RBI superseded the board of Reliance Capital
In a rather swift move, the RBI superseded the board of Reliance Capital due to defaults and governance issues. The company will be referred for insolvency proceedings as the next step. RBI has appointed Mr.Nageswara Rao, former ED of Bank of Maharashtra, as the administrator of Reliance Capital. RBI will also apply to NCLT to appoint an insolvency resolution professional. This is the third case where the RBI has intervened and superseded the boards of a systemically important NBFC; after DHFL and the SREI Group.
Net direct tax collections for FY22 till 23-Nov touched Rs.6.93 trillion
Net direct tax collections for FY22 till 23-Nov touched Rs.6.93 trillion. This is nearly 68% higher than the corresponding figure for FY21 and 27.3% higher than the corresponding figure for FY20. The gross direct tax collections for the above period, prior to refund adjustments, stood at Rs.8.15 trillion. That represents a growth of 48.1% on a yoy basis. Direct taxes mainly consist of personal income taxes and corporate taxes. Overall revenues should get a boost as GST collections too are sharply higher in fiscal year 2021-22.
LIC has got approval from RBI to increase its stake in Kotak Mahindra Bank
LIC has got approval from RBI to increase its stake in Kotak Mahindra Bank from the current level of 4.96% to 9.99%. Such approval is valid for a period of one year, during which period, the stake can be enhanced up to 9.99%. LIC needs RBI approval to own more than 5% in a bank. LIC currently has stakes in 24 scheduled commercial banks and owns 49.24% in IDBI Bank. Among the other predominant holdings in banks; LIC holds 8.8% in Canara Bank, 8.3% in PNB, 8.3% in SBI, 8.2% in Axis Bank and 7.6% in ICICI Bank.
Raymond zooms 13% to a new 52-week high; stock up 33% in one week
Textiles to retail to realty player, Raymond Ltd, has enjoyed a heady run in the last few days, scaling fresh highs of Rs.673. The stock rallied 33% in the last one week, which is more commendable as the Sensex actually trended lower in this period. The trigger was the scheme of arrangement of Raymond Apparel and Raymond Ltd. The lifestyle business will be hived off into a separate entity for better focus and sharper capital allocation. Most consumer facing businesses of Raymond are seeing strong traction post COVID.
Indigo Paints at life-time low, stock down 36%
Indigo Paints may have had a heady post-listing performance, but the stock has just touched a 52-week low of Rs.2,137. There are concerns over its operational performance. The stock has already lost 36% from its recent highs. However, the stock is still well above its IPO price of Rs.1,490. This is surprising as Indigo is the fastest growing company in the decorative paints segment. Like most paint companies, Indigo also suffered from negative effects of high crude prices and input inflation. Gross margins are still above 41.7%.