General Awareness

BUSINESS AND ECONOMY - December 2015

Dec 2015

Nov 11, 2019

Banijay Bets Big on India with Endemol Shine Deal

Paris-headquartered Banijay Group, the world's largest independent TV and multimedia content production company, is upbeat on India with its $2.2-billion acquisition of Endemol Shine Group.
Banijay will have almost 200 production companies in 23 territories once the deal is completed in the next 12-18 months. In India, it aims to be the number one production house for unscripted content with formats like 'Big Brother' and 'Fear Factor'. The move will also allow exit for private equity firm KKRbacked Emerald Media, which owns 49% stake in Endemol Shine India.
Banijay wants to take full control of Endemol Shine Group, which will result in its buying back of 49% minority stake from Emerald Media. Emerald Media, which has taken over CA Media's stake in the company, has been on the lookout to exit for some time. This deal will allow the fund to do so at the current market value.
Banijay is present in India through two entities. It owns 70% interest in SOL Productions, where it had invested in 2010, while in April 2018, it entered into a 50:50 joint venture with former Endemol India MD Deepak Dhar to launch Seventaurrus Entertainment Studio, more commonly known as Banijay Asia.

Hero to Buy Stake in Max Financial

Sunil Kant Munjal's Hero Corp is set to buy a significant minority stake from Analjit Singh in Max Financial Services Ltd.
The listed Max Financial houses Max Life Insurance is the largest nonbank private life insurer in the country.
Singh, who has pledged more than 90% of the promoter stake in Max Financial, is raising funds to deleverage the balance sheet. The promoter leverage has been a drag on the listed parent's stock.
Hero Corp may pick up a stake of 10-15% or more. Under the proposed deal that's likely to be announced shortly, it may declare itself a copromoter along with Singh and make an open offer. Munjal is expected to join the board of Max Financial, which has a market capitalisation of ₹12,963 crore. Singh could retain a 10% stake.
Singh recently sold an overseas hotel property for about ₹800 crore. It's understood that he will also divest the Max Group's residual stake of around 7.5% in hospital chain Max Healthcare, which is getting merged with Radiant Life Care.

Audi to Launch SUV Q8 in India in January

German luxury carmaker Audi will bring its flagship SUV Q8 in India in January 2020 as part of its strategy to strengthen presence in the country by 2025. The company has already started taking orders for the vehicle from the weekend as it looks to re-enter the top end of the luxury vehicles segment.

Great Wall of China to Soon Come up in India

China's largest SUV maker, Great Wall Motors, has registered an Indian subsidiary and is planning to invest close to ₹7,000 crore in the country, even as the market is going through one of its worst slowdowns.
The Indian subsidiary, Haval Motor India with its office in Gurgaon, was registered before October 2019, which means it won't be eligible for the low corporate tax rate of 15% (17.01% with surcharge) for new manufacturing units in India announced by the government in October 2019.
The company has been scouting for sites in at least five states — Maharashtra, Gujarat, Karnataka, Andhra Pradesh and Tamil Nadu. Maharashtra has emerged as the strongest contender, followed by Gujarat.
Meanwhile, the Indian unit of Great Wall has named Qingke Shi and Baoyu Chong to its board. Qingke Shi is also the India project head. Former Maruti Suzuki executive Kaushik Ganguly will steer its India product strategy.

Lenders Yet to Classify DHFL as NPA

Most public sector banks have held back from making bad loan provisions of advances to troubled housing finance company DHFL despite the account being 'redflagged' under RBI's framework for dealing with fraudulent disbursements.
The implication of not making provisions is that lenders may have to set aside a larger amount in the future. The resolution for a red-flagged account is recovery or a new owner coming in. Given the shortfall in assets, a new owner will take over only after significant writedowns. With mutual funds not agreeing to haircuts on their investments, the likelihood of a new owner looks dim.
SBI and Union Bank of India are the largest lenders to the group. A host of public and private sector banks are part of the consortium that sanctioned loans. DHFL has a total outstanding debt of nearly Rs 84,000 crore, of which Rs 26,324 crore is in the form of bank loans and Rs 41,431 crore in the form of non-convertible debentures. DHFL has been successively defaulting in debt and has cited a court-ordered freeze on repayments when it missed its recent dues. However, the KPMG report came in October 2019, after most banks had closed their books for the quarter. Most PSU banks, while coming out with their results for the quarter ended September 2019, chose to go by the textbook definition of an NPA, where repayment is overdue by 90 days.

Nordic Microfin Increases its Investment in Svasti Microfin

Nordic Microfinance Initiative (NMI) has raised its investment in Mumbai-based Svasti Microfinance while Michael & Susan Dell Foundation and Bamboo Capital Partners have exited in a $10-million share sale which includes both primary and secondary deals.
The fresh investment has raised Mumbai-based microfinance's net worth to ₹100 crore and would provide headroom to meet growth plans till March 2021.
NMI has $50-million exposure to India's six microfinance-oriented firms including the second largest Satin Creditcare Network, North East Small Finance Bank and Utkarsh Small Finance Bank.
The country's microfinance industry has grown 43% year-on-year to ₹1.91 lakh crore as on June with total loan accounts rising to 9.27 crore from 6.68 crore a year ago amid challenges of tight liquidity, especially for smaller firms.

