News digest: Bank branch additions, Sebi on MCX insider trading, and more

Branch additions drop as Modi govt's digital push changes banking sector

The government’s digital push, the rising use of technology in back-end processes, and the growing market for financial technology products have changed the banking landscape.

The Reserve Bank of India’s (RBI’s) May 2017 guidelines shifted the focus from branches to banking outlets, which include banking correspondents along with branches. The revised guidelines work well with the banking sector’s tilt towards partnerships.

After 'hiatus', Arun Jaitley sees green shoots of economic recovery

Finance Minister Arun Jaitley said on Saturday that structural changes brought in by measures such as the introduction of the goods and services tax (GST) had created a “hiatus” in the economy. But the economy was already showing signs of revival, he added. The FM also sent out a strong message to the banks asking them to perform after the Union government pumps in money to recapitalise them. “Resilience of the banking system is under test,’’ he said.
Sebi revokes penal order against 7 in MCX insider trading case

The Securities and Exchange Board of India (Sebi) has revoked its last year’s interim order against seven individuals in an insider trading case pertaining to share trading of the Multi Commodity Exchange of India (MCX).

The markets regulator found no violation of insider trading guidelines by the “seven notices”. A few of them were also denied cross-examination opportunities, it observed.
READ MORE

News digest: PSB recap, Aadhaar data breach, Vodafone-Idea merger, and more

Govt seeks nod for Rs 800-billion PSB recapitalisation through bonds

The Finance Ministry sought Parliament’s approval to spend Rs 800 billion extra this fiscal year to recapitalise state-owned banks through bonds. Thursday’s move kick-starts the Rs 1.35-trillion bank recapitalisation bond programme announced by Finance Minister Arun Jaitley in October to help public sector banks come out of the spiralling non-performing asset mess. Read more

UIDAI begins probe on breach of Aadhaar database, initiates FIR

The Unique Identification Authority of India has begun investigations into a report that claimed access to its database of identity details of more than a billion citizens was being sold for just Rs 500 on social media. Read more

Idea Cellular plans to raise Rs 67.5 billion before Vodafone merger

With Idea Cellular reporting increased losses after a merger with Vodafone’s Indian subsidiary was announced in March last year, the Aditya Birla (AB) group announced a two-part plan to raise Rs 67.5 billion. The fund infusion is necessary as it will enable both firms to go ahead with the mega merger, scheduled to close by the middle of this year. Read more

Lenders plan Aircel, GTL Infrastructure merger to clear combined debt

Lenders to Aircel and GTL Infrastructure have come up with a solution to clear the combined debt of the firms. They are looking at the option to merge the firms so that the new entity gets a stable earning. Read more

READ MORE

News digest: GST revenue collection, green number plate on e-cars, and more

Taxman plans to match GST invoices to plug revenue leakage

The GST Council may move the sales and purchase invoice matching system to the back end. It will do so to keep tabs on missing transactions and check over-claim of input tax credits in the goods and services tax (GST). Read more

Ola, Uber focus on tie-ups with mass transit firms to tap new users in 2018

After witnessing slowing growth over the past 18 months, India’s ride-hailing bigwigs are partnering mass transit companies. Both Ola and Uber have been tying up with mass transit companies, setting up easy-booking kiosks at metro stations and airports to grow user base. Read more

Modi's aim to contain fiscal deficit: Two options exist, both are painful

Prime Minister Narendra Modi wanted minimum slippage from the fiscal deficit target of 3.2 per cent of gross domestic product (GDP) for 2017-18, sources said. Read more

Electric cars may soon sport green number plates

Indian roads may see a new colour on the number plates of cars — a green one, with the NITI Aayog planning such a move for electric vehicles. Read more
READ MORE

News digest: GST e-way Bill, Rahul Gandhi's elevation, and more

GST Council firm on e-way Bill despite traders' concern

An electronic system to track movement of products under the goods and services tax (GST) system will be put in place across the country (inter-city as well as intra-city) by June 1, 2018. Read More...

More traders paying taxes on GSTN: Sushil Kumar Modi

The proportion of tax-paying traders has increased to 70 per cent of those registered on the Goods and Services Tax Network (GSTN) as the technology backbone built by Infosys has begun to stabilise and make it easier for them to file returns, said Bihar Finance Minister Sushil Kumar Modi on Saturday. Read More...

Rahul Gandhi takes charge of the grand old party

Rahul Gandhi on Saturday took charge as president of the Congress in the presence of the 132-year-old party’s brass and his family members. Read More...

UIDAI suspends Airtel, Airtel Payments Bank's e-KYC licence

In its strongest action yet, the UIDAI has temporarily barred Bharti Airtel and Airtel Payments Bank from conducting Aadhaar-based SIM verification of mobile customers using the eKYC process as well as e-KYC of payments bank clients. Read More...

