TECHNICAL TREND ( NIFTY - BANK NIFTY FUTURES )

NIFTY FIFTY : - The Equity benchmark Nifty 50 opened in a positive note on Monday

up by 38 points or 0.43 per cent at 8735. The benchmark Index Nifty did not show any

clear movement last week after testing 8800 levels, it corrected by 100 points on low

volumes to close at 8715. This week being a truncated week with two successive holidays

we have seen seen some negative movement. Nifty Closed Almost Flat in A Holiday

Thinned Trade Amid Lackluster Global Cues And Caution Before Q2 Earnings &

IIP/Inflation Data. The Market saw a significant decline in a Thursday trading session

after the US Federal Reserve minutes boosted the case for higher interest rates. Nifty

dropped to a day low of 8541 approximately so far from a previous closing of 8708. Nifty

may consolidate between 8840-8540 range and any breakout or breakdown with volumes

may result in a 300-450 point movement on either side. The Significance Resistance for

Nifty is 8630-8740 and Support is 8520-8416.

BANK NIFTY : - The Bank Nifty opened in a Positive Note on Monday up by 89 points

or 0.45 per cent at 19489. On Monday Banking shares saw small profit booking after a

rate cut and some under performance was witnessed despite holding on to the support of

19500. The Bank Nifty was showing Considerable weakness and had closed at 19379 on

Monday, which is 300 points near range low of 19079. Banks may report some

improvements in fresh NPA/NPL creation on a sequential basis rather than mere

recognition, effective resolution may be more important as of now and transfer of Net

Performing Assets to some other Assets Reconstruction Company may ease the burden

on the banks temporarily, but it will not solve the basic problem of low capacity

utilization & tepid demand. Bank Nifty immediate support is around 19106-19026* area

and below that expect 18761-18519* area.On the upside, for any strength, Bank Nifty

need to sustain above 19600-19700* zone for further rally up to 19900-20000 area. The

Crucial Levels for Nifty is 19112-19348 Upside and 18880-18640 is down side.

Monday, 17 October 2016

TECHNICAL VIEW (NIFTY- BANK NIFTY FUTURES )

NIFTY

DAILY R2 R1 PP S1 S2

8740 8632 8578 8524 8416

WEEKLY R2 R1 PP S1 S2

9232 8826 8623 8420 8014

MONTHLY R2 R1 PP S1 S2

9436 8908 8644 8380 7852

BANK NIFTY

DAILY R2 R1 PP S1 S2

19348 19112 18994 18876 18640

WEEKLY R2 R1 PP S1 S2

21091 19771 19111 18451 17131

MONTHLY R2 R1 PP S1 S2

22172 20206 19223 18240 16274

MOVING AVERAGE 21 DAYS 50 DAYS 100 DAYS 200 DAYS

NIFTY 8714 8706 8485 8031

BANK NIFTY 19626 19436 18680 17193

PARABOLIC SAR DAILY WEEKLY MONTHLY

NIFTY 8960 433 6907

BANK NIFTY 20613 15419 13769

PATTERN FORMATION ( NIFTY )

Detail of Chart - On the above given daily Chart of NIFTY has Applied Bollinger Band

along with Parabolic SAR both the indicators are Leading, and gives signal of Buying or

Selling. Although the Uses of Bollinger Band differ from traders to traders Some

buywhen it break the Middle Band from below side and some buy when it break Upper

Band. We assume that the Breaking the Middle Band Usually a Bull side Signal as we

can see that. Although On the Above given Chart of Nifty both the Indicators are

indicating Bull Movement for next week. Now the market has Shifted in a Cautious

mode. However the Nifty Trend Now Seems clear toward the Next level of 8780-8800

both the Indicators are Indicating break above 860 would be the Important level for the

Nifty.

PATTERN FORMATION ( BANK NIFTY )

Detail of Chart - On the Above given Chart of Bank Nifty daily Chart has Applied the

Bollinger Band along With Parabolic SAR , Both are the Indicators are Showing the rally

may Continue toward the 19900-20200 level for Bank Nifty in Near-Term. The Bank

Nifty has 20570 around in last trading Week if it is able to Sustain the Level of 19750

will move toward the 20200 in two-three trading Sessions. The Important levels for Bank

Nifty is 19560-19380 is Down side While 19980-20200 is Up side.

