Banking stocks are trading in the red led by UCO Bank and Bank of Baroda. Bank of Baroda has announced its results for the quarter ending March 2012 (4QFY12) and full year (FY12). For the quarter, the bottomline registered an increase of 17% YoY (year on year). Higher interest income (up 28% YoY) led to boost in the bottomline. Total income for the quarter was up 26% YoY. Other income (includes fee, commissions, foreign exchange and treasury transactions) was up 7.7% YoY. The asset quality of the bank deteriorated and provisions against bad loans and other contingencies were up 43% YoY.
Barring Hindustan Petroleum Corporation Ltd (HPCL) and Essar Oil, Energy stocks are trading in the red led by Petronet LNG and Mangalore Refinery and Petrochemicals Ltd. (MRPL). As per a leading financial daily, the Government has imposed a hefty penalty of Rs 66 bn (USD $ 1.24 bn) on Reliance Industries due to a steep decline in gas output from KG-D6 fields. The notice sent by the oil ministry has blamed the company for willfully drilling fewer wells than as committed in its approval plan and thereby violating the production sharing contract. The oil ministry firmly rejected the company's explanation that unexpected geological conditions led to the steep decline and its decision to drill fewer wells was based on established data. The penalty of USD $ 1.24 bn consists of two components: USD $457 m for lower production in 2010-11, and USD $778 m for 2011-12 when output fell further.