Facing an unprecedented crisis, India has ratcheted up its forex reserves like never before
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The country's foreign exchange reserves are at an all-time high of over $500 billion, according to data released by India's central bank on June 12.The strong forex pool provides stability in today's grim economic conditions. The rise of forexThe reasons behind the swelling forex reserves are India's shrinking import bill, an increase in foreign direct investments, improved inflows from foreign portfolio investors into the stock and debt markets, and the Reserve Bank of India's buying spree. "These assets, which are in other foreign currencies, are appreciating against the dollar and this too is pushing up the forex reserve valuations," he said. Friends with benefitsThe biggest beneficiary of strong forex reserves is the Indian currency. Pointing to 2013 when the Indian rupee depreciated by more than 20% in a span of just 4-6 weeks, Chari states that "The size of the forex reserves with respect to the current account deficit and portfolio flows becomes a key determinant of whether the currency can come under a speculative attack." Apart from protecting the rupee, large forex reserves act as an assurance to the world that India can meet its external obligations like payment for imports.
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As negotiations to finalise the long-overdue Regional Comprehensive Economic Partnership (RCEP) enter final stages, Prime Minister Modi said India has put forward reasonable proposals in a clear manner and is engaged in the talks with sincerity for the free trade deal. Modi said India is clear that a mutually beneficial RCEP, in which all sides gain reasonably, is in interests of the country and of all nations involved in the negotiation. -Business Line A day after SEBI put in place tighter disclosure norms, Indian Bank, Union Bank of India and Lakshmi Vilas Bank on Friday reported divergence in their bad loans for the last fiscal ended March 2019. For LVB, the net loss widened to Rs 1,006 crore from Rs 894 crore. -Economic Times The RBI has rejected a proposal by ICICI Bank for appointment of Sandeep Batra as an executive director (ED) after SEBI penalised him in a case related to merger of Bank of Rajasthan.“The Bank has received a communication from RBI not acceding to the request for appointment of Batra at present and to resubmit the proposal for approval after one year from the conclusion of settlement proceedings,” ICICI Bank said in a regulatory filing late on Friday night. -Business Line The RBI has refused to relent on its guidelines requiring chief executives of private banks to mandatorily retire at the age of 70, setting the stage for Aditya Puri to step down as HDFC Bank MD & CEO next October, while Romesh Sobti will retire as IndusInd Bank chief at the end of the financial year. -Economic Times PSBs are talking to the RBI under the aegis of the IBA to allow a staggered recognition of deferred tax assets (DTA) for FY20 in order to avoid taking large hits on their bottomlines. “We are assessing the matter and even the RBI and IBA are talking about it,” said an executive aware of the development. -Financial Express US Treasury Secretary Steven Mnuchin met RBI Governor Shaktikanta Das in the financial capital today. The two discussed “global and domestic macro-economic scenario in both countries and regulatory developments”, according to an official statement from the central bank. -Business Line The global investor which has submitted a binding bid to invest $1.2 billion in Yes Bank is a North American family office that is interested in picking up more than a third of the bank’s shareholding. “We have a nondisclosure agreement with the investor. The bank’s capital-raising committee could meet as early as next week to decide on the proposal and, should they approve it, the name will be made public,” said Yes Bank MD & CEO Ravneet Gill. -Economic Times Karur Vysya Bank has posted a 24.37% dip in its standalone net profit for the second quarter ended September 2019 to ₹63.33 crore compared with the corresponding year-ago period on higher provisioning. -The Hindu Lakshmi Vilas Bank, in a regulatory filing, said Non-Executive Non-Independent Director Anuradha Pradeep has resigned from the board. -Business Standard India’s GDP could grow 6.6% in 2020-24, lower than its 2013-17 average of 7.4%, the Organisation for Economic Co-operation and Development (OECD) said today. -Economic Times China's Fosun Tourism Group said it would acquire the Thomas Cook and related hotel brands for 11 million pounds in a bid to expand its presence in the tourism business. -Economic Times A 65 Year olddepositor of the scam-hit Punjab & Maharashtra Cooperative (PMC) Bank died due to a heart attack in neighboring Navi Mumbai, her family said. Kuldeep Kaur Vig (64) is the seventh PMC Bank depositor to have died after the alleged ₹4,355 crore scam at the bank came to light and the RBI imposed restrictions on withdrawal of funds. -Livemint NPCI on November 1 said the number of transactions of Unified Payments Interface (UPI) has crossed the landmark figure of 1 billion in October. "The total transactions of UPI jumped to 1.15 billion in October 2019 from 0.96 billion in September 2019," NPCI said in a release. Total transaction value of UPI stood at Rs 1.91 lakh crore during the month, up from Rs 1.61 lakh crore in the previous month. -Moneycontrol.com India's forex reserves increased by $1.832 billion to a new lifetime high of $442.583 billion in the week ended October 25, helped by a jump in core currency assets and value of gold, RBI data showed on November 1. The overall kitty had expanded by $1.04 billion to $440.751 billion in the previous reporting week. -Moneycontrol.com
