Latest news with #PSUBank
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Business Standard
12 hours ago
- Business
- Business Standard
PSU Bank index jumps 2% as RBI eases norms for new project finance loans
PSU Bank stocks: The public sector bank stocks were rallying on Friday after the Reserve Bank of India (RBI) issued its final guidelines on project finance loans. Snapping a three-day losing streak, the Nifty PSU Bank index surged over 2 per cent to hit an intraday high of 6,899.5 level, compared to the previous day's close of 6,734.3. The index was the lead gainer among the Nifty sectoral indices and outperformed the benchmark Nifty50 index which was slightly up over 1 per cent at day's high. Last checked, the Nifty PSU Bank index was trading at 6,832.75 levels, up 1.46 per cent. Among the index constituents, Punjab National Bank was the top gainer, up by over 3 per cent, followed by Union Bank of India, Canara Bank, Indian Overseas Bank, Bank of India, Central Bank of India and State Bank of India rising in the range of 1 to 3 per cent. RBI guidelines for project finance loans: The new rules, which will come into effect from October 1, 2025, require a general provision of 1.25 per cent on Commercial Real Estate (CRE), and 1 per cent each on Commercial Real Estate-Residential Housing (CRE-RH) and another portfolio during the construction phase. After commencement of repayment of interest and principal, banks have to maintain 1 per cent general provisions on commercial real estate projects during the operational phase, and 0.75 per cent on residential housing (CRE-RH), while 0.40 per cent on all other projects, the central bank said. The final directions are softer than those in the draft norms released in May 2025. The draft proposal suggested 5 per cent standard assets provisioning for under-construction projects. The final regulations give lenders significant relief. According to new norms, under-construction projects carry a 1 per cent standard asset provisioning, compared with the 5 per cent requirement proposed in the draft norms. The standard provisions shall increase for each quarter of deferment of the date of commencement of commercial operations. The requirements for under-construction CRE exposures will be marginally higher at 1.25 per cent. In addition, the requirement of specific provisions on DCCO (Date of Commencement of Commercial Operations) deferred standard assets is cut to a time-based rate of 0.4-0.6 per cent per quarter from a flat rate of 2.5 per cent. According to RBI guidelines, for accounts which have availed DCCO deferment and are classified as 'standard', lenders shall maintain additional specific provisions of 0.375 per cent for infrastructure project loans and 0.5625 per cent for non-infrastructure project loans. Brokerage views According to analysts at Motilal Oswal, the RBI's final project finance norms come as part of the broader wave of supportive regulatory measures aimed at sustaining momentum in the banking sector. "We believe the impact of the revised norms on bank/NBFC profitability will be negligible, as the existing book remains unaffected. For new project loans, any incremental provisioning cost is likely to be passed on to borrowers, especially in a declining rate environment, through yield adjustments," the brokerage said. The brokerage added that the key positive in the final norms is that they apply only to new and upcoming project loans. Existing exposures will continue to follow the current prudential provisioning framework, ensuring there is no disruption to the back-book. Echoing similar views, analysts at Kotak Institutional Equities expect a lower impact from these guidelines compared to the impact from a draft set of guidelines because the incremental provision requirement has been curtailed. The requirement of standard asset provisions for assets under construction is cut from 5 per cent to 1 per cent. "We see this relaxation as yet another step by the regulator toward systemic easing (after the recent relaxations on liquidity, interest rates, PSL, microfinance risk weight and LCR). The headwinds for loan growth are stemming from quality and cost of deposits (LCR compatible deposits), the trade-off between growth and NIM contraction and weak demand for credit from various segments of the economy," the brokerage said. In its report, the brokerage added that it has not seen a reversal in stance from lenders that had tightened their credit filters in retail in the past two years, while they have turned a bit more cautious today on SMEs looking at global factors.
