Day: 10th Aug 2017
Sensex tanks 267 points. Nifty hits one-month low.
1. Market outlook: Signals bearish; key Nifty support at 9880, 9820. [1]
2. Nifty likely to drift lower, crucial support at 9862: 4 stocks to trade today: Gaba [2]
Here are 5 factors that spooked investors:
==> 1. Weak global markets: Markets from Japan to the UK were in the red on Thursday amid geopolitical concerns over North Korea’s nuke threat. Investors flocked to gold that hit a two-month high and other safe havens, such as Japanese yen and the Swiss franc. Hang Seng was the worst hit in Asian markets, having ended the session 1.34 per cent lower. In Europe, UK’s FTSE100 was worst hit with a 1.10 per cent fall. Euro Stoxx 50 fell 0.6 per cent to 3,448.
==> 2. Poor advance-decline ratio: The advance-decline ratio was 1:9 on Thursday, even though the broader market indices recovered about 1 per cent from day’s low. A weak advance-decline ratio signals that the euphoria is over. For some time, it was being observed that even as the benchmark Sensex and Nifty were scaling new heights, the broader market that includes midcap and smallcap stocks were not participating in the rally amid concerns over valuations. Of the 2,683 companies that traded on Thursday, only 390 ended higher, suggesting a broader selloff. As selling extended to the fourth session in a row, the euphoria got over and the bulls were on the back foot.
==> 3. Valuation concern: Time and again, analysts have warned of rich valuations in the market. Selling can come into a richly valued market for any reason, as investors tend to find excuse to book profits, when they do not expect their stock to sustain at prevailing valuations. The Sensex is trading at price-to-earnings ratio of 24 compared with a five-year average PE of 19.23 and 10-year PE average of 19.33. "A 500-point froth that we were seeing on the Nifty50 is geting corrected." Sanjiv Bhasin, EVP-Markets & Corp Affairs at India Infoline
==> 4. Sebi order: Sentiment has been weak in the cash market ever since Sebi barred 331 stocks from trading, suspecting most of the firms being 'shell'. There has been repors suggesting that the ban has triggered an estimated margin shortfall of around Rs 800-1,000 crore. “When the fall has to happen, you have to find a reason for it. The ongoing fall need not be attributable to Sebi ruling, but that is as good a reason, as any,” said Anand Tandon, Independent Analyst.
==> 5. Slowdown in FPI inflows: Inflows from foreign portfolio investors into India have slowed of late as rich valuations and delay in corporate earnings recovery have reduced their appetite for domestic stocks. After pouring over Rs 50,000 crore in equity markets during February-July, foreign portfolio investors have sold shares worth Rs 2,549 crore (net) in August so far, according to data available with depository NSDL.
Day: 11th Aug 2017
Nifty, Sensex lose over 1% to close one month lower, SBI tanks 5% on poor Q1 results
BSE Sensex closed lower by 318 points, or 1.01%, to 31,214, while the Nifty 50 fell 109 points, or 1.11%, to 9,711.
The BSE Sensex lost over 1% to close at 31,214 points on Friday for its first weekly loss in six, tracking global markets as escalating tensions between the US and North Korea continued to drive investors away from risk assets.
Asian equity markets slid further and Wall Street closed sharply lower after US President Donald Trump warned Pyongyang against attacking Guam or US allies. “The mood got aggravated because global markets opened negatively... it’s more of a fear factor...,” said Anita Gandhi, whole-time director, Arihant Capital Markets, adding that markets were overripe in terms of valuation.
The broader NSE Nifty also closed down, falling 1.11% to close at 9,710.80. The benchmark BSE Sensex was 0.69% lower at 31,313.59. Both indexes are set to post nearly three percent fall on week. Nifty Bank index dropped as much as 1.3%. The index was down nearly 2.5% this week up to Thursday’s close.
Nifty Auto index fell as much 2.3% to its lowest since 24 May, with Tata Motors and Eicher Motors figuring among top losers. Union Bank of India Ltd fell as much as 7.7% to its lowest in over seven months after the state-run bank’s profit fell about 30 percent, missing analysts’ estimate. Shares of J Kumar Infraprojects and Prakash Industries resumed trade after India’s Securities Appellate Tribunal stayed a Securities and Exchange Board of India (Sebi) order on trading curbs. Shares in both companies shed as much as 20%."
"livemint.com" With inputs from Reuters:
■ 3.30pm: BSE Sensex closed lower by 318 points, or 1.01%, to 31,214, while the Nifty 50 fell 109 points, or 1.11%, to 9,711. SBI, M&M and ONGC are major losers with losses to the tune of 5.38%, 3.20%, and 2.26%, respectively.
■ 3.15pm: BSE Sensex trades lower by 291 points, or 0.92%, to 31,241, while the Nifty 50 falls 115 points, or 1.17%, to 9,705. Metal, auto and realty stocks fall. BSE metal index falls 3.64%, BSE auto index declines 1.52%, and BSE realty index falls by 1.23%.
■ 2.20pm: BSE Sensex trades lower by 400 points, or 1.27%, to 31,132, while the Nifty 50 falls 132 points, or 1.35%, to 9,688. Auto index falls 2.2%.
■ 1.45pm: SBI (State Bank of India) stock falls 4.75% on poor Q1 earnings.
■ 1.17pm: BSE Sensex trades lower by 258 points, or 0.82%, to 31,274, while the Nifty 50 falls 85 points, or 0.87%, to 9,735. Tata Motors, Laresen & Toubro (L&T) and SBI are major losers with losses to the tune of 2%, 2.08%, and 3.56%, respectively.
■ 12.15pm: Among 30 Sensex stocks, 23 (out of 30) trade in red, while only seven are in green. In Nifty, 35 stocks post losses while only 15 are in positive range.
■ 11.55am: BSE Sensex trades lower by 185 points, or 0.59%, to 31,346, while the Nifty 50 falls 62 points, or 0.63%, to 9,758. Asian Paints, Larsen & Toubro (L&T) fall 2%, and 1.66%, respectively.
■ 10.30am: Manappuram Finance Ltd fell 9% to Rs85.15 after the company reported 3.22% decline in its net profit to Rs155.17 crore against Rs160.33 crore a year ago.
■ 10.20am: Adani Group stocks fell. Adani Transmission Ltd fell 7.5%, Adani Power Ltd 5%, Adani Entertainment Ltd 3.7%.
■ 10.15am: Indian Overseas Bank (IOB) fell 4% to Rs22.30 after the bank reported a net loss of Rs646.66 crore against Rs1,450.50 crore a year ago.
■ 10.10am: Union Bank of India fell 6% to Rs126.35 after the bank reported worsened asset quality to 12.63% in June quarter from 10.16% a year ago.
■ 9.50am: Balaji Telefilms Ltd fell 2% to Rs 151 after the company said its loss of the quarter widened to Rs 23.25 crore against Rs 67 lakh a year ago.
■ 9.40am: Power Finance Corporation (PFC) Ltd fell 4.7% to Rs118.45 after the company reported 16.6% shrinkage in profits from a year ago to Rs14.29 crore against Rs 17.13 crore a year ago.
■ 9.37am: BSE Sensex trades lower by 252 points, or 0.80%, to 31,280, while the Nifty 50 falls 89 points, or 0.91%, to 9,731.
■ 9.36am: Prakash Industries Ltd fell 20%, J Kumar Infraprojects Ltd 20% after the Securities Appellate Tribunal (SAT) on Thursday stayed a 7 August Securities and Exchange Board of India (Sebi) directive against J. Kumar Infraprojects Ltd and Prakash Industries Ltd labelling them suspected shell companies.
■ 9.30am: Tata Motors Ltd fell 5% to Rs362.65. The company on Wednesday reported lower then expected performance by its JLR led by higher than expected forex losses and significant increase in other expenses.
■ 9.25am: IFCI Ltd fell 10% to Rs21 after the company said its net loss widened to Rs317.90 crore in June quarter to Rs110.28 crore a year ago.
■ 9.15am: The rupee was trading at 64.26 a dollar, down 0.29% from its Tuesday’s close of 64.08. The rupee opened at 64.21 a dollar and touched a high of 64.27, a level last seen on 26 July.
■ 9.10am: The 10-year bond yield was at 6.501%, a level last seen on 7 July, compared to its previous close of 6.466%. Bond yields and prices move in opposite directions.
■ 9.00am: Asian currencies were trading lower. Philippines peso was down 0.51%, South Korean won 0.38%, China renminbi 0.35%, Indonesian rupiah 0.23%, Taiwan dollar 0.17%, Malaysian ringgit 0.1% and Thai baht 0.05%. However, Japanese yen was up 0.26%."
Day: 14th Aug 2017
Stock market were bullish today.
==> Avanti Feeds hits record high after stellar Q1 numbers (Capital Market - Aug 14 2017, 09:45). The result was announced after market hours on Friday, 11 August 2017. Meanwhile, the S&P BSE Sensex was up 227.05 points, or 0.73% at 31,440.64. The S&P BSE Mid-Cap index was up 234.86 points, or 1.59% at 14,961.13. High volumes were witnessed on the counter. On the BSE, 43,000 shares were traded on the counter so far as against the average daily volumes of 27,648 shares in the past one quarter.
==> Sun Pharma drops after bitter Q1 outcome (Capital Market - Aug 14 2017, 09:20). The announcement was made after market hours on Friday, 11 August 2017. Meanwhile, the S&P BSE Sensex was up 128.04 points or 0.46% at 31,356.01. On the BSE, 76,000 shares were traded on the counter so far as against the average daily volumes of 5.54 lakh shares in the past one quarter.
==> Adani Ports recovers after posting Q1 results (Capital Market - Aug 14 2017, 09:49). The announcement of results was made on Saturday, 12 August 2017. The stock had dropped 7.27% in three sessions to settle at Rs 383.90 on 11 August 2017, from a close of Rs 414 on 8 August 2017 ahead of the results. Meanwhile, the S&P BSE Sensex was up 214.63 points or 0.69% at 31,428.22. On the BSE, 21,989 shares were traded on the counter so far as against the average daily volumes of 3 lakh shares in the past one quarter.
Nifty under pressure, support seen at 9700. [1]
Nifty has entered the oversold territory but this may just be a pause in a bull market. The Nifty may find support around the 9,650-9,700 levels. Investors will be better suited to avoid stocks in the realty & infra sectors. In the coming weeks, on the downside 9,440 will be an important level to watch."
Day: 16th Aug 2017
Closing Bell: Sensex ends 321 pts higher, Nifty ends a tad below 9900; FMCG, banks gain
The Sensex ended up 321.86 points at 31770.89, while the Nifty ended higher by 103.15 points at 9897.30.
3:30 pm Market at Close: Equity benchmark indices ended the session on a very strong note, with the Sensex ending 320 points higher and the Nifty ended just a tad below 9900.
The Sensex ended up 321.86 points at 31770.89, while the Nifty ended higher by 103.15 points at 9897.30. The market breadth was positive, but a tad narrow as 1,638 shares advanced against a decline of 946 shares, while 118 shares were unchanged.
Cipla, Tata Motors and Tech Mahindra gained the most on both indices, while NTPC, Asian Paints and Power Grid were the top losers.
3:18 Market Check: Benchmark indices had a strong trading session, with the Nifty nearing 9900-mark.
The Sensex was up 324.48 points at 31773.51, while the Nifty was up 103.95 points at 9898.10. The market breadth was narrow as 1593 shares advanced against a decline of 896 shares, while 113 shares were unchanged.
3:15 pm UDAY scheme update: Debt-laden power distribution companies in states which participated in the UDAY scheme, meant for their revival, have saved Rs 15,000 crore till March this year, the power ministry said today.
The Ujwal DISCOM Assurance Yojana (UDAY) was launched in November, 2015 and has completed more than 18 months of operation.
"The participating DISCOMs have achieved net savings of approximately Rs 15,000 crore till March, 2017," the ministry said in a statement.
The Average Cost of Supply (ACS) and Average Revenue Realised (ARR) gaps have come down by almost 14 paise per unit and the AT&C (aggregate technical and commercial) losses have reduced by almost 1 per cent in fiscal 2017, it said.
3:00 pm Management Speak: Satin Creditcare Network reported its numbers with net loss widening sequentially.
