SBI Chairman on Moody's downgrade -Moody's downgrade not a downgrade per se -Downgrade of small segment of bank's debt -SBI's overall rating still a notch above sovereign rating -Financing cost to go up due to global environment not rating -Rating downgrade will not make material change -Govt has asked SBI to give report on reason for downgrade -Rights issue will restore SBI's rating -To get capital from govt by December 2011 or at March 2012 -Expect SBI's capital adequacy to be above 9% by March 2012 -Govt being major shareholder gives comfort to ratings -Holding company structure will not alter capital requirement -Have to learn to make efficient use of capital -SBI may not have been careful with using capital in the past -Likelihood of ballooning of NPA unlikely -Indian banks have never seen 12% NPAs in their history -Expect India's growth rate close to 7.8%
FDI in aviation -DIPP bats for easing FDI norms in aviation DIPP Secretary says -Allow foreign carriers to pick up stake in domestic airlines -Denying foreign capital can cause collapse of domestic airlines -Private airlines in dire need of funds -Even national carrier facing dearth of funds -DIPP secretary wrote to aviation secretary on September 20
IPO Corner - Swajas Air Charters IPO with a price range of Rs 84-90/sh close today -QIBs: Nil, NIIs: 0.01 times (x), RIIs: 0.04x, Overall: 0.41x
M&B SwitchGears IPO of 50 lakh shares with a price range of Rs 180-186/sh close today QIBs: Nil, NIIs: 0.77x, RIIs: 0.31x, Overall: 0.71x
Flexituff International IPO of 67.5 lakh shares with a price range of Rs 145-155/sh close today QIBs: 0.51x, NIIs: 1.44x, RIIs: 1.06x, Overall: 0.84x
Indo Thai Securities IPO of 40 lakh shares with a price range of Rs 70-84/sh close today QIBs: nil, NIIs: nil, RIIs: 0.49x, Overall: 0.17x
Other stocks and sectors that are in news today: -Ashok Leyland bags order for 723 vehicles for Tanzania worth USD 36 million -Prime Focus increases its stake by 5.4% in its subsidiary Prime Focus London -Kernex Microsystems receives work order of Rs 16.765 crore from Konkan railway corp -Stock Split: Carborundum from Rs 2/sh to Re 1/sh -Monsanto India: Bonus Issue 1:1 -Nalco signs MoU for plant in Indonesia for setting up half mtpa aluminium smelter and a 1250 MW Coal based power plant at an investment of USD 4.5 billion -NMDC on the verge of acquiring 50% stake in Australia Legacy Iron and is also eyeing 3 other foreign buys -ONGC aims to raise crude output by 15% in 2 years -F&O ban: Gitanjali Gems
