BJP supremo Amit Shah to visit Mangaluru on Oct 4

New Delhi, Jun 9: Elections to seven seats of the Karnataka Legislative Council will be held on June 29, the poll panel announced on Tuesday.

The seven seats are falling vacant on June 30, according to an Election Commission statement.

Members of the Karnataka Legislative Assembly will vote on June 29 to elect the seven new MLCs.

The Commission has directed the Karnataka chief secretary to depute a senior officer to ensure that the  instructions regarding COVID-19 containment measures are complied with during the elections.

The counting of votes will be held on the evening of June 29 after completion of polls, as per practice.

The notification for the elections will be issued on June 11, the statement said.

MLCs are usually elected by four types of electors -- MLAs, Graduates, Teachers and members of local authorities.

On Monday, the Commission had deferred elections to four seats of the Karnataka Legislative Council -- two each from Teachers and Graduate constituencies -- falling vacant on June 30 due to the outbreak of the novel coronavirus.

"If MLAs are electors, the size of the electorate is small and the assembly building is the only polling station. When the electorate is teachers or graduates, the number of those who can vote is higher.

Due to the virus, Commission only allowed polls to seats where MLAs are the electors to prevent large gatherings," explained a senior EC functionary.

New Delhi, Mar 6: Shares of YES Bank and State Bank of India came under huge selling pressure on Friday as developments unfolded regarding SBI picking stake in the private lender. Shares of the lender hit record low of Rs 5.55, plunging 85 per cent, and were trading below its previous low of Rs 8.16 hit on March 9, 2009.

SBI, on the other hand, slumped 11 per cent to Rs 257.35 on the BSE. The benchmark S&P BSE Sensex was trading with a cut of over 3 per cent at 37,251.37 level.

In the past three months, share price of the private lender has plunged 41 per cent, while the state-owned lender has slipped 14 per cent. In comparison, the S&P BSE Sensex has dipped 5.6 per cent till Thursday.

On Thursday, the Reserve Bank of India superseded the board of troubled private sector lender YES Bank and imposed a 30-day moratorium on it “in the absence of a credible revival plan” amid a “serious deterioration” in its financial health.

During the moratorium, which came into effect from 6 pm on Thursday, YES Bank will not be allowed to grant or renew any loans, and “incur any liability”, except for payment towards employees’ salaries, rent, taxes and legal expenses, among others.

This is the first time that a bank of this size will be put under a moratorium by the RBI.

“The financial position of YES Bank had undergone a steady decline “largely due to inability of the bank to raise capital to address potential loan losses and resultant downgrades, triggering invocation of bond covenants by investors, and withdrawal of deposits,” RBI said in a statement.

“After the moratorium, the next step will be to infuse to money and keep the bank afloat. So from shareholders’ point of view, the future is certainly hazy as the capital requirement is huge. The good part, however, is that the RBI has stepped in and depositors don't have to worry,” says Siddharth Purohit, a research analyst at SMC Securities.

Meanwhile, analysts at Nomura believe that placing the Bank under moratorium implies that equity value in the bank would be negligible, and that the chances of private capital participating in future capital raising plan are near zero.

"Any resolution for Yes Bank is more proposed from the perspective of deposit holders and systemic stability, and not from the perspective of Yes Bank equity investors or even perpetual bond holders," they wrote in a note dated March 6.

In another development, SBI’s Board Thursday gave in-principle approval to consider an “investment opportunity” in YES Bank, even as it said “no decision had yet been taken to pick up stake in the bank”.

According to a  report, highly-placed sources indicated a rescue plan involving SBI and Life Insurance Corporation of India (LIC) was being discussed and an announcement in this regard might be made soon.

“While the finer details of the deal are being worked out, it is anticipated that both SBI and LIC together will take a 51 per cent stake in the bank, with a one-year lock-in period,” the report said.

Most analysts believe it is a positive step for the Indian financial sector as the government has tried to avoid a repeat of IL&FS-like crisis.

“The move is a positive step for the financial sector as a whole. By this, the government has tried to avoid a repeat of IL&FS-like crisis and has saved the depositors,” said AK Prabhakar, Head of Research at IDBI Capital. While we know that YES Bank has a huge pile of bad loans, SBI is the only bank that has the capacity to absorb it, he added.

However, the valuation at which YES bank would be taken over remains a cause of concern.

Global brokerage firm JP Morgan Thursday cut its target price for YES Bank on Thursday to Rs 1 per share, taking into account the potential fall in the lender’s net worth due to stressed assets.

“We believe forced bailout investors will likely want the bank to be acquired at near-zero value to account for risks associated with the stress book and likely loss of deposits. We think the bank will need to be recapitalised at nominal equity value and could test dilution of additional tier 1 (AT1) capital. We remain underweight and cut our target price to Rs 1 as we believe net worth is largely impaired,” JP Morgan said in a note.

Global brokerage firm Nomura estimates a need of Rs 25,000-44,000 crore and adjusted for Rs 7,400 crore of current coverage, if the current stress of Rs 65,000-70,000 crore faces 70 per cent loss given default (LGD).

"It implies Rs 18,000-37,000 crore needed for provisioning against the current net worth of Rs 25,700 crore Also, to run as going concern, the bank would require over Rs 20,000 crore of CET-1 capital as well," the note said.

YES Bank has registered slippages of Rs 12,000 crore so far in FY20, while it has placed Rs 30,000 crore of loan assets under the watch list. Its deposits stood at Rs 2.09 trillion on September 30, 2019, while its advances totalled Rs 2.24 trillion. The bank has delayed publishing its December quarter results by a month to March 14.

Bengaluru, Feb 22: The Hindu Mahasabha has decided to carry out a 'cleaning ceremony' by using 'gau-mutra' (cow urine) to purify Freedom Park, where pro-Pakistan slogans were shouted as a protest against the CAA, NRC and NRP.

On Thursday, an 18-year-old girl Amulya Leona hadraised slogans of 'Pakistan Zindabad,' after the organisers of the event under the banner of 'Save Constitution' invited her to address the gathering. AIMIM chief Asaduddin Owaisi soon rushed and tried to snatch away mic from her hand.

Amulya, who was arrested by the police soon after the event on charges of Sedition, was remanded to 14-day judicial custody.

Associates of Amulya insisted that she was trying to make a point that nobody in the anti-CAA rallies would hail a ‘long Live Pakistan’ slogan while they would do so for a ‘Long Live Hindustan’ chant.

“She is not dumb. She knew exactly what she was saying. She had a clear narrative in mind, but was interrupted before she could complete it. Her half-comments are now being taken out of context,” said Sujnan, another student-activist. 

“In the end, the campaign is not involved with whatever she said or intended to say. It falls on her to explain herself,” said a protest organiser.