Page 3434 - Business Finance
Banks' NPAs status to worsen to over 12% by fiscal-end: RBI
The gross non-performing assets (GNPAs), or bad loans, ratio in the Indian banking system is likely to rise from 11.6 per cent in March 2018 to 12.2 per cent by the end of March next year, the Reserve Bank of India said on Tuesday.
RBI calls for greater vigilance on macr0-eco front; red flags NPAs
The RBI today called for greater vigilance on the domestic macro-economic front saying conditions, which pushed GDP growth to 7.7 per cent in March 2018 quarter, are changing and warned that bad loan situation might worsen. The economy appears to be gathering strength although global commodity price swings and turbulent capital flows are a constant reminder to our fast-growing economy that there can be little scope for complacence, if at all any, said RBI Deputy Governor Viral Acharya in a foreword to the Financial Stability Report. While economic growth is firming up, conditions that buttressed fiscal consolidation, inflation moderation and a benign current account deficit over the last few years are changing, thereby warranting caution, the report said. "In the domestic financial markets, structural shifts are altering the pattern of credit intermediation and impacting market interest rates. "These developments call for greater vigilance on the domestic macroeconomic front to ...
Goa govt to pay Rs 300 cr to five SEZ promoters as settlement
The Goa Industrial Development Corporation has agreed to pay Rs 300 crore as an "amicable settlement" to five companies that had purchased land in the proposed SEZs in the state, which were scrapped later. The erstwhile Digambar Kamat government had in 2008 scrapped the SEZ proposal following protests by local people. The decision adversely affected seven companies that had made investments for buying land in south Goa and North Goa. Subsequently, they approached the Supreme Court against the government's decision. The apex court in February this year directed the Goa government and the promoter companies to work out an amicable solution in this regard and fixed the next hearing in July. GIDC chairman Glenn Ticlo told reporters today that five of the seven companies have approached the corporation with the proposal to unlock 38 lakh square metres of the land which was allotted to them under SEZ. "Five SEZ promoter companies--K Raheja & Corporation, Peninsula Pharma ...
UAE's Emirates to build world's largest vertical farm in Dubai
Dubai, June 26 (IANS/WAM) The United Arab Emirates (UAE) flagship carrier Emirates Airline has launched a joint project with US Crop One Holdings to build the world's largest vertical farming facility near Dubai's Al Maktoum International Airport, it was announced on Tuesday.
General Electric breaks off healthcare to focus on power, aviation
Once-dominant industrial giant General Electric announced today it will shed its healthcare business to concentrate on power and aviation, in the latest attempt to shore up the struggling company. After a year-long strategic review, "GE will focus on Aviation, Power and Renewable Energy, creating a simpler, stronger, leading high-tech Industrial company," the company said in a statement. It also will "fully separate" its interest in oil services firm Baker Hughes (BHGE), of which it holds 62.5 per cent. The plan is to "separate GE Healthcare into a standalone company, pursue an orderly separation from BHGE over the next two to three years, make its corporate structure leaner and substantially reduce debt." GE chief John Flannery said the company is "aggressively driving forward as an aviation, power and renewable energy company -- three highly complementary businesses poised for future growth." The restructuring will "make GE simpler and stronger," he said. The company said it expects
Anant Barua appointed whole-time member of SEBI
Anant Barua has been appointed as a whole-time member of the Securities and Exchange Board of India (SEBI), according to an official order. Barua, at present, executive director in the market regulator, has been appointed to the post for three years on the pay as admissible to additional secretary to the central government or a consolidated salary of Rs 4 lakh per month, the order issued recently by the Personnel Ministry said. He took charge as the executive director of SEBI in May 2010. Prior to this assignment, he was legal adviser, Legal Affairs Department (LAD), SEBI. He had been working in the LAD since 1992. Barua is a commerce graduate with LLB from the University of Delhi. He was on deputation to the Central Bank of Bahrain as legal adviser and has also worked with the Industrial Finance Corporation of India (IFCI), National Fertilizers Ltd. (NFL) and DCM Ltd, according to the market regulator.
LVB board approves up to 15 cr equity share issue, Rs 250 cr fund raise via bonds
Lakshmi Vilas Bank (LVB) today said its board has approved an issue of up to 15 crore equity shares or convertible securities to raise funds, estimated to be around Rs 1,695 crore. The board also approved a proposal to raise up to Rs 250 crore through issue of bonds, debentures or securities on private placement basis. The board today resolved to issue up to 15 crore equity shares or any other securities convertible into equities shares through one or more modes including qualified institutions placement, ADRs, GDRs or foreign currency convertible bonds (FCCBs), the private lender said in a regulatory filing. On the basis of today's closing price of Rs 113.05 on BSE, the bank could raise up to Rs 1,695.75 crore by equity share issue. "The board of directors passed enabling resolution for raising of funds through issue of bonds/debentures/securities of the bank on private placement basis, for an aggregate amount of up to Rs 2,500 million," it said in a regulatory filing. The board has
Jet Airways may start 737 Max ops from Jul 1 on Mum-Hyd route
Full service carrier Jet Airways is likely to commence operations of 737 Max aircraft from early next month, with the first flight to be operated to Hyderabad from here, according to an industry source. The airline, which took the delivery of the first 737 Max last week, is also expected to deploy the latest fuel-efficient plane from US aircraft maker Boeing initially to Abu Dhabi and Dubai besides on domestic destinations such as Bangaluru, Chennai, Hyderabad, Goa, Jaipur Mangalore and Thiruchirapally, the source added. "Jet Airways' 737 Max 8 is likely to take off on July 1, with its maiden flight to Hyderabad from Mumbai," the source said. This will also make Jet Airways the first Indian carrier to operate such a plane. The new single-aisle aircraft, which will be a critical element for the future growth strategy of the airline, was delivered to Jet Airways at the Boeing's Washington-based Renton facility on June 19. The 737 Max can seat between 130 and 230 ...
