HDFCBANK

Updates for morning trade

By Vivek Kumar M

Feb 20 (Reuters) - India's benchmark indexes fell on Thursday, weighed down by losses in heavyweight HDFC Bank and car maker Maruti Suzuki India, while uncertainty over U.S. tariffs continued to dent risk sentiment.

The Nifty 50 .NSEI was down 0.16% at 22,896.30 points as of 11:01 a.m. IST, while the BSE Sensex .BSESN lost 0.26% to 75,742.38.

The broader midcap .NIFMDCP100 and smallcap .NIFSMCP100 stocks were up 0.5% and 0.8%, respectively.

The Nifty 50 is likely to remain range-bound until there is some certainty about U.S. tariffs, said U.R. Bhat, co-founder of Alphaniti Fintech.

HDFC Bank HDBK.NS, the heaviest stock on the benchmark indexes, slipped 2.1%, snapping a three-day winning streak. Shares of the private lender changed hands at a discount in multiple blocks on Thursday, data compiled by LSEG showed.

The sharp fall also led financials .NIFTYFIN 0.8% lower.

Maruti Suzuki India MRTI.NS fell 2% after its parent Suzuki Motor Corp 7269.T said it planned to launch only four battery electric vehicles in India by fiscal year 2030 instead of the six targetted earlier.

Meanwhile, U.S. President Donald Trump said on Tuesday he would introduce tariffs of 25% and above on autos, pharmaceuticals and semiconductors.

Among Asian countries, South Korea and Japan have the highest U.S. exposure to auto exports, while India has extensive pharma exposure, according to HSBC Global Research.

On Wednesday, the minutes of the U.S. Federal Reserve's January policy meeting showed that policymakers were concerned about the inflationary impact of Trump's tariff plans, signalling the likelihood of higher rates in the U.S.

Higher U.S. rates make emerging markets such as India unattractive for foreign investors, who have sold about $12.31 billion worth of Indian equities so far in 2025.

Among individual stocks, cigarette makers VST Industries VSTI.NS and Godfrey Phillips GDFR.NS fell 4% each, while ITC ITC.NS lost 1.2% on a report of a possible tax hike.

(Reporting by Vivek Kumar M and Bharath Rajeswaran in Bengaluru; Editing by Janane Venkatraman and Mrigank Dhaniwala)

(([email protected];))

The author is a Reuters Breakingviews columnist. The opinions expressed are her own.

By Shritama Bose

MUMBAI, Feb 19 (Reuters Breakingviews) - India’s dealmakers are celebrating their arrival on the global map. Last year, Kotak Mahindra Bank KTKM.NS not only topped LSEG's league table for initial public offerings in Asia by volume, edging out CITIC 0267.HK and JPMorgan JPM.N, but it also broke into the ranks of the top 10 underwriters of common stock deals globally by proceeds. Both are firsts for an Indian investment bank. But the strong showing by the $45 billion firm and its compatriots may prove hard to sustain.

A record $71 billion in equity fundraising powered the South Asian country's climb past China and Hong Kong to the spot of the world’s second-largest destination for share placements behind the U.S. last year, per Dealogic data. New-economy companies including Swiggy SWIG.NS and Ola Electric Mobility OLAE.NS going public were a lynchpin for strong fees. Meanwhile, punchy valuations prompted global businesses like Whirlpool WHR.N to cash out stakes in their local units and Hyundai Motor 005380.KS to take its Indian business public.

It spelt a bonanza for banks like Kotak and ICICI Bank ICBK.NS, both of which trade at 3 times forward book value, the top of their peer group. Their rise up the league tables buys them credibility beyond those rich valuations.

The mood is upbeat. At a Mumbai conference of investment banks in January, a singer belted out chest-thumping patriotic numbers in the presence of Madhabi Puri Buch, chief of Securities and Exchange Board of India, the capital markets regulator. Sundararaman Ramamurthy, the CEO of BSE BSEL.NS, one of the country’s two main stock exchanges, described the IPO boom as a moment of India’s “re-emergence” on the world stage.

The pipeline remains strong. Kotak has won a mandate, alongside Morgan Stanley MS.N, for what could be India's largest ever IPO, an up to $4.6 billion listing of Reliance Industries' RELI.NS telecommunications business, IFR reported in January, citing unnamed people. HDFC Bank’s HDBK.NS shadow lending unit has filed for a $1.44 billion float. Businesses ranging from the local unit of South Korean consumer appliances giant LG Electronics 066570.KS to Tiger Global-backed stockbroker Groww are preparing for billion-dollar listings too, per IFR. Kotak expects primary fundraising in India to rise 59% from last year’s level to $35 billion in 2025.

