Piramal Enterprises leads gainers in 'A' group

Mahindra & Mahindra Financial Services, Bank of India, Madras Cements and Bajaj Auto are among the other gainers.

Piramal Enterprises spurted 11.05% to Rs 623.60 and topped the gainers in the BSE's 'A' group. The stock hit a record high of Rs 645 in intraday trade today, 30 August 2013. The stock rose on volume of 53,278 shares, higher than average daily volume of 5,792 shares in the past two weeks.

Mahindra & Mahindra Financial Services galloped 7.83% to Rs 252.70 and was second biggest gainer in 'A' group. The stock was added in the MSCI India index effective from the close of today, 30 August 2013.

Bank of India jumped 6.95% to Rs 142.25 and was third biggest gainer in 'A' group. The Union Finance Minister Shri P. Chidambaram said on Thursday that banks must ensure flow of credit to every sector of industry. He said that bankers have been told to be sympathetic and have humane approach towards genuine defaulters. He said that this is time for hand holding of borrowers who are facing difficulties, especially industry. He said that genuine defaulters and willful defaulters need to be dealt with separately. We have to be strict with willful defaulters, he added. The Finance Minister was speaking at the Third Parliamentary Consultative Committee Meeting of his Ministry on Thursday. The subject matter for the discussion of the meeting was NPAs in Public Sector Banks (PSBs) and measures taken to contain them.

The Finance Minister said that banks need capitalization to meet their enhanced lendings, which is increasing every year. He said that this year the government has made provisions of Rs 14000 crore for bank recapitalization. He said that normally banks make their own arrangements to meet their capital requirements both through their own resources such as their profit etc. and the market. The Finance Minister said that all our Public Sector Banks (PSBs) are following Basel III norms and, in fact, our capital and provisioning requirements are stricter than Basel III norms.

Earlier, participating in the discussion, members of the Consultative Committee gave various suggestions with regard to recovery from willful/genuine defaulters and how to deal with different NPA cases. Some members raised the issue of softer approach by the bankers towards genuine defaulters such as farmers and promoters of MSMEs among others as they are vulnerable to external factors which are beyond their control. Some members raised the issue of misuse of CDR, down grading of banks, if any, by rating agencies due to NPAs or other factors, overall analysis of NPAs to find out who are genuine or willful defaulters and to take personal guarantees from industrialists if they have assets etc among others.

Madras Cements surged 6.27% to Rs 152.65 and was fourth biggest gainer in 'A' group.

Bajaj Auto rose 5.62% to Rs 1,839.50 and was fifth biggest gainer in 'A' group. The stock rose on expectations of pick up in sales during the upcoming festive season and on hopes good rains this year will boost rural sales.

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