequate rupee and global liquidity of Rs 12,000 crore. “We have no international investments, only loans on our balance sheet. Our exposure to the UK market is very small given our size and profitability. NPAs stand at 0% in the UK subsidiary. Over 90% investments in UK market are to companies with at least ‘A’ rating.” She added that the bank has not seen a scale-down in deposit growth. (See: Further reassurance)
On October 13, rating agencies like Standard & Poor’s and Moody’s said the bank’s credit fundamentals continued to remain strong. Both agencies felt that the overseas exposure could be easily absorbed by the bank. (See: Moody’s, S&P statements)
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To further reassure investors post the October 10 fall, KV Kamath, Managing Director and CEO, ICICI Bank, said the bank is very well-capitalised at 150% of the requirement. He added that the bank is among the soundest financial institutions in the world. “The anatomy of rumours suggests they are intended to destabilize the bank. The bank will continue to report malicious messages to the regulators, and that rumours are being spread by a market intermediary, and not by any bank. We can see a clear patter of disinformation which is a cause for worry. Rumours are playing negatively on the sentiment of people.” He clarified that there has not been any drastic decline in deposits in the last three weeks. (See: Fire-fighting mode)
Post these reassurances, the stock surged 17% and was the biggest gainer on the Sensex.
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Source Money Control
Posted in Corporate News | Tagged: ICICI Bank | 2 Comments »
Posted by Yogesh on Monday, 13 October, 2008
KV Kamath
CEO and MD
ICICI Bank Ltd.
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Speaking candidly about the problems ICICI has been facing in recent weeks, CEO and MD KV Kamath said he was confident that the worst was over, with RBI injecting enough fresh liquidity in the system. The bank was well capitalised and this had been certified by international rating agencies. As for constant speculation about the bank’s health, he said that he takes it with a lot of stoicism now.
You are clearly battling a certain perception about ICICI these past few weeks. Is the worst over? I think I need to put this perception about ICICI in context. Specifically, it is about the health of our overseas subsidiaries in Britain and Canada. These subsidiaries have a capital adequacy ratio of over 17% of lending and other assets. You can’t have a safer capitalisation. The capital requirement in India is 9% of risk-weighted assets. Both Moodys’ and Standard and Poor’s have recognised the safety of our credit profile. The second context is the overall liquidity crunch in the domestic financial system as a whole. RBI is addressing that. Here too ICICI’s capitalisation is more than adequate. The central bank has done the right thing by easing CRR requirements by 150 basis points. For now, this additional liquidity should help build confidence. I am confident we are heading towards normalcy fast. The worst is over.
Some reports hinted that ICICI had borrowed short-term funds at 20% from the CD market? Well, at the outset, I have to say any bank’s borrowing or lending policy cannot be put in the public domain. So I won’t comment on that. All I can say is the overnight call money rate was ruling at 20% plus. So any bank that wants to borrow overnight will have to pay that rate. Nothing unusual about it. As for the safety of the Indian banking system, we have the most cautious and regulated financial sector in the world. Tell me any other country where banks are obliged to keep 34% of their total deposits in safe government bonds and cash. This is the foundation of the Indian banking system, established by RBI. This is a huge insulation from any shock that might come to the system. I am pained at the manner, in which Indian banks is being painted with the same brush as those in the West. There is also a perception that ICICI, and indeed other banks, may have got into serious asset-liability mismatches by lending for much longer periods after borrowing short term. In high-liquidity scenario, it was easier to constantly roll over short-term borrowing for long-term lending. All I can tell you is that Indian banks have to strictly adhere to asset liability management norms set by RBI.
Has RBI and the finance ministry done enough to ease the liquidity crunch? Or can it do more? For now, the liquidity injection through CRR cuts will ease the situation. I must also add that RBI and the finance ministry have shown a lot of urgency and have done a commendable job in allaying apprehensions about the liquidity crisis.
