TECHNICAL TREND ( NIFTY - BANK NIFTY FUTURES )

NIFTY FIFTY : - Last week Nifty showed profit booking as FII created sell position in the F&O.
The Nifty Index made a high of 9699 and closed at 9575 after making a low of 9565. On Tuesday
27th June,the Nifty fell 142 points from days high. it opened at 9594, made a high of 9615 and closed
at 9511 after making a low of 9473. Ahead of GST implementation, investors remained cautious and
booked profits in Cash market. On Wednesday 28th June,the Benchmark Index Nifty opened at 9520
and closed at 9491 after making a low of 9474. The Index closed down by 20 points from its previous
day close. On Thrusday trading session, Index Nifty opened at 9523 and closed at 9504 after making a
high of 9576.The Index closed up by 13 points from its previous day close. NSE has recorded highest
ever turnover in F&O segment on Thursday. The total turnover in F&O segment in yesterdays trade
stood at around Rs 14.1 lakh crore. The concern of GST disruptions & Normal monsoon in June so
far may affect the domestic market sentiment. We expect market may continue to be under stress on
earnings concern for Q1-Q2FY18 due to GST disruptions and NPA blues despite great thrust on
deleveraging for stressed corporate India. Almost all the major sectors from steel, power to telecom
are in stress. Time & price action Suggest Nifty need to Sustain over 9520 level for further up move
toward 9642-9678 & Sustaining below 9500 level may drag the Index towards 9420-9297 in near
term.

BANK NIFTY : - Bank Nifty also made a high of 23898 and closed at 23543 after making a low of
23508 in last week. The Banking shares gave correction last week, as the Reserve Bank of India asked
banks to make higher provisioning on 12 large loan accounts. Bank Nifty fell allmost 730 points in
two trading sessions and closed at 23216 after making a low of 23056 on Monday trading session.
Bank Nifty opened at 23210 and closed at 23236 after making a low of 23114 on Wednesday trading
session.The Index closed up by 20 points from its previous day close. An unexpected RBI directive on
weekend to Banks for requirement of higher provisions for the IBC NPA cases and ongoing farm loan
waiver; this time from MH for Rs.34000 cr. Indian banks may be required to provide higher
provisions for NPA cases under IBC and may also be required for around 60% of hair cuts to settle
the large NPA (unviable projects); normally Banks in India can settle 40-50% or even 25% of the
write off NPA, depending on various factors. Banks in India may have to also provide more
provisions (+30%) for NPA as par changing accounting rules from next year. The Significance levels
for Bank Nifty for next week trading sessions is 23130-22978 is down side and 23350-23700 is Up
side

Monday, 3 July 2017

TECHNICAL VIEW (NIFTY- BANK NIFTY FUTURES )

NIFTY

DAILY R2 R1 PP S1 S2
9675 9549 9486 9423 9297

WEEKLY R2 R1 PP S1 S2
10039 9707 9541 9375 9043

MONTHLY R2 R1 PP S1 S2
10341 9825 9567 9309 8793
BANK NIFTY

DAILY R2 R1 PP S1 S2
23780 23348 23132 22916 22484

WEEKLY R2 R1 PP S1 S2
25281 24003 23364 22725 21447

MONTHLY R2 R1 PP S1 S2
26061 24267 23370 22473 20679

MOVING AVERAGE 21 DAYS 50 DAYS 100 DAYS 200 DAYS

NIFTY 9606 9474 9242 8827

BANK NIFTY 23480 22948 21927 20472

PARABOLIC SAR DAILY WEEKLY MONTHLY

NIFTY 9694 9703 8770

BANK NIFTY 23864 23897 19595
PATTERN FORMATION ( NIFTY )

Detail of Chart - On the Above given daily chart of Equity index Nifty price seems to take a
pause inside the breakdown zone before a swinging move. Nifty is expected to trade in a positive
note in next trading session as the both the indicators are in positive territory and Nifty may touch
the 9700 level. The Crucial levels of Nifty as per Technical Analysis is 9430-9361 is Down side
and 9560-9648 is Up side.
PATTERN FORMATION ( BANK NIFTY )

