General Awareness

BUSINESS AND ECONOMY - February 2017

Feb 2017

Aug 07, 2020

RBI Leaves Key Rates Unchanged Amid High Inflation

The Reserve Bank of India left the repo rate and other key policy rates unchanged at existing levels taking stock of a recent rise in consumer inflation, and said that it would ensure retail prices are contained within its medium-term target going forward. Governor Shaktikanta Das said that the RBI's Monetary Policy Committee unanimously decided to keep the key rates unchanged and maintain an "accommodative" stance for "as long as necessary to revive growth and mitigate the impact of COVID-19, while ensuring that inflation remains within the target going forward.
Governor Shaktikanta Das said that the RBI's accommodative stance continues, the holding of rates runs counter to broad market expectations of a slash in policy rates to enable banks to lend more. Retail inflation, measured by the Consumer Price Index, rose in June to 6.09% from 5.84% in March, breaching the RBI's medium-term target range of 2-6%. That seems to have been a major red flag that prompted the MPC's unanimous decision.
Moreover, Das flagged concerns over domestic food inflation remaining elevated. Given the uncertainty surrounding the inflation outlook and the weak state of the economy amid the pandemic, the policy panel decided to keep the policy rate on hold, while remaining watchful for a durable reduction in inflation to use the available space to support a revival of the economy.

Oman India Joint Investment Fund II Buys Stake in DCB Bank

Oman India Joint Investment Fund II (OIJIF) acquired 5.07 million shares or 1.63% stake in Mumbai based DCB Bank through a block trade on stock exchanges. The stake is valued at Rs. 42 crore.
OIJIF is a private equity fund backed by State Bank of India (SBI) and State General Reserve Fund of Oman (SGRF),purchased 50,69,903 shares of DCB Bank through a bulk deal, according to information available with the stock exchanges.
The shares were purchased at an average price of Rs. 81.90 valuing the transaction at Rs. 41.52 crore, data showed.

IBBI Amends Liquidation Process Regulations

As per the Insolvency and Bankruptcy Board of India (IBBI), a liquidator can claim fees only on the basis of the amount of work they have done during the liquidation process of a company, be it in terms of the amount realised or distributed.
When a company goes into liquidation under the Insolvency and Bankruptcy Code (IBC), generally, the committee of creditors (CoC) appoints a liquidator and decides on a fixed fee to be paid for their services.
However, in the absence of a fixed fee, IBBI regulations stipulate the liquidator's fee as a percentage of the amount realised and distributed through the liquidation process.
To address uncertainties in such cases involving multiple liquidators, the IBBI has amended the liquidation process regulations.
Similarly, the opposite applies to a liquidator who distributed the amount but did not realise it.

Reliance Industries Limited Ranks after Apple Inc Globally

Billionaire Mukesh Ambani's oil-to-telecom conglomerate Reliance Industries (RIL) has been ranked second biggest brand after Apple on the FutureBrand Index 2020. "This year's highest entrant at number two, Reliance Industries excels on every attribute," FutureBrand said, releasing its 2020 Index.
FutureBrand, which is a global brand transformation company, said part of Reliance's success could be attributed to Mukesh Ambani's recasting of the firm as a one-stop-shop for Indians. "The chairman built on the existing petrochemicals business, transforming it into a digital behemoth designed to meet every customer need.
The 2020 list is topped by Apple, while Samsung is ranked third, followed by Nvidia, Moutai, Nike, Microsoft, ASML, PayPal and Netflix.

RBI to Set up Innovation Hub for Financial Inclusion, Efficient Banking

The Reserve Bank of India (RBI) will set up an innovation hub to encourage start-ups and companies address the challenges of financial inclusion and efficient banking transactions. The hub aims to bring solutions to the financial sector by tapping into areas such as cybersecurity, data analytics, delivery platforms, and payment services.
To promote innovation across the financial sector by leveraging technology and create an environment which will facilitate and foster innovation, the RBI will set up an innovation hub in India. The innovation hub will support, promote, and handhold cross-thinking, spanning regulatory remits and national boundaries.
The innovation hub will act as a centre for ideation and incubation of new capabilities, which can be leveraged to create innovative and viable financial products or services. These will help achieve the wider objectives of deepening financial inclusion, efficient banking services, ensuring business continuity in times of emergency, and strengthening consumer protection, it added. The central bank, however, did not give further details on funds allocated or location of the project.

