1. India’s Real Estate Sector Is in 'Deep Trouble': Raghuram Rajan
India’s real estate, construction and infrastructure industries are in “deep trouble," and non-bank finance companies which lend to these sectors should have their asset quality reviewed, former central bank Governor Raghuram Rajan said.
There is also “significant distress in rural areas," Rajan wrote in an opinion piece in India Today magazine. He said India is in a growth recession, defined as an economy growing at a slow pace and where unemployment is rising.
(Source: Livemint)
2. Domestic Oil Output Down 6.1% in Nov; Gas Production Falls 6.2%
Domestic crude oil production fell 6.1 percent year-on-year (y-o-y) to 2.6 million metric tonne (MMT) in November. Also, the 2,566 million metric standard cubic metre (MMSCM) of natural gas produced in the country in the month was 6.2 percent lower than the production from a year-ago period.
The fall in output is in line with the trend observed in the ongoing fiscal, with domestic crude oil production falling 5.9 percent to 19.1 MMT in April-October and natural gas output dropping 4.3 percent to 18,180 MMSCM in the same period.
(Source: The Financial Express)
3. Paytm’s Vijay Shekhar Sharma Resigns From Financial Services Business; To Be Replaced by Current VP
Alibaba-backed Paytm founder Vijay Shekhar Sharma has resigned as the director at Paytm Financial Services because of “other preoccupations”. He will be replaced by Vice President Rohit Lohia. Lohia joined the organisation in July this year. The resignation letter was seen by Financial Express Online sourced from the business signals platform Paper.vc.
The letter was sent to Paytm Financial Services board of directors on 2 December, 2019. Paytm Financial Services was incorporated in March 2017, around two months before Paytm launched its payments bank – Paytm Payments Bank where Sharma is the Chairman.
(Source: The Financial Express)
4. Tax Breaks Necessary but India Needs More Reforms, Says CEA
Corporate tax rate cuts are necessary but not sufficient to stimulate investments, for which the country needs more reforms, chief economic advisor (CEA) Krishnamurthy Subramanian said on Tuesday.
The CEA said that corporate tax cuts were announced to make India attractive for investors in the face of competition from Thailand, Vietnam and China. “Tax rate cuts are necessary, but are not necessarily sufficient conditions for attracting investments because investors look at after-tax returns," Subramanian said while arguing for more investments.
(Source: Livemint)
5. SBI Reported 862 Crore Profit. It Was Actually a Loss of 6,968 Crore
State Bank of India (SBI), the country's largest lender by assets, under-reported bad loans or non-performing assets (NPAs) worth Rs 11,932 crore for financial year 2018-19. After taking into account divergence in NPAs and provisioning, SBI said its net notional loss stood at Rs 6,968 crore in 2018-19. SBI had in May this year reported a net profit of Rs 862 crore for the period.
Market regulator Sebi mandates banks to disclose any divergence in their assessment of asset classification and provisioning compared with the RBI's estimation.
(Source: NDTV Profit)
6. Former Infosys CEO Vishal Sikka Joins Oracle's Board of Directors
Cloud giant Oracle has named ex-Infosys CEO and founder and CEO of the AI company Vianai Systems, Vishal Sikka, to its Board of Directors.
Before starting Vianai Systems, Mr Sikka was a top executive at tech companies SAP and Infosys.
(Source: NDTV Profit)
7. IGST Settlement: Sushil Modi to Head GoM, FM Nirmala Sitharaman Opts out of Panel
The composition of the Group of Ministers (GoM) on Integrated Goods and Services Tax (IGST) has been changed by the Centre. The GoM will be examining the status of the IGST which reportedly remains unapportioned as of March end last year.
Finance Minister Nirmala Sitharaman has opted out of the ministerial panel, which will now be headed by Sushil Kumar Modi, Deputy Chief Minister of Bihar.
(Source: MoneyControl)
8. Yes Bank Mulls $500 MN Citax Lifeline, