RBI sets average base rate for NBFC-MFIs at 9.22% - Free Stock Cash Tips and more Call on 9644405056

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The Reserve Bank today said the average base rate applicable for lending by Non-Banking Financial Company – Micro Finance Institutions (NBFC-MFIs) for the quarter beginning July 01, 2017 will be 9.22 per cent. "The Reserve Bank of India has today communicated that the applicable average base rate to be charged by Non-Banking Financial Company – Micro Finance Institutions (NBFC-MFIs) to their borrowers for the quarter beginning July 01, 2017 will be 9.22 per cent.

The Reserve Bank had, in its circular dated February 7, 2014, issued to NBFC-MFIs regarding pricing of credit, stated that it will, on the last working day of every quarter, advise the average of the base rates of the five largest commercial banks for the purpose of arriving at the interest rates to be charged by NBFC-MFIs to its borrowers in the ensuing quarter.

IndusInd Bank Inaugurates new Branch in Kota

Private-sector lender, IndusInd Bank said that it has inaugurated a new branch in Kota, Rajasthan. “IndusInd Bank has recently inaugurated its second branch in Kota, India's technical education hub. The branch is located at Plot No. 2 - Kha-6, Near Southpoul Restaurant, Vigyanagar, Jhalawar Road, Kota,” the Bank said in a filing to the Bombay Stock Exchange. With the inauguration of this branch, the bank now has 94 branches in the state of Rajasthan. Commenting on the development, IndusInd Bank, Head Branch Banking, Soumitra Sen said, “…

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The new branch aims at deepening relationships and attracting new customers, thus strengthening IndusInd Banks’ client base across the region. As we expand into deeper geographies to serve the local populace, we look forward to bring a whole new world of convenience and flexibility to customers.” Meanwhile, shares of the bank closed trading at Rs 1477.65 apiece, down 0.83 per

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On Thursday 29th June, the Indian Benchmark Index, Indian Benchmark Index Nifty opened at 9523 and closed at 9504 after making a high of 9576.The Index closed up by 13 points from its previous day close. NSE has recorded highest ever turnover in F&O segment on Thursday. The total turnover in F&O segment in yesterday’s trade stood at around Rs 14.1 lakh crore.

Bank Nifty opened at 23312 and closed at 23227 after making a high of 23476.The Index closed down by 9 points from its previous day close.

The Small Cap Index traded strong and closed at 7299 after making a low of 7254.The Index closed up by 76 points from its previous day close.

Nifty Future to open gap down by 17 points at 9487 against yesterday's close of 9504 as per SGX Nifty.

World Bank Raises $500 Million with ‘Pandemic Bonds’

The World Bank raised $500 million to finance rapid response to disease outbreaks, including through sale of its first-ever “pandemic bonds,” the bank announced Wednesday.

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Drawing on the slow response to the 2013 Ebola outbreak in Africa in which thousands died, the World Bank designed the Pandemic Emergency Financing Facility (PEF), to channel surge funding to developing countries facing the risk of a pandemic.

“With this new facility, we have taken a momentous step that has the potential to save millions of lives and entire economies from one of the greatest systemic threats we face,” World Bank group president Jim Yong Kim said in a statement.

“We are moving away from the cycle of panic and neglect that has characterized so much of our approach to pandemics.”

The fund will provide $500 million over the next five years through a combination of sales of the bonds and derivatives, cash and future commitments from donor countries, the World Bank said in a statement. Germany provide an initial cash injection of €50 million.

The PEF, announced in May 2016 at the Group of 20 finance ministers meeting in Japan, was oversubscribed by 200%.

The PEF covers six viruses that are most likely to cause a pandemic, including those responsible for new influenza pandemic virus A, SARS, MERS, Ebola, Marburg, and others like Crimean Congo, Rift Valley and Lassa fever.

Axis Bank Shares Gain 4% after it declares 80% bad loans as Secured

Shares of Axis Bank Ltd on Thursday gained as much as 4% after the bank clarified to the exchanges that its 80% insolvent loans are secured.