Government Abolishes All India Handicrafts Board

The government has abolished the All India Handicrafts Board, an advisory body which gives recommendation to government for promotion and growth as handicrafts in India.
"In consonance with the government of India vision of 'Minimum Government and Maximum Governance", a leaner government machinery and the need for systematic rationalization of government bodies, the government of India has abolished All India Handicrafts Board with effect from the date of issue of this resolution," textiles ministry said in a notification.
The board is chaired by textiles minister and has secretaries to the ministries of rural development and micro small & medium enterprises, and various states as members.

Banks can Give Loans up to 90% of the Value of Gold and Jewellery Pledged

According to RBI, borrowers can now pledge gold jewellery and ornaments in the banks and get loans of up to 90 per cent of its value. The RBI move came at a time when gold prices have shot up to over Rs. 55,000 per 10 grams, a rise of close to 40 per cent this year.
It has been decided to increase the permissible loan to value ratio (LTV) for loans against pledge of gold ornaments and jewellery for non-agricultural purposes from 75 per cent to 90 per cent.. This relaxation will be available till March 31, 2021.
This is being allowed "to further mitigate the economic impact of the Covid-19 pandemic on households, entrepreneurs and small businesses. As of now, loans sanctioned by banks against pledging gold ornaments and jewellery for non-agricultural purposes should not exceed 75 per cent of its value.

IDBI Bank Inks Pact to Divest Stake in Insurance JV

IDBI Bank entered into a share purchase agreement (SPA) with the other two joint venture partners in IDBI Federal Life Insurance Company (IFLIC), to divest 27 per cent of its stake for Rs. 595.30 crore.
In June, the private sector lender had informed about the stake sale-purchase proposal among the three JV partners.
Under the SPA, 23 per cent of the stake would be sold to Ageas and 4 per cent to Federal Bank.
The transaction would be concluded subject to regulatory approvals.
Currently, LIC-promoted IDBI Bank holds 48 per cent in IFLIC, while Federal Bank and Ageas hold 26 per cent each.
IDBI Bank is expected to receive up to Rs. 595.30 crore from sale of up to 27 per cent stake in IFLIC.
The bank will receive Rs. 507.10 crore by selling 23 per cent stake to Ageas, and Rs. 88.19 crore by selling 4 per cent to Federal Bank.

Aug 06, 2020

Bharti Airtel Inks Strategic Pact with Amazon for AWS Solutions

Bharti Airtel announced a multi-year strategic pact with Amazon Web Services (AWS) – the cloud services arm of the retail giant – to deliver Cloud solutions to large as well as small and medium enterprise (SME) customers in India.
Puneet Chandok, president, commercial business, India and South Asia, Amazon Internet Services, said that it is a 50:50 strategic partnership.
This collaboration gives customers a single point of contact when dealing with complex migrations or custom-built solutions. Airtel has demonstrated a strong commitment to our shared customers, and we look forward to continue working with it to bring innovative solutions to the market.
According to the IDC Semiannual Public Cloud Services Tracker – Forecast 2019 H2 – the public Cloud services market in India is likely to touch $7.1 billion in 2024, rising at a compound annual growth rate (CAGR) of 20.3 per cent from $3.4 billion in 2020.
In addition, Airtel Cloud will leverage AWS' innovation and transformation services across analytics, data warehousing, Internet of Things (IoT), and machine learning (ML) to help customers adopt new services and migrate to the Cloud from legacy infrastructure.

