The Mint report for 20 October 2010

The Mint report for 20 October 2010

New Delhi: It’s been a very lucrative third day for Coal India’s IPO. Its issue was subscribed more than 11 times by Wednesday, which is also the last day for institutional investors. Coal India is putting about 631.3 million shares on the block. The IPO could rake in more than Rs15,000 crore for the government. Its stock begins trade on 4 November.

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Two major private sector lenders reported their quarterly numbers on Wednesday. Kotak Mahindra Bank posted a net profit rise of 21% to Rs364 crore. That’s on a 24% increase in net interest income to Rs844 crore. Net interest margins meanwhile fell to 5.6% from 5.9% in the same period last year. The bank said it was hard to maintain margins because it was trying to avoid passing on interest rates hikes to customers.

Meanwhile, the other big private lender, Yes Bank has done better. It reported a 58% increase in profit to Rs176 crore. Net interest income gained a full 78% to Rs313 crore. The bank’s net interest margins fell to 3.0% from last year’s 3.1%.

India’s iron ore exports have plummeted in September, largely driven by the Karnataka ban. Industry figures show exports fell 47% forty-seven percent to 3.03 million tonnes. That’s the lowest figure in terms of volume since April 2007. Karnataka banned iron ore exports as part of an effort to curb illegal mining. Lower demand from China has also contributed to the decline.