US may stop spouses of H1B visa holders from working

The Trump administration is considering revoking an Obama-era rule that extends work authorisation to the spouses of H1B visa holders, a move that could affect thousands of Indian workers and their families. Read More...
READ MORE

News Digest: Hard time for Tata Nano, robust FPI inflows, and more

India-focused funds continue to see robust inflows
After sharp outflows in August and September, the Indian market is once again experiencing a positive investment spell from overseas investors. Foreign portfolio investors (FPIs) have poured nearly $3 billion into domestic stocks since August. A large part of these flows have come from India-focused offshore funds. These are actively managed funds that exclusively invest in select Indian securities, unlike exchange-traded funds (ETFs) which track indices such as the Nifty 50 or the S&P BSE Sensex.
Read more

Dealers stop placing orders for Tata Nano

Tata Motors’ Nano, the cheapest car launched in recent times, is now also among models clocking lowest monthly production and sales volume (in double digits to be precise). The average daily production of just two Nano cars at the company’s Sanand plant is indication enough that this vehicle is now as good as obsolete. Dealers of Tata Motors in most parts of the country have stopped placing orders for this small car in the last three-four months and the showrooms are displaying contemporary models such as Tiago, Tigor, Hexa and Nexon. Read more

Tyremakers to invest Rs 35,000 crore in 5 years

During the same time last year, the capacity utilisation of the tyre industry was 65-70 per cent. It is not only growth in the automobile industry that has helped the tyre segment. Growth has been aided by government policies also, said Satish Sharma, chairman, Automotive Tyre Manufacturers’ Association (ATMA), which claims to represent about 90 per cent of tyremakers. Read more

Are you a credit risk? Banks dig deep in your phone to find out

Indian banks have started mining data on customers’ smartphones for fast loan approval, testing out cutting-edge but controversial technology in what is potentially a huge market for such products. Long hampered from lending to the hundreds of millions of Indians without credit histories, banks are hoping to slash risk-assessment costs and trigger a new wave of consumer lending with apps that look at everything from Facebook connections to online shopping habits to rate potential borrowers. Read more 
READ MORE

News digest: S&P holds India rating, insolvency ordinance, and more

S&P refuses to do a Moody's; maintains status quo on India's rating

Credit rating agency Standard & Poor’s (S&P) on Friday retained India’s sovereign rating at the lowest investment grade with a stable outlook. It attributed its decision to a weak fiscal position, particularly of states, high government debt, and low per capita income.

S&P’s rating remains at BBB-, one notch above junk and a notch below what Moody’s Investors Service upgraded India to recently. Read more

India needs to look beyond Buenos Aires, says Suresh Prabhu

With a little over a fortnight left before the World Trade Organization’s biennial ministerial conference gets underway at Buenos Aires in Argentina, Commerce and Industry Minister Suresh Prabhu tells  that India should focus on strategising how to scale up its exports in tandem with the economy reaching the $5 trillion mark in less than a decade. Read more

Cancer, cardiac among 51 essential drugs under NPPA price cap

National drug pricing regulator NPPA on Friday said it has capped prices of 51 essential formulations, including those used for the treatment of cancer, pain, heart conditions and skin problems. The prices have been slashed in the range of 6 to 53 per cent. Read more

Insolvency Code ordinance: Promoters' loss is PEs' gain

Private equity (PE) players are getting ready to bid for stressed assets, which they expect to bag at attractive valuations after an ordinance amended the Insolvency and Bankruptcy Code (IBC). The ordinance has practically barred most promoters of the defaulting companies from bidding for their assets in the bankruptcy auction. Read more
READ MORE

News digest: Lotte buys Havmor Ice Cream, clouds over Rafale, and more

Insolvency ordinance: Defaulting promoters set to lose their companies

An ordinance amending the Insolvency and Bankruptcy Code (IBC) has practically barred promoters of companies undergoing the resolution process from bidding for their own companies when they are auctioned as part of bankruptcy proceedings. Read more

South Korea's Lotte Confectionery buys Havmor Ice Cream for Rs 1,020 crore

South Korea’s Lotte Confectionery has acquired Ahmedabad-headquartered ice cream maker Havmor Ice Cream Ltd (HIL) for Rs 1,020 crore in an all-stock deal. Read more

Clouds over fighter jet: How much did Rafale actually cost?

Has the Indian Air Force (IAF) paid more per Rafale fighter than what Prime Minister (PM) Narendra Modi had undertaken in Paris whilst announcing his agreement with French President Francois Hollande to buy 36 aircraft from French vendor, Dassault? Read more

Govt vows to keep web access equitable

At a time when the US’ Federal Communications Commission has decided to replace the net neutrality rules, the Indian government has vowed to keep cyberspace equal for everyone and not allow any firm to restrict people’s access to the web. Read more

Over my birthday dinner, the family pledged 10% wealth: Sunil Mittal

Sunil Bharti-led Bharti Group has pledged Rs 7,000 crore, which is 10 per cent of its family wealth, for philanthropy. A large chunk of this will be used to set up Satya Bharti University for Science and Technology, modelled on MIT, Stanford, and Berkeley.
READ MORE

News digest: Tweaks in IBC code, clouds over Rafale deal, and more

Tweaks in IBC code to block wilful defaulters

Wilful defaulters, dubious promoters as well as those involved in fraudulent transactions would not be able to bid for companies going insolvent, with the Centre deciding to amend the Insolvency and Bankruptcy Code.

