Latest News

Shares of Vodafone Idea hit a new record low of Rs 5.13, down 9 per cent on the BSE on Wednesday after CRISIL downgraded its rating on non-convertible debentures (NCDs) of Rs 3,500 crore to 'CRISIL A/Negative' from 'CRISIL A+/Negative'. The ratings agency noted that the rating revision is on account of deterioration in the company's business and financial risk profile over the medium-term due to lower profitability than expected, although significant synergy benefits were accrued ahead of the earlier plan. Despite the company’s deleveraging plans, net debt may continue to exceed Rs 1 trillion by the end of March 31, 2020, CRISIL said in rating rationale. Vodafone Idea plans to monetise its 11.15 per cent stake in Indus Towers, post completion of the Bharti Infratel and Indus Towers merger. The proceeds from this transaction is estimated at about Rs 5,630 crore as on June 30, 2019. Besides, the company is also looking to sell its fibre assets. Read C...

Financial News Rating agency CRISIL said the banks in question would need to find an extra Rs 40,000 crore as bad loan provisioning for the 12 big-size cases being referred, on Reserve Bank of India (RBI) order, to the National Company Law Tribunal (NCLT) for resolution. These 12 large accounts had become non-performing assets (NPAs) on the banks' books by end-March 2016. CRISIL's study shows the banks had already provisioned 40 per cent for these NPAs worth Rs 2 lakh crore — that is, about Rs 80,000 crore. CRISIL believes the lenders will have to take a haircut (the term for difference between the market value of assets used as loan collateral and the amount of the loan) of 60 per cent. That means banks will have to make a total provision for Rs 120,000 crore, said Krishnan Sitaraman, senior director at CRISIL. If banks were asked to provide the additional Rs 40,000 crore in this financial year, this would create huge pressure on their bottom line. The impact co...

Private sector Axis Bank will raise Rs 5,000 crore by issuing bonds on a private placement basis. "The board of directors of the bank today approved the allotment of 50,000 unsecured, redeemable non-convertible subordinated debentures, Basel III compliant tier II debentures aggregating to Rs 5,000 crore on a private placement basis," Axis Bank said in a regulatory filing. According to Basel III Capital Regulations, banks have to improve and strengthen their capital planning processes so as to be ready to mitigate any concerns that may arise if there are potential stresses on asset quality and consequential impact on performance and profitability of banks. Banks in India have been implementing Basel III norms in phases since April 1, 2013 and are set to be fully compliant by March 2019, little behind globally accepted deadline of January 1, 2019. Axis Bank said it will list the debentures in the wholesale debt market segment of BSE and NSE. The bonds are rated ...