Though there’s no denying that credit growth continues to decline, the RBI data on sectoral credit growth shows only one side of the story as credit per se has been expanding through non-banking channels, primarily in the debt market, said a report.
Capital markets regulator Sebi chairman Ajay Tyagi today expressed hope that the Insolvency and Bankruptcy Code (IBC) will help boost investor confidence and encourage fund inflows into the corporate bonds market, especially in low-rated instruments.
Reserve Bank Governor Urjit Patel today called for recapitalisation of state-run banks to help them resolve the NPAs issue in a time-bond manner
Assuring balance-sheet stressed firms that key objective of NPA resolution is not liquidation of their businesses but to save them, Finance Minister Arun Jaitley today said, the new insolvency law has significantly reversed defaulting debtor-creditor relationship.
The benchmark NSE Nifty reclaimed the 9,900-level and BSE Sensex climbed over 167 points in early trade today on widespread gains following sustained buying by domestic institutional investors.
Financial sector companies led by insurance companies, stock exchanges and small finance banks are likely to dominate the primary market offering in the coming months as has been the trend so far in 2017.
BSE was the first company to list in 2017. It was followed by Housing and Urban Development Corporation (HUDCO), Central Depository Services(CDSL) and AU Small Finance Bank.
Banks are preparing for the next round of lending rate cut after setting the ball rolling by cutting savings rates by 25-50 basis points, as barriers to reduce interest rates appears to have dropped, according to bank officials. “Banks cutting saving rates have created a scenario where it looks like you have more of easing,” said Ashutosh Khajuria, executive director, Federal Bank.
Paring losses suffered in early trade, lenders led by Bank of Baroda rallied on Wednesday after markets regulator Sebi relaxed norms with regard to open offer under takeover regulations. The watchdog exempted banks from making mandatory open offers after buying stake in distressed listed companies.
Bank Nifty ended the day 1.34 per cent higher to close at 24,437.70. All bank stocks ended in the positive terrain except Yes Bank. Bank of Baroda gained 3.44 per cent; Punjab National Bank 3.04 per cent; State Bank of India 1.76 per cent on
Market regulator Sebi along with stock exchanges are in the process of initiating audit on about 100 out of 331 suspected shell companies.
Both BSE and NSE will soon appoint a panel of auditors for the first stage of audit of these companies, sources said. The exchanges may also initiate a forensic audit to verify credentials and fundamentals of these alleged shell companies.
The rupee staged an impressive comeback after plunging to a fresh three-week low and ended with a modest loss of 3 paise at 64.15 a dollar today even as local equities put up a strong performance.
The outcome of the two-day policy meeting of the Federal Reserve and resurgent dollar overseas largely kept forex market sentiment little shaky throughout the day.
Fresh bouts of dollar demand from importers and fears over a sudden capital flight added some extra pressure.