1. 5% Growth a Surprise, Analysing Why It Happened, Says RBI Governor
MUMBAI: Current account and fiscal deficit could take a hit if oil prices continue to rise after an attack on Saudi Arabian oil facilities over the weekend, the central bank chief said on Monday
"We should allow a few more days to see how the situation plays out before taking a final view...depending on how long it persists it will have some impact on the current account deficit and further perhaps on the fiscal deficit if it lasts longer," Governor Shaktikanta Das told the CNBC-TV18 news channel.
(Source: NDTV)
2. Air India Assets’ ₹7,000 Cr Bond Issue Fully Subscribed
Air India Assets Holding Ltd (AIAHL), a special purpose vehicle created by the government to park a part of the national carrier’s debt, has raised ₹7,000 crore through a bond sale to refinance its debt, two people with direct knowledge of the matter said.
“The bond issue of Air India Assets Holding Ltd with a three-year tenure of ₹1,000 crore (and) with a greenshoe option of ₹6,000 crore has been fully subscribed at 6.99%," one of the two people said, requesting anonymity.
(Source: Livemint)
3. Crude Shock: Rise in Oil Prices May Deepen India's Auto Crisis, Say Experts
Spike in international crude oil prices, following a drone attack in Saudi Arabia’s largest oil production facility, has come as another blow to India’s beleaguered automotive sector. The attack and the resulting cut in Saudi crude oil production led to a 20 percent spike in Brent crude oil — the benchmark used to price Indian’s oil imports.
Brent is currently trading with gains of 10.7 percent.
(Source: Business Standard)
4. Fin Min Plans to Release Unspent Money, Boost Demand Amid Economic Slowdown
The finance ministry is working out a mechanism to release the money, stuck after it sanctioned the amount to other ministries and departments for various projects and schemes, to prop up the sagging economy. Besides, the finance ministry has asked the agriculture ministry to expedite money disbursement under the PM Kisan to increase disposable income to distressed farmers to boost demand.
The ministry is also planning to look at the fiscal deficit of entire country — the Centre and the states — before it holds pre-Budget consultations.
(Source: Business Standard)
5. NHPC to Monetise 10 Projects to Help Meet Disinvestment Target
State-run NHPC Ltd, India’s largest hydro power producer, plans to leverage infrastructure investment trusts or InvITs to monetise 10 of its 22 projects, according to three people aware of the development.
The move is in line with stepped up efforts of state-run public sector units (PSUs) to generate resources for India’s ambitious infrastructure plans, which include tapping the InvIT route.
(Source: Livemint)
6. Slump in Steel Sector Spreads to Small, Medium Companies
A slowdown in India’s steel sector is spreading to medium and small enterprises, with several companies cutting production in response to lower demand.
Such units make up about one-half of India’s total steel production but higher iron ore prices and weak demand have forced many to trim output since August. In some cases, production has been halved.
(Source: Livemint)
7. BHEL, BSNL, Coal India Warn of Pay Cuts After Unmet Targets, Cash Crunch
Facing a severe cash crunch and failure to meet targets, several public sector units (PSUs) have started putting in austerity measures and pressuring employees to tide over the situation. Bharat Sanchar Nigam Ltd (BSNL) has moved to impose a penalty recoverable from staff salary in proportion to non-achievement of targets.
This has irked the Department of Telecommunications (DoT), which has asked the beleaguered telecom company to explain the reason for shooting off threatening letters to its employees.
(Source: Business Standard)
8. No Slowdown in Online Consumer Spending in India, Say Amazon and Flipkart
Amazon and Walmart, rivals in the US and many other parts of the world, are on the same page in shrugging off slowdown blues in India. In the run-up to its festive sale, Seattle-based Amazon has said there is no slowdown in online consumer spending in India.
Flipkart, majority owned by Walmart and Amazon India’s biggest competition, is also bullish on the country’s e-commerce segment, ruling out any sign of a downturn as it prepares for Big Billion Day.
(Source: Business Standard)
9. Allahabad Bank Board Approves Merger With Indian Bank
The board of Allahabad Bank on Monday approved the merger proposal with Indian Bank, making the amalgamated entity the seventh largest public sectorlender of the country.
Finance Minister Nirmala Sitharaman had on August 30 announced the consolidation of 10 state-run banks into four large-scale lenders.
"In terms of SEBI (listing obligations and disclosurerequirements), the board of directors in a meeting held todayhas considered and accorded its in-principle approval foramalgamation of Allahabad Bank into Indian Bank," the city-based lender said in a statement.
(Source: NDTV)
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