Saturday, August 25, 2018

क्या अब उद्योगपति धमकाएंगे विपक्ष को ?

कल 27 अगस्त को RBI द्वारा तय समय सीमा खत्म होने के साथ ही अन्य कई कम्पनियों के साथ अनिल अम्बानी की रिलायंस नेवल भी दिवालिया घोषित होने की कार्यवाही के दायरे में आ जाएगी। अनिल अम्बानी ने इससे एक दिन पहले , यानी आज इसके डॉयरेक्टर के पद से इस्तीफा दे दिया। इस्तीफे के लिए उसने कंपनी अधिनियम की उस धारा का हवाला दिया जो 2013 से लागू है।
         इससे दो दिन पहले उसकी दूसरी कंपनी रिलायंस इंफ़्रा ली अपने NCD का भुगतान नहीं कर पाई और डिफ़ॉल्ट कर गयी।
         राफेल के सवाल पर कांग्रेस द्वारा सरकार से ये सवाल पूछने पर की उसने राफेल डील के अंतर्गत मेंटिनेंस इत्यादि का कॉन्ट्रैक्ट हिंदुस्तान ऐरोनॉटिक्स से हटाकर केवल 15 दिन पहले बनी अनिल अम्बानी की उस कम्पनी को किस आधार पर दिलवा दिया जिसके पास इस तरह का कोई अनुभव ही नहीं है , तो इसका जवाब सरकार द्वारा देने के बजाय अनिल अम्बानी ने कांग्रेस पर 5000 करोड़ की मानहानी का मुकदमा दायर कर दिया।
           यानी अब सरकार के फैसलों पर और अपने मित्र उद्योगपतियों को गलत तरीके लाभ पहुंचाने पर अगर कोई सवाल उठाया जायेगा तो उसका जवाब सरकार द्वारा देने के बजाय अब उद्योगपतियों द्वारा विपक्ष को क़ानूनी कार्यवाही की धमकियाँ दी जाएँगी ? देश की जनता इसे स्वीकार नहीं करेगी और सरकार और कॉरपोरेट के नेक्सस को ये बात ध्यान से समझ लेनी चाहिए।


Saturday, April 7, 2018

Will America Accept Its Defeat in Syria? Challenge Russia and China?

Russia introduced China to Syria during the war when the Chinese navy arrived in the Mediterranean and reached the shores of Tartous and Lattakia to send a message to America and its allies that the monolithic dominance of the world was over.
There are thousands of Chinese jihadists who fought with ISIS and al-Qaeda and Beijing was concerned, willing to see all these killed in Syria. Cooperation between the Chinese and the Syrian intelligence services was established. Damascus has a unique and a very rich bank of information about foreign fighters many countries in the world would like to have access to, since over 80 nationalities of foreign fighters were allowed into Syria in a failed attempt to topple the regime and establish an Islamic State.
But Washington is still trying to protect its position, refusing to give up on the crown of world domination it has enjoyed for over a decade and it is ready to fight against the “axis opposing the US” using other means outside Syria. The US establishment and its allies are expelling Russian diplomats and imposing sanctions on China and Iran. The US defeat in Syria is obviously very painful.
What Washington is pretending to ignore is that the world no longer believes in the US’s military muscles and that there are two potential countries, less arrogant and willing to create alliances rather than bullying weaker countries: Russia and China. These are gathering more allies against the US axis.
The US is still living in the era of 1991 when the Soviet Union collapsed. Its strong decline continued until the arrival of President Vladimir Putin to power in 2000. Washington realised there is a new person at the Kremlin in the castle of the Tsars with a determined intention to restore the lost glory. Russia had only nuclear weapons at that time and nothing else but the will was strong for the Russian bear to wakeup from its hibernation.
Putin did not declare war on America but extended his hand and tried to build friendship or at least not enmity. But Washington saw in Moscow the potentiality to recover in a couple of decades and worked on slowing down the process or interrupting it if possible. This is why the US started to pull to its side many countries of the ex-Soviet Union which have declared independence and include these in NATO and in the European Union surrounding Russia.
China, which includes cheap labor and can clone any commercial or military technology, like Russia has perceived America’s fear of its rapid economic development and wealth. Thus, the Chinese-Russian rapprochement was mainly created by the aggressive US policy towards the two countries, and this mainly because the American concentrate exclusively on military muscle when dealing with the World.
Washington has focused its naval control over the South China Sea and the Straits of Malacca, bringing back memories of its military presence during the Second World War with the attempt to tighten its pressure on Beijing. The US is aware of their naval superiority and know that China needs the sea for its commerce and for its supply of energy.
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China started to protect itself by setting up the Eurasian political and economic Shanghai Cooperation Organisation in June 2001 with the goal also to focus on economic initiatives, increase military and counter terrorism cooperation with intelligence sharing. This Cooperation includes about half of the World’s total population and the states (including five nuclear states) of China, Russia, Kazakhstan, Tajikistan, Uzbekistan, Kyrgyzstan, Mongolia, Iran, India and Pakistan – and rejected Washington’s and Tokyo’s request to be observers only.
China has gone to the countries affected by US policy to establish a rapprochement. Further, it established the “string of Pearls” of states and islands for marine protection and encircled India, Japan and other American allies. The Indian Ocean sees the passage of 60% of the trade in oil from the Middle East, making the Straits of Malacca indispensable for China to protect. Therefore Beijing established relationships with Malaysia, Singapore, Myanmar, Coco islands, Bangladesh, Sri Lanka, Pakistan, and a presence in the African coast in Sudan and Kenya.
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Moreover, China revived the world’s oldest overland trade route of the Han Dynasty called “the Silk Road”. The modern Chinese Silk Road will provided a link to Beijing with the world for trade expected worth one trillion dollars (for 900 separate projects). The Silk Road reaches 11 cities in Europe and others in Africa by railway and pipeline and is expected to bring together seven Asian countries under the slogan “One Belt, One Way”. It will offer gas and trade to China and will cover 70% of the planet’s population.
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China is also part of the BRICS Group, which was established in 2009 and includes Brazil, Russia, India, China and South Africa, which account for about 40 percent of world production.
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And last but not least, in 2013, China presented the Asian World Bank (AIIB) that was set up to strike America at the core and bring together 57 countries – including several European states – but excluding the United States and Japan, its staunch ally.
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The Asian International Bank – with $100 billion – aims to get rid of American financial control over the world’s economy. Washington considered this move as provocative, aiming at finding alternatives to its control of the world’s economy and financial that the United States has controlled for decades without any rival.
With its superficial but continuous sanctions, Washington believes it is capable of preventing the Eurasia Union (which begins from the Atlantic Ocean to the Indian Ocean, including six large states containing 3/4 of the world’s energy), to trouble Russia and to bother China.
Moreover, the US was thinking of creating a “Middle Eastern NATO” to counter the “Shiite crescent” and the “Iranian threat”. This idea was destroyed following the Saudi Arabia disastrous war on Yemen  and because Middle Eastern countries are unable to unite politically, economically or militarily.
While the US is fighting and losing in Syria, most countries that rejected American hegemony are gathering together in one way or another. There is cooperation between these countries – as we saw above –  to get rid of Washington’s dominance, arrogance and destructive foreign policy.
The US believes in changing regimes and directly – or through proxies – to occupy or control countries and impose a heavy protection fee to avoid toppling Middle Eastern monarchies (like Saudi Arabia as Donald Trump said himself). The US establishment is also manipulating youth and exploiting it under the title “Freedom activists” to guide them towards failing states, allowing extremists (Libya and both Syria and Iraq) to just get away with it).
America is deploying missiles everywhere where its military bases are deployed all over the world and has never thought of using its energy and power to support the economy and peace. It is only focused  on controlling states and the sources of energy regardless of the consequences, because there is no accountability for its doing.
Failure is everywhere: Washington’s plan failed- as General Wesley Clark, retired 4-star U.S. Army general, Supreme Allied Commander of NATO during the 1999 War on Yugoslavia said – to occupy seven countries (Iran, Iraq, Syria, Lebanon, Libya, Somalia and Sudan), and its failure in Afghanistan, Iraq and Syria because it underestimated the reaction to its foreign policy.
However, it has largely succeeded in planting hate among the Muslim population, turning the objective of al-Qaeda (its goal to target the far enemy, i.e. the US) and replaced it with ISIS (the goal is to target the near enemy, i.e. minorities and other Muslims), reviving an animosity between Muslims that is 1400 years old. Today the majority of the western population believes the war in the Middle East is “between Muslims. Let them kill each other…who cares?”.
While the United States is selling for $110 billions weapons to Saudi Arabia to kill more Yemenis and threaten its neighbours (Qatar, Syria and Iran),  Russia has signed 10 year contracts with China worth 600 billion dollars, and with Iran worth 400 billion dollars. Also, China has signed contracts with Iran worth 400 billion dollars. These contracts are aimed at economic cooperation, energy exchange; they promise an advanced economic future for these countries away from US dominance.
The US believes it can corner Russia, China and Iran: Russia has a 7,000 kilometre border with China, Iran is not Iraq and Syria is not Afghanistan. In Syria, the destiny of a world to be ruled by unilateralism is over. The world is heading toward pluralism.
The question remains: Is Washington prepared to accept its defeat and acknowledge that it has lost control of the world and pull out of Syria?
Elijah J. Magnier is a Senior Political Risk Analyst with over 32 years’ experience covering Europe & the Middle East. Acquiring in-depth experience, robust contacts and political knowledge in Iran, Iraq, Lebanon, Libya, Sudan and Syria. Specialized in political assessments, strategic planning and thorough insight in political networks.
Proof read by: Maurice Brasher