Detail of Chart - On the Above given daily chart of Bank Nifty has Applied the Bollinger Band
and Parabolic SAR both the indicators are indicating that the Bank Nifty to trade in positive
territory in upcoming week Bank Nifty to trade in a Positive note for next week trading session
the crucial levels for Bank Nifty as Per technical Analysis is 23148-22964 is down side and
 NSE EQUITY DAILY LEVELS

COMPANY NAME R2 R1 PP S1 S2
ACC EQ 1593 1582 1569 1558 1545
ADANI PORTS EQ 289 367 363 362 358
AMBUJACEM EQ 205 248 246 245 243
ASIAN PAINT EQ 915 1113 1098 1089 1074
AXISBANK EQ 484 520 514 509 503
BAJAJ-AUTO EQ 2694 2811 2788 2776 2753
BANKBARODA EQ 164 162 159 156 153
BPCL EQ 621 641 632 622 613
BHEL EQ 126 137 135 134 132
BHARTIARTL EQ 323 387 380 376 369
BOSCH LTD EQ 20356 23655 23185 22920 22450
BHARTI INFRATEL EQ 359 378 374 372 368
CIPLA EQ 573 559 551 543 535
COALINDIA EQ 295 245 244 243 242
CAIRN INDIA LTD EQ 265 2703 2674 2637 2608
DRREDDY EQ 3145 366 360 358 352
GAIL EQ 429 1257 1242 1218 1203
GRASIM EQ 841 858 848 841 831
HCLTECH EQ 843 1628 1617 1609 1598
HDFC EQ 1285 1662 1653 1645 1636
HDFCBANK EQ 1189 3712 3689 3663 3640
HEROMOTOCO EQ 3211 193 191 190 188
HINDALCO EQ 178 1097 1080 1069 1052
HINDUNILVR EQ 833 294 290 289 285
ICICIBANK EQ 262 324 317 310 303
ITC EQ 231 1486 1474 1465 1453
INDUSIND BANK EQ 1108 937 933 928 924
INFY EQ 1013 86 84 82 80
IDEA CELLULAR EQ 79 964 950 939 925
KOTAKBANK EQ 731 1712 1686 1674 1648
LT EQ 1370 1362 1353 1349 1340
M&M EQ 1200 68879 68365 67979 67465
MRF EQ 53393 7246 7201 7170 7125
MARUTI SUZUKI EQ 5238 158 157 156 155
ONGC EQ 210 159 158 157 156
NTPC EQ 163 23 22 21 20
RCOM EQ 37 650 643 639 632
RELCAPITAL EQ 453 1396 1386 1379 1369
RELIANCE EQ 1066 505 498 494 487
RELINFRA EQ 507 44 43 42 42
RPOWER EQ 44 275 272 270 267
SBIN EQ 268 252 250 247 245
SSLT( VEDL) EQ 241 558 548 536 526
SUNPHARMA EQ 662 268 264 262 258
TATA MOTORSDVR EQ 305 2370 2346 2316 2292
TCS EQ 2313 436 432 429 425
TATAMOTORS EQ 480 82 81 80 79
TATAPOWER EQ 80 548 539 531 522
TATASTEEL EQ 427 147 146 144 143
UNIONBANK EQ 144 1472 1449 1431 1408
YES BANK LIMITED EQ 1209 493 490 487 484
ZEEL EQ 451 367 363 362 358
 TOP 15 ACHIEVERS // TOP 15 LOOSERS

SR.NO SCRIPT NAME PREV CMP % CHANGE SR.NO SCRIPT NAME PREV CLOSE CMP % CHANGE
CLOSE

1 TATA STEEL 507 545 + 7.59 % 1 SBIN 288 273 - 5.30 %

2 VEDANTA 236 249 + 5.15 % 2 ASIAN PAINTS LTD 1153 1102 - 4.39 % -
4
3 ITC LIMITED 311 323 + 4.07 % 3 ACC LIMITED 1636 1568 - 4.19 %

4 BHARTI AIRTEL 366 379 + 3.69 % 4 RELIANCE 1435 1380 - 3.89 % -

3
5 CIPLA LIMITED 541 555 + 2.67 % 5 ZEEL 509 491 - 3.61 %

6 AXIS BANK LIMITED 504 517 + 2.52 % 6 KOTAK BANK 985 955 - 2.99 % -
2
7 SUN PHARMA 543 555 + 2.19 % 7 TATA MOT LTD 443 432 - 2.39 %

