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IOB planning to raise Rs 900 crore through QIP & other modes

Indian Overseas Bank has said that it is planning to raise around Rs 900 crore through QIP, private placement and other modes. The bank, which was in need of around Rs 2,100 crore nifty buy sell chart capital, got a commitment from the Government of India, which is the major shareholder of the Bank, on Wednesday that it will infuse Rs 1,200 crore into the Bank, the proposed fund raising is to fill the gap, said Bank's senior official.

Speaking to Business Standard M Narendra, chairman and managing director, Indian Overseas Bank said that the Bank has received a Letter of Approval from the Government of India to infuse around Rs 1,200 crore nifty buy sell signals capital.

He added, with the 14% credit growth, which the Bank set a nifty buy sell signals target, the Bank would require around Rs 2,100 crore mcx commodity charts capital, taking into account a certain level of profit plough back into the Bank and for the balance money the Bank will look at options including private placement, QIP, perpetual bond.

“Depends up on the nifty live chart with buy sell signals market condition, we will look at raising the money this fiscal or next fiscal in different tranches," said Narendra.

IOB is one of the 20 public sector banks in which Government decided to infused around Rs 14,000 crore in 2013-14, through preferential allotment of equity in its favour. Government's stake in IOB currently stands at around 78.2%.

Indian Overseas Bank is one of the largest public sector banks in the country with a total business of over Rs 3.67 lakh crore and set a target to cross Rs 4.50 lakh crore. Going forward the Bank is planning to give thrust to SMEs and retail.

On the SME side of the total advance 12% are lend to SMEs, which Narendra want to increase to 15% in a year's time. IOB's exposure to this mcx commodity charts sector is now at around Rs 24,000 crore and target is to close the fiscal with Rs 30,000 crore, said Narendra.

Besides, being a traditional lending business the Bank is now planning to go one step further by giving advisory support, which venture capital or private equities generally does in an investee commodity charts company for better performance.

IOB would be looking at increasing its market share from the current 2.75-2.8% to 3.5% in future and the Bank is also working towards to be among the top five nationalised banks in terms of business volumes, from the top seven position, said Narendra.

The company’s 2QFY14 USD services revenue grew 2.7% qoq, which is in line with street’s estimates. EBIT margin of 20.8% was up 260 bps qoq and ahead of analysts view as FX and improved utilization (160 bp qoq) offset late 1Q wage hikes. Total INR revenue was in line with nifty buy sell signals analysts’ view but EPS beat their estimates on margin gains. 3Q USD services revenue growth guidance of 1.8 – 3.6%qoq is slightly better than analysts’ estimates and reflects a pick up in Wipro’s growth relative to recent history, Geojit BNP Paribas Financial Services said in a note post the second quarter earnings.

Management’s tone was bullish on discretionary spending and the company’s improved win rates. However, it seems that the company still has to bridge the gap to match peer level growth rates. Wipro’s underlying metrics continue to improve. a) Top 10 accounts again grew ahead of the company’s qoq growth. b) Core US market recovered. c) the drag India and Middle – East market has started to lessen d) voluntary attrition is still lower yoy (13.5% versus 14.6%) and e) operating cash flow at 89% of net income remains healthy. Management continues to nifty live chart with buy sell signals target peer level revenue growth by 4Q at stable margins. It is expected that margins could rise in the medium term as Wipro’s per employee profitability remains well below its peers, the note said.

Recently the stock recorded strong upward move and may take a breather in the near term. The brokerage maintains 'buy' rating on the stock with a mcx charts target price of Rs 550.

Kotak Mahindra Bank today reported a consolidated net of Rs 583 crore for the quarter ended September 30, 2013 as compared to Rs 502 crore for the quarter ended September 30, 2012, a gain of 16%.

Total commodity charts Income (consolidated) has decreased from Rs 4,035 crore for the quarter ended September 30, 2012 to Rs 3,696 crore for the quarter ended September 30, 2013.

Consolidated net interest margin at 4.9% vs 4.6% y-o-y.

