Connect with us

Business

Rupee rises 9 paise against US dollar in early trade

Published

on

The rupee appreciated by 9 paise to 69.58 against the US dollar on Tuesday ahead of the RBI’s second round of dollar-rupee swap auction.

The currency was also buoyed on reports that India has lined up alternate sources to make up for likely shortfall in crude supplies, forex dealers said. Besides, a positive start of the equity markets influenced recovery of the rupee, they added.

However, a strong US dollar against major global currencies capped gains of the domestic unit.

The Reserve Bank of India (RBI) is set to inject long-term liquidity worth USD 5 billion into the banking system through dollar-rupee buy-sell swap for a tenure of three years, the second such auction within a month.

At the Interbank Foreign Exchange market, the domestic unit opened higher at 69.63 against the dollar then rose further to quote at 69.58, up 9 paise over its previous close.

The rupee had declined by 32 paise to a two-week low of 69.67 against the US dollar Monday.

According to the dealers, the RBI’s dollar-rupee swap auction would help absorb dollar inflows that could make the rupee stronger.

India, the second biggest buyer of Iranian oil, has lined up alternate sources to make up for the likely shortfall in supplies after the US decided not to give waiver from its sanctions for buying oil from the Persian Gulf nation, as per the sources.

Meanwhile, the BSE Sensex was trading 152.78 points or 0.40 per cent higher at 38,797.96. The NSE Nifty too rose 40.35 points, or 0.35 per cent, to 11,634.80.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.03 per cent to 97.31.

Brent crude futures, the global oil benchmark, was trading higher by 0.39 per cent at USD 74.33 per barrel.

Foreign institutional investors (FIIs) remained net buyers in the capital markets, putting in Rs 73.08 crore on Monday, provisional exchange data showed.

Source

Business

Sensex spirals to record high in early trade on the back of exit polls

Published

on

The benchmark BSE Sensex jumped over 200 points to hit a record intra-day high of 39,565.82 as investors’ euphoria over exit poll outcome continued in early session on Tuesday.

The 30-share index was trading 205.24 points, or 0.52 per cent, higher at 39,557.91. In similar movement, the broader NSE Nifty rose 48.90 points, or 0.41 per cent, to 11,877.15.

In the previous session, the Sensex ended 1,421.90 points, or 3.75 per cent, higher at 39,352.67, and the Nifty soared 421.10 points, or 3.69 per cent, to 11,828.25.

Top gainers in the Sensex pack in morning trade include HDFC twins, Bajaj Finance, Coal India, RIL, Bajaj Auto, HUL, IndusInd Bank, Sun Pharma, Vedanta, Axis Bank and Asian Paints, rising up to 2.21 per cent.

On the other hand, Tata Motors, Yes Bank, Bharti Airtel, Tata Steel, SBI, Infosys, ONGC and TCS fell up to 3.18 per cent.

“Market has given a thumbs-up to exit poll numbers. Sentiments have turned around drastically and the benchmark indices can gain 5-8 per cent more from here over the next few weeks if the final election outcome is in line or even better than exit polls,” said Gaurav Dua, Senior VP, Head – Strategy and Investments, Sharekhan by BNP Paribas.Most exit polls forecast another term for Prime Minister Narendra Modi. The results of the seven-phase polls will come out Thursday.

Meanwhile, market regulator Sebi and stock exchanges have beefed up their surveillance mechanism to check any manipulative activities in the market this week in view of the high-octane election related events lined up.

Foreign institutional investors bought equity worth Rs 1,734.45 crore on Monday, while domestic institutional investors sold shares to the tune of Rs 542.71 crore, provisional data available with stock exchanges showed.

Elsewhere in Asia, bourses in China, Japan and Korea were trading on a mixed note in their respective early sessions.

Benchmarks on Wall Street ended in the red on Monday.

On the currency front, the rupee appreciated marginally to 69.71 against the US dollar in opening trade Tuesday.

Brent crude, the global benchmark, was trading at 72.20 per barrel, higher by 0.32 per cent. PTI ANS ANS

Source

Continue Reading

Business

In Chanda Kochhar case, ED probe points to conflict of interest

Published

on

An Enforcement Directorate (ED) investigation has revealed that former ICICI Bank managing director and CEO, Chanda Kochhar, already held shares in a private company, Credit Finance Limited (CFL), along with her family members and the Videocon Group when she became the executive director of the bank in April 2001 — a significant conflict of interest. It isn’t clear whether this was disclosed to ICICI Bank when Kochhar was named on the board or, indeed, to the Reserve Bank of India when she became CEO.

HT has reviewed a copy of an internal ED report, which states that CFL was held jointly by Chanda Kochhar and family (60% of shares) and Videocon (24.7% shares) since 2000-01. “She became executive director (of ICICI) in April 2001 and also held share of CFL along with other shareholders of the Kochhar group. Her husband Deepak Kochhar was the managing director of CFL till 2009,” the report said.