In an interview to CNBC-TV18, HP Singh, Founder & MD of Satin Creditcare Network discussed the company's Q1 performance.
Singh said there has been a lag in repayments coming in and this is the last quarter where we are facing headwinds from demonetisation, so there is a loss in Q1.
""75 percent of our territories were impacted by demonetisation. This is considering Uttar Pradesh (UP), Madhya Pradesh, Punjab, Haryana, Maharashtra, if we consolidate all that, we have probably been impacted in about 75 percent of our geographies,"" he added.
2:50 pm Fresh start: A new team of experts and top bureaucrats will likely finalise Finance Minister Arun Jaitley's fifth Union Budget that will sport a different look, starting with a lighter `Part B’ with fewer indirect tax changes because of GST and an expected change in the financial year.
The current financial year witnessed key entries and exits into the North Block, starting from a new Economic Affairs Secretary Subhash Chandra Garg, who will spearhead the budget making process for 2018-19. Chandra replaced Shaktikanta Das, who retired in May.
Similarly, two key finance ministry officials, Department of Financial Services Secretary Anjuly Chib Duggal and Finance Secretary Ashok Lavasa will retire in August and October, respectively, unless they get an extension.
2:40 pm Buzzing Stock: Shares of Coal India slipped nearly 2 percent on the back of poor first quarter numbers.
The company's Q1FY18 net profit declined 23.3 percent at Rs 2,351.2 crore against Rs 3,065.3 crore in a year ago period.
Revenue of the company was up 4.3 percent at Rs 20,567.8 crore versus RS 19,728.05 crore.
The operating profit (EBITDA) declined 17.8 percent at Rs 3,552.7 crore and EBITDA margin was down at 480 bps 18.4 percent.
2:15 pm Market Check: Benchmark indices strengthened their position from the morning movements, with the Nifty firmly above 9850-mark.
The Sensex was up 248.36 points at 31697.39, while the Nifty was up 72.55 points at 9866.70. The market breadth was narrow as 1,527 shares advanced against a decline 899 shares, while 102 shares were unchanged.
Midcaps continued to gain, while a major recovery was seen among banks. ITC, Tata Motors, Tech Mahindra, and Tata Power gained the most on both indices, while Asian Paints, Coal India, and Asian Paints were the top gainers.
2:00 pm Europe Check: European stocks were higher on Wednesday morning, as geopolitical tensions regarding the Korean peninsula eased and investors tracked a muted performance overnight on Wall Street.
The pan-European Stoxx 600 rose 0.53 percent shortly after the opening bell with almost all sectors and major bourses in positive territory.
1:55 pm Buzzing Stock: Granules India gained nearly 10 percent intraday on Wednesday as investors cheered positive news flow for the company. The company on Wednesday said that no observations were made by the US Food and Drug Administration (FDA) for its Gagillapur unit. The company received the Establishment Inspection Report (EIR) for an inspection that was carried in October 2016. The company recently was in the news after it reported a 5.5 percent fall in its June quarter profit. The drug firm reported a 5.54 percent decline in its consolidated net profit at Rs 36.80 crore for the quarter to June.
1:30 pm Management Speak: Prabhat Dairy reported its Q1FY18 numbers. In an interview to CNBC-TV18, Vivek Nirmal, Joint MD of Prabhat Dairy spoke about the results and his outlook for the company.
Prabhat Dairy is a leading company in a B2B space and 2011 onwards, the company is focusing on the consumer business. Except South India, we are present in around 25-26 states with more than 1 lakh retail outlets in general trade, he said.
In modern trade, earlier Prabhat was only present in Maharashtra but now it is also expanded in Delhi and Kolkata and Ahmedabad. All these factors contributed to the growth of the value added products, he added.
1:10 pm: Pushed higher by a recovery in midcaps and banking stocks, the market in the afternoon session extended its gains and Nifty was above 9800-mark.
At 13:02 hrs, the Sensex was up 168.13 points at 31617.16, while the Nifty was up 47.70 points at 9841.85. The market breadth was still narrow as 1,459 shares advanced against a decline of 893 shares, while 97 shares were unchanged.
The Nifty Bank, after falling to levels of 23947, staged a bounceback and led to the strong recovery in Kotak Mahindra Bank.
Midcaps staged a recovery from the day’s low points, outperforming the Nifty during the current session. Autos, bank, FMCG, pharmaceuticals, IT and metals gained the most.
12:53 pm Management Speak: Aarti Industries is in focus on the back of a subdued first quarter. In an interview to CNBC-TV18, Rajendra Gogri, CMD of the company discussed the Q1 performance.
Full-fledged shutdown of acid division had an impact of Rs 8-10 crore, said Gogri. However, we are looking at volume growth of 10 percent in FY18, he added.
12:28 pm Bullion update: Gold prices drifted lower by Rs 153 to Rs 28,958 per 10 grams in futures trade today as participants lightened their positions, largely in tandem with a weak overseas trend.
In futures trading, gold for delivery in far-month December was trading Rs 153 or 0.52 per cent down at Rs 28,997 per 10 grams at the Multi Commodity Exchange with a business turnover of six lots.
12:15 pm Market Check: Benchmark indices extended its gains from the previous hour, with the Nifty trading above 9800-mark.
At 12:14 hrs IST, the Sensex traded up 71.85 points at 31520.88, while the Nifty was up 18.60 points at 9812.75. The market breadth was narrowing as 1,388 shares advanced against a decline of 875 shares, while 92 shares were unchanged.
ITC, Hero MotoCorp, Tech Mahindra and Tata Power gained the most on both indices, while Asian Paints, Larsen & Toubro, Yes Bank and Bosch were the top losers.
11:41 am GST impact: The estimated Rs 5,500 crore capital good leasing sector growing at 15-20 per cent may get tapered due to high Goods and Services Tax (GST) along with few other issues.
""The GST rate of 28 per cent is high for the leasing industry when compared to the earlier five to 15 per cent tax burden. Higher GST rates lead to requirement of higher working capital at any point of time. This results in increasing the cost of leasing an equipment,"" Finance Industry Development Council director general Mahesh Thakkar told PTI.
""The government should actively consider not bracketing the capital goods in the same GST bracket as luxury goods and sin goods. A lower GST rate will help increasing share of leasing in gross capital formation,"" he said. (From PTI)
11:29 am Management Speak: The movie business has been weathering storms in recent months in the form of demonetisation and the Goods and Services Tax (GST), but leading cinema-exhibition company PVR has its eyes firmly set on attracting more audiences.
The company recently launched 10 more screens in Pune as part of its expansion plans, taking its screen count in Maharashtra to 160 screens across 38 properties. After Pune, cities such as Mysore, Hyderabad, Chennai and Ghaziabad will see the launch of around two to three screens each in the next few months.
In all, the company currently has nearly 600 screens in India and adds about 70-75 screens every year, Chief Executive Officer Gautam Dutta told Moneycontrol. The capital expenditure for each new screen is around Rs 2.5 crore on average.
Cinema's classification in the highest GST tax slab of 28 percent, however, is being considered by industry experts to be a stumbling block. Ajay Bijli, PVR's Chairman and Managing Director, has previously said that had it not been for the high GST rate, the company would have been scaling up opportunities for the domestic box office.
Dutta said that while no negative effects of GST have been felt so far, he expects the government to take the entertainment business seriously.
11:07 am Market Check: Benchmark indices were trading off the day’s low points, with the Nifty hovering 9800-mark.
At 11:01 hrs, the Sensex was up 45.85 points at 31494.88, while the Nifty traded higher by 10.85 points at 9805.00. The market breadth continued to be narrow as 1,341 shares advanced against a decline of 753 shares, while 88 shares were unchanged.
Midcaps are back in the green, while pharma, metals, IT and FMCG too gained. Banks were a laggard.
10:55 am Buzzing Stock: Jubilant Foodworks, the operator of Domino’s Pizza and Dunkin’ Donuts, gained around 6 percent intraday on Wednesday as investors cheered a target price hike by CLSA.
The global research firm increased the target price on the stock from Rs 1,600 to Rs 1,900, implying an upside of over 18 percent. Further, CLSA also raised the target PE multiple from 55 times to 60 times as well.
Affirming its positive stance is also the increase in same store sales growth (SSSG) and FY19-20 earnings per share (EPS) forecasts by 6-12 percent as well.
10:45 am Management Speak: Apollo Hospitals Enterprises' Q1 revenues came in line with street estimates while overall occupancy improved.
In an interview to CNBC-TV18, Suneeta Reddy, MD of Apollo Hospitals Enterprises discussed the company's Q1 performance.
June quarter EBITDA margins are low because of losses incurred at Navi Mumbai unit, she said.
She further said that EBITDA margin also impacted due to regulation in stent pricing.
10:25 am Mutual Fund Radar: The total assets of the 10 largest India-focussed offshore funds and ETFs swelled during the quarter ended June 2017 compared with the previous quarter.
It ended the June quarter at USD 27.3 billion compared with USD 25.4 billion in the previous quarter and USD 20.5 billion as of June 30, 2016, Morningstar said in a report. Positive environment in the domestic markets kept sentiments in the Indian stock markets upbeat, leading almost all the major domestic stock market indexes to surge during the quarter, said the report.
The S&P BSE Sensex Index moved up by 4.4 percent, although it was lower than the 11.2% appreciation it witnessed in the previous quarter (ended March 2017).
10:10 am Market Check: Consolidation continued on equity benchmarks, with Sensex trading flat, while the Nifty had a negative bias.
The drag was led by a fall in banks—Nifty Bank and PSU bank index were trading in the red—while pharmaceuticals and FMCG stocks were in the green.
At 10:03 hrs, the Sensex was up 4.74 points at 31453.77, while the Nifty was down 2.25 points at 9791.90. The market breadth was narrow as 1111 shares advanced against a decline of 714 shares, while 68 shares were unchanged.
Sun Pharma, HUL, ITC and Tata Power gained the most, while L&T, Coal India and Bank of Baroda were the top losers.
9:55 am Biocon declines: Shares of Biocon took a beating on Wednesday morning as investors turned cautious of the stock following a report from a research firm. It fell over 5 percent intraday.
HSBC in its report hinted that the company may have withdrawn one application for Trastuzumab, a breast cancer similar. The firm quoted the European Medical Agency (EMA) as its source for the information.
Further, it added, that the company could have withdrawn its filing given the recent cGMP (good manufacturing practices) observations that were issued by the regulator.
9:45 am Buzzing Stock: Shares of JK Tyre and Industries declined nearly 8 percent intraday on Wednesday as the company reported net loss in the quarter ended June 2017 (Q1FY18). The company registered consolidated loss at Rs 108 crore in the quarter ended June 2017 against profit of Rs 100 crore, in the same quarter last year. Revenue of the company was down at Rs 1,943 crore versus Rs 1,958 crore.
9:35 am Update: Benchmark indices were off the day’s high points, with the Nifty falling below 9800-mark.
The Sensex was down 23.80 points at 31425.23, while the Nifty fell 7.35 points at 9786.80. The market breadth was narrowing as 1,028 shares advanced against a decline of 521 shares, while 57 shares were unchanged.
L&T, Coal India and Bank of Baroda lost the most on both indices, while HUL, HDFC, Indiabulls Housing and Tata Power gained the most.
9:15 am Market Opens: Equity benchmarks continued with its positive momentum from the previous session and opened on a good note, with the Nifty reclaiming 9800-mark.
At 9:16 am, the Sensex was up 77.14 points at 31526.17, while the Nifty rose 23.05 points at 9817.20. The market breadth was positive as 626 shares advanced against a decline of 186 shares, while 27 shares were unchanged.
Midcaps were back in favour as they outperformed the benchmarks, while other gainers included FMCG, auto stocks and metals.
Adani Ports, Tata Motors, Tata Power and BPCL were the top gainers, while Larsen & Toubro, Cipla and Asian Paints lost the most on both indices.
The Indian rupee slipped in the early trade on Wednesday. It has opened lower by 16 paise at 64.28 per dollar versus 64.12 Monday.
Pramit Brahmbhatt of Veracity said, ""Encouraging US economic data and FII outflows will help the dollar appreciate. We expect the USD-INR to trade in a range of 64-64.50 for the day.""
The US dollar strengthened after economic data, including July retail sales, beat expectations and cast the economy in a relatively favourable light.
