HEMANT PARIKH
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STOCK ALERT ( 28 / 07 ) ( HEMANT )

Hemant Parikh at 09:07 AM - Jul 28, 2014 ( ) Views: 568

Bank stocks in focus

 

The Reserve Bank of India on Friday, 25 July 2014, penalised as many as 12 banks for flouting banking norms while doing business with Deccan Chronicle Holdings. The highest penalty of Rs 40 lakh has been imposed on ICICI Bank. A penalty of Rs 15 lakh each has been imposed on Axis Bank and IDBI Bank. A penalty of Rs 10 lakh each has been imposed on Andhra Bank, Canara Bank, Corporation Bank, IndusInd Bank, Kotak Mahindra Bank, Yes Bank and State Bank of Hyderabad. A penalty of Rs 5 lakh each has been imposed on HDFC Bank and Ratnakar Bank.

The RBI said it had carried out a scrutiny of the loan and current accounts of Deccan Chronicle Holdings in certain branches of these banks in late 2013. Based on the findings of the scrutiny, the RBI issued show cause notices to these banks in` March 2014, to which17 the individual banks submitted written replies. After considering the facts of each case and the individual bank's reply, as also, the personal submissions etc., by some of the banks before a Committee of Executive Directors, the RBI came to the conclusion that some of the violations were substantiated and warranted imposition of monetary penalty, the RBI said.

Cholamandalam Investment and Finance Company's board of directors at its meeting held on Saturday, 26 July 2014, recommended an issue of 5 crore compulsorily convertible preference shares (CCPS) of Rs 100 each aggregating to Rs 500 crore to the funds advised by private equity firm Apax Partners (Apar Funds) on a preferential basis, in accordance with the Sebi (Issue of Capital & Disclosure Requirements) Regulations, 2009 as amended from time to time. The approval of sharesholders for the above is proposed to be sought through a postal ballot.

Oriental Bank of Commerce after trading hours on Friday, 25 July 2014, said that the bank's board of directors at a meeting held on 18 July 2014 approved the capital raising programme of the bank for an amount not exceeding Rs 1500 crore through various modes at the opportune time pursuant to applicable laws and regulatory approvals.

Cairn India after market hours on Friday, 25 July 2014 in a clarification issued with regard to news item titled "Cairn tanks on $1.25-b Loan to Sesa arm" said that the company has complied with the applicable regulatory requirements in respect of the said transaction. This being a related party transaction (RPT), prior approval of the audit committee was taken and the transaction is being effected on arm's length principle. The said loan has been extended by subsidiaries of Cairn India and the coupon rate is commensurate with the market rate for such transaction, Cairn India said.

Cairn India said that the amended Clause 49, which will be effective from, 1 October 2014, has introduced concept of "material" RPT and also the requirement for seeking approval of shareholders by special resolution for such cases. The transaction in question is not a "material" transaction. Accordingly, no approval of shareholders/disclosure is required, Cairn India said.

Cairn India further said that the loan has been extended for 2 years at floating rate of 3% plus LIBOR. The return from the said facility is benchmarked with return of similar rated instruments and is higher than returns the company was earning from the deposits, Cairn India added.

New Delhi Television (NDTV) after market hours on Friday, 25 July 2014 in a clarification issued with regard to news item titled "NDTV shares spurt 20% on takeover buzz, Trai norms" said that as part of its continuing business strategy to look for growth opportunities, the company is constantly on the look out for and in discussions with potential partners in various capacities to further its business. The company is not aware of any negotiations or transactions that require disclosure under Clause 36 of the Listing Agreement. The company will make the necessary disclosure as appropriate if and when any concrete alliance or transaction emerges out of such discussions, NDTV said. Further, the company is not aware of any other information not disclosed to the stock exchanges which could explain the speculative movement in the trading of the shares of the company as noted in the said article, NDTV added.

Jindal Steel & Power (JSPL) after market hours on Friday, 25 July 2014, said that the Board of Directors of its subsidiary Jindal Power (JPL) at a meeting held on 28 April 2014 gave in-principle approval for sale of JPL's entire equity share in Kamala Hydro Electric Power Company. As and when some proposal is finalized, the same will be appropriately disclosed to stock exchanges, JSPL said. The company clarified this with respect to media reports, "Jindal Power seeks to sell entire stake in Arunachal hydro project".

Indiabulls Housing Finance after market hours on Friday, 25 July 2014 said it has issued and allotted 20,000 equity shares of face value Rs 2 each, upon conversion of warrants.

Ashok Leyland after market hours on Friday, 25 July 2014, reported a net loss of Rs 47.95 crore in Q1 June 2014, lower than net loss of Rs 141.75 crore in Q1 June 2013. Total income rose 5.25% to Rs 2500.92 crore in Q1 June 2014 over Q1 June 2013.

Indiabulls Real Estate after market hours on Friday, 25 July 2014 reported 46.48% drop in consolidated net profit at Rs 38.85 crore on 18.8% growth in total income to Rs 623.48 crore in Q1 June 2014 over Q1 June 2013.

Eveready Industries' net profit jumped 157.3% to Rs 10.60 crore on 15.7% growth in net sales to Rs 323.49 crore in Q1 June 2014 over Q1 June 2013. The result was announced after market hours on Friday, 25 July 2014.

Indian Hume Pipe's net profit jumped 34.8% to Rs 5.62 crore on 21.6% growth in net sales to Rs 195.41 crore in Q1 June 2014 over Q1 June 2013. The result was announced after market hours on Friday, 25 July 2014.

JK Lakshmi Cement's net profit jumped 157.7% to Rs 40.46 crore on 31.4% growth in net sales to Rs 600.42 crore in Q1 June 2014 over Q1 June 2013. The result was announced after market hours on Friday, 25 July 2014.

Raymond reported a consolidated net loss of Rs 32.85 crore in Q1 June 2014, lower than net loss of Rs 49.68 crore in Q1 June 2013. Net sales rose 25.4% to Rs 1096.09 crore in Q1 June 2014 over Q1 June 2013. The result was announced after market hours on Friday, 25 July 2014.

Omaxe's consolidated net profit fell 36.8% to Rs 12.03 crore on 17.7% decline in net sales to Rs 326.32 crore in Q1 June 2014 over Q1 June 2013. The result was announced after market hours on Friday, 25 July 2014.

DIC India reported a net loss of Rs 10.07 crore in Q2 June 2014 as against net profit of Rs 0.67 crore in Q2 June 2013. Net sales rose 2.1% to Rs 175.92 crore in Q2 June 2014 over Q2 June 2013. The result was announced after market hours on Friday, 25 July 2014.

Advanta's consolidated net profit fell 52.2% to Rs 15.15 crore on 5.3% decline in net sales to Rs 294.26 crore in Q2 June 2014 over Q2 June 2013. The result was announced after market hours on Friday, 25 July 2014.


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