NSE EQUITY DAILY LEVELS

COMPANY

NAME

R2 R1 PP S1 S2

ACC EQ 1660 1649 1639 1628 1618

ALBK EQ 76 75 74 73 72

AMBUJACEM EQ 256 254 253 251 250

ASIAN PAINT EQ 1228 1218 1211 1201 1194

AXISBANK EQ 529 524 520 515 511

BAJAJ-AUTO EQ 2870 2838 2817 2785 2764

BANKBARODA EQ 157 155 154 152 151

BANKINDIA EQ 113 112 111 110 109

BHEL EQ 133 133 132 132 131

BHARTIARTL EQ 310 307 305 302 300

CIPLA EQ 594 590 587 583 580

COALINDIA EQ 320 317 315 312 310

DLF EQ 154 152 149 147 144

DRREDDY EQ 3079 3055 3038 3014 2997

GAIL EQ 444 437 425 418 406

GRASIM EQ 1010 1002 993 985 976

HCLTECH EQ 834 823 811 800 788

HDFC EQ 1353 1335 1323 1305 1293

HDFCBANK EQ 1275 1268 1261 1254 1247

HEROMOTOCO EQ 3532 3504 3489 3461 3446

HINDALCO EQ 157 156 154 153 151

HINDUNILVR EQ 863 854 845 836 827

ICICIBANK EQ 245 244 241 240 237

ITC EQ 241 241 239 239 237

INDUSIND BANK EQ 1239 1228 1217 1206 1195

INFY EQ 1120 1073 1034 987 948

JINDALSTEL EQ 79 78 77 76 75

KOTAKBANK EQ 791 786 778 773 765

LT EQ 1502 1488 1463 1449 1424

M&M EQ 1387 1373 1363 1349 1339

MRF EQ 54018 53138 52669 51789 51320

MARUTI EQ 5805 5748 5708 5651 5611

ONGC EQ 283 280 275 272 267

ORIENTBANK EQ 126 125 123 122 120

RCOM EQ 49 48 47 46 45

RELCAPITAL EQ 565 560 554 549 543

RELIANCE EQ 1095 1086 1074 1065 1053

RELINFRA EQ 578 575 569 566 560

RPOWER EQ 48 47 47 46 46

SBIN EQ 255 254 251 250 247

SSLT( VEDL) EQ 200 197 195 192 190

SUNPHARMA EQ 753 748 743 738 733

TATAMOTORS EQ 559 556 553 550 547

TATAPOWER EQ 79 79 78 77 77

TATASTEEL EQ 415 413 410 408 405

UNIONBANK EQ 143 142 142 141 141

TOP 15 ACHIEVERS // TOP 15 LOOSERS

NEXT WEEK STARS( AS PER TECHNICAL ANALYSIS )

NSE FUTURE

NSE FUTURE : SELL TATASTEEL FUTURE BELOW 409 TGT 392 SL411

NSE FUTURE : BUY ULTRACEMCO FUTURE ABOVE 4040 TGT 4100 SL 4020

NSE FUTURE : SELL APOLLOTYRE TYRE BELOW FUTURE BELOW 215 TGT

209 SL 216.50

NSE CASH

NSE CASH : BUY CROMPTON NSE CASH ABOVE 182 TGT 194 SL 178.

NSE CASH : BUY UJJIVAN NSE CASH ABOVE 460 TGT 490 SL 448.

NSE CASH : BUY KAJARIACER NSE CASH ABOVE 720 TGT 775 SL 702.

