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Tuesday, January 12, 2016

SBI to monetise non-core assets

SBI said it is planning to monetise non-core assets and list some of its subsidiaries for meeting capital needs as well as global risk norms, Basel III, which will kick in from March 2019, according to the media reports.

Public sector banks need Rs. 1.80 lakh crore to meet Basel III norms, while the Government will provide only Rs. 70,000 crore, SBI chairperson Arundhati Bhattacharya said, adding that the rest will have to be borne by banks through profits and non-core assets.

“For instance, for us, we have a number of non-core assets which we are looking at monetising. We also have very successful subsidiaries which we have not listed. So, we can look at those as well,” she said at an Assocham event.

DCB Bank’s net dips 3.1% at Rs 41.2 cr in Dec quarter

Private sector lender DCB Bank Ltd on Tuesday reported a decline of 3.1 per cent in its standalone net profit for the third quarter ended December 31, 2015 at Rs 41.2 crore.

The bank had posted the net profit of Rs 42.5 crore in corresponding quarter of previous fiscal, said DCB Bank Ltd in a filing to the BSE on January 12, 2016.

However, total income of the bank rose 17.9 per cent to Rs 477.05 crore in Q3 FY16 from Rs 404.49 crore in Q3 FY15.

In the quarter, provisions (other than tax) and contingencies decreased to Rs 20.96 crore from Rs 21.67 crore in previous quarter and increased from Rs 18.42 crore in the corresponding quarter of last fiscal.

NII, the difference between interest earned on loans and interest paid on deposits, grew 31.6 per cent at Rs 160.46 crore versus Rs 121.9 crore in the year ago period. Non-interest income down marginally by 1.6 per cent to Rs 47.20 crore from Rs 47.99 crore in the same period a year ago.

During the quarter under review, the bank’s gross non-performing assets (Gross NPA) increased to 1.98 per cent of total loans, compared with 1.87 per cent in the year-ago quarter. Net NPA of the bank too grew to 1.12 per cent against 1.00 per cent in corresponding period last year.

Meanwhile, shares of the Bank ended Tuesday’s trade at Rs 75.10 apiece, down 1.18 per cent, from previous close on BSE.

Solar sector funding dips to $25.3 bn in 2015

Solar sector globally attracted corporate funding worth USD 25.3 billion in 2015 against that of USD 26.5 billion in 2014, says a report. "Total global corporate funding in the solar sector, including venture capital/private equity (VC), debt financing, and public market financing, raised by public companies came to USD 25.3 billion, compared to USD 26.5 billion in 2014," according to a report by clean energy communications and consulting firm Mercom Capital Group. Mercom Capital Group CEO Raj Prabhu said that overall it was a good year for the solar sector considering the turbulence in the stock markets and trouble with "yieldcos in the second half of the year. The extension of the Investment Tax Credit (ITC) was a much needed boost for the sector, paving the way for a strong 2016." Global VC investments came to USD 1.1 billion in 83 deals in 2015, compared to USD 1.3 billion in 85 deals in 2014, the statement said. Despite a weak fourth quarter, public market financing had its strongest year with almost USD 6 billion raised in 38 deals, compared to the 2014 record of USD 5.2 billion in 52 deals.

Fertilizer production to touch 245 lakh mt this fiscal: Min

The Indian Government has said that the fertiliser production will touch 245 lakh mt this fiscal as against 225 lakh mt last year. Commenting on the issue, Chemicals and Fertilisers Minister Anant Kumar told the media, "About half-a-dozen closed fertiliser plants are made functional and are going for production soon. First of them would be Gorakhpur plant of Uttar Pradesh which would start production in 2-3 days." “There will be no stoppage of subsidy to farmers as "it is necessary for strengthening the agriculture sector. We will continue to give subsidy on fertilisers," he added. The Minister asserted that there would be no shortage of urea this year and ruled out any scope for black marketing. As per reports, the Government is planning to introduce 'Khanij Kalyan Yojna' in mining areas of the country.