The Central Government has been holding meetings with Asian Development Bank, World Bank, and German state-owned development bank KfW for access to low-cost capital to Indian MSMEs, according to MSME minister Nitin Gadkari. The comments gain significance as lack of capital is the biggest challenge for the growth of MSMEs. -Financial Express The RBI today asked banks to link all new floating-rate loans for housing, personal and MSMEs to external benchmark based interest rate from 1 Oct, in a bid to allow faster transmission of its rate cuts to consumers. It has been observed that due to various reasons, the transmission of policy rate changes to the lending rate of banks under the current MCLR framework has not been satisfactory, the RBI said in a statement. -Livemint PSBs can now create Chief General Manager (CGM) posts as per their business needs. The Department of Financial Services (DFS) in the Finance Ministry granted the flexibility to all nationalised banks. CGM posts (in a fresh scale termed as scale VIII) can be created (with Board approval) in nationalised banks that have total business of ₹10 lakh crore or higher, sources said. Such CGMs will act as an administrative and functional layer between the existing levels of General Manager and Executive Director. The number of CGM posts created should not exceed the ratio of 1:4 between the total number of posts of CGM and GM. -Budiness Line The RBI-constituted task-force on developing a vibrant secondary market for corporate loans has called for setting up a central loan contract registry to remove information asymmetries between buyers and sellers. The 6-member task force, headed by Canara Bank chairman TN Manoharan, was formed to examine the scope for developing a secondary market for corporate loans and make recommendations to facilitate rapid development of such a vibrant market. -Business Standard Global rating agency Moody's on September 4 upgraded the outlook on Punjab National Bank, which will merge OBC and United Bank of India with itself, to 'positive' from 'stable'. It also affirmed the local and foreign currency deposit ratings of Canara Bank, OBC, Syndicate Bank and Union Bank at Baa3/P-3. -Moneycontrol.com Canara Bank today said its board will meet next week to consider capital infusion of up to Rs 9,000 crore through issuance of preferential equity shares to the government of India. The board will also consider amalgamation of Syndicate Bank with it, the Bank said in a regulatory filing. -Moneycontrol.com HR integration will be the top priority in the merger of Syndicate Bank with Canara Bank and branch rationalisation would be looked at only after all aspects of integration are completek, . Syndicate Bank’s MD & CEO Mrutyunjay Mahapatra said. He saidthat the merger process will not slow down business. -Economic Times Canara Bank MD & CEO R A Sankara Narayanan, told that there would not be any loss of employment after merger. He had also confirmed that both the banks will stick to business projections and have a dedicated team to focus on integration without affecting normal business. -Economic Times LIC, that has seen its investment in IDBI Bank erode by more than half over the past year or so, has also seen the value of its investments in other PSU banks plunge. The sharp fall in the price of PSU bank stocks and dilution of its stake owing to capital infusion by the government, has eroded its wealth in these banks. LIC has lost over Rs 17,000 crore of its wealth in PSBs over the past year. Excluding IDBI Bank, it has lost over ₹4,800 crore in other PSBs. -Business Line ICICI Bank has cut its lending rates by 0.10% across all maturities, sources said on Sep 4. Under the revised rates, effective Sep 1, the bank's 1-year MCLR will come down to 8.55%, while the overnight MCLR will be 8.30%. -Moneycontrol.com Bank of Baroda will raise up to Rs 1,132.05 crore by issuing fresh shares to its staff under the Employee Share Purchase Scheme (ESPS), the bank said. Bank of Baroda will raise up to Rs 1,132.05 crore by issuing fresh shares to its staff under the ESPS, the bank said. The decision was taken by the compensation committee of the board at its meeting held on Tuesday, the bank said in a regulatory filing. decision was taken by the compensation committee of the board at its meeting held on Tuesday, the bank said in a regulatory filing. -Moneycontrol.com YES Bank has settled a case pertaining to ‘selective disclosure’ of assets quality with market regulator SEBI. The Bank settled the matter under the so-called consent mechanism paying Rs 51.6 lakh as settlement charges. Yes Bank’s compliance officer Shivanand Shettigar paid another Rs 14.45 lakh as settlement charges in the same matter. -Business Standard Wipro has received a long-term $300 million contract from ICICI Bank to provide digital technology led services. The Co said in a filing to the BSE that it has secured a strategic 7-year engagement from the bank. -Economic Times Digital payments saw significant growth in August, with the Unified Payments Interface (UPI) and IMPS touching record highs in terms of both volumes and number of transactions, while payments on BHIM also rose to a 10-month high. -Business Line Rating agency CRISIL today cut India’s fiscal year 2020 GDP growthforecast to 6.3% from its earlier forecast of 6.9%, after the economy grew 5% in the first quarter, it’s slowest in almost 6 years. The agency said that lower GDP growth forecast corroborates that India’s economic slowdown is deeper and more broad-based than suspected. -Economic Times Even as gross NPA are expected to come down marginally by end of ongoing fiscal, assets over Rs 1 lakh crore that are under pressure are still to be recognised as bad loans, a report by ASSOCHAM- CRISIL said. -Financial Express BSNL is monetising land assets to improve revenue while cutting operational costs in the absence of revival package from the government, according to chairman Pravin Kumar Purwar. The telco is looking at cutting its workforce by nearly half once the Centre approves its much-awaited voluntary retirement scheme, Purwar told. -Economic Times Rising gold prices have prompted the RBI to apply the brakes to its purchase of the metal as a forex reserve asset. After the last offtake of 5.6 tonnes this April, the apex bank has not made any fresh purchases. According to the data from the International Monetary Fund's International Financial Statistics (IFS), RBI has been holding 618 tonnes of gold as part of its forex reserves since April this year. -Business Standard USD/INR 72.12 SENSEX 36724.74(+161.83) NIFTY50 10844.65(+46.75)
Indian consumers appear to show zero loss of appetite for cash despite Government’s numerous efforts to wean them away from currency notes and get them to transact digitally. Currency in circulation in India in the fortnight to July 5 was Rs 21.1 lakh crore, as against Rs 18.7 lakh crore in the same period last year, translating into growth of 13%. -Economic Times Finance Minister Nirmala Sitharaman today said Government has de-registered 4 lakh shell companies as the Lok Sabha approved a bill seeking to tighten CSR norms and ensuring stricter action for non- compliance of the Co law regulations. Piloting the Companies Amendment Bill 2019, the minister said companies not spending the mandatory 2% profit on Corporate Social Responsibility (CSR) activites for a total period of 4 years will be required to deposit the amount in a special account. -Economic Times RBI Governor Shaktikanta Das has expressed concerns over the impact of stressed trade negotiations and rising geopolitical tensions on global economy while backed the building up of forex