SR.NO SCRIPT NAME PREV CLOSE CMP % CHANGE

1 ZEE LIMITED 572 528 -7.64 %

2 IDEA CELLULAR 80 74 -6.63 %

3 HDFC 1403 1316 -6.24 %

4 BANK BARODA 163 153 -6.04 %

5 ADANI PORTS 266 254 -4.68 %

6 BHARTI AIRTEL 319 305 -4.40 %

7 HUL 877 842 -3.99 %

8 AURO PHARMA 855 823 -3.77 %

9 ICICI BANK 250 241 -3.53 %

10 BAJAJ AUTO LTD. 2883 2793 -2.95 %

11 GRASIM INDUS 1024 995 -2.91 %

12 TATA POWER 80 78 -2.85 %

13 RELIANCE INDUS 1109 1077 -2.83 %

14 SBIN 258 252 -2.55 %

15 AXIS BANK LTD. 533 520 -2.47 %

SR.NO SCRIPT NAME PREV CLOSE

CMP % CHANGE

1 RAMCO INDUS 179 217+ 21.03 %

2ABAN OFFSHORE 223 261 +16.86 %

3 NIIT TECHNO 408 440+7.85 %

4PETRONET LNG 373 400 +7.38 %

5 RAMCO CEMENT 618 660+6.75 %

6MINDA INDUS 324 345 +6.42 %

7 TRIDENT LTD. 54 57+6.20 %

8JINDAL STEEL 74 79 +6.04 %

9 L&T FINANCE 93 99+5.69 %

10GODFREYPHILIPS 1339 1406 +5.06 %

11 D B CORP 381 398+4.54 %

12CYIENT LTD. 482 502 +4.11 %

13 BEML LIMITED 908 945+4.10 %

14GAIL LIMITED 414 430 +3.95 %

15 ONGC 267 277+3.63 %

NSE - WEEKLY NEWS LETTERS

✍ TOP NEWS OF THE WEEK

Indian growth makes it natural recipient of higher FDI: Arun Jaitley - India, since it

is growing much faster as compared to the rest of the world, has become natural recipient

of a higher level of foreign direct investment , Finance Minister Arun Jaitley has said.

"India has become far more aspirational than ever before. So compared to the rest of the

world, we are doing much better," Jaitley, who is here attending the annual fall meeting

of the International Monetary Fund and the World Bank, told reporters on Sunday. "Since

India is growing much faster, as compared to the rest of the world, it has become the

natural recipient of a higher level of FDI," he said. "For the rest of the world, whereas we

aspire to do better in this adverse environment, they consider it extremely impressive. So

there is a lot of global buzz around India," he added. The Finance Minister, however "put

a caveat", saying by India's own yardstick, its current growth rate is not enough. "We can

do still better, which in a sense, is not a bad thing to happen. To be restless, to be

impatient is a sign of wanting to do better," he said. "I think with the kind of investments,

both domestic and international, that we are getting, a reasonable amount of growth will

always be there. If growth returns to the world, then you would probably move up.

Structural reforms like Goods and Services Tax can only add to that," he added.

Credit quality improvement still not on horizon: ICRA - Credit quality of corporates

continued to remain weak in the first half of the current financial year with the domestic

rating agency ICRA upgrading just 287 firms against downgrades of 314 companies out

of the around 7,000 entities with loans. This makes the ratio of upgrades to downgrades,

or the credit ratio, at a weak 0.9, a against 1.94 a year ago, or 460 upgrades against 237

downgrades, suggesting improvement in credit quality is still some time away. Over the

past few quarters, the number of downgrades shot up following a rise in stress in sectors

like metals, engineering, gems and jewellery and textiles, ICRA said in a note today,

adding the volume of rating upgrades has been declining. ICRA's head of credit policy

Jitin Makkar said, " the reduction in instances of upgrades, a trend that started in the

second half of FY15, continued in the first half of FY 17 as power, real estate and

construction, metals and engineering sectors stressed. He noted strengthening in credit

quality of sectors like pharma and IT is not imminent in backdrop of increasing

regulatory intervention and slowing client spending overseas. further upside risks to

downgrades are limited the agency said.

Government wants PSBs’ midsize corporate borrowers shifted to bond market - The

government wants state-run banks to nudge their midsized corporate borrowers to seek

credit through alternative sources, help develop bond market and create space for banks

to lend to small and medium enterprises. Simultaneously, the government is working with

IIFCL and Life Insurance Corporation to make credit enhancement facilities available to

such borrowers, which will allow them to easily access the bond market. “This will also

help banks diversify their risk. We expect some of the larger banks will take lead in

educating borrowers and also provide support, wherever necessary,” said a senior

government official, who did not wish to be identified. Banks will also be asked to

explore takeout financing schemes for exposure to infrastructure sector, the official said.

Some of these issues were discussed in the performance review of state-run banks held

last month. Reserve Bank of India deputy governor R Gandhi had, last month, expressed

concern that the corporate bond market is accessible largely to top-rated borrowers.

“Efforts in this respect should be focused on facilitating access of low credit borrowers to

this market,” Gandhi had said. As per RBI data, more than 85% of corporate bond

issuance in India is by borrowers with rating of ‘A’ and above. “We want banks to free up

their capital and drive investment. If the borrowers are regulated through markets it will

also instil more discipline in them,” said the government official cited earlier. Discussions

are on with all regulators to further develop the bond market, the official said.

