QBiz: Infosys to Get New CEO Today; Diesel Prices Flare Up
Top business stories of the day.
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1. SBI Collects Rs 1,771 Crore From Below Minimum Balance Accounts
The country’s largest lender State Bank of India collected Rs 1,771 crore during April-November 2017 as charges from customers who did not maintain their minimum monthly average balance (MAB) in their accounts, according to Finance Ministry data.
This is more than the bank’s July-September quarter net profit of Rs 1,581.55 crore and nearly half of the Rs 3,586 crore it earned as net profit April-September.
SBI did not collect any money from levy of charges for non-maintenance of MAB during the 2016-17 financial year. The charges were re-introduced after a gap of five years during the current fiscal.
Source: The Indian Express
2. Centre Stops Subscription for 8% GoI Savings Bond
The government has notified that the 8 percent GOI Savings bond, 2003 shall cease for subscription from 2 January 2018. One of the safest product for retail investors, these bonds with a sovereign rating were a preferred choice for many senior citizens, retirees and those looking for fixed income.
This product became popular especially in the last couple of years, after interest rates on bank fixed deposits, company deposits and small savings instruments fell below the 8 percent mark.
The bonds with a tenure of 6 years, minimum investment of Rs 1,000 and no cap on maximum investment paid an interest of 8 percent, with investors having the option to receive interest on a half yearly basis. Compared to bank fixed deposit that paid interest rates between 6.25-6.75 percent. Investors benefitted by earning an extra 1.25-1.75 percent from a product with sovereign ratings.
Source: The Economic Times
3. Salil Parekh Set To Take Over As Infosys CEO
Salil Parekh is all set to take charge as Infosys CEO on 2 January as the over $10 billion company looks to bring back the focus on revenue growth and business strategy under the new leadership.
Infosys, which spent most part of 2017 handling the public standoff between its high-profile promoters and the past leadership, will also announce its third quarter financials on 12 January.
Industry watchers say Parekh's skills in handling a multi-cultural work environment, combined with his strong grip on technology and sales, makes him the perfect choice for leading Infosys during this period of transition.
Source: PTI
4. Poor Sales Last Year Make Automakers Look Good In December
Most automakers sold more cars in December as sales rose on year-end discounts and a low base as demand had slowed down in the same month last year after demonetisation.
India’s largest passenger vehicle maker Maruti Suzuki Ltd’s sales rose for the twelfth straight month, driven by demand for its compact cars. It sold 10.3 percent more cars at a little over 1.3 lakh, according to its exchange filing. Domestic sales rose 12.1 percent to 1.19 lakh units while exports fell 6.2 percent to 10,780 units.
Sales of compact cars like the Swift, the Dzire and the Baleno rose 23.4 percent while utility vehicle sales, including the Ertiga, the Gypsy and the Vitara Brezza, rose 19.9 percent over last year.
Second-placed Hyundai Motor India Ltd clocked a 10 percent increase as India’s second-largest carmaker sold 62,899 units, it said in a media statement. Domestic sales remained nearly flat at 40,158 units. Exports rose 32.9 percent to 22,741 units.
Source: BloombergQuint
5. SEBI Plan on Loan Defaults Runs Into RBI Hurdle
A Securities and Exchange Board of India (SEBI) proposal to make listed firms disclose defaults on their loans within a day of it happening is stuck in a turf war between the central bank and the markets regulator, according to two people with direct knowledge of the matter.
The Reserve Bank of India (RBI) has reservations about the SEBI proposal as it considers banks to be the biggest stakeholders in default data and believes such data is not for public consumption, these people said on condition of anonymity.
SEBI had initially released a circular on 4 August proposing default disclosures within a day, only to withdraw it on 30 September, just a day before it was to become operational.
Source: Livemint
6. Diesel Prices Flares Up
Diesel prices have flared up to a new record level in Delhi while petrol, kerosene and jet fuel prices continue to rise in the country in line with the surge in global crude oil prices.
State-owned oil companies sold diesel to retail consumers for Rs 59.70 a litre in Delhi on Monday at the highest ever price in the city. In Kolkata and Chennai, diesel prices were the highest since September 2014. In Mumbai, prices were the highest since March 2017.
Petrol prices in Delhi, Mumbai, Chennai, Kolkata and many other cities were the highest since 3 October 2017, when the Centre decided to cut excise duty by Rs 2 on petrol and diesel to bring some relief to consumers. October was also the month the government directed companies to stop monthly hikes in prices of cooking gas – hikes were intended to eliminate subsidy on cooking fuel.
Source: The Economic Times
7. No Charges on Debit Card Transactions up to Rs 2,000: FinMin
Customers will not have to pay any transaction charges for payments through debit card, BHIM app and other payments made for up to Rs 2,000 from today onwards.
Last month, Union Cabinet approved a proposal that the government will bear the merchant discount rate (MDR) charges on transactions up to Rs 2,000 made through debit cards, BHIM UPI or Aadhaar-enabled payment systems to promote digital transactions.
"Happy Digital 2018. December Quarter BHIM transaction rises 86 percent to 145.6 million with value of Rs 13,174 crore," Financial Services Secretary Rajiv Kumar said in a tweet.
Source: Business Standard
8. MRP, Other Details a Must For Items Sold Online From Today
To protect online consumers, the Centre has made it mandatory from today for e-commerce firms to print not only the maximum retail price on goods but also information like expiry date and customer care details.
The Consumer Affairs Ministry had made the amendments in this regard to the Legal Metrology (packaged commodities) Rules in June 2017. The companies were given a six-month deadline to comply with the new rule.
"Amendment made in the Legal Metrology (Packaged Commodities) Rules, 2011 to safeguard the interest of consumers and ease of doing business will come into force with effect from 1 January 2018," the ministry said in a statement.
Source: PTI
9. Banning Bitcoin Won’t Help, Says Former RBI Deputy Governor Gandhi
A ban on cryptocurrencies such as bitcoin may not be the best way forward, according to former Reserve Bank of India deputy governor R Gandhi, even as the finance ministry compared them with ponzi schemes.
There simply isn’t enough evidence or data to show the extent to which such currencies being used to finance illegal activities like demanding ransom and drug trafficking, he told BloombergQuint in an interview. “Dealing, buying and selling of virtual currencies, per se, is not an illegal activity,” he said.
Source: BloombergQuint