The Cabinet approved an ordinance on Wednesday. The amendments would come in force with immediate effect (after the President promulgates it), Finance and Corporate Affairs Minister Arun Jaitley said after the meeting.

Jio & Airtel to use customer bank to challenge Paytm

Reliance Jio and Bharti Airtel are set to declare war on Paytm — king of mobile wallet business that launched its payments bank in May. The telcos are leveraging their mobile customer base and distribution network in trying to compete with Paytm.  Jio is already signing up a large number of merchants on its soon-to-be-launched payments bank.

Task force to draft new direct tax law

The government has brought back the main author of the now junked Direct Taxes Code (DTC) as a convenor of the task force to review the decades-old provisions of the Income-Tax Act and draft a replacement. The government has, however, already implemented many provisions of the draft DTC, such as the General Anti-Avoidance Rules (GAAR) and on Place of Effective Management.
READ MORE

News digest: Bharat-22 ETF, GST rate cut, Mallya's trial, and more

SoftBank set to take driver's seat in Ola

Japanese investment giant SoftBank is close to acquiring an additional 10-12 per cent stake in ANI Technologies, the parent company of Ola, to increase its holding in the ride-hailing firm to around 50 per cent ahead of its planned investment in global rival Uber. SoftBank will pay between $400 million and $500 million to Tiger Global, the second-largest backer of Ola, to give the US firm a partial exit, people familiar with the development told Business Standard on condition of anonymity. Read more

Reliance Industries, Adani, REC issue $1.7-billion bonds

Reliance Industries, Adani Abbot Point Terminal, and Rural Electrification Corporation (REC) on Monday launched bond issues overseas worth $1.7 billion in order to reduce their finance costs. The bond issues follow last week’s upgrade by Moody’s of India’s sovereign rating from the lowest investment grade Baa3 to a notch higher at Baa2. The agency has also upgraded the ratings of several public sector companies such as State Bank of India, Indian Oil Corporation, Oil and Natural Gas Corporation, and NTPC as well as those of private sector lender HDFC Bank. Read more

Vijay Mallya's extradition trial confirmed from December 4

Vijay Mallya, 61, the beleaguered Indian businessman facing an extradition demand from the Indian government in a British court, will fight the attempt to drag him back to India not just on the issue of poor prison conditions in India, but on the alleged demerits of New Delhi’s argument. Read more
READ MORE

News digest: INS Kiltan joins Navy, wholesale inflation falls, and more

Markets sparkle ahead of Diwali as Sensex, Nifty gain 0.6% each

The Diwali week started on a positive note with the benchmark Sensex and Nifty indices ending at new record highs. Positive global markets and the ebbing of foreign investor selling saw the benchmark indices gain 0.6 per cent and the rupee appreciate 0.3 per cent against the dollar. Read more

Like all its predecessors, INS Kiltan joins Navy with major vulnerabilities

Like numerous Indian warships before it, the navy’s newest anti-submarine warfare (ASW) corvette, INS Kiltan, joined the fleet on Monday without equipment crucial for discharging its primary role – detecting and destroying enemy submarines. Read more

Wholesale inflation falls to 2.6% in September

The Wholesale Price Index (WPI)-based inflation data released on Monday provided yet another indicator of improving macroeconomic parameters.
 Wholesale inflation fell to 2.60 per cent in September from 3.24 per cent in August due to a subdued rate of price rise in food items, particularly vegetables.  Read more

RBI governor calls for better access to currency swap lines

The governor of the Reserve Bank of India on Sunday called on major central banks to extend their network of currency swap lines deep into emerging markets, saying a type of “virtual apartheid” in the provision of foreign currencies hampers efforts to fight financial instability

News digest: RBI monetary policy review, Mallya held in UK, and more

Excise duty on petrol, diesel cut by Rs 2/L; Govt may suffer Rs 26k-cr loss

Facing public resentment over the recent spike in fuel prices, the government on Tuesday cut the excise duty on both branded and unbranded petrol and diesel by Rs 2 a litre from Wednesday. According to sources, the finance ministry was initially reluctant to reduce the duty due to revenue concerns, but relented after discussions with the petroleum ministry on implementing steps to bring down petrol prices to Rs 60-65 a litre.

Monetary policy review: Why RBI might not cut rates today

The six-member Monetary Policy Committee (MPC), headed by Reserve Bank of India Governor Urjit Patel, will announce its interest rate decision today. Analysts largely expect the central bank to maintain the status quo, but add there could be a rate cut later in the financial year. There are also some who see the rate-cut cycle, which started on January 15, 2015, by bringing down the repo rate to 7.75 per cent from 8 per cent, to have reached its end.

PE firms make record exits of $9.4 billion in 2017

Private equity (PE) investors have sold a record $9.4 billion worth of shares in the first nine months of the year, against the previous high of $6.6 billion in 2016.
READ MORE