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Barring China, major Asian stock markets have opened the day on positive note. Stock markets in Hong Kong and Singapore are trading higher by 0.5% each. Major stock indices in Europe and US ended their previous session on a buoyant note. The rupee is trading at 66.20 per US dollar.
Indian stock markets have opened the day on a positive note. BSE Sensex is trading higher by 11 points (up 0.05%) and NSE Nifty is trading higher by 2 points (up 0.02%). Both BSE Mid Cap and BSE Small Cap have surged upwards and are trading higher by 0.3% and 0.4% respectively. Major sectoral indices have opened in green with stocks from metal and oil & gas sector witnessing maximum buying interest.
As per an article in leading financial daily, Idea Cellular has launched its high speed 4G internet services in five states. The states covered are Andhra Pradesh, Karnataka, Kerala, Tamil Nadu and Telangana. Major towns covered in the respective states are Kochi, Mysuru, Visakhapatnam and Vijayawada.
Further, company plans to expand its 4G offering in 750 cities which covers ten telecom circles by June next year. Reportedly, these ten telecom circles cover more than 60% of Idea's gross revenue. To add to this, Idea will commence its 4G offerings in the state of Gujarat and Uttar Pradesh once it completes the acquisition of spectrum from Videocon Telecommunication.
The company is offering various discounts and trial packs in order to shift its existing and new customers to 4G services. Idea has already received over a million 4G service requests from its existing customers on its pre-book offer.
Stock of Idea is trading up by 0.5%.
As per an article in leading financial daily, Reserve Bank of India (RBI) warned state-run banks to stop paying excessive dividends to the shareholders. The statement was made as the risk of bad loans has increased considerably owing to deterioration in the economy.
Further, Financial Stability Report also stated that the risk to banking stability has increased in the past six months owing to worsening asset quality coupled with sluggish profitability. The deterioration in asset quality is evident from the numbers, wherein gross non-performing assets (GNPAs) of state-run lenders have jumped to 8.1% as of 30 September as compared to 6.1% on 31 March.
Reportedly, credit assessment of state-run banks has not been up to the mark, which in-turn has led to the deterioration in asset quality. The report has also blamed bankers for poor credit evaluation which made it a bit difficult to recover the money from the defaulters.
Investors should pay due consideration to asset quality and non-performing assets before investing their money in a public sector bank.
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