PNB stocks slump for second day, plunges almost 12%

Feb 15, 2018 0

Mumbai– Shares of the Punjab National Bank (PNB) on Thursday continued to drop for a second consecutive day — closing almost 12 per cent lower — after a $1.8 billion fraud was detected in one of its branches in Mumbai.

Its scrips dipped by 11.97 per cent to close at Rs 128.35 per share, lower by Rs 17.45 from the previous close at Rs 145.80.

Stocks of jewellery companies like Gitanjali Gems and PC Jewellers too declined after authorities blamed billionaire diamond trader Nirav Modi for the fraud.

Stocks of Gitanjali Gems, the luxury jewellery brand promoted by Modi’s maternal uncle Mehul Choksi, plunged almost 20 per cent. Scrips of PC Jewellers fell 5.31 per cent on the BSE.

On Wednesday, PNB — the second largest public sector bank in India — informed the stock exchanges through a regulatory filing that it has detected a $1.8 billion fraud in one of its branches in Mumbai.

In the filing, PNB put the quantum of fradulent transactions at $1,771.69 million (around Rs 11,515 crore), which is equivalent to eight times the bank’s net income of about Rs 1,320 crore ($206 million).

The bank’s shares had plunged drastically on Wednesday following the regulatory filing to close lower by 9.81 per cent at the BSE.

The fraud, which includes money-laundering among others, concerns the Firestar Diamonds group in which the Central Bureau of Investigation last week booked Modi, his wife Ami, brother Nishal and uncle Choksi.

On Thursday, the Enforcement Directorate launched a nationwide raid on the offices, showrooms and workshops of Nirav Modi.

Sunil Mehta, MD and CEO of PNB said the company “will not spare anyone” involved in the wrongdoing.

“We are known for clean banking. The fraud started in 2011. We have brought it under the notice of regulatory and law enforcement agencies as soon as we came to know about it. We will not spare anyone involved in the fraudulent practice,” Mehta told reporters on Thursday. (IANS)

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Banking sector stocks depress equity indices

Feb 14, 2018 0

Mumbai– Massive sell-off in banking sector stocks pulled the key Indian equity indices — S&P BSE Sensex and NSE Nifty50 — lower on Wednesday.

According to market observers, heavy selling pressure was witnessed in banking, healthcare and automobile stocks.

At 3.30 p.m. the barometer 30-scrip Sensitive Index (Sensex) of the BSE receded by 144.52 points or 0.42 per cent to 34,155.95 points from Monday’s close. The equity markets were closed on Tuesday.

Similarly, the wider Nifty50 of the National Stock Exchange declined by 38.85 points or 0.37 per cent to 10,500.90 points. (IANS)

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Allahabad Bank posts Rs 1263.79 cr net loss in Q3

Feb 14, 2018 0

Kolkata– State-run Allahabad Bank on Wednesday reported a net loss of Rs.1, 263.79 crore for the quarter ended December 31, 2017, as compared to a net profit of Rs 75.26 crore in the year-ago period.

The net loss was due to a massive increase in provisions to cover rising bad loans.

During the third quarter this fiscal, the bank’s provisions for non-performing assets rose over 150 per cent over last year to Rs 2,044.23 crore as against Rs 795.82 crore for the same period last fiscal.

Asset quality of the lender worsened further in the quarter under review as Gross non-performing assets in absolute term increased by 21.84 per cent to Rs 23,260.81 crore.

Gross NPA as a percentage of total loans rose to 14.38 per cent in the December quarter this fiscal from 12.51 per cent during the same period last fiscal.

In the quarter, net NPA ratio rose to 8.97 per cent from 8.65 per cent in the same period last fiscal.

The bank said that it has provided Rs. 575.91 crore up to December 31, 2017, in respect of nine accounts covered under provisions of the Insolvency and Bankruptcy Code (IBC). (IANS)

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Nestle India’s net profit up 22% in 2017

Feb 14, 2018 0

Mumbai– Nestle India on Wednesday reported a 22.35 per cent rise in its net profit during 2017.

The company in a regulatory filing to the BSE said that its net profit for 2017 rose to Rs 1,225.19 crore from Rs 1,001.36 crore reported in 2016.

According to the filing, the total income of the company during year stood at Rs 10,369.10 crore, up 7.73 per cent from Rs 9,625.47 crore earned in 2016.

“Total sales and domestic sales for the year increased by 7.7 per cent and 8.2 per cent, respectively. These growth rates are adversely impacted due to lower reported sales by the change in structure of indirect taxes and reduction in realisations to pass on the GST benefits,” the company said in a statement.

“On a comparable basis the domestic sales growth is ‘estimated’ at 11.8 per cent due to increase in volumes including rebuild of Maggi noodles, supplemented by better underlying realisations,” it said.

On a quarterly basis, the net profit rose nearly 60 per cent to Rs 311.83 crore in Q4, 2017 from Rs 195.41 crore during the corresponding period of 2016.

The total income in Q4, 2017 stood at Rs 2,652.55 crore, up 10.45 per cent from Rs 2,401.56 crore earned in Q4, 2016.

“The board of directors have recommended a final dividend of Rs 23.00 per equity share amounting to Rs 2,217.6 million (Rs 221.76 crore) for the year 2017,” the company said.(IANS)

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Welspun India’s Q3 consolidated net falls 47%

Feb 13, 2018 0

Mumbai– Home textiles firm Welspun India on Tuesday reported a 47.08 per cent fall in its consolidated net profit to Rs 79.51 crore during the third quarter (Q3) of 2017-18.