Flex Ltd inks MoU with AP govt for plant at Sri City SEZ
The Andhra Pradesh government, seeking to become a hub of electronic devices manufacturing, today signed an MoU with US-based Flex Ltd's Indian arm for setting up a plant at the Sri City Special Economic Zone in Chittoor district for making "intelligent products". The MoU between Flextronics Technologies (India) Pvt Ltd and the state government was inked by Flexs President (Global Operations and Components) Francois Barbier and Principal Secretary (Information Technology) K Vijayanand. Chief Minister N Chandrababu Naidu and IT Minister N Lokesh were present on the occasion when the deal was signed at the Secretariat, an official release said. Flex, which has its manufacturing facilities in over 30 countries and employs over two lakh people, was committed to investing Rs 585 crore on its proposed facility near Tirupati and provide jobs to 6,600 people, the release from the Chief Minister's Office said. It will manufacture a range of intelligent products at the plant, the
'Mutual Fund sector likely to see double-digit growth in FY19'
ICICI Prudential Mutual Fund today said it was expecting the industry's assets under management (AUM) to grow in the low double digits in the current fiscal. "The AUM of the mutual fund industry in FY18' has grown by 27 per cent to USD 355 billion. This year, there will be some slowdown but expected to grow in low double digits," ICICI Pru MF Fund Manager Mittul Kalawadia said. Till May 2018, the total AUM of the mutual fund industry was at USD 335 billion. Kalawadia said that in the 2018-19 fiscal, the market will remain volatile, due to macro-economic factors, both at the domestic and international levels. The pharma and healthcare sectors were expected to do better in the long-term, he said. In order to tap this opportunity, it has launched the ICICI Prudential Pharma Healthcare and Diagnostics (P.H.D) Fund. The equity scheme will invest in pharma, healthcare, hospitals, diagnostics and insurance sectors. The NFO opened for subscription on June 25 and will close on ...
NPA situation likely to worsen further, says RBI
Painting a gloomy picture of the banking sector, the RBI today said gross bad loans as percentage of total advances of banks are likely to rise from 11.6 per cent in March 2018 to 12.2 per cent by the end of the current fiscal. In its Financial Stability Report (FSR), the RBI said stress in the banking sector continues as gross non-performing advances (GNPA) ratio rises further. "Macro-stress tests indicate that under the baseline scenario of current macroeconomic outlook, SCBs' (scheduled commercial banks) GNPA ratio may rise from 11.6 per cent in March 2018 to 12.2 per cent by March 2019," it said. Referring to the 11 state-owned banks under prompt corrective action framework (PCA), the RBI said they may experience worsening of their GNPA ratio from 21 per cent in March 2018 to 22.3 per cent by this fiscal-end. Of the 11 banks, six are likely to experience capital shortfall relative to the required minimum CRAR (Risk-weighted Assets Ratio) of 9 per cent. The 11 banks under PCA ...
Sebi orders open offer for NDTV
Regulator Sebi today ordered a little-known entity, Vishvapradhan Commercial, to make an open offer for NDTV Ltd for indirectly acquiring control of up to 52 per cent stake through a convertible loan of Rs 350 crore in 2009 'sourced' from a subsidiary of Reliance Industries Ltd. The ownership of Delhi-based 'wholesale trading' firm Vishvapradhan Commercial Private Ltd (VCPL), incorporated in 2008, is said to have later changed hands from RIL to Nahara group, from which the Mukesh Ambani-led firm had bought Infotel Broadband in 2010 to re-enter the telecom business. The order follows a probe into alleged violation of takeover norms by VCPL regarding the loan with a 10-year tenure ending July 2019, with various clauses giving it control for up to 52 per cent of the media firm, the regulator said. Separately, Sebi is also understood to have issued show-cause notices in this case to NDTV's promoters -- Prannoy Roy, his wife Radhika Roy and their holding firm RRPR -- for alleged ...