8 GAIL LIMITED 354 361 + 2.06 % 8 INDIABULLS 1102 1076 - 2.35 % -

HOUSING
2
9 YES BANK LIMITED 1435 1463 + 1.96 % 9 HDFC 1651 1614 - 2.20 %

10 AURO PHARMA 672 684 + 1.84 % 10 L&T 1722 1687 - 2.04 % -

2
11 DR. REDDYS LABS 2643 2690 + 1.76 % 11 M&M 1376 1348 - 2.01 %

12 BHARAT PETRO 630 639 + 1.37 % 12 BOSCH LIMITED 23795 23327 - 1.97 % -
1
13 AMBUJA CEMENT 243 246 + 1.34 % 13 HINDUNILVR 1097 1079 - 1.67 %

14 HINDALCO 188 190 + 1.19 % 14 HDFC BANK 1678 1652 - 1.58 % -

1
15 HERO MOTOCORP 3660 3701 + 1.13 %
15 TATA POWER 81 80 - 1.17 %
OPEN INTEREST INDEX F&O AND CASH SEGMENT ACTIVITY
NSE - WEEKLY NEWS LETTERS

TOP NEWS OF THE WEEK

India Inc's foreign borrowings at $ 1 billion in May - Indian industry borrowed USD 1.05
billion from foreign markets last month, including through rupee denominated bonds . In contrast,
the borrowings were USD 1.32 billion in May last year. However, the two sets of data are not
comparable as the RDB route was not there until September. As per RBI data, of the total in May
this year, external commercial borrowings and RDBs contributed almost equally at USD 523.95
million and USD 525.76 million respectively. But June onwards, it may be difficult for companies
to float rupee bonds overseas as they will be subject to scrutiny from Reserve Bank's Foreign
Exchange Department before every such issue. The RDB route has become a popular source of
fund raising. Six entities issued rupee bonds -- popularly referred to as masala bonds -- including
the National Highways Authority of India's USD 465.66 million (Rs 3,000 crore) for road
construction.
Record low credit growth: 1,000 companies borrowed Rs 1 trillion less in FY17 - The record
low bank credit growth of 5.1 per cent in FY17 was led by the top 1,000 listed corporates which
saw their net loan outstanding decline by a whopping Rs. 1 trillion in the reporting year, said a
report. One-third of this massive contraction was led by just 10 companies, which cumulatively
availed of Rs. 33,571 crore less in the year over the previous year, according to the report by SBI
Research. this could either be perceived as lower debt utilisation levels or prepayment through
internal accruals or through asset sale. Other reasons could be QIP or private equity participation.
The RBI data showed that bank credit inched up by a tad 5.1 per cent in the year to March 2017,
which was the lowest since 1951 when it had grown by a paltry 1.8 per cent which could be
attributed rise in bond issuance and cheaper non-bank fund sources coupled with overall credit
aversion in the economy as well as non-investment by the private sector in capacity expansion.
However, taken as a whole, as per cent annual results of about 3,000 listed entities for FY17,
there was an 8 per cent increase on a CAGR basis in loan funds outstanding over FY15. The
outstanding loan funds as of FY15 stood at Rs 22.8 trillion, which increased to Rs 26.5 trillion in
FY17. This was Rs 24.2 trillion in FY16.

Unincorporated units contribute Rs. 11.5 lakh crore to economy - As many as 6.34 crore
unincorporated non-agriculture enterprises excluding construction sector, have contributed Rs
11.52 lakh crore to the economy and provided employment to 11.13 crore in 2015-16. During
2015-16, the aggregate gross value added by the unincorporated non-agricultural enterprises
engaged in market production was estimated as Rs. 11,52,338 crore," stated a report by National
Sample Survey Organisation. According to the report, at all India level, units that employ at least
one hired worker on a fairly regular basis contributed about 56 per cent to the aggregate annual
GVA. However, in rural areas, own account enterprises had a higher share (61 per cent) in
aggregate GVA. The survey revealed that about 11.13 crore workers were engaged in
unincorporated non-agricultural enterprises (excluding construction) during 2015-16. Out of the
total number of workers, 34.8 per cent were engaged in trading, 32.8 per cent in other services
and 32.4 per cent in manufacturing. While 55 per cent worked in urban areas, 45 per cent worked
in rural areas. The top five states in terms of estimated number of workers are Uttar Pradesh
(14.9 per cent), West Bengal (12.2 per cent), Tamil Nadu (8.7 per cent), Maharashtra (8.2 per
cent) and Karnataka (6.4 per cent).