Thursday, March 29, 2018

Why petro-yuan may become biggest game-changer of all time in capital markets

The historic launch of the long-awaited trading of Chinese crude futures this week has stirred up a heated debate among analysts as to whether the new commodity product will prosper or flop.
Some market analysts expressed doubts over the success of the petro-yuan, citing Beijing’s yearning for total control over trading as one of the key reasons for a potential bust. “The government has been eager to encourage liquidity and paper trading, but of course the issue with paper trading is speculative trading that the government wants to keep at bay,” Michal Meidan, an analyst at energy market consultancy Energy Aspects, told Bloomberg prior to the launch.
Meanwhile, the high costs of oil storage for delivery into the Shanghai Futures Exchange may scare potential investors away from the new contracts, according to industry analysts. “Storage plays a crucial role in linking cash and futures markets. Many speculators, such as proprietary traders and hedge funds, may be scared away,” said Jian Yang, a research director at the JP Morgan Center for Commodities in the University of Colorado Denver, as quoted by the agency.
However, China's yuan-backed oil futures managed to make a strong debut on Monday with overnight trade volumes initially outstripping transactions of internationally recognized benchmark Brent. Some 62,500 contracts reportedly changed hands during the first session, as domestic and international oil investors joined the trading.
The impressive start gives deeper cause for optimism about the newcomer with some analysts qualifying oil futures denominated in China’s currency as a game-changer in the world of financial trading. “This is the single biggest change in capital markets, maybe of all time,” said Hayden Briscoe, APAC head of fixed income at UBS Asset Management, as quoted by Reuters.
According to the analyst, the move to trade oil in yuan will diminish the role of the greenback in global financial markets. If market participants, including US corporations, opt to trade yuan-backed contracts, this could easily strengthen the Chinese currency and, at the same time, weaken the dollar.
“This helps cement the exchange’s viability and challenges the petro-dollar system, in which oil deals are executed in dollars. This would decrease demand for the greenback and boost US inflation,” Briscoe said.
With crude oil becoming a great chunk of modern international commerce, the potential impact of the new product on oil market dynamics and on global monetary and financial systems could be correspondingly great.
copy from RT

Wednesday, January 31, 2018

Banking, Finance and Economy Current Affairs - 1Feb.2018

The Central Government yesterday gave the details of its Rs 800 billion recapitalisation bonds for banks through 6 maturities, and they will not disturb the market dynamics of the fixed-income paper,  experts said. The Rs 800-billion recapitalisation bonds would have a tenure of 10-15 years and would carry a coupon rate in the range of 7.35-7.68%, the finance ministry said in a notification.
-Business Standard 

IDBI Bank's Q3 standalone loss narrowed down to Rs 1,524.31 crore against Rs 2,255 crore in the corresponding quarter last fiscal. It had reported a net loss of Rs 197.84 crore in the Q2FY18. Gross bad loans  as a percentage of total loans stood at 24.72% at end-Dec compared with 24.98% in the previous quarter and 15.16% a year ago.
-Economic Times 

ICICI Bank today posted 32.42% year-on-year fall in standalone net profit at Rs 1,650.24 crore for the quarter ended Dec 31, 2017. It had posted profit of Rs 2,441.82 crore in the corresponding quarter last year. Provisions and contingencies figures increased by 31.59% YoY to Rs 3,569.56 crore for the quarter ended Dec 31, 2017.
-Economic Times 

Bank of India has recovered Rs 3,000 crore in the last month by invoking standby letter of credit, or SBLC, and guarantees of defaulters, said its chief executive. "Since the time RBI has imposed PCA, we have recovered Rs 3,000 crore by invoking SBLC,'' said Bank of India chief executive Dinabandhu Mohapatra.
-Economic Times 

The net profit of Karur Vysya Bank for the third quarter ended December 2017 slipped to Rs 71 crore compared to Rs 116 crore during the corresponding quarter of the earlier fiscal. Operating profit on the other hand was up 25%  at Rs 421 crore (Rs 335 crore).
-Business Line 

Private equity fund  ChrysCapital is in advanced negotiations to invest about Rs 400 crore to acquire a 26% stake in Fedbank Financial Services, a wholly-owned unit of Federal Bank, a development which signals a continuation of last year's trend of private equity deluge into financial services companies in the country. The transaction is expected to conclude within a few weeks and the proceeds will be used for the expansion of Fedbank Financial Services. 
-Economic Times 

Syndicate Bank said it plans to raise Rs 3,990 crore for expanding its business and meeting regulatory capital requirements.The bank said its Board of Directors will meet on February 2 "for approving the revised capital plan of the Bank from Rs 3,500 crore earlier (of which Rs 1,150.80 crore has been raised by way of Qualified Institutional Placement (QIP)) to Rs 3,999 crore for FY 2017-18."
-Moneycontrol.com

The Government today revised FY17 GDP  growth upwards to 7.1% from 6.6% earlier, underlining a relatively lesser impact demonetisation has had on the economy than predicted. The government had first released the provisional data last May. The revised numbers take into account a wider range of data. The nominal GDP for the year has been revised to 10.8% from 11% estimated earlier.
-Economic Times 

India has slipped to 42nd place on the Economist Intelligence Unit's annual Global Democracy Index amid the "rise of conservative religious ideologies" and increase in vigilantism and violence against minorities as well as other dissenting voices. While Norway has again topped the list, followed by Iceland and Sweden, India has moved down from 32nd place last year and remains classified among "flawed democracies".
-Economic Times 

