Page 99 - Business Finance
New NPA resolution norms retain Feb 12 spirit, but offers
Two months after the Supreme Court struck down the February 12 circular, the Reserve Bank Friday issued a revised framework for resolving stressed assets by offering lenders a 30-day period to label an account an NPA but has withdrawn all other resolution methods. The new directions, effective immediately, retain the basic spirits of the February 12, 2018 circular as it mandates higher provisioning, bankruptcy options as well as do not allow any other resolution methods outside the new norms. The central bank said in a notification said the new norms provide a framework for early recognition, reporting and time-bound resolution of stressed assets. The new norms mandate lenders to put in place board- approved policies for resolution of stressed assets, including the timelines for resolution. The new framework offers some leeway on provisioning for stresed accounts, which will help banks with low capital. Now lenders will have to make 35 percent provisions--first 20 ...
Huawei signs 5G deal with Russia's biggest carrier
Chinese smartphone giant Huawei has signed a 5G development deal with Russia's biggest mobile carrier MTS as is battles the trade ban imposed by the US.
RBI issues new circular on resolution of stressed assets
The Reserve Bank of India on Friday issued a revised framework for resolution of stressed assets allowing lenders to start resolution process within 30 days of default.
Corporation banks moves insolvency plea against Adlabs Entertainment
Public sector lender Corporation Bank has approached the National Company Law Tribunal (NCLT) to initiate insolvency resolution process against theme park company Adlabs Entertainment Ltd. Adlabs Entertainment has received a notice from the Mumbai-bench of the NCLT filed by Corporation Bank to initiate Corporate Insolvency Resolution Process under Section 7 of Insolvency and Bankruptcy Code, 2016, the company said in a regulatory filing. "The Company has received a notice from NCLT, Mumbai Bench on June 07, 2019 via an email, regarding an application filed by one of the Financial Creditors of the Company i.e. Corporation Bank to initiate Corporate Insolvency Resolution Process .... ," it said. Corporation Bank, a financial creditor of the company, has claimed a default of Rs 68.84 crore, it added.
NASA to open International Space Station to tourists from 2020
NASA said Friday it will open up the International Space Station for tourism and other business ventures as of next year, as it seeks to financially disengage from the orbiting research lab. "NASA is opening the International Space Station to commercial opportunities and marketing these opportunities as we've never done before," NASA chief financial officer Jeff DeWit said in New York. There will be up to two short private astronaut missions per year, said Robyn Gatens, deputy director of the ISS.
Putin, Xi hit back at US dominance at Russia economic forum
China's Xi Jinping and Russia's Vladimir Putin hit back at US global economic dominance on Friday as they took the stage together at Russia's showcase business forum. With China embroiled in a trade war with Washington and Russia under Western sanctions, Xi and Putin lashed out at "inequalities" in the global economic system and vowed to pursue closer ties between their countries. Putin, speaking in front of political and business leaders at the annual Saint Petersburg International Economic Forum, accused Washington of seeking to "extend its jurisdiction to the whole world". Denouncing the "rhetoric of trade wars and sanctions", Putin called for rethinking the role of the US dollar in global trade and slammed US pressure against Chinese tech giant Huawei. "They are attempting not just to squeeze but to unceremoniously push (Huawei) out of the global market," Putin said. Xi said steps needed to be taken to "overcome inequalities" in the global economic system, adding: "The aspirations
Bike bot owner accused of Rs 1,300 cr fraud surrenders in court
The owner of a motorcycle taxi firm "Bike Bot", which allegedly duped over two lakh investors of more than Rs 1,300 crore through a ponzi scheme, Friday surrendered before a court here, police said. The investors, mostly retired and serving government officials, invested Rs 62,100 each in the "multi-level marketing" scheme that promised doubling the amount within a year. Sanjay Bhati and other top officials of Garvit Innovative Promoters Limited (GIPL) were wanted for cheating and nearly three dozen FIRs were registered against the firm in Greater Noida's Dadri police station, a senior official said. "He (Bhati) surrendered in the district court in Surajpur this afternoon and has been remanded in judicial custody for 14 days," Senior Superintendent of Police (SSP), Gautam Buddh Nagar, Vaibhav Krishna, said. "We will soon be appealing to the court for Bhati's police custody. He is being booked under the Gangster Act and the properties of his and other company officials will be ...
'Kids also buys toilets, apart from toys'
Kids not only buy toys but also toilets these days and this segment has huge potential for sanitaryware players, said a top official of Roca Bathroom Products Pvt Ltd, the Indian subsidiary of Spanish company Roca.
