Page 1796 - Business Finance
RBI, govt signal truce; sends contentious issue of surplus to expert panel
Signalling a temporary truce, the Reserve Bank and the government Monday agreed to refer to an expert committee the contentious issue of appropriate size of reserves that the RBI must hold, while restructuring of stressed loans of small businesses would be considered by the central bank. The setting up of the committee, whose members will be decided by the government and the RBI, followed a marathon nine-hour long meeting of the central board that discussed threadbare issues that had brought the central bank and the Finance Ministry at loggerheads. "The Board decided to constitute an expert committee to examine the ECF, the membership and terms of reference of which will be jointly determined by the Government of India and the RBI," the central bank said in a statement. Currently, the capital base of RBI is Rs 9.69 lakh crore, and independent director and Swadeshi ideologue S Gurumurthy and the finance ministry have been wanting it to be lowered in line with global practices. The ...
Engineer.ai raises USD 29.5 mn from Softbank's DeepCore and others
Engineer.ai, a human-assisted artificial intelligence platform, Monday said it has secured USD 29.5 million (about Rs 210 crore) funding led by Lakestar and Jungle Ventures with participation from Softbank's DeepCore. The funds will be utilised for strengthening engineering operations and customer acquisition, Sachin Dev Duggal, Founder and Chief Wizard of Engineer.ai, said. Engineer.ai was created so that everyone can build an idea without learning to code, he added. "The capital comes at a time of rapid growth and will propel the platform into the mainstream, allowing 'Builder' to open the door for entire categories of companies that could not consider it before," he said. Launched in June 2018, Engineer.ai has already attracted hundreds of customers across many geographies. Its 'Builder' solution allows people -- even those without technical skills -- to get customised apps built for Android, iOS and other platforms. Asia Pacific region mainly India, MENA, South East Asia including
IOC open to tie up with GAIL for Kolkata city gas distribution
Indian Oil Corporation said Monday it has not decided on the strategy for bidding under the 10th city gas distribution license but options are open for joint ventures and partnerships in other cities of West Bengal. All options remain open. There has been no decision in this regard as of now, not even pre-bid meeting has taken place, IOC CGM (LPG) Abhijit Dey said when asked about whether the oil refiner-cum-retailer will go solo or through partners for the bidding process in February 2019. "It may happen we may go solo, partner with anoother entity including GAIL," he said. GAIL has an existing partnership with Greater Calcutta Gas Supply Corporation for city gas which already has a piped gas infrastructure in metropolitan area and some portions of adjoining districts of Kolkata. The next round of bidding will happen for key cities of Kolkata, Howrah, Hoogly, North and South 24 Parganas Darjeeling, North and South Dinajpur and a few others. However, the bidding will not
City gas distribution project to be launched on November 22
Indian Oil Corporation Limited (IOCL) Monday said it was planning to set up 273 compressed natural gas (CNG) stations in Coimbatore and 158 in Salem in the next eight years as part of the city gas distribution (CGD) project which would be launched on November 22. With respect to piped natural gas (PNG), the IOCL which is a public sector undertaking said connections to over three lakh households in Salem and nine lakh in Coimbatore would be provided within the period. IOCL had bagged tenders to implement the city gas distribution project in Salem and Coimbatore, while other companies bagged the tenders to implement the project in eight other districts - Chennai, Kancheepuram, Tiruvallur, Cuddalore, Nagapattinam, Tiruvarur, Ramanathapuram and Tiruppur. Speaking to reporters here, executive director of Indian Oil (Tamil Nadu) R Sitharthan said the project costing an estimated Rs 2,100 crore would bring fuel price down by 40 percent. "Petrol and diesel contribute Co2 to the
Euro zone debates rules for simpler debt restructuring
BRUSSELS (Reuters) - Euro zone finance ministers discussed on Monday ways to make sovereign debt restructuring easier and more predictable as they seek to put together a package of reforms for December to integrate the single currency area more closely.