No Fiscal worries, Government spending won’t falter: Arun Jaitley - The finance

ministry wants ministries to maintain spending in line with budget allocations, dismissing

fiscal concerns that have arisen halfway through the year after the recent spectrum

auction fell short of target and the August deficit number was the highest in seven years.

Any shortfalls will be made up by collections under the just-concluded black money

disclosure scheme besides which stakes held in companies through the Specified

Undertaking of the Unit Trust of India will provide an added cushion without the

government having to scale back spending to meet the fiscal deficit target of 3.5 per cent

of GDP for the fiscal year, a senior finance ministry official said. “We want ministries to

spend what has been allocated to them,” the official said. “We are on track on the fisc.”

At the end of August, the fiscal deficit was at 76.4 per cent of what’s been budgeted for

the year, the highest since FY 09 for the month, sparking concerns that Finance Minister

Arun Jaitley may struggle to meet the target. The government will get Rs 32,000 crore

from spectrum auction this year against an anticipated Rs 64,000 crore while the seventh

pay commission award is expected to cost more than what has been set aside.

GST lends more weight to India's 8% growth projection: S&P - : Calling Goods and

Services Tax as the most important structural reform till date by the Modi government,

S&P Global Ratings today said the passage of the indirect tax law gives it additional

conviction of India clocking 8 per cent growth in the next few years. "India's GST

passage gives us additional conviction around our 8%-ish GDP growth forecast over the

next few years," it said in a report titled 'Asia-Pacific steadies while China goes silent'.

The rating agency had last month projected India to clock a "steroid-free" growth of 8 per

cent in coming years. "The GST passage is arguably the most important structural reform

to date by the Modi government and will improve efficiency, cross-state trade and tax

buoyancy," it said today. It saw a reasonably firm pick-up in Asia-Pacific's macro

momentum indicators, with pick-up in retail sales offering the clearest sign in most of the

region's economies.with pick-up in retail sales offering the clearest sign in most of the

region's economies. This, it said, stems from rising income, which in turn is part of the

region's evolving growth dynamics, with consumption playing a larger role.

Growth remains subdued and outlook is clouded from economic and political

sources: Arun Jaitley - The recovery from the global financial crisis has not been as

healthy as we would have liked. Growth remains subdued and the outlook is clouded by

uncertainties emanating from both economic and political sources. Against this backdrop,

we also broadly agree with the way forward proposed in the Managing Director’s Global

Policy Agenda. We particularly welcome the focus on measures to make growth more

broad based. We support the proposals for identifying policy space. We believe that the

IMF represents an unparalleled pool of economic knowledge and experience and has a

very important role to play in advising its membership on the way forward. This is

particularly true of those members whose capacities of economic policy formulation and

implementation are less developed. However, the IMF also needs to continue working on

removing perceptions of lack of evenhandedness. The Fund’s smaller members should be

confident that they are considered as important as the larger ones, and Fund conditionality

in programs is not unnecessarily burdensome for them.

Chairman, monetary policies in advanced economies have stayed accommodative for an

unprecedentedly longtime. In today’s interconnected world, these policies inevitably

produce spillovers to EMDEs. We have consistently maintained that monetary policies in

advanced economies should be mindful of the risks caused to EMDEs. We would expect

that while the IMF analyzes the implications of low and negative interest rates, it should

also analyze the implications of these rates for EMDEs. We look forward to the IMF’s

work to better understand the drivers of the slowdown in productivity growth. We

understand the Fund’s advice to commodity exporters for adjustment and diversification.

However, for a country to diversify its economy over the course of a few years is not an

easy task, particularly at a time when global demand is subdued. Therefore, we would

like the Fund to be more concrete in its advice for diversification, with a set of focused

recommendations for action, which are consistent with a country’s resources and

capabilities. Chairman, with inward looking policies finding support of a significant part

of the population in some countries, the Fund’s call for and focus on international

cooperation are timely. As the Global Policy Agenda mentions, such cooperation should

cover diverse areas like trade integration, financial regulatory reform and managing

spillovers. Recently, the Fund’s work plan has expanded to cover areas where the Fund

does not have as much expertise as it has in macroeconomic policies. These include

policies to deal with the impact of climate change, foster financial inclusion, tackle

growing inequality and so on. The Fund would do well to collaborate with the relevant

international organizations as it takes on these work-streams, while also making efforts to

enhance its in-house capabilities through training and recruitment Finally, Chairman, let

me say that we are somewhat disappointed that the deadline for completing the 15th