Do you feel upset at the constant rumours about ICICI’s operations. Even in normal times, there had been a perception that ICICI was an overly aggressive bank. I don’t get angered because we at the ICICI see ourselves as change agents. We have come so far and built a successful business after facing many challenges. We will face this one too. I admire my team for the way it has faced up to the challenges of these past few weeks. I wouldn’t call ICICI aggressive. If you are a change agent you work differently and think out of the box. But probably there is a flipside to being change agents. I take all criticism with a measure of stoicism.
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Source Economic Times
Posted in Corporate News | Tagged: ICICI Bank | Leave a Comment »
Posted by Yogesh on Monday, 13 October, 2008
The BSE SENSEX is not only scientifically designed but also based on globally accepted construction and review methodology. First compiled in 1986, SENSEX is a basket of 30 constituent stocks representing a sample of large, liquid and representative companies. The base year of SENSEX is 1978-79 and the base value is 100. The index is widely reported in both domestic and international markets through print as well as electronic media.
| SENSEX Constituents: |
Composition revised from 28/07/2008 |
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Free-Float Adjustment Factor revised from 08/07/2008 |
| Code |
Name |
Sector |
Adj. Factor |
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| 500410 |
ACC Ltd. |
Housing Related |
0.60 |
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| 500103 |
Bharat Heavy Electricals Ltd. |
Capital Goods |
0.35 |
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| 532454 |
Bharti Airtel Ltd. |
Telecom |
0.35 |
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| 532868 |
DLF Ltd. |
Housing Related |
0.15 |
|
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| 500300 |
Grasim Industries Ltd. |
Diversified |
0.75 |
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| 500010 |
HDFC |
Finance |
0.85 |
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| 500180 |
HDFC Bank Ltd. |
Finance |
0.85 |
|
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| 500440 |
Hindalco Industries Ltd. |
Metal,Metal Products & Mining |
0.70 |
|
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| 500696 |
Hindustan Unilever Ltd. |
FMCG |
0.50 |
|
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| 532174 |
ICICI Bank Ltd. |
Finance |
1.00 |
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| 500209 |
Infosys Technologies Ltd. |
Information Technology |
0.85 |
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| 500875 |
ITC Ltd. |
FMCG |
0.70 |
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| 532532 |
Jaiprakash Associates Ltd. |
Housing Related |
0.60 |
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| 500510 |
Larsen & Toubro Limited |
Capital Goods |
0.90 |
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| 500520 |
Mahindra & Mahindra Ltd. |
Transport Equipments |
0.80 |
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| 532500 |
Maruti Suzuki India Ltd. |
Transport Equipments |
0.50 |
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| 532555 |
NTPC Ltd. |
Power |
0.15 |
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| 500312 |
ONGC Ltd. |
Oil & Gas |
0.20 |
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| 500359 |
Ranbaxy Laboratories Ltd. |
Healthcare |
0.70 |
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| 532712 |
Reliance Communications Limited |
Telecom |
0.35 |
|
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| 500325 |
Reliance Industries Ltd. |
Oil & Gas |
0.50 |
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| 500390 |
Reliance Infrastructure Ltd. |
Power |
0.65 |
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| 500376 |
Satyam Computer Services Ltd. |
Information Technology |
0.95 |
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| 500112 |
State Bank of India |
Finance |
0.45 |
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| 500900 |
Sterlite Industries (India) Ltd. |
Metal,Metal Products & Mining |
0.40 |
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| 532540 |
Tata Consultancy Services Limited |
Information Technology |
0.25 |
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| 500570 |
Tata Motors Ltd. |
Transport Equipments |
0.60 |
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| 500400 |
Tata Power Company Ltd. |
Power |
0.70 |
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| 500470 |
Tata Steel Ltd. |
Metal,Metal Products & Mining |
0.70 |
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| 507685 |
Wipro Ltd. |
Information Technology |
0.20 |
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For the latest constituents for the sensex click here.
For list of stock that constitutes Nifty click here.
Posted in Market View | 1 Comment »
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