But the broader environment is less cheery. Foreign portfolio investors are dumping Indian shares and companies are reporting dismal earnings, pulling indexes off last year’s dizzying highs. The outlook for GDP growth is sombre. Beijing's push for higher-valued startups could rejuvenate dealmaking in China this year, and Hong Kong listings are rebounding from a 20-year low. The two centres notched up a total $132 billion in equity transactions in 2023 before markets slumped.

Kotak and its peers may find their dealmaking crown was easier to earn than to hold.

Follow @ShritamaBose on X

CONTEXT NEWS

Kotak Mahindra Bank was the 10th largest bookrunner globally for common stock deals by proceeds in 2024, with a 1.5% share of the market, according to LSEG data. It also topped the league table for Asian initial public offerings, including Chinese A-shares, facilitating listings that raised $2 billion during the year.

(Editing by Antony Currie and Aditya Srivastav)

((For previous columns by the author, Reuters customers can click on BOSE/
[email protected]))

MUMBAI, Feb 14 (Reuters) - India's HDB Financial Services has accepted bids worth 5 billion rupees ($57.6 million) for the reissue of 8.2378% April 2027 bonds, three bankers said on Friday.

The non-banking finance company will offer a yield of 7.90% and had invited bids from bankers and investors earlier in the day, they said.

HDB Financial Services did not immediately respond to a Reuters email seeking comment.

Here is the list of deals reported so far on February 14:

*Size includes base plus greenshoe for some issues

($1 = 86.8550 Indian rupees)

(Reporting by Dharamraj Dhutia
Editing by Eileen Soreng)

(([email protected]))

MUMBAI, Feb 13 (Reuters) - India's HDFC Life Insurance HDFL.NS has accepted bids worth 10 billion rupees ($115.13 million) for subordinated bonds maturing in 10 years, three bankers said on Thursday.

The insurer will pay an annual coupon of 8.10% on this issue and had invited bids from bankers and investors earlier in the day, they said.

The issue has a call option at en of five years.

The company did not reply to a Reuters email seeking comment.

Here is the list of deals reported so far on February 13:

*Size includes base plus greenshoe for some issues

($1 = 86.8580 Indian rupees)

(Reporting by Dharamraj Dhutia; Editing by Savio D'Souza)

(([email protected]))

MUMBAI, Feb 12 (Reuters) - India's HDFC Life Insurance HDFL.NS plans to raise 10 billion rupees ($115.6 million), including a greenshoe option of 1 billion rupees, selling subordinated bonds maturing in 10 years, three bankers said on Wednesday.

The insurer has invited bids from bankers and investors for the issue on Thursday, they said.

The company did not immediately reply to a Reuters email seeking comment.

Here is the list of deals reported so far on February 12

*Size includes base plus greenshoe for some issues

($1 = 86.5420 Indian rupees)

(Reporting by Dharamraj Dhutia; Editing by Sumana Nandy)

(([email protected]))

MUMBAI, Feb 10 (Reuters) - India's Credila Financial Services has accepted bids worth 5.50 billion rupees ($62.6 million) for bonds maturing in 10 years, three bankers said on Monday.

The company will pay an annual coupon of 9.00% on this issue and had invited bids from bankers and investors on Friday, they said.

The company did not reply to a Reuters email seeking comment.

Here is the list of deals reported so far on Feb. 10:

*Size includes base plus greenshoe for some issues

($1 = 87.9050 Indian rupees)

(Reporting by Dharamraj Dhutia; Editing by Sonia Cheema)

(([email protected]))

MUMBAI, Feb 6 (Reuters) - India's Credila Financial Services HDFR.NS plans to raise 7.40 billion rupees ($84.52 million), including a greenshoe option of 2.40 billion rupees, through the sale of bonds maturing in 10 years, three bankers said on Thursday.

The company has invited bids from bankers and investors for the issue on Friday, they said.

The company did not immediately reply to a Reuters email seeking comment.