Consumption to propel India's GDP growth: Nomura - India's GDP growth witnessed a
trough in January-March quarter, but going forward the economy is expected to see gradual
improvement in growth numbers primarily driven by consumption, says a Nomura report.
According to the Japanese financial services major, consumption has recovered from the
demonetisation "shock" and while external demand has moderated slightly, it remains supportive
of growth. Moreover, there are signs of a pick-up in central government investment. "We believe,
GDP growth reached a nadir in March quarter (at 6.1 per cent) and will gradually improve to a
still-modest 6.6 per cent in the second quarter," Nomura said in a research note adding that
growth is expected to be mainly consumption- led. The report said some GST-related disruptions
could spill into early part of the third quarter. But good monsoons, strong rural wage growth, pay
hikes for state government employees, lower lending rates and a modest pick-up in external
demand may push GDP growth to 7.1 per cent in September quarter and further to 7.7 per cent in
the next quarter. India lost the tag of the fastest growing economy to China in the March quarter
with a GDP growth of 6.1 per cent, which pulled down the 2016-17 expansion to 7.1 per cent.

Plenty of hiccups' expected as India rolls out new tax reform - As India prepares to launch its
biggest tax reform since independence in 1947, businesses and citizens across the country are
bracing for economic chaos. At midnight on July 1, Prime Minister Narendra Modi will formally
usher in the countrys new goods and services tax. First proposed in 2006, the GST will subsume
more than a dozen state and central levies into one tax, unifying this country of 29 diverse states
and 1.28 billion people into a single market for the first time. "We are not ready," said K.E.
Raghunathan, a Chennai-based business owner and president of the All India Manufacturers
Association. "We do expect tremendous chaos." With the deadline looming, protests and
industrial strikes broke out across the country over tax rates and compliance burdens. In the states
of Tamil Nadu, Gujarat and Rajasthan, tens of thousands of textile workers went on strike, while
the association that represents sellers of seeds, pesticides and fertilizers protest protested in the
agricultural state of Punjab. The move should eventually expand Indias narrow tax base and
increase government revenues. It has been heralded by economists and will count as the most
important structural economic reform of Modis three-year-old administration.

Loan demand to pick up to 15% in 2017-18: BofAML - Loan growth in the country is expected
to pick up to 15 per cent in 2017-18, from 9.1 per cent in the previous fiscal, as demonetisation
shock fades, says a report. According to a Bank of America Merrill Lynch report, loan growth in
the country is now at a historic low and is expected to bottom out. "Our BofAML liquidity model
forecasts that loan growth will pick up to 15 per cent from 9.1 per cent in 2016-17 as the
demonetisation shock works itself out," BofAML said in a note. The report further said RBI open
market operation (OMO) is also expected to push up loan supply and pull down bank lending
rates, which in turn will spur loan demand. BofAML sought to illustrate the point. It said, "Re 1
of RBI OMO generates Rs 4 of loan supply. Besides, demonetisation has added temporary
liquidity of around Rs 4,000 billion to banks, which would also boost loan growth." OMOs are
market operations conducted by RBI by way of sale or purchase of government securities to or
from the market with an objective to adjust the rupee liquidity conditions on a durable basis. If
there is excess liquidity, RBI resorts to sale of securities and sucks out the surplus. Similarly,
when the conditions are tight, RBI buys securities from the market, thereby releasing liquidity
into the market.

TOP ECONOMY NEWS

The finance ministry has made a case for pushing back the Reserve Bank's deadline for
implementing Basel III banking norms in view of higher capital requirement to deal with bad
loans which have reached unacceptable levels. In a recent meeting with RBI, senior officials from
the ministry pitched for deferring the implementation beyond March 2019, saying it will help
banks meet the capital needs and increase credit flow to productive sectors along with balance
sheet clean-up.