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Business Standard
13 hours ago
- Business
- Business Standard
Sensex, Nifty snap 3-day losing streak; PSU banks lead broad rally
Snapping the three-day losing streak, Indian equity markets are witnessing a broad-based rally on Friday despite the persistent concerns around the ongoing Israel-Iran tensions showing no signs of improvement. Last checked, the benchmark BSE Sensex was trading at 82,110.67, up 748.80 points or 0.92 per cent, and the NIfty50 was up 224.55 points, or 0.91 per cent at 25,017.80 levels. All the major sectoral indices were trading higher, led by the PSU Bank index up over 2 per cent. The public sector bank (PSB) stocks were rallying after the Reserve Bank of India (RBI) released final guidelines on project finance loans that were less strict than previous suggestions. All 11 constituents of the Nifty PSU Bank index were trading higher led by Punjab National Bank, Union Bank of India, Bank of India, Canara Bank, Central Bank, and State Bank of India up over 1 per cent each. Among others, the Nifty Realty index, Bank, Energy, Metal, Auto IT, Oil & Gas, and Consumer Durables rose up to 2 per cent. Following a sharp plunge in Thursday's session, the Nifty Midcap 100 witnessed a rebound rising over 1 per cent and the Nifty Smallcap index around 0.8 per cent. Prashanth Tapse, senior vice president for research at Mehta Equities, investors should not expect a quick end to the Middle-East conflict, while volatility and wild swings are likely to become a new normal. According to Srikant Chouhan, head of equity research at Kotak Securities, as long as the market is trading between 24,700/81200 and 24,900/81600, range-bound activity is likely to continue. On the higher side, a successful breakout above 24,900/81600 could take the market to 25000-25050/82000-82200. On the other hand, breaking out of 24,700/81200 could increase the selling pressure. Below this level, the market could retest the levels of 24,500–24,475/80500-80300. "The strategy should be to take a long trade if Nifty crosses 25000. Keep a stop loss at 24800 for the same. On the other side, expect further weakness below 24700, however, in that case, we need to keep a stop loss at 24900 for the same. However, a close below 24700 would be negative in the short term," Chouhan said.
Business Standard
13 hours ago
- Business
- Business Standard
Benchmarks trade with strong gains; PSU bank shares jump
The key equity indices traded with major gains in mid-morning trade, continuing to show resilience amid escalating tensions between Israel and Iran. Market sentiment remains sensitive to global cues, including crude oil prices and other international developments. The Nifty hovered above the 25,000 level. PSU Bank shares rallied after declining in the past three trading sessions. At 11:25 IST, the barometer index, the S&P BSE Sensex advanced 688.06 points or 0.85% to 82,049.93. The Nifty 50 index jumped 216.20 points or 0.87 to 25,010.80. In the broader market, the S&P BSE Mid-Cap index rose 0.98% and the S&P BSE Small-Cap index added 0.85%. The market breadth was strong. On the BSE, 2,519 shares rose and 1,155 shares fell. A total of 174 shares were unchanged. IPO Update: The initial public offer (IPO) of Arisinfra Solutions received bids for 2,12,94,945 shares as against 1,30,84,656 shares on offer, according to stock exchange data at 11:21 IST on Friday (20 June 2025). The issue was subscribed 1.63 times. The issue opened for bidding on Wednesday (18 June 2025) and it will close on Friday (20 June 2025). The price band of the IPO is fixed between Rs 210 and 222 per share. An investor can bid for a minimum of 67 equity shares and in multiples thereof. Buzzing Index: The Nifty PSU bank index jumped 2.16% to 6,879.65. The index fell 3.14% in the past three trading sessions. Union Bank of India (up 2.93%), Canara Bank (up 2.01%), Central Bank of India (up 1.56%), Bank of Baroda (up 1.32%), Indian Overseas Bank (up 1.18%), State Bank of India (up 1.09%), Bank of Maharashtra (up 0.91%), Indian Bank (up 0.79%), Punjab & Sind Bank (up 0.7%) and UCO Bank (up 0.63%) advanced. Stocks in Spotlight: Premier Explosives rose 0.55%. The company announced that it has secured a purchase order worth Rs 6.62 crore from an international client for the manufacture and supply of defence products. Suzlon Energy added 2.14% after the company has bagged its third successive order from Ampin Energy Transition (AMPIN) for the development of a 170.1 MW wind power project in Kurnool, Andhra Pradesh. Global Markets: US Dow Jones futures were down 125 points, signaling a weak start for Wall Street. Wall Street was closed on Thursday for the Juneteenth holiday. Most Asian markets traded higher on Friday as investors assessed China data and monitored escalating tensions between Israel and Iran. U.S. President Donald Trump is now weighing on whether to back the Israeli military and strike Tehran. The White House said that he will make a final decision within the next two weeks. Japan's core consumer price index (CPI), which excludes volatile fresh food costs, rose 3.7% in May from a year earlier, data showed on Friday, accelerating from a 3.5% increase in April. China kept its benchmark lending rates unchanged Friday. The Peoples Bank of China held the 1-year loan prime rate at 3.0% and 5-year LPR at 3.5%, according to a statement Friday.