Here is the list of deals reported so far on Feb. 6:

*Size includes base plus greenshoe for some issues

($1 = 87.5575 Indian rupees)

(Reporting by Dharamraj Dhutia; Editing by Savio D'Souza)

(([email protected]))

** Top Indian private lender HDFC Bank HDBK.NS on Wednesday reported Q3 profit in-line with analysts' estimates; forecast industry-matching loan growth in FY26

** At least three analysts raised PT post results, with median PT now at 1,972 rupees vs 1,950 rupees a month ago - LSEG

VISIBILITY OF GROWTH IN QUARTERS AHEAD

** Bernstein ("outperform"; PT 2,300 rupees) says stable asset quality major positive for HDBK given most of its peers witnessing deterioration; sees better earnings growth in quarters ahead

** Jefferies ("buy"; PT 2,120 rupees) says catalysts in play with higher conviction over pick up in loan growth

** PhillipCapital ("buy"; PT 1,900 rupees) expects HDBK to gain market share in unsecured loan segment considering stability in asset quality

** Yes Securities ("add"; PT 1,995 rupees) says asset quality performance creditable given tough environment

(Reporting by Sethuraman NR)

(([email protected]; (+91 9945291420); Reuters Messaging: [email protected]))

** Shares of HDFC Bank HDBK.NS turn positive to rise ~1% to 1,655.30 rupees

** Stock was down 0.7% before results

** Lender reports Q3 profit of 167.36 bln rupees ($1.94 billion), in-line with analysts' estimate, per data compiled by LSEG, as core lending income rose

** Net interest income - difference between interest earned and paid - climbed 7.7% Y/Y to 306.53 bln rupees

** Avg. rating of 40 analysts on HDBK is "buy"; median PT is 1,974 rupees - LSEG data

** HDBK gained ~4% in 2024

($1 = 86.3950 Indian rupees)

(Reporting by Kashish Tandon in Bengaluru)

(([email protected]))

• HDFC Bank Ltd HDB.N, HDB is expected to report resultson January 22 for the period ending September 30 2024

• 
  

• ​LSEG's mean analyst estimate for HDFC Bank Ltd is for earnings of 53 cents per share.

• The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 4 "strong buy" or "buy," no "hold" and no "sell" or "strong sell."

• The mean earnings estimate of analysts was unchanged in the last three months. ​

• Wall Street's median 12-month price target for HDFC Bank Ltd is $75.80​, above​ its last closing price of $58.40. ​​​

This summary was machine generated January 20 at 11:03 GMT. All figures in US dollars unless otherwise stated. (For questions concerning the data in this report, contact [email protected]. For any other questions or feedback, contact [email protected])

BENGALURU, Jan 15 (Reuters) - India's HDFC Life Insurance HDFL.NS reported a 14% rise in third-quarter profit on Wednesday, helped by growth in the sales of retail insurance policies.

The company, the first major Indian life insurer to report its quarterly results, said profit rose to 4.15 billion rupees ($48.05 million) for the three months ended Dec. 31, with net premium income growing 10%.

HDFC Life's claims paid during the Dec-quarter dropped 7% year-on-year.

Insurance penetration has historically been low in India, but rising financial awareness and accelerated demand for cover - especially for life and health insurance - after the COVID-19 pandemic has led to higher policy sales.

The company's value of new business (VNB), or expected profit from new policies - one of the key metrics for insurers - rose 14% year-on-year to 25.86 billion rupees in the nine months to Dec. 31.

New Business Premiums from retail policies rose 24% in the period, driven by a 15% rise in policies sold.

Annualised premium equivalent (APE) sales, which gives the annualised total value of all single-premium and recurring-premium policies, rose 20% to 102.93 billion rupees for the nine months.

ULIP GROWTH

Demand for market- or unit-linked insurance plans (ULIPs) -has been strong, especially in the first half of the fiscal year, driven by India's buoyant stock market.

ULIPs, which have lower profit margins, accounted for 37% of HDFC Life's overall product mix in terms of individual APE, up from 32% a year ago.

The rise in the share of ULIPs led to the VNB margin dropping to 25.1% for the nine months ended Dec. 31 from 26.5% a year earlier.

However, this was higher than the 24.6% the insurer reported at the end of September, as it pushed for sales for higher-margined policies.

($1 = 86.3730 Indian rupees)

(Reporting by Nishit Navin in Bengaluru; Editing by Janane Venkatraman)

(([email protected];))

** Indian private lender HDFC Bank HDBK.NS slides 1.7% to 1,720 rupees

** Stock is second top drag on Nifty 50 .NSEI, which is down 1.1%

** Co on Saturday said CASA (current account and savings account) deposits were 1.2% lower sequentially as of Dec. 31

** Gross assets under management grew 1.9% q/q

** Year-on-year, the two metrics grew 4.4% and 6.1%, respectively

** Nomura says HDBK's loan-to-deposit ratio (LDR) in Q3 was down 160 bps sequentially

** Soft CASA trends, decline in LDR and higher sequential growth in corporate segment all point towards downward pressure on net interest margin (NIM) in Q3 - brokerage

** Adds, outlook for loan growth over medium term should remain soft

** A combination of flat NIM and weak deposit growth in Q3 was not expected and drove shares lower - Bernstein

** Stock gained 3.7% in 2024 vs 9.4% rise in Nifty financial services index .NIFTYFIN

(Reporting by Manvi Pant in Bengaluru)

(([email protected]; +918447554364;))

MUMBAI, Jan 4 (Reuters) - India's HDFC Bank HDBK.NS saw quarter-on-quarter deposit growth outpace loan growth in the three months to December 31, the country's biggest private lender said on Saturday.

