Friday, March 23, 2018

Guinness record : 41,000 plus LoUs issued by PNB

 Punjab National Bank had issued as many as 41,178 Letters of Undertaking  since 2011, a kind of  Guinness record.  Nirav Modi, Mehul Choksi and their associates, were issued 1590 LoUs. according to the finance ministry.

Fraudulent LoUs of the state-owned PNB were used by diamantaire Nirav Modi and his associates to defraud the bank of about Rs 13,500 Cr.

In a written reply to the House on March 20, Finance Minister Arun Jaitley said that PNB has apprised that 7,672 LoUs were issued with validity of 90 days, 20,078 LoUs were issued with validity of 180 days, 11,224 LoUs were issued with validity of 365 days, and 2,204 LoUs were issued with validity of more than 365 days.

PSU Banks still holds 68 percent market share

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Public sector banks have slowly given away their market share to their private sector peers. While the government-owned banks still command 68.1 per cent of the advances, at the end of fiscal 2007 their share was 72.6 per cent.

Comparison is unfair since there is no level paying field for PSU Banks. All unremunurative, unwanted and government sponsored work are dumped on PSU banks. 

In the same period, the private banks have improved their share to 27.8 per cent from 21.5 per cent, while the share of the foreign banks has shrunk to 4 per cent from 5.9 per cent earlier. 

PNB fraud loss widens

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 Punjab National Bank has witnessed losses to the tune of Rs 14500 Cr due to fraud so far in this financial year, Parliament was informed this week.

Sandhar Technologies IPO subscribed 6 times

Sandhar Technologies IPO has been subscribed by 6 times on the final day. QIB portion 14, non institutional investors 6  and retail segment 1.42 times.

Kanishk loan default : SBI hits 52 week low

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SBI stock hit 52 week low of Rs 240.65 in yesterday's trading following the negative sentiment in respect of loan default by Chennai based jeweller Kanshik Gold. 

A consortium of 14 banks have  lent to  Kanishk Gold Pvt Ltd. SBI, the lead banker, has filed a case alleging mismanagement and falsification of accounts.

ICICI Sec IPO gets 29% subscription on day 1

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ICICI Securities has received 29% subscription on day 1. QIB portion has been subscribed by 49 and retail segment by 22 percent.

Mishra Dhatu Nigam gets 64% subscription on day 2

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Mishra Dhatu Nigam IPO has received 64% subscription on day 2. The IPO closes today.

Thursday, March 22, 2018

Fed raises interest rates

 Federal Reserve raised interest rates by 25 bps on Wednesday and forecast at   least two more hikes for 2018, signaling growing confidence U.S. tax cuts and   government spending will boost the economy and inflation and lead to more   aggressive future tightening-target range to 1.5 percent to 1.75 percent.

ICICI Securities ropes in anchor investors

ICICI Securities has allotted 33 million shares worth Rs 1720 Cr to 58 anchor investors. Some of the overseas investors who were allotted shares include Fidelity, Artisan, Fairfax, Nomura, Amansa & Blackrock.

Among the domestic investors, those given allotments are HDFC MF, DSP Blackrock, Reliance MF, Premji Invest, SBI MF, Birla MF and IDFC MF.

The allotment was made at Rs 520 apiece. 

Wednesday, March 21, 2018


Issue Details :

Issue opens  / closes on
22-03 / 27-03-2018
Issue size
32,40,000 equity shares
Face value
Rs 10
Rs 35
Manufacturer of Solar Parabolic Concentrating Systems
Bse, sme

PNB Loan scam effect : Goldman Sachs lowers India's growth rate

 Goldman Sachs downgraded its forecasts for India's economy in the wake of a more than Rs 13,000 Cr fraud at Punjab National Bank , warning it could spark tighter regulation of the banking sector that would constrain credit growth.

In a note to clients, Goldman Sachs lowered its real gross domestic product  forecast on India for the year to March 2019 to 7.6 percent from 8 percent earlier.

Former CMD of Canara bank comes under CBI scanner

 CBI has charged former chairman-cum-managing director RK Dubey and two of the then executive directors of the Canara Bank of cheating and forgery in the alleged loan default of over Rs 68 crore sanctioned in 2013.

The then deputy GM of the bank Mukesh Mahajan, the then chief GM T Sreekanthan have also been charged. 

 R K Dubey sanctioned loan and forced officials at Kamala Nagra branch of Canara bank to disburse  the loan to Occasion Silver in violations of established banking norms. The loan went bad within one year of disbursement. Kapil Gupta and Raj Kumar Gupta, directors of the company has also been charged.

Tuesday, March 20, 2018

Nvidia loses 4% on RBC Capital report

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Nvidia closed at $ 241, down almost 4% in Monday's trading, after RBC Capital came out with an report on cryptocurrency business.

Nvdia produces graphics processing units used for crypto mining, which adds to the block-chain of a currency. With the massive gains in bitcoin and other cryptocurrencies, those chips have been in high demand. But RBC Capital says the economics of mining for cryptocurrencies has broken down and that mining with computers and chips from Nvidia or its competitor has increasingly becoming less profitable.
Advanced Micro Devices is increasingly less profitable

HAL IPO almost bombs, but for LIC

HAL IPO has received 99% subscription on the final day, according to Nse website. 

Retail portion has been subscribed only to the extent of 39%.

LIC’s Rs 3000 Cr bid helped HAL reach the minimum 10 per cent dilution threshold required for listing. 

Value destroying IPOs of 2015

Sl no
Name of the company
IPO price
FirstChoiceIPO recommendations
Ortel Communications
Inox wind
UFO Moviez
Coffee Day

Canfin Homes stake sale ; Either it is Baring or HDFC

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The 30% stake sale by Canara Bank of its sponsor organisation - Canfin Homes -has reached the final stage. Baring Private Equity Partners Asia and HDFC are in the final race.

Canara Bank is expected to pick later this week the preferred suitor for its stake, which is valued at around Rs 2,000 crore.