Vijaya Bank posted more than a 58% fall in net profit in the June quarter, on higher provisioning costs, and NIM dropped to 2.3% from 2.9% a year ago. High interest rates have hurt business growth and new investments.
According to JP Morgan the biggest impact of a US downgrade will be on tri-party agreements in Europe and the US repo market.
Certain tri-party agreements have strict ratings requirements which would result in US Treasuries no longer being accepted as collateral.
“If the US sovereign were no longer rated Triple A, US Treasuries would not be eligible anymore.
According to the JP Morgan research note, “US money market funds would not be required to sell US Treasury Securities in the event of a US downgrade, it is investor redemptions that pose most risk.
“Many US investors will remain loyal and patriotic to Treasuries but for European and Asian investors they will be looking for alternatives,” he said.
Foreign central banks who hold around USD3.5trn of US Treasury securities are already seeking alternatives to US Treasuries.
The state wildlife board has decided to scrap the Rs 27,000 crore integrated steel plant of 6 million TPA (tonnes per annum) capacity proposed to come up in Bellary district adjoining the Daroji Bear Sanctuary.
After many deliberations and field visits, the state wildlife board and forest officials found that the site location was within the proposed eco-sensitive zone of the bear sanctuary.
The proceedings of the fourth meeting of the state wildlife board conducted by former CM B S Yeddyurappa on July 26 quoted the issues as: “Some part of the proposed areas include reserved forests, deemed forests and fall within the proposed eco-sensitive zone of Daroji Wildlife Sanctuary.
Within a 10 km radius of the proposed site, are forests like Joga and Billakallu, Donimalai and Torangallu reserve forests.
Leaders from European powerhouses Germany and France will hold talks on Friday after a global market rout signalled fear Europe’s debt crisis is spinning out of control and a U.S. recovery is stalling.
In Japan, Finance Minister Yoshihiko Noda said global policymakers needed to confront currency distortions, the debt crises and concerns about the U.S. economy.
Japan and Switzerland are trying to reduce the allure of their markets as safe havens and after gold has more than doubled in price since the global financial crisis, many investors are having second thoughts about seeking refuge in the precious metal.
Investors slashed positions after the European Central Bank failed to include Italy and Spain in a fresh round of bond buying, even though yields on their debt shot above 6%, the highest level since the euro was launched over a decade ago.