13 June | 14 June |
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Sensex down 20 points;
Infosys up
Mumbai- Wild swings in Mumbai stocks on Monday, reflected
brokers’ experiments with the daily rolling settlements set to become a reality from
July 2. Volumes were; however, low at around Rs 1,000 crore.
Infosys was the lone stock that led the swings and volatility, which saw the indexes
recover the days’ losses. But, late recovery following selective buying by foreign
institutional investors (FIIs) saw a bit of recovery.
The 30-stock BSE index which opened at 3,368.68, marginally higher from Friday’s
close of 3,372.94, breached the 3,300 level to the day’s low of 3,295.34 only, to
close higher at 3,353.11 — a swing of 73.34 points during the day, that ultimately
saw the Sensex down by just 19.83 from Friday’s close.
The National Stock Exchange saw the S&P CNX Nifty go down by 9.45 points to close the
day at 1078.3 points.
Unwinding their earlier positions, players resorted to heavy selling on the tech stocks
counter, marking the beginning of the week on the BSE. On the NSE, it was a day before the
settlement closes on Tuesday.
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Corporation Bank introduces sub-PLR lending at 10.5 percent
Mumbai-- Corporation Bank has become the first bank to introduce sub-prime lending
rates (sub-PLR) and has quietly launched its sub-PLR loans from the beginning of this
month priced at 10.50 per cent, 100 basis points (bps) below its PLR of 11.50 per cent for
tenures of up to 180 days. The bank will offer sub-PLR loans at 11 per cent for tenures
from 181 up to 270 days, 50 bps under its PLR.
The new sub-PLR rates are the first by any bank after the Reserve Bank of India (RBI)
allowed banks to do so in its last monetary and credit policy review for 2001-2002.
Banks were all along subscribing to the debt of top-rated corporates under their PLR, but
loans were not being offered at these rates.
Corporation Bank’s deputy general manager, CL Shenoy said that during the first
half-year, credit pick-up might be slow. "Normally, corporates avail of short-term
loans and to increase short-term credit, sub-PLR lending will be of great advantage to the
bank," he said.
Corporation Bank is to shortlist corporates eligible for sub-PLR lending depending on the
financial strength, equity and borrowings. This scheme has been introduced for select
corporates, which fall under the Corporation Bank’s Grade-1 category called
‘CB1’.
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