Banking, Finance and Economy Current Affairs Jan.31 2018

SBI is planning to sell credit cards to farmers on easier terms, Chairman  Rajnish Kumar said today. The Bank has tied up with its credit card issuing subsidiary  SBICard to make it happen. This is perhaps the first time that a bank is offering credit card product to farmers to purchase goods on credit. Till now, small farmers have access to bank credit by way of Kisan Credit Cards, which are typically linked with bank accounts and offer cash credit facility to account holders.
-Economic Times

SBI has raised interest rates offered on bulk deposits by 50 to 140 basis points, signaling a turn in the interest rates cycle. The bank has sharply raised rates for 46 days to 210 days by 140 basis points from 4.85% from 6.25%.
-Economic Times 

Banks are expected to hike deposit rates in the near term as incremental credit has outpaced deposits over the last quarter, which has pushed up the credit /deposit ratio of the banking system, according to credit rating agency ICRA.
-Business Line 

LIC has put almost Rs 60,000 Cr in disinvestment opportunities offered by the government so far this fiscal. A senior LIC official said the LIC has booked Rs 20,000 Cr as profit from the equity market. “Compared to last year, when we had booked around Rs 19,000 crore as profit from the equity market. This year, driven by the buoyancy in the markets, we have crossed Rs 20,000 crore,” he said.
-Moneycontrol.com

In a first for an Indian, NITI Aayog  Member Vinod
Paul has been chosen to receive WHO's prestigious IhsanDogramaci Family Health Foundation Prize for his services in the field of family health, official sources said today.
-Economic Times 

The Centre today notified a nearly  200% hike in the salary of Supreme Court  and  High Court judges. The new salary of the Chief Justice of India will now be Rs 2.8 lakh per month, up from the present Rs one lakh. Similarly, judges of the Supreme Court and chief justices of high courts will draw a monthly salary of Rs 2.50 lakh, up from the current Rs 90,000, according to the Act notified by the law ministry.
-Economic Times 

🍒 Central Bank of India Ltd to announce third quarter results on Feb 9, 2018 : A Meeting of the Board of Directors of Central Bank of India Ltd will be held on Friday, 9th February 2018, to consider and take on record unaudited financial results of the Bank for the third quarter and nine months ended 31st December 2017. Shares of CENTRAL BANK OF INDIA was last trading in BSE at Rs.74.05 as compared to the previous close of Rs. 74.25. The total number of shares traded during the day was 1621784 in over 929 trades. The stock hit an intraday high of Rs. 75.7 and intraday low of 73.55. The net turnover during the day was Rs. 121662995. - Equitybull.com

🍒 Leadership changes likely in some public sector banks : The government is considering a comprehensive reshuffle of top executives at state-run lenders, days after it unveiled a reform agenda linked to its recapitalisation plan. A senior finance ministry official confirmed that managing directors and chief executives of about four public sector banks (PSBs) may be moved as their performance has not been up to scratch. This is meant to send a signal to others.  "Their performance is under review. Most of these lenders are already under the RBI's prompt corrective action (PCA) plan and if required we will make some leadership changes," he said.  - Economic Times

🍒 Less scope for RBI to cut rate: Arvind Subramanian : Chief Economic Adviser Arvind Subramanian today indicated that the scope for RBI to lower interest rate may be limited with growth picking up and inflation hardening. RBI, which is slated to announce the next monetary policy review on February 7, has maintained status quo on interest rate since August last year. "By definition if growth is picking up and inflation is rising, there is less scope of monetary easing. By definition that's true," he told PTI when asked about possibility of rate cut by by the central bank. He added however that it would be inappropriate for him to comment on rate cut as it is the domain of the Reserve Bank of India. RBI had last cut interest rate by 25 basis points to 6 per cent on August 2, 2017.  - Economic Times

🍒 Banks seen increasing deposit rates in near term: Icra : With banks' credit outpacing deposits in the last few months, pushing up the credit-deposit ratio, lenders are likely raise deposit rates in the near-term, says a report.  The incremental credit in the current financial year (till January 5) stood at Rs 2.02 lakh crore, far outpacing the additional deposits of Rs 1.27 lakh crore. Rating agency Icra in a report today said the recent capital allocation of Rs 88,139 crore into state-run lenders by the government under the recapitalisation programme will improve the ability of public sector banks to pursue credit growth in the coming months.  - Economic Times

🍒 Oriental Bank of Commerce reports standalone net loss of Rs 1985.42 crore in the December 2017 quarter : Total Operating Income decline 3.99% to Rs 4262.08 crore Net Loss of Oriental Bank of Commerce reported to Rs 1985.42 crore in the quarter ended December 2017 as against net loss of Rs 130.01 crore during the previous quarter ended December 2016. Total Operating Income declined 3.99% to Rs 4262.08 crore in the quarter ended December 2017 as against Rs 4439.02 crore during the previous quarter ended December 2016. ParticularsQuarter EndedDec. 2017Dec. 2016% Var.Total Operating Income4262.084439.02 -4 OPM %19.6652.55 -PBDT-1969.10-47.01 -4089 PBT-1969.10-47.01 -4089 NP-1985.42-130.01 -1427. - Business Standard

🍒 Board of United Bank of India approves preferential issue of shares up to Rs 3000 cr : At meeting held on 30 January 2018 The Board of United Bank of India has approved the proposal for issuance and allotment of equity shares of face value of Rs 10 each to the President of India acting on behalf of the Government of India and to such other person, group of persons or institutions as may be participating in the issue, aggregating up to Rs 3000 crore by Preferential Allotment under Chapter VII of the SEBI ICDR Regulations 2009. - Business Standard

🍒 Indian Overseas Bank plans to increase multi functional cash recyclers by 176% : Indian Overseas Bank (IOB), one of the leading public sector banks in Southern India, has planned to set-up 704 more multi-functional machines like currency recyclers, instead of plain cash dispensing automatic teller machines (ATM) by March 2018 from its existing 400 across India before the financial year 2017-18 ends. The total number of recyclers will now stand at 1104, which is an increase of 176% across the country at places where the customer demand is mainly for cash withdrawals. Cash recyclers are a recycling machine which accepts cash deposits from customers and also dispenses cash. With this increase in the number of cash recyclers, the customers including small business man, vendors and traders can now deposit or dispense cash round the clock, without much concerned about banking hours. These machine enabled cash recyclers are driven by high end technology which can control the frauds and eliminate human errors. - myiris.com

🍒 PSU bank recapitalisation: Govt to issue bonds of 6 maturities : The government today issued a circular detailing the outlines of recapitalisation of public sector banks bond issue. The bonds have been issued in six lots with maturities of 10, 11, 12, 13, 14 and 15-year. Finance Minister Arun Jaitley announced on January 24, 2018 that the government will infuse Rs 88,139 crore into 20 public sector banks through recapitalisation bonds and budgetary support in the current financial year. These recap bonds can be part of held-to-maturity (HTM) portfolio without any limit but are non-transferable and cannot be converted into any other securities. As these are HTM bonds, banks don’t have to take mark-to-market (MTM) profit and loss with the rise and fall in their prices. The current Reserve Bank of India rule stipulates that banks keep aside only 19.5 percent of their deposits in HTM bonds. - Moneycontrol.com

