PNB reported earnings of Rs11.4bn, a +30% yoy growth (9% ahead of est.), but was only 3-4% ahead of est. if adj. for one-off gain (UTI MF stake sale). But, more importantly, core earnings sprung a surprise with operating earnings (+20% higher) driven by sharply lower opex (base effect as 4QFY09 had very high wage prov.). PNB has a buffer (wage prov. at 21% vs. settlement at 17.5%). (more…)
Author: CP
Greek Problem – Potential for Sizeable Correction World Markets
Greece, one of the great tourist destinations for all of us is in great problem. Much has been talked about its Sovereign Debt coming up for payment and the country with empty coffers is unable to take the next step. Lets have a deeper insight into the problems of Greek.
How is Current Greek Crisis Different ?
First, the previous Greek administration under reported fiscal spending. Following the change in the Greek government in October last (more…)
Union Bank – Margins expand sharply
Union Bank of India’s 4Q10 was a strong earnings show – profits were up 28% yoy (17% above our estimates), driven by sharp NIM expansion and healthy fee growth. Core operating profits (pre-provisioning profits ex trading gains) were also robust (+65% yoy). The balance sheet, however, was mixed – NPLs increased sharply, coverage levels were down, but there were improvements in funding mix and credit growth (+23% yoy). Overall, the strong NIM jump seems to have offset the pressure on asset quality; but only for now. (more…)
RIL Vs RNRL verdict – Implications
We believe that the verdict gives a tacit indication for selling of the gas at $4.2/mmbtu. The verdict was in contrast to the Bombay High court judgment given on 15th June ’09, which directed RIL to supply 28mmscmd of gas at $2.34 for a period of 17 years from the commissioning of RPower’s gas based power plant.
What does this mean for RIL?
As far as financial implications of the verdict are concerned, RIL would continue to sell KG-D6 gas at government approved price of (more…)
RIL Vs RNRL Judgement – Live Coverage
T Sathasivam
MoU is not Legally Binding, However it can be interpreted accordingly. Government Owns the Gas till it reaches the consumer.
RIL and RNRL to renegotiate production Sharing Contract within 6 weeks. Submit it to Company’s Court and the court must come out with an order within 8 weeks.
Other Two Justices are yet to rule as it was 3 bench.Guess it was final verdict as it was signed by Chief Justice K G Balakrishnan. (more…)
First View – ICICI Bank Taking Over Bank of Rajsthan
ICICI Bank may consider acquiring Bank of Rajasthan (BoR), whose promoters are being pushed by the Reserve Bank of India (RBI) to offload their stake. If the deal were to go through, then what are the synergies and over lapses, lets analyze – ICICI Bank’s 2,000 branch network would be complemented by BoR’s 463 branch network. Of these 463 branches 102 branches are in rural areas, 90 branches are in semi-urban areas and 142 branches are in urban areas. (more…)