IndusInd Bank to acquire IL&FS' brokerage business
Private sector lender IndusInd Bank today said it is acquiring infra lender IL&FS' brokerage business for an undisclosed sum. The city-based lender, which has recently got the final nod for a merger with microlender BFIL, has received the Reserve Bank go-ahead for acquiring IL&FS Securities Services, it said in a statement. "The acquisition will help us scale up the present capital market business in the bank and bring new specialised products, hitherto not offered by us, to our clients," said Romesh Sobti, managing director and chief executive officer, IndusInd Bank. Incorporated in 2007, the brokerage offers clearing of exchange traded derivatives, depository and custodial services and has over 1,000 broker client accounts, FPIs and FIIs, the statement said, adding that its platform sees three million transactions a day. It had clocked revenues of Rs 324.5 crore in FY18 versus the previous fiscal's Rs 342.65 crore, and a post tax net of Rs 45 crore. A ...
Govt hopeful of a favourable verdict on SC/ST (Prevention of Atrocities) Act
The government is hopeful of a favourable verdict from the Supreme Court on the SC/ST (Prevention of Atrocities) Act as it had done on reservation in promotion in jobs, Union Social Justice and Empowerment Minister Thaawarchand Gehlot said today. At an event to list out the achievements of his ministry in the past four years, Gehlot said they were awaiting the outcome of its review petition against the Supreme Court's March 20 order putting safeguards on arrests under the legislation, before taking any legislative measure to insulate the Act from further judicial scrutiny. He said whether the government would move Parliament for a law or bring an ordinance "will only depend on the outcome of the hearing on the review petition". The government had earlier planned to bring an ordinance to overturn the Supreme Court's March 20 verdict putting safeguards on arrests under the SC/ST (Prevention of Atrocities) Act and subsequently introduce a bill to incorporate the legislation in the Ninth .
Wall Street rebounds slightly with help from GE, tech stocks
(Reuters) - U.S. stocks rose on Tuesday, with gains for General Electric and technology stocks helping Wall Street recoup some losses from a day earlier on escalating global trade tensions.
DSP Group bullish on expanding operations under new identity
Financial Services firm DSP group, which will be buying out BlackRock's 40 per cent stake in DSP BlackRock Investment Managers Pvt. Ltd. is optimistic on expanding operations under a new identity, an official said on Tuesday.
Govt debt rises to Rs 76.94 lakh crore in Q4 FY18
Government debt rose 1.7 per cent to over Rs 76.94 lakh crore in the January-March period of 2017-18 fiscal over the previous quarter. The debt was Rs 75.66 lakh crore (Rs 75,66,215 crore) as of December 2017, according to the Quarterly Report on Debt Management released today. At this level, the ratio of outstanding liabilities of the central government to GDP worked-out to be 45.9 per cent at end-March 2018. Public debt accounted for 88.7 per cent of the total outstanding liabilities at end-March 2018, while the share of 'Public Account' liabilities was 11.3 per cent. "About 26.2 per cent of outstanding stock of G-Secs has a residual maturity of up to 5 years at the end of March 2018," the report said, adding that this implies that over the next five years, around 5.2 per cent of outstanding stock, on an average, needs to be repaid every year. "Thus, the roll-over risk in the Debt Portfolio continues to be low," it said. During the fourth quarter of 2017-18, the central government ..
Nissan to set up digital hub in Kerala
Moving a step forward for setting up a digital innovation hub of Japanese auto major Nissan Motors in Kerala, the state government today issued an order to allot land to the company at nearby Technocity. Once operations commence at the campus, to be named as 'Nissan Knowledge City, it is expected to generate 3,000 jobs directly and much more indirect employment opportunities. Announcing the release of the land transfer order, Chief Minister Pinarayi Vijayan said in a Facebook post that government would allot 30 acres of land in the first phase and another 40 acres in the second phase at Technocity. He claimed that the digital hub of Nissan, a major initiative of the CPI(M) led LDF government, would accelerate the growth of IT based industries in the state. Meanwhile, a release from Technopark said the digital hub would be a research and development facility that would be shared by the Renault-Nissan-Mitsubishi Alliance, a Franco-Japanese strategic partnership. Nissan's ...
NRB Industrial Bearings acquires 35% stake in Korta India
Pursuant to the Agreements NIBL, purchased 35% of the paid up share capital of the Korta India. TSS subscribed to 45.02% of the paid up shares capital of Korta India. TSS proposes to acquire the balance 19.98% of the paid up equity share capital of Korta India from Korta Spain upon fulfilling on certain conditions precedent.
Prabhu seeks investments from Australian pension funds
Commerce and Industry Minister Suresh Prabhu today sought investments from Australian superannuation or pension funds in sectors including industrial corridors, ports, smart cities, airports and railway projects. Prabhu, who is in Australia for a two-day visit, said this while addressing nearly 25 Australian superannuation funds in Sydney. The minister addressed representatives of these funds, who have huge investible assets. He informed them about the steps being taken by India to attract investments and about the opportunities existing in India. "He mentioned that the high growth of the Indian economy has largely been driven by the private sector and invited the Australian Superfunds to invest in India," the commerce ministry said in a statement. "Investment opportunities in various infrastructure projects such as industrial corridors, ports, smart cities, airports and railway projects were highlighted by him," it added. Australia's superannuation funds are valued at 2.6 trillion ...