🍒 Bharat Financial Inclusion-IndusInd Bank merger may take another 6 months to formalise :  Microfinance company Bharat Financial Inclusion said that it has received clearance from Competition Commission of India for its merger with IndusInd Bank while approvals from Reserve Bank of India and other statutory bodies are still under process.  The merger may take another six months to formalise, the company said, after announcing 14% rise in third quarter net profit. The merger was announced on October 14, last year. The country's largest microfinance company reported a net profit of Rs 162.6 crore for the quarter to December, compared with Rs 142.8 crore in the year ago period. Its gross loan portfolio grew 34% year on year to Rs 11,466 crore.  - Economic Times

🍒 SBI to offer credit cards to farmer : State Bank of India is planning to sell credit cards to farmers on easier terms, chairman Rajnish Kumar said Tuesday.  The country's largest lender has tied up with its credit card issuing subsidiary SBI Card to make it happen. This is perhaps the first time that a bank is offering credit card product to farmers, who are the backbone of India's agrarian economy, to purchase goods on credit. Till now, small farmers have access to bank credit by way of Kisan Credit Cards, which are typically linked with bank accounts and offer cash credit facility to account holders. Kumar said in Kolkata that farmers would be allowed to spend 20% of the credit limit on consumer goods, and the balance  on buying agricultural inputs. He said the penal clauses for non-repayment of credit card balance after 40 days would be lenient for farmers.  - Economic Times

🍒 SBI raises interest rates on bulk deposits : Country's largest bank, State Bank of India has raised interest rates offered on bulk deposits by 50 to 140 basis points, signaling a turn in the interest rates cycle. The bank has sharply raised rates for 46 days to 210 days by 140 basis points from 4.85% from 6.25%.  The hike in deposit rates comes a couple of days before the finance minister is set to announce the union budget for 2018-19 and a week before the Reserve Bank of India is set to announce its monetary policy. SBI on Tuesday said that it would offer 6.25% on bulk deposits for one year, up 100 basis points, with immediate effect. The bulk deposits are deposits that are in the range of Rs 1 crore to Rs 10 crore. There has been no change in interest rates offered to retail depositors.  - Economic Times

🍒  Resolution will happen in most accounts under NCLT, says SBI’s deputy MD Sunil Srivastava : Banks are expecting a write-back in provisions for some of the large 11 accounts referred to the National Company Law Tribunal (NCLT), State Bank of India deputy MD (corporate accounts group) Sunil Srivastava tells Shamik Paul. He expects competitive bidding for these assets and, going forward, sees a decline in the rate of growth of non-performing assets. - Financial Express

🍒 AU Small Bank posts 5% drop in Q3 profit : Our Bureau A big jump in operating expenses and provisions and contingencies impacted the bottomline of AU Small Finance Bank (AU SFB) in the third quarter ended December 31, 2017. The Jaipur-headquartered bank’s net profit declined 5 per cent to ₹79 crore, against ₹83 crore in the year-ago period. The bank’s net interest income (interest earned less interest expended) was up 24 per cent year-on-year at ₹250 crore. Other income soared to ₹106 crore (₹27 crore). Operating expenses, comprising employees cost and other operating expenses, shot up by 146 per cent to ₹204 crore (₹83 crore). Provisions (other than tax) and contingencies jumped to ₹33 crore (₹18 crore). As on December-end 2017, gross non-performing assets edged up to 2.83 per cent of gross advances against 2.75 per cent as on December-end 2016. - Business Standard

🍒 Lakshmi Vilas Bank slips into red, posts Q3 loss of ₹39 crore : Lakshmi Vilas Bank (LVB)slipped into the red during the third quarter of this fiscal. For the quarter ended December 31, 2017, the bank has reported a net loss of ₹39 crore, compared with a net profit of ₹78 crore in the same period of the previous year on the back of lower operating profit. There was a significant drop in other income and higher provisions made for contingencies. Operating profit of the bank fell significantly to ₹46 crore from ₹171 crore. Other income fell to ₹27 crore, compared with ₹150 crore in Q3 of the previous fiscal. Provisions and contingencies were higher at ₹85 crore, compared with ₹48 crore in the year-ago period. The total income of the bank was lower at ₹ 818 crore, against ₹879 crore in Q3 of the previous fiscal. Gross NPA as a percentage of gross advances increased to 5.66 per cent in Q3 of this fiscal from 2.78 per cent in Q3 of the previous fiscal and 5.50 per cent in the preceding quarter of this fiscal. Net NPA also rose to 4.27 per cent as of December 31, 2017 from 1.82 per cent in the year-ago quarter. But it was marginally lower when compared with 4.33 per cent in Q2 of this fiscal. - Business Line

🍒 GIC Housing Q3 net up 24% : GIC Housing Finance reported a 24 per cent year-on-year (yoy) increase in third quarter net profit at ₹42 crore. Revenue from operations was up 11 per cent y-o-y to ₹281 crore. Total expenditure increased 8.5 per cent to ₹217 crore. The company’s shares closed at ₹434.90 apeice, down 2.75 per cent over the previous close on the BSE on Tuesday. - Business Line

🍒 Sundaram BNP Paribas Home Finance Q3 net profit flat at Rs 39 cr : Sundaram BNP Paribas Home Finance has clocked net profits of Rs 39.42 crore for the third quarter ending December 31, 2017. The city-based company recorded net profits of Rs 39.39 crore in the corresponding period of the previous year. Disbursements for the October-December 31, 2017 period surged 106 per cent to Rs 744 crore from Rs 361 crore registered during the year ago period, a company statement said. - Business Line 

Monday, January 29, 2018

Banking Current Affairs -- Big Loan Default and Other.


🍒 'BHIM app is playing a major role in promoting digital transactions': President Kovind : President Ram Nath Kovind, in his address to the joint sitting of both the Houses, said that the BHIM application launched by the government is promoting digital transactions across the country. Currently, digital payments are being carried out in more than 400 schemes of the government, the President said as part of his address.  "BHIM app is playing a major role in promoting digital transactions. The recently launched 'Umang App' has also made more than 100 public services available on mobile phones," he said. - Times of India

🍒 Big loan default: Claims worth Rs 3.13 lakh crore under insolvency proceedings : Claims worth Rs 3.13 lakh crore, related to 11 defaulting companies notified by the Reserve Bank, are under insolvency proceedings, the pre-budget Economic Survey said today. The Economic Survey 2017-18, tabled by Finance Minister Arun Jaitley in Parliament, further said that of the 11 companies under the Corporate Insolvency Resolution Process (CIRP), most are either seeking the extension or have already been granted additional time. In June last year, the Reserve Bank had identified 12 accounts, each having more than Rs 5,000 crore of outstanding loans accounting for 25 per cent of total NPAs or bad loans of banks, for immediate referral for resolution under the bankruptcy law. Of these, Era Infra Engineering has not yet been admitted to the CIRP. As per the Survey, claims admitted under the insolvency proceedings in the case of Bhushan Steel, Essar Steel, and Lanco Infratech stand at Rs 55,989 crore, Rs 50,778 crore and Rs 51,505 crore respectively. Proceedings under the Insolvency and Bankruptcy Code are initiated after receiving the approval from the National Company Law Tribunal (NCLT). - Financial Express

🍒 Banks reluctant to lend to realty sector on rising NPA: Survey : The share of bank lending to real estate sector has fallen sharply to 17 per cent in 2016 from over 68 per cent in 2013 as banks are reluctant to provide credit to this industry due to rising NPAs and lower profit in property business, according to the Economic Survey.  The survey also expressed concern over rising non- performing assets (NPAs) of individual housing loan portfolios of public sector banks (PSBs) and housing finance companies (HFCs). "Rising NPAs, higher risk provisioning assigned to real estate sector and dwindling profits in the real estate sector, have made banks reluctant to lend to the sector. "As a result, share of bank lending for organized funding to real estate sector has dropped significantly from over 68 per cent in 2013, to 17 per cent in 2016," the survey said. - Economic Times

🍒 HDFC Q3 net profit jumps over two-fold at Rs 6,677 cr : Mortgage lender HDFC Ltd today reported an over two-fold jump in its consolidated net profit at Rs 6,677.06 crore for the third quarter ended December 2017. The company’s consolidated net profit in the corresponding quarter of the previous fiscal stood at Rs 2,728.66 crore. Total income (consolidated) rose to Rs 16,846.77 crore during the period under review, as against Rs 14,988.87 crore in the same period of 2016-17, the company said in a regulatory filing. Housing Development and Finance Corporation (HDFC) reported a 7.8 per cent rise in income from operations at Rs 9,673.05 crore. Premium income from its insurance increased by 18.5 per cent to Rs 6,182.24 crore during October-December quarter of 2017-18. The provisions were raised to Rs 164.54 crore for the quarter as against Rs 153.13 crore in the same period a year ago. - Business Line

🍒 IBC mechanism used actively to resolve NPA problem: Survey : An ecosystem for the new insolvency and bankruptcy process that took shape in 2017-18 is being used actively to resolve the bad loan problem in the banking sector, Economic Survey said.  "A major factor behind the effectiveness of the new Code has been the adjudication by the Judiciary. The Code prescribes strict time limits for various procedures under it," said the Economic Survey 2017-18, tabled in Parliament by Finance Minister Arun Jaitley. The new Insolvency and Bankruptcy Code (IBC) has provided a resolution framework that will help corporates clean up their balance sheets and reduce debts. The Twin Balance Sheet (TBS) actions, noteworthy for cracking the long-standing 'exit' problem, need complementary reforms to shrink unviable banks and allow greater private sector participation, the pre-budget Survey said. - Economic Times

🍒 Banks see liquidity stress on cards as digital payment subsidy kicks in : The government's decision to subsidise digital payments below Rs 2,000 is cumulating problems for banks in the merchant-acquiring business. With the subsidy amount expected to be released after three months and the charges for issuing banks and card schemes to be paid monthly, acquiring banks are trying to find out ways to reduce the liquidity stress that they will have to face.  While various suggestions are doing the rounds, bankers say that if issuing banks could push the billing for digital transactions by three months, then acquiring banks could release the payment at the same time as they received the subsidy amount, thereby reducing challenges. "There is a need to figure out a solution to this issue else there will be a major stress on the merchant acquiring business for banks as well as for payment companies who are acquiring merchants independently," said a seniorbanker with a private sector bank. Merchant discount rate, or MDR, is the charge that a merchant needs to shell out against every digital transaction. - Economic Times

🍒 Resolution plans under IBC may need approval of fewer lenders : The government is debating whether to lower the approval threshold for resolution plans under the Insolvency and Bankruptcy Code (IBC) in a move aimed at preventing too many insolvent companies from going into liquidation. More than 75% of creditors currently have to agree to a resolution plan, implying that just over 26% can reject it and force a company into liquidation. The government feels liquidation should be the last resort and is considering whether such plans can be approved by a two-thirds majority or even a simple majority. "There is a need to relook at the current majority requirement. Just 26% members cannot take a company to liquidation," said a senior government official, who didn't want to be named. "We are seeing it as an issue." Many companies that have gone into liquidation could have continued to function under a less rigorous regime, some in the government feel. - Economic Times

🍒 ‘Aadhaar, digital boost open new biz options :  Citi India is seeing new opportunities in Aadhaar and digitisation following reforms by the government and regulator, even as Asia is turning out to be integral to the multinational bank's global growth strategy. The lender seeks to grow its market share across its cards and wealth management business in retail. On the corporate side it sees opportunities across foreign investment and market flows, and cash-and-trade business.  "For some time now, we have had a strong view that India is in the crosshairs of global capital flows. This has manifested in significant increases in foreign direct investment to India at a time when world FDI is shrinking and this is evidenced by foreign portfolio investment flows from multiple sources," Pramit Jhaveri, CEO, Citi India, told TOI in an exclusive interview. - Economic Times

🍒 Western Union opens technology centre in Pune; to employ 1000 people : Western Union said it had opened a technology centre in Pune to work on robotics, machine learning, predictive learning and biometrics. The new centre, which is 125,000 square feet, will employ 1000 skilled people and will serve as the remittance payment company's innovation and engineering hub in the region, it said in a statement. - Economic Times

🍒 Axis Bank launches 4th edition of “Evolve” : Private sector Axis Bank today launched the fourth edition of ‘Evolve’, an annual multi-city knowledge series for Bank’s SME customers here. The current edition of evolve, titled “Transform your Family Business into your dream company”, will empower the SMEs understand the winning strategies and best practises that have helped some of the leading family businesses in India grow into reputable enterprise. This edition will span across 30 cities including Nagpur, Surat, Rajkot, Pune, Vishakhapatnam, Trichy, Kanpur, Ludhiana and Jamshedpur, a bank release said here. The series aims to equip the participating SMEs with new-age strategies, live case studies, operational know-how, regulatory and Government related knowledge skills, president and head, SME, Axis Bank, J P Singh said. - Financial Express

🍒 Fresh capital, budget proposals to fuel economy: Federal Bank chief Shyam Srinivasan : Private lender Federal Bank has been growing at more than 20% in the last few quarters. Shyam Srinivasan, MD and CEO, said he believed reforms in the last 4-5 years are expected to bear fruit in 2018 and growth momentum will pick up with capital infusion in public sector banks and budgetary proposals in the upcoming Budget.- Economic Times

🍒 Rupee trading weak at 63.56 : The rupee was trading a tad weak at 63.56 owing to month-end dollar demand from banks and importers. However, record inflows into the domestic equity market capped the rupee’s fall.

🍒 Gold falls to Rs 31,120; silver drops by Rs 200/kg : Gold prices declined by Rs 80 to Rs 31,120 per 10 grams at the bullion market today due to a weak global trend and slackened demand from local jewellers. Silver also dropped by Rs 200 to Rs 40,450 per kg due to reduced offtake by industrial units and coin makers.

Sunday, January 28, 2018

Jobs Creation Annually ? - Economy and Finance Current affairs

Seven Million Formal Jobs Created Annually? The Misplaced Debate on EPFO Data and Employment --

A recent study by Ghosh and Ghosh adds a useful dimension, but by deviating from its pure academic purpose to making bold claims on net job creation its original intent and objective  has been lost.--- Read full artical---https://thewire.in/218664/seven-million-formal-jobs-created-annually-misplaced-debate-epfo-data-employment/


Exim Bank has raised $1 billion through overseas bonds that will get listed at London Stock Exchange’s international securities market (ISM).
-Business Line

Investments in domestic capital markets through participatory notes (P-notes) surged to a six-month high of over Rs 1.5 lakh crore at December-end despite stringent norms put in place by SEBI to check their misuse. P-notes are issued by registered foreign portfolio investors to overseas investors who wish to be part of Indian stock markets without registering themselves directly.
-Moneycontrol.com 

Sri P Chidambaram today slammed the government for its "wild" claims of job creation and said that if selling 'pakodas' is a job then begging should also be recognised as an employment option. The former finance minister, in a series of tweets, said that the government is "clueless" on creating  jobs.
-Economic Times 

