Top headlines: FPIs rush to exit India; PSBs sanctioned Rs 6.45 trn loan

From PSBs sanctioning loans worth Rs 6.45 trn in two months of lockdown to govt's recent reforms, here are the top headlines of the day

FPIs rush to exit India, withdraw $6.4 billion amid Covid-19 uncertainty

Foreign investors turned net sellers in March quarter and pulled out $6.4 billion from the Indian equity markets largely due to the COVID-19 outbreak and ensuing risk-averse environment, a Morningstar report said. In comparison, foreign portfolio investors (FPIs) bought net assets worth $6.3 billion in three months ended December 2019. FPIs were net buyers in January ($1.71 billion) and February ($265 million). They, however, went on a selling spree in March as they sold net assets worth $8.4 billion. Read More

Economic package won't fully offset negative impact of Covid-19: Moody's

Moody's Investors Service on Tuesday said the measures announced by the government for financial institutions as part of Rs 20 trillion-economic package will help ease their asset risk, but will not fully offset the negative impact from the Covid-19 outbreak. The government last week announced a support package of Rs 3.70 trillion for micro, small and medium enterprises (MSME) sector, Rs 75,000 crore for non-banking financial companies (NBFCs) and Rs 90,000 crore for power distribution companies. Read More

PSBs sanctioned loans worth Rs 6.45 trn in two months of lockdown

State-owned banks have sanctioned about Rs 6.45 trillion worth loans to various sectors including Micro Small and Medium Enterprises (MSME), agriculture and retail between March 1 and May 15 when businesses were reeling under the impact of the Covid-19 crisis. Loans sanctioned at the end of May 8 stood at Rs 5.95 trillion. "Loans worth over Rs 6.45 trillion were sanctioned by PSBs during March 1 May 15 for 54.96 lakh accounts from MSME, Retail, Agriculture & Corporate sectors; A notable increase compared to the Rs 5.95 trillion sanctioned as of May 8," Finance Minister Nirmala Sitharaman said in a tweet. Read More

Indian companies paid Rs 8 crore on average to fix ransomware, says report

Indian companies paid more than Rs 8 crore ransom on average to fix ransomware attack on their operations, a new report said on Tuesday. As many as 82 per cent Indian companies were attacked in the past 12 months--a 15 per cent increase from 2017, said the report called 'The State of Ransomware 2020' conducted by Sophos, a global cybersecurity company. Ransomware is a form of malicious software that locks and encrypts a victim’s computer or device data and then demands a ransom to restore access, according to Norton.com. Read More

Govt's recent reforms won't help ailing power sector: CARE Ratings

The suite of reforms announced by Finance minister Nirmala Sitharaman in the fourth tranche of economic package is unlikely to calm the frayed nerves of the stressed power sector. A study by CARE Ratings notes that the ailing power sector does not stand to gain from the reforms in the short term, with accumulated coal inventory climbing to 51 million tonnes (as on May 13). The nationwide lockdown imposed to contain the Covid-19 pandemic has sapped power demand. Power demand has tumbled significantly during the lockdown period primarily due to falling demand from commercial and industrial consumers. Read More