Among global markets, Asian shares were mostly higher in early trade as investors digested earnings releases from regional corporates and a resurgent dollar.
Japan's Nikkei 225 edged down 0.03 percent, with gains in most tech stocks offset by losses in auto names. South Korea's Kospi rose 0.67 percent as markets returned from a public holiday.
Australia's S&P/ASX 200 gained 0.07 percent, as steep gains in the energy sub-index, which was up by 3.26 percent, were offset by declines in the health care, information technology and financial sub-indexes.
US stocks ended little changed on Tuesday as declines in Home Depot and other retailers following results offset upbeat US retail sales data.
The S&P 500 consumer discretionary index, down 0.9 percent, also took a hit from a steep fall in the shares of Coach and Advance Auto Parts after disappointing results. The S&P 500 retail index was down 1.6 percent."
Ref: moneycontrol.com
Day: 18th Aug 2017Sensex loses 230 points, Nifty below 9,900 after Vishal Sikka resigns as Infosys CEO.
BSE Sensex fell significantly on Friday, while the Nifty fell below 9,900. Infosys shares plunge 6% after Vishal Sikka resigned as CEO and managing director.
Mumbai: The BSE benchmark Sensex fell nearly 230 points and Infosys tanked over 7% after Vishal Sikka resigned as MD and CEO of Infosys with immediate effect. Besides, weak global cues on a deadly attack in Spain and rising concerns over the fate of US President Donald Trump’s economic agenda also influenced investors sentiment.
The markets also witnessed intense selling pressure in recent gainers. The Sensex plunged by 207.75 points or 0.65% to 31,587.711 with the sectoral indices led by IT, teck, bank, healthcare, metal, auto and realty, tumbling up to 2.43%. The gauge had gained 581.87 points in the previous three sessions.
On similar lines, the National Stock Exchange (NSE) index Nifty dropped by 73.95 points or 0.74% to 9,830.20. Brokers said sentiment on the domestic bourses suffered a jolt following a meltdown global equities on a deadly attack in Spain and renewed concerns over the fate of US President Donald Trump’s economic agenda. Other laggards that dragged down the key indices were Sun Pharma, HDFC Ltd, Tata Motors, SBI, Kotak Bank, HDFC Bank, Lupin, Adani Ports, Axis Bank, Dr Reddy’s, Coal India and Tata Steel. In Asia, Japan’s Nikkei fell 1.02%, while Shanghai Composite Index was quoting 0.33% lower in early trade today. Hong Kong’s Hang Seng index too shed 0.82%. The Dow Jones Industrial Average ended 1.24% lower in Thursday’s trade.
■ 10.56am: BSE Sensex trades lower by 230 points, or 0.72%, to 31,566, while the Nifty 50 falls 56 points, or 0.56%, to 9,848. BSE healthcare index declines by 1.49%.
■ 10.10am: BSE Sensex trades lower by 210 points, or 0.66%, to 31,586, while the Nifty 50 falls 53 points, or 0.53%, to 9,851. Infosys shares bring IT index down. BSE IT index falls 2.16% as Infosys shares fall 6%. Nifty IT index also trades lower by 1.09%.
■ 9.30am: BSE Sensex trades lower by 253 points, or 0.80%, to 31,542, while the Nifty 50 fell 84 points, or 0.85%, to 9,820.
■ 9.25am: Infosys Ltd fell 6% after the company said Vishal Sikka has resigned as chief executive officer and will become the company’s executive vice chairman. Pravin Rao, currently chief operating officer, will become interim managing director and CEO.
■ 9.20am: United Breweries Holdings Ltd fell 5% to Rs 17.60 after BSE and NSE said that they will suspend trading in the shares of United Breweries (Holdings) Ltd from 8 September while the entire promoter shareholding has been frozen with immediate effect. Trading in UBHL would be suspended from 8 September “on account of non-compliance with financial results and non- payment of fine for two consecutive quarters”, NSE said in a communication.
■ 9.15am:The rupee opened at 64.17 a dollar. At 9.15am, the rupee was trading at 64.16 a dollar, down 0.02% from its Wednesday’s close of 64.14. On Thursday, currency markets were closed on account of Parsi New Year.
■ 9.10am: The 10-year bond yield was at 6.497%, compared to its previous close of 6.507%. Bond yields and prices move in opposite directions.
■ 9.05am: Asian currencies were trading lower. Philippines peso was down 0.54%, South Korean won 0.38%, Taiwan dollar 0.1%, Indonesian rupiah 0.05%, Malaysian ringgit 0.05%. However, Singapore dollar was up 0.12%, and Japanese yen 0.11%."
Ref: 3
References:
1: economictimes.indiatimes.com
2: moneycontrol.com
3: Sensex, Nifty tank, Infosys shares plunge as Vishal Sikka resigns
Six banks to stop existing from 1 April 2020 as they merge with bigger government banks of India. These banks are: Allahabad Bank, Andhra Bank, Corporation Bank, Oriental Bank of Commerce, Syndicate Bank and United Bank of India.
In a similar move in 2017, four banks namely 'State Bank of Bikaner & Jaipur', 'State Bank of Hyderabad', 'State Bank of Mysore' and 'State Bank of Travancore' were merged into their parent organization 'State Bank of India'.
Below is the list of 50 banks in India that are now defunct. The period extends from 1770 to 1 April 2020.
1. Allahabad Bank
Allahabad Bank is a nationalised bank with its headquarters in Kolkata, India. It is the oldest joint stock bank in India. On 24 April 2014, the bank entered into its 150th year of establishment. The bank was founded in Allahabad in 1865.
As of 31 March 2018, Allahabad Bank had over 3245 branches across India. The bank did a total business of INR 3.8 trillion during the FY 2017–18.
The bank's market capitalisation in June 2018 was US$573 million and it ranked #1,882 on the Forbes Global 2000 list. On 30 August 2019, the Finance Minister Nirmala Sitharaman announced merger of Allahabad Bank with Indian Bank.
Wikipedia Card:
Former type: Public sector undertaking
Traded as: BSE: 532480. NSE: ALBK
Industry: Banking, Financial services
Fate: Merged with Indian Bank
Successor: Indian Bank
Founded: 24 April 1865; 154 years ago in Allahabad, North-Western Provinces, British India
Defunct: 1 April 2020
Headquarters: Kolkata, West Bengal, India
Number of locations: 3,503 branches (Mar-2018)
Area served: India
Key people: S. S. Mallikarjuna Rao (MD & CEO)
Services:
Finance and insurance
Consumer banking
Corporate banking
Revenue: Increase ₹19,051 crore (US$2.7 billion)(2018)
Operating income: Decrease ₹3,438 crore (US$480 million)(2018)
Net income: Decrease₹-4,674 crore (US$−660 million)(2018)
Total assets: Increase ₹236,460.23 crore (US$33 billion) (2016)
Number of employees: 23,210 (2019)
Capital ratio: 8.69%
Website: allahabadbank.in
2. Alliance Bank of Simla
The Alliance Bank of Simla was a British-run though India-registered bank that commenced operations in Simla in 1874 under the management of James Lewis Walker. The bank was established to take over the business of the United Bank of India, established in 1866, which had operations in Simla and Umballa. Its board put the United Bank of India in voluntary liquidation on Saturday 21 March, and Alliance Bank commenced operations on Monday, 23 March. Alliance Bank failed on 27 April 1923 due to speculation by its management. At the time that it failed it had 36 branches, including ones in Lahore, Lucknow, Peshawar, Rawalpindi, and Rangoon.
3. Andhra Bank
Andhra Bank (BSE: 532418, NSE: ANDHRABANK) is a medium-sized public sector bank (PSB) of India, with a network of 2885 branches, 4 extension counters, 38 satellite offices and 3798 automated teller machines (ATMs) as of 31 March 2019. During 2011–12, the bank entered the states of Tripura and Himachal Pradesh. The bank now operates in 25 states and three Union Territories. Andhra Bank has its headquarters in Hyderabad, Telangana, India. Plans to merge it with Union Bank of India were disclosed by Minister of Finance (India) in August 2019.
The Government of India owns 90.85% of its share capital as on 31 March 2019. The state owned Life Insurance Corporation of India holds 7.80% of the shares. The bank has done a total business of ₹3,106 billion (US$44 billion) and has earned a net profit of ₹5.40 billion (US$76 million) for the Financial Year 2015–16. Board of directors of bank approved merger into union bank on 13.09.2019.
Wikipedia Card:
Former type: Public sector undertaking
Traded as: NSE: ANDHRABANK
BSE: 532418
Industry: Banking. Financial services.
Fate: Merged with Union Bank of India
Successor: Union Bank of India
Founded: 20 November 1923; 96 years ago
Founder: Bhogaraju Pattabhi Sitaramayya
Defunct: 1 April 2020
Headquarters: Hyderabad, Telangana, India
Areas served: India, Dubai, Malaysia, Jersey City (United States)
Key people: J. Packirisamy (MD & CEO)
Products: Consumer banking, Credit cards, corporate banking, finance and insurance, private banking, wealth management, Agricultural Loans
Revenue: Increase ₹18,027.42 crore (US$2.5 billion)(2016-17)
Operating income: Increase₹4,387.95 crore (US$620 million)(2016-17)
Net income: Decrease₹174.32 crore (US$24 million) (2016-17)
Total assets: Increase ₹222,126.13 crore (US$31 billion)(2016-17)
Number of employees: 20981 (2016-17)
Capital ratio: 12.38% (2016-17)
Website www.andhrabank.in
4. Arbuthnot & Co
Arbuthnot & Co was a mercantile bank, based in Madras, India. It was founded as Francis Latour & Co in the late 18th century, then became Arbuthnot De Monte & Co and failed spectacularly on 22 October 1906.
In the last quarter of 1906, Madras (now Chennai) was hit by the worst financial crisis the city was ever to suffer. Of the three best-known British commercial names in 19th century Madras, one crashed; a second had to be resurrected by a distress sale; and the third had to be bailed out by a benevolent benefactor. The agency house to close shop, Arbuthnot's, was considered the soundest of the three. Parry's (now EID Parry), may have been the earliest of them and Binny and Co.'s founders may have had the oldest associations with Madras, but it was Arbuthnot & Co., established in 1810, that was the city's strongest commercial organization in the 19th Century. When it fell, thousands lost their savings and the good name of British stability was severely rocked.
Arbuthnot & Co had two partners at the time of its failure, namely Sir George Gough Arbuthnot and J.M. Young, a salaried partner who seems to have had no voice in the running of the firm. The firm entered into an arrangement with Patrick Macfadyen who operated P Macfadyen & Co which was effectively Arbuthnot's London branch. Macfadyen engaged in speculation, in the process losing huge amounts of the firm's money. Prior to its collapse, Arbuthnots employed between 11,000 and 12,000 people, had 7,000 creditors and £1,000,000 in liabilities. It was ascertained that the liabilities of Macfadyen's were £400,000 and there were 1,000 creditors. It was agreed by the English trustee in bankruptcy and the official assignee in Madras that the assets of the two insolvent firms were to be treated as one and the same business, all creditors were to be entitled to share rateably in the pooled assets.
Macfadyen committed suicide by throwing himself under a train in 1906, and both firms had to close their doors. Both Macfadyen and Arbuthnot were consistently over-optimistic concerning their speculations. Arbuthnot was tried for the fraudulent activities the collapse revealed, and received a sentence of "18 months rigorous imprisonment".
A key figure in case was the Madras lawyer, V. Krishnaswamy Iyer, who went on to organize a group of Chettiars that founded "Indian Bank" in 1907.
5. Bank of Bombay
The Bank of Bombay was the second of the three presidency banks (others being the Bank of Calcutta and the Bank of Madras) of the Raj period. It was established, pursuant to a charter of the British East India Company, on 15 April 1840.
The bank's headquarters were in Bombay, now called Mumbai. The Bank of Madras undertook all the normal activities which a commercial bank was expected to undertake. The Bank of Bombay, in the absence of any central banking authority at that time, also conducted certain functions which are ordinarily a preserve of a central bank.