Business Standard
a day ago
- Business
- Business Standard
Nifty fails to hold 24,800 level; PSU Bank shares under pressure
The key benchmarks indices continued to trade near flat line with minor cuts in mid-morning trade, amid ongoing escalating geopolitical tensions between Israel and Iran. Further impacting sentiment was the US Federal Reserve's decision to hold interest rates, with the central bank projecting elevated inflation and slower economic growth ahead. Market direction will likely continue to be shaped by these geopolitical developments, with investors closely tracking crude oil prices and broader global events. The Nifty traded below the 24,800 level. PSU Bank shares witnessed selling pressure for third consecutive trading session. At 11:25 IST, the barometer index, the S&P BSE Sensex declined 45.93 points or 0.09% to 81,370.43. The Nifty 50 index shed 18.60 points or 0.07% to 24,793.45. The broader market underperformed the frontline indices. The S&P BSE Mid-Cap index fell 0.74% and the S&P BSE Small-Cap index shed 0.70%. The market breadth was weak. On the BSE, 1,204 shares rose and 2,452 shares fell. A total of 179 shares were unchanged. In commodities, Brent crude (August 2025 contract) rose 3 cents or 0.04%, to $76.73 per barrel amid escalating geopolitical tensions. IPO Update: The initial public offer (IPO) of Arisinfra Solutions received bids for 55,33,798 shares as against 1,30,84,656 shares on offer, according to stock exchange data at 11:24 IST on Thursday (19 June 2025). The issue was subscribed 0.42 times. The issue opened for bidding on Wednesday (18 June 2025) and it will close on Friday (20 June 2025). The price band of the IPO is fixed between Rs 210 and 222 per share. An investor can bid for a minimum of 67 equity shares and in multiples thereof. Buzzing Index: The Nifty PSU Bank index fell 1.78% to 6,751.95. The index declined 2.89% for the three consecutive trading sessions. Bank of India (down 2.75%), Indian Bank (down 2.09%), Canara Bank (down 1.94%), Bank of Baroda (down 1.92%) and UCO Bank (down 1.65%), Union Bank of India (down 1.6%), Bank of Maharashtra (down 1.58%), Punjab & Sind Bank (down 1.39%), Punjab National Bank (down 1.37%) and Indian Overseas Bank (down 1.27%) tumbled. Stocks in Spotlight: AAVAS Financiers added 1.13% after its board's executive committee has approved raising up to Rs 200 crore through a private placement of non-convertible debentures (NCDs). Garware Technical Fibres declined 1.32%. The company announced that it has incorporated of a wholly owned subsidiary (WOS), Garware Technical Fibres AS (GTF AS), in Norway. Markolines Pavement Technologies gained 4.58% after the company announced that it has secured a maintenance contract worth Rs 18.88 crore from Varanasi-Aurangabad NH-2 Tollway. Global Markets: US Dow Jones futures were down 82 points in early trade. Wall Street will be shut on Thursday for the Juneteenth holiday, with regular trading set to resume Friday. Most Asian markets declined on Thursday as investors digested the US Federal Reserve's widely expected decision to keep interest rates unchanged. Adding to the cautious mood, ongoing tensions between Israel and Iran continue to weigh on sentiment. Eyes are also on the central bank decisions from Taiwan and the Philippines, due later today. As expected, the Fed held its benchmark rate steady at 4.25%-4.5% on Wednesday, marking no change since December. Fed Chair Jerome Powell indicated the committee would wait to assess the inflationary impact of President Trumps tariff measures before considering any policy shifts. Despite the hawkish pause, the Fed still pointed to two rate cuts by the end of the year. Geopolitical concerns remain front and center. Investor nerves were further rattled after Iran's Supreme Leader Ayatollah Ali Khamenei dismissed President Trump's calls for unconditional surrender. His remarks, delivered via a televised statement on Wednesday, were his first since Friday, when Israel escalated its offensive against Iran. Back on Wall Street, US equities ended mixed on Wednesday. The Dow slipped 0.10%, the S&P 500 edged down 0.03%, while the Nasdaq bucked the trend with a 0.13% gain.