It is this company — earlier named Credential Finance Limited (incorporated in 1992), which was later merged into Bloomfield Builders and Construction Ltd in 1996 and renamed as Credit Finance Limited (CFL) — which bought Flat number 45, CCI Chambers in 1996 and later mortgaged it to Videocon International Limited. The Kochhars lived in this flat since 1997. In fact, ED adds in its report that when CFL defaulted a loan from SBI Home Finance, it was repaid by Videocon.

ED and the Central Bureau of Investigation (CBI) started looking into a possible quid pro quo between Chanda Kochhar and the Videocon Group based on a whistleblower’s complaint that ICICI Bank loaned money to Videocon in return for Videocon Group chairman, Venugopal Dhoot, investing in Deepak Kochhar’s company. The bank initially cleared Chanda Kochhar of any wrongdoing based on an internal report, but as the investigation deepened, had to ask her to step down.

The ED report terms transactions related to this flat and parties involved in it as “unclean” and “in collusion”.

“The transactions relating to the sale and purchase of this apartment to the individuals and CFL and subsequent settlement among the conspirators i.e. CFL and QTAPL (Quality Techno Advisors Pvt Ltd, a Videocon company which had acquired the apartment, which was 100% acquired by a trust of Chanda Kochhar) are subject matter of thorough probe because parties of both sides in holding the title of apartment are unclean and in collusion also”, the ED report added.

The report further claimed that during her term as the MD-CEO of ICICI Bank from 2009 till 2018, Chanda Kochhar “is alleged to have not disclosed the directorship details of her husband to ICICI Bank), as per the norms under Banking rules”.

Her lawyer, Vijay Aggarwal, declined to comment. ICICI Bank did not respond to an e-mail from HT.

According to Section 184 of the Companies Act, every director of a company (both private and public) should disclose their interest or concern in a third party. Kochhar not disclosing the shares held by her in CFL is also against Reserve Bank of India (RBI) guidelines, two banking experts said.

An ED officer who spoke on condition of anonymity said: “Chanda Kochhar didn’t inform the ICICI bank about her shareholding, her husband’s business interests and their connection with Videocon while she continued to be on several sanctioning committees of the bank which approved loans for the Videocon group companies.”

As first reported by HT, ED has expanded its probe against Kochhars and Videocon group in total 24 loans worth Rs 7,862 crore.

The ED has listed 24 companies which were or are run by the Kochhar group.

Chanda and Deepak Kochhar were questioned for the fifth day on Friday.

Source

Continue Reading

Business

SBI writes off loans worth Rs 1 lakh crore in the last two years

Published

on

State Bank of India (SBI), the country’s largest lender by assets, has written off over Rs 1 lakh crore worth of loans in the two years ended March 31, as it purged its accounts of legacy bad loans.

It wrote off Rs 61,663 crore in the year ended March 31 and an additional Rs 40,809 crore in the previous fiscal year, taking the aggregate to Rs 1.02 lakh crore. This is close to double the Rs 57,646 crore that the lender wrote off in the preceding three financial years.

With a big chunk of bad loans written off in FY19, SBI’s outstanding gross non-performing assets (NPAs) declined 23% year-on-year (y-o-y) to Rs 1.72 lakh crore.

Meanwhile, SBI’s loan recoveries and loan upgrades (accounts which resumed paying interest) touched Rs 31,512 crore in FY19. To be sure, keeping pace with the increasing write-off, the bank’s recovery and upgrades have also increased during the same period.

While it recovered and upgraded Rs28,632 crore loans in the three years ended March 31, 2017, in the past two years, SBI could get back Rs45,429 crore.

It is important to note that banks write off bad loans once it becomes unviable to recover them. Banks have to ensure they fully provide for these loans before they are written off.

However, the provision requirements do not arise suddenly since lenders have to constantly increase provisions on bad loans as they age, under the central bank’s Income Recognition and Asset Classification (IRAC) norms.

That apart, banks recover from written-off loans and these recoveries help shore up their other income.

The Reserve Bank of India (RBI) defines technical or prudential write-off as the amount of non-performing loans which are outstanding in the books of the branches, but have been written off (fully or partially) at the head-office level.

Last Friday, after announcing the bank’s FY19 results, SBI chairman Rajnish Kumar said that while the bank calls it a write-off, it is only an accounting practice.

“We have several times clarified that it is just a movement to advances under collection account (AUCA) and the follow-up is with the same intensity. So, it is an accounting entry, nothing else,” said Kumar.

Source

Continue Reading

Newsletters

Enter your email address to get latest updates

Advertisement

Trending

Copyright © 2018 - 2019 Delhi Wire.