The Bank of Bombay and two other Presidency banks - the Bank of Calcutta and the Bank of Madras - were amalgamated and the reorganized banking entity was named the Imperial Bank of India on 27 January 1921. The Reserve Bank of India, which is the central banking organization of India, in the year 1955, acquired a controlling interest in the Imperial Bank of India and the Imperial Bank of India was renamed on 30 April 1955 to the State Bank of India.
Wikipedia Card:
Industry: Banking, Financial Services
Fate: Merged with Bank of Calcutta and Bank of Madras
Successor: Imperial Bank of India
Founded: 15 April 1840
Defunct: 27 January 1921
Headquarters: Bombay, Bombay Presidency, British India
Area served: British India
6. Bank of Chettinad
Bank of Chettinad is a defunct bank that originated in the Nattukottai Chettiar community.
1929: Two prominent Nattukottai Chettiar business family partnerships established the bank with its head office in Rangoon. They registered it as a private company in India and incorporated it under the Indian Companies Act of 1913. One of the families, from Kanadukathan, ran the firm. It was involved in many activities and was also closely associated with the Chettinad Corporation. In particular, it borrowed from Chartered Bank, Imperial Bank of India, First National City Bank, and Lloyds Bank for on-lending to Chettiar moneylenders.
1932: It opened an office in Colombo.
In 1942, the Japanese Military Authority created the Peoples Bank of Burma as a joint venture between it, the Burma Executive Authority (the Burmese puppet regime), and the Yokohama Specie Bank. Bank of Chettinad at the time was Burma's largest bank, the Peoples Bank of Burma took over Bank of Chettinad's 45 branches, and established its own head office in the former Burmese headquarters of Central Bank of India.
1946: The Supreme Court of Ceylon ruled that Bank of Chettinad was not a bank in that it primarily made loans on promissory notes and mortgages and did not take deposits.
1963: The Burmese government nationalized all foreign banks and essentially drove out the large population of people of Indian origin, among whom there were many Chettiars. Bank of Chettinad by then was no longer operating under that name and was not among the 24 foreign banks that the government nationalized.
1965: Bank of Chettinad was voluntarily wound up.
7. Bank of Hindostan
Bank of Hindostan (1770-1832), a now defunct bank, is considered as among the first modern banks in colonial India. It was established by the agency house of Alexander and Company. In India, the paper currency was first issued during British East India Company rule. The first paper notes were issued by the private banks such as Bank of Hindustan and the presidency banks during late 18th century. Via the Paper Currency Act of 1861, the British Government of India was conferred the monopoly to issue paper notes in India.
8. Bank of Madras
The Bank of Madras was one of the three Presidency Banks of British India, along with the Bank of Bengal and the Bank of Bombay. It was established on 1 July 1843 through the amalgamation of a number of existing regional banks and headquartered in Madras (now Chennai). It was merged with the other Presidency banks in 1921 to form the Imperial Bank of India, which later became the State Bank of India.
Wikipedia Card:
Industry: Banking, Financial Services
Fate: Merged with Bank of Calcutta and Bank of Bombay
Successor: Imperial Bank of India
Founded: 1 July 1843
Defunct: 27 January 1921
Headquarters: Madras, Madras Presidency, British India
Area served: British India
9. Bank of Madura
Bank of Madurai was a massive Tamil Nadu based bank established in 1943 by Karumuttu Thiagarajan Chettiar. It acquired Chettinad Mercantile Bank (est. 1933) and Illanji Bank (est. 1904) throughout the course of the 1960s. The Bank of Madura was a Chettiar bank with a large customer base of over 2 million customers and a network of more than 280 branches and 40+ ATM centres spread across around 100 cities in India. The bank merged with ICICI Bank Limited, under Section 44A of the Banking Regulation Act, 1949, under the leadership of Chairman K.M. Thiagarajan. The Bank had roughly 44 billion INR in assets at the time of the merger, not accounting for inflation. The Reserve Bank of India approved the merger effective 10 March 2001. It was headquartered at Madurai.
The merger was received well and benefitted the Bank of Madura, with their share price sharply rising, and finally closing at Rs 142 - over double what they hovered at only weeks ago. ICICI, however saw a sharp drop in their share price totally four rupees, it closing at Rs 164. The move was described as a positive strategic manoeuvre by the parties involved and news outlets alike. Bank of Madura Shareholders signed off on the deal on the 19th of January, 2001, agreeing to a 2:1 merger.
10. Bank of Rajasthan
The Bank of Rajasthan Ltd (Hindi: बैन्क ओफ राजस्थान) (BSE: / (500019 ) was a private sector bank of India which merged with ICICI Bank in 2010.
Wikipedia Card:
Former type: Private company (BSE),
Industry: Banking, Loan, Capital Markets and allied industries
Fate: Merged with ICICI Bank
Founded: 1943
Defunct: 2010
Headquarters: Clock Tower, Udaipur, India
Key people: G. Padmanabhan (MD & CEO)
Products: Loans, Savings, Investment vehicles, etc.
Revenue: ₹15,073.344 million (US$210 million) (year ended March 2009)
Net income: Increase ₹1,177.119 million (US$17 million) (March 2009)
Website: www.bankofrajasthan.com
11. Bengal Central Bank
Bengal Central Bank was a commercial bank based in Bengal. It was founded by J. C. Das in 1918 as the Bengal Central Loan Company. On 18 December 1950, it merged with Comilla Banking Corporation, Comilla Union Bank and Hooghly Bank to form the United Bank of India.
12. Bharat Overseas Bank
Bharat Overseas Bank (BOB) was a private bank based in Chennai, India. In 2007 it merged with Indian Overseas Bank, which took over all the bank's employees, assets, and deposits.
BOB was established in 1973 order to take over for the Bangkok branch of the Indian Overseas Bank. It was one of the few private banks that the Reserve Bank of India permitted to have a branch outside India, and was the only bank representing India in Thailand. It was owned by seven banks (initial ownership figures in parentheses): Indian Overseas Bank (30%), Bank of Rajasthan (16%), Vysya Bank (14.66%), Karur Vysya Bank (10%), Federal Bank (19.67%), South Indian Bank (10%), and Karnataka Bank (8.67%), but in 2007 Indian Overseas Bank fully acquired the bank.
13. Bharatiya Mahila Bank
Bharatiya Mahila Bank (BMB) was an Indian financial services banking company based in Mumbai, India. Former Indian Prime Minister Manmohan Singh inaugurated the system on 19 November 2013 on the occasion of the 96th birth anniversary of former Indian Prime Minister Indira Gandhi. As part of the Modi government's banking reforms and to ensure greater banking outreach to women, the bank merged with State Bank of India on 1 April 2017.
While being run by women, and lending exclusively to women, the bank allowed deposits to flow from everyone. India was the third country, after Pakistan and Tanzania, to have a bank exclusively to benefit women.
Former type: State ownership
Industry: Banking, Financial services
Fate: Merged with State Bank of India
Founded: 2013
Defunct: 1 April 2017
Headquarters: Delhi, India
Key people: S M Swathi(ED)
Products: core banking, credit card, consumer banking, corporate banking, finance and insurance, investment banking, mortgage loans, private banking, private equity, wealth management
Owner: Government of India
Number of employees: 500
Website: www.bmb.co.in
14. Bank of Calcutta
Formerly: Bank of Calcutta
Industry: Banking, Financial Services
Fate: Merged with Bank of Bombay and Bank of Madras
Successor: Imperial Bank of India
Founded: 2 June 1806
Defunct: 27 January 1921
Headquarters: Calcutta, Bengal, British India
Area served: British India
The Bank of Calcutta (a precursor to the present State Bank of India) was founded on 2 June 1806, mainly to fund General Wellesley's wars against Tipu Sultan and the Marathas. It was the first bank of India and was renamed Bank of Bengal on 2 January 1809.
The bank opened branches at Rangoon (1861), Patna (1862), Mirzapur (1862), and Benares (1862). When it became known that the bank intended to open a branch at Dacca, negotiations began that resulted in Bank of Bengal in 1862 amalgamating Dacca Bank (est. 1846). A branch at Cawnpore followed.
The Bank of Calcutta, and the two other Presidency banks — the Bank of Bombay and the Bank of Madras — amalgamated on 27 January 1921 and the reorganized banking entity assumed the name Imperial Bank of India. The Reserve Bank of India, which is the central banking organization of India, in the year 1955, acquired a controlling interest in the Imperial Bank of India and the Imperial Bank of India was renamed on 30 April 1955 as the State Bank of India.
15. Centurion Bank of Punjab
Type: Public. BSE:532273. NSE:CENTBOP. Luxembourg Stock Exchange
Industry: Banking, Insurance, Capital Markets and allied industries
Founded: Panaji, 1994 (as Centurion bank)
Headquarters: Corporate Centre, 1201,Raheja Centre, Free Press Journal Marg, Nariman Point, Mumbai 400 021 India
Key people: Chairman: Mr. Rana Talwar
Products: Loans, Credit Cards, Savings, Investment vehicles, Life and General Insurance (Insurance) etc.
Website: www.centurionbop.co.in
The Centurion Bank of Punjab (formerly Centurion Bank) was an Indian private sector bank that provided retail and corporate banking services. It operated on a strong nationwide franchise of 403 branches and had over 5,000 employees. The bank listed its shares on the major Indian stock exchanges and on the Luxembourg Stock Exchange. On 23 May 2008 HDFC Bank acquired Centurion Bank of Punjab.
16. Chartered Bank of India, Australia and China
Industry: Banking
Fate: Merged with Standard Bank
Successor: Standard Chartered
Founded: 1853
Defunct: 1969
Headquarters: London
The Chartered Bank of India, Australia and China (informally The Chartered Bank) was a bank incorporated in London in 1853 by Scotsman James Wilson, under a Royal Charter from Queen Victoria.
Though lacking a truly strong domestic network in Britain, it was influential in the development of British colonial trade throughout the East of Suez.
In 1969 Chartered Bank merged with Standard Bank, which did business throughout Africa. The merged enterprise was incorporated in London under the name Standard Chartered.
17. Commercial Bank of India
Founded: Bombay, British India (1845)
Defunct: 1866
Number of locations: 10
Products: Banking
The Commercial Bank of India, also known as Exchange Bank was a bank which was established in Bombay Presidency (now Mumbai), in 1845 of the British Raj period. The bank failed in the crash of 1866, after successfully operating for 20 years. The bank had eight branches, exclusive of the head office at Bombay, viz: London, Calcutta, Hong Kong, Foochow (now Fuzhou), Shanghai, Hankow (now part of Wuhan), Yokohama and Singapore, with an agency for the purchase of bullion at San Francisco. Commercial Bank of India then was winded up as directed by the Master of the Rolls, under the corresponding section of the Companies Act of England, where the company was registered under the Indian law and was not registered in England, but was carrying on business in England.
18. Corporation Bank
Former type: Public sector undertaking
Traded as: BSE: 532179. NSE: CORPBANK
Industry: Banking, Financial services
Fate: Merged with Union Bank of India
Successor: Union Bank of India
Founded: 12 March 1906; 114 years ago
Founder: Khan Bahadur Haji Abdullah Haji Kasim Saheb Bahadur
Defunct: 1 April 2020
Headquarters: Mangalore, Karnataka, India
Area served: India
Key people: P. V. Bharathi (MD & CEO)
Products: e-banking, consumer banking, corporate banking, finance and insurance, investment banking, mortgage loans, private banking, private equity, savings, Securities, asset management, wealth management, Credit cards,
Revenue: Decrease ₹17,494.70 crore (US$2.5 billion)
Operating income: Decrease ₹3,894.46 crore (US$550 million) (2019)
Net income: Decrease ₹-6,332.98 crore (US$−890 million) (2019)
Total assets: Decrease₹221,891.31 crore (US$31 billion) (2019)
Owner: Government of India
Number of employees: 19,569 (2016)
Capital ratio: 12.30% (2019)
Website: www.corpbank.com
Corporation Bank is a public-sector banking company headquartered in Mangalore, India. The bank has a pan-Indian presence. Presently, the bank has a network of 2,432 fully automated CBS branches, 3,040 ATMs, and 4,724 branchless banking units across the country.
History ::
Corporation Bank was founded on 12 March 1906 in Udupi, with Rs. 5000 capital, Haji Abdulla Haji Khasim Saheb Bahadur as founding president, and guided by the principles of the Swadeshi movement of Bala Gangadhar Tilak.