reserves by emerging economies as safe-guard against global contagion. -Economic Times Punjab National Bank today reported a net profit of Rs 1,019 crore as compared to a net loss of Rs 940 crore recorded in the same quarter last fiscal. -Business Line The New Delhi-based agri services solutions firm Sohan Lal Commodity Management (P) Ltd said today that it entered into an agreement with SBI for collateral management and warehousing services. As part of the pact, SLCM will act as custodian of the commodities that SBI has taken as a security against loans, said a press statement. -Business Line The South Indian Bank has achieved a net profit of ₹73.26 crore in Q1 of FY19, against ₹23.04 crore during the corresponding period of the previous year. The bank’s operating profit has also grown to ₹317.63 crore from ₹269.64 crore. -Business Line The Mumbai bench of the NCLT, on Thursday, put a stay on its own order which had allowed the government’s plea to prosecute IL&FS’ erstwhile auditor, Deloitte. -Business Line Union Home Minister Amit Shah received a dividend cheque of Rs 15.26 crore from the representatives of the Repco Bank, a multi state cooperative finance and development bank controlled by the Home Ministry. The Repco Bank is a multi state cooperative society established in 1969 by the Central Government for rehabilitation of repatriates from Myanmar and Sri Lanka, an official statement said. -Economic Times Indian authorities are concerned that WhatsApp’s payment service might share user data with group companies Facebook & Instagram, compromising the security, privacy and non-commercial information of its subscribers. The Government has asked the NPCI to look into the matter and ensure that user data collected through payment services such as WhatsApp and Google Pay is not shared, top officials said. -Economic Times Muthoot Finance has halted gold loan processing and disbursal in several branches for about 3 days from Thursday. The NBFC did not respond to a query on the likely impact of the halt in gold loan disbursal on its business. It may be noted that the RBI had said earlier this week that it was seeing ‘signs of fragility’ and that it was constantly watching 50 NBFCs, including large ones. -Business Line USD/INR 68.89 SENSEX 37882.79 (+51.81) NIFTY50 11284.30(+32.15)
MPs, state legislatures, or local bodies such as municipal corporations cannot be on the boards of public sector banks. Also, partners of chartered accountancy firms engaged as statutory central auditors at any PSB cannot join the boards of these banks, RBI said in an updated circular on fit and proper criteria in PSBs. -Economic Times The RBI clarified that banks and NBFCs cannot impose foreclosure charges / pre-payment penalties on any floating rate term loan sanctioned, for purposes other than business, to individual borrowers with or without co-obligant(s). The RBI has done away with foreclosure charges /pre-payment penalties on all floating rate term loans sanctioned to individual borrowers with effect from May 7, 2014. -Business Line IMPS is gaining traction and the number of transactions rose to 19 crores in July even as the transaction value for UPI and the Centre’s flagship digital payment app BHIM continued to decline for the second straight month. According to data released by the NPCI, IMPS hit a record high in July in terms of value, too. As many as 18.92 crore transactions amounting to over ₹1.82-lakh crore were conducted through IMPS in July against 17.13 crore transactions worth over ₹1.73-lakh crore in June. -Business Line Clearcorp Dealing Systems India Ltd (Clearcorp), a wholly owned subsidiary of Clearing Corporation of India Ltd, will launch its forex trading platform, FX-Retail, for the customers of banks on Aug 5. The FX-Retail platform will provide an anonymous and order driven dealing in US Dollar (USD) / Indian Rupee (INR) currency pair for bank customers -- individuals, sole proprietorship firms, partnership firms and corporates, Clearcorp said in a statement. -Business Line Corporation Bank registered a net profit of ₹103.27 crore in the first quarter of 2019-20 as against a profit of ₹84.96 crore in the corresponding period of the previous fiscal, recording a growth of 21.55%. -Business Line SBI today said the RBI has imposed a penalty of Rs 50 lakh on it for non-compliance relating to reporting of frauds. -Economic Times Oriental Bank of Commerce & Punjab National Bank today said the RBI has imposed a penalty of Rs 50 lakhs on them for non-compliance relating to reporting of frauds in the Kingfisher Airlines account. -Economic Times Bandhan Bank would open 187 new branches by the end of the current FY, taking the total number to 1,187, a top official said today. The bank would also open 340 doorstep service centres by 2019-20, MD & CEO Chandra Sekhar Ghosh said. -Economic Times Punjab & Sind Bank said it has declared NPA account Fairdeal Supplies Ltd as a fraud and has reported the matter to the RBI, it said in a regulatory filing. -Economic Times LIC Housing Finance reported an 8% increase in standalone net profit at ₹611 crore in the first quarter (Q1FY20) against ₹568 crore in the year-ago period. -Business Line Former RBI Governor Duvvuri Subbarao on Friday said that any government trying to “raid” the balance sheet of a central bank can be seen as a desperate move. -Business Line A spate of reforms undertaken by the Government has led to the current slowdown in the country, Amitabh Kant, the CEO of policy think-tank NITI Aayog, said. This came as a note of caution from the senior official as he was advocating a series of policy decisions to revive the economy. -The Hindu The country's forex reserves decreased by $727 million to $429.649 billion for the week ended July 26, led by a decline in foreign currency assets, RBI data showed on Friday. -Moneycontrol.com As the Rajya Sabha passed the Code on Wages, 12 Central Trade Unions, except the BMS, held protest across the country demanding the Centre to withdraw the proposed Labour Codes. Terming the 4 proposed codes anti-labour, the trade unions alleged that the Bills are being passed without any tripartite negotiations with trade unions, chambers of commerce and the Governments. They alleged that there is a conspiracy to take away the right to work for 8 hours and give the power to the State governments and the Centre to set working hours. -Business Line
In a bid to deal with stress in NBFC sector, guidelines will be issued soon for PSBs to take over pooled assets of NBFCs, a finance ministry official said. "Both Department of Economic Affairs, and Financial Services are in consultation. The eligibility norms for takeover should be out this week or latest by next week," the official said.