Business Standard
13-06-2025
- Business
- Business Standard
Sensex slumps 646 pts; Nifty below 24,700 level; European mrkt decline
The key equity indices traded with major losses in the afternoon trade, mirroring losses across Asian markets, after Israel carried out military strikes on Iran, intensifying tensions in the oil-rich Middle East. All the sectoral indices on the NSE were traded in red with PSU Bank, metal and bank shares declining the most. The Nifty traded below the 24,700 level. At 13:28 IST, the barometer index, the S&P BSE Sensex, declined 645.73 points or 0.79% to 81,039.96. The Nifty 50 index fell 196.85 points or 0.79% to 24,691.90. In the broader market, the S&P BSE Mid-Cap index slipped 0.68% and the S&P BSE Small-Cap index dropped 0.79%. The market breadth was weak. On the BSE, 1,164 shares rose and 2,717 shares fell. A total of 149 shares were unchanged. The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, soared 6.49% to 14.93. Gainers & Losers: Oil and Natural Gas Corporation (up 1.25%), Bharat Electronics (up 1.12%), Tech Mahindra (up 0.59%), Sun Pharmaceutical Industries (up 0.54%) and Wipro (up 0.26%) were the major Nifty50 gainers. Adani Ports and Special Economic Zone (down 2.65%), Adani Enterprises (down 2.16%), State Bank of India (down 1.89%), Bajaj Finserv (down 1.81%) and Bajaj Auto (down 1.70%) were the major Nifty50 Losers. Economy: India's Consumer Price Index (CPI)-based inflation eased to 2.82% in May 2025, down 34 basis points from April's 3.16%, marking the lowest reading since February 2019. A key driver of the decline was food inflation, which dropped to 0.99%, the lowest since October 2021, significantly below both April's 1.78%. IPO Update: The initial public offer (IPO) of Oswal Pumps received bids for 20,78,448 shares as against 1,62,12,980 shares on offer, according to stock exchange data at 13:15 IST on Friday (13 June 2025). The issue was subscribed 0.13 times. The issue opened for bidding on Friday (13 June 2025) and it will close on Tuesday (17 June 2025). The price band of the IPO is fixed between Rs 584 and 614 per share. An investor can bid for a minimum of 24 equity shares and in multiples thereof. Stocks in Spotlight: Sigachi Industries added 1.22% after the firm informed that it has secured the Terms of Reference (ToR) approval from the State Environment Impact Assessment Authority (SEIAA), Andhra Pradesh. TANFAC Industries rallied 9.46% after the company announced that it has has successfully commissioned its 5,000 tonnes per annum (TPA) Solar Grade Dilute Hydrofluoric Acid (DHF) plant. Canara Bank tanked 4%. The bank said its board has approved a capital raising plan of up to Rs 9,500 crore for FY25-26 through the issuance of Basel III-compliant debt instruments. Prostarm Info Systems rose 0.44%. The company announced that it has received a work order worth Rs 1.60 crore from India1 Payments for the supply and installation of UPS Systems and Servo Stabilizers. DCM Shriram added 0.54%. The company said that its board has approved definitive agreements to be entered into for acquiring 100% equity share capital of Hindusthan Speciality Chemicals for a total consideration of Rs 375 crore. Global Markets: US stock futures nosedived early Friday, with Dow Jones futures plunging 580 points, after media outlets reported that Israel had launched military strikes on Iran, specifically targeting its nuclear facilities. The reports emphasized that the US was not involved in the operation. Israels Defense Minister declared a nationwide state of emergency, saying, "Following the State of Israels preemptive strike against Iran, a missile and drone attack against the State of Israel and its civilian population is expected in the immediate future." European markets opened lower on Friday as Israel-Iran conflict weighs on global sentiment. Asian shares mirrored the anxiety, trading deep in the red on Friday. Crude oil prices spiked in response to the escalating geopolitical tension. Despite the looming volatility, US indices closed higher on Thursday. The S&P 500 rose 0.38%, while the Nasdaq Composite gained 0.24% and the Dow Jones Industrial Average added 0.24%. In economic data, the Producer Price Index (PPI) for final demand rose 0.1% in May, recovering from a revised 0.2% drop in April, according to the Bureau of Labor Statistics. Oracle soared to record highs after the company raised its full-year revenue growth outlook, citing strong AI-related demand. Boeing tumbled after a tragic Air India 787-8 Dreamliner crash during takeoff in Ahmedabad. The aircraft was carrying 242 passengers. GE Aerospace, which supplies the jet's GEnx-1B engines, also saw its shares slide sharply.