On 14 November Corporation Bank said it raised an amount of Rs 500 crore of the Basel III compliant Tier-II Bonds (Series1) and the same has been allotted by the Securities Allotment Committee of the Board of the Bank.
On 2 December 2017, Corporation Bank launched its RuPay Select and RuPay Platinum credit cards. RuPay credit cards are accepted at all RuPay-enabled 1.5 million-plus PoS terminals and 80,000-plus e-commerce merchants in India and all ICS Partner acceptance points (POS, e-commerce merchants) globally.
On 30 August 2019, Finance Minister Nirmala Sitharaman announced that Corporation Bank and Andhra Bank would be merged into Union Bank of India. The proposed merger would make Union Bank of India the fifth largest public sector bank in the country with assets of ₹14.59 lakh crore (US$200 billion) and 9,609 branches. The Board of Directors of Andhra Bank approved the merger on 13 September. The Union Cabinet approved the merger on 4 March, and it will be completed on 1 April 2020.
19. Dass Bank
Dass Bank (Bengali: দাশ ব্যাঙ্ক) was a commercial bank founded by Alamohan Das in 1939 in Calcutta that grew to have 60 branches all over Bengal. After the Partition of India, Dass Bank had to close because it had lost the majority of its branches when East Bengal became Pakistan.
20. Delhi and London Bank
The Delhi and London Bank was a bank that operated in British India. It was originally incorporated as the Delhi Banking Corporation in India in 1844 and under this better known name in London in 1865. The bank separated in 1916 with many of the Indian branches merging into the Alliance Bank of Simla (established in 1874) and the London branch was bought by the Boulton Brothers. The bank was liquidated in 1924 following failure.
21. Dena Bank
Formerly: Devkaran Nanjee Banking Company Ltd
Former type: Public sector undertaking
Traded as: BSE: 532121. NSE: DENABANK
ISIN: INE077A01010
Industry: Banking, Financial Services
Fate: Amalgamated with Bank of Baroda
Successor: Bank of Baroda
Founded: 26 May 1938
Founder: Devkaran Nanjee
Defunct: 1 April 2019
Headquarters: C-10, G Block, Bandra-Kurla Complex, Bandra (E), Mumbai, Maharashtra, India
Number of locations: 1,872 branches (2018)
Area served: India
Services: consumer banking, corporate banking, finance and insurance, investment banking, mortgage loans, private banking, private equity, savings, Securities, asset management, wealth management
Revenue: Decrease ₹8,932.2247 crore (US$1.3 billion) (2018)
Operating income: Decrease ₹-3,178.7532 crore (US$−450 million) (2018)
Net income: Decrease ₹-1,923.1532 crore (US$−270 million) (2018)
Total assets: Decrease ₹62.7257 crore (US$8.8 million) (2018)
Total equity: Decrease ₹6,943.7548 crore (US$970 million) (2018)
Owner: Government of India (80.74%)
Number of employees: 13,613 (2018)
Capital ratio: 11.09% (2018)
Website: www.denabank.com
Dena Bank Ltd was an Indian public sector bank. It was headquartered in Mumbai and had 1,874 branches. The bank was founded in 1938 and the Indian government nationalized it in 1969.
On 17 September 2018, the Government of India proposed the amalgamation of Dena Bank and Vijaya Bank with the Bank of Baroda, pending approval from the boards of the three banks. The Union Cabinet and the boards of the banks approved the merger on 2 January 2019. Under the terms of the amalgamation, Dena Bank and Vijaya Bank shareholders received 110 and 402 equity shares of the Bank of Baroda, respectively, of face value ₹2 for every 1,000 shares they held. The amalgamation became effective from 1 April 2019.
22. Exchange Bank of India & Africa
The Exchange Bank of India & Africa was an Indian bank with a number of overseas branches in East African countries that operated from 1942 until its failure in 1949. It expanded rapidly across the trade routes between India and Africa but suffered a crisis in 1949 which caused it to fail.
History
The bank was established in Bombay in 1942. It expanded rapidly and at its peak had branches in India at Ahmedabad, Amraoti, Amritsar, Bhavnagar, Bangalore, Calcutta, Cochin, Delhi, Karachi, Khamagaon, Kolhapur, Madras, Madura, Nagpur, Rajkot, Surendranagar, Tinnevelly, and Tuticorin. It also had overseas branches at Aden, Colombo, Dar-es-Salam, Jaffna, Jinga, Kampala, London, Mombasa, and Nairobi. The bank opened three East African branches in 1947, with the branch in Tanzania opening in late 1948.
A crisis developed in the bank from about mid-February 1949, resulting in a heavy run on the bank. The bank suspended payments in May and was liquidated in June 1949. The Managing Director of the bank at the time, Jaswantrai Manilal Akhaney, was charged with and found guilty of criminal breach of trust for disposing of certain securities that a client had deposited with the bank.
23. Global Trust Bank (India)
Global Trust Bank (India) (GTB) was founded on 21 October 1994 and commenced operations at Secunderabad. Its founders included Ramesh Gelli (its first Chairman), Sridar Subasri, and Jayant Madhob, among others. The bank introduced a number of technology-based innovations and responsive service.
GTB was involved in the stock market scam of 2001, that the stockbroker Ketan Parekh ran. GTB lent heavily to individuals speculating in the stock market; when the market crashed the bank suffered extensive losses. One consequence was that merger talks with UTI Bank fell through. The Reserve Bank of India (RBI) forced Gelli to resign. Gelli's successor resigned after six months, and Gelli's son joined the board of directors. In 2004, Gelli briefly returned to the bank in February 2004 before being again forced to resign.
RBI examined GTB's accounts for 2001-2 and found that GTB's net worth had turned negative, but did not close the bank. GTB did not address its problems. Instead, and despite its dire straits, GTB continued to grow. It had 87 branches in 2002–2003, and grew to 103 branches before the RBIC forced it to close. It also paid interest on deposits at a rate equal to or better than other banks in its area. GTB sought to recapitalize itself by bringing in new investors. In mid-2004 GTB was in close talks with Newbridge Capital. Newbridge was to invest US$200million, subject to RBI approval. However, RBI was reluctant to permit private investors to restructure GTB.
The RBC issued a Moratorium Order on 24 July 2004. Before GTB's winding up, Goldman Sachs owned 4% of the bank and the International Finance Corporation owned 5%. Oriental Bank of Commerce acquired GTB on 14 August 2004. Shareholders in GTB received nothing for their shares; depositors, however, suffered no loss. After acquiring GTB, OBC discovered that GTB's situation was even worse than it had appeared at the time of acquisition. OBC did gain an increased presence in the southern parts of India, where its presence had been weak and GTB's was extensive.
GTB had been leaner than OBC. OBC had ten times the staff and branches than GTB, but only four to five times as much in the form of deposits, investments, or advances.
24. Grindlays Bank
Headquarters: Grindlay & Co, 54 Parliament Street, Westminster on 22 August 1899
Industry: Banking
Fate: Taken over by Australia and New Zealand Banking Group in 1984
Founded: 1828 in London, United Kingdom
Founder: Robert Melville Grindlay
Headquarters: London, United Kingdom
Number of locations: 183 (1863 - 1963)
The historic overseas bank was established in London in 1828 as Leslie & Grindlay, agents and bankers to the British army and business community in India. Banking operations expanded to include the Indian subcontinent, the Middle East and elements of Africa and Southeast Asia. It was styled Grindlay, Christian & Matthews in 1839, Grindlay & Co from 1843, Grindlay & Co Ltd from 1924 and Grindlays Bank Ltd in 1947 until its merger with the National Bank of India.
The National Bank of India was formed in 1863 and became one of the larger London overseas banks operating not only in the Indian sub-continent but in communities around the Indian Ocean. In 1948 it purchased the smaller Grindlays Bank Ltd, renaming itself National and Grindlays Bank Ltd some ten years later. Following further acquisitions, its name was shortened to Grindlays Bank in 1974. Grindlays was taken over by Australia and New Zealand Banking Group in 1984 and renamed ANZ Grindlays Bank. Standard Chartered Bank acquired ANZ Grindlays in 2000, after which the Grindlays name fell out of use.
25. Imperial Bank of India
Type: Private (80%)
Industry: Banking, Financial Services
Fate: Nationalization into State Bank of India in 1955
Predecessor: Bank of Calcutta(1806-1921), Bank of Bombay(1840-1921), Bank of Madras(1843-1921)
Successor: State Bank of India
Founded: 27 January 1921
Founder: J. M. Keynes
Headquarters: Bombay, Bombay State, India
Area served: India
The Imperial Bank of India (IBI) was the oldest and the largest commercial bank of the Indian subcontinent, and was subsequently transformed into the State Bank of India in 1955. Initially, as per its royal charter, it acted as the central bank for British India prior to the formation of the Reserve Bank of India in 1935.
26. Lord Krishna Bank
Lord Krishna Bank was a private sector bank headquartered at Kodungallur, in Thrissur District of Kerala state in India. The bank was founded in 1940. The bank was founded by Sri. Narayana Prabhu at Kodungallur. In the 1960s, it acquired three commercial banks:
Kerala Union Bank (est. 22 September 1952):
Thiyya Bank, which was established in 1941, and merged on 16 November 1964;
Josna Bank, which was established on 12 June 1944 in Cochin by N. Govinda Pai and N. Lakshmana Pai, of the Gowda Saraswath Brahmin community.
In 1961, Josna Bank acquired the assets and liabilities of the Tripunithura Union Bank (est. 23 July 1929). The merger between Josna Bank and Lord Krishna Bank was effective 13 October 1965. At the time Josna Bank had 14 branches.
Lord Krishna Bank became a scheduled commercial bank in 1971. In 2007, Lord Krishna Bank was merged with Centurion Bank of Punjab.
27. Madhavpura Mercantile Cooperative Bank
Former type: cooperative
Industry: Banking
Fate: Licence cancelled by RBI on 1 June 2012
Founded: Ahmedabad, Gujarat (10 October 1968)
Defunct: yes
Headquarters: Ahmedabad
Area served: Interstate
Key people: BKR Maruti(CEO), Ramesh Parikh (Chairman), Devendra Pandya (Managing Director)
Net income: – ₹1,147.13 crore (US$160 million)
Madhavpura Mercantile Cooperative Bank (MMCB) was a Gujarat-based interstate cooperative bank that became defunct and lost its licence after it was unable to pay back the money it owed public depositors. Reserve Bank of India cancelled its licence in June 2012 under section 22 of the Banking regulations Act, 1949.
Involvement with stock brokers and impact of the 2001 Sensex crash
In 1999–2000, when the bank had 50,000 public depositors, it started lending out large sums of money to stock brokers in gross violation of Reserve Bank of India (RBI) rules and regulations. The MMCB had issued pay orders worth ₹1,200 crore (US$170 million) to stock broker Ketan Parekh, which he discounted at Bank of India. The bank had also lent money to Mukesh Babu and Sirish Maniar of the brokerage firm Maniar Group. At the time banks in India were not allowed to lend more than ₹15 crore (US$2.1 million) to stock brokers. In early 2001 Parekh and other brokers made a large sum of money when the Bombay Stock Exchange's Sensex saw a bull run; however, when the dotcom bubble burst, the Sensex dropped down to 3,000 points, and Parekh and the bank started having problems. On 8 March 2001, the news broke out that the bank had given a huge guarantee to Parekh which he lost in the stock crash. As little remained in the bank's coffers, public depositors began withdrawing their money; only a few were successful.
Prior to the scam, the Madhavpura Mercantile Cooperative Bank was the largest urban cooperative bank in Gujarat. It had a deposit base of ₹1,200 crore (US$170 million) in March 2001, half of which was from other banks. Seeing the condition of the bank and fear of losing their money among the depositors the RBI restricted the bank's operations on 13 March 2001. The Central Registrar of Cooperative Societies superseded the bank's 12-member board.
28. Mercantile Bank of India, London and China
Industry: Financial Services
Fate:
Acquired by HSBC, 1959.
Acquired by Citibank, 1984.