Deposits rose 4.2% to 24.53 trillion Indian rupees ($286.03 billion), slowing from 5.1% rise in July-September quarter, the Mumbai-based bank said.

Its low-cost current and savings account deposits rose 1.1%, it said.

Gross advances, or loans sanctioned and disbursed, rose 0.9% to 25.43 trillion rupees, slowing from 1.3% sequential growth in the previous quarter.

HDFC Bank has the most assets among all private banks in India. It merged with its parent HDFC in July 2023, adding a large pool of loans to its portfolio but a much smaller volume of deposits.

After the merger, the bank's loan-to-deposit ratio rose to around 110%, putting it under pressure to boost deposits or slow loan growth.

Over the past few months, it has offered retail loans for sale to reduce its loan-to-deposit ratio, a key metric for banks to assess their liquidity position.

In the December quarter, HDFC Bank securitised 216 billion rupees of loans "as a strategic initiative", it said.

Overall loan growth for Indian banks moderated for a fifth straight month in November, as lenders continued to rein in unsecured and personal loans after a central bank crackdown on "exuberant" lending.

Separately, HDFC Bank late on Friday said that the Reserve Bank of India had allowed it to acquire a stake of up to 9.5% in Kotak Mahindra Bank KTKM.NS, AU Small Finance Bank AUFI.NS and Capital Small Finance Bank CPIA.NS within a year from the approval date.

($1 = 85.7610 Indian rupees)

(Reporting by Siddhi Nayak; editing by Jason Neely)

(([email protected]; +91 22 6921 7848; Reuters Messaging: X: https://twitter.com/siddhiVnayak))

** HDFC Bank HDBK.NS down 1.8%; CLSA drops India's largest private lender from its local portfolio in 2025 strategy review

** CLSA says removal comes ahead of potential rate cuts

** CLSA also cuts "overweight" stance on banks, but stays "overweight" on commodities and insurance

** It adds Tata Motors TAMO.NS, Britannia BRIT.NS, NTPC NTPC.NS and Nestle India NEST.NS

** Among them, TAMO gains most with a 4% jump, while BRIT's 0.8% rise is the least

** CLSA says the added stocks are at least 20% off their 52-weeks highs, help shield from macro turbulence ahead of Trump returning to power in US

(Reporting by Nandan Mandayam in Bengaluru)

(([email protected]; Mobile: +91 9591011727;))

** HDFC Bank HDBK.NS climbs 1.7% to 1,801.6 rupees; top gainer on Nifty 50 .NSEI index, which is up 1.1%

** HDBK set to snap five-session losing run; dropped 5.4% last week

** Investors parking funds in large-caps like HDBK as they seek valuation comfort and safety after last week's drop - analysts

** Emkay Research retains "buy"; hikes TP by 5% to 2,100 rupees - 18.5% premium to last close

** Expects HDBK's profit margins to inch up in the long run, led by better portfolio mix and lower share of borrowings

** Says HDBK's asset quality may witness intermittent volatility but will outperform peers

** Sees stock as defensive play, offering healthy return on assets

** Adds plans of NBFC unit, HDB Financial's IPO will improve co's regulatory compliance

** Stock rated "buy" on avg; median TP is 1,950 rupees - LSEG

** YTD, HDBK up ~5%

(Reporting by Manvi Pant in Bengaluru)

(([email protected]; +918447554364;))

MUMBAI, Dec 19 (Reuters) - India's HDB Financial Services has accepted bids worth 5.50 billion rupees ($64.7 million) for the reissue of 7.9880% December 2026 bonds, three bankers said on Thursday.

The company will offer a yield of 7.84% and had invited bids from bankers and investors earlier in the day, they said.

HDB Financial Services did not immediately respond to a Reuters email seeking comment.

Here is the list of deals reported so far on Dec. 19:

*Size includes base plus greenshoe for some issues

($1 = 85.0470 Indian rupees)

(Reporting by Dharamraj Dhutia; Editing by Varun H K)

(([email protected]))

MUMBAI, Dec 18 (Reuters) - India's HDB Financial Services plans to raise 10 billion rupees ($117.8 million), including greenshoe option of 5 billion rupees, through the sale of bonds maturing in two years and 11 months, three bankers said on Wednesday.

The company has invited bids from bankers and investors on Thursday, they said.