Former RBI Governor Bimal Jalan today said that 'inflation targeting' cannot work in India as
prices depend on a range of factors like monsoon and oil prices over which neither the RBI nor
the government has any control. Inflation targeting is fine for countries like the US and the UK.
But we are dependent on rain, import of oil from Gulf countries. In India, there is no point in
setting inflation target," Jalan said at a function to release a book written by former RBI Governor
Y V Reddy.
Government think-tank NITI Aayog has made a case for a single regulator to govern Indias
energy market to make the country energy ready by the year 2040. Coal and upstream
petroleum sectors have lacked independent, statutory regulators, said the draft National Energy
Policy, on which the central think-tank has sought public feedback till July 14. This is also
expected to mainstream emerging energy tech and provide energy choices, NITI Aayog said.

One of the leading credit rating agencies, Fitch Ratings has warned that there is a risk that farm
loan waiver schemes, which are being discussed and implemented across a number of Indian
states will result in further fiscal slippage at the state level or will curtail the funds available for
public investment. The farm loan waiver schemes could have a significant impact on the finances
of the state government, and might undermine efforts to bring down general government debt, it
added.

At the midnight of June 30, India will make a tryst with history by heralding the much-awaited
GST regime and turning a new leaf in the annals of the countrys taxation system. The game-
changing one nation, one market, one tax arrangement is the biggest taxation reform since
Independence. It is expected to benefit both the traders and consumers, while providing buoyancy
to government revenues due to increased tax compliance. It is estimated that with its
implementation, GDP will increase by 1.5-2 per cent.

Former RBI Governor Bimal Jalan today said that 'inflation targeting' cannot work in India as
prices depend on a range of factors like monsoon and oil prices over which neither the RBI nor
the government has any control. Inflation targeting is fine for countries like the US and the UK.
But we are dependent on rain, import of oil from Gulf countries. In India, there is no point in
setting inflation target," Jalan said at a function to release a book written by former RBI Governor
Y V Reddy.

The Reserve Bank today said district central cooperative banks can deposit banned bank-notes
exchanged or collected only between November 10-14 last year under a special window until July
19. Specified banned notes of Rs 500 and Rs 1,000 held as on November 8, 2016, at the close of
banking hours will not be eligible, the RBI said in a notification this evening. The ones accepted
by DCCBs after November 14 are also not eligible for exchange, the central bank said.

The Reserve Bank of India has finalised norms for peer-to-peer lending platforms and is expected
to release final guidelines in 2-3 weeks, a top finance ministry official said. According to the
official, the finance ministry has given its comments to the central bank and the latter is giving
final touches to the rules.
The government will clear all FDI proposals requiring approval within a maximum of 10 weeks
after the receipt of an application as per the standard operation procedure which replaces FIPB.
The move is aimed at improving investment climate of the country. The new mechanism will
replace the Foreign Investment Promotion Board, abolished by the government.

TOP CORPORATE NEWS -

Indiabulls Real Estate on Tuesday announced that it has acquired the entire minority stake of
10.08% in Indiabulls Infra estate Limited a majority-owned subsidiary of the company. The
company has acquired IIL from IL&FS Fund entities namely IIRF India Realty XXI Limited,
Little Fairy Limited and Vistra ITCL Limited, its minority investors. The aggregate cash
consideration paid for the acquisition is Rs 358.44 crore, which includes interest of Rs 94.85
crore as against their aggregate total investment of Rs 250 crore.

The leading public sector lender, Dena Bank plans to raise up to Rs. 1,800 crore through a
qualified institutional placement. The banks annual general meeting took place on June 27, 2017.
The shareholders voted on the proposal of creating, offering, issuing and allotting equity shares
up to Rs. 1,800 crore in a QIP.

Indian branded fabric and fashion retailer, Raymond Limited in a phased manner is going to
invest Rs. 1,400 crore in its new plant at Amravati in Maharashtra which will go live by the year-
end. In the first phase, the new unit that will produce linen and denim, cotton shirts among other,
the company has made an initial investment of Rs. 200 crore. The facility will employ about
8,000 workers when fully operational.

Piramal Enterprise Limited board of directors has approved a proposal through the issuance of
non-convertible debentures to raise up to Rs. 500 crore private placement basis. Piramal
Enterprises said in a BSE filing on Tuesday said that the NCD are proposed to be listed on the
wholesale debt market segment of the NSE.