Acquired by the Bank of Tokyo-Mitsubishi, Ltd., 1987
Predecessor:
Mercantile Bank of Bombay (1853)
Mercantile Bank of India, London, and China (1857)
Mercantile Bank of India, Ltd (1893)
Founded: 1853
Headquarters:
Bombay (1853)
London (1858)
The Mercantile Bank of India, London and China (later, Mercantile Bank, Ltd) was an Anglo-Indian bank with business focus in the Far East. It was founded in Bombay in 1853 as the Mercantile Bank of Bombay; and later in 1857 was renamed to Mercantile Bank of India, London, and China with London as its headquarters.
By 1959, through a series of mergers and divisions, its name had been shortened to 'Mercantile Bank, Ltd', and was acquired by HSBC the same year. The bank was an issuer of Hong Kong bank notes until 1974.
29. Nath Bank
The Nath Bank (Bengali: নাথ ব্যাংক) was an Indian-owned bank founded by Kshetra Nath Dalal in 1926 in Noakhali, now in Bangladesh but then in undivided India. By 1947 when the Partition of India was imminent, Nath Bank had its head office and three branches in Noakhali district, as well as a branch in Comilla in Tipperah District. Noakhali and Tipperah districts were to become a part of Pakistan, so the bank shifted its head office to Kolkata. During this time the Indian banks were facing severe crisis. In 1949, the Nath Bank had to be bailed out by the Reserve Bank of India. Even that failed to resolve the crisis and the bank was finally liquidated in 1950. Economist Arun Ghosh attributes its collapse to its over-aggressive expansion of branch banking. The failure of the Nath Bank created a panic among investors.
30. Nedungadi Bank
Rao Bahadur T.M. (Thalakodi Madathil) Appu Nedungadi, who was famous as the first Malayalam novelist by writing the first Malayalam novel, titled Kundalatha, established Nedungadi Bank in 1899 at Calicut in Kerala. It was first private sector commercial bank to be set up in South India. The bank was incorporated in 1913. In 1964 it acquired the Cochin National Bank in Trichur, and then the year after Nedungadi took over selected assets and liabilities of the Coimbatore National Bank (est. 25 January 1933). Cochin National Bank had three offices and Coimbatore National Bank had only one.
Over time, Nedungadi established some 174 branches, including branches at all major metropolitan cities such as New Delhi, Calcutta, Chennai, Mumbai, Ahmedabad, etc.
In 2002 the Joint Parliamentary Committee (JPC) probing a stock scam pointed out discrepancies in the conduct of business by Nedungadi Bank. In 2003 Punjab National Bank took it over. At the time of the merger with PNB, Nedungadi Bank's shares had zero value, with the result that its shareholders received no payment for their shares.
31. New Bank of India
New Bank of India was established in 1936, in Lahore by Mulk Raj Kohli, a professor of Economics turned banker. It moved its head office to Amritsar in 1947, and then to New Delhi in 1956. It acquired Didwana Industrial Bank in 1965, Chawla Bank in 1969, and Sahukara Bank in 1971. Earlier New Bank of India had acquired Punjab & Kashmir Bank.
Didwana Industrial Bank had been established in 1925 in Didwana.
Chawla Bank, which had been established in 1913, had its registered office in Bannu, North Western Frontier Province, and a branch office at Dehra Dun in the United Provinces. Ninety-five percent of its depositors and creditors migrated to India after Partition.
Sahukara Bank, est. 1912 in Ludhiana, had branches in Pakistan that it lost at Partition.
Lala Gokul Chand Suri founded Punjab & Kashmir Bank in 1912 in Delhi with operations in Rawalpindi.
The Government of India nationalized New Bank of India in 1980. Punjab National Bank acquired New Bank of India in 1993. The only other nationalized bank merged with another—except for State Bank of India with its associate banks—was the merger of Bharatiya Mahila Bank with State Bank of India in 2017.
32. North Malabar Gramin Bank
Former type: Public Sector Bank, sponsored by Syndicate Bank
Industry: Financial Commercial banks
Successor: Kerala Gramin Bank
Founded: Estd. under Regional Rural Banks Act 1976
Defunct: July 7, 2013
Headquarters: Kannur, Kerala, India
Website: www.nmgbank.com
North Malabar Gramin Bank (NMGB; Malayalam: à´¨ോർത്à´¤് മലബാർ à´—്à´°ാà´®ീൺ à´¬ാà´™്à´•്) was a Regional Rural Bank in Kerala, India. It was established in 1976 as a Scheduled Commercial Bank as per the Regional Rural Banks Act of 1976 to provide banking facilities in the North Malabar region. It operated in seven districts of Kerala with the headquarters at Kannur, and had 222 branches as of 14 June 2013. The bank distinguished itself as one of the few profit making RRBs in India before its amalgamation.
On 8 July 2013, per a Government of India notification, North Malabar Gramin Bank (sponsored by Syndicate Bank) and South Malabar Gramin Bank (sponsored by Canara Bank) were amalgamated into a single entity as the Kerala Gramin Bank, with its head office at Malappuram, and Canara Bank as the sponsor bank, after consulting NABARD, the concerned sponsor banks and the Government of Kerala.
33. Oriental Bank Corporation
Formerly: Bank of Western India
Former type: Private
Industry: Banking
Founded: Bombay, Bombay Presidency, British India (1842)
Defunct: 1892
Headquarters: London, United Kingdom of Great Britain and Ireland
Areas served: Asia, Australia, New Zealand, South Africa, San Francisco
The Oriental Bank Corporation or "OBC" was a British imperial bank founded in India in 1842 which grew to be prominent throughout the Far East. As an Exchange bank, the OBC was primarily concerned with the finance of trade and exchanges of different currencies. It was the first bank in Hong Kong and the first bank to issue banknotes in Hong Kong.
34. Oriental Bank of Commerce
Former type: Public sector undertaking
Traded as:
BSE: 500315
NSE: ORIENTBANK
Industry: Banking, Financial services
Fate: Merged with Punjab National Bank
Successor: Punjab National Bank
Founded: 19 February 1943; 77 years ago
Founder: Rai Bahadur Sohan Lal
Defunct: 1 April 2020
Headquarters: Gurgaon, Haryana, India
Area served: India
Key people: Mukesh Kumar Jain (MD & CEO)
Products: Investment banking, Consumer banking, Commercial banking, Retail banking, Private banking, Asset management, Pensions, Mortgages, Credit cards
Revenue: Decrease ₹17,867.69 crore (US$2.5 billion)(2019)
Operating income: Increase ₹3,754 crore (US$530 million) (2019)
Net income: Increase ₹55.00 crore (US$7.7 million) (2019)
Total assets: Increase₹271,909.57 crore (US$38 billion) (2019)
Owner: Government of India
Number of employees: 21,729(2019)
Capital ratio: 12.73% (2019)
Website: www.obcindia.co.in
Oriental Bank of Commerce (BSE: 500315 NSE: ORIENTBANK) is an Indian public sector bank. Headquartered at Gurgaon, Haryana, has 2390 branches and 2625 ATMs across India.
35. Oudh Commercial Bank
Former type: Private company
Industry: Banking
Fate: Failed
Founded: 1881
Defunct: 1958
Headquarters: Faizabad, India
Oudh Commercial Bank or Awadh Commercial Bank was an Indian bank established in 1881 in Faizabad and operated until 1958 when it failed. It was the first commercial bank in India having limited liability and an entirely Indian board of directors. It was a small bank that had no branches and that served only local needs.
History ::
Before it failed it acquired the Bank of Rohilkund (or Bank of Rohilkhand), which Sir Yusef Ali Khan, Nawab of Rampur (1832–1887), had promoted over the objection of local moneylenders. Bank of Rohilkund was established in 1862, just after the acceptance of limited liability for banks. Bank of Rohilkund was the first promoted by a princely state; it too was a small bank.
36. Palai Central Bank
Palai Central Bank was a commercial bank headquartered in Kerala, South India that functioned during the middle of last century. Although it was started in a small remote city, the bank grew up to become not only the biggest bank but the biggest institution in Kerala, after the state government, and the 17th largest among the 94 scheduled banks in India. The Kerala High Court in 1960 ordered the liquidation of Palai Central Bank on a petition from the Reserve Bank of India.
From the time of its founding in 1927, Palai Central Bank had an eventful history. The bank's existence the period preceding and immediately following India's independence, when Kerala – a small State in the far south – could exert only very little influence in the nation's capital. It was also a period when the need for protecting the interests of different segments of society was not a major consideration when policy decisions were taken by the Central Government.
37. Pandyan Bank
Pandyan Bank was a private sector bank that S.N.K. Sundaram established at Madurai, Tamil Nadu, on 11 December 1946. In 1963 Canara Bank acquired Pandyan Bank.
The bank introduced innovations such as plastic pouches for savings bank pass-books. More importantly, it created an all-women's branch at Town Hall Road in Madurai in 1947, staffed by ten women, one of whom was Kamala Sundaram, S.N.K. Sundaram's daughter.
The merger with Canara Bank took effect on 2 December 1963. At the time of the acquisition, Pandyan Bank had 83 branches, and 800 staff.
38. South Malabar Gramin Bank
Former type: Public Sector Bank, sponsored by Canara Bank
Industry: Financial. Commercial banks
Successor: Kerala Gramin Bank
Founded: Estd. under Regional Rural Banks Act 1976
Defunct: July 7, 2013
Headquarters: Malappuram, Kerala, India
Website: www.smgbank.com
South Malabar Gramin Bank (now Kerala Gramin Bank) was a Regional Rural Bank in India, and had its headquarters at Malappuram in Kerala. Its area of operation was limited to 8 districts in Kerala, India. It had been financing farm & non-farm sectors and other employment generation programs through its 506 branches spread over these 8 districts.
As per Government of India notification dated 08.07.2013, amalgamation of South Malabar Gramin Bank and North Malabar Gramin Bank sponsored by Syndicate Bank had been effected into a single entity as Kerala Gramin Bank with its head office at Malappuram and sponsor bank as Canara Bank after consulting NABARD, concerned sponsor banks and State government of Kerala. Government of India notification is effective from 08.07.2013.
39. State Bank of Bikaner & Jaipur
Former type: Public
Traded as:
BSE: 501061
NSE: SBBJ
Industry: Banking, Insurance, Capital Markets and allied industries
Fate: merged with State Bank of India on 31 March 2017
Founded: Jaipur, 1963
Defunct: 31 March 2017
Headquarters: Head Office, Tilak Marg, Jaipur 302 005 India
Key people: Arundhati Bhattacharya(Chairman), Dibakar Mohanty(Managing Director)
Products: Loans, Savings, Investment vehicles, etc.
Net income: Increase ₹ 850.60 Crore (March 2016)
Number of employees: 12,831
Parent: State Bank of India
Website www.sbbjbank.com
State Bank of Bikaner & Jaipur (SBBJ) was a major Indian bank. It was a subsidiary of State Bank of India, with which it was merged on 31st March 2017. As of 2015, SBBJ had 1,360 branches, mostly located in the state of Rajasthan, India. Its branch network out of Rajasthan covered all the major business centers of India. In 1997, the bank entered the capital market with an Initial Public Offering of 1,360,000 shares at a premium of Rs. 440 per share. For the year 2015-16 the net profit of the company was Rs. 8.5 billion.
40. State Bank of Hyderabad
Former type: Public Sector
Industry: Banking, Insurance, Capital Markets and allied industries
Fate: Merged in State Bank of India in 2017
Founded: Nizam Mir Osman Ali Khan, Hyderabad State Bank Hyderabad, 8 August 1941
Defunct: 31 March 2017
Headquarters:
Gunfoundry, Abids
Hyderabad India
Area served: Pan-India.
Key people: Rajnish Kumar (banker) (Chairman), Mani Palvesan (Managing Director)
Products: Personal Banking Schemes, Corportate Banking, SME Banking Schemes, FOREX, Mobile Banking, Internet Banking, Credit Cards, Insurance
Net income: Rs. 1317 crores
Owner: Government of India
Number of employees: 17,000
Parent: State Bank of India (100% owned)
Website: www.sbhyd.com
State Bank of Hyderabad (SBH) was a nationalized bank in India, with headquarters at Gunfoundry, Abids, Hyderabad, Telangana. It was one of the five associate banks of State Bank of India (SBI) and was one of the scheduled banks in India. It was founded in 1941 as the Hyderabad State Bank. From 1956 until 31 March 2017, it had been an associate bank of the SBI, the largest such. The State Bank of Hyderabad was merged with SBI on 1 April 2017.