HDB Financial Services did not immediately respond to a Reuters email seeking comment.

Here is the list of deals reported so far on Dec. 18:

*Size includes base plus greenshoe for some issues

($1 = 84.9170 Indian rupees)

(Reporting by Dharamraj Dhutia
Editing by Eileen Soreng)

(([email protected]))

** Shares of India's largest private lender HDFC Bank HDBK.NS fall 1.2% to 1,843 rupees

** Stock among top losers on Nifty private bank index .NIFPVTBNK, which is down 0.92%

** HDBK said on Monday it got administrative warning from markets regulator SEBI over non-compliance with certain provisions

** It previously received a warning letter from SEBI on Thursday over observations made during the course of its periodic inspection

** Avg rating of 39 analysts is a "buy"; median PT is 1,950 rupees - LSEG data

** Stock up 8% YTD vs a 3.2% gain in private bank index

(Reporting by Ashna Teresa Britto in Bengaluru)

(([email protected]))

Dec 16 (Reuters) - HDFC Bank Ltd HDBK.NS:

• HDFC BANK LTD - SEBI ISSUES ADMINISTRATIVE WARNING LETTER TO HDFC BANK

• HDFC BANK - GETS COPY OF SEBI WARNING LETTER DATED DEC 10

Source text: ID:nBSE7SXTnM

Further company coverage: HDBK.NS

(([email protected];))

Dec 12 (Reuters) - HDFC Bank Ltd HDBK.NS:

• HDFC BANK LTD - SEBI ISSUES ADMINISTRATIVE WARNING LETTER TO HDFC BANK

• HDFC BANK LTD - SEBI ALLEGES NON-COMPLIANCES WITH MULTIPLE REGULATIONS BY HDFC BANK

• HDFC BANK LTD - NO FINANCIAL OR OPERATIONAL IMPACT ON HDFC BANK

Source text: ID:nBSEw7Rvm

Further company coverage: HDBK.NS

(([email protected];))

MUMBAI, Dec 11 (Reuters) - India's HDFC Credila Financial Services plans to raise 5 billion Indian rupees ($58.93 million), including a greenshoe option of 3.50 billion rupees, through bonds maturing in five years, three bankers said on Wednesday.

The company has invited bids from bankers and investors for the issue on Thursday, they said.

The company did not immediately reply to a Reuters email seeking comment.

Here is the list of deals reported so far on Dec. 11:

*Size includes base plus greenshoe for some issues

($1 = 84.8420 Indian rupees)

(Reporting by Dharamraj Dhutia; Editing by Janane Venkatraman)

(([email protected]))

Dec 9 (Reuters) - HDFC Bank Ltd HDBK.NS:

• ZAGGLE PREPAID OCEAN SERVICES - ENTERED INTO AGREEMENT WITH HDFC BANK

• ZAGGLE PREPAID OCEAN SERVICES - TO OFFER HDFC CREDIT CARDS BUNDLED WITH ZAGGLE SOFTWARE

Source text: ID:nnAZN2RZ9BZ

Further company coverage: HDBK.NS

(([email protected];))

Updated for mid-session trading

By Bharath Rajeswaran

Dec 3 (Reuters) - Indian shares rose on Tuesday led by HDFC Bank and Reliance Industries, the two heaviest-weighted stocks on the Nifty 50, with analysts attributing the rise to cheaper valuations after the benchmarks slipped into correction territory recently.

The NSE Nifty 50 .NSEI rose 0.64% to 24,431.55 points, as of 11:20 a.m. IST, while the BSE Sensex .BSESN gained 0.69% to 80,806.5.

The Nifty 50 is now 7% below its all-time high levels hit in late September. Both benchmarks fell into correction territory last month.

"The excess (valuations) across large-, mid- and smallcaps (were) corrected and the froth now seems to be out, prompting buying interest among investors," said Devang Mehta, director of equity advisory at Spark PWM.

High-weightage financials .NIFTYFIN gained 1%, led by a 1.7% rise in HDFC Bank HDBK.NS.

Heavyweight Reliance Industries RELI.NS, which has gained 3% in the last two sessions, added 1% on the day.

Public sector banks .NIFTYPSU climbed 2.7%, with State Bank of India SBI.NS, Punjab National Bank PNBK.NS rising 2.3% each and Bank of Baroda BOB.NS gaining 3%.

The more domestically focused smallcaps .NIFSMCP100 and midcaps .NIFMDCP100 added about 0.7% each.

There is a bit more safety in largecaps, seen through the recent rise in heavyweights, Mehta said, adding that selected smallcaps and midcaps, especially those with positive earnings outlook, also offer hopes of better returns.

