1. Fraud-Hit PNB Signals Recovery by Q2; Eyes Rs 55 Billion Net Profit
Fraud-hit Punjab National Bank (PNB), which recently reported the highest-ever loss by any domestic bank in history, is aiming to clock its largest-ever quarterly profit of Rs 55 billion in the July-August period this financial year.
However, the road to profitability has already hit some hurdles for the Delhi-based bank as the Union government has rejected its demand for an additional capital infusion of around Rs 80 billion in 2018-19, sources said.
The PNB’s demand for an additional capital comes on the back of the expected hit of Rs 100 billion in the present financial year due to the fraud-related provisions, mark-to-market losses (due to high yields impacting the market value of investment book), provision on insolvency and bankruptcy code, among others.
(Source: Business Standard)
2. GST Amendments in Monsoon Session to Make Returns Simpler
The government is set to table amendments to goods and service tax laws in the monsoon session of Parliament to simplify GST returns filings, modify the composition scheme under which small traders can pay tax based on their revenue, and eliminate ambiguities in the laws.
The proposed GST changes will do away with the need for filing tax returns on purchases made by businesses, called GSTR2, and comprehensive returns called GSTR3. At the moment, these returns have been kept in abeyance and businesses only file sales returns, called GSTR1, and GSTR3B summary returns.
The GST Council had in May approved a new system where all taxpayers need to file a single return and small businesses need to file quarterly returns, after a six-month transition period, under the composition scheme.
(Source: Livemint)
3. Narendra Modi Pushes for Stronger Economic Ties at SCO Summit
Prime Minister Narendra Modi on Sunday, 10 June, sought increased economic links and integration among the Shanghai Cooperation Organisation (SCO) security bloc but also underlined the need for a respect for sovereignty and transparency in connectivity projects among the members of the grouping.
Pointing out that connectivity was key to economic development of the region, Modi said “connectivity with our neighbourhood and in the SCO region is our priority.”
“India welcomes any such (connectivity) project which is inclusive, sustainable and transparent, and which respects member states’ sovereignty and territorial integrity,” the prime minister said citing New Delhi’s involvement in projects linking India and Central Asia through the Iranian port of Chabahar and the International North-South Transport Corridor that links India to Central Asia and Russia.
(Source: Livemint)
4. ICICI Bank, Chanda Kochhar Under US SEC Scanner
As multi-agency probe continues in India into alleged lapses involving ICICI Bank’s CEO Chanda Kochhar and her family members, the matter has also come under the scanner of the US markets regulator Securities and Exchange Commission (SEC).
Officials said the SEC is actively looking into the matter as ICICI Bank is listed in the US also and it may seek further details from its Indian counterpart the Securities and Exchange Board of India (SEBI), which has already issued show-cause notices to ICICI Bank and Kochhar as part of its probe.
The cases under scanner include the bank’s Rs 3,250 crore loan to Videocon Group in 2012 and the involvement of Kochhar family members in restructuring of the loan.
(Source: Livemint)
5. Violence Cost India's GDP Over $1 Trillion in 2017; $595 Per Person: IEP Report
Violence cost the Indian economy a whopping USD 1.19 trillion, (over Rs 80 trillion) last year in constant purchasing power parity (PPP) terms, which amounts to roughly USD 595.4 per person, says a report.
The findings are part of the report prepared by the Institute for Economics and Peace (IEP) based on an analysis of 163 countries and territories.
Violence impacted USD 1,190.51 billion to the Indian economy in 2017, 9 percent of the country's gross domestic product (GDP) or USD 595.4 (over Rs 40,000) per person.
The economic impact of violence on the global economy was USD 14.76 trillion in 2017, in PPP terms. This is equivalent to 12.4 percent of GDP, or USD 1,988 per person.
(Source: Business Standard)
6. CCI May Want Some Changes in the Flipkart-Walmart Deal Structure
Fair trade regulator CCI might recommend structural changes to the proposed $16-billion Walmart-Flipkart deal to address possible competition concerns, according to officials.
The Competition Commission of India might also take cues from a ruling in South Africa with respect to Walmart-Massmart deal, which was announced in 2010.
Last month, Walmart Inc announced acquisition of 77 percent stake in Flipkart for about $16 billion (Rs 1.05 lakh crore) in the largest e-commerce deal. The retail giant has approached the CCI for approval, saying deal does not raise any competition concerns.
However, various trade organisations have opposed the deal.
While the CCI is yet to take a call on the Walmart-Flipkart deal, officials said the regulator might order certain structural changes in the proposed transaction to address possible competition concerns.
(Source: BloombergQuint)
7. Rs 87,000 Crore Loss to PSU Banks in FY 2018: PNB, IDBI, SBI Lead the Pack of 21
Losses of public sector banks crossed a whopping Rs 87,300 crore in 2017-18 fiscal, topped by scam-tainted Punjab National Bank which took a hit of nearly Rs 12,283 crore. Of the 21 state-owned banks, only two banks, Indian Bank and Vijaya Bank, posted profits during 2017-18. Indian Bank posted the highest profit of Rs 1,258.99 crore and Vijaya Bank’s profit was Rs 727.02 crore in the fiscal.
So, the net loss posted by state-owned banks was about Rs 85,370 crore in 2017-18 as against a net profit of Rs 473.72 crore in the previous fiscal.
(Source: The Financial Express)
8. Mining Woes: Karnataka Iron Ore Companies Unable to Clear Stocks
Mining industry’s apex body, Federation of Indian Mineral Industries (FIMI), has decided to move Supreme Court with an appeal to allow Karnataka’s iron mining industry to sell ore to more players apart from manufacturers to clear their stock. The decision comes after it was found that some large steel companies in the state prefer to buy from Odisha or even import it at a higher price, rather than buying through auctions conducted in the state.
As the apex court has started relaxing norms for iron ore mining in Karnataka after banning exports from state to check malpractices, the mining industry is not able to raise production despite a good demand because many steel mills in the state are not listing their requirements. Now the state's mines want to broaden their base for selling ore without which they find it difficult to sell all their output to steel mills.
(Source: Business Standard)
9. GST Refund to Foreign Tourists at Airports on the Cards
Foreign tourists may soon get to claim GST refunds at airports at the time of exit as the Revenue Department is working on a mechanism to refund taxes paid by them on local purchases
Initially, only purchases made by tourists from big retailers would be eligible for Goods and Services Tax (GST) refunds at the airports when the tourist is leaving the country, an official said.
In several countries, VAT or GST are refunded to the tourists for purchases made beyond a prescribed threshold.
The department is working out a mechanism which will ensure refund of GST to foreign tourists and for that the field offices have to be sensitised, the official said.
(Source: PTI)
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