Saturday, January 27, 2018

Banking, Finance and Economy Current Affairs - GST and Insolvency and Bankruptcy Code (IBC)

Finance Minister Arun Jaitley today said the GST has stabilised in a very short time that provides an opportunity  to widen its base and further rationalise the rates in the future.
-NDTV Profit 

The Govt is considering a proposal to extend the time limit for the  bankruptcy  resolution process by up to 60 days following recent changes in the Insolvency and Bankruptcy Code (IBC) that have led to a reset in the process in many cases, said officials aware of the matter. This could mean more time for the 12 big cases undergoing resolution that were on the first list sent by the RBI to banks in June, calling on them to be referred to the NCLT. These companies account for about 25% of all NPAs.
-Economic Times 

A district consumer forum has held the SBI guilty of deficiency in service for debiting money from a bank account despite a failed ATM withdrawal and awarded a compensation of Rs 3,000 to the account holder. Besides awarding the compensation, the consumer forum in Akola district also directed the bank to refund the wrongly debited amount of Rs 5,000 and pay Rs 2,000 towards the legal cost to the account holder.
-Moneycontrol.com 

Foreign exchange reserves continued rallying for the fourth week with a new high of USD 414.784 billion USD in the week to January 19, attributable to a rise in foreign currency assets. As per data issued by the RBI, reserves saw a spike of USD 959.1 million during the aforementioned time period.
-Deccan Chronicle 

The size  New India Assurance Co has the largest capital and surplus in the general insurance industry in the country, the Co said citing AM Best's credit ratin, in a regulatory filing in BSE.
-Economic Times 

Idea Cellular has approached the Govt for raising FDI level in the Co to 100%. "Application made to  Department of Industrial Policy and Promotion for 100% FDI in Idea," the Co said in an investor presentation.
-Business Today 

The government should have been vigilant to the spike in demand for bitcoins post the note ban, Swadeshi Jagran Manch co-convener Ashwani Mahajan said today, expressing dismay over lack of estimates about the "size and quantum" of black money till date. He also said that there exists conflict of interest at various institutions, including regulators such as FSSAI. Besides, Mahajan said, the Govt should have looked into the way technology was used to launder black money outside India.
-Moneycontrol.com

Constitution and Politics - Best tutorial conversation

This Republic Day - From NDTV, Ravish Kumar and Faizan Mustfa tell about Constitution. This is very useful program for every citizen as well as competitive exam aspirants.

  1. link -
 https://khabar.ndtv.com/video/show/prime-time/where-is-the-place-of-constitution-in-our-social-values-477521

 2. link - https://khabar.ndtv.com/video/show/prime-time/how-much-do-we-respect-the-supremacy-of-the-constitution-477429

Friday, January 26, 2018

Banking, finance and Economy Current Affairs - Payment Banks and Crisil Rating etc.

Payments Banks and Small  Finance Banks are now allowed to sell Atal Pension Yojana. In a statement the finance ministry said that given the strength, expertise and reach of these new age banks, they can play a pivotal role in outreach of subscribers under APY. At present there are 11 Payment Banks and 10 Small Finance Banks.
-Economic Times 

Rating agency Crisil today revised upwards the outlook on 18 PSBs to ‘stable’ from ‘negative’ and also reaffirmed their ratings following the Rs 88,139-crore capital infusion by government.The outlook on Allahabad Bank, Andhra Bank, Bank of Baroda, Bank of Maharashtra, Bank of India, Canara Bank, Central Bank, Corporation Bank, Dena Bank,  IDBI Bank, Indian Overseas Bank,  Oriental Bank, Punjab & Sind Bank, Punjab National Bank, Syndicate Bank, Uco Bank, Union Bank and United Bank have been revised upwards to stable now. The report, however is silent on SBI.
-Business Line

Honest borrowers will find it easier to get loans from PSBs following the reforms being undertaken, Financial Services Secretary Rajiv Kumar has said, asserting that there would be a premium on integrity.
-Indian Express 

Finance Ministry has asked PSBs to consider asset swaps, including exchange of their corporate portfolios and branches, to optimise nation-wide operations even as consolidation emerges as an option to revive the financial performance of the lending system. Banks may also swap same rated loans — both in corporate and retail segments — to obtain a more cohesive portfolio, a senior Finance Ministry  official said. The move is part of the reforms agenda — Enhanced Access and Service Excellence (EASE) — that seeks to limit the corporate exposure of PSBs at 25% of total risk-weighted assets.
-Economic Times 

SBI has decided to invoke personal and corporate guarantees of defaulting firms even when they face bankruptcy proceedings. Officials of the bank said that letters have been issued to all officers in charge of credit that they must immediately invoke the personal and corporate guarantees.
-Economic Times 

In what could be the biggest management buyout ever in India, a group of employees of Tata Teleservices Ltd (TTSL), led by Chief Ethics Officer, Tata Sons, has pitched for buying out the Tatas from the Co. The bid, understood to be a little over $1 billion, is backed by a consortium of PE investors led by bulge-bracket PE firm, TPG Capital, and includes a major pension fund, according to sources in TTSL who wished to remain anonymous. It is understood that fears of job losses prompted senior, long-serving employees of TTSL to band together to spearhead the offer.
-Business Line 

The labour ministry will begin a drive in April to register over 47 crore unorganised sector workers and provide them with Unorganised Worker Index Number or UWIN Card, bringing them under the social security net, according to an official source.
-The Statesman 

Employees union at Bajaj Auto's Chakan plant has threatened to go on an indefinite hunger strike  from Monday over the non-revision of wages. The Bajaj Auto management was to revise the 3-year wage agreement with its over 1,000 permanent employees at the Chakan plant in 2016 but it has still not moved on the issue, a union leader said today.
-Economic Times 

Thursday, January 25, 2018

Banking Current Affairs -- Capital Infusion for PSBs

India's stock of soured bank loans shrank slightly in the quarter to September last year, the first pullback since a drive to clean up record levels of bad debt began in 2015 and signalling that tighter rules and a new bankruptcy code may be starting to show results. Stressed loans - which include non-performing as well as restructured or rolled-over loans - eased 0.4% from 3 months earlier to Rs 9.46 lakh crore ($148.3 billion) at the end of September, according to unpublished central bank data reviewed by Reuters.
-Economic Times 

The RBI is understood to have declined government’s demand for the additional dividend reported. It was earlier reported that the central government has sought Rs 13,000 crore additional dividend from the RBI. In August, the RBI had paid a dividend of Rs 30,659 crore for the fiscal ended June 2017 which was less than half the Rs 65,876 crore it had paid in 2015-16.
-Financial Express 

The RBI has warned banks about cryptocurrencies, telling them to step up scrutiny of financial transactions by companies and exchanges involved in the trade of bitcoins and similar digital tender, said  people aware of the matter.
-Economic Times 

Usha Ananthasubramanian, MD & CEO, Allahabad Bank, has been elected as the first woman Chairman of Indian Banks' Association (IBA). Ms Usha was elected IBA Chairman for the year 2017-18 by its Managing Committee today. IBA Chairman's position was vacant following the superannuation of Jatinder Bir Singh, who was Chairman & MD of Punjab & Sind Bank, on December 31, 2017. Rajnish Kumar, Chairman, SBI was elected as Deputy Chairman of IBA for the year 2017-18.
-Business Line 

PSBs have kick-started the review of their overseas operations by identifying 41 units for "rationalisation" as part of the larger reform process, a top official said today. Rationalisation could be in terms of consolidation of operations, trimming of staff strength, exiting some of the non-core and non-profit activities or closing down some of unviable overseas offices. "Many banks entered the overseas markets. This activity has to be looked into. Banks have started the process already and about 41 operations they have decided to rationalise," Financial Services Secretary Rajiv Kumar told.
-Economic Times 