Unemployment in US stays at 3.6% with 75,000 new jobs
The unemployment rate in the US remained at 3.6 per cent in May, although only 75,000 jobs were created, the government said on Friday.
Indiabulls Real Estate promoters to exit realty biz; sell 14% stake to Embassy for Rs 950cr
Indiabulls Real Estate promoters have sold 14 per cent stake through open market transactions to Embassy Group for Rs 950 crore, as part of the group's strategy to focus on financial services and exit from realty business. Promoters have around 39 per cent stake in Indiabulls Real Estate, of which 14 per cent, representing over 6.3 crore shares, have been offloaded through bulk deal on Friday. Indiabulls Group is looking to exit the real estate business so that it can get regulatory approvals for the proposed merger of Indiabulls Housing Finance with the Lakshmi Vilas Bank. With this deal, Bengaluru-based developer Embassy group will get entry into Mumbai and Delhi-NCR, the two biggest property markets in the country. According to the bulk deal data available on the BSE, promoters entities have sold 6,30,95,240 shares to privately-held Embassy Property Developments Pvt Ltd at Rs 150.45 apiece, aggregating to nearly Rs 950 crore. At this price, the company has been valued at nearly Rs .
Delhi Metro exploring ways to implement free ride scheme for women: Sources
The DMRC is "exploring ways" to take forward the Delhi government's decision to make metro rides free for women, while keeping in mind the financial implication and technical feasibility associated with the proposal, official sources said Friday. Managing Director of the Delhi Metro Rail Corporation (DMRC) Mangu Singh and senior officials of the DTC and Delhi Integrated Multi-Modal Transit System (DIMITS) attended a meeting chaired by Delhi Transport Commissioner Rajeev Kumar at the Secretariat on Thursday, they said. Sources said, the DMRC made a presentation to the transport commissioner offering preliminary plans on executing the proposal. Announcing the proposal earlier this week, Delhi Chief Minister Arvind Kejriwal had said that his government will provide subsidy to the three public transporters for providing free rides to women commuters in DTC buses and Delhi Metro. He had said the proposal was expected to materialise in the next two-three months, extending an estimated ...
SBI MF sells Kirloskar Oil Engines shares worth Rs 59 cr
SBI Mutual Fund Friday sold 31 lakh shares of Kirloskar Oil Engines Ltd (KOEL) worth over Rs 59 crore through open market transactions. According to bulk deal data available with the NSE, SBI Mutual Fund sold 31 lakh shares of KOEL for an estimated Rs 59.39 crore with the average price being Rs 191.6 per scrip. However, the buyer could not be ascertained immediately. Shares of KOEL Friday ended at Rs 197.60 apiece on the NSE, up 3.73 per cent from its previous close. KOEL is engaged in manufacturing diesel engines, agricultural pumpsets and generating sets.
Value buying, easing of global monetary policy lift equities (Roundup)
Value buying along with hopes of greater inflows of foreign funds, following global central banks' move towards easier monetary policy stance, aided the Indian equity market to make gains after a choppy trade session on Friday.
UTI Mutual Fund writes off entire exposure to DHFL
UTI Mutual Fund Friday said it has written off its entire exposure to the securities of crisis-hit DHFL, which has defaulted on repayments. The latest developments at Dewan Housing Finance Ltd (DHFL) has added to mounting concerns over the health of Non-Banking Financial Companies (NBFC). On June 4, DHFL failed to make interest and principal payments that were due. Rating agencies -- Crisil, Icra and Care -- downgraded their ratings on the company's debt papers citing inadequate liquidity, among other factors. "In light of the above development UTI MF anticipates that there would be enhanced pressure and legal action on DHFL from all creditors, including exercise of early redemption clause and legal options by various lenders. "This is expected to further delay the recovery efforts of the company in disposal of its assets in an orderly manner," UTI MF said in a release. Considering the high level of uncertainty as to recovery timelines and value, the fund house said it has "increased .