The Bank's head office was situated at Gunfoundry Area, Hyderabad, India. SBH had over 2,000 branches and about 18,000 employees. The Bank's business had crossed Rs. 2.4 trillion as on 31.12.2015 with a net profit of Rs. 8.12 billion.
The bank had performed well in the decades before merger, winning several awards for its banking practices. Mrs. Arundhati Bhattacharya was the Chairman and Shri Mani Palavesan the Managing Director at the time of merger.
It was the chief banker of Telangana State.
41. State Bank of Indore
State Bank of Indore (Indore Bank) was a government-owned Indian bank and the largest of State Bank of India's (SBI) six associate bank subsidiaries. In October 2009, the Government of India gave its in-principle approval to a merger between State Bank of India and State Bank of Indore. On 15 July 2010 the Cabinet cleared the merger. On 26 August 2010 State Bank of Indore officially merged into State Bank of India.
At the time of the merger the bank had over 470 branches in more than 300 cities and towns. In March 2009, the business turnover of State Bank of Indore exceeded Rs. 500 billion.
History
1920: The Bank of Indore was incorporated under a special charter from Maharaja Tukoji Rao Holkar III, who was the ruler from 1903 to 1927 of the former princely state of Indore. Indore State awarded the Bank a monopoly for 10 years, granted it certain concessions and subscribed to the Bank's share capital. Indore Bank's main branch and headquarters was in the city of Indore, located on the Malwa Plateau, just north of the Vindhya Range.
1960: The Bank of Indore became a subsidiary of State Bank of India w.e.f. 1 January 1960 under the name State Bank of Indore. Prior to the merger, SBI held a 98.05% stake in Indore Bank.
1962: State Bank of Indore acquired the Bank of Dewas, which had been established in 1936 and had been the first bank in Dewas district.
1965: State Bank of Indore acquired Dewas Senior Bank, which had been incorporated in 1941.
1971: State Bank of Indore was up-graded to class 'A' category bank.
2010: State Bank of Indore was merged into State Bank of India.
42. State Bank of Mysore
Former type: Public sector
Traded as:
BSE: 532200
NSE: MYSOREBANK
ISIN: INE651A01020
Industry: Banking, Insurance, Capital Markets and allied industries
Fate: Merged with State Bank of India
Predecessor: The Bank of Mysore Ltd.
Successor: State Bank of India
Founded: 2 October 1913; 106 years ago as The Bank of Mysore Ltd.
Founder: Sir M. Visvesvaraya
Defunct: 31 March 2017
Headquarters: Bengaluru
Number of locations: 1074 branches and 9 extension counters
Area served: India
Key people:
Chairman: Arundhati Bhattacharya
Managing Director: N.K.Chari
Products: Deposits, Personal Banking Schemes, C & I Banking Schemes, Agri Banking Schemes, SME Banking Schemes
Services: Loans, Deposits, Mobile Banking, ATM Services, NRI Services, Real Time Gross Settlement (RTGS) Transactions, National Electronic Fund Transfer (NEFT), Internet Banking, Debit Card
Net income: Increase₹276 Crores[citation needed]
Total equity: Increase3988 Crores as on 31 Mar 2014
Number of employees: 10,226 (31 December 2016)
3,600 supervisory staff
6,626 non-supervisory staff
Parent: State Bank of India (90.00% shares)
Website: bank.sbi
State Bank of Mysore was a Public Sector bank in India, with headquarters at Bengaluru. It was one of the five associate banks of State Bank of India, all of which were consolidated with the State Bank of India with effect from 1 April 2017.
State Bank of Mysore was established in the year 1913 as The Bank of Mysore Ltd. under the patronage of Maharaja Krishna Raja Wadiyar IV, at the instance of the banking committee headed by the great Engineer-Statesman, Bharat Ratna Sir M.Visvesvaraya. During 1953, "Mysore Bank" was appointed as an agent of Reserve Bank of India to undertake Government business and treasury operations, and in March 1960, it became a subsidiary of the State Bank of India under the State Bank of India (subsidiary Banks) Act 1959. Now the bank is an Associate Bank under State Bank Group and the State Bank of India holds 92.33% of shares. The Bank's shares are listed in Bengaluru, Chennai, and Mumbai stock exchanges.
This bank had 976 branches and 10627 employees (June 2014) and the Bank has 772 branches (79%) in Karnataka State. The bank had regional offices in Bengaluru, Mysuru, Mangaluru, Mandya, Hassan, Shivamogga, Davangere, Ballari, Tumakuru, Kolar, Chennai, Coimbatore, Hyderabad, Mumbai and New Delhi. The bank's turnover in the year 2013-2014 was around US$19 Billion and Profit about US$46 Million.
43. State Bank of Patiala
Former type: Public
Traded as:
BSE: 501061
NSE: SBP
Industry: Banking, Insurance, Capital Markets and allied industries
Fate: Merged in State Bank of India in 2017
Founded: Patiala, 1917
Defunct: 2017
Headquarters: Head Office, The Mall, Patiala 147 002 India
Key people: Sh. Rajnish kumar (Chairman), Shri. S. A. Ramesh Rangan(Managing Director)
Products: Loans, Savings, Investment vehicles, etc.
Revenue: Increase ₹173,000 crore (US$24 billion) (2013)
Net income: Increase ₹11,358.06 crore (US$1.6 billion) (2013)
Total assets: Increase ₹116,709.10 crore (US$16 billion) (2013)
Total equity: Increase ₹203,417.50 crore (US$29 billion) (2013)
Number of employees: 13178
Parent: State Bank of India
Website: www.sbp.co.in
State Bank of Patiala, founded in 1917, was an associate bank of the State Bank Group. At the time of its merger, State Bank of Patiala had a network of 1445 service outlets, including 1314 branches, in all major cities of India, but most of the branches were located in the Indian states of Punjab, Haryana, Himachal Pradesh, Rajasthan, Jammu & Kashmir, Uttar Pradesh, Madhya Pradesh, Delhi, Gujarat and Maharashtra. It merged with State Bank of India on 1 April 2017.
44. State Bank of Saurashtra
Headquarter: Bhavnagar
The State Bank of Saurashtra was a government-owned bank in India. It was one of the seven Associate Banks of the State Bank of India, with which it merged on 13 August 2008. At the time of the merger, the bank had a network of 423 branches spread over 15 states and the Union Territory of Daman and Diu.
Prior to 1948, the region of Saurashtra, which at present forms a part of Gujarat State, comprised many small, medium and large princely states. Bhavnagar, Rajkot and Porbandar, which were among the larger states, and two smaller states, Palitana and Vadia, had established their own Darbar (meaning Palace) Banks, the oldest of which was Bhavnagar Darbar Bank, established in 1902. These banks mainly catered to the needs of the governments of their respective princely states, and acted as depositories for local savings. After the establishment of Saurashtra state in 1948, there was a parallel amalgamation of these banks. The Bhavnagar Darbar Bank became the State Bank of Saurashtra, under the Saurashtra State Bank (Amalgamation) Ordinance, 1950, and the four Darbar Banks - Rajkot State Bank, Porbandar State Bank, Palitana Darbar Bank and Vadia State Bank - were merged with it with effect from 1 July 1950 as its branches. At the close of 1950 the Bank had only 9 branches and deposits of Rs.7 crores.
In 1960, following the formation of a separate Gujarat State, the bank's main area of operation - Saurashtra - became a part of Gujarat. At the same time, the State Bank of India took over the State Bank of Saurashtra, along with the other major state-owned banks under the State Bank of India (Subsidiary Banks) Act, 1959. By this time, the number of branches had increased to 24, with aggregate deposits of Rs.13.39 crores, total advances of Rs.7.93 crores, and an investment portfolio of Rs.8.04 crores. The paid up capital and reserves were Rs.1.51 crores. The bank also had 866 employees.
The bank's first chairman was Jagubhai S. Parikh, and he served until 1960. He was the Deputy Chief Minister of Bhavnagar State Cabinet and was the first Finance Minister in the post-Independence Saurashtra Cabinet.
45. State Bank of Travancore
Formerly: Travancore Bank Ltd
Former type: Public
Traded as:
NSE: SBT
BSE: 532191
Industry: Banking, Capital Markets and allied industries
Fate: Merged with State Bank of India on 31 March 2017
Successor: State Bank of India
Founded: Trivandrum, 12 September 1945 (as Travancore Bank Ltd)
Founder: Chithira Thirunal Balarama Varma
Defunct: 31 March 2017
Headquarters: Poojappura, Thiruvananthapuram, India
Number of locations: 1,157 Branches, 12 Extension counters and 1,602 ATM Counters
Area served: Kerala
Services: Investment Banking, Consumer Banking, Commercial Banking, Retail Banking, Private Banking, Asset Management, Pensions, Mortgages.
Number of employees: 14,069 (2015)
Parent: State Bank of India
Website: statebankoftravancore.com
State Bank of Travancore (SBT) was a major Indian bank headquartered in Thiruvananthapuram, Kerala, and was a major associate of State Bank of India.
SBT was a subsidiary of the State Bank Group, but also had private share-holders. It was the premier bank of Kerala. Overall, as of 31 March 2015 SBT had a network of 1,157 branches and 1,602 ATMs, covering 18 states and three union territories.
On 15 February 2017, the Union Cabinet approved a proposal to merge SBT and four other associate banks with SBI. It finally merged with its parent bank on 31 March 2017.
46. Syndicate Bank
Former type: Public sector undertaking
Traded as:
BSE: 532276
NSE: SYNDIBANK
Industry: Banking, Financial services
Fate: Merged with Canara Bank
Successor: Canara Bank
Founded: 1925; 95 years ago (as Canara Industrial and Banking Syndicate Limited)
Founders: Upendra Ananth Pai, T. M. A. Pai, Vaman Kudva
Defunct: 1 April 2020
Headquarters: Manipal, Udupi, Karnataka
Areas served: India, United Kingdom, Oman
Key people: Ajay Vipin Nanavati (Chairman), Mrutyunjay Mahapatra (MD & CEO)
Products: Finance and insurance, Consumer Banking, Corporate Banking, Investment Banking, Investment Management, Private Equity, Mortgages, Credit Cards
Revenue: Decrease ₹6,913.09 crore (US$970 million)(2017)
Operating income: Increase ₹1,514 crore (US$210 million) (2017)
Net income: Increase ₹359 crore (US$50 million) (2017)
Total assets: Decrease ₹299,073.34 crore (US$42 billion) (2017)
Owner: Government of India
Number of employees: 35000 (March 2019)
Capital ratio: 12.03% (2017)
Website: www.syndicatebank.in
Syndicate Bank is one of the oldest and major commercial banks of India. It was founded by T M A Pai, Upendra Pai and Vaman Kudva. At the time of its establishment, the bank was known as Canara Industrial and Banking Syndicate Limited. The bank, along with 13 major commercial banks of India, was nationalised on 19 July 1969, by the Government of India. The Bank has headquarter in the university town of Manipal, India. On 30 August 2019, the Government of India announced the bank would be merged into Canara Bank.
47. United Bank of India
Former type: Public sector undertaking
Traded as:
NSE: UNITEDBNK
BSE: 533171
Industry: Banking, Financial services
Fate: Merged with Punjab National Bank
Predecessors: Comilla Banking Corporation, Bengal Central Bank, Comilla Union Bank, Hooghly Bank
Successor: Punjab National Bank
Founded: 1950; 70 years ago
Founder: Narendra Chandra Dutta
Defunct: 1 April 2020
Headquarters: Kolkata, West Bengal, India
Area served: India
Key people: Ashok Kumar Pradhan (MD & CEO)
Products: Finance and Insurance, Consumer Banking, Corporate Banking, Investment Banking, Investment Management, Private Equity, Mortgages
Revenue: Increase₹10,945.00 crore (US$1.5 billion) (2019)
Operating income: Increase ₹1,412.00 crore (US$200 million) (2019)
Net income: Decrease ₹-2,316.00 crore (US$−320 million) (2019)
Total assets: Increase ₹151,530.00 crore (US$21 billion) (2019)
Owner: Government of India
Number of employees: 15,191 (2018)
Capital ratio: 10.08% (2016)
Website: www.unitedbankofindia.com
United Bank of India (UBI) is an Indian government-owned bank headquartered in Kolkata, India. Presently the bank has a three-tier organisational setup consisting of its head office in Kolkata, 36 regional offices and 2054 branches spread all over India. However, its major presence is in Eastern India. The bank has three full-fledged overseas branches, one each at Kolkata, New Delhi and Mumbai. United Bank of India now aims to expand its international activities.
