Business Archives - الصفحة 4 من 5

On Friday, Enforcement Directorate searched the Mumbai house of Yes bank founder Rana Kapoor. Also, the agency launched a money laundering probe against him. Fearing that Mr. Kapoor and other former directors of the bank could leave the country, the agency issued a lookout notice against them.

Restructuring Yes bank management

The Reserve Bank of India took over board of the bank for 30 days to restructure its finances. Also, it put a cap of Rs. 50,000 on withdrawal for Yes bank customers. The finance ministry said in its notification that the withdrawal cap will remain effective till April 3. RBI has appointed former SBI CFO Prashant Kumar as administrator of the beleaguered Yes Bank.

Union Finance Minister listed malpractices

Nirmala Sitharaman said that malpractices by top leadership of the bank were among the top reasons for centre’s decision to restructure the management of the bank. Ms. Sitharaman, in a press conference, said that RBI had been monitoring Yes bank since 2017.

The RBI noticed serious governance issues with Yes bank. There was a culture of weak compliance. Also, there were wrong asset classifications together with risky credit decisions. Ms. Sitharaman said that RBI started getting clear indications about the said issues before it decided to restructure the Yes bank board.

Investigation in Yes bank

Law enforcement agencies didn’t rule out malpractices by top leadership. A member even resigned after CBI put pressure. Mr. Rana Kapoor was ordered to step down after his request for extension of his term was turned down by the RBI.

Source: https://bit.ly/39BItqo

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Business News & Politics

Global Sensex Tanks Amid Fear Of Coronavirus Spread

HT News مارس 7, 2020

On Friday, domestic stock markets witnessed sharp loss in early trade sell off amid fear of recession due to spread of coronavirus pandemic. RBI’s action of saving the beleaguered Yes Bank and possible ramifications of that action further dented the Dalal Street sentiments.

Here’re 7 big things about stock market

The S&P BSE Sensex index hit 37,011.09 points that was 1459.52 points down. And the NSE Nifty benchmark dropped to 441.60 points that was 10,827.40 points down. But the market trimmed some of the losses in the day.
Yes Bank, IndusInd Bank, Tata Motors, SBI, Tata Steel and Zee Entertainment were the top losers. They traded between 5.16% and 25%.
Yes Bank shares were trading at Rs. 17 that was 51% down after RBI suspended the Yes Bank board for 30 days. Also, it imposed a withdrawal limit of 50,000 on account holders till April 3.
All the 11 sectors on the National Stock Exchange (NSE) including state-run banks, automobile and metal stocks were the worst hit.
Panic selling was also visible in the broader markets. The BSE Midcap and Smallcap indices were down by 2.3% and 1.9% respectively.
For the first time since 2018, rupee weakened past the 74-per-dollar mark due to plunge in equity markets.
In the US, Wall Street tumbled overnight with shares of banks and travel companies taking a huge hit.

Source: https://bit.ly/39zR0dI

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Business

India Becomes 5th Largest Economy Of The World

HT News فبراير 25, 2020

IMF’s October World Economic Outlook places India as the world’s fifth largest economy. The data says that according to the nominal GDP, India ranking is ahead than that of France and the UK.

IMF ranks India as 5th largest economy

The data shows that India’s GDP had been among the highest in the last decade. India achieved an annual growth of 6-7%. 2016 McKinsey Global Institute report gave many reasons for this growth. It said that urbanization and technologies improved efficiency and productivity. But the country’s real GDP was forecast to slow due to credit weakness.

Indian economy on the rise

In 2010, India was placed at 9th place behind countries like Brazil and Italy. But the country witnessed a dramatic rise in the last two and a half decade. The country’s nominal GDP has jumped more than 700% since 1995.

Challenges ahead for Indian economy

The country has many challenges to face despite showing strong potential to high growth. The World Bank report says that access to development and new opportunities has been uneven in the country.

According to UN, one-quarter of world’s poor live in India; only 39% of Indian population has access to sanitation facilities and nearly half of the Indians still defecate in the open.

Milestones achieved

The country achieved significant milestones in poverty reduction that is highest in the world. Today 160 million fewer people live in extreme poverty in 2000 compared to 2015. Also, the country is looking for more ways to ensure sustainable and inclusive future growth.

