Leading private sector lender HDFC Bank today reported a 33.8 per cent increase in its June quarter net profit at Rs 811.71 crore.The bank had reported Rs 606 crore profit in the corresponding quarter last fiscal.
Total income rose by 4.3 per cent to Rs 5,360 crore in the April-June quarter up from Rs 5,136 crore in the same period last year, HDFC Bank said in a filing to the BSE.
Gross non-performing assets declined to 1.21 per cent from 2.05 per cent during the quarter, while the net interest margin rose marginally to 4.3 per cent from 4.2 per cent a year earlier.
The bank's provisions were down at Rs 555 crore from over Rs 658 crore in the same quarter last fiscal.
Shares of the bank rose 0.57 per cent to Rs 2,050.35 on the BSE, on a day when the broader Sensex closed down 27 points at 17,928.42.
Monday, July 19, 2010
ICICI sees 20% growth in credit during FY11
Private sector lender ICICI Bank today said it expects a credit growth rate of 20 per cent in the current fiscal.
"It (credit growth) would be 20 per cent," ICICI Bank CEO and Managing Director Chanda Kochhar said on the sidelines of an event organised by CII here.
The outstanding loan of ICICI Bank at the end of March 2010 stood at Rs 1,81,206 crore. The bank, however, had witnessed a decline in credit offtake in the last fiscal from Rs 2,18,311 crore in the year-ago period, mainly due to the repayments from the retail loan portfolio and the loan portfolio of overseas branches, he had said in a statement.
During 2009-10, ICICI Bank had a consolidated net profit of Rs 4,670.29 crore, up 30.56 per cent over the same year-ago period.
Speaking about financial inclusion initiatives, Kochhar said the bank is planning to reach to about 85,000 to one lakh villages in the next three years.
The bank is aiming to tap about two crore customers through its financial inclusion initiatives. The country has over six lakh villages, of which only 5 per cent have got bank branches.
Asked about her reaction to the Takeover Code proposals mooted by panel of market regulator SEBI, she said, "I think we should watch how it gets implemented, but certain norms are good."
The SEBI Takeover Regulatory Advisory Committee today suggested hiking open offer trigger to 25 per cent from the current 15 per cent and raising the offer size to 100 per cent of the equity in the target company.
"It (credit growth) would be 20 per cent," ICICI Bank CEO and Managing Director Chanda Kochhar said on the sidelines of an event organised by CII here.
The outstanding loan of ICICI Bank at the end of March 2010 stood at Rs 1,81,206 crore. The bank, however, had witnessed a decline in credit offtake in the last fiscal from Rs 2,18,311 crore in the year-ago period, mainly due to the repayments from the retail loan portfolio and the loan portfolio of overseas branches, he had said in a statement.
During 2009-10, ICICI Bank had a consolidated net profit of Rs 4,670.29 crore, up 30.56 per cent over the same year-ago period.
Speaking about financial inclusion initiatives, Kochhar said the bank is planning to reach to about 85,000 to one lakh villages in the next three years.
The bank is aiming to tap about two crore customers through its financial inclusion initiatives. The country has over six lakh villages, of which only 5 per cent have got bank branches.
Asked about her reaction to the Takeover Code proposals mooted by panel of market regulator SEBI, she said, "I think we should watch how it gets implemented, but certain norms are good."
The SEBI Takeover Regulatory Advisory Committee today suggested hiking open offer trigger to 25 per cent from the current 15 per cent and raising the offer size to 100 per cent of the equity in the target company.
NSE launches volatility index on real time basis
Investors would now be able to hedge their portfolios against the risk arising out of volatility in the markets, with the National Stock Exchange launching its volatility index on a real time basis today.
This is for the first time in the country that volatility index is being disseminated, on a real time basis.
The volatility index called the 'India VIX' depicts the expected market volatility over the next 30 calendar days. Higher the India VIX values, higher would be the expected volatility and vice-versa.
So far, the volatility index, expressed in a percentage figure, was shown at the end of the day. But now it will be displayed on a real time basis.
"Once India VIX is available for trading after regulatory approvals, it will give a lot of security to investors and traders, who face uncertainty, because the new product will empower them with better information and foresight," NSE MD and CEO Ravi Narain said in a statement.
"More importantly, it will give them the ability, to use the product to hedge their portfolios against the risk arising out of volatility," he added.
NSE will also be applying to the capital market regulator Sebi for permission to start derivatives on the index, after it has been tracked for a suitable period, the exchange said.
Once the futures and options start on the index, investors whose portfolios are affected by volatility in the market can use the product to hedge their risks.
India VIX is a volatility index based on the index option prices of NSE's benchmark index Nifty.
Before starting derivatives on the volatility index, the index will be disseminated on a real time basis, so that market participants can understand the behaviour of the index, before trading on it, the NSE added.
Volatility refers to the amount of uncertainty or risk about the size of changes in a security or index value. A higher volatility means that a scrip's value can potentially vary over a larger range of values. This means that the price of the security can change dramatically.
A lower volatility means that a security's value does not fluctuate dramatically, but changes in value at a steady pace over a period of time
This is for the first time in the country that volatility index is being disseminated, on a real time basis.