Aviva Life Admitted for Bankruptcy Proceedings

Aviva Life Insurance has become the first financial company to be admitted into bankruptcy proceedings after the NCLT upheld a landlord's claim accusing the insurer of failing to meet its payment obligations and ordered the commencement of the company's insolvency process.

Nov 10, 2019

ADB approves $300 million for power transmission expansion in Bangladesh

The Asian Development Bank (ADB) has approved a 300 million dollar loan for a project to expand power transmission lines in Greater Dhaka and western zone of Bangladesh.
Besides ADB's loan, the Asian Infrastructure Investment Bank is considering 200 million dollars in co-financing to fund transmission lines, substations and an enterprise resource planning system.
The assistance also comprises a 750,000 dollar grant from China's Poverty Reduction and Regional Cooperation Fund.
The government and executing agency will contribute 249 million dollar equivalent toward the 750 million dollar total cost of the project which is due for completion by June 2024.

HDFC Bank to shift HQ

The largest private sector lender, HDFC Bank, is ready to move to a bigger office at Sandoz House in Worli from where the bank had started its operations 25 years ago.
HDFC Bank started its operations in 1994. Sandoz House in south Mumbai was its first corporate office and full-service branch. It was inaugurated by then Union finance minister Manmohan Singh.
HDFC Bank has taken the complete building at Sandoz House, which will be used to accommodate its growing staff.

India Yamaha Motor launches BS-VI compliant variants of bikes

India Yamaha Motor (IYM) launched BS-VI compliant variants of FZ-FI and FZS-FI bikes, priced between ₹99,200 and ₹1.02 lakh (ex-showroom).
The company will further announce the launch of other BS-VI compliant line-ups in coming time.
The new FZ-FI and FZS-FI BS VI versions come with various features like single channel ABS in the front wheel, front and rear disc brakes along with a single piece two level seat.

RBI increases household income limits for borrowers of NBFCs and MFIs

Reserve Bank has increased the household income limits for borrowers of Non-Banking Financial Companies (NBFCs) and microfinance institutions (MFIs) from 1 lakh to 1.25 lakh rupees.
The move is aimed at strengthening credit to those at the bottom of the economic pyramid in rural areas.
Similarly, the limit has been increased from 1.6 lakh for urban or semi-urban areas to 2 lakh rupees.
RBI said in a circular that the limit has been increased after taking into consideration the important role played by microfinance institutions in delivering credit to those at the bottom of the economic pyramid and to enable them to play their assigned role in a growing economy.

Nov 09, 2019

Moody's Downgrades India's Credit Rating Outlook To 'Negative' From 'Stable'

Rating agency Moody's Investor Service changed its outlook for India's sovereign rating (Baa2) from stable to negative, saying that the domestic economic downturn could be structural.
The agency's action does not amount to a rating downgrade, but comes as a caution against policy inaction. Moody's credit rating of Baa2, the second-lowest investment grade score, is better than those of other agencies, such as S&P and Fitch, who have assigned the lowest investment grade to India with a stable outlook.

EXIM Bank Gives $30 Million Line Of Credit To Ghana

Exim Bank has entered into an agreement with Ghana for a line of credit (LoC) of $30 million (about Rs 210 crore) for financing rehabilitation and up-gradation of potable water system in Yendi, Ghana.
Under the arrangement, financing of export of eligible goods, works and services from India would be allowed subject to their being eligible for export under the Foreign Trade Policy of India and whose purchase may be agreed to be financed by the Exim Bank.

Indian Bank, Muthoot Microfin Sign MoU

Public sector Indian Bank has signed a memorandum of understanding with Muthoot Microfinance to serve micro, small and medium enterprises.
Under the memorandum of understanding, the bank and the non-banking finance company will jointly lend to the MSME borrowers.

RBI Raises Cap On Borrowing From MFIs To Rs 1.25 Lakh In Rural Areas

The Reserve Bank of India (RBI) increased the household income limits for borrowers of NBFC-MFIs from Rs 1 lakh to Rs 1.25 lakh for the rural areas with an aim to strengthen credit to those in the bottom of the economic pyramid.
Similarly, the limit has been increased from Rs 1.6 lakh for urban or semi-urban areas to Rs 2 lakh.

Nov 08, 2019

Hero MotoCorp Launches India's First BS-VI motorcycle Splendor iSmart at Rs 64,900

India's largest two-wheeler maker Hero MotoCorp launched its first BS-VI emission norm compliant product - Splendor iSmart - at Rs 64,900.
The launch comes exactly one week before estranged partner and arch rival Honda Motorcycle and Scooter India is expected to launch a BS-VI compliant version of its mobike CB Shine.

