General Awareness

BUSINESS AND ECONOMY - October 2018

Oct 2018

Apr 19, 2020

Government Nod Must For Investment From China And Its Neighbours

India has clamped down on investments from China making prior government clearance mandatory for all forms investments, even indirect ones, from all countries sharing land border with the country.
The department for Promotion of Industry and Internal Trade issued a press note 3 (2020 series) stating that foreign investments from countries with which India shares land border shall be under approval route.
Also, transfer of ownership of any existing or future FDI in an entity in India, directly or indirectly, resulting in beneficial ownership falling within this restriction will require government approval. The move comes close on the heels of market regulator Sebi asking custodian banks to disclose details of `ultimate beneficial owners' of foreign portfolio investors (FPIs) based in China and Hong Kong.

TVS Acquires Britain's Most Iconic Sporting Motorcycle Brand 'Norton'

TVS Motor Company announced the acquisition of the United Kingdom's most iconic sporting motorcycle 'Norton' in an all-cash deal, for £16 million, by acquiring certain assets of Norton Motorcycles (UK) (in administration), through one of TVS Motor's overseas arms.
This would be among the most interesting acquisitions of a storied motorcycle maker, and reflects TVS' and India's rapidly rising prominence in the global two-wheeler market.
Founded by James Lansdowne Norton in Birmingham (in 1898), Norton Motorcycles is among the most popular British motorcycle brands of all time.

Apr 18, 2020

RBI Concludes Final Tranche Of Rs 1 Lakh Crore TLTRO, infuses Rs 25,000 crore

The Reserve Bank conducted the fourth and the final tranche of the Rs 1 lakh crore targeted long term repo operation (TLTRO) by infusing Rs 25,000 crore into the system.
While the TLTRO was announced on March 27, the LTRO was introduced at the February 6 monetary policy review when it announced Rs 1-lakh crore infusion through 3-year repo at 4.40 per cent.

RBI booster 2.0: Housing finance to get Rs 50,000 crore refinancing facility

Shaktikanta Das announced a refinancing facility worth Rs 50,000 crore to boost the housing finance sector. NABARD (Rs 25,000 crore), SIDBI (Rs 15,000 crore) and NHB (Rs 10,000 crore) would be the beneficiaries.
They will be charged at the repo rate of 4.4 per cent for this amount. The companies had earlier asked the government to help them with liquidity as they were suffering on account of tight liquidity conditions.
In a separate devlopment, the government has allowed non-banking financial companies (NBFCs), housing finance companies (HFCs) and microfinance institutions (MFIs) to operate with bare minimum staff amid the extended lockdown.

RBI Released 49th Round of OBICUS

The Reserve Bank of India (RBI) released the 49th round of quarterly OBICUS (Order books, inventories, and capacity utilization survey) of the manufacturing sector. The survey includes the reference period January-March 2020.
The OBICUS survey will provide valuable input for monetary policy formulation.
The Central Bank has conducted the OBICUS of the manufacturing sector on a quarterly basis since 2008.

MNRE Urges States To Set Up Renewable Energy Equipment Parks To Meet Demand

At a time when numerous international firms are looking to move their production base out of China in the wake of the coronavirus (Covid-19) outbreak, the Ministry of New and Renewable Energy (MNRE) is seeing a fresh opportunity in setting up renewable energy (RE) equipment manufacturing parks to meet domestic demand as well as make India a global production hub.

RBI Allows Banks To Maintain Lower Liquidity Ratio

Reserve Bank of India has provided some benefits to banks like maintaining lower liquidity coverage ratio, but at the same time has asked them to raise provisions against accounts which are showing stress.
The central bank has reduced the liquidity coverage ratio (LCR) requirement for banks to 80 per cent from 100 per cent with immediate effect as a relief to these lenders.

RBI Bans Banks, Cooperatives From Paying Dividends

The Reserve Bank debarred all commercial and cooperative banks from paying dividends to shareholders and promoter groups as the regulator fears the Covid-driven economic shocks would continue longer and may put the health of the financial system at risk.
The decision will hit the already scuppered finances of the Centre, given the massive shocks to the economy from the coronavirus-driven lockdown and the already falling growth rates which has brought down demand for loans and thus the profitability of banks which were anyways grappling with high bad loans.