HDFC to Raise Rs. 14,000 crore, Fixes Rs. 1,838 as Floor Price for QIP

Housing Development Finance Corporation's (HDFC's) Qualified Institutional Placement (QIP) for equity shares opened for subscription with a floor price of Rs. 1,838.94 per share. It is looking to raise Rs. 14,000 crore of equity capital.
HDFC might offer a five per cent discount on the floor price. Its share closed almost flat at Rs. 1,776.9 per share on the benchmark BSE Sensex.
The mortgage lender is also looking to raise Rs 9,000 crore through secured non-convertible debentures.
The company will use part of fresh capital for funding inorganic opportunities and investments in existing group businesses. It is also looking at setting up a real estate fund in collaboration with other investors to finance stressed projects.
The fund raising by HDFC comes within a day of Axis Bank launching its QIP to raise around Rs. 10, 000 crore. The floor price set by the bank is Rs. 442.19 per share. According to the terms of the deal, the base deal size is up to Rs. 8,000 crore, with an option to upsize an additional Rs. 2,000 crore.
HDFC's capital adequacy ratio (CAR) was 17.6 per cent, of which tier-I capital was 16.5 per cent and tier-II capital was 1.1 per cent, in financial year 2019-20 (FY20). The investment in HDFC Bank has been considered as a deduction in the computation of tier-I capital.

Govt. Extends SEBI Chairman Ajay Tyagi's Term

Ajay Tyagi will continue to be the head of the Securities and Exchange Board of India (Sebi) for another 18 months after the Centre extended his term as SEBI chairman up to February 28, 2022.
This is the second extension for the 62-year-old Indian Administrative Service (IAS) officer of the Himachal Pradesh cadre. His first three-year term was to end on February 28. At the time, the government had given him a six-month extension till August 31.
Market observers say that both the extensions were critical given the uncertainty caused by the Covid-19 pandemic. The latest extension will ensure continuity and give Tyagi a long rope to undertake key stock market reforms.

Aug 05, 2020

RBI May Not Cut Lending Rate; Announce Other Measures to Boost Growth

As per reports, the RBI may refrain from cutting the benchmark lending rate but can announce other measures like restructuring of loans amid the urgency to revive the coronavirus-hit economy.
The six-member Monetary Policy Committee (MPC), headed by the RBI Governor, is scheduled to announce its decision very soon. This is the 24th meeting of the MPC.
Although opinions are divided on the rate cut, experts believe loan restructuring is more essential at this juncture to combat the impact of Covid-19.
"The focus is on restructuring. Finance ministry is actively engaged with RBI on this. In principle, the idea that there may be a restructuring required, is well taken," Finance Minister Nirmala Sitharaman had said last week.
Besides, the central bank is expected to issue directions regarding the loan moratorium which is coming to an end on August 31 amid bankers opposing further extension of this facility on concerns over its misuse.

National Bank of Bahrain Selects Infosys Finacle to Digitally Transform its Transaction Banking B...

National Bank of Bahrain (NBB) and Infosys Finacle, part of EdgeVerve Systems, a wholly-owned subsidiary of Infosys, announced that the bank has decided to adopt the Finacle Cash Management Suite to digitally transform its transaction banking business.
This partnership is a part of NBB's digital transformation, with the upgrades provided by the suite to equip the bank with a modern system that will provide simple and seamless service to the clients.
NBB will implement the Finacle Liquidity Management platform and upgrade its existing Finacle Corporate Online Banking platform to a full-fledged Digital Engagement Suite with the latest versions of the Finacle Corporate Online and Mobile Banking solutions, along with the Finacle Digital Engagement Hub.
The front-to-back integrated cash management solution will provide a world-class banking experience to the corporate and institutional customers, thereby driving the growth of our transaction banking business
It will enable NBB manage their customer preferences and entitlements effectively across channels.

Sashidhar Jagdishan to Succeed Aditya Puri as HDFC Bank CEO

After months of speculation, HDFC Bank named Sashidhar Jagdishan new managing director and chief executive officer (CEO) who would take over from India's longest-serving CEO Aditya Puri when he retires in October 2020.
Jagdishan joined the bank in 1996 and heads finance, human resources, and some other departments. In August last year, he was named "change agent" in the bank, and it is understood he had the strong backing of Puri as successor. Kaizad Bharucha, head of HDFC's wholesale banking division, and Sunil Garg of Citibank were among the other candidates in the race for the post.