The volatility index called the 'India VIX' depicts the expected market volatility over the next 30 calendar days. Higher the India VIX values, higher would be the expected volatility and vice-versa.
So far, the volatility index, expressed in a percentage figure, was shown at the end of the day. But now it will be displayed on a real time basis.
"Once India VIX is available for trading after regulatory approvals, it will give a lot of security to investors and traders, who face uncertainty, because the new product will empower them with better information and foresight," NSE MD and CEO Ravi Narain said in a statement.
"More importantly, it will give them the ability, to use the product to hedge their portfolios against the risk arising out of volatility," he added.
NSE will also be applying to the capital market regulator Sebi for permission to start derivatives on the index, after it has been tracked for a suitable period, the exchange said.
Once the futures and options start on the index, investors whose portfolios are affected by volatility in the market can use the product to hedge their risks.
India VIX is a volatility index based on the index option prices of NSE's benchmark index Nifty.
Before starting derivatives on the volatility index, the index will be disseminated on a real time basis, so that market participants can understand the behaviour of the index, before trading on it, the NSE added.
Volatility refers to the amount of uncertainty or risk about the size of changes in a security or index value. A higher volatility means that a scrip's value can potentially vary over a larger range of values. This means that the price of the security can change dramatically.
A lower volatility means that a security's value does not fluctuate dramatically, but changes in value at a steady pace over a period of time
Friday, April 16, 2010
Goldman Sachs charged with fraud by SEC
Goldman Sachs Group Inc was charged with fraud on Friday by the US Securities and Exchange Commission (SEC) in the structuring and marketing of a debt product tied to subprime mortgages.
The SEC alleged that Goldman structured and marketed a synthetic collateralized debt obligation that hinged on the performance of subprime residential mortgage-backed securities, and which cost investors more than $1 billion.
It alleged that Goldman did not tell investors "vital information" about the CDO, called ABACUS. This included that a major hedge fund, Paulson & Co, was involved in choosing which securities would be part of the portfolio, and had taken a short position against the CDO in a bet its value would fall.
According to the SEC complaint, Paulson & Co paid Goldman $15 million to structure the CDO, which closed on April 26, 2007. Little more than nine months later, 99 percent of the portfolio had been downgraded, the SEC said.
The SEC said Goldman Vice President Fabrice Tourre was principally responsible for creating ABACUS. It also charged him with fraud.
Goldman, Paulson and Tourre were not immediately available for comment.
Shares of Goldman sank $19.39, or 10.5 per cent, to $164.88 in morning trading on the New York Stock Exchange.
The SEC alleged that Goldman structured and marketed a synthetic collateralized debt obligation that hinged on the performance of subprime residential mortgage-backed securities, and which cost investors more than $1 billion.
It alleged that Goldman did not tell investors "vital information" about the CDO, called ABACUS. This included that a major hedge fund, Paulson & Co, was involved in choosing which securities would be part of the portfolio, and had taken a short position against the CDO in a bet its value would fall.
According to the SEC complaint, Paulson & Co paid Goldman $15 million to structure the CDO, which closed on April 26, 2007. Little more than nine months later, 99 percent of the portfolio had been downgraded, the SEC said.
The SEC said Goldman Vice President Fabrice Tourre was principally responsible for creating ABACUS. It also charged him with fraud.
Goldman, Paulson and Tourre were not immediately available for comment.
Shares of Goldman sank $19.39, or 10.5 per cent, to $164.88 in morning trading on the New York Stock Exchange.
Tuesday, April 6, 2010
Nifty to trade in 5200-5400 range
Nifty is likely to trade in the range of 5200-5400 levels over the series with an intermediate resistance at 5400.
Open interest addition remained
skewed towards put options. The open interest concentration for April series continued to be in the 5200 strike put with the highest open interest of above 75 lakh shares, indicating crucial support in the near term.
Nifty 5400 strike call has an open interest of above 68 lakh shares, signifying that the level is the immediate resistance. Implied volatility (IV) still continues to be on the lower side of the band, indicating caution.
The basis movement remained one-sided during the week closing at a premium of 1 points. The move may remain mixed with selling pressure near 5400 levels. The index may find intermediate support around 5280,5220 levels. Options activity suggests a movement between 5200-5400 levels this week.
Open interest addition remained
skewed towards put options. The open interest concentration for April series continued to be in the 5200 strike put with the highest open interest of above 75 lakh shares, indicating crucial support in the near term.
Nifty 5400 strike call has an open interest of above 68 lakh shares, signifying that the level is the immediate resistance. Implied volatility (IV) still continues to be on the lower side of the band, indicating caution.
The basis movement remained one-sided during the week closing at a premium of 1 points. The move may remain mixed with selling pressure near 5400 levels. The index may find intermediate support around 5280,5220 levels. Options activity suggests a movement between 5200-5400 levels this week.
Sensex pares early gains to close flat
BSE Sensitive Index (Sensex) tested fresh 25-month highs on Tuesday but pared most of their early gains to close barely changed, even as world stocks edged up, on resistance after.
Re slips from 19-month high to 44.47
The rupee retreated from a 19-month high on speculation that RBI sold the currency to combat appreciation that may hurt exports.
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