The RBI will come out with a mobile application to help visually challenged people in identifying currency notes. The RBI said that identification of banknote denomination is key to successful completion of cash-based transactions by visually impaired persons. -Business Line SBI Payment Services Pvt Ltd (SBIPSPL) is planning to double the number of point-of-sale (PoS) units deployed by it to 1.2 million by 2021- 22 (FY 22). This is part of the Co’s strategy to be a key player in the Centre’s ambitious plan to increase the number of PoS terminals across the country. -Business Standard Led by LIC, life insurers’ collective new premium income jumped 94% to ₹32,241.33 crore in June this year, according to data from IRDAI. All the 24 life insurers had written new gross premium of ₹16,611.57 in the same month a year ago. -Business Line Dewan Housing Finance Corporation Ltd (DHFL) reported a huge standalone net loss of Rs 2223 crore in the fourth quarter ended March 31, 2019 against a net profit of Rs 134 crore in the year ago quarter. -Business Line Dewan Housing Finance Corp Ltd (DHFL), warned that its financial situation was so grim that it may not survive. The Co said it was "undergoing substantial financial stress" and its ability to raise funds was "substantially impaired and the business has been brought to a standstill with there being minimal/virtually no disbursements." -Economic Times Thomas Cook has refuted allegations that an investigation is underway concerning its forex business breaching the Rs 14.7 crore foreign exchange reserve mark at the Cochin International Airport. As per media reports, the Air Customs Intelligence department had initiated an enquiry against Thomas Cook and had written to the RBI demanding cancellation of the Co's license after an alleged 'misappropriation' occurred while granting foreign exchange to foreign nationals at the Cochin International Airport. -Economic Times 9 of the 10 most valued firms suffered a combined erosion of ₹ 88,609.87 crore in market valuation last week, with HDFC Bank and TCS taking the biggest knock. Reliance Industries Ltd was the lone gainer among the top-10 frontline companies, adding ₹ 11,415.21 crore to its market capitalisation (m-cap) for the week ended Friday to reach ₹ 8,11,782.20 crore. On the other hand, HDFC Bank’s valuation plummeted ₹ 22,395.4 crore to ₹ 6,54,084.95 crore. The valuation of SBI tanked ₹ 6,291.85 crore to ₹ 3,24,454.25 crore and that of ICICI Bank dropped ₹ 5,925.68 crore to ₹ 2,75,568.83 crore. -Business Line
According to the IBA, the NPA in the education vertical jumped to 8.97% in March 2018 vis-a-vis 7.29% in March 2016. The bad loans of PSB in the education sector stood at 5.70% in March 2015. -Business Standard To boost volumes for its payments business, India Post Payments Bank is demonstrating its last-mile reach through its massive network of access points so as to become the preferred banking partner for various subsidy transfers of central and state government schemes. The differentiated bank will soon also start cross-selling financial products such as mutual funds and insurance. -NDTV Maruti Suzuki India today said it has joined hands with Bank of Baroda to support dealer inventory financing and customer auto loans. The Co has signed a MOU with Bank of Baroda, under which the bank will become a preferred financier, Maruti Suzuki India (MSI) said in a statement. -Economic Times Indiabulls Housing Finance today said the Competition Commission of India (CCI) has approved the proposed merger of the Co with Lakshmi Vilas Bank. In April this year, Lakshmi Vilas Bank had announced its merger with Indiabulls Housing Finance in a share-swap deal with an intent to create a combined entity with larger capital base and wider geographical reach. -Economic Times While global banks have been pouring money into information technology -- to the tune of $1 trillion over 3 years -- only a handful appear to be fully committed to a digital transformation and are therefore reaping the benefits, according to an Accenture Plc study. -Business Line The all-powerful GST Council today extended the tenure of the anti-profiteering authority by 2 years and approved imposing a penalty of up to 10% on entities not passing on benefits of GST rate cuts to consumers. Briefing reporters after the 35th meeting of the Council, Revenue Secretary A B Pandey said it has been decided to allow the use of Aadhaar by businesses to register with GST-Network. -Economic Times India exported goods worth $6.3 billion to the United States in 2018 under their export incentive programme, Parliament was informed today. The US has rolled back incentives under its Generalised System of Preferences (GSP) programme from June 5. -Business Line India’s Forex reserves declined by $1.358 billion to $422.2 billion in the week to June 14 due to fall in foreign currency assets, RBI data showed. Forex reserves had increased by $ 1.686 billion to $423.554 billion in the previous reporting week. -Business Line The rupee dived 14 paise to close at 69.58 against the US dollar today, pressured by firming crude oil prices amid intensifying geopolitical tensions in the Gulf region. A broad sell-off in the domestic equity markets also kept sentiment at a low ebb, forex traders said. -Economic Times The Centre has asked banks, PSUs and all its departments to review service records of employees working under them to weed out corrupt and non-performing ones. The Personnel Ministry has written to secretaries of all central government departments asking them to carry out the review of all categories of employees in "letter and spirit" and to ensure that decision to retire a public servant is not "arbitrary". -Livemint USD/INR 69.56 SENSEX 39194.49(-407.14) NIFTY50 11724.10(-107.65)
