ICICI Bank will be in focus. Media reports alleged that the bank sanctioned Rs 3250 crore of loans to Videocon Group because its chairman Venugopal Dhoot supposedly had dealings with NuPower Renewables, founded by ICICI Bank's MD & CEO Chanda Kochhar's husband Deepak Kochhar.
ICICI Bank clarified to the bourses after market hours on 28 March 2018 that its board reviewed the bank's internal processes for credit approval and found them robust. The board also expressed and reposed full faith and confidence in its MD & CEO, Chanda Kochhar.
In 2012, a consortium of over 20 banks and financial institutions sanctioned facilities to the Videocon group (Videocon Industries and 12 of its subsidiaries/associates as co-obligors) for a debt consolidation programme and for the group's oil and gas capital expenditure programme aggregating approximately Rs 40000 crore.
ICICI Bank was not the lead bank for this consortium and the bank only sanctioned its share of facilities aggregating approximately Rs 3250 crore which was less than 10% of the total consortium facility in April 2012. ICICI Bank's share of the banking sector's exposure to the Videocon group was less than 10% while around 90% of the loans were sanctioned by other banks and Financial Institutions.
Hence the board concluded that there is no question or scope of any favouritism, nepotism or quid-pro-quo. The bank clarified that none of the investors of NuPower Renewables are borrowers of ICICI Bank.
In a separate announcement on 29 March 2018, ICICI Bank said that the Reserve Bank of India (RBI) imposed through an order dated 26 March 2018, a monetary penalty of Rs 58.90 crore on ICICI Bank for non-compliance with directions issued by RBI on direct sale of securities from its Held To Maturity (HTM) portfolio and specified disclosure in this regard.
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ICICI Bank clarified that RBI has imposed a penalty on the bank for continued sale of government securities classified as HTM. ICICI Bank continued with the sales from HTM category for a few weeks during the quarter ended 31 March 2017, due to a genuine misunderstanding on the timing of the applicability of RBI's direction in this matter. As per RBI guidelines, the bank had disclosed in its annual report for FY2017 that it had sold more than 5% of investments categorised as HTM. However, the bank had not made the specified additional disclosure at that time. The bank has subsequently been making the specified disclosure as directed by RBI in the audited financial results since the quarter ended 30 June 2017.
During the current year, i.e., FY 2018, the Bank has sold less than 5% of securities from its HTM portfolio. The bank would like to re-iterate that it continues to give utmost importance to regulatory compliance and endeavors to meet supervisory expectations.
Maruti Suzuki India said that its total sales rose 14.9% to 1.60 lakh units in March 2018 over March 2017. The announcement was made on Sunday, 1 April 2018.
Tata Motors registered a growth of 35% at 69,440 units in March 2018 as against 51,309 units in March 2017 due to the continued strong sales performance of its commercial and passenger vehicles business in the domestic market. The announcement was made on Sunday, 1 April 2018.
Coal India announced the provisional production and offtake figures of the company and its subsidiaries in March 2018. The company achieved 105% of the targeted coal production at 72.28 million tonnes in March 2018. Actual offtake was 95% of the targeted offtake at 55.19 million tonnes in March 2018. The announcement was made on Sunday, 1 April 2018.
In a separate announcement on Sunday, 1 April 2018, Coal India said it is working out the modalities to raise coal sales bills on GCV (Kcal/kg) basis and the exact date of implementation would be intimated soon. Till then, the present mode of raising of coal sales bills would continue. This has the approval of the competent authority of the company.
Tata Power announced that its board has approved the sale of its defense business to Tata Advance Systems, a wholly-owned subsidiary of Tata Sons at an enterprise value of Rs 2230 crore (out of which Rs 1040 crore payable at the time of closing and Rs 1,190 crore payable on achieving certain milestones), subject to Government & other approvals. This is as part of the company's plan to monetize its non-core assets and improve the balance sheet. This will be subject to shareholders approval. The announcement was made on Thursday, 29 March 2018.
Some stock specific action will be witnessed on account of rejig in the Nifty 50 index. Bajaj Finserv, Grasim Industries and Titan Company will replace Ambuja Cements, Aurobindo Pharma and Bosch in the Nifty 50 index from today, 2 April 2018.
Sandhar Technologies debuts on the secondary equity market today, 2 April 2018. The company had priced the initial public offer (IPO) at the top end of the Rs 327 to Rs 332 a share price band.
Karda Constructions debuts on the secondary equity market today, 2 April 2018. The company had priced the initial public offer (IPO) at the top end of the Rs 175 to Rs 180 a share price band.
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