Don’t miss the latest developments in business and finance.

Bank stocks in spotlight as MCLR comes into effect today, 1 April 2016

Image
Capital Market
Last Updated : Apr 01 2016 | 10:28 AM IST

Bank stocks will be in focus as banks move towards marginal cost of funds based lending rates (MCLR), which comes into effect today, 1 April 2016. As per Reserve Bank of India's (RBI) new norms, which comes into effect today, 1 April 2016, interest rate on advances will be based on marginal cost of funds.

Punjab National Bank (PNB) announced lending rates based on marginal cost of funds to be effective from today, 1 April 2016. PNB's Marginal Cost of Funds based Lending Rate (MCLR) for overnight loans will be 9.15%, for one month will be 9.2% and for three months will be 9.3%. The MCLR on 6-month loans will be 9.35% and for one-year loans the rate would be 9.4%, the bank said. MCLR for three-year loans would be at 9.55% and loans with five-year maturity would carry an MCLR of 9.7%, the bank said. The announcement was made after market hours yesterday, 31 March 2016.

Bank of India said that the bank has allotted 46.39 lakh equity shares to General Insurance Corporation of India on preferential basis on 30 March 2016 at Rs 86.22 per share. The announcement was made after market hours yesterday, 31 March 2016.

Stocks of auto companies will be in focus as companies start unveiling monthly sales volume data for March 2016 from today, 1 April 2016.

Shares of Aurobindo Pharma, Bharti Infratel, Eicher Motors and Tata Motors Ltd. (DVR) will enter the Nifty 50 index with effect from today, 1 April 2016. Cairn India, Punjab National Bank and Vedanta will be dropped from the index with effect from today, 1 April 2016. Tata Motors Ltd. (DVR) enters as an additional stock, making the Nifty index a basket of 51 stocks rather than 50 stocks from today, 1 April 2016.

Shares of companies engaged in exploration & production of natural gas may extend losses after the Petroleum Planning & Analysis Cell (PPAC) attached to the Ministry of Petroleum & Natural Gas announced a reduction in locally produced natural gas price for the six-month period April-September 2016. The price has been cut by almost 20% to $3.06 per million British thermal units (mmBtu) on gross calorific value (GCV) basis for the period 1 April 2016 to 30 September 2016 from $3.82 per mmBtu for the period from 1 October 2015 to 31 March 2016. PPAC made the announcement after trading hours yesterday, 31 March 2016. Shares of ONGC, Oil India and Cairn India edged lower yesterday, 31 March 2016, after media reports suggested that the gas price will be cut by about 20% after the half-yearly price review.

Separately, PPAC set the ceiling price at $6.61 per mmBtu on GCV basis for the gas produced from deepwater, ultra deepwater and high pressure-high temperature areas for the six-month period 1 April 2016 to 30 September 2016. It may be recalled that the government last month finalized proposal to grant marketing, including pricing freedom for the gas produced from deepwater, ultra deepwater and high pressure-high temperature areas in its bid to boost gas exploration and production in the country. The higher pricing for gas produced from deepwater, ultra deepwater and high pressure-high temperature areas is expected to result in estimated additional gas production of around 35 mmscmd. The country's present gas production is around 90 mmscmd.

JSW Steel said that CARE has revised its long term rating for the bank facilities and non-convertible debentures of the company downward by one notch from "CARE AA" to "CARE AA-". The short term rating has been reaffirmed at "CARE A1+" which is the highest rating in the category. The announcement was made after market hours yesterday, 31 March 2016.

More From This Section

Federal-Mogul Goetze (India) said that the company has disposed off 26% equity holding comprising of 2.60 lakh equity shares held in Real Captive Power (RCP) for a consideration of Rs 26 lakh to Suraksha Buildwell LLP. The announcement was made after market hours yesterday, 31 March 2016.

Dishman Pharmaceuticals and Chemicals said that company has acquired further 50% stake in Schutz Dishman Biotech, a joint venture (JV) Indian company, from the existing JV partner i.e. SCHUTZ & CO. BETEILIGUNGSGESELLSCHAFT MBH, Germany for a consideration of EURO 300,000. Schutz Dishman Biotech (Schutz Dishman), is engaged in the business of manufacturing of bulk drugs, drug formulations and performance chemicals in India for export markets. Its plant is USFDA approved and is located in the existing campus of Dishman's Bavla manufacturing facility in Ahmedabad. The acquisition will help the company in backward integration for some of its existing products and for manufacturing other APIs. Presently, the company is holding 22.33% stake in Schutz Dishman and after acquisition of further 50% stake, Schutz Dishman will become subsidiary of the company.

ABM Knowledgeware said that the company has fixed 11 April 2016 as the record date for 5-for-1 stock split proposal. The announcement was made after market hours yesterday, 31 March 2016.

Powered by Capital Market - Live News

Also Read

First Published: Apr 01 2016 | 8:27 AM IST

Next Story