1. SBI Reduces Savings Rate, Sets Stage for RBI Rate Cut
State Bank of India (SBI) cut the interest rate on savings accounts with balance of up to Rs1 crore by 50 basis points to 3.5 percent – the first time the key rate has been cut since being deregulated in 2011. Coming two days ahead of the monetary policy review by the Reserve Bank of India (RBI), the cut, likely to be emulated by other banks, may eventually lead to lower lending rates as well.
In a notice to stock exchanges on Monday, India’s largest lender said it was introducing a two-tier savings rate effective immediately. Deposits above Rs 1 crore will continue to earn an annual interest of 4 percent.
One basis point is one-hundredth of a percentage point.
Source: Livemint
2. ITR Deadline Extended to 5 Aug
The income tax (I-T) department on Monday extended the last date for filing tax returns by five days to 5 August due to the last-minute rush that slowed down the e-filing portal, bringing relief to many taxpayers.
The department said in a statement that the deadline was extended in view of the difficulties faced by taxpayers.
Since Monday morning, the incometaxindiaefiling.gov.in portal slowed due to heavy traffic which made it difficult for many taxpayers to link their Aadhaar numbers with the permanent account number (PAN) and file returns. The department attributed the difficulty in logging in to the e-filing portal to “last-minute rush and panic”.
Taxpayers now have time till 31 August to link their Aadhaar number with PAN. For the time being, it would be sufficient to quote Aadhaar or the acknowledgement number received while applying for it on the income tax e-filing website.
Source: Livemint
3. India’s Fiscal Deficit Hits 80.8% Of Full-Year Target In June
India’s fiscal deficit in June reached 80.8 percent of the government's target for the financial year 2017-18.
Fiscal deficit, the difference between the government's expenditure and revenue, stood at Rs 44.1 lakh crore, data released by the Controller General of Accounts showed. The Union Budget 2017-18 had set the fiscal deficit target for FY18 at Rs 54.7 lakh crore target or 3.2 percent of the gross domestic product.
The government's decision to announce an early Budget and front-load subsidy payments, in an attempt to jump-start the investment cycle, resulted in a deficit higher than the same period last year. The fiscal deficit had hit 61 percent of last year's target in June.
Source: BloombergQuint
4. Markets Log Best Performance in 16 Months
Investor optimism towards the Indian markets was on display in July as the benchmark indices posted their best monthly gains since March 2016.
The Nifty conquered the 10,000 mark for the first time, with a gain of nearly six per cent, while the Sensex rose 5.2 percent to end above 32,500, an all-time closing high. The stellar show in July has taken the year-to-date gains to more than 21 percent.
The rally was led by blue-chip stocks, with the broader markets underperforming the benchmarks. The BSE MidCap and SmallCap indices have gained five per cent and four per cent, respectively.
Source: Business Standard
5. RBI Asks Banks to Enable Account Number Portability
RBI Deputy Governor SS Mundra has asked banks to work towards account number portability as it will be a far-reaching step towards enhancing competition and improving customer service.
Speaking at the annual conference of banking ombudsmen here recently, he said banks should look forward to providing more choices to the new generation of customers who are more technology savvy.
A scenario was thus emerging wherein customers would be able to silently walk out from one institution to another, in case of any dissatisfaction with the services.SS Mundra, Deputy Governor, RBI
Source: PTI
6. Snapdeal Calls Off Deal With Flipkart, Says It Will Walk Alone
Snapdeal rejected a takeover bid from rival Flipkart Online Services Pvt., bringing to an end months of negotiations between the two Indian e-commerce companies.
The Jasper Infotech-owned Snapdeal will compete alone in the Indian e-commerce market, it said in an emailed statement on Monday. In addition, it will sell some none-core assets in order to be “financially self-sustainable”, the startup which is set to post a gross profit this month, added.
We are already profitable at a gross profit level, with clear visibility to making upwards of Rs 150 crore in gross profit in the next 12 months.Kunal Bahl and Rohit Bansal, Sanpdeal Founders
Source: BloombergQuint
7. IGST Collection From Imports Rises About 60%
The collection of Integrated Goods and Services Tax from imports crossed Rs 20,000 crore in July — the first month of the roll out of the new indirect tax regime, pointing towards a major jump in revenues. Total customs revenues in July 2017 stood at Rs 26,500 crore as against Rs 16,625 crore collected in July 2016.
However, an official said IGST collections have also received a boost from the fact that there is a component of state GST as well in the tax.
Besides, the government has done away with a number of countervailing duty (CVD) exemptions and not extended them under the GST regime that were available in the previous tax regime, such as that on some electronic products.
Source: The Economic Times
8. India Set to Block $1.3-Bn Chinese Pharma Takeover
India is poised to reject Shanghai Fosun Pharmaceutical Group’s proposed $1.3-billion takeover of drugmaker Gland Pharma, according to people familiar with the matter, scuppering the biggest-ever Chinese acquisition in the country.
The Cabinet Committee on Economic Affairs (CCEA), which is chaired by Prime Minister Narendra Modi, has decided to block the Chinese firm’s purchase of an 86 per cent stake in Gland Pharma, according to the people.
The companies haven’t been formally notified of the move yet, the people said, asking not to be identified because the information is private.
Tensions between China and India have escalated amid a renewed spat over territory in a remote area of the Himalayas, one of the most serious flare-ups between the two Asian giants since a border war in 1962.
Source: Business Standard
9. No Sops on Imported Equipment for Apple: Nirmala Sitharaman
iPhone maker Apple’s demand for custom duty rebate on imported equipment has been turned down.
In a written reply to the Lok Sabha, commerce and industry minister Nirmala Sitharaman said “requests regarding such rebate were examined and… not accepted.”
However, with a view to promote domestic manufacturing capacities and value addition, it has further been provided that this relaxation will be valid for an initial period of three years from the opening of the first store.Nirmala Sitharaman
The demand was rejected on grounds that already, zero basic customs duty, excise duty — except on charger, battery and speaker — and special additional duty (SAD) had been prescribed for components and accessories for final manufacture.
Source: Economic Times
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