Intra-day, the stock hit a high of Rs514.15 a share. At 10.21am, it was trading at Rs511.55 on the BSE, up 3.5% from its previous close, while the benchmark Sensex index rose 0.68% to 31,045.13 points.

This move is seen positive because provisioning requirement on secured loans is lower as compared to unsecured loans.

The bank said in a notice to the BSE that it had exposure to eight out of the 12 stressed accounts that the Reserve Bank of India (RBI) advised initiating insolvency process on.

The total fund-based outstanding from these eight accounts is Rs5,070 crore. Non-fund-based outstanding was Rs212 crore.

Against this outstanding, the provision held was Rs2,497 crore, the bank added.

On 15 June, RBI has advised banks to initiate insolvency resolution process in select accounts under the provisions of the Insolvency and Bankruptcy Code (IBC).

Banks have started a preliminary assessment of additional credit costs after the central bank asked them to set aside 50% provisioning against secured exposures and 100% against unsecured exposure in all cases referred for bankruptcy.

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Vedanta Makes $3 billion bet to re-energize its Biggest oil Field

India’s Vedanta Ltd will spend $3 billion over the next three years as it seeks to expand oil reserves and nearly double output from its largest field.

India’s biggest non-state producer, controlled by billionaire Anil Agarwal, plans to drill more wells at its Barmer block in the western Indian state of Rajasthan and other blocks in the eastern part of the country, according to Sudhir Mathur, acting chief executive officer of Vedanta’s Cairn Oil & Gas unit.

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“There is a lot of oil in Barmer block, there is no doubt about that,” Mathur said in an interview at Cairn’s headquarter at Gurgaon near New Delhi. “All these projects are very viable for us even at $40 a barrel.”

Agarwal’s Vedanta aims to produce half of the energy-hungry nation’s oil by 2020 and replace some aging fields. The spending plan contrasts with global investments that are set to drop a third year after falling 24% to $450 billion in 2016, following years of low oil prices.

“The crash was brutal,” Mathur said. “But in that down cycle, the management team spent a lot of effort to re-engineer costs on both the projects as well as operations.” Brent crude, the global benchmark, has averaged nearly $53 dollars a barrel this year, down almost by half from 2014.

‘All cylinders’

Vedanta is cutting production costs by about $3 a barrel to $7.50, which it says is among the lowest in the world. It aims to raise oil and gas output from the Barmer block to about 300,000 barrels of oil equivalent a day over next three years from a daily average of 161,571 barrels in the year ended March, Mathur said.

Eris Lifesciences Shares rise 4% on Stock Market Debut

Shares of Eris Lifesciences Ltd rose 4% on debut on Thursday after its Rs1741.1 crore initial public offer (IPO) received a subscription of more than three times when it closed earlier this month.

Eris Lifesciences shares opened 1.5% higher on the BSE at Rs612 apiece compared to the issue price of Rs603, the upper end of the price band of Rs600-603 per share.

At 10.05am, they were up 4% at Rs626, while the benchmark Sensex index traded 0.74% higher at 31,063.40 points. Intra-day, the shares touched a high of Rs627.70 and a low of Rs610, respectively.

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The Ahmedabad-based pharmaceuticals company raised Rs1,741.1 crore through the issue which closed on 20 June, and was subscribed 3.29 times.

Ahead of the IPO, the company raised Rs779.43 crore by selling shares to anchor investors, including Abu Dhabi Investment Authority, Goldman Sachs India Ltd and Morgan Stanley India Investment Fund Inc.

Eris Life sciences develops, manufactures and commercializes branded pharmaceutical products in select therapeutic areas within chronic and acute categories like cardiovascular, anti-diabetics, vitamins, gastroenterology and anti-infectives.

CARE Shares surge 16% after Dlock Deal

Credit Analysis and Research Ltd (CARE) on Thursday witnessed a block deal, in which around 2.6 million shares or 8.8% stake of the company changed hands. However, details of buyers and sellers were not known.

