Sensex holds positive; telecom scrips in demand
The market remained volatile in mid-afternoon trade, with movement restricted to a relatively narrow range. IT shares firmed up and L&T edged higher. Telecom shares and Reliance Industries (RIL) held firm.
At 14:31 IST the Sensex was up 28 points, at 14,216. It had firmed up to 14,247 at 13:37 IST, a gain of 58.51 points for the day. The benchmark index had also slipped to 14,190 by 14:24 IST.The Sensex recovered from the the red in early-afternoon trade.
HDFC Bank trips
Private sector HDFC Bank was down 1.30% to Rs 1001.40, after a block deal was struck in the counter on BSE.A deal for 12.15 lakh shares of HDFC Bank was struck on BSE at Rs 1004.50 (13:21 IST). The identities of the buyer as well as seller were not immediately known.The counter clocked 17.04 lakh shares on BSE.
The HDFC Bank scrip has declined in the last few days. From Rs 1100.55 on 8 February, it slipped to Rs 1014.50 by 21 February 2007, as selling continued following the steep 50-basis-point hike in the cash reserve ratio requirement (CRR) recently.
CRR is the portion (expressed as a per cent) of depositors' balances that banks must have on hand as cash. By changing the CRR, the central bank can change the money supply in a country. Hiking the CRR will suck money out of the system, which, in turn, will lead to further interest rate hikes and higher borrowing costs.
The hike will lead to likely hike in corporate loan rates, home loan rates, auto loans and rates for personal loans. The central bank said the cash reserve ratio will rise to 6% from 5.5% in two stages, the first on 17 February 2007 and the second on 3 March 2007, to rein in inflation and credit growth.
Earlier this month, HDFC Bank signed a memorandum of understanding (MoU) with an Italian bank, Banca Monte dei Paschi di Siena, to offer banking services to each other's corporate customers operating in their respective countries.
Both banks will assist their customers on commercial (imports and exports, including shipment services, payment orders, among others) and financial transactions (investment activities, foreign direct investments, pre-export financing and trade financing) between Italy and India.
These services will include remittances and bank guarantees. The Italian bank operates in India through its representative office set up in 2006 in Mumbai.
HDFC Bank has reported 31.7% growth in net profit for Q3 December 2006 at Rs 295.64 crore. The net profit was within market expectations. Net interest income (NII) rose 38.4% to Rs 928.63 crore (Rs 670.61 crore), beating market expectations. Other income rose 26% to Rs 373.30 crore (Rs 296.13 crore).
In Q3 December 2006, HDFC Bank raised Rs 478.50 crore as Upper Tier II capital in the form of subordinated bonds.
In late-December 2006, HDFC Bank raised the benchmark prime lending rate (BPLR) by a steep 150 basis points. The bank also increased its deposit rates by 50-75 basis points, following a similar increase in June 2006. But only a small proportion of HDFC Bank's loans are linked to the PLR. This is because most of the bank's retail and corporate lending is done at fixed rates, and is not directly linked to the BPLR.
In November 2006, HDFC Bank received RBI approval for setting up new branches and offsite ATMs. HDFC Bank was earlier barred from opening new branches and demat accounts after being found guilty of flouting 'Know Your Customer' norms in an IPO scam that came to light in 2005. As on 31 December 2006, HDFC Bank’s total number of branches (including extension counters) and the ATM network stood at 583 and 1471, respectively.
At 14:31 IST the Sensex was up 28 points, at 14,216. It had firmed up to 14,247 at 13:37 IST, a gain of 58.51 points for the day. The benchmark index had also slipped to 14,190 by 14:24 IST.The Sensex recovered from the the red in early-afternoon trade.
HDFC Bank trips
Private sector HDFC Bank was down 1.30% to Rs 1001.40, after a block deal was struck in the counter on BSE.A deal for 12.15 lakh shares of HDFC Bank was struck on BSE at Rs 1004.50 (13:21 IST). The identities of the buyer as well as seller were not immediately known.The counter clocked 17.04 lakh shares on BSE.
The HDFC Bank scrip has declined in the last few days. From Rs 1100.55 on 8 February, it slipped to Rs 1014.50 by 21 February 2007, as selling continued following the steep 50-basis-point hike in the cash reserve ratio requirement (CRR) recently.
CRR is the portion (expressed as a per cent) of depositors' balances that banks must have on hand as cash. By changing the CRR, the central bank can change the money supply in a country. Hiking the CRR will suck money out of the system, which, in turn, will lead to further interest rate hikes and higher borrowing costs.
The hike will lead to likely hike in corporate loan rates, home loan rates, auto loans and rates for personal loans. The central bank said the cash reserve ratio will rise to 6% from 5.5% in two stages, the first on 17 February 2007 and the second on 3 March 2007, to rein in inflation and credit growth.
Earlier this month, HDFC Bank signed a memorandum of understanding (MoU) with an Italian bank, Banca Monte dei Paschi di Siena, to offer banking services to each other's corporate customers operating in their respective countries.
Both banks will assist their customers on commercial (imports and exports, including shipment services, payment orders, among others) and financial transactions (investment activities, foreign direct investments, pre-export financing and trade financing) between Italy and India.
These services will include remittances and bank guarantees. The Italian bank operates in India through its representative office set up in 2006 in Mumbai.
HDFC Bank has reported 31.7% growth in net profit for Q3 December 2006 at Rs 295.64 crore. The net profit was within market expectations. Net interest income (NII) rose 38.4% to Rs 928.63 crore (Rs 670.61 crore), beating market expectations. Other income rose 26% to Rs 373.30 crore (Rs 296.13 crore).
In Q3 December 2006, HDFC Bank raised Rs 478.50 crore as Upper Tier II capital in the form of subordinated bonds.
In late-December 2006, HDFC Bank raised the benchmark prime lending rate (BPLR) by a steep 150 basis points. The bank also increased its deposit rates by 50-75 basis points, following a similar increase in June 2006. But only a small proportion of HDFC Bank's loans are linked to the PLR. This is because most of the bank's retail and corporate lending is done at fixed rates, and is not directly linked to the BPLR.
In November 2006, HDFC Bank received RBI approval for setting up new branches and offsite ATMs. HDFC Bank was earlier barred from opening new branches and demat accounts after being found guilty of flouting 'Know Your Customer' norms in an IPO scam that came to light in 2005. As on 31 December 2006, HDFC Bank’s total number of branches (including extension counters) and the ATM network stood at 583 and 1471, respectively.
posted by SY at 3:08 PM
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