Finance Minister Nirmala Sitharaman today said the NBFC crisis seems to have bottomed out and the Government along with the RBI will closely monitor the situation to ensure that the sector comes out of the wood. -Economic Times In fresh trouble for Nirav Modi, the Pune bench of the debt recovery tribunal (DRT) has issued a recovery certificate and has directed the Nirav Modi to pay over Rs 7,200 crore to Punjab National Bank (PNB) and others. Today, the Pune bench of DRT, which also holds additional charge of Mumbai, passed an order in two cases filed by PNB. The presiding officer, Deepak Thakkar, has allowed the petitions filed by the PNB. -Economic Times Punjab National Bank said today it has detected a fraud of more than Rs 3,800 crore by Bhushan Power & Steel Ltd (BPSL) and has reported it to the RBI. PNB said Bhushan Power & Steel Ltd misappropriated bank funds and manipulated its books of accounts to raise funds from consortium lender banks. -Economic Times India’s foreign exchange (forex) reserves swelled by $1.262 billion to scale a fresh high of $427.678 billion in the week to June 28, boosted by higher foreign portfolio investments and a stable rupee, RBI data showed. -Business Line Acting quickly on the government's second attempt to sell the financially-crippled Air India, its chief Ashwani Lohani has called a meeting of all the 13 unions Monday to discuss the terms of privatisation, according to sources. -Economic Times
Department of Financial Services (DFS) has informed that RBI is examining the priority sector lending norms for promoting export credit, Commerce and Industry Minister Piyush Goyal said. -Economic Times The Finance Ministry today said that it will look into the applicability of 20% tax proposed in the 2019-20 Budget on the current share buybacks by listed companies. Finance Secretary Subhash Chandra Garg, speaking at a CII event, said the proposed tax on listed companies is aimed at discouraging share buybacks and encouraging investments. -Economic Times The Indian Government had Rs 66,793 crore outstanding loans with the RBI under ways and means advances in the week ended July 5, according to the RBI weekly statistical supplement released today. The Central Government had Rs 6,596 crore outstanding loans in the week earlier. State governments had Rs 5,566 crore loans from the RBI in the week ended July 5, compared with Rs 1,661 crore in the previous week, the release showed. -Economic Times Even as the real estate industry complains of a slowdown in sales, a RBI survey has said that housing has become less affordable over the last 4 years. This indicates that developers are holding on to prices. -Economic Times NABARD today said it plans to raise about Rs 55,000 crore from the market in the current fiscal to fund its business growth and also support various agricultural and rural development schemes of the Government. -Business Line After the merger of Bank of Baroda with Dena Bank and Vijaya Bank, the amalgamated lender is focusing on integrating the sprawling technology systems of the 3 financial firms to provide a smooth customer experience. The IT heads of the 3 banks, which together have over 9,500 branches, began chalking out an integration strategy the moment the deal was announced. They, however, had some time before the required slew of approvals came in for the three-way merger. -Economic Times The Asian Infrastructure and Investment Bank will launch local currency financing products in India and some other countries this year to provide more options to borrowers, its president Jin Liqun has said. The multilateral development bank could start rolling out the product in pilot countries including India, Indonesia, Thailand and Russia from this month itself. It would focus on private sector clients, Jin said. -Economic Times SBI has waived charges on NEFT and RTGS transactions through internet and mobile banking from July 1, after the RBI decided to do away with the charges with an aim to move the country towards less-cash economy. The SBI has also decided to do away with the charges on fund transfer through mobile phones using the IMPS (immediate payment service) from August 1. -Business Line IndusInd Bank today reported a 38.30% year-on-year jump in consolidated profit at Rs 1,432.50 crore for the June quarter. The bank had reported a net of Rs 1,035.72 crore in the year ago period. -Economic Times UCO Bank is making all efforts to ensure that exporters who do business with Iran can approach its designated branches for help. The bank has increased the number of such designated branches (for doing business with Iran) from 22 to 67. It is now contemplating to set up an apex processing centre across its branch network to help exporters. “This could take another 6-7 months,” a top bank official said. -Business Line YES Bank as an issuing and paying agent, facilitated the issuance of a Commercial Paper of INR 100 Crores using Blockchain technology for Vedanta LTD, a natural resources conglomerate. This is the first time in Asia that a CP has been digitally issued using Blockchain technology. -Moneycontrol.com Axis Bank tied up with. Flipkart to launch a co-branded credit card and is aiming to sell 1 million of the new card in a year. The new co-branded card comes weeks after American lender CITI launched a similar offering by tying up with payments major Paytm. -Economic Times India’s industrial output growth slipped to 3.1% in May mainly on account of subdued performance of mining and manufacturing sector, according to Government data released today. The Index of Industrial Production (IIP) had expanded by 3.8% in May 2018. The index grew at 4.3% in April and 0.4% in March this year. -Business Line Retail inflation increased marginally to 3.18% in June over the previous month, mainly due to rise in food prices, according to official data. The retail inflation based on the Consumer Price Index (CPI) stood at 3.05% in May and and 4.92% in June 2018. -Business Line India's foreign exchange reserves rose to fresh record high of $429.91 billion as the country's gold and foreign currency assets increased in the week ended July 5. The forex reserves had touched record highs in the previous two weeks. -Moneycontrol.com The Government may approach the Ministry of Law and Justice for clarification on monitoring of the recently privatised IDBI Bank. The LIC in January 2019 acquired a 51% stake in the Bank, which reclassified it as a private sector financial institution. -Moneycontrol.com The NCLAT today said pension and PF that had invested in IL&FS would have top priority in payment from all categories of companies, whether classified as green, amber or red. -Business Standard Infosys today reported 5.2% growth in consolidated net profit to Rs 3,802 crore for the quarter ended June 30, 2019. It had posted a net profit of Rs 3,612 crore in the April-June 2018 quarter, Infosys said in a BSE filing. -Business Line USD/INR 68.68 SENSEX 38736.23(-86.88) NIFTY50 11552.50(-30.40)