IRDAI Bars Anil Ambani-Led Reliance Health Insurance From Selling Policies

Insurance sector regulator IRDAI has barred Anil Ambani-led Reliance Health Insurance Ltd (RHICL) from selling new policies due to its weak financial health.
The regulator has also asked RHICL to transfer the entire policyholders' liabilities along with financial assets to Reliance General Insurance Co Ltd (RGICL), which in turn will settle claims of the existing policyholders.

Mercedes-Benz Rolls Out Luxury 'V-Class Elite' at Rs 1.10 Crore In India

Mercedes-Benz launched 'V-Class Elite', a new luxury multi-purpose vehicle (MPV) at Rs 1.10 crore in the country.
The MPV has a 1950cc diesel engine and offers features such as massaging function on the luxury seats, a centre console with refrigerated compartment, surround sound system with 15 speakers, among other facilities.
The company will import V-Class Elite to the Indian market from Spain.

DIN System Of CBIC Comes Into Existence

The Documentation Identification Number (DIN) system of Central Board of Indirect Taxes (CBIC) will come into existence from November 8, 2019.
This path breaking system in indirect tax administration has been created as per the direction of Finance Minister Nirmala Sitharaman. Now, any CBIC communication will have to have a Documentation Identification Number.
To begin with, the DIN would be used for search authorisation, summons, arrest memo, inspection notices and letters issued in the course of any enquiry.
Any communication from GST or Custom or Central Excise department without a computer-generated DIN, would be treated as invalid and shall be non-est in law or deemed to be as if it has never been issued.
It will provide the taxpayer a digital facility to verify any communications.

Nov 07, 2019

India Gained $755 Million In Additional Exports To US Due To US-China Trade War: UNCTAD

India gained about $755 million in additional exports, mainly of chemicals, metals and ore, to the US in the first half of 2019 due to the trade diversion effects of Washington's tariff war with China.
The study, Trade and trade diversion effects of United States tariffs on China, shows that the ongoing US-China trade war has resulted in a sharp decline in bilateral trade, higher prices for consumers and trade diversion effects - increased imports from countries not directly involved in the trade war.

IMF Wants Govt To Be More Credible, Transparent On Fiscal Numbers

New Delhi needs to become more "transparent" on the fiscal numbers as it is a "laggard" among the G20 peers on this front, a senior official from the International Monetary Fund.
The government has been missing its budgeted fiscal targets for the past few years and there is a need for a "credible fiscal consolidation" which is more ambitious as well, the official said, adding this is more so as government has not addressed how it will make up for the massive Rs 1.45 trillion tax giveaways in the form of corporate tax cuts.

Maruti, Toyota Tsusho in JV For Vehicle Dismantling

Maruti Suzuki India and Japan-based Toyota Tsusho Group announced a new joint venture for vehicle dismantling and recycling, titled Maruti Suzuki Toyotsu India Pvt. Ltd.
While Maruti Suzuki India will own 50% in the joint venture, the remaining will be held by Toyota Tsusho Corporation and Toyota Tsusho India.
The venture would be headquartered in New Delhi and would set up its vehicle dismantling and recycling unit in Noida by 2020-21.

RBI Panel Moots Tighter Norms For CICs

A working group set up by Reserve Bank of India to review the regulatory and supervisory framework for core investment companies (CIC) has suggested that such entities should only have a two-tier structure, and stronger boards, with at least 50% independent directors.
It is suggested that capital contribution by a CIC in a step-down CIC, over and above 10% of its owned funds, should be deducted from its adjusted net worth.
Further, step-down CICs will not be permitted to invest in any other CIC, but can 'freely' invest in other group companies.

Share on

TCY Analytics (View Subscription Plans)

Subscribe to GK Updates

I want to receive

GK Tags

October GK, September GK, August GK, INTERNATIONAL AFFAIRS, ENVIRONMENT, BUSINESS AND ECONOMY, SCIENCE & TECHNOLOGY, SPORTS, NATIONAL AFFAIRS, DEFENCE, PERSONS IN NEWS, DAYS AND EVENTS, AWARDS AND HONOURS, GOVERNMENT POLICIES AND SCHEMES, GENDER/ HEALTH/ EDUCATION, ART AND CULTURE, BOOKS AND AUTHORS, TOURISM AND HOTEL INDUSTRY AWARENESS, ART AND CULTURE, LAW AND CONSTITUTIONAL AFFAIRS

Start Discussion

On any topic

Take Tests

Compiled from GK updates

Login

Sign Up

Forgot Password

Download TCY App

Unlock All Services and Enjoy The Premium Benefits

US$ 10

US$ 13

US$ 15

US$ 17

US$ 19

US$ 20

US$ 21

US$ 22

US$ 23

US$ 24

US$ 25

US$ 26