DATE: 28/10/2018

VOL.:2

FinoWorld Weekly
News
WHAT'S HAPPENING AT THE
Axis Bank sells 4.95% stake in NSDL to WORLD?
HDFC Bank for Rs 163 cr
Axis Bank sold 4.95 percent stake in National Securities Depository • Air India to launch red-eye flights
Limited (NSDL) to its peer HDFC Bank for a consideration of Rs 163.34 on domestic routes from
crore. November end
• Microsoft overtakes Amazon as
Post-sale, Axis Bank would be left with 0.05 percent holding in NSDL, the second most valuable US
lender said in a filing. company
• Dassault CEO clears air on
NSDL is primarily engaged in the business of providing depository Ambani, throws open challenge
services.
at Rafale's detractors
• Supreme Court seeks centre’s
Axis Bank sold 19,79,900 shares at a price of Rs 825 per unit. view on cryptocurrency within 2
weeks
With the acquisition, HDFC Bank's holding will increase from the current 5
percent to 9.95 percent.

According to a filing by HDFC Bank, NSDL is a depository and so for

increasing the bank's equity stake in the entity beyond 5 percent, no-
objection has been received from the Securities and Exchange Board of
India (SEBI).
GOLD Rs. 31,932 /-
(10gm)
ICICI Bank’s Q2 profit dives 42% over bad
loans SILVER Rs. 38,729 /-
(1kg)
ICICI Bank on Friday reported a 42% drop in its consolidated net profit to CRUDE Rs. 4955/1 BBL
nearly Rs 1,205 crore in the September 2018 quarter, on account of rise
in bad loans. OIL
On a stand-alone basis, its net profit fell by 56% to Rs 909 crore in the
DOLLAR Rs. 73.46 /-
said quarter as against Rs 2,058 crore in July-September 2017. The (INR)
bank had reported a net loss of Rs 120. crore in the first quarter of the
ongoing fiscal. Total income of the ICICI Bank on a stand-alone basis
stood at just over Rs 18,262 crore during the September quarter, down
from Rs 18,763 crore in the year-ago period.

Total provision of the bank during the quarter declined to to just over Rs
3,994 crore from Rs 4,503 crore in the same period a year ago. During
the quarter, net interest income rose to Rs 6,418 crore as compared to
Rs 5,709 crore. Core operating profit increased to Rs 5,285 crore from
Rs 4,794 crore in the year-ago period
 DATE: 28/10/2018
VOL.:2

The stock has lost a massive 38% ever since it became clear
Fourth time lucky? Lakshmi Mittal set that the Reserve Bank of India does not want the bank’s
to get India foothold founder and head Rana Kapoor to continue in his position
beyond January 2019. The weak results are likely to add to
the ire of investors. The stock trades at a multiple of 1.26
He presides over the world's largest steel-making company but times its estimated book value for FY20.
the Indian passport holder Lakshmi Mittal, chairman and CEO
of ArcelorMittal, has always wanted to enter the steel sector in
the country of his birth.
And, his dream may soon turn into reality. ArcelorMittal won
the bid on Friday to acquire Essar Steel for Rs 42,000 crore,
marking an end to a tense battle to bag the debt-laden firm.
But, there may be still some hurdles to cross as Essar Steel
made a last-minute bid to retain control of its venture.
"We want to participate in the growth process of India. We
could not get any greenfield projects and we see opportunity in
Essar that is why we put in our bid," Mittal had told TOI in an
interview earlier this year as he closely monitored the twists
and turns in the bidding process. ArcelorMittal has 199,000
employees across 60 countries. It is the world's largest steel
and mining company.
The steel baron, who is regarded for his turnaround strategy,
had earlier made several attempts to set up greenfield projects
in India but remained unsuccessful. He had readied plans for
setting up two plants of 10 million tonnes capacity (each) in
Jharkhand and Orissa but could not do so due to a host of
issues, including supply of iron-ore, land acquisition and
allocation of coal mines for setting up power plants.
ArcelorMittal, which was set up with the merger of Arcelor and
Mittal Steel in 2006, had also signed an agreement with Steel
Authority of India for a $1-billion venture for automotive steel.

Yes Bank’s asset quality trips in

second quarter; IL&FS exposure may
bite
Sometimes, saying no makes all the difference. Private lender
Yes Bank Ltd has a ₹2,600 crore exposure to Infrastructure
Leasing and Financial Services Ltd (IL&FS). The fact that it is
1% of its loan book and the exposure is currently standard on
the bank’s books could be tempting to write it off as negligible.
But there is no guarantee that it would remain standard for
long. The lender may have to get ready for a big provisioning
impact in the coming quarters. IL&FS has been defaulting on
every repayment to different stakeholders over the last three
months. Without a fix, the company is unlikely to pay off its
dues to banks. A 90-day overdue would mean Yes Bank will
have to make a provisioning of 15% on its exposure.

The IL&FS story needs a happy ending, else Yes Bank would
begin wishing fervently that it had said no to the infrastructure
behemoth. The lender also has 3.2% of its loan book exposed to
housing finance companies and 2.6% to non-banking finance
companies (NBFCs). While finance companies are currently
suffering from a liquidity crunch, they are not risky enough to
become bad debt.