RBI allows NBFCs to extend DCCO For Loans To Commercial Real Estate By One Year

The RBI allowed non-bank financial companies to extend the date for commencement of commercial operations (DCCO) for loans given to commercial real estate by additional one year without considering it as restructuring.
Currently, RBI has permitted banks to extend the DCCO in respect of loans to commercial real estate projects delayed for reasons beyond the control of promoters by additional one year, over and above the one-year extension permitted in normal course, without treating the same as restructuring.

RBI Raises Ways And Means Advances Limit For States

Increased limit will be available till 30 September 2020.On 1 April 2020 the RBI had announced an increase in the ways and means advances (WMA) limit of states by 30%.
It has now been decided to increase the WMA limit of states by 60% over and above the level as on 31 March 2020 to provide greater comfort to the states for undertaking COVID-19 containment and mitigation efforts, and to plan their market borrowing programmes better. The increased limit will be available till 30 September 2020.

RBI Exempts Accounts With Moratorium Benefits From Asset Recognition Norms For 90 Days

The Reserve Bank announced an asset classification standstill for three months to May 31, 2020 but asked banks to set aside additional money as provisions against loan accounts where the 90-day moratorium on repayments has been utilised.
On March 27, it had given term-loan borrowers the option of a moratorium on loan repayments for 90 days for the money due in March, April and May with the assurance that it will not affect credit scores.

Apr 16, 2020

10.2 lakh Refunds Worth Rs 4,250 Crore Issued In A Week By CBDT

In pursuance to the Government's decision vide Press Note on 8th April 2020 to issue pending income tax refunds up to Rs 5 lakh in order to help taxpayers in a COVID-19 pandemic situations, the Central Board of Direct taxes (CBDT) has already issued over 10.2 lakh refunds totalling to around Rs. 4,250 crore as on 14th April 2020. These refunds are over and above the 2.50 crore refunds already issued in FY 19-20 till 31st March 2020 totalling Rs 1.84 lakh crore.
The CBDT further said that about 1.75 lakh more refunds are in the process of issuance. These refunds would get credited directly to the taxpayer bank account in 5-7 business days from issuance.

Govt-Appointed Panel Proposes Institutional Framework For Valuers, Moots National Institute Of Va...

A government-appointed committee of experts has proposed an institutional framework for valuers by way of setting up the National Institute of Valuers.
The panel, headed by IBBI (Insolvency and Bankruptcy Board of India) Chairperson M S Sahoo, has also submitted the ''Draft Valuers Bill, 2020''.
The corporate affairs ministry sought comments on the bill, which has recommended setting up of the institute.

WPI Inflation Cools To Four-Month Low Of 1% In March As Food Prices Ease

Wholesale price inflation eased to a four-month low of one per cent in March 2020 on sharp fall in prices of food and fuel items as demand slowed.
The Wholesale Price Index (WPI) based inflation was 2.26 per cent in February and 3.10 per cent in March, 2019.
As per commerce and industry ministry data, food inflation fell to 4.91 per cent in March from 7.79 per cent in the previous month.

Google Journalism Emergency Relief Fund Launched, Following Facebook

Google will launch an emergency fund to help local news outlets struggling to maintain operations in the face of the coronavirus pandemic.
The internet giant gave no specific figure for its fund, but said it would offer grants ranging from the "low thousands of dollars" for the smallest operations to "low tens of thousands for larger newsrooms."
The move comes with the media sector facing deep cutbacks resulting from the global consumer lockdown, an intense economic slump and a retrenchment in advertising revenues that many news outlets depend on.

Newcastle United Takeover Deal Worth £300m Close

A Newcastle United takeover has moved a step closer after new documents show owner Mike Ashley has entered into a charge agreement with potential buyer Amanda Staveley.
Financier Staveley is leading a bid which involves Saudi Arabia's sovereign wealth fund and the Reuben Brothers.
It is understood to be worth £300m.
The 31-page charge agreement lodged at Companies House lays the legal groundwork for a potential deal to be completed.

Apr 13, 2020

Bengaluru's Jana Small Finance Bank Launches Digital Banking Platform

Jana Small Finance Bank, a scheduled commercial bank, has launched DIGIGEN - a digital banking platform where customers can digitally open a Savings Account and Fixed Deposit instantly; anytime, anywhere.
DIGIGEN onboarding is a hassle-free, three-step process to open an account. True to its brand promise "paise ki kadar", customers are eligible for an attractive 4.5 percent* p.a. interest rates on Savings Account with no minimum balance and up to 7.50 percent* p.a. interest on Fixed Deposits.