On 30 March 2009, the Indian government approved the restructuring of United Bank of India. The government proposed to invest 2.5 billion rupees in shares by 31 March and another 5.50 billion in the next fiscal year in Tier-I capital instruments. The move is part of the Indian government's program to improve the capital base of the state-owned banks. UBI gets SEBI approval for Rs 1,000 crore equity issue via QIP On 22 November 2017, United Bank of India (UBI) said it has received SEBI's approval for issue of equity shares worth Rs 1,000 crore by way of institutional placement.
On August 30, 2019, the Government of India announced the bank would be merged into Punjab National Bank of India. The merger is most likely come into effect at the beginning of the next fiscal year starting on April 2020.
48. United Industrial Bank
United Industrial Bank (UIB) was founded in Calcutta in 1940 by Jadunath Ray. In 1989 Allahabad Bank acquired it in a rescue.
In 1963 UIB acquired two banks. One was the Prabartak Bank, which the Prabartak Sangha movement had founded in Calcutta on 17 September 1929 as the Prabartak Bank and Insurance Company. At one point Prabartak Bank had a branch in Chittagong. The other was the Bank of Bankura, which had been established in Calcutta on 8 June 1936.
In 1964 United Industrial Bank acquired two more banks: Metropolitan Bank on 6 February, and Southern Bank on 24 August. Both Southern and Metropolitan Bank had been established in Calcutta, Southern on 10 October 1934, and Metropolitan on 16 October 1936.
In 1965 the Government of East Pakistan took over UIB's branch in East Pakistan.
At the time of its merger into Allahabad Bank, United Industrial had 145 branches.
49. United Western Bank
United Western Bank (UWB) was an Indian bank founded in 1936 that IDBI Bank acquired in 2006 in a rescue. The Reserve Bank of India placed UWB under a moratorium to protect the interest of public and depositors as growing losses eroded its capital.
Annasaheb Chirmule, a leader of the Swadeshi movement, founded Satara Swadeshi Commercial Bank in 1907, and some three decades later founded United Western Bank. The bank was incorporated in 1936, and commenced operations the next year. UWB's head office was in Satara, in Maharashtra State. It became a Scheduled Bank in 1951.
In 1956 UWB acquired Union Bank of Kolhapur, which had been incorporated on 5 July 1949.
In 1961 UWB acquired Satara Swadeshi Commercial Bank. Established on 20 August 1907, this was the first bank established at Satara.
At the time of the merger with IDBI, UWB had some 230 branches spread over 47 districts in 9 states, controlled by five Zonal Offices at Mumbai, Pune, Kolhapur, Jalgaon and Nagpur. By acquiring UWB, IDBI was able to increase its branch network from 195 to 425 branches.
50. Vijaya Bank
Former type: Public sector undertaking
Traded as:
BSE: 532401
NSE: VIJAYABANK
ISIN: INE705A01016
Industry: Banking, Financial services
Fate: Merged with Bank of Baroda
Successor: Bank of Baroda
Founded: 23 October 1931 (Mangalore, Madras Presidency, British India)
Founder: Attavar Balakrishna Shetty
Defunct: 1 April 2019
Headquarters: No. 41/2, M G Road, Bangalore, Karnataka, India
Number of locations: 2,136 branches, 2,155 ATMs (2018)
Area served: India
Services: Consumer banking, corporate banking, finance and insurance, investment banking, mortgage loans, private banking, wealth management
Revenue: Increase ₹14,190.45 crore (US$2.0 billion) (2018)
Operating income: Increase ₹3,098 crore (US$430 million) (2018)
Net income: Increase ₹727 crore (US$100 million) (2018)
Total assets: Increase₹177,632.04 crore (US$25 billion) (2018)
Total equity: Increase₹10,627.19 crore (US$1.5 billion) (2018)
Owner: Government of India (68.77%)
Number of employees: 16,079 (2018)
Capital ratio: 13.90% (2018)
Website: www.vijayabank.com
Vijaya Bank was a public sector bank with its corporate office in Bengaluru, Karnataka, India. It was one of the nationalised banks in India. The bank offered a wide range of financial products and services to customers through its various delivery channels. The bank had a network of 2031 branches (as of March 2017) throughout the country and over 4000 customer touch points including 2001 ATMs.
On 17 September 2018, the Government of India proposed the merger of Vijaya Bank and Dena Bank with the Bank of Baroda, pending approval from the boards of the three banks. The merger was approved by the Union Cabinet and the boards of the banks on 2 January 2019. Under the terms of the merger, Dena Bank and Vijaya Bank shareholders received 110 and 402 equity shares of the Bank of Baroda, respectively, of face value ₹2 for every 1,000 shares they held. The merger is effective from 1 April 2019.. Vijaya Bank that has merged with Bank of Baroda has built a museum that dedicates to its history.
References
Ref 1: https://en.wikipedia.org/wiki/Category:Defunct_banks_of_India
Ref 2: Bank of Hindostan
Industry Scenario (Ref 1)
The Aviation sector in India currently contributes $72 bn to GDP.
India has 464 airports and airstrips, of which 125 airports are owned by Airport Authority of India (AAI). These 125 AAI airports manage close to 78% of domestic passenger traffic and 22% of international passenger traffic.
Passenger traffic in India stood at 316.51 mn during April 2018 - Feb 2019. Out of which domestic passenger traffic stood at 252.92 mn while international traffic stood at 63.59 mn. The aircraft movement, passenger traffic and freight traffic increased by 4.9%, 4.5% and 3.1% respectively in February 2019 viz-a-viz February 2018, across all Indian airports taken together.
However, the share of international cargo traffic is much higher at 68.5% in comparison with 31.5% of domestic cargo traffic.
Maintenance, Repair & Overhaul (MRO) industry is expected to grow to $1.2 bn by 2020 from $950 mn currently.
NUMBER OF AIRLINES CLOSED EVERY FIVE YEARS BETWEEN 1991-2020 (Ref 2)
2016-2020: 6
2011-2015: 9
2006-2010: 10
2001-2005: 1 [Gujarat Airways operated from 1995 till 2001.]
1996-2000: 11
1991-1995: 5
NUMBER OF AIRLINES CLOSED EVERY TEN YEARS BETWEEN 1929-1990
1981-1990: 1 [Pushpaka Airlines operated from 1979 till June 1983.]
1971-1980: 3
1961-1970: 4
1951-1960: 6
1941-1950: 5
1931-1940: 3
Indian State Air Service was started in 1929.
A total of 64 airlines closed in the lifetime of Indian Aviation from 1929 till April 2020.
Case Study "Jet Airways" (Ref 3)
Jet Airways (India) Ltd. is a bankrupt and grounded Indian international airline based in Mumbai, India which, on 17 April 2019, ceased all flight operations with its last revenue flight operated by a Jet Konnect Boeing 737 arriving into Mumbai on 17 April 2019. From the third quarter of 2010 onward, Jet Airways was the largest commercial passenger airline in India with a passenger market share of 22.6%. With its competitors, mainly SpiceJet and IndiGo, lowering ticket fares in the following years, it was forced to follow suit, hurting overall performance resulting in steep financial losses. It dropped to second place behind IndiGo in October 2017, with a passenger market share of 17.8%. The downward slide continued and resulted in bankruptcy.
BANKRUPTCY AND CESSATION OF SERVICES
As of November 2018, Jet Airways has been reported to have a negative financial outlook due to increasing losses. In March 2019 it was reported that nearly a fourth of Jet Airways' aircraft were grounded due to unpaid lease rates. On 25 March 2019, Mr. Naresh Goyal and his wife Anitha Goyal stepped down from the board of directors.
On 5 April, Indian Oil Corporation stopped supplying fuel to the airline, citing non-payment of dues as the emergency funds have still not been credited. On April 17, the airline suspended all flight operations, due to lenders rejecting Rs 4 billion of emergency funding and its membership in the International Air Transport Association (IATA) was suspended. On 17 June, after getting no acceptable offers from Etihad Airways and Hinduja Group, lenders to Jet Airways decided to refer the company to National Company Law Tribunal (NCLT) for bankruptcy proceedings with debt of $1.2 billion.
As the group faces insolvency proceedings in Netherlands after failing to pay two debtors, NCLAT (National Company Law Appellate Tribunal) has allowed cross-border insolvency proceeding stating in an order that the "Dutch Trustee (Administrator) will work in cooperation with the 'Resolution Professional of India."
Case Study of latest entrant in the Scheduled Airlines: "Vistara" (Ref 4)
Tata SIA Airlines Limited, operating as Vistara, is an Indian full-service airline, based in Gurgaon, with its hub at Indira Gandhi International Airport. The carrier, a joint venture between Tata Sons and Singapore Airlines, commenced operations on 9 January 2015 with its inaugural flight between Delhi and Mumbai. The airline had carried more than two million passengers by June 2016 and as of May 2019, has a 4.7% share of the domestic carrier market, making it the 6th largest domestic airline. The airline serves 34 destinations with a fleet of Airbus A320, Boeing 787-9 and Boeing 737-800NG aircraft.
Case Study of latest entrant in the Regional Airlines: "TruStar" (Ref 5)
TruStar is an Indian low-cost airline promoted by Turbo Aviation Pvt Ltd based in Hyderabad. The airline plans to launch operations by the second quarter of 2020 with Dornier 228 aircraft.
In December 2019, Turbo Aviation announced that it had secured a £100-million ($133.64 million) investment from a Business Group based in the UK for the launch of commuter air services under the third place of the UDAN scheme. The airline plans to start operations with the routes they have secured under UDAN, with plans to connect passengers all over India and eventually overseas destinations in the future. The TruStar fleet will include 10 ATR-72s, 10 Airbus A320 and 4 Dornier 228 aircraft. In January 2019, under the third round of the Governments Regional Connectivity Scheme, also known as UDAN, TruStar had been awarded four routes in Uttar Pradesh, three routes across the States of Andhra Pradesh, Telangana, Tamil Nadu, Karnataka and Goa, two routes between Hyderabad and Prakasham Barrage of Andhra Pradesh and between Chennai and Ramnad in Tamil Nadu and also routes connecting Raipur, Rourkela, Jharsuguda and Jagadalpur with Bhubaneswar, Visakhapatnam and Hyderabad. In Telangana, Turbo Aviation has been given permission to start services from Hyderabad to Nagarjuna Sagar, which will be a sea plane route.
TruStar will be the first private airline to introduce the Dornier 228NG built in India at Kanpur by Hindustan Aeronautics Ltd. (HAL) into scheduled commercial services in India.
Functioning Airlines and Their Debts
1. Air India: INR 58,283 crore (Ref A)
2. Vistara: No debt. Posted a loss of INR 830.80 crore in 2019 (Ref C)
3. Air India Express: INR 23,286.50 crore (Ref A)
4. GoAir: INR 1,820 crore (INR 18.2 billion) (Ref D)
5. Indigo: INR 1,98,418 crore (Ref E)
6. SpiceJet: INR 974.57 (Ref F)
7. AirAsia: No debt. Posted a loss of INR 670.93 crore in 2019 (Ref C)
References
Ref 1: https://www.investindia.gov.in/sector/aviation
Ref 2: https://en.wikipedia.org/wiki/List_of_defunct_airlines_of_India
Ref 3: https://en.wikipedia.org/wiki/Jet_Airways
Ref 4: https://en.wikipedia.org/wiki/Vistara
Ref 5: https://en.wikipedia.org/wiki/TruStar
Ref 6: https://en.wikipedia.org/wiki/List_of_airlines_of_India
Ref A: Air India sale: Debt burden on buyer to be Rs 23,286 crore
Ref B: Vistara pares losses as sales rise 54% in FY18
Ref C: How Vistara, AirAsia India fared
Ref D: India Ratings Affirms Go Airlines (India) at 'IND A-'; Outlook Stable
Ref E: Indigo posts net loss of Rs 1,062 crore
Ref F: SpiceJet Ltd. Balance Sheet