Eleven of the 13 sectoral indexes logged gains.

Consumer index .NIFTYFMCG shed 0.7% after media reports said the government plans to hike the goods and services tax (GST) on products such as aerated beverages, cigarettes and other tobacco-related items to 35% from the current 28%.

Cigarette maker ITC ITC.NS slid 1.6%, while Pepsi bottler Varun Beverages VARB.NS dropped 3%.

Adani Ports APSE.NS rose 4% on the day, after Bernstein reiterated "outperform". The stock trades cheaper than its peers JSW Infra and Container Corp, the brokerage said.

(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Sumana Nandy and Janane Venkatraman)

(([email protected]; +91 9769003463;))

By Dharamraj Dhutia

MUMBAI, Dec 2 (Reuters) - Indian government bond yields are "attractive," and macroeconomic indicators such as slowing growth and demand-supply dynamics are bolstering the case for longer-duration fixed income investments, an executive at India's third-largest asset manager said.

"...Given the macroeconomic factors are favourably placed, the current level of yields present an opportunity to increase duration on risk-reward adjusted basis," said Shobhit Mehrotra, head of fixed income at HDFC Asset Management.

The fund house manages assets worth around 7.6 trillion rupees ($89.8 billion) as of end-September.

India's benchmark 10-year bond yield IN10YT=RR has eased seven basis points to 6.73% since data on Friday showed economic growth slowed much more than expected in the third quarter.

Optimism over Indian bonds also emanates from comfortable external sector conditions, and likely abating of food inflation pressure post arrival of kharif (summer-sown) crops, Mehrotra said.

"Our focus remains more medium-term, and we believe that Indian yields are likely to trend lower over that horizon."

India's headline retail inflation jumped to 6.21% in October, which led to a pushback in rate easing expectations, but weaker growth has re-ignited chances of rate cuts soon.

The overnight index swap rates are pricing in 50 basis points of rate cuts by the Reserve Bank of India till April.

Mehrotra said he expects headline inflation to move closer to the RBI's medium-term target of 4% by the next financial year, helped by a favourable base effect, arrival of new kharif crops, moderating domestic growth, fading pent-up demand and benign core inflation momentum.

The RBI's monetary policy committee is set to announce its decision on Friday, with rising calls for easing in rates or liquidity, or even both.

For the time being, Mehrotra expects the central bank to adopt a wait-and-watch approach and "perhaps consider rate cuts sometime starting in February or April."

($1 = 84.6700 Indian rupees)

(Reporting by Dharamraj Dhutia; Editing by Varun H K)

(([email protected];))

Updates for market open

Nov 28 (Reuters) - Indian shares inched higher on Thursday, led by Adani Group stocks and heavyweight HDFC Bank HDBK.NS, while IT firms slipped amid resurgent uncertainties over the trajectory of U.S. interest rate cuts.

The NSE Nifty 50 .NSEI was up 0.09% at 24,296.8 points as of 9:54 a.m. IST, while the BSE Sensex .BSESN rose 0.06% to 80,281.9. Meanwhile, the broader, more domestically focused small- .NIFSMCP100 and mid-caps .NIFMDCP100 rose 1% and 0.8%, respectively.

The Adani Group's flagship firm Adani Enterprises ADEL.NS jumped 3.3%. Adani Green Energy ADNA.NS and Adani Energy Solutions ADAI.NS jumped about 10% each, extending a rebound from a selloff triggered by the U.S. indictment of the group's founder last week. The Group has denied the allegations.

HDFC Bank, the stock with the heaviest weightage on the Nifty 50, gained 1.2%.

Overnight, U.S. inflation data signalled that the rate cut trajectory is going to be slower than expected, dragging IT stocks .NIFTYIT lower. A slowdown in U.S. rate cuts directly impacts client spending and affects sectors Indian IT firms.

($1 = 84.4100 Indian rupees)

(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Sumana Nandy and Sonia Cheema)

(([email protected]; +91 9769003463;))

Nov 26 (Reuters) - HDFC Bank Ltd HDBK.NS:

• FINED 7.2 MILLION RUPEES BY TAMIL NADU TAX AUTHORITY

Source text: ID:nBSEbG3cYF

Further company coverage: HDBK.NS

(([email protected];))

The authors are Reuters Breakingviews columnists. The opinions expressed are their own. Updates throughout with new financial numbers released by the company.

By Shritama Bose and Una Galani

MUMBAI, Nov 25 (Reuters Breakingviews) - Gautam Adani has put India on the spot. The country’s government may need to nudge local lenders to support the growth of the billionaire’s infrastructure conglomerate after the United States filed criminal charges against him. Such a decision, though, would come at a big cost.