The Government has no proposal to increase the amount provided under the Pradhan Mantri Awaas Yojana, the Minister for Rural Development Narinder Singh Tomar informed the Rajya Sabha today. -Economic Times India’s financial system remains stable against the backdrop of improving resilience of the banking sector, even though the emerging trends in global economic as also geopolitical environment pose challenges, the RBI said. -Business Line The RBI is reviewing its master direction on frauds and considering additional measures for timely recognition of frauds and enforcement action against violations, it said in its financial stability report (FSR). -Livemint The RBI today set an average base rate of 9.18% for non-banking financial companies and micro finance institutions to be charged from their customers for the quarter beginning July 1. “The applicable average base rate to be charged by non-banking financial companies and micro finance institutions (NBFC-MFIs) to their borrowers for the quarter beginning July 1, 2019 will be 9.18%,” RBI said in a release. -Business Line In a staggering revelation indicating that Indian banks have been under-reporting frauds. The Data released by the RBI in its latest edition of the Financial Stability Report, suggests that nearly 40% of the under-reported frauds actually took place in 3 years between 2013 to 2016. -Economic Times Gross NPAs of NBFCs have risen from 5.8% in 2017-18 to 6.6% of their loans in 2018-19 even as net NPAs declined by 10 basis points from 3.8 to 3.7 per cent in the same period, the RBI’s Financial Stability Report has said. -Business Standard After taking a hit on account of loans to IL&Fs, Bandhan Bank will stay away from big corporate loans, and will remain focused on micro-loans in the short term, C S Ghosh, MD & CEO of the bank said. -Business Standard IndusInd Bank has now become 2.58% owner of micro -finance firm Satin Creditcare following allotment of 13.43 lakh equities against preference shares. -Economic Times United Bank of India (UBI) is targeting an NPA recovery of around Rs 4,000 crore in the 2019-20 fiscal on the back of a one-time settlement (OTS) scheme, a top official said. In the April-June quarter, the bank is expecting a recovery of Rs 300-400 crore, which would mainly accrue from the retailing sector, MD and CEO Ashok Kumar Pradhan said. -Business Line As per latest NPCI data, 33.5 million transactions worth Rs 9,000 crore happened over micro ATMs in May. The Aadhar-Enabled Payments Channel (AEPS), which falls under the broader category of micro-ATMs, has emerged as one of the fastest growing payments systems in the country, second only to the UPI system in terms of annual volume growth. -Economic Times The SBI today revealed the names of 10 new big-ticket firms from the pharmaceuticals, gems and jewellery and power sectors and also their top officials as it declared them 'wilful defaulters'. Mostly based in Mumbai, the outstandings from these loan defaulters are pegged at nearly 1,500 crore, and they have been served repeated reminders to clear their borrowings. -Livemint Bank of Maharashtra said it will raise up to Rs 3,000 crore equity capital through various modes, including follow-on public offer or preferential issuance of shares. The decision was taken at the bank's annual general meeting held on June 27, 2019. -Moneycontrol.com SIDBI has committed Rs 3,123.2 crore to 49 SEBI registered Alternative Investment Funds (AIFs), who in turn have invested Rs 1,625.73 crore into 247 startups, commerce and industry minister Piyush Goyal said today. -Economic Times In a first-of-its-kind initiative, a Jet Airways Employee Consortium and AdiGroup today announced a partnership to bid for 75% of the airline through the NCLT process, members of the consortium said. -Economic Times Union Minister for MSME Nitin Gadkari said that his vision is to increase MSMEs contribution to India’s GDP to over 50% from the current 29% and that for the Indian economy to scale the $5 trillion mark. -Economic Times PM Modi and US President Donald Trump Friday "aired" their concerns over the bilateral trade disputes and agreed for an early meeting of their commerce ministers to sort out the issues, a day after the US leader demanded withdrawal of the "very high" tariffs levied by India on American goods. -Economic Times India has received USD 1.81 billion FDI from China during April 2014 to March 2019, Parliament was informed Friday. -Economic Times India's foreign exchange reserve touched a life-time high of $426.42 billion after it surged by $4.215 billion in the week to June 21, RBI data showed. Forex reserves had scaled a record high of $426.028 billion in the week to April 13, 2018. -Livemint USD/INR 69.02 SENSEX 39394.64(-191.77) NIFTY50 11788.85(-52.70)
I have his approval to mirror his Twitter threads on Reddit.
James has retweeted a link to this post.
Links to reddit posts are easier to share when compared to twitter threads.
I'd quoted a specific tweet of his - to give him credit. It was taken down by mods stating that his Twitter account was unverified and I needed to remove the link to his tweet. Anyway, the intent was to share the fact-based rebuttal to the govt narrative.
If you have any queries related to this post, please address them directly to James Wilson on twitter.