Bank of Maharashtra cuts one-year MCLR by 0.10 pc to 8.60 pc
A day after the RBI cut the key repo rate, public sector Bank of Maharashtra Friday announced to cut the benchmark one-year MCLR by 0.10 per cent to 8.60 per cent. Bank of Maharashtra has reviewed and reduced its marginal cost of funds based lending rates (MCLR) with effect from June 7, 2019, it said in a release. The one-year MCLR is the benchmark against which most customer loans such as auto, personal and home loans are priced. Among other loan tenors, the overnight MCLR will attract an interest of 8.15 per cent, down by 0.05 per cent, while the three-month tenor rate has been slashed by an equal margin to 8.40 per cent. The Reserve Bank in its second bi-monthly policy decision announcement Thursday cut the repo rate -- at which it lends to banks -- by 0.25 per cent to 5.75 per cent, aimed at spurring demand and boost the economy. RBI Governor Shaktikanta Das had expressed concerns that banks were slow in transmitting the benefits to the consumer despite successive rate ...
RBI issues revised norms on stressed assets
The Reserve Bank of India (RBI) on Friday released fresh guidelines to deal with bad loans, which mandated banks to start the resolution even if there was a one-day default.In February 2018, the RBI had issued a framework on the resolution of stressed assets under which banks were asked to initiate resolution or restructuring of loans worth Rs 2,000 crore or more even if there was a single day of default. However, the Supreme Court had called this framework 'ultra vires.'The RBI has now revised the circular and said that a lender should initiate a resolution plan before the loan default. It should have the board approved policies for the resolution of stressed assets.In the revised prudential norms on stressed assets, the RBI said that in case of a default by a borrower, lenders have to undertake a prima facie review of the borrower account within 30 days from such default (called the review period).During this review period, lenders may decide on the resolution strategy, including ...
RBI overhauls prudential norms for stressed assets' resolution
The Reserve Bank of India (RBI) on Friday issued new guidelines for dealing with non-performing assts (NPA) after the Supreme Court quashed its February 12, 2018, circular, which had mandated the lenders to start resolution even in case of one-day default, leading to huge protests from various quarters, particularly defaulters from the power sector.
Bailadila iron ore Deposit-13 being developed by JV: NMDC
State-owned NMDC Friday said Bailadila iron ore Deposit-13 is being developed under a JV, while making it clear that its mining lease will not be transferred to Adani Enterprises which is a mine-developer-cum-operator for the project. Deposit-13 is being developed by NCL -- a JV between NMDC and Chhattisgarh Mineral Development Corporation (CMDC). NCL CEO V S Prabhakar said the lease holder for Deposit-13 is NCL and except for NCL, none can transfer the lease to anyone. "But some people having vested interest are spreading propaganda that the lease has been transferred to Adani Enterprises for a period of 25 years which is not true," he told PTI over phone. Adani Enterprises can only excavate iron ore and deliver it to the rail head, he added. In a statement, NMDC said the 10 mtpa capacity Bailadila iron ore Deposit-13 in Chhattisgarh is being developed under the JV NMDC-CMDC Ltd (NCL). NMDC holds 51 per cent in the JV, while CMDC holds 49 per cent. "Mining lease will be transferred ..
FORME announces ground breaking ceremony for first industrial park in India
The mobile phone company FORME, headquartered in Shenzen, China held its first ground breaking ceremony in Greater Noida.This comes after the company has signed a memorandum of understanding with the Uttar Pradesh government in September 2018 to invest Rs 150 crores, over the next three years in two phases.Along with Jiang Delong (Executive Chairman), Qiong Su (Executive Director - FORME, India), Alok Sinha, ACS, Electronics and IT, Government of UP (Chief Guest) and Narendra Booshan, CEO-GNIDA (Guest of Honor) did the honours of ground breaking ceremony.It is one of the largest and first completely integrated industrial park in this area with an acquired land size of 3.5 acres and total investment of 150 crores."The company will invest 6,670.93 lakhs in the Phase 1 and 8,941.65 lakhs in Phase 2 and will create direct as well as Indirect employment opportunities for upto 1000-5000 people", Qiong Su, Director FORME, India.FORME group was established in the year 2006, with Jiang Delong .
Goyal calls for big push to boost exports
Minister of Commerce and Industry Piyush Goyal on Friday called for easy availability of credit at a low interest rate to boost exports of goods and services to two trillion US dollars in the next five years.It is the joint responsibility of banks and government to ensure that export credit at competitive rates is available to businesses, said Goyal while addressing a meeting in the national capital.In 2018-19, the overall exports (merchandise and services) reached a new peak of 535.4 billion dollars, attaining a growth of 7.97 per cent."We have to develop a framework with a stable policy that is internationally acceptable, consistent and robust. And then look for solutions within that framework based on trust, integrity and due diligence," he said."Greater transparency has to be brought into the work being done by government organisations, export promotion councils, and financial institutions," said Goyal.He said that timely and efficient availability of export credit is critical for