Review will be pushed back to the 2019 Spring Meetings. Given that there is broad

agreement on maintaining the current overall lending capacity of the Fund and that the

Fund’s resource pool is excessively tilted toward borrowed resources, there is a dire need

for increasing quotas. Recent work by the Fund also points to the need for realigning

quota shares to reflect the changed economic realities. All this can be achieved as part of

the 15th Review. Delays in General Reviews of Quotas erode the Fund’s legitimacy and

credibility, and are against the provisions of the Articles of Agreement. I do hope that the

deadlines that will now be set for completing the 15th Review, including agreement on a

new quota formula as the basis for realignment of quota shares, will be honored and

adhered to in letter and spirit. It is also important that the new quota formula should give

more weight to PPP GDP to better reflect the true economic strength of EMDEs.”

Industrial output contracts 0.7 year-on-year in August - India’s industrial prodution

fell 0.7% in August, slighlty slower than 2.5% decline in July. Data released by the

statistics office showed a 0.3% fall in manufacturing production in August and a sharp

5.6% decline in mining output compared with a 0.8% growth in July. Manufacturing as a

sector has the highest weight in the Index of Industrial Production. The pace of electricity

generation marginally improved 0.1% compared with moderation in the previous month.

July IIP reading was revised to a 2.5% contraction, compared with the 2.4% decline

reported earlier. Capital goods output nosedived 22.2% July. It has been falling for the

last few months. The decreased pace of slowing industrial activity was evident in seven

out of the 22 industry groups in the manufacturing sector in August- a marked

improvement from July. Consumer goods production rose 1.1% in August with the output

of consumer non-durables — an indicator of rural demand – rising a mere 0.1% and that

of consumer durables a gauge of urban demand, rising 2.3%.

✍ TOP ECONOMY NEWS

The government will have to raise Rs. 320 billion more to meet the fiscal deficit target of

3.5% of gross domestic product for 2016-17, as it will get just half of the Rs. 640 billion

it had budgeted for 2016-17 from spectrum sale.

Moving fast on its ambitious waterways project, the government has said it will augment

the process of development for 36 waterways in the first phase and soon float tenders to

invite bids for the project.

The mines auction, which kicked off earlier this year, is now pulling investors in hordes

as 10 companies snapped up 16 mines, translating into a revenue of close to Rs. 595

billion for states.

The Finance Ministry is likely to finalise contours of listing of public sector general

insurance companies in a couple of months.

Singapore is seeking more time to revise the two-decade-old tax treaty with India, saying

its investors need more time to shift to source-based taxation.

India's merger and acquisition activity has reached its highest on record, up 36.2% by

value at USD 46 billion across 278 deals as compared to the whole of 2015, which saw

USD 33.8 billion across 419 deals.

The finance ministry said it will take away from the Reserve Bank of India the powers to

manage public debt or government borrowings in about 2 years and has set up a cell for

an interim period to smoothen the transition so that markets do not witness disruptions.

UTI Mutual Fund has got the mandate to manage 25% of the incremental flows into

Employees' Provident Fund Organisation that will be invested in the stock market through

the exchange-traded fund route.

Telecom spectrum auction ended with bids worth Rs. 657.89 billion over the last five

days, a mere 40% of the total worth of spectrum that was placed on the block.

Over 90% of foreign direct investment in the country is coming through automatic route

and the commerce ministry is further relaxing the FDI regime.

Industrial production contracted for the second straight month by 0.7% in August. The

pace of fall decelerated as the decline was an eight month low of 2.5% in July.

Investments into domestic capital markets through participatory notes rose to the highest

level in five months at Rs 2.16 trillion in August.

Stressed loans in India's banking sector crossed USD 138 billion in June, an increase of

nearly 15% in just six months that suggests a state clean-up effort will take longer and

cost more than expected.

India's gold imports declined by 58.96% to 270 t from January to September from 658 t

that were shipped in during the corresponding period of last year.

The year 2016 is set to be a record-breaking year for Indian IPO market as 50 firms have

entered Dalal Street with initial share-sale offers to garner USD 2.93 billion and an

impressive pipeline is already in place for the coming months.

The government will have to raise Rs. 320 billion more to meet the fiscal deficit target of

3.5% of gross domestic product for 2016-17, as it will get just half of the Rs. 640 billion

it had budgeted for 2016-17 from spectrum sale.