The Centre Government has nominated 7 directors, commonly referred as RBI directors, to the Boards of various PSBs. The nominees are R Kesavan in Canara Bank (in place of Ms Uma Shankar), S.C.Murmu in Bank of India (in place of R Sebastian), Arun Kumar Singh in Union Bank of India (in place of A.K.Misra), Thomas Mathew in Central Bank of India (in place of Sekhar Bhatnagar), G.P.Borah in Syndicate Bank (in place of R N Kar), S K Panigrahy in Indian Bank (in place of J K Dash) and Sadhana Varma in United Bank of India (in place of Arnab Roy). -Business Line The RBI will shortly issue new "greenish yellow" Rs 20 currency notes in the Mahatma Gandhi (New) series, the central bank said in a notification dated April 26. The new Rs 20 notes will bear signature of the Reserve Bank's governor Shaktikanta Das. -Economic Times 5 years after its launch, the Pradhan Mantri Jan Dhan Yojana (PMJDY) scheme has almost achieved a total balance of ₹1-lakh crore.According to the latest data, the total balance in these basic bank accounts stood at ₹99,752 crore with 35.50 crore beneficiaries. PSBs have the lion’s share in total balance at ₹79,177 crore, followed by RRBs and private sector banks maintaining ₹17,648 crore and ₹2,926 crore, respectively. -Business Line Bank of Baroda is going in for organisation structure revamp to improve the overall efficiency of operations and have better control and monitoring mechanisms in the combined entity. For this purpose, this bank—which now in all has 9447 branches—-has decided to introduce a new layer in the organisational hierarchy by creating a position of General Manager—-Chief Coordination. -Business Line Liquidity conditions could remain tight till the end of May even though the RBI has conducted 2 forex swap auctions in a month, according to the SBI’s Ecowrap report. It has pegged a liquidity deficit of ₹75,000 crore to ₹1-lakh crore at least till the end of the general elections. -Business Line The National Commission for Protection of Child Rights has written to the chief secretaries of all states and Union Territories asking them to stop the sale of Johnson & Johnson baby shampoo in their respective states and also remove the product from stock of the shops in view of the findings of the sample testing report from the Rajasthan Drug Control Officer. -Economic Times
The RBI asked banks to ensure their ATMs are grouted to a wall, pillar, or floor by Sep-end, except those installed in high secured premises such as airports, to enhance security of the cash vending machines. In 2016, the RBI had set up a Committee on Currency Movement (CCM) to review the entire gamut of security of treasure in transit. Based on the recommendations of the panel, the RBI has now issued the instructions aimed at mitigating risks in ATM operations and enhancing security. -Economic Times The RBI has promoted Rabi N Mishra as the central bank’s executive director, after the position fell vacant on Rosemary Sebastian’s retirement, sources said. Mishra was principal chief general manager of the bank’s risk management department. As ED, Mishra would be looking after the newly-created specialised supervisory and regulatory cadre within the RBI. -Business Standard The National Financial Reporting Authority (NFRA), the newly created regulator for auditors, has begun full-fledged investigations into the audit failure at IL&FS after taking over the job from the Institute of Chartered Accountants of India (ICAI) in April this year. -Economic Times The Anti-Corruption Bureau has registered a case against the city's Deputy Mayor Sheikh Imran and officials of the Jammu and Kashmir Bank for alleged illegal appropriation of crores of rupees from the state exchequer, a spokesman said today. -Moneycontrol.com India’s goods exports grew 3.93% to $29.99 billion in May (year-on-year) following a growth in many key sectors such as engineering goods, iron ore and leather products, even as shipments of gems & jewellery and petroleum products declined. Imports were 7.76% higher at $45.35 billion during the month widening the trade deficit to $15.36 billion, compared to $14.62 billion in the same month last year. Gold imports in May posted an increase of 37.43% to $4.78 billion. -Business Line Inching closer to its historic peak, India’s forex kitty increased by $1.68 billion to $423.55 billion for the week to June 7, RBI data showed on Friday. The foreign exchange reserves had increased by $1.87 billion to $421.86 billion in the previous reporting week. -Business Line The rate of interest on SB deposits needs to be revised upwards by at least 2% and interest on fixed deposits should be exempted from the purview of income tax, according to suggestions made by the AIBEA to the Finance Minister. The association said banks should extend agriculture loan at the rate of 2% per annum. Further, they should extend education loan at concessional rate of interest of 5% to the poorer sections, with interest subvention. -Business Line
CLSA: Greed & Fear : Modi and Banking Amendments [NP]
Chris Wood of CLSA is one of the most revered Equity Strategist. He periodically writes 'GREED & FEAR' series explaining his views and strategies. He usually meets the policymakers, CEOs and sector experts before forming his opinions on each country and the market. This is a txt copy of the latest edition. CLSA: GREED & FEAR : MODI AND BANKING AMENDMENTS - 11th May 2017 GREED & fear’s base case for 2017, namely for global equity investors to be overweight global emerging markets and the Eurozone, has been strengthened by Emmanuel Macron’s victory. Macron’s victory will have further encouraged hopes of a re-energised Franco-German alliance at the heart of the Eurozone and related hopes of a renewed drive towards integration. Whether such hopes prove to be a reality is quite another matter. But for the moment they can propel European equities higher in the run up to the German election where GREED & fear’s base case remains a Merkel victory. GREED & fear also remains constructive on the euro since the base case must be that Derivative Draghi will signal some increase in token tapering at the next ECB monetary policy meeting on 8 June. As for the US, renewed hopes that the Trump administration will be able to pass reform of Obamacare are again encouraging expectations that tax reform can be passed more quickly than previously anticipated. This remains extremely optimistic from GREED & fear’s standpoint, with the major uncertainty whether Republicans in Congress will insist on the package being revenue neutral. But for now such hopes may keep the 10-year Treasury bond yield above 2.3% and therefore equities reasonably constructive. Yet if such hopes of near-term tax cuts are dashed, GREED & fear’s view remains that the yield curve is vulnerable to renewed flattening given that the evidence remains that the downside risk to economic growth in America are rising not falling. More tightening by the Fed, let alone the commencement of balance sheet contraction, increases the risk for US equities and strengthens the case to be long Treasury bonds absent aggressive tax cuts. It also increases the argument to be underweight American equities in a global portfolio. It is a reality of market sentiment that the China reflation trade is currently being questioned. GREED & fear’s base case is that the bulk of the correction in commodities is over, be it in copper, iron ore and other China reflation trade proxies. Still GREED & fear is much less sanguine on oil where hopes of keeping oil above US$50 rest on OPEC being able to agree on an extension of the current production agreement at its forthcoming meeting scheduled for 25 May. In the absence of such a