Merger of 10 Banks into Four to Come into Effect from April 1, Says FM Nirmala Sitharaman

Finance Minister Nirmala Sitharaman said the exercise of consolidation of 10 public sector banks (PSBs) into four is on course and the merger will come into effect from April 1, 2020.
The Union Cabinet, she said, has given a go-ahead for the merger proposal and the government has been in regular touch with these banks. There will be no regulatory issues, she said.
In the biggest consolidation exercise in the banking space, the government in August 2019 had announced four major mergers of public sector banks, bringing down their total number to 12 from 27 in 2017, a move aimed at making state-owned lenders global sized banks.

World Bank sees FY21 India growth at 1.5-2.8%; slowest since economic reforms three decades back

India is likely to record its worst growth performance since the 1991 liberalisation this fiscal year as the coronavirus outbreak severely disrupts the economy. India's economy is expected to grow 1.5 per cent to 2.8 per cent in the 2020-21 fiscal which started on April 1, the World Bank said in its South Asia Economic Focus report. It estimated India will grow 4.8 per cent to 5 per cent in the 2019-20 fiscal that ended on March 31.

UNIDO and CUTS Look To E-Commerce To Counter Economic Impact Of COVD-19

The COVID-19 pandemic has disrupted and impacted the daily lives of people and hampered economic activities in many countries across the world. The coronavirus's continuing spread requires global stakeholders to collaborate, support each other and find innovative solutions together in order to address the core challenges that countries are experiencing.
In this context, the United Nations Industrial Development Organization (UNIDO) and the Consumer Unity and Trust Society (CUTS) have signed an agreement to empower consumers to contribute to the global development agenda as well as support their respective governments in times of global crisis.

Mar 31, 2020

IAG Sells Exits SBI General Insurance, 26 pc Stake For USD 310 mn

SBI on Monday said Australia's IAG has sold its entire 26 per cent stake in the lender's general insurance joint venture SBI General Insurance Co Ltd for USD 310 million (about Rs 2,325 crore).
The stake has been sold to Premji Invest and Warburg Pincus group.
"IAG (Insurance Australia General) is pleased to advise it has completed the sale of its 26 per cent interest in SBI General in India. The associated transactions were first announced on October 17, 2019," SBI said in a regulatory filing, referring to IAG's disclosure on Australian Securities Exchange about the sale.
As a result, IAG will book a net profit on sale of its interest in SBI General of approximately USD 310 million in the second half of FY20, as per IAG's filing to the Australian exchange.

Tata Power JV commissions 178 mw-hydropower project in Georgia

Tata Power Company's joint venture with Norway's Clean Energy Invest (CEI), and International Financial Corporation (IFC) has started commercial operation of a 178 megawatt hydropower project in Georgia, the Tata group utility said.
The joint venture company, Adjaristsqali Georgia LLC, is setting up one of the largest projects in Georgia at an overall project cost of approximately $ 500 million. After the 178 mw-Shuakhevi Hydro Power Project, the JV will comission a 9 mw units, namely Skhalta Hydro Power project.

RBI Raises FPI Investment Limit In Corporate Bonds To 15%

The Reserve Bank of India has increased the limit for Foreign portfolio investors (FPI) investment in corporate bonds to 15% of outstanding stock for FY 2020-21.
Revised investment limit for FPI investment in corporate bonds shall be Rs 5,41,488 crore for HY Oct 2020-Mar 2021.
The existing investment limit for FPI investment in corporate bonds stands at Rs 3.17 lakh crore, while the revised limit shall be Rs 4,29,244 crore for HY Apr 2020-Sep 2020 and Rs 5,41,488 crore for HY Oct 2020-Mar 2021.
The revised limits for FPI investment in Central Government securities (G-secs) and State Development Loans (SDLs) for FY 2020-21 will be advised separately.

Punjab National Bank Unveils New Logo Ahead Of Merger

Ahead of its merger with the United Bank of India (UBI) and the Oriental Bank of Commerce (OBC) from April 1, 2020 Punjab National Bank (PNB) unveiled a new logo which bears the signages of all the three PSU banks. From the next financial year, PNB will become the second largest lender in India after the State Bank of India (SBI).
The Reserve Bank of India (RBI) has already issued a statement that the merger will take place as scheduled on April 1. There were concerns that the 21-day nationwide lockdown might impact the mega merge plan in which 10 state-owned banks will be merged into four bigger and stronger banks.
OBC and UBI are the transferor banks while PNB is the transferee in this amalgamation process. The boards of UBI and OBC will cease to exist from April 1, 2020.

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