QBiz: Govt Scores Rs 1.76 Lakh Cr From RBI; Synergy Bids For Jet
Catch the latest business news round-up in today’s QBiz.
1. RBI Board Approves Rs 1.76 Lakh Crore Transfer to Govt
Accepting the recommendation of a panel headed by its former governor Bimal Jalan, the Reserve Bank of India on Monday decided to transfer a sum of Rs 1,76,051 crore to the government. “The board of central bank decided to transfer a sum of Rs 1,76,051 crore to the Government of India comprising Rs 1,23,414 crore of surplus for the year 2018-19 and Rs 52,637 crore of excess provisions identified as per the revised Economic Capital Framework (ECF),” the RBI said in a statement.
The committee had recommended the bank equity to be within a band of 5.5 percent to 6.5 percent of the balance sheet. However, the RBI board has decided to maintain it at a lower end of 5.5 percent band to hand over Rs 52,637 crore excess to the government.
(Source: The Indian Express)
2. Synergy’s Interest in Jet Makes Creditors Extend Bid Deadline
Lenders to Jet Airways (India) Ltd have extended until Saturday the deadline for submitting expressions of interest (EoIs) to invest in the grounded airline to accommodate a potential bidder, which submitted an EoI after the expiry of the deadline, a person with direct knowledge of the matter said.
“The deadline has been extended to 31 August after a foreign conglomerate showed interest to invest in the airline post the deadline," the person said on condition of anonymity.
3. Air India May Soon Heave a Sigh of Relief
Air India is expecting to get some relief as the finance ministry held a meeting on Monday on the release of ₹2400 crore to the airline and restoring the fuel supply at six airports.
On Monday, Air India’s Cochin-Dubai flight was delayed by six hours as oil companies refused fuel. According to finance ministry officials, the issue will be resolved soon.
“The agenda of the meeting to get the ₹2400 crore released, otherwise the staff will not get salaries. A part of it can be used to pay the oil companies to restart the fuel supplies. Air India’s director (finance) attended the meeting and got the assurance from the finance ministry,” said a finance ministry official.
(Source: Hindustan Times)
4. Bulls Charge Back as Fiscal Package, Trade Talks Boost Sentiment
Indian stocks surged more than 2% on Monday, the biggest gain in three months, as investors cheered the government’s fiscal package and US President Donald Trump claim that China had reached out to Washington to restart trade talks amid fears that a prolonged trade war could trigger a global recession.
The BSE’s benchmark Sensex rose 792.96 points, or 2.16%, to 37,494.12, while the National Stock Exchange’s 50-share Nifty index gained 2.11% to 11,057.85 points. On the BSE, 1,705 stocks advanced, while 811 declined and 123 remained unchanged.
5. Steep Discounts Are Among Eight Concerns in NRAI’s List
The National Restaurant Association of India (NRAI) on Monday wrote to several food delivery companies listing out their concerns over steep discounts, forced usage of fleet services and other clauses laid out by these platforms, urging them to change the way they on-board and remunerate eateries.
Representatives of NRAI wrote to top executives at UberEats, Swiggy, Zomato and Foodpanda listing eight broad issues they feel need to be addressed and urged them to stop predatory practices with immediate effect.
(Source: Hindustan Times)
6. No Impact of US-China Trade War on India, Says CEA Krishnamurthy Subramanian
The ongoing trade war between United States of America and China will not have any impact on Indian export which is just below 2 percent of the global trade, Chief Economic Advisor Krishnamurthy Subramanian said on Monday.
Speaking to reporters on the sidelines of a programme here, he said the slew of measures announced by the Centre for the revival of muted growth in the economy was in the right direction, though it was necessary to focus on the ‘structural reforms.’
7. EoI for Three Loss-Making Units: Sail Extends Deadline yet Again to 10 September
As no potential investors came forward to buy out SAIL’s three loss-making units – Alloy Steel Plant (ASP), Salem Steel Plant (SSP) and Visvesaraya Iron and Steel Plant (VISP) – the state-run steel firm has extended the deadline for submission of expression of interests (EoIs) for the third time to 10 September.
Initially, the deadline was set on 1 August which was extended to 20 August to allow investors more time to decide upon. SAIL had attempted outright sales of these units even in 2017, but that did not fructify for want of buyers. ASP, SSP and VISP are located in West Bengal, Tamil Nadu and Karnataka, respectively. These three units have a total of 2,100 permanent employees and cumulatively they incurred `2,300 crore in last five years.
(Source: The Financial Express)
8. Amazon Launches Military Veterans Employment Programme in India
Amazon India on Monday announced the launch of a Military Veterans Employment programme that it said will create hundreds of opportunities for military veterans and their spouses across Amazon India's Fulfillment Centres, Sort Centres and Delivery Centres in the country.
Amazon India is partnering with the Office of the Director General of Resettlement (DGR) and the Army Welfare Placement Organisation (AWPO) to create continued work opportunities for military families across the country, it said in a statement.
9. RBI’s Inability to Ensure Transmission of Repo Rate Cut Is Hurting Real Estate Sector
Reserve Bank of India’s 110 basis point cut in the Repo rate this year has failed to uplift the mood in the real estate sector that has been grappling with the problems of high GST on construction materials like cement and steel and subdued demand due to the liquidity problem faced by housing finance companies and NBFCs. After the change of guard at the RBI in December last year, RBI governor Shaktikanta Das has effected a cumulative 110 basis point cut in the short term inter-bank lending rate, bringing it down to 5.4% but the transmission of policy rate cut down to the retail level has not taken place. Housing sector blames the lack of corresponding reduction in real interest rates for keeping the demand subdued ahead of the festive season when a large number of Indians prefer to buy a new property or assets.
“Banks have not lowered the retail interest rates despite several cuts by the Reserve Bank and it is hurting the real estate sector,” said Anuj Chaudhary, director of Delhi-NCR based Panchsheel Group.
(Source: The Financial Express)
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