Source: https://bit.ly/3931YrK

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Business News & Politics

Mukesh Ambani Showered Praises On Satya Nadella

HT News فبراير 25, 2020

Reliance Industries Ltd (RIL) Chairman and Managing Director Mukesh Ambani and Microsoft CEO Satya Nadella met at Microsoft Future Decoded CEO Summit and shared their vision for India.

Mr. Ambani on Trump’s visit

He said as they were speaking, Donald Trump had arrived in Ahmedabad and the India he would see in 2020 was different from the India Jim Carter saw or Bill Clinton saw or even Barack Obama saw. He further said that people had mobile phones and the mobile network in India was at par with anybody else in the world.

Mr. Nadella said about Microsoft

India-born Satya Nadella outlined the goal of Microsoft’s products in India. The key message was India’s potential and the focus of Microsoft for next decade. How every organization in India rides the new wave of intelligent cloud and intelligent edge. He further said that their mission was to empower every person and every organization on the planet to achieve more.

Mr. Ambani praised Nadella

He said that every Indian was proud of Nadella. He further said that what he admired about Nadella and what he learned was that Nadella’s leadership style was ability to rely on partnerships and build trust and relationships.

Mr. Ambani also talked about digital transactions in writing country’s growth story. He recalled how his father started Reliance and how RIL moved from a startup to a big business. He said that every small business could become Dhirubhai Ambani or Bill Gates.

Source: https://bit.ly/2PpgC4S

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Business News & Politics

Donald Trump Said That There Will Be A Big Deal With India

HT News فبراير 19, 2020

The US President Donald Trumpclearly indicated that a big trade deal with India might not be on the cards during his visit. He said that he was saving the big deal with India for later and that he didn’t know if it (the deal) would be done before the presidential election in November.

US trade deal with India

Donald Trump is visiting with the first lady of the US on February 24 and 25. But the US Trade Representative Robert Lighthizer might not accompany the Trumps during their visit. He’s the point-person for trade negotiations with India but the US officials hadn’t ruled out his travel to India.

Trump said that they weren’t treated well by India but he praised Prime Minister Narendra Modi and said that he was looking forward to visit to India. He also said that he happened to like Prime Minister Modi a lot.

Trump said that Modi told him that they would have seven million people between the airport and the event. Also, he said that he was excited about the stadium that was the largest in the world. He further said that it was going to be very exciting and hoped that everyone enjoyed that a lot.

President Trump said that they would have a big deal with India but he didn’t know if the deal would be done before the election. But he was certain that there would be a deal with India. He was speaking to reporters at Joint Base Andrews on Tuesday.

Source: https://bit.ly/2wqizas

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Business News & Politics

50 Lakh Crore Earmarked For Development Of Railway Stations On PPP Model

HT News فبراير 17, 2020

Ministry of Railways is working overtime for beautification of railway stations. The ministry wants to make New Delhi Railway Station, a world class station. It would be developed like an airport, where design would attract the visitors. There will be separate exit points for convenience of passengers. Also, there would be elevated access roads on the lines of airport.

PPP model would be used

According to sources, Northern Railway and Railway Land Development Authority is contemplating completing the project on Public Private Partnership model. This project can take a minimum of 4 years in completing.

50 stations are up for beautification

According to a news published on 7th February in Economic Times, the government has set a target of beautifying 50 railway stations with a budget of 50,000 crore. Companies like Tata Realty, Adani and Essel Group have displayed their interest in this project.

Bids for 4 stations would be invited in 2021

In 2019, the government said that it was working to attract private investment in railways. And that it had set a target of spending 50,00,000 crore on infrastructure of railway. The government can invite bids for 4 stations in 2021.

1500 crore for CST

Chhatrapati Shivaji Terminus (CST)will get 1500 crore for beautification. And other stations would get a minimum of 250 crore for development and beautification. But New Delhi Railway Station would get 6500 crore for development.

Source: https://bit.ly/2vHN3UY

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Business

Udaan Becomes The Fourth-Valued Startup After Paytm, OYO And Byju’s

HT News فبراير 12, 2020

Bengaluru based online B2B e-commerce marketplace Udaan that is a little over three years old has become the fourth-highest valued startup in India. A recent valuation report filed by the firm on September 23, 2019 shows that the worth of the firm is $7.5 billion or Rs. 53,365.45 crore.