ICICI Bank predicts the nation's rate-cut cycle has ended and traders should brace for tightening in the coming months. "Reduction in the interest rate cycle has stopped now. We should be prepared for an increase over a period." CEO Chanda Kochhar  said.
-Economic Times 

The government’s Rs 88,139 -crore capital infusion in struggling PSBs should help in part to mitigate risks but resolution of bad assets and continued high credit costs hinder the sector’s near-term performance, Fitch Ratings said.
-Business Line

IMF chief Christine Lagarde today said the multilateral financial institution is looking into issues relating to crypto currencies to understand potential risks and benefits, even as the US made it clear it will not allow any illicit trade through this route.Speaking at a session on remaking of global finance at the World Economic Forum (WEF), US Treasury Secretary Steven Mnuchin said, "We will make sure cryptocurrencies  are not used for illicit activities."
-Moneycontrol.com

As per the recommendations of the council, for the  housing  sector, there will be less incidence of GST for homes purchased under the Credit Linked Subsidy Scheme (CLSS). For under-construction homes that form a part of CLSS will now be charged GST at 8% instead of 12%, a cut of 4%.
-Economic Times 

SBI Lifetoday announced the launch of a term policy with critical illness cover for 36 diseases. The critical illness cover increases as the term of the policy progresses over the years.
-Economic Times

LIC Mutual Fund has introduced a daily SIP scheme, a move which will help it achieve 30% growth in its SIP portfolio. Under the plan, LIC MF is offering investors the option to invest in SIPs with as low as Rs 300 per day which would be available in 5 equity schemes. These are LIC MF Equity Fund, LIC MF Growth Fund, LIC MF Midcap Fund, LIC MF Infrastructure Fund and LIC MF Index Fund.
-Business Line

The Ministry of Finance today said that  one crore taxpayers have been registered under total revenue collections under GST. GST so far till 24th Jan, 2018, and the collections for the month of Dec 2017 was at Rs. 86,703 crores, as on 24th Jan 2018. Further,  of the 1 crore taxpayers that have been registered under GST so far till 24th Jan, 2018 17. 11 lakh are Composition Dealers which are required to file returns every quarter.
-Financial Express 

Petrol and diesel prices rose to fresh levels in Delhi and other cities in the country on Thursday. Petrol prices in the national capital were at Rs 72.49 per litre- the highest in over three years, data from the  Indian Oil Corp showed. The previous record was Rs 72.51 in Aug 2014. Petrol price in Kolkata, Mumbai and Chennai was at Rs 75.19, Rs 80.39 and Rs 75.18 per litre respectively -- all 3-year highs.
-Economic Times 

sGold prices soared R 350 to trade at over 14-month high of Rs 31,450 per 10 gram, tracking a firm trend overseas amid pick-up in buying by local jewellers. Silver regained the Rs 41,000-mark by jumping Rs 1,100 on increased offtake by industrial units and coin makers.
-Business Line 

PSU bank stocks fell up to 7%  on profit-booking a day after the government said it will infuse Rs 88,139 crore capital in 20 PSBs before March 31. Shares of Punjab National Bank tanked 7.07%, Syndicate Bank 6.92%, Bank of Baroda 6.09%, SBI  4.96% and Oriental Bank of Commerce 4.83% on BSE.  SBI was the worst hit among the 30-Sensex constituents. Allahabad Bank fell 3.76%, Bank of Maharashtra 2.36%, Bank of India 2%, United Bank of India 1.11%, Central Bank of India 1%, Indian Overseas Bank 0.85% and Dena Bank 0.19%.
-Moneycontrol.com 

Latest news about Banking, Finance and Economy . Recap of Banks



🍒 Centre to infuse over Rs 88,000 cr in PSU banks this fiscal : The Centre on Wednesday announced that it would infuse over Rs 88,000 crore as capital in public sector banks this fiscal, including Rs 80,000 crore through recapitalisation bonds and Rs 8,139 crore as budgetary support. “This plan addresses the regulatory capital requirement of all PSBs and provides a significant amount towards growth capital for increasing lending to the economy,” said Finance Minister Arun Jaitley. Financial Services Secretary Rajeev Kumar said that banks would have to first accept and adopt the reforms package finalised by the Finance Ministry, which is aimed at six themes of customer responsiveness, responsible banking, credit offtake, PSBs as Udyami Mitra, deepening financial inclusion & digitalisation and developing personnel for brand PSB.-Business Line

🍒 Bank recap to be dependent on performance, reforms, says Finance Ministry official : Each PSU bank is an article of faith; regulatory capital of all banks will be maintained, says Financial Services Secretary Rajiv Kumar. umar says bank recapitalisation dependent on performance and reforms; loans above Rs 250 crore will undergo special monitoring. 65 cr first generation bank accounts will not have any minimum balance penalty, says Kumar. Recap plan: SBI to get Rs 8,800 crore; OBC Rs 3,571 crore; Dena Bank Rs 3,045 crore; Central Bank Rs 5,158 crore; IOB Rs 4,694crore; BoI Rs 9,232 crore; UCO Rs 6,507 crore. Punjab & Sind Bank to get Rs 785 crore; IDBI Bank s 10,610 crore; Canara Bank-Rs 4,865 crore; Union Bank Rs 4,524 crore; Syndicate Bank Rs 2,839 crore; BoM Rs 3,173 crore. - Business Line

🍒 Centre unveils details of bank recap plan :  India will ensure that all of its public sector banks are well capitalised, said Banking Secretary Rajeev Kumar on Wednesday, while unveiling details on the government's massive bank recapitalisation plan aimed at tackling record bad debt woes. The Union Government had this month sought Parliament approval for Rs 80,000 crore ($12.62 billion) that it plans to spend by March, as part of a two-year recapitalisation programme for its state-run banks to help them deal with bad debts and revive credit growth. This is part of a Rs 2.11 lakh crore recapitalisation plan announced last October. Of the total sum, Rs 1.35 lakh crore is planned to be raised through recapitalisation bonds, while the banks themselves will raise another Rs 58,000 crore from share sales. “Each public sector bank (PSB) is an article of faith. All PSBs will be adequately capitalised and enabled to serve people and support inclusive growth,” said Kumar, adding total capital injection including from the government's budget and share sales by banks will amount to over Rs 1 lakh crore ($15.70 billion) in the financial year ending March 2018. - Business Line

🍒 Government decision on IDBI Bank privatisation stands: Arun Jaitley :  Finance Minister Arun Jaitley today said the government decision on privatisation of IDBI Bank stands and it will be implemented at the right time.  "One of the objectives in supporting the non-PCA (Prompt Corrective Action) banks has been that these are the banks where robust lending has to take place so that they are able to support growth, lending and the economy itself," he said while unveiling banking sector reforms. For the PCA banks, he said, the principle objective appears to be that they maintain their regulatory capital and it has been the criterion followed for IDBI. "The original decision (on privatisation of IDBI Bank) stands. It's has not been reconsidered but there is always a time for implementing a decision," he said. - Economic Times

