CLSA downgrades PSU banks on asset quality concern

The consequence of an economic slowdown has begun to show on banks’ asset quality.

Indian lenders are now expected to record higher non-performing assets though the trend will differ from bank to bank depending on certain factors like exposure to high risk sectors, restructured loans and aggression in growth in past few years, says international brokerage CLSA.

This is what the CLSA report said:

“Banks with high restructured loans and those with higher exposures to sectors like infrastructure, real estate and textiles could report sharper rise in NPL. Private banks are better placed than PSUs due to lower exposure to risky sectors like SME, textile, infrastructure and higher share of retail- led by mortgage. Moreover, their superior profitability along with higher NPL coverage will cushion earnings against the risk of rise in credit costs.”

This clearly gives an edge to private sector banks over their peers in public sector space. The brokerage downgraded some frontline PSU banks including Punjab National Bank , Bank of India ,Canara Bank , Corporation Bank , Oriental Bank of Commerce , and Union Bank of India , to "underperform". India’s largest lender the State Bank of India was already downgraded to underperform due to higher share of stressed asset portfolio and premium valuations.

Team Anna calls for 'Dilli Chalo' march from Saturday

Team Anna Hazare today gave a call to the people to peacefully march towards the national capital from Saturday if the government fails to resolve the Lokpal issue.

Arvind Kejriwal, core member of Hazare's team, also appealed to people here to hold a protest outside the 7, Race Course Road official residence of the Prime Minister demanding tabling of Jan Lokpal Bill in Parliament.

He asked the Prime Minister why he is not doing anything about the Jan Lokpal Bill.

"By Saturday, if there is no solution, we will appeal to the people for 'Dilli chalo'. People should come in large numbers and sit here till the government finds solution to the issue, if it doesn't introduce the 'Jan Lokpal bill' in Parliament they should not leave till it is resolved," he told reporters after a meeting of the team's core committee.

The meeting also discussed last night's talks between civil society and government representatives that ended in a deadlock.

Team Anna reaffirmed that they are ready for talks with the government, but insisted that government should give in writing its intentions before the next rounds of talks.

"The government should give in writing their intentions and what they want. We will deliberate on their written statement and respond to it once consensus is reached among us. Then we will go for talks," he said.

The RTI activist said Team Anna will talk to political parties to seek consensus on the issue.

"We are going to start talking to other political parties today. We are seeking their time as we have to come to know through newspapers that they may have reservations with some points. We will meet them to resolve these doubts and issues," he said.

The civil rights activist also called for peaceful protest outside the Prime Minister's residence later in the evening today.

Asian shares cheered by Wall Street

Asian shares rose on Thursday, cheered by gains on Wall Street, but Apple skidded on the shock resignation of Silicon Valley legend Steve Jobs and gold continued to struggle after running into a wall of profit-taking.

Shares of Apple tumbled as much as 7% in after-hours trade in a knee-jerk reaction to news that Jobs resigned as chief executive of the world's most valuable technology firm.

"Apple will need to show that without Jobs it can come up with visionary products," said Hendi Susanto, analyst at Gabelli & Co.

US stock index futures were off 0.1% while the tech-heavy Nasdaq futures fell about 1.0%.

Apple CEO Steve Jobs resigns, Cook to take over

Steve Jobs resigned as Apple Inc Chief Executive on Wednesday, without specifying a reason.

Tim Cook, the company's Chief Operating Officer, who has been standing in for Jobs during his medical leave, has been named the new CEO. Jobs becomes Chairman.

Apple's shares fell 5% in after-hours trading.

The following are instant reactions from analysts and investors.

MICHAEL YOSHIKAMI, CEO, YCMNET ADVISORS

"They obviously have been planning this for some time, given the extended nature of Steve Jobs' illness. Tim Cook has proved himself worthy of the role."