Auto titan Ghosn under arrest, faces ouster at Nissan
Nissan chairman Carlos Ghosn is under arrest in Japan over allegations of financial misconduct and faces being fired this week, the firm said Monday, in a stunning fall from grace for one of the world's best-known businessmen. Ghosn's arrest and his likely dismissal from Nissan, and possibly Mitsubishi and Renault, sent shockwaves through the auto industry, where he is a towering figure credited with turning around several major manufacturers and leads an alliance of the three automakers. Nissan's board will meet Thursday to decide his fate, and Mitsubishi said it would propose he be dismissed as chairman "promptly." Renault said its board would meet "shortly", after Ghosn was detained over allegations including underreporting his income. At a hastily organised press conference, Nissan CEO Hiroto Saikawa expressed "despair," but also suggested that Ghosn had accrued too much power and eluded proper oversight. "Too much authority was given to one person in terms of governance," he told
Indian Oil to pump Rs 1,200cr in CNG distribution in Burdwan
Indian Oil Corporation (IOC) has said it will infuse Rs 1,200 crore over the next 6-7 years to create infrastructure of laying LPG pipeline and installing CNG stations in the two Burdwan districts of West Bengal. City piped gas can be a reality in the district in the next two years along with compressed natural gas (CNG) stations and the foundation stone laying ceremony is scheduled on November 22, IOC (West Bengal) Executive Director Dipankar Ray said Monday. IOC had partnered Adani Gas private Ltd for both east and west Burdwan districts in the ninth round of bidding for city gas distribution project. We will build 80 CNG stations for automotive fuel and offer a minimum of 2.5 lakh of piped gas connections in the next 8 years. In the first phase, 12 CNG stations and connection target is 12,000 in 2020 and the joint venture proposes to add similar numbers each year thereon, Ray said. Based on current prevailing prices of CNG, it is almost half of petrol and diesel ...
KTR has movable assets worth Rs 3.63 crore
Telangana minister in the caretaker government K T Rama Rao has movable assets worth Rs 3.63 crore. According to his nomination filed Monday, Rao declared that his wife Shailima has nearly four kg gold and diamonds and has assets worth over Rs 36.70 crore (as per current market value) with Rs 27.39 crore liabilities. Rao, son of caretaker chief minister K Chandrasekhar Rao, has immovable assets of Rs 1.30 crore. He also has liabilities of Rs 33.28 lakh. Rao earned about Rs 74 lakh income including from agriculture during the last fiscal. His wifes income stood at Rs 4.60 crore. He is facing 16 criminal cases which were filed during the separate Telangana Statehood agitation in 2011-13, according to the affidavit. His Congress rival KK Mahender Reddy has fixed assets worth Rs 3.80 crore and movable assets of Rs 41 lakh. Congress state working president Revanth Reddy has assets worth about Rs 9.67 crore while his wife Rs 11.71 crore with liabilities of Rs 1.47 crore and ...
RBI to set up expert panel to examine its economic capital framework
NEW DELHI (Reuters) - The Reserve Bank of India said on Monday it has decided to set up an expert panel to examine the economic capital framework of the central bank, in a move that could prompt a rethink of what constitutes adequate capital reserves for the central bank.
New definition of kilogram from May next year: Government
India will adopt a new definition of the kilogram (kg) from May next year, after representatives of 60 countries last week voted to redefine the International System of Units.
Exit mechanism for banks under PCA crucial: Sanjeev Sanyal
Principal economic advisor Sanjeev Sanyal Monday said the country cannot have 'Hotel California' approach towards banks under the prompt corrective action (PCA) framework, where the exit mechanism for these lenders is undefined. The Reserve Bank of India's PCA framework, which intends to nurse financially weak banks back to health, restricts lending and expansion of lenders. Out of the 21 state-owned banks, 11 are under the PCA framework at present. "We cannot have a 'Hotel California' approach to PCA banks that you can check out anytime but you cannot leave. We have to have a plan on how these institutions will come out of PCA," Sanyal said referring to the Hotel California song by America's famous band Eagles. The song talks about a person who reaches mystical Hotel California, from where the person is able to check out but unable to exit. Speaking at the third annual event of Foreign Exchange Dealers' Association of India (Fedai) here, he said the ultimate aim should
GE taps retired executive, names leaders for ailing power unit
(Reuters) - General Electric Co named new leaders for its ailing power business on Monday, appointing Scott Strazik as CEO for gas power and bringing longtime GE executive John Rice back from retirement in an advisory role.