Mukesh Ambani led Reliance Industries is planning to raise Rs. 25,000 crore as the company
seeks to fund an aggressive expansion plan in the telecom sector and to also replace existing high-
cost borrowings. The funds would be raised through privately placed debentures

HDFC Limited, a major provider of finance for housing in India, will seek shareholders
approval to raise RS. 85,000 crore through various debt instruments. The mortgage lender will
seek its shareholders nod at the Annual General Meeting which is scheduled on July 26, 2017.
Zydus Cadila has received final approval from the USFDA to market Entecavir tablets in the
strengths of 0.5 mg and 1mg. The drug is used to treatment of Hepatitis B virus infection and will
be produced at the groups formulation manufacturing facility at the Pharma SEZ in Ahmedabad.
The construction arm of L&T Limited has won orders worth Rs. 2,552 crore across various
business segments. The Transportation Infrastructure & Water Effluent Treatment businesses have
jointly bagged an EPC order worth Rs 1,223 crore from Aurangabad Industrial Township Limited.

UltraTech Cement on Thursday completed the acquisition of Jaiprakash Associates six

integrated cement plants and five grinding units, the company informed the bourses. The plant
and units are spread across the state of Himachal Pradesh, Uttar Pradesh, Uttrakhand, Madhya
Pradesh and Andhra Pradesh with a capacity of 21.2 million tonne. Consequent to this
acquisition, the acquired cement plants of JAL and JCCL stand transferred to UltraTech. With a
value of Rs 16,189 crore (USD 2.5 bn), the deal was the largest transaction of its kind and
involves a major financial restructuring program of JAL, overseen by the ICICI-led consortium of
lenders.

Piramal Enterprises Limited through its subsidiary Piramal Finance Ltd has committed Rs 485
crore to third party logistics solutions provider, Apollo LogiSolutions, reported a leading
business daily on Thursday. Piramal Finance will be a long-term investor in the company as it
eyes to boost its operations over the coming years. Apollo LogiSolutions will utilise the funds for
organic growth of existing business, setting up of new business ventures as well as restructuring
ownership in many of its joint ventures.

Rajesh Exports Limited has procured an order of Rs. 774 crore. The order has been procured
beating global competition from a well-established and prestigious global white label importer
from UAE. The order is to be completed by October 2017. Company will be executing the order
from its Bangalore facility. This facility has a processing capacity of 250 tons of jewellery and
gold products per annum. With this current order which is to be executed by October 2017, order
book at the consolidated level stands at Rs. 38,419 crore.

MEP Infrastructure developers Limited on Thursday announced that it has received an order
worth Rs 325.08 crore from the Maharashtra State Road Development Corporation Limited
(MSRC). The order includes operation maintenance of Rajiv Gandhi Sea Link and collection of
Toll Plaza on a whole basis. The period of the contract is for 156 weeks from the date of the
Letter of Acceptance i.e. June 28, 2017.

Mindtree Limited has come up with a share buyback plan of equity shares worth Rs. 270 crore.
It will become the seventh IT company in India to announce share buyback plan. The companys
board has approved buyback of up to 2.5% of total fully paid-up equity shares in the market up to
Rs 43.2 lakh shares at Rs 625 per share, as reported by the company in a BSE filing. The buyback
would be carried out via the tender offer route under the board approval route. Promoters of the
company will have an option to participate in the buyback plan.

Motherson Sumi Systems Limited shares witnessed a jump by 1% during Wednesdays trading
session as the shareholders approved the issuance of bonus shares to existing shareholders. The
register of members and share transfer books will remain closed on July 7 as the company has
fixed July 7 as record date for purpose of the bonus issue. On May 19, the board of directors had
recommended the issue of bonus shares in the ratio of one bonus shares against the two existing
shares

Steel Strips Wheels Limited has bagged exports order for supply of steel wheels for EU caravan
and Canadian winter market. This order covers supplies of approx 15,500 number of wheels with
total order value above USD 150,000 and would be dispatched by end of July 2017 from SSWLs
Chennai plant. Meanwhile, the stock traded in a positive territory surging 1.85% at Rs 888.10 per
share during Wednesdays intraday trade.

Zydus Cadila has received the final approval from the USFDA to market Phentermine
Hydrochloride orally disinterating tablets in strengths of 15mg, 30 mg and 37.5 mg. The drug is
used together with diet and exercise to treat obesity in people with risk factors such as high blood
pressure, high cholesterol or diabetes and will be produced at the groups formulations
manufacturing facility at Moraiya in Ahmedabad.