Nokia to Set up Robotics Lab to Study 5G's 'Socially Relevant' Uses

Finnish telecom gear maker Nokia announced a collaboration with the Indian Institute of Science (IISc) in Bengaluru to establish a network robotics laboratory for research on socially relevant use cases based on 5G and emerging technologies.
The Nokia Centre of Excellence (CoE) for Networked Robotics will promote interdisciplinary research involving robotics, advanced communication technologies and Artificial Intelligence (AI) to develop use cases across areas like emergency management, agriculture and industrial automation, the company said.
The centre will promote engagement and cooperation between academia, start-ups and industry ecosystem partners in research and development of use cases.
The centre supports and aligns with the government's initiatives of Start-up India.

Canara Bank Partners with 3 Insurers to Provide Individual Short-Term Corona Kavach Policy

As part of a social commitment to compensate the unprecedented expenses of ordinary people, Canara bank partnered with 3 insurers namely, New India Assurance Company Ltd, Bajaj Allianz General Insurance Co Ltd and HDFC ERGO Health Insurance Co Ltd to offer individual short-term Corona Kavach policy to cover COVID-19 related health expenses.
The premium of the policy starts from Rs 300.
Purchase can be made on an individual basis and family floater basis.
The policy will be available for a maximum period of 9 and half months (or 285 days).
A minimum 24 hours hospitalisation is required.
The minimum sum insured is Rs. 50,000 and maximum is Rs. 5 lakh.
There is no capping on room rent, and home care treatment up to 15 days.
It will cover Ayush treatment up to 100% of sum assured and cover co-morbid conditions.
It also covers the Optional hospital cash.

Aug 04, 2020

IFSCA Set Up Expert Committee to Suggest Ways to Develop of International Retail Businesses

The International Financial Services Centres Authority (IFSCA) announced the establishment of an expert committee headed by Pradip Shah, Chairman of Indasia Fund Advisors Pvt Ltd. to suggest on how to develop the international retail businesses in International Financial Services Centres (IFSC).
The member of the committee includes:
G. Srinivasan, Ex-Chairman and Managing Director, New India Assurance Ltd.
Siddhartha Sengupta, Ex-Deputy Managing Director of State Bank of India
Shyamal Mukherjee, Chairman of PricewaterhouseCoopers (PwC)
Prakash Subramanian, Head of Strategy, Standard Chartered Bank
Dipesh Shah, Head – IFSC Dept., GIFT IFSC
Nitin Jaiswal, Head – Govt Affairs & Strategic relations, Bloomberg, Singapore

BOB Financial Solutions Partners with Innoviti Payment

BOB Financial Solutions Limited partnered with Innoviti Payment Solutions Pvt. Ltd to launch New Credit Card Equated Monthly Installments (EMI) offering on Point of Sale (POS) terminals. The association of Bank of Baroda (BOB) Credit Card with Innoviti Payment Solutions will enable BOB credit card holders to access EMIs that can be repaid conveniently through their credit cards.
The offering is in terms of convenient and affordable EMI options.
The Bank of Baroda credit cardholders pan India can receive the service from over 70,000 Innoviti POS terminals across more than 1,000 cities.

Cognizant Bets on M&As to Grow Digital Business

Cognizant Technology Solutions Corp is betting on mergers and acquisitions (M&As) to build its digital business, which the company believes is still in a nascent stage.
The Nasdaq-listed company has already made five digital-based acquisitions this year, all of which are primarily in the cloud computing space.
In February, it acquired Code Zero, provider of cloud-based billing solutions, and the French operations of EI-Technologies, a Paris-based independent Salesforce specialist. In March, it acquired Lev, a digital marketing consultancy that helps businesses modernize their marketing campaigns with data-driven insights.
In May, it acquired Collaborative Solutions, which is expected to add new finance and HR advisory and implementation services to its cloud offerings and, in June, it entered into a deal to acquire New Signature, an independent Microsoft public cloud transformation specialist.
Except EI-Technologies, the four other acquired companies are based in the US, Cognizant's largest market, which contributed 75.8% to the overall revenue in 2019.