The Finance Ministry is likely to finalise contours of listing of public sector general

insurance companies in a couple of months.

Moving fast on its ambitious waterways project, the government has said it will augment

the process of development for 36 waterways in the first phase and soon float tenders to

invite bids for the project.

The mines auction, which kicked off earlier this year, is now pulling investors in hordes

as 10 companies snapped up 16 mines, translating into a revenue of close to Rs. 595

billion for states.

Singapore is seeking more time to revise the two-decade-old tax treaty with India, saying

its investors need more time to shift to source-based taxation.

✍ TOP CORPORATE NEWS -

ONGC Limited has signed a preliminary pact to acquire a stake and operate the KG

Basin block of Gujarat State Petroleum Corp. , which had announced a major natural gas

discovery and spent USD 3 billion to develop it.

Idea Cellular Limited acquisition of airwaves in this year’s auction will result in a Rs.

10 billion increase in planned capital expenditure for the year.

The government, looking to get IDBI Bank Limited stalled disinvestment plan moving

again, has instructed the lender’s management to bring its stake down to 52%.

Adani Transmission Limited has completed the acquisition of the GMR Energy

transmission assets, which it bought in July this year.

Reliance Defence and Engineering Limited, a subsidiary of Reliance Infrastructure

Limited, has signed a memorandum of understanding with ALLRIG USA for services in

the oil and gas sector in India and the south-east region.

Mahindra & Mahindra Limited became the first Indian company to announce its

internal carbon Price of USD 10/t of carbon emitted.

Standard Chartered Private Equity has increased its stake in Redington India by

acquiring 3.48% shares in the company, taking up the total shareholding to 15.41%,

worth over Rs. 1.50 billion.

Reliance Communications Limited said Bombay High Court has approved its deal to

acquire Russian conglomerate Sistema's Indian telecom unit, Sistema Shyam Teleservices

Limited, that operates under the MTS brand.

The government is likely to launch disinvestment in NMDC Limited, NALCO and

MOIL Limited in the January-March quarter of the current fiscal, which could fetch

about Rs. 60 billion to the exchequer.

Oil India Limited has received environment clearance for Rs. 2.20 billion development

drilling project in Jaisalmer district of Rajasthan.

Ajanta Pharma Limited said its new formulations facility at Guwahati will be

commercialised before March 2017.

Jubilant Life Sciences Limited has received the final approval from the US health

regulator for Darifenacin Extended-Release Tablets, used for the treatment of urinary

incontinence.

Granules India Limited has received approval from the US health regulator for anti-

inflammatory drug Ibuprofen tablets, in the US market.

Bharti Airtel Limited has relaunched its MyAirtel app with new ‘Airtel Apps’ section

that will have a collection of top apps under a single interface, in addition to the existing

selfcare features.

Dr. Reddy's Laboratories Limited has launched Aripiprazole tablets in 2mg, 5mg,

10mg, and 30mg, a therapeutic equivalent generic version of Ablify tablets in the US

market following the approval from the US Food and Drug Administration.

Coal India Limited has tied up with Andhra Pradesh Generation Company for

substituting imported fuel, used for blending purposes, by high quality Ranigunj coal.

The initiative is part of the CIL’s effort to market Ranigunj coal that has few takers.

As it looks to take on Reliance Jio heads on in providing high-speed broadband internet

services, Bharti Airtel Limited has deployed a technology that will deliver speeds of up

to 100 Mbps on its fixed broadband footprint in 87 cities.

Reliance Broadcast Network is in advanced talks with the Zee Entertainment

Enterprises Limited. The deal is expected to be in the range of Rs. 18-20 billion.

✍ TOP BANKING AND FINANCIAL NEWS OF THE WEEK

Stung by high cost of funds when demand for loans is at the weakest in nearly a decade,

state-run banks, which used to rely on long-term fixed deposits, are increasingly not

accepting any fixed deposit beyond five years. This also reflects a dip in demand for

long-term loans for infrastructure projects like power plants or ports, which require

funding for anywhere between seven and twelve years, say bankers. Lenders like State

Bank of India, UCO Bank and Punjab National Bank are discouraging depositors from

locking up funds at a higher rate for longer periods. By not contracting long-term, high-

cost funds banks are also playing safe in a falling interest rate regime where customers

avoid borrowing for longer periods.

