Analyst's take on Q1 GDP
"Q1 GDP at 5 percent is below the 5.7 percent poll consensus estimates. It is the lowest quarterly GDP we have witnessed in the past five years and key reasons for the miss are a decline in manufacturing, rural distress, liquidity tightening, and consumption slowdown. We expect the fiscal, monetary and regulatory measures announced recently to improve the situation," S Ranganathan, Head of Research at LKP Securities said.
Ireland & Slovenia drug bodies cleared Divis Labs' Vishakhapatnam unit.
Aurobindo Pharma’s Netherlands subsidiary formed JV with 2 companies in China. Netherlands arm will hold 57% stake in China Joint Venture.
"Amalgamation of public sector banks would create larger and stronger entities. Also, the market linked compensation to key executives will enable the merged entities to strengthen their leadership team. These are strategically positive steps though the amalgamation activity could impact limit near term operations and credit growth," Gaurav Dua, Senior VP, Head – Capital Market Strategy, Sharekhan by BNP Paribas said.
Impact of Merger on PSU Banks
"By consolidating 10 major banks into 4 and bringing the total count of PSB to 12 will help in credit up tick and will help revive the economy. Diligence in selection of entities, regional inclusion, usage of technological platform, NPA’s and allocation of funds to these entities will make sure of availability of liquidity in the system. Moreover, it will help these merged entities to aspire to be competitive on account of their All India presence besides cutting down on duplication of overheads," Rajiv Singh, CEO, Karvy Stock Broking said.
"Recruitment of chief risk officers and linking their performance will bridge the discount in valuations between private and public banks. Encouragement of individual development plan will ensure smooth transition and succession plans for these merged entities which will also ensure proper functioning of these banks. She has commented that after Asset Quality review framework from RBI loan recoveries have improved over last one year which will help bring down NPAs," he added.
India's Q1FY20 GDP growth stands at 5 percent, against 5.80 percent in March quarter 2019 and 8 percent in June quarter 2018.
HDFC sold 6.74 crore shares of Gruh Finance at Rs 247.15 per share and will not sell any further stake in Gruh Finance.