1. Bank Frauds Worth Rs 2.05 Trillion Happened in Last 11 Years, Reveals RBI Data
Of over 50,000 frauds that hit banks in India in the last 11 fiscal years, the ICICI Bank, State Bank of India (SBI) and HDFC Bank reported highest number of cases, according to an RBI data.
Of the total 53,334 cases of frauds reported during 2008-09 and 2018-19 fiscal years, involving a whopping Rs 2.05 lakh crore, a highest of 6,811 were reported by the ICICI Bank involving Rs 5,033.81 crore.
The state-run State Bank of India (SBI) reported 6,793 fraud cases involving Rs 23,734.74 crore followed by HDFC Banks which recorded 2,497 such cases involving Rs 1,200.79 crore, according to the data given by the central bank in response to an RTI query filed by this correspondent.
(Source: Livemint)
2. BSE, NSE to Shift Jet Airways’ Stock to Trade-For-Trade Segment
Shares of Jet Airways (India) would be shifted to the trade-for-trade segment from 29 June by the BSE and the National Stock Exchange. Under this category, delivery of shares is compulsory.
Shares of Jet Airways are currently available for trading in the futures and options segment of the exchanges. In compliance with the provisions of SEBI, the stock would be excluded from the F&O segment from 28 June. Accordingly, no contracts would be available for trading in Jet Airways from 28 June, said a statement from both the exchanges.
(Source: BusinessLine)
3. Independent Directors Will Soon Have to Take Exams Before Appointment
Independent directors on company boards will soon have to clear an exam before they can be appointed, said Injeti Srinivas, the top bureaucrat in charge of corporate affairs.
Who will watch the watchdogs has become a burning question in India, which has in the past year charged a jeweller with defrauding a state-run lender of more than $2 billion, seen defaults at non-bank financiers send its financial system to the brink of a crisis, and and watched as billionaires toppled into bankruptcy. Observers say the companies’ independent overseers should have detected signs of trouble even before they manifested.
(Source: BusinessLine)
4. What Went Wrong with Patanjali's Dream Run
Three years ago, yoga guru and entrepreneur Baba Ramdev was riding high.
The consumer goods empire he co-founded had tapped into the Modi wave. Customers were snapping up Patanjali Ayurved's affordable, Indian-made products such as coconut oil and ayurvedic remedies, in a mounting threat to foreign companies that had bet big on India.
"Turnover figures will force multinational companies to go for kapalbhati," Ramdev declared in 2017, vowing sales would more than double to Rs 200 billion ($2.84 billion) in the year to March 2018. But instead Patanjali's sales plunged 10% to Rs 81 billion. And in the last fiscal year, it likely deteriorated further.
(Source: The Economic Times)
5. Retail Inflation Hits Seven-Month High in May at 3.05%; April IIP Rises to 3.4%
India’s factory output picked up in April to hit a six-month high, while retail inflation accelerated at the fastest pace in seven months in May, but still within the central bank’s tolerance level and leaving scope for more rate cuts.
Data released by the National Statistical Office showed index of industrial production (IIP) expanded at 3.4% in April from 0.3% a month ago, while retail inflation quickened to 3.05% in May from 2.99% in the previous month.
Analysts, however, said it is too early to celebrate the recovery in factory output given the inherent volatility in some of the components such as capital goods, which turned positive in April at 2.5% after a gap of four months.
(Source: Livemint)
6. Modi Govt Achieves Mudra Loan Target Third Year in a Row; Banks Gave This Much Loan Last Year
Prime Minister Narendra Modi’s flagship scheme to support small businesses and entrepreneurs has achieved its annual target for the third consecutive year. In last year’s budget, the government had set an ambitious target of giving small loans worth Rs 3 lakh crore in FY 2018-19 under the Mudra Scheme.
Financial Express Online had reported last month that Modi government was on course to achieve the target for the third consecutive year.
As per the latest official data, smalls loans worth more than Rs 3.21 lakh crore have been sanctioned in 2018-19 under the scheme as against the target of Rs 3 lakh crore. And disbursement was also above the target at around Rs 3.12 lakh crore.
(Source: Financial Express)
7. Financial Services to Add 47,800 New Jobs in Apr-Sept FY20
The financial services sector is likely to add 47,800 new jobs in the first half of this financial year following increasing focus on lending by banks and NBFC's, according to a survey.
"Despite the setbacks seen in NBFCs, the financial services sector has shown a positive outlook in terms of hiring. An important factor that has helped this sector grow is the penetration into the rural markets. The expansion will result in a surge of job opportunities in the tier-II and III cities," TeamLease Services head of BFSI and government vertical Amit Vadera said.
(Source: The Economic Times)
8. Yes Bank Falls After Moody's Places Company Under Review for Downgrade
Shares of YES Bank Ltd fell as much as 3.94 percent to Rs 134.05, their fourth fall in five sessions.
Moody's placed YES Bank's rating under review for downgrade on Tuesday, saying ongoing liquidity pressure would negatively impact the credit profile of the private-sector lender.
The company pared gains on Tuesday after Moody's announcement. Separately, YES Bank was fined Rs 1.1 million rupees by the Reserve Bank of India on Tuesday for not complying with regulatory guidelines.
(Source: BusinessLine)
9. Reliance Capital, Reliance Home Finance Shares Fall as PWC Resigns as Statutory Auditor
Shares of Reliance Capital and Reliance Home Finance tumbled up to 7 percent after Price Waterhouse & Co Chartered Accountants (PwC) resigned as the statutory auditor of both the companies.
The scrip of Reliance Capital plunged 6.82 percent to close at Rs 87.50 on the BSE. During the day, it tumbled 8.83 percent to Rs 85.60, its 52-week low. Reliance Home Finance shares fell by 4.23 percent to close at Rs 17 on the BSE. During the trade, it dropped 7.88 percent to Rs 16.35.
(Source: BusinessLine)
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