India’s largest private sector lender, ICICI Bank Limited had tied up with Emirates

NBD — a leading banking group in the Middle East — to execute transactions in

international trade finance and remittance using blockchain technology. ICICI Bank is the

first few banks globally to exchange and authenticate remittance transaction messages

electronically on blockchain in real time. The usage of blockchain technology simplifies

the process and makes it almost instant—to only a few minutes. “We have also marked a

milestone by piloting a blockchain network with Emirates NBD as a partner and have

successfully executed cross-border open account trade finance and remittance

transactions,” Chanda Kochhar, MD & CEO, ICICI Bank said. Kochhar added that the

emergence of blockchain will play a significant role in banking in the coming years by

making complex bilateral and multi-lateral banking transactions seamless, quick and

more secure

Public sector banks which made losses or experienced sharp dip profit in the last fiscal

could lose their ability to service coupon on additional tier 1 bonds issued under Basel III

capital regulations. rating company Crisil said in a report. A sharp dip in profitability and

mounting losses could wipe out the revenue reserves of some public sector banks, Crisil

said. As many as 13 of the 21 public sector lenders reported losses for fiscal 2016, and

almost half of them could do so again this fiscal, the rating company said. Crisil however

did not divulge the name of the banks which are in risk of defaulting AT1 bond coupon

payment. As on date, 14 banks have Rs 22,600 crore of additional tier 1 bonds

outstanding.

Small finance bank license holder Utkarsh Micro Finance has raised Rs. 395 crore by

selling fresh shares from a clutch of Indian investors which will help it comply with one

of Reserve Bank of India’s conditions to start banking operations. Varanasi based Utkarsh

has sold shares to eight Indian institutional investors which will reduce its foreign

shareholding to 48.5% from 85% helping to comply with RBI norms which stipulate that

foreign ownership in these new banks must be must be at 49% or below. In a press

release on Wednesday Utkarsh said HDFC Ergo General Insurance Co. Ltd, HDFC

Standard Life Insurance Co Ltd, ICICI Prudential Life Insurance Co Ltd, RBL Bank Ltd.,

Shriram Life Insurance Co. Ltd, Small Industries Development Bank of India and local

private equity funds such as Arpwood Investments and Faering Capital haver all bought

stakes in the company. It did not give details of their ownership.

To cash in on the 7th Pay Commission payout to government employees, state-owned

Punjab National Bank is offering them home and auto loans at attractive rates of 9.3-

9.8 per cent beginning this month. Besides, the bank said it will offer loans to these

segments without any processing or upfront fee and no documentation charges will be

levied on them. The rate of interest is with effect from October 1, 2016. The Delhi-based

state lender said the objective of the drive- christened as 'PNB Pride' -- is to "ensure

availability of housing and vehicle loan at attractive rates and ensure a house and a car for

all government employees". For housing loan, the floating interest rate has been fixed at

marginal cost of lending rate for one year at 9.3 per cent. For those availing the housing

loan on a fixed rate basis.

Stung by high cost of funds when demand for loans is at the weakest in nearly a decade,

state-run banks, which used to rely on long-term fixed deposits, are increasingly not

accepting any fixed deposit beyond five years. This also reflects a dip in demand for

long-term loans for infrastructure projects like power plants or ports, which require

funding for anywhere between seven and twelve years, say bankers. Lenders like State

Bank of India, UCO Bank and Punjab National Bank are discouraging depositors from

locking up funds at a higher rate for longer periods. By not contracting long-term, high-

cost funds banks are also playing safe in a falling interest rate regime where customers

avoid borrowing for longer periods.

Jammu and Kashmir Bank Limited is willing to offer Islamic banking to customers in

the state and would examine the proposal after taking the Reserve Bank on board, its

chairman Parvez Ahmad said today. "Well, we have not given a serious thought to it, but

there is a lot of demand for Islamic Banking in the state. Few clients who do not want to

have the interest on their saving bank accounts, we do not have the mechanism how to

take care of that particular component. But, we will examine the proposal and we have to

also take RBI on board," Ahmad told reporters here.

Country's largest lender State Bank of India today said it has consistently passed on

Reserve Bank of India rate cuts to borrowers and would further reduce the lending rate in

the near term, benefiting auto and home loan seekers. State Bank of India Chairperson

Arundhati Bhattacharya has said that out of the 1.75 per cent rate cut by the RBI since

January 2015, it has already passed on up to 0.95 per cent to the borrowers.

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