RBI Repo Rate Cut, Yes Bank Ravneet Gill, NSE SEBI Penalty, Mahindra Ford

Описание: Indian Economy

Indian shares rose on Friday ahead of a likely interest rate cut by the central bank in the backdrop of slowing economic growth, with beaten-down banking stocks leading gains.
The Reserve Bank of India (RBI) is expected to cut benchmark interest rates for the fifth time this year as benign inflation offers room for more easing and fiscal measures to revive growth seem largely inadequate.
The RBI is predicted to lower its key lending rate, or the repo rate, by 25 basis points (bps) to 5.15%, which would take cumulative cuts so far this year to 135 bps.
The broader NSE Nifty was up 0.37% at 11,355.75 by 0408 GMT, while the benchmark BSE Sensex was 0.46% higher at 38,280.73. Meanwhile, the rupee was stronger by 0.13% against the dollar at 70.8375.


Yes Bank
Yes Bank’s Senior Group President Rajat Monga, one of the key leaders during the tenure of former head Rana Kapoor, has resigned from his post, its CEO Ravneet Gill said.
In a conference call on October 3, Gill said Monga has decided to 'move on', without sharing any further details of his exit.
Moneycontrol has learnt that Monga quit the bank in September 2019. Monga, who earlier held the post of chief financial officer, was once considered for the top position and was set to succeed Kapoor. Gill took over in January after the bank failed to obtain a tenure extension for Kapoor from the banking regulator and the latter's subsequent unplanned departure.
Gill said Yes Bank’s operating metrics and performance is 'absolutely sound' and the lender has enough liquidity. He added that Yes Bank is looking to reshape its loan book and make it more granular to focus on the retail segment.
In a bid to allay investor fears after the share slide on October 1, Gill said: “We have enough liquidity, we are very stable and the share price movement of recent days should not become a proxy for how the bank gets perceived.”
The bank, in an exceptional announcement made before the release of its quarterly results, informed exchanges that its liquidity coverage ratio was more than 125 percent as on September 30, well above the regulatory requirement of 100 percent.
Yes Bank’s shares dived 23 percent on October 1, its lowest in a decade, driven by forced sale of 10 crore equity shares, which amounted to 3.92 percent of the bank’s equity share capital. Next day, the lender informed exchanges that a large stakeholder had invoked shares pledged with it and that the pledge stands extinguished.


NSE SEBI
The Securities and Exchange Board of India (SEBI) is not convinced with National Stock Exchange's (NSE) reply on last month’s technical glitch, which occurred thrice in a span of 10 days. The market regulator is planning to penalise the exchange after deliberating on the issue with Technical Advisory Committee (TAC).
On September 13, NSE NOW, a trading terminal for traders, was not working properly in Gujarat, Rajasthan and in some parts of Maharashtra, prompting SEBI to slap a penalty of around Rs 50 lakh.
Ten days later, an issue was reported in opening trade itself, with the technical glitch lasting for almost 45 minutes. The same occurred during market close as well. The exchange settled trades taking the weighted average price of the previous 20 minutes prior to the technical glitch and attributed the same to an issue with one of its vendors.
NSE declined to comment on the subject.
The September 23 glitch assumes importance as it was the immediate trading session after Finance Minister Nirmala Sitharaman announced tax incentives to corporates on September 21 and volumes were high.
In a reply to SEBI, NSE placed the blame on Cisco, which provides a network between traders and exchange. The regulator has discussed this issue with TAC, a technology specialised committee. As the regulator was not convinced with the arguments put forth by NSE, it is now planning to take up this matter with TAC and is exploring the option of penalising the exchange.

Mahindra Ford
Mahindra & Mahindra and Ford Motor Company have signed an agreement to create a Rs 1,925 crore joint venture (JV), with the Indian auto major having a 51 per cent stake in the new entity and the American auto giant owning the remaining 49 per cent.
The agreement will see Ford transferring its India operations to the JV, including its personnel and assembly plants in Chennai and Sanand. However, the carmaker will retain the Ford engine plant operations in Sanand as well as the Global Business Services unit, Ford Credit and Ford Smart Mobility.
The JV will develop, market and distribute Ford brand vehicles in India and sell the vehicles of both the brands in the high-growth emerging markets around the world. The new entity is expected to be operational by mid-2020, subject to regulatory approvals, and will be managed by Mahindra and its governance will be equally composed of representatives of both the carmakers.