The standalone Q2 PAT stood at Rs 352.5 crore against Rs 280 crore in the same period last year, up 26%.

Standalone NII up 22% at Rs 924 crore  for the quarter ended September 2013 vs Rs 758 crore in the same period last year.

GPPL reported strong operational performance for Q3CY13. PAT grew 716%yoy to Rs441m (on adjusted base), sharply above estimate of Rs304m, led by higher cargo and higher nifty buy sell chart margins. PAT on reported basis grew 440%yoy.

Container mcx charts volumes grew 29.4%yoy to 163k TEUs (on a low base) led by vessel upsizing and market share gains. Bulk volumes grew 32%yoy to 986K tones led by coal cargo. GPPL added a new India-Middle East service wef Sept-13.

Average realizations grew 7.1%yoy to Rs427/tonne led by higher container realizations. EBIDTA/tonne grew 54.3%yoy to Rs208/tonne. Revenues grew 38%yoy to Rs1.26bn, EBIDTA grew 99%yoy to Rs614m (est of Rs541m). EBIDTA margin grew to 48.6% from 33.8% in Q3CY12 (est of 44.1%). Other income grew 25.6%yoy to Rs98m led by dividend income of Rs38m from PRCL. GPPL paid MAT of Rs106m (no P&L impact due to credit claimed) as it exhausted the unabsorbed depreciation in its books, IDFC securities said in a note post second quarter earnings.

GPPL’s operating performance continues to remain strong and we expect 68% CAGR in earnings over CY12-14E. "We like GPPL for its strong parentage, geographical advantage and scalability potential. Stock trades at 13.2x CY14E earnings and 1.5x P/B. Maintain Outperformer with price target of Rs66." the note said.

Cairn India reported 46% yoy increase and 8% qoq increase in earnings to Rs33.9bn (our estimate, Rs34.5bn). Forex gain of Rs4.3bn, overall production growth of 4% yoy and steady realizations (-1% yoy, +2% qoq) boosted earnings.3 exploration wells all showing potential for oil & gas, DoC filed for Raageshwari S-1 discovery, IDFC Securities said in a note post the second quarter earnings.

Cairn has seen its stock price appreciate 12% over last six months on the back of i) weak rupee, ii) strong crude, iii) exploration clearances and iv) expectations of a rapid ramp up in Rajasthan output to >200 kb/d. We believe that the rupee and mcx charts Crude prices will help support earnings in the near term while operational improvements will deliver support over the medium term. We believe however that the timelines for all clearances will be more back ended, despite the IDP being cleared by the Government. Our underlying assumption of FY14E exit rate being lowered is borne out by no mention of earlier upper limit of ~215 kb/d in the management commentary, though the company still maintains that ~200 kb/d will be exceeded by year end. "We believe that the ~Rs105/sh of cash provides adequate downside support, even as weaker rupee and high crude pushes back peak earnings to FY15E from our earlier estimate of FY14E. Reiterate Outperformer with a revised TP of Rs362/nifty signals share," the note said.

Accelya Kale Solutions has tanked 12% to Rs 613 after reporting 18% year-on-year (yoy) decline in consolidated net profit at Rs 16.56 crore for the first quarter ended September 2013 (Q1) on account of mark to commodity charts market loss of Rs 8.52 crore on forward foreign exchange contacts.

The small cap information technology consulting and nifty buy sell signals software firm had profit of Rs 20.17 crore in the same quarter previous year. The mcx commodity charts company’s consolidated operating income however, grew 17% at Rs 79.28 crore on yoy basis.

Weak September quarter performance along with low project off-take has made nifty buy sell chart analysts wary of cement stocks. These stocks could see a downside of more than 5% or more from these levels, they said.

Stocks like Shree Cements, Ambuja Cements and Ultratech Cements have risen by 10.8, 13.3 and 3.5% since April this year. The stock price of ACC has remained more or less the same.

The June-September quarter is typically bad for the cement sector due to monsoons. This year's bumper monsoon has made things worse for this nifty signals sector.

Further, some analysts believe that with elections round the corner the possibilities of investments and projects picking up too remains low.