TOP BANKING AND FINANCIAL NEWS OF THE WEEK

The countrys largest bank, the State Bank of India, has written a letter to the finance ministry
raising concerns over the stringent provisioning norms for companies under the Bankruptcy
Code, which will eat into its profit margins. The lender is reluctant to meet these norms and has
sought the ministrys intervention on the matter.

A senior executive with the lender confirmed the development and said that the government is
expected to hold discussions with the Reserve Bank of India, state-run lenders and the
Bankruptcy Board. An email sent to both SBI and RBI did not elicit any response till the time of
going to press.

With rising concerns on additional provisionings to be made on accounts headed for insolvency,
Axis Bank said it has exposure to eight of the 12 companies named by the regulator and has
already set aside adequate money for the same. The third largest private sector lender said the
overall fund-based exposure to these eight accounts is Rs. 5,071 crore and the non-fund based one
is only Rs 212 crore. Around 80 per cent of this outstanding loan is secured, it said in an
exchange filing made before the start of the trading today.

Reserve Bank will remain open on July 1 for services such as transfer of funds through NEFT
and RTGS from 11 AM onwards. RBI follows a July to June accounting year and June 30 being
the closing date of the year, the office generally remains closed on July 1 every year. The apex
bank said July 1 being a working Saturday, it has decided to remain open on that day.

ICICI Bank Limited said that a lenders consortium led by it has concluded the biggest asset
resolution in the country with the consummation of the Rs. 16,189 crore takeover of Jaypee
Cements by Ultratech. This is the largest asset resolution in the country so far and I hope that this
landmark transaction will pave the way for more such resolutions," Chanda Kochhar, ICICI Bank
managing director and chief executive, said in a statement.

The nation's largest lender State Bank India ruled out the additional provisioning towards the 12
largest NPA accounts which have been referred to insolvency proceedings denting the bottom
lines very hard as most of the provisioning has already been done. The increased provisioning
requirements, more or less, in all of these accounts we have pretty large provisions. But yes, we
have to make a little more but it should not very badly impact our earnings going forward,"
chairman Arundhati Bhattacharya told reporters after the AGM.

The strong steps taken by Reserve Bank to resolve NPAs are likely to raise provisioning by a
whopping 25 per cent this year as lenders will take up to 60 percent hair cut while resolving these
accounts. Based on our assessment of the embedded value in the top 50 NPA cases, we estimate a
60 per cent haircut would be needed on these loan assets. That would mean banks will have to
increase provisioning by another 25 per cent this fiscal, compared with nine per cent in the last
fiscal," Crisil senior director Krishnan Sitaraman said.
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The reports are prepared by analysts who are employed by High Brow Market Research Investment
Advisor Pvt. Ltd. All the views expressed in this report herein accurately reflects personal views
about the subject company or companies & their securities and no part of compensation was, is or will
be directly or indirectly related to the specific recommendations or views contained in this research
report.

Disclosure in terms of Conflict of Interest:

(a) High Brow Market Research Pvt. Ltd. or his associate or his relative has no financial interest in the
subject company and the nature of such financial interest;
(b) High Brow Market Research Pvt. Ltd. or its associates or relatives, have no actual/beneficial
ownership of one percent or more in the securities of the subject company,
(c) High Brow Market Research Pvt. Ltd. or its associate has no other material conflict of interest at
the time of publication of the research report or at the time of public appearance;

Disclosure in terms of Compensation:

High Brow Market Research Investment Advisor Pvt. Ltd. policy prohibits its analysts, professionals
reporting to analysts from owning securities of any company in the analyst's area of coverage.
Analyst compensation: Analysts are salary based permanent employees of High Brow Market
Research Pvt. Ltd.

Disclosure in terms of Public Appearance:

(a) High Brow Market Research Pvt. Ltd. or its associates have not received any compensation from
the subject company in the past twelve months;
(b) The subject company is not now or never a client during twelve months preceding the date of
distribution of the research report.
(c) High Brow Market Research Pvt. Ltd. or its associates has never served as an officer, director or
employee of the subject company;
(d) High Brow Market Research Pvt. Ltd. has never been engaged in market making activity for the
subject company.