🍒 Capital infusion will help stressed banks to exit prompt corrective action : he generous capital given to stressed banks will help them wriggle out of the regulator's stifling prompt corrective action and brighten prospects of raising fresh funds with better ratings to clean their books, officials and analysts said. The government on Wednesday said that it would infuse Rs 88,139 crore in 20 state-owned lenders, including Rs 52,311 crore to banks that face restrictions from the Reserve Bank of India. "The fresh capital with government's support and fund raising through QIP will help in strengthening our balance sheet and give a boost to our core operations," said R Marathe, CEO of Bank of Maharashtra. "We have developed a business revival plan to improve asset quality and efficiency." - EconomicTimes

🍒 58% banks report rise in bad loans in July-December: Survey : The percentage of banks reporting a rise in non performing assets (NPAs) in July-December last year has reduced significantly, indicating stability in credit environment, according to a report.  The latest round of the Ficci-IBA survey drew responses from 19 public sector, private and foreign banks representing 59 per cent of the banking industry by asset size. According to the survey, 58 per cent of the respondent banks reported a rise in NPAs, significantly lower than 80 per cent in the previous round. Infrastructure, metals and engineering goods were key contributors to the bad debt. However, only 28 per cent banks reported a rise in the number of requests for restructuring of loans as compared to 40 per cent in the previous round. - Economic Times

🍒 Vijaya Bank Q3 net drops 65% to Rs 79.56 cr on higher provisioning : State-owned Vijaya Bank today reported a 65.45 per cent decline in net profit at Rs 79.56 crore for the third quarter ended on December 31, 2017, due to the rise in provisions. The bank had posted a net profit of Rs 230.28 crore in the October-December quarter of the 2016-17 fiscal. The bank’s total income also declined 7.09 per cent to Rs 3,450.81 crore in the quarter under review from Rs 3,714.37 crore in the same period a year ago, Vijaya Bank said in a BSE filing. During the quarter, Vijaya Bank’s provision (other than tax) and contingencies grew by 62.35 per cent to Rs 676.92 crore, as against Rs 416.95 crore in the year-ago period. The bank’s gross non-performing assets (NPAs) improved marginally to 6.17 per cent as against 6.98 per cent in the same quarter last fiscal. Net NPAs also came down to 3.99 per cent in the quarter under review compared to 4.74 per cent a year ago. Shares of Vijaya Bank were trading 0.87 per cent lower at Rs 68.45 on BSE. - Economic Times

🍒 Rs 800-bn recap bonds won't affect FY18 fiscal deficit target: FinMin : The finance ministry said on Wednesday that Rs 800 billion (Rs 80,000 crore) recapitalisation bonds, to be issued to public sector banks (PSBs) as part of Rs 2.11 trillion capital support over two years, will not have an impact on fiscal deficit as they will be cash neutral. These bonds will not have Statutory Liquidity Ratio (SLR) and have tenure of 10-15 years, Economic Affairs Secretary S C Garg said. SLR is a portion of deposits that banks need to invest in government securities. - Business Standard

🍒 Canara Bank Q3 net plunges 61% to Rs 1.26 bn due to higher NPA provisions : Canara Bank Limited net profit plunged 61 per cent to Rs 1.26 billion (Rs 126 crore) in its third quarter financial results ended December 31, 2017, due to higher provisions for Non Performing Assets (NPAs). The net profit stood at Rs 1.26 billion (Rs 126 crore) for the quarter ended December 31 compared with Rs 3.22 billion (Rs 322 crore) a year ago, the bank said. "The net profit has declined to 61 per cent, mainly because of an ageing provision on the treasury. Hence we had to make Rs 740 million (Rs 74 crore) provision on treasury bonds which affected the decline in profits," Canara Bank Limited Managing Director and CEO Rakesh Sharma told reporters. "However, it is only a provision. - Business Standard

🍒 Bankers: Government should make gold monetisation more attractive : The government should make the gold monetisation scheme (GMS) a more attractive business to tackle the widening trade deficit on account of increasing import of the precious metal by unlocking idle household gold in the country estimated at about 22,000 tonnes, said bankers and analysts. Banks should get interest subvention from the government for the scheme, they said. "Gold monetisation scheme is not a very lucrative business as of now," said Shekhar Bhandari, business head-global transactions and precious metals at Kotak Mahindra Bank.The government should make the gold monetisation scheme (GMS) a more attractive business to tackle the widening trade deficit on account of increasing import of the precious metal by unlocking idle household gold in the country estimated at about 22,000 tonnes, said bankers and analysts. Banks should get interest subvention from the government for the scheme, they said. "Gold monetisation scheme is not a very lucrative business as of now," said Shekhar Bhandari, business head-global transactions and precious metals at Kotak Mahindra Bank. - Economic Times

🍒 Raghuram Rajan says RBI’s monetary policy committee doing a good job : Former Reserve Bank of India (RBI) governor Raghuram Rajan gave a vote of confidence to the monetary policy committee (MPC) led by his successor, which has been facing criticism from some government advisers for keeping interest rates too high. Speaking to Bloomberg Television in Davos on Tuesday, Rajan said the six-member panel headed by Urjit Patel “is doing a good job” in focusing on inflation. Price targets are useful for countries that suffer from high inflationary pressures, he added. - Live Mint

🍒 PSBs day: SBI, PNB, IDBI Bank, BOB shares gain up to 6% as Jaitley details PSU bank recap plan : Almost all PSB (public sector bank) shares got a kick in the late afternoon trades on Wednesday as Finance Minister Arun Jaitley detailed about Rs 2.11 lakh crore PSU bank recapitalisation plan in a press conference today. Ahead of the presser, shares of prominent banks such as IDBI Bank, Punjab National Bank, State Bank of India, Bank of Baroda surged up to 6%. The benchmark Nifty PSU Bank index shot up 3.49% to conclude at 3,965.6 led by a rise in heavyweight shares India’s largest lender State bank of India, PNB and Bank of Baroda. The stock of SBI rose as much as 3.88% to finish at Rs 330.45 while the stock of IDBI Bank emerged as the biggest gainer out of the Nifty PSU Bank index components. The Finance Ministry on Wednesday tightened the noose on public sector banks (PSBs), saying that the massive Rs 2.11 lakh crore bank recapitalisation announced by the government will alongside reforms by the banks to ensure that the banking crisis does not get repeated. In October last year, the Union Cabinet approved an unprecedented Rs 2.11 lakh crore for recapitalisation of banks over the next two years in a bid to clean banks’ books and revive investment in a slowing economy.Finance Secretary Rajiv Kumar laid down 6-point reforms for the PSBs and said their performance will be under the annual assessment.  - Financial Express

🍒 Looking at new growth opportunities in Indian economy: ICICI : CICI Bank is looking at new areas of growth opportunities in the Indian economy as new areas are coming up to be tapped post demonetisation and introduction of GST, its chief Chanda Kochhar has said.  She said more SMEs are becoming part of the formal economy, creating big opportunities for growth and the government has also provided a strong impetus to increase lending to MSMEs.  "Further, as the resolution process progresses and government capex picks up, the investment climate will improve leading to private corporate investments eventually looking up. We will look to participate in this pick up as and when it happens," Kochhar told PTI in an interview here on the sidelines of the World Economic Forum. - Economic Times

🍒 Rupee strengthens to 63.63 on dollar selling, FII inflows : The rupee strengthened to 63.63 on increased selling of the US currency by banks and exporters amid forex inflows. Weakening of dollar against other currencies overseas also supported the rupee.

🍒 Gold rises to Rs 31,100; silver holds steady at Rs 39,900 : Gold prices rose Rs 25 to Rs 31,100 per ten gram on positive global cues and increased buying by local jewellers to meet the wedding season demand. On the other hand, silver held steady at Rs 39,900 per kg on scattered deals from industrial units and coin makers.