deal, oil looks vulnerable.There is now a following wind in Europe until the German federal election in September where investors currently anticipate a positive result. The issue will then become whether a Eurozone with a Merkel-Macron leadership or, less likely, a Macron-Schulz leadership, will really push for renewed integration on a presumed path to fiscal union. For that is what will be required in GREED & fear’s view to keep Italy in the Eurozone. If Asia and emerging markets remain an overweight forGREED & fear, India also remains the most preferred equity story in the emerging market universe on a ten-year view. This long-term constructive view has been strengthened by evidence that the Modi government is showing a renewed focus to address the asset quality problem in the banking sector. The key development on the bad loan problem was the publication late last week of an ordinance amending the Banking Regulation Act. The key purpose of this amendment is to empower the Reserve Bank of India to intervene in specific cases of default as well as to give the central bank the authority to require specific defaults to be sent to the insolvency court if lenders and borrowers cannot reach resolution.The other aim of this amendment is to remove a concern shared by all bankers that, if they agree to a haircut on a specific loan, they will be at risk of future investigation by the judiciary or an investigative agency. It is the reluctance of the banks to take haircuts which has been the key cause of India’s long festering banking problem.The lack of progress addressing this legacy problem in the banking sector is the main reason why India is still seeing no evidence of a renewed private sector-driven investment cycle. While there have, in GREED & fear’s view, been enormous achievements in other areas of policy, the missing link is the banking sector with the bulk of the problem lying in the state-owned banks.The new approach requires the RBI to execute proactively on its new powers. The good news is that the RBI’s technocratic approach means that its management of the NPA problem will be less politicised than if handled by other government agencies. The word in Delhi is that the RBI will come out with clear guidelines in the near future on how this process will work.There is naturally much scepticism as to whether resolutions of bad debt cases will happen given the previous failure to address the NPA problem. Still, in GREED & fear’s view it is wrong to be too sceptical since, if the RBI is prepared to be tough, it has the leverage to apply, since it now has the power to invoke the insolvency code against defaulters. Once the NPA issue is resolved, the way will be clear for the public sector banks to raise capital, a process which should also lead, with the encouragement of both the RBI and the government, to the consolidation of the public sector banks. The rest of the Indian story under the extraordinary Modi remains as vibrant as ever. While it is true that the Aadhaar programme was launched under the previous government, the real roll out and practical application of the programme has been massively leveraged since Modi assumed power. The benefits of direct electronic payments are hard to exaggerate in terms of reduced leakages and the like. There is also the approaching launch of the Goods and Services Tax (GST). While this will not be as clean as originally hoped, the arrival of GST is a big deal. The fundamental point to focus on is that GST will end inter-state barriers to trade. The result should be increased tax revenues.GREED & fear remains constructive even if the Indian stock market is certainly expensive on a forward earnings basis. The continuing rise in the stock market year to date, and the resulting re-rating, has been triggered primarily by ongoing strong inflows into domestic equity mutual funds.These inflows into the mutual funds have been a feature ever since Modi was elected and reflect a growing preference for financial assets over traditional assets not traditionally visible to the taxman in India, namely property and gold. The investment in Naver in the Asia ex-Japan long-only portfolio will be removed. An investment in Indian state-owned bank State Bank of India will be initiated with a 3% weighting, while a further 1ppt will be added to the existing investment in HDFC.China’s foreign exchange reserves increased by US$20.4bn in April. This marks the first time China’s forex reserves have increased for three consecutive months since June 2014. CLSA’s economics team estimates a mark-to-market gain of US$25bn in April, which implies a balance of payments deficit of only US$5bn in April. This further reinforces the view here that capital flight in China is not out of control.The latest Chinese inflation data provides further evidence that China PPI inflation has already peaked. PPI inflation slowed for the second consecutive month, down from 7.6% YoY in March to 6.4% YoY in April. The slowdown can be partly explained by the base effect. But China PPI also declined on a month on month basis for the first time since June 2016.
The growth of India's manufacturing economy dropped to its lowest in the past 25 months, mainly on account of a slower expansion of new business and overall output, according to a leading global business survey released on Tuesday.
he rupee hit a more than two-year low against the greenback on Friday as domestic shares fell after an underwhelming stimulus package from the European Central Bank, forcing the Reserve Bank of India to sell dollars via state-run banks.
Services sector output stagnated in November after four consecutive months of expansion, as business sentiments hit the lowest level in a decade and flow of new orders turned sluggish, a monthly survey showed Thursday.
As per the data released by the Union Ministry of Commerce and Industry on November 30, 2015 the output of 8 core industries increased 3.2% in the month of October 2015 slowing down from 9% growth recorded in October 2014. The core sector growth in the period April to October 2015 was recorded at 2.5% while a growth of 5.6% was recorded in the corresponding period April to October 2014.
“Our outlook for the Indian power sector remains negative, because the industry faces persistent challenges, mainly resulting from high, albeit moderating, fuel supply risk, cost over-runs at some plants operated by independent power producers (IPPs), and the limited capacity to pay on the part of financially weak distribution utilities,” Moody’s said in a press release today. Let's brainstorm, guise. Modiji seems to be outside his depth here. May be we can think of good ideas and then have the mods tweet it to PMO.
l Reserve Bank of India l Bankers Bank l Regulator of Money Market l Part - 1 l By: Kunal Singh
According to the recent data from the Reserve Bank of India, India’s Foreign Exchange (Forex) reserves declined by $113 million to $479.45 billion in the week to 24 April, 2020 due to a fall in ... FII F&O Data based Strategies & Views for Monday 27 July 2020 WEBINAR Details: Please find the details of the webinar to be held on Sunday 2 August 2020 (English) and Sunday 9 August 2020 (Hindi ... This video contains data of Reserves (including gold) of different countries. Top-20 countries have been exposed to the video. Approach: Current US$ Data Sou... This video contains data of Forex Reserves (including gold) of different economies of the world. Low foreign exchange reserves negatively impact the exchange... RBI stress tests shows that public sector banks could see their gross NPAs rise to 15.2% by March 2021 from 11.3%. In the "very severe stress" scenario, this could go as high as 16.3%.