Most of the food & beverage stocks are trading mixed with Golden Tobacco and Sterling Biotech being the major gainers whereas Nestle and VST Industries are trading in the red. As per a leading financial daily, Tata Global Beverages Ltd (TGBL) has acquired Australian coffee company Bronski Eleven. Bronski Eleven is present in roasted and ground coffee and coffee pods or single service portions under the brand name MAP in Australia. As per the company, the current acquisition will enable it to strengthen its position in the high-growth 'single-serve business' as well as expand presence in Australia. TGBL has a presence in the coffee pod segment in the US through its agreement with Green Mountain Coffee Roasters' Keurig single serve machines for Eight O Clock Coffee. Similarly it is present in the single serve segment in Canada with Tassimo for Tetley tea. TGBL stock is currently trading up by 2%.
PSU banking stocks are trading on a mixed note today. While United Bank of India is leading among the stocks of gainers (up 7.3%), Bank of Baroda and Punjab National Bank are trading lower. As per a leading business daily, United Bank of India will seek shareholders approval to raise Rs 13 bn. The Kolkata based government owned bank has seen a substantial increase in Non Performing Assets (NPA. As per norms, the bank has to provide for up to 100% for bad loans depending upon the nature of the assets. In addition, the bank has also been struggling to meet its capital adequacy requirement under the Basel III international norms. The bank plans to raise about Rs 10 bn through public issue, QIP or rights issue and another Rs 3 bn through preferential allotment to the government. As of March 2014, the banks gross NPA at 10.5% and net NPA at 7.2% of total advances was much higher than the industry averages.