Adani Group, Suraksha, Sunteck Realty Submit EOI to Acquire Debt-laden HDIL

Adani Properties, Suraksha Asset Reconstruction and Sunteck Realty are among six players which have shown initial interest to acquire debt-laden HDIL through the insolvency resolution process, according to a regulatory filing. Adani Properties and Suraksha group had participated in the insolvency resolution process of Jaypee Infratech, which eventually was acquired by the state-owned NBCC.
HDIL is under corporate insolvency resolution process (CIRP) pursuant to the provisions of the Insolvency and Bankruptcy Code (IBC), 2016.
In a regulatory filing, Housing Development and Infrastructure Ltd (HDIL) shared the provisional list of prospective resolution applicants.

Amazon Launches New Warehouse in Ludhiana

With just days to go before its Prime Day' sale, Amazon India expanded its warehouse network with the launch of a new specialised fulfilment center (FC) for large appliances and furniture in Ludhiana, Punjab.
The new warehouse has a storage capacity of nearly 3 lakh cubic feet and is located in Doraha, Ludhiana.
With the new launch, Amazon India will have two warehouses with more than 4.5 lakh cubic feet of storage space in Ludhiana, Punjab.
The latest move would also enable faster delivery of products to customers with a wider product selection this Prime Day on August 6-7, 2020.
Amazon India offers over 4,500 products in the large appliances category including air conditioners, refrigerators, washing machines and TVs from brands such as LG, Samsung, Whirlpool, Bosch, IFB and Haier.

Aug 03, 2020

Listed Entities Get 3 Years to Meet Criteria of Minimum 25% Public Shareholding

The government has notified changes in the Securities Contracts (Regulation) Rules, 1957, providing more time to listed entities to meet criteria of minimum public shareholding of 25 per cent.
The changes have come into force from the date of their publication in the official gazette.
Once a company is listed, its promoters are required to bring down their shareholding down to 75 per cent within the stipulated minimum shareholding period so as to meet minimum public float of 25 per cent.
The latest notification is the second major relief companies have got in this regard on account of the COVID-19 pandemic. On May 14, the Securities and Exchange Board of India (SEBI) relaxed the applicability of action on non-compliant entities.

Global Investors Drive Record Inflows into Chinese Bonds in July

Foreign investors made record net purchases of Chinese bonds traded through the country's Bond Connect programme in July, boosted by record yield premiums over U.S. debt.
Net inflows into Chinese bonds through Bond Connect, which gives global investors access to the country's onshore bond market through Hong Kong, totalled 75.5 billion yuan ($10.83 billion) in July.
Bond Connect Co. is a joint venture between the China Foreign Exchange Trade System (CFETS) and Hong Kong Exchanges and Clearing Ltd.
Total trading volumes stood at 446.9 billion yuan in July. That was up 5.9% from a month earlier, but below a record 478.2 billion yuan in March, when the rapid international spread of the new coronavirus drove a global flight to safety.

Grants Given under Women Entrepreneurship & Empowerment Cohort Initiative

The Women Entrepreneurship and Empowerment, WEE cohort initiative helps women ranging from college going students to middle-aged housewives to take up entrepreneurship as a viable, fulfilling career option. It is India's first of its kind initiative to strengthen women's ecosystem at IIT Delhi, supported and sponsored by the Department of Science and Technology.
The cash awards in the form of a grant totalling Rs. 25 lakh have been presented to 11 Women entrepreneurs.
Kalpana Arora, who has done a Doctorate in wastewater management from IIT Delhi, has been awarded for her products like sanitizers from wastewater. She is a social entrepreneur and works for tribal women and farmers in the hilly region of Uttarakhand through Self Help Groups.

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