One of the biggest borrowers in the world’s fifth-largest economy faces sweeping risks after U.S. prosecutors accused the tycoon of bribing Indian government officials through Adani Green Energy ADNA.NS, one of his 11 Mumbai-listed companies including the flagship, Adani Enterprises. Adani Group called the charges “baseless” and denied them.

Containing the financial fallout will be hard because the tycoon tightly controls all his businesses. For now, his group has a strong cushion. Though total borrowings doubled to $31 billion in the past five years, its cash balance grew faster and was equivalent to nearly 21% of gross debt as of September. That gives the group capacity to pay interest and maturing debt for about 28 months, by its own calculations.

Overseas lenders are likely to be the most cautious. Global capital markets, which supplied 23% of Adani’s existing debt, are probably closed for now. Last week, Adani Green Energy cancelled a $600 million offshore bond sale.

Foreign banks, among them Barclays BARC.L, Emirates NBD ENBD.DU and Mizuho 8411.T, account for a further 27% of borrowings. While most loans are secured by cash-generating assets, lenders may lower funding limits, try to recall loans, or decide not to renew borrowing facilities or U.S. hedging contracts.

That puts the focus on Indian institutions. Domestic banks are on the hook for 42% of the group’s debt and finance most of its working capital. They will probably await a signal from New Delhi before making decisions on how to proceed. Prime Minister Narendra Modi has not yet commented on the saga.

India's regulator requires that banks limit their exposure to any single business group to 25% of their eligible Tier 1 capital. This stood at a collective $258 billion in September, according to rating agency ICRA. If the industry utilised the full limit, it could lend up to $65 billion – more than double the conglomerate’s total borrowings.

However, private lenders like HDFC Bank HDBK.NS and ICICI Bank ICBK.NS may be less ready to chip in than government-controlled institutions like State Bank of India SBI.NS. And most banks prefer to stay well below the cap on single exposures.

Whatever happens, Adani will almost certainly face higher borrowing costs because agencies are lowering some outlooks in response to the indictment. But that looks manageable too: increasing its financing costs by two percentage points to around 10% would require an additional $612 million outlay each year. The group builds a much higher buffer into its financial planning.

Adani also has capacity to fund its own operations. It generated EBITDA – a proxy for cash flow – of about $10 billion in the year to the end of March. It needs to spend that much every year to hit its target of investing $100 billion over the next decade. That implies it could probably afford to maintain its investment in airports, logistics, and the energy transition – including a 40-gigawatt renewable energy plant in Gujarat, billed as the world’s largest. If needed, the group could reduce the pace of growth in other areas such as commercial mining or materials.

One danger is that the indictment prompts other state governments in India or overseas to scrutinise their contracts with the group. There is no broader sign of that yet, though a U.S. agency that agreed to lend more than $500 million to an Adani Group-backed port development in Sri Lanka said it’s still conducting due diligence on the project. Some Indian bankers hope the incoming U.S. government of President-elect Donald Trump will refrain from seeking to extradite Gautam Adani. Alternatively, the tycoon could agree a settlement that would eventually allow his empire back into global markets.

Adani and the Indian government may ultimately prefer the country’s core infrastructure to be funded domestically. But India’s financial markets are probably not deep enough to make that comfortable. Besides, the country spent years cleaning up after a bad debt crisis at its banks, and officials have since tried to reduce how much they meddle in lending decisions. If they now order banks to up their exposure to a group waving a large red flag, it will represent a backward step.

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CONTEXT NEWS

U.S. bribery charges against Indian billionaire Gautam Adani are linked to one contract of Adani Green Energy comprising some 10% of its business, and none of the conglomerate's other companies are accused of wrongdoing, the group's chief financial officer, Jugeshinder Singh, said on Nov. 23. The company will respond in the fullness of time after reviewing the matter as presented in the legal filings, he added.

U.S. prosecutors on Nov. 20 charged the Adani Group’s patriarch with committing securities and wire fraud between 2020 and 2024. They allege that he and seven other defendants, including his nephew Sagar Adani, agreed to pay some $265 million in bribes to Indian government officials to win solar-power contracts that were expected to generate around $2 billion in profit over 20 years for Adani Green Energy. The next day, Adani Group called the charges against the directors of its renewable energy unit “baseless” and denied them.

