QBiz: Jet Airways Approaches SBI for Loan; Petrol Lowest in 2018
Here are the top business stories of the day.
1. Jet Airways in Talks With SBI for Rs 1,500-Cr Loan
Loss-making carrier Jet Airways is in discussions with the State Bank of India for raising Rs 1,500 crore short-term loan to meet its working capital requirement and some payment obligations, a source said.
Jet Airways strategic partner and Middle-east carrier Etihad, which holds 24 percent stake in the Indian full service carrier, is likely to provide guarantee for the loan, he said.
Significantly, the talks for availing loan are going on at a time when EY is carrying out a forensic audit of the Jet Airways on the orders of the airline's largest lender for alleged irregularities.
2. Banks Lost Rs 41,167 Crore to Fraud in 2017-18: RBI
Fraudsters have looted Rs 41,167.7 crore from the banking system in 2017-18, a sharp jump of 72 percent from Rs 23,933 crore the previous year, despite “stringent monitoring and vigilance”, according to data released by the Reserve Bank of India (RBI).
There were 5,917 instances of bank fraud in 2017-18 as against 5,076 cases the previous year, show the data released Friday. The instances of fraud have been rising over the last four years — by four times from Rs 10,170 crore in 2013-14.
(Source: The Indian Express)
3. NDA’s Q2 Economic Threats Recede, But Challenges Remain
The economic headwinds that unsettled Prime Minister’s Narendra Modi administration in the second quarter and at the beginning of the third, comprising a weak rupee, high crude oil price and the threat of widening current account deficit (CAD), have since abated even as a host of indicators showed a quickening of growth momentum.
The shift in the macroeconomic outlook has, however, been dramatic from the second to the third quarter, making the task of policy management that much trickier.
4. MCA Aims Improved Governance Standards, Ease of Doing Biz in 2019
Focused on further improving corporate governance practices, the Ministry of Corporate Affairs will strive to ensure a positive co-relation between high standards for governance and ease of doing business in 2019, according to a senior official.
As the curtains come down on an event 2018 that witnessed the IL&FS crisis and the Punjab National Bank fraud rattling investor sentiments, the corporate affairs ministry will look forward to raise the governance standards as well as move ahead with various other reform measures.
5. Government May Hire Professionals for Air India Top Positions Through Global Search: Suresh Prabhu
The government plans to rope in professionals for top positions at Air India through a global search process, as part of efforts to revive the national carrier, according to Civil Aviation Minister Suresh Prabhu.
With the proposed strategic stake sale of the Air India failing to take off in May this year, the government has been working on various initiatives, including hiving off a significant chunk of over Rs 55,000 crore debt into a special purpose vehicle, to turn-around the ailing airline.
(Source: Economic Times)
6. SEBI Plans to Strengthen Market Surveillance System, Data Warehouse Tool
Regulator SEBI is planning to beef up its market surveillance system as well as its tool for speedy analysis of trade data, which identifies possible violations such as insider trading, share price manipulation and front running.
In this regard, Securities and Exchange Board of India (SEBI) has invited applications from the interested companies to provide IT services for the maintenance of its integrated market surveillance system (IMSS), data warehousing and business intelligence system (DWIBS).
The market watchdog undertakes its market surveillance functions through integrated market surveillance system, which was put in use from 2013, and collects data for suspicious market activities through multiple sources, including its network systems at exchanges and depositories.
7. Robust GDP Growth to Continue: CII
India will continue to be the fastest-growing major economy, with robust GDP growth expected to continue through 2019, the Confederation of Indian Industry said, based on strong drivers from the services sector, infrastructure activity and better demand conditions.
(Source: The Hindu)
8. Petrol Price Cut to Its Lowest Level in 2018, Diesel Rates at 9-Month Low
Petrol price on 30 December was cut by 22 paise per litre to its lowest level in 2018 while diesel rates were reduced by 23 paise to a nine-month low. Petrol price in Delhi was cut to ₹69.04 per litre from ₹69.26 while diesel rates came down to ₹63.09 from ₹63.32 a litre, according to the price notification of state-owned oil firms.
Petrol prices, which have been on a decline since 18 October except for one day, are at their lowest level of 2018. Diesel rates are at their lowest since March-end.
(Source: The Hindu)
9. Indigo Gets Its First Longer Range A321neo Plane
Budget carrier IndiGo has become the first domestic airline to have longer range Airbus A321neo plane in its fleet with the first aircraft arriving Saturday morning in New Delhi from the European aviation major Airbus' Hamburg facility in Germany, an airline source said.
The maiden A321neo (new engine option), VT-IUA, landed at 9.06 am at Terminal-3 of the Indira Gandhi International Airport in Delhi and was accorded the traditional water canon salute on arrival, the source told PTI.
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