1. Government Raises Minimum Purchase Price of Wheat to Help Farmers
India, the world’s second-biggest producer of wheat, raised the minimum purchase price of wheat by 6.8 percent, the biggest increase in six years, to help farmers boost their earnings and enhance output.
The government will pay Rs 1,735 for 100 kilograms of wheat, up from Rs 1,625 a year earlier, farm minister Radha Mohan Singh said in a tweet after a cabinet meeting on Tuesday. That would be the biggest increase since 2011-12, according to government data.
Source: BloombergQuint
2. State-Run Banks To Get Rs 2.11 Lakh Crore Capital Boost
The Indian government on Tuesday announced an allocation of Rs 2.11 lakh crore over two years for the recapitalisation of public sector banks. The plan is intended to help banks make adequate provisions against bad loans and revive lending, which, in turn, may help support a recovery in the economy and private investment.
The re-capitalisation plan is split into two parts, Banking Secretary Rajiv Kumar explained at a press conference in New Delhi.
A bulk of the capital – Rs 1.35 lakh crore – will come via the issue of recapitalisation bonds. The remaining Rs 76,000 crore, which includes Rs 18,000 crore already allocated under the Indradanush Recapitalisation Scheme, will come through budgetary support over two fiscal years.
Source: BloombergQuint
3. GST: Govt Collects Rs 92,150 Crore Revenue in September
Revenue collection under the goods and services tax (GST) remained robust with Rs 92,150 crore collected for the month of September. This is marginally higher than the mop-up in August which was estimated at Rs 90,669 crore.
Data released by the Finance Ministry on Tuesday showed that the total Central GST revenue is Rs 14,042 crore in September while the mop up from State GST is Rs 21,172 crore.
Source: The Hindu Business Line
4. Cabinet Approves Rs 7 Trillion Road Construction Plan, Including Bharatmala
India on Tuesday announced an outlay of Rs 6.92 trillion for building an 83,677 km road network over the next five years. The largest ever outlay for road construction comes in the backdrop of the National Democratic Alliance (NDA) government implementing the goods and services tax (GST) which aims to create a common market by dismantling inter-state tariff barriers. A robust road infrastructure will help in that direction.
“In order to further optimise the efficiency of movement of goods and people across the country, government is launching a new umbrella program,” the government said in a statement.
Source: Livemint
5. Reliance Nippon Raises Rs 463 Crore From Anchor Investors
Reliance Nippon Life Asset Management Ltd on Tuesday mopped up Rs 462.67 crore from anchor investors ahead of its initial public offering which opens on Wednesday.
The Anil Ambani-led Reliance Group’s asset management arm allocated 1.83 crore shares to 35 anchor investors, according to a stock exchange notification.
Shares were allotted at the upper end of the price band of Rs 247-252 apiece. Abu Dhabi Investment Authority, Kuwait Investment Authority Fund, Morgan Stanley Investment Fund Indian Equity Fund, HDFC Trustee Company, SBI Banking and Financial Services Fund, DSP Blackrock Opportunities Fund are among the anchor investors.
Source: BloombergQuint
6. RBI Imposes Rs 2 Crore Penalty on IDFC Bank, Rs 6 Crore on Yes Bank
The Reserve Bank of India (RBI) on Tuesday slapped a Rs 6 crore penalty on Yes Bank Ltd for breaching its rules on classifying non-performing assets and failing to report a security incident involving its ATMs on time. Separately, RBI also imposed a Rs 2 crore penalty on IDFC Bank Ltd for breaching regulations on giving loans.
In a notification, RBI said Yes Bank violated the Income Recognition Asset Classification (IRAC) norms on dealing with assessment of bad loans as of March-end 2016.
Yes Bank was one of three private sector lenders which had reported a sharp divergence between their asset quality classification and provisioning for 2015-16, and what the RBI deemed necessary.
Source: Livemint
7. GIC Re to List on Bourses on Wednesday
State-owned General Insurance Corporation of India will make its stock market debut tomorrow after having concluded the Rs 11,370-crore initial public offer (IPO). GIC Re’s IPO was oversubscribed 1.38 times during the offer period from 11-13 October. The reinsurance company had fixed the price band at Rs 855-912 for its IPO.
The company proposes to utilise the proceeds towards augmenting the capital base to support business growth and maintain current solvency levels as also for general corporate purposes.
Source: PTI
8. Flipkart Investment in Marketplace Shrinks to Rs 27 Lakh, Amazon's Falls to Rs 2,010 Cr in FY17
Amazon has invested 79 percent more in its flagship marketplace in India than Flipkart has in its retail platform, demonstrating the Seattle-based e-commerce giant’s aggressive push to wrest market leadership in the world’s fastest-growing major economy.
Total investment into Amazon Seller Services so far stands at Rs 14,940 crore, as compared to Flipkart’s Rs 8,349 crore through Flipkart Marketplace, according to their latest regulatory filings made in India and Singapore and accessed by ET.
Source: The Economic Times
9. Airtel Likely to Gain Most From Regular Jio Tariff Hikes in 2018: Goldman Sachs
Reliance Jio Infocomm (Jio) is likely to raise tariffs every few months, with the next possible increase in January, with market leader Bharti AirtelBSE 0.83 percent poised to reap the most benefits, said brokerage Goldman Sachs.
“We expect Jio to raise tariffs every few months, with the next potential increase in January 2018,” analysts of the US-based brokerage said in its report dated 24 October.
The telco last week raised its tariffs by 15-20 percent, indicating early signs of stability in the sector ravaged by price wars.
Source: The Economic Times
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