QBiz:RBI Clarifies Gov’s Remarks, Bad Loans Rising, Form 16 & More
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1.Over 30 Firms Line Up Plans for IPOs – PTI
Heating up the IPO space, over 30 companies have lined up plans to raise funds totalling over Rs. 20,000 crore through public offers, including big names like IndiGo, Cafe Coffee Day, Matrix Cellular and GVK Airport.
And, at least 20 of these firms have already got the approval from market regulator SEBI to launch their respective initial public offers (IPOs), while draft IPO papers of five firms are currently “under process” but may be cleared soon.
The flurry of activities in the IPO space follows stabilising trends in the stock markets and the companies are looking to raise funds to finance their business expansion and loan repayments and to meet the working capital requirements.
2.United Bank of India Tops List With Highest Bad Loans Among PSU Lenders – PTI
United Bank of India has topped the list of public sector lenders with maximum bad loans including restructured assets as a percentage of total advances.
According to the data provided by the Reserve Bank of India (RBI) to the Finance Ministry, United Bank of India’s 21.5 per cent assets are either bad or have been restructured to save them from turning non-performing assets (NPAs).
The other banks that have significant amount of gross NPAs and restructured loans include, Central Bank of India (21.30 per cent), Indian Overseas Bank (19.40 per cent), Punjab & Sind Bank (18.74 per cent) and Punjab National Bank (17.94 per cent), as of March 2015. The rising bad loans have been a major concern for the RBI as well as the government and steps are being taken to deal with it. Read the rest here.
3.All You Need To Know About Tax Returns - LiveMint
It is that time of the year when you get your Form 16 from your employer and gear up to file income tax returns (ITR) for the financial year gone by. This year the government has come out with a new ITR form. Also there is more to disclose while filing returns—you need to provide your passport number and details of all bank accounts, among others.
Any individual who has a taxable income should file tax return. Currently, if you are below the age of 60 and have an annual income of up to Rs.2.5 lakh, you are exempt from tax. Any income above Rs.2.5 lakh is taxable.
4.Rajan Did Not Imply World Economy Was At Risk: RBI - BS
The Reserve Bank of India (RBI) on Sunday clarified that a section of Raghuram Rajan’s remarks at the AQR conference at London Business School on June 25 has been mis-characterised, as saying ‘the world is at risk of a Great Depression”.
What Governor Rajan did say, in his remarks made off the attached written text, was that the policies followed by major central banks around the world were in danger of slipping into the kind of beggar-thy-neighbour strategies that were followed in the 1930s.
– Alpana Killawala, Principal Chief General Manager, RBI
The Great Depression was a period of great turmoil, caused by many factors and not just beggar-thy-neighbour policies. Governor Rajan did not imply or suggest that there was any risk of the world economy, which is in steady recovery notwithstanding uncertainties like those in the Euro area, slipping into a new Great Depression.
5.Tata Sons Caps Group Cos’ Brand Fee at Rs 75 cr - TOI
Tata Sons, owner of the Tata brand and promoter of Tata companies, has capped the royalty payment from group entities using the Tata name at Rs 75 crore. The cap on maximum royalty amount is aimed at reducing the burden on its large and profitable units and also freeing up cash for their growth. The move by Cyrus Mistry led holding company for India’s largest conglomerate, with a brand value of $21 billion, is in contrast with decisions by several MNCs to saddle their Indian arms with higher royalty payments.
For eg: software giant Tata Consultancy Services, paid Rs 75 crore in fiscal 2015 under the new system. If the old arrangement was in place, it would have had to cough up Rs 236 crore towards brand subscription fee. Tata Motors, which made a loss of Rs 4,739 crore, didn’t pay anything in fiscal 2015.
6.VC Funds Coming in Droves, With Sackfuls of Cash - ET
Risk capital investments in India in the first half of this year have surpassed the money inflow in all of 2014, setting the stage for another record funding year as global interest in domestic technology start-ups peaks.
Venture capital investors funnelled Rs 15,600 crore, or $2.46 billion, into Indian start-ups this year till June 26, compared with Rs 14,850 crore, or $2.34 billion, in 2014. They closed 197 deals between January and now, as against 297 last year, at significantly higher average deal sizes, show data from financial research firm VCCEdge.
7.Govt’s Capital Spend In H1 Might Jump 25% This Year - BS
Even as the Narendra Modi-led government looks to revive the investment cycle through public investment-led infrastructure spending, the Centre’s capital expenditure in the first half of the current financial year (started April 1), is likely to rise a little more than 25 per cent over the year-ago period, to Rs 1.25 lakh crore.
In 2014-15, capital expenditure in the April-September period was Rs 99,100 crore, a rise of only 2.3 per cent over the corresponding period the previous year.
This financial year, however, capital spending as part of non-Plan expenditure could be as high as 50-55 per cent of the full-year target of Rs 1.06 lakh crore. This means up to Rs 58,000 crore would be spent in the first half. And, as part of Plan expenditure, it could be as high as 45-50 per cent of the full-year estimate of Rs 1.35 lakh crore - an expenditure of up to Rs 67,500 crore in the April-September period.
8.HDFC Bank Breaches RBI Limits On Loans To Reliance Industries - PTI
Leading private sector lender HDFC Bank has “exceeded” the single-borrower limits prescribed by Reserve Bank of India (RBI) in case of its credit exposure to corporate giant Reliance Industries (RIL).
The bank, however, said its board of directors approved “the said excess in respect of this exposure” and it was within the 20 per cent ceiling of capital funds. The central bank has fixed the credit exposure ceiling of a bank at 15 per cent of capital funds in the case of a single borrower and at 40 per cent for a borrower group.
RBI allows banks to enhance this exposure by a further five per cent of capital funds in exceptional circumstances, with approval of their boards. Without disclosing the exact amount of the exposure to the Mukesh Ambani-led RIL, HDFC Bank said, “During the year ended March 31, 2015, the bank’s credit exposures to single borrowers and group borrowers were within the limits prescribed by the RBI except in case of RIL, where the single-borrower limits were exceeded.”
9.Deutsche Bank Co-CEO Anshu Jain Accused of Misleading Bundesbank - DNA
Deutsche Bank and its co-chief executive officer Anshu Jain have been accused of deliberately making inaccurate statements to the German central bank to manipulate inter-bank interest rates like Libor, a report from BaFin, a German finance regulator has said in a recent report.
The financial watchdog BaFin has strongly criticized both Deutsche Bank and its senior management for having acted “negligently” and said that Jain “knowingly made inaccurate statements” to Bundesbank during a 2012 interview. German regulator is now investigating their role in manipulating the interbank rates during the financial crisis.
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