The consolidated net profit of the company fell to Rs 79.51 crore from Rs 150.24 crore reported in the Q3 of 2016-17, the company said in a regulatory filing to the BSE.

The company reported a total income of Rs 1,414.30 crore during the quarter under review, down 7.07 per cent from Rs 1,521.82 crore earned in the corresponding period of FY17.

The stand-alone net profit of Welspun India stood at Rs 84.77 crore in Q3, FY18, down 29.18 per cent from Rs 119.69 crore reported in Q3, FY17.(IANS)

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Max India posts Rs 1.02 cr net profit in Q3

Feb 13, 2018 0

Mumbai– Business conglomerate Max India Ltd on Tuesday said it closed the third quarter of the current fiscal with a net profit of Rs 1.02 crore, up from Rs 55 lakh posted for the quarter ended December 31, 2016.

In a regulatory filing with BSE, the company said that for the period under review, it had earned a total income of Rs 14.87 crore up from Rs 11.19 crore logged during the quarter ended December 31, 2016.

The company board has approved investment of Rs 39 crore in its wholly-owned subsidiary Antara Senior Living Ltd for a new project in Uttar Pradesh’s Noida. (IANS)

 

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Godfrey Phillips India net profit up over 61% in Q3

Feb 13, 2018 0

New Delhi– Cigarette maker Godfrey Phillips India on Tuesday reported a 61.26 per cent rise in its standalone net profit to Rs 61.99 crore in the quarter ended December 31, 2017 as compared to Rs 38.44 crore in the year-ago period.

On a comparable basis, gross sales during the quarter under review were at Rs 1,528.48 crore as against Rs 1,352.05 crore in the corresponding quarter of the previous fiscal.

The company also reported its total expenses in the third quarter of 2017-18 were Rs 545.59 crore as compared to Rs 1047.56 crore in the year-ago period. (IANS)

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Britannia net up 20% in Q3

Feb 12, 2018 0

Bengaluru– Food major Britannia Industries Ltd on Monday reported consolidated net profit of Rs 264 crore for the third quarter of 2017-18, registering 20 per cent annual growth from Rs 220 crore in the same period year ago.

In a regulatory filing on the BSE, the city-based company said consolidated total income for the quarter under review grew annually 9 per cent to Rs 2,603 crore from Rs 2.393 crore in the like period year ago.

Sequentially, however, net profit and revenue growth were flat (1.2 per cent and 0.3 per cent) from Rs 261 crore and Rs 2,596 crore last quarter.

“We had 15 per cent growth in the domestic market for the quarter owing to double-digit volume growth on the back of investment in brands and widening distribution network,” said Britannia Managing Director Varun Berry in a statement.

The company’s international business, however, continued to grow slower due to deteriorating geo-political situation and volatile currency in Africa and the Gulf region.

“Though dairy business growth was subdued, profitability improved on driving products with high margin and reducing our play in the less profitable commoditised categories,” admitted Berry.

On the commodity front, prices of key raw material were stable during the quarter.

“We have progressed well in building superior factories. Our greenfield factories at Guwahati and a dedicated facility for servicing export markets at Mundra (Gujarat) are nearing completion for operating them soon,” added Berry.

The company’s blue-chip scrip of Rs 2 face value gained Rs 131.70 when trading ended on the BSE to close at Rs 4,766.55 per share as against Friday’s price of Rs 4,634.85 and opening price of Rs 4,697 and a high of Rs 4,789.95 crore and low of Rs 4,697 during the intra-day session. (IANS)

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Gail’s Q3 net profit up over 28%

Feb 12, 2018 0

Mumbai– Natural gas utility major Gail (India) on Monday reported a rise of over 28 per cent in its net profit for the third quarter of 2017-18.

According to the company, its net profit increased to Rs 1,262.22 crore crore from Rs 982.92 crore reported during the corresponding period of FY17.

The company further said that its Board has recommended the “issuance of one bonus share of Rs 10 for existing three equity shares of Rs 10 each fully paid up, subject to the shareholders approval”. (IANS)

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UBI posts Rs 637.53 cr net loss in Q3

Feb 12, 2018 0

Kolkata– State-run United Bank of India (UBI) on Monday reported a net loss of Rs 637.53 crore for the quarter ended December 31, 2017, as compared to a net profit of Rs 64.10 crore for the a year-ago period.

The net loss for the quarter was on the back of sharp fall in operating profit and a huge increase in provisions to cover rising bad loans.

During the quarter ended December, the bank’s operating profit saw a 65.76 per cent fall to Rs 181.53 crore compared to Rs 530.15 crore in the same period of the previous year.

During the third quarter, its provision and contingencies stood at Rs 1,074.35 crore, up by 82.5 per cent year-on-year. The bank’s provisions for non-performing assets rose 95 per cent to Rs 964.07 crore as against Rs 494.52 crore.

The lender provided Rs 167.44 crore during the third quarter of 2017-18 in respect of seven accounts covered under provisions of the Insolvency and Bankruptcy Code (IBC), it said.

The bank’s asset quality deteriorated further in the December quarter as gross non-performing assets (NPAs) in absolute term rose 26.51 per cent to Rs 13,720.69 crore in the quarter under review.

Gross NPA as a percentage of total loans rose to 20.10 per cent in the third quarter this fiscal from 15.98 per cent during the same period of 2016-17.

In the December quarter, net NPA ratio rose to 11.96 per cent from 10.62 per cent in the same period last fiscal. (IANS)

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