PM Modi sets sight on $5 trillion economy club
Prime Minister Narendra Modi on Monday said that the Government of India will take every possible step to take 'India to the $5-trillion club.'Speaking at the "Reflections on Ease of Doing Business" programme in the national capital, the Prime Minister said, "As per the analysis of Moody & World Economic Forum, the position of India has either gone up or is rising. We will take every possible step now to take India to the $5 trillion-club now. For that to happen, we have to improve all sectors of the economy. The change is already taking place."Termed his government's effort as remarkable, the Prime Minister said that it has helped India massively in moving up the 'Ease of Doing Business' rank. It may be noted that India was ranked 77 out of 190 countries in 2018 in the ease of doing business index."In these last four years, there has been a 180-degree change in the country when it comes to the 'Ease of Doing Business'. We are now ranked 77 from 142 in 'Ease of Doing Business'. It
IRCTC Scam: Court directs CBI, ED to produce Lalu Prasad through video conference
A Delhi court Monday directed RJD chief Lalu Prasad to appear before it through video conference on December 20 in connection with two cases related to the Indian Railway Catering and Tourism Corporation (IRCTC) scam case. Special judge Arun Bharadwaj passed the order after he was told that the accused could not appear before the court in the cases filed by the CBI and the ED, as per earlier direction, due to ill-health. The court directed both the agencies to ensure Lalu's presence through video conference from the hospital, if he is still there, or from jail. The ED, meanwhile, opposed the bail application of Prasad's wife Rabri Devi, son Tejaswi Yadav and others, who are currently on interim bail in the money laundering case, on the ground that they are influential people who can hamper the probe if granted the relief. The case relates to alleged irregularities in granting operational contract of two IRCTC hotels to a private firm. In its charge sheet, the CBI had said there was ...
Commerce Min to start consultations with FinMin on SEZ report
The commerce ministry will soon start consultations with its finance counterpart and other ministries to implement the suggestions made by a committee on revamping special economic zones (SEZs), Union Minister Suresh Prabhu Monday said. Bharat Forge Chairman Baba Kalyani-led committee, constituted by the ministry to study the existing SEZ policy, submitted its report to the commerce and industry minister here. "The suggestions of the committee are very constructive and the Commerce Ministry will immediately begin formal consultations with the finance ministry and other ministries so that implementation of the committee's recommendations may be done without any delay," the ministry said in a statement quoting Prabhu. The objectives of the committee were to evaluate the SEZ policy, make it WTO compatible, and suggest measures for maximizing utilisation of vacant land in these zones. It said the success seen by services sector like IT and ITeS has to be promoted in other sectors such as .
Expert committee to look into issues concerning capital surplus: RBI
The RBI board Monday decided to set up a high-powered committee to examine issues related to surplus capital of Rs 9.69 lakh crore with the central bank and advised it to consider a scheme for restructuring stressed assets in the MSME sector. At a nine-hour long meeting of the board, it was also decided that the Board for Financial Supervision (BFS) of the RBI would examine the issues concerning the banks that are under the Prompt Corrective Action framework, according to a release. "The Board decided to constitute an expert committee to examine the Economic Capital Framework, the membership and terms of reference of which will be jointly determined by the Government of India and the RBI," the central bank said. Further, the apex bank has been advised to consider a scheme for restructuring of stressed standard assets of MSME borrowers with aggregate credit facilities of up to Rs 25 crore, subject to such conditions as are necessary for ensuring financial stability, it added.
Danske whistleblower says big European bank handled $150 billion of payments
COPENHAGEN (Reuters) - The whistleblower who revealed alleged money laundering involving Danske Bank said on Monday that a major European bank helped process up to $150 billion in suspicious payments and two U.S. lenders were also involved.
Wall St pulled lower by Apple, trade worries
(Reuters) - Wall Street was lower on Monday as a slide in Apple shares due to demand worries hit the technology sector, while conflicting signals of a potential truce in the China-U.S. trade dispute added to market jitters.
HDFC raises Rs 500 crore by issuing masala bonds
Mortgage lender HDFC Ltd Monday said it has issued masala bonds under its MTN programme and raised Rs 500 crore. The rupee denominated bonds (RDBs), popularly known as masala bonds, are issued under the medium term note (MTN) programme, it said in a regulatory filing. The corporation has closed the said issue Monday with the issue size of Rs 500 crore," HDFC said. It will offer a coupon of 8.75 per cent per annum payable semi-annually for tenor of 5 years and 1 day. The bonds are unrated and will be listed on the LSE's International Securities Market (ISM), it said. Masala bonds are instruments through which Indian entities can raise funds by accessing overseas capital markets, while the bond investors hold the currency risk. Stock of HDFC closed 0.57 per cent up at Rs 1,898.35 apiece on the BSE.
Work on to get India in $5 trillion club soon: Modi
Reaching out to top industrialists and businessmen, Prime Minister Narendra Modi on Monday said the government is working towards making India a $5 trillion economy and for this the country will have to continue scaling up the World Bank's Ease of Doing Business (EODB) ranking.