(Editing by Peter Thal Larsen and Ujjaini Dutta)

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** Indian shares rebound from a recent sell-off, in which the benchmark indexes and broader small- and mid-caps slipped into correction

** The NSE Nifty 50 .NSEI and BSE Sensex .BSESN rise about 1.3% each, with all 13 major sectors logging gains

** If gains hold, Nifty will snap a seven-session losing streak, its longest since Feb 28, 2023

** Forty-two of Nifty 50 stocks advance; heaviest stock HDFC Bank HDBK.NS gains 2.25%, powering markets higher

** Auto .NIFTYAUTO gains 2.2%, led by a 3.6% rise in Mahindra and Mahindra MAHM.NS, which is also the top Nifty 50 gainer

** CLSA reiterates "outperform" on MAHM, citing gains from transition to mid- and premium sports utility vehicles (SUVs) from low-end SUVs

** The broader, more domestically-focussed small- .NIFSMCP100 and mid-caps .NIFMDCP100 rise about 2% each

** "We expect a short-term bounce back in markets as Nifty is at a crucial support, but a significant rebound depends on reversal of foreign selling or an improvement in earnings outlook," says Sonam Srivastava, founder and fund manager at Wright Research

** Nifty slipped below 200-day moving average (DMA)in the last two sessions before rising above the support level on the day

(Reporting by Bharath Rajeswaran in Bengaluru)

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MUMBAI, Nov 13 (Reuters) - India's central bank on Wednesday said the State Bank of India SBI.NS, HDFC Bank HDBK.NS and ICICI Bank ICBK.NS remain the three domestic systemically important banks (D-SIBs) and that the first two would need to maintain an additional capital buffer starting April 2025.

Systemically important banks are financial institutions whose failure or distress could trigger a broader financial crisis and threaten the stability of the entire financial system. These institutions are also perceived as being "too big to fail".

The Reserve Bank of India had issued a framework for dealing with D-SIBs in July 2014, under which it named the designated banks and placed them in appropriate "buckets" depending on their systemic importance.

A higher bucket requires higher the bank to maintain a larger capital buffer, along with other financial metrics.

SBI and ICICI Bank were classified as D-SIBs in 2015 and 2016. While HDFC Bank was added to the list in 2017, it was moved to a higher bucket in December 2023 following its merger with parent HDFC.

The RBI said that SBI and HDFC Bank have to set a higher additional capital buffer and capital surcharge from the next financial year which begins on April 1, 2025.

SBI's additional capital requirement will increase by 20 basis points to 0.80% in proportion to its risk-weighted assets, from 0.60% currently.

Meanwhile, HDFC Bank will be required to maintain a capital surcharge of 0.40% in proportion to its risk-weighted assets, up from 0.20% currently.

(Reporting by Siddhi Nayak; Editing by Varun H K)

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Adds chart, no changes to text

By Bharath Rajeswaran

Nov 7 (Reuters) - MSCI added five Indian companies to its Global Standard Index late on Wednesday, a move that brokerage Nuvama said would lift the country's weightage on the index to 20%, further narrowing the gap with China.

MSCI said there would be 156 Indian stocks in the index, but that is only one-fourth of China's 598, signalling scope for further inclusion of Indian stocks on the index.

The changes will take place after the markets close on Nov. 25, MSCI said.

The inclusion of the stocks will lift India's weightage in the index to a record 19.8% from 19.3% earlier, narrowing the gap with China, which has slipped to 26.8% from 27%, Nuvama Alternative and Quantitative Research estimated.

It will also likely attract $2.5 billion in passive inflows into India's equity markets, Nuvama said.

China has the highest weightage in the MSCI Global Standard index, while India has been in second place since the end of 2021.

Air conditioner maker Voltas VOLT.NS, realty developer Oberoi Realty OEBO.NS, stock exchange operator BSE BSEL.NS, Kalyan Jewellers KALN.NS, and drug maker Alkem Laboratories ALKE.NS are the latest additions to the index.

Indian markets saw inflows of about $3 billion into equities after the previous MSCI rebalancing in August when seven stocks were added.

"We remain extremely bullish on India, especially with active participation from mutual funds and high net worth individuals (HNIs)/retail investors, and anticipate many more inclusions in the emerging markets index," said Abhilash Pagaria, head of Nuvama research.

Seven existing stocks, including top private lender HDFC Bank HDBK.NS and Tata Power TTPW.NS, saw an increase in their weightage.

HDFC Bank is now the highest-weighted Indian stock in the MSCI indices at 7.08%, surpassing Reliance Industries' RELI.NS 6.08%.

No Indian companies have been removed from the MSCI Global Standard Index so far in November.

Additionally, around 13 firms, including Eureka Forbes EURK.NS, Indegene INEG.NS, and PC Jeweller PCJE.NS, were added to the MSCI Small Cap Index, bringing the total number of small-cap stocks to 525.

(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Abinaya Vijayaraghavan)

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