Equities Correspondent, New Delhi
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Nov 25, 2014

India’s laggard state lenders face tough sell on capital raising plan

MUMBAI (Reuters) – India’s state-run banks face major obstacles in their plans to raise as much as $60 billion in new capital over the next few years, with investors skeptical about the prospects for most of them and workers wary of the government’s grip loosening.

With the tailwind of a strong recent stock market performance on optimism about a new government led by Prime Minister Narendra Modi, the banks are preparing to raise capital to meet upcoming global regulations and to build a buffer against rising bad loans. Banks such as State Bank of India have appointed advisers for share sales.

Nov 20, 2014

Kotak bank buys ING Vysya in record $2.4 billion share deal

MUMBAI (Reuters) – Kotak Mahindra Bank (KTKM.NS: Quote, Profile, Research) has agreed to buy ING Vysya (VYSA.NS: Quote, Profile, Research) in an all-share deal valuing its smaller rival at $2.4 billion, bulking up as analysts predict the start of long-awaited consolidation in a crowded banking sector.

Dutch lender ING Groep NV (ING.AS: Quote, Profile, Research) owns roughly a 43 percent stake in ING Vysya. It will be the second-largest shareholder in Kotak Mahindra after the deal — the largest in the Indian banking sector to date — with a holding of about 7 percent.

Nov 20, 2014

India’s Kotak bank buys ING Vysya in record $2.4 bln share deal

MUMBAI, Nov 20 (Reuters) – Indian lender Kotak Mahindra Bank
has agreed to buy ING Vysya in an all-share
deal valuing its smaller rival at $2.4 billion, bulking up as
analysts predict the start of long-awaited consolidation in a
crowded banking sector.

Dutch lender ING Groep NV owns roughly a 43 percent
stake in ING Vysya. It will be the second-largest shareholder in
Kotak Mahindra after the deal — the largest in the Indian
banking sector to date — with a holding of about 7 percent.

Nov 11, 2014

India tightens rules for “shadow banks” as business grows

MUMBAI, Nov 11 (Reuters) – India raised the minimum capital
requirement for so-called shadow banks and tightened rules on
deposits and bad loans to avoid any potential risk to the
economy from these rapidly growing finance firms by regulating
them like traditional banks.

Shadow banks, or non-banking financial companies (NBFCs),
have in recent years played a bigger role in financing small
businesses and individuals in India, taking over from the banks
that reined in credit as economic growth slowed.

Nov 7, 2014

More pain ahead for Indian banks as bad loans pile up

MUMBAI, Nov 7 (Reuters) – India’s state-owned banks warned
growth in bad loans may continue into next year as they posted a
rise in troubled loans for the September quarter with a
weakening economy causing debt-laden sectors such as
infrastructure to default on payments.

The bleak assessment means these and other banks, including
private sector banks, may have to make higher provisions in
their books against the souring loans which could eat into their
profits at a faster pace.

Nov 5, 2014

Govt plans $2.8 billion ONGC stake sale by early Dec – sources

NEW DELHI/MUMBAI (Reuters) – The government plans to sell a 5 percent stake in energy explorer Oil and Natural Gas Corp (ONGC) in the last week of November or the first week of December, two sources directly involved in the deal said on Wednesday.

Prime Minister Narendra Modi’s government has introduced long-awaited reforms in the oil sector, freeing diesel prices and raising natural gas prices – measures which should be positive for ONGC and other oil marketing companies.

Nov 5, 2014

India plans $2.8 bln ONGC stake sale by early Dec – sources

NEW DELHI/MUMBAI, Nov 5 (Reuters) – The Indian government
plans to sell a 5 percent stake in energy explorer Oil and
Natural Gas Corp (ONGC) in the last week of November
or the first week of December, two sources directly involved in
the deal said on Wednesday.

Prime Minister Narendra Modi’s government has introduced
long-awaited reforms in the oil sector, freeing diesel prices
and raising natural gas prices – measures which should be
positive for ONGC and other oil marketing companies.

Oct 30, 2014

ICICI Bank posts record Q2 profit, but bad loans rise

MUMBAI (Reuters) – ICICI Bank Ltd, India’s biggest private sector lender, reported a record quarterly profit on Thursday that beat analyst estimates, but bad loans rose and sent its shares lower.

Net profit rose 15 percent to 27.09 billion rupees for its fiscal second quarter ended Sept. 30, the Mumbai-based lender said in a statement. Analysts on average had expected a net profit of 26.93 billion rupees for ICICI Bank, which is also listed in New York.

Oct 30, 2014

India’s ICICI Bank posts record Q2 profit, but bad loans rise

MUMBAI, Oct 30 (Reuters) – ICICI Bank Ltd, India’s
biggest private sector lender, reported a record quarterly
profit on Thursday that beat analyst estimates, but bad loans
rose and sent its shares lower.

Net profit rose 15 percent to 27.09 billion rupees ($440.88
million) for its fiscal second quarter ended Sept. 30, the
Mumbai-based lender said in a statement. Analysts on average had
expected a net profit of 26.93 billion rupees for ICICI Bank,
which is also listed in New York.

Oct 16, 2014

State lenders eye sale of family silver to raise cash

MUMBAI (Reuters) – India’s state-owned banks, weighed down by bad loans and lacklustre profits, could within months begin the sale of billions of dollars of unwanted assets to help raise cash needed to meet tougher regulation.

State-run Central Bank of India (CBI.NS: Quote, Profile, Research) could be among the first off the block, according to a tender document for advisers seen by Reuters, which outlines a plan to sell all or part of its home finance unit by the end of December.

    • About Devidutta

      "I cover the telecoms sector in India. With Reuters since 2005. Previous stints were in Bangalore and Mumbai, where I covered metals and construction companies and also the stock markets, before I moved to New Delhi in 2008. @dtripathy on Twitter."
      Joined Reuters:
      August 2005
      Languages:
      English, Hindi, Oriya
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