QBiz: Vehicle Scrap Policy Gets Go Ahead; Flipkart’s Wallmart Deal
Top business news of the day.
1. Sri Lanka, Bangladesh Have Seen Faster Rise in Per Capita Wealth Than India Since 1995
Per capita wealth changed very little across countries, even falling in 25 countries, between 1995 and 2014, a new World Bank report by Glenn-Marie Lange and co-authors shows.
The report attempts to provide a more comprehensive measure of economic progress than gross domestic product (GDP) alone by considering the combined wealth from four different sources: produced capital (plants and factories), human capital, financial capital and natural capital (resources such as forests, minerals, etc).
Low-income countries, where natural capital constituted a major share of wealth, doubled their wealth between 1995 and 2014, the report shows. But on a per capita basis, their wealth grew by only 17 percent over this period due to high population growth. South Asia saw among the biggest gains in per capita wealth over the past two decades, the report shows. But countries such as Bangladesh and Sri Lanka saw faster growth in per capita wealth compared with India because of gains in human capital formation.
2. Vijay Mallya Case: UK Judge Says ‘Obvious’ Indian Banks Broke Rules
The British judge hearing the extradition case of liquor baron Vijay Mallya on Friday, 16 March, said that it was “blindingly obvious” that rules were being broken by Indian banks which sanctioned some of the loans to the erstwhile Kingfisher Airlines.
Presiding over a hearing at Westminster Magistrates' Court in London, Judge Emma Arbuthnot directed the Crown Prosecution Service (CPS), arguing on behalf of the Indian government, to provide a breakdown of where some of the emails and documentary evidence presented in the case came from.
The hearing on Friday marked the effective end of oral arguments in the case, which will now return to the court on 27 April.
Read the full story on The Quint.
3. 25% Overseas Branches of Public Sector Banks Reported Losses in FY17
The Union government said on Friday, 16 March, that one-fourth of all foreign branches of public sector banks reported losses last financial year.
"As per data reported by PSBs, 159 branches of PSBs are operating in foreign countries, of which 41 branches were in the loss in the financial year 2016-17," Minister of State Finance Ministry Shiv Pratap Shukla informed the Lok Sabha on Friday.
(Source: Business Standard)
4. This May Help Flipkart Demand $20-Billion Valuation From Walmart
A few of Flipkart Ltd’s investors recently raised their valuation of India’s largest online retailer, breaking a long spell of markdowns, and possibly aiding the company in seeking a close to $20 billion valuation from Walmart.
Morgan Stanley, Valic Company, Vanguard and Optimum Fund have in recent markups valued Flipkart at between $11 billion and $19 billion.
That comes after two years of aggressive markdowns, the biggest in 2016 when Morgan Stanley-managed mutual fund, Morgan Stanley Select Dimensions Investment Series, valued Flipkart at $52.13 a share – or $5.54 billion.
5. Vehicle Scrap Policy Gets Go Ahead at PMO Meet; Over 20-Yr Old CVs to Face Axe
The much-awaited vehicle scrap policy was given 'in-principle' approval at a high-level meeting at the PMO to pave way for mandatorily disposal of commercial vehicles (CV) that are more than 20 years old from 1 April 2020, an official said.
The development follows Road, Transport and Highways Minister Nitin Gadkari's announcement that the Vehicles Scrapping Policy, aimed at curbing vehicular pollution, has almost been finalised.
"A high-level meeting, chaired by Principal Secretary to the prime minister and comprising secretaries from different ministries in principle approved the vehicle scrapping policy today," the official, who did not wish to be quoted, said.
The policy will be effective from 1 April 2020, and life of the commercial vehicle for scrapping has been fixed at 20 years, the official added.
6. Markets Post Second-Biggest Fall of 2018 on Trade War, TDP No-Trust Vote
The benchmark Nifty on Friday, 16 March, posted its second-worst single-day fall of 2018 due to global and domestic political concerns.
The escalation of the war of words between the US and China, the world’s two largest economies, sparked fears of a global trade war. This, coupled with a no-confidence notice against the Narendra Modi-led government, weighed on investor sentiment.
This resulted in most Asian markets ending with losses. India was one of the worst-performing markets globally on Friday.
The Nifty 50 index ended 1.6 percent lower to close at 10,195.15, the biggest fall since 2 February, while the Sensex closed at 33,176, down 510 points or 1.51 per cent, the most since 6 February.
(Source: Business Standard)
7. IIFL’s Nirmal Jain is India’s Latest Billionaire
Nirmal Jain has hit the jackpot serving the new rich in the world’s fastest-growing major economy. The Mumbai banker’s $20 billion private-wealth-management unit became India’s biggest by assets and helped make him a billionaire.
The nation’s demographics are a driving force, as well as Prime Minister Narendra Modi’s efforts to withdraw India’s biggest bills from circulation, which has pushed savings into the financial system. India’s young and thriving workforce will support its growth for years to come, Jain, 51, said in a phone interview, pointing out that millennials account for about a third of the country’s population and most of the income.
“Most of it is first-generation wealth, so your clients are pretty hands-on,” Jain said. “It’s not that they inherited wealth, so they have a lot of passion and attachment to wealth and its performance.”
8. Exporters Received GST Refunds Worth Rs 10,000 Crore Till Date
The government has so far sanctioned more than Rs 10,000 crore in refunds to exporters for Integrated Goods and Services Tax paid by them, the Central Bureau of Excise and Customs said.
The CBEC received claims for refunds of about Rs 17,000 crore, but some of them couldn’t be processed due to errors made by exporters, a government official later told BloombergQuint requesting anonymity.
There is a mismatch in the invoice number, taxable value and the amount of IGST paid mentioned in shipping invoices versus GST returns filed by exporters, CBEC had said in an earlier notification. Errors also include incorrect shipping bill and GST identification numbers. Since claims of exporters were not being processed due to this mismatch, CBEC had decided to manually match GST invoices and shipping bills filed till 31 December 2017 to expedite refunds.
9. Zee Entertainment Calls off Acquisition of 9X Media, INX Music
Zee Entertainment Enterprises Ltd (ZEEL) on Friday, 16 March, said its proposed acquisition of two media entities, 9X Media Pvt Ltd and INX Music Pvt Ltd, have been called off due to non-completion of certain material conditions.
Last year in October, the company had announced that it would acquire 100 percent stake in 9X Media and INX Music in a Rs 160-crore cash deal.
As per the proposal, ZEEL was to acquire 91,453,000 equity shares of Rs 10 each of 9X Media for a consideration of Rs 155.20 crore. Besides, it was also to acquire 13,39,556 equity shares of Rs 10 each of INX Music constituting 29.15 per cent stake for Rs 4.80 crore.
The remaining 70.85 per cent in INX Music stake is owned by 9X Media and therefore consequent to the transaction, INX will become a wholly-owned subsidiary of ZEEL, the company had said then.
(The Quint is available on Telegram. For handpicked stories every day, subscribe to us on Telegram)
Subscribe To Our Daily Newsletter And Get News Delivered Straight To Your Inbox.