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Following this, the shares of CARE surged as much as 16.2%, its maximum gain since its listing day and touched a high of Rs1,660 apiece—a level last seen on 3 April. The stock got listed in December 2012.

Suresh Pai, assistant general manager at Canara Bank, confirmed in a conversation with CNBC TV that the bank has sold its entire stake in the company and raised around Rs400 crore. As of March 2017, Canara Bank held 8.9% stake in the bank.

CRISIL Ltd has bought the entire stake in CARE at Rs1,659.79 a share, the CNBC TV report added.

Canara Bank rose 3.2% to Rs335.80, while CRISIL rose 1% to Rs1,940. India’s benchmark Sensex index rose 0.6% to 31,029.29 points.

China opens door for India in Donald Trump’s Washington

Very little was expected in India from Prime Minister Narendra Modi’s visit to the US, and for good reason: Modi had gone out of his way to cultivate a personal relationship with Barack Obama, including famously pouring out a cup of tea for him and the cameras when Obama visited India. Modi is nothing if not a strong personality, and has a somewhat worrying tendency to reduce complicated bilateral relationships to personal ones. Whether he would hit it off with Obama’s successor—who could perhaps be politely described as “mercurial”—was a matter of frenzied debate in New Delhi prior to the visit.

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As it turned out, Indian wonks needn’t have worried. Modi enveloped Donald Trump in a bear hug—something he tends to do—and whatever the American president may have thought of that, the bilateral relationship has clearly benefited from growing US disillusionment with Asia’s other giant, China. The question for Modi isn’t whether he can get along with Trump, but whether he can manage the relationship better than Chinese leader Xi Jinping has.

After Xi’s own visit to America—which featured chocolate cake and missiles at Mar-a-Lago—many Indians worried that they couldn’t expect the Trump administration to appreciate that the rise of China meant that India and the US were natural strategic partners. Indeed, hoping that Xi would pressure North Korea into scaling back its nuclear and missile programs, Trump has lavished the Chinese leader with praise and dropped his longstanding threats to punish China for allegedly unfair trade practices.

Also read: Why India-US relations may survive Donald Trump

Even now, the US president shows no sign of rethinking the somewhat intemperate remarks about India he made when withdrawing from the Paris Agreement. And he is unlikely to regret pushing Indian IT companies into a corner when it comes to temporary work visas. But, a few lines in the joint statement issued after Modi’s visit greatly reassured nervous Indian strategists:

[India and the US] support bolstering regional economic connectivity through the transparent development of infrastructure and the use of responsible debt financing practices, while ensuring respect for sovereignty and territorial integrity, the rule of law, and the environment.

Core Inflation can Muddle the case for Rate cuts

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The expectations of a policy rate cut in August are getting firmer every day in the market, especially after the latest reading of retail inflation for May. A rather dovish tone of the minutes of the monetary policy committee (MPC) meeting seems to have added more fuel to these expectations.

But a critical element and perhaps a constant bugbear for the Reserve Bank of India (RBI) has been core inflation. And here, the MPC members differ in their judgement of the future path of inflation.

Members like Ravindra Dholakia and Pami Dua believe the deceleration in core inflation is durable, while RBI governor Urjit Patel, member Chetan Ghate and deputy governor Viral Acharya sound unsure of a sustained deceleration. Michael Patra suggests that core inflation is still worryingly sticky.

While the truth could be somewhere in-between the most dovish (Dholakia) and the most hawkish (Patra) comments, it pays to see how core inflation has moved. It gets more complicated as for all the jawboning by RBI on core inflation, the central bank has not precisely defined the core inflation it monitors. From past statements, it is assumed that RBI arrives at core inflation after stripping food and fuel from the headline number. This has dropped to 4.14% in May from 4.44% in April and 4.5% a year ago.

Economists, of course, have a different take and argue that core inflation should also exclude petrol and diesel elements as well as precious metals like gold and silver. This “core core inflation” is what economists want the central bank to track.

Core core inflation has dropped to 4.01% from 4.18% in April and 4.87% a year ago. Indeed, the fall in this indicator is sharper than the core inflation that RBI is assumed to monitor