"Unless we hear something more about his health situation, it does seem as if he is going to continue to at least have some input into the company through his chairman role. And I think if it was even more serious, I would be surprised if he had actually recommended he go into the chairman role. So I think probably this is more a reflection that he just simply can't do it on a day-to-day basis."

JASON HIRSCHHORN, FORMER CHIEF DIGITAL OFFICER, MTV AND CO-PRESIDENT, MYSPACE

"I have to imagine that it's related to his health. I

cannot imagine another explanation."

"If you read his note, this is clearly not a surprise to the board, they've discussed succession."

"Steve Jobs is my hero, a legend in global industry and a true Willy Wonka-esque deliverer of joy and happiness through product and experiences."

"But you need to believe that he didn't do it all on his own and that Tim Cook is the real deal. Apple has a very, very deep bench of talent and the product roadmap is stellar and their ability to execute and supply it is beyond compare."

ANONYMOUS SILICON VALLEY CEO

"It's really sad. No one is looking at this as a business thing, but as a human thing. No one thinks that Steve is just stepping aside because he just doesn't want to be CEO of Apple anymore. It feels like another shoe is going to drop."

No deal, Govt acts tough with Team Anna

The meeting between Finance Minister Pranab Mukherjee and Anna Hazare's associates - Arvind Kejriwal, Kiran Bedi and Prashant Bhushan - remained inconclusive on Wednesday with the two sides agreeing to resume talks again on Thursday.

The Centre seemed to have hardened its stand during the third round of talks with Mukherjee saying that due consideration would be given to Anna Hazare's Jan Lokpal Bill, echoing the resolution passed by an all-party meeting on Wednesday evening.

While Law Minister Salman Khurshid said the talks went on in a positive manner at the North Block, Team Anna had an entirely different take on how the talks went on and said that they were disappointed with the outcome.

Mukherjee said that parliamentary process have be followed and requested Anna Hazare to end his fast.

"We apprised them of the outcome of the all-party meet. We requested them that there is a parliamentary process to complete," said Mukherjee.

"We hope that the parliamentary process will be allowed. We recommended that Anna Hazare ends his fast and that due consideration would be given to Jan Lokpal bill so that an effective Lokpal Bill will be formulated," he added.

"Talks are going in a positive manner. Talks will continue tomorrow. Both parties are trying to understand each other. Anna's health is a priority. There is need for a broad national consensus suggested by all-party meeting and we are working towards that. We cannot undermine the official Lokpal Bill that was passed by the Cabinet," said Khurshid.

But Bhushan said that the Government told them that parliamentary procedures cannot be short-circuited.

"We are disappointed from the meeting. Unfortunately, we are back to square one. Yesterday there seemed to be some progress. But today after the meeting we are back to square one," said Prashant Bushan.

"Today we are being told that the parliamentary procedure cannot be short-circuited but some timelines can be adhered to," he said.

"They told us that the Jan Lokpal Bill will not be presented," said Arvind Kejriwal.

Bedi added that Government’s tone had changed overnight. She claimed that the difference between Government's attitude on Tuesday and Wednesday was marked like "day and night".

"Today their (Government team’s) attitude was very tough. Instead of talking as they did yesterday they were literally shouting at us and putting us down. When we asked will they use police force to pickup Anna tonight they got angry,” she said.

At the all-party meeting held at Prime Minister Manmohan Singh's 7 Race Course Road residence, the Government offered to make changes in the Lokpal Bill it has tabled in Parliament. But the entire Opposition wants the Government to withdraw its bill.

However, the Government says that there is no need for the withdrawal of the bill.

The Government has agreed that an amended Lokpal Bill will be tabled in Parliament but has refused to give any timeline for the final bill. The final bill will contain amendments suggested by Team Anna or any other group and the Prime Minister will be brought under the Lokpal's ambit.

The Lokpal will replace the Central Bureau of Investigation (CBI) as the investigation agency for corruption cases and a citizens' charter will be included for redressal

But two main sticking points remain: Lokayuktas for all states and inclusion of lower bureaucracy under the Lokpal.