Valuation report of Udaan

The report reads that the e-commerce company would reduce its losses to Rs. 375 crore in FY21. Also, that it would register a profit of Rs. 3,082 crore before tax in FY22. Following the report, the company convened a meeting to pass a special resolution to approve allotment of 4,02,641 Series E Compulsorily Convertible Preference Shares (CCPS) to its Singapore-based holding entity Trustroot Internet PTE.

History of Udaan

This development came when the company posted a loss of Rs. 780 crore during FY19 at a revenue of Rs. 46 crore. Founded by former Flipkart executives Amod Malviya, Sujeet Kumar and Vaibhav Gupta, it works as a platform where retailers can connect to wholesalers and traders. It is a horizontal marketplace that provides a wide range of goods from electronics to apparel and from grocery to fresh produce.

It also provides logistics service along with working capital loan to sellers on the platform. Udaan boasts of 20,000 sellers and 10 lack retailers from 900 cities and towns across country. It offers more than 15 lakh products that includes brands like SanDisk, Karbonn, boat and HP.

Source: https://bit.ly/2OPXbBT

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Business

Anil Ambani Says His Net Worth Is Zero

HT News فبراير 8, 2020

Reliance Group Chairman Anil Ambani was asked to pay USD 100 million by a UK court. He was given six-week time to make the payment. The order was passed for three Chinese banks that lent USD 680 million to Anil Ambani in loan.

UK court order for Ambani

Judge Waksman read out the order for Industrial and Commercial Bank of China Ltd Mumbai Branch, China Development Bank and Exim Bank of China. The banks welcomed the order saying that it was a straightforward debt claim to recover outstand loans to RCom in good faith. They said that Anil Ambani had given a personal guarantee but he refused to honor that guarantee.

Anil Ambani denied guarantee

Ambani, 60, denied giving any such guarantee to Chinese banks that were forced to take the legal action. Also, he argued that his net worth was nearly zero and that his family won’t help in repaying the debt. But the court refused to accept his claim.

The judge said that Ambani failed to satisfy him with his excuses. But the Reliance Group indicated that the company would appeal against the ruling. It said that Ambani was reviewing the court order and would seek legal remedies according to the order.

The court dismissed Ambani’s request

The court asked whether Anil Ambani had filed bankruptcy in India. In response, his counsels said no. But they made a reference to Insolvency and Bankruptcy Code (IBC) that had just came into play. The court also made numerous references to instances when Ambani family stepped out to bail Anil Ambani and his family out.

Source: https://bit.ly/2ulFdQS

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Banking Business

Foreign Analysts Fear Revision Of Rates By RBI In 2020

HT News فبراير 4, 2020

Analyst said on Monday that RBI could hike rates this year because of possible inflationary impact the economy would have while trying to meet the fiscal deficit target of 3.5% for FY2020-21.

The analysts pointed towards the finance minister Nirmala Sitharaman discussing disinvestment where the government under-performed to achieve the 3.8% fiscal deficit target in FY2019-20.

Analysis of growth

The government wants to push the growth but with the help of a clause that allows the government to stretch its commitments under the Fiscal Responsibility and Budget Management Act by 0.5%. But it would show that the government missed the target for the third consecutive year.

Analysts of foreign brokerage Bank of America welcomed the government’s stand while flagging risks to the target. They see a 0.30% if GDP upside risk to the fiscal deficit target because of high disinvestment assumption of Rs. 2.10 lakh crore in FY21 that is almost three times of FY20’s Rs. 65,000 crore.

Goldman Sachs analysis

The analysts said that the achievement of government relies on privatization initiatives. They also said that if the estimates of revenue collections don’t materialize, the government would have to resort to expenditure cuts again.

They further said that any rise in fiscal deficit would be accompanied by a spike in inflation but it is already beyond the comfort level of RBI. The analysts said that it is more likely that RBI could shift its monetary policy from neutral to accommodative in the weekly review and it is likely to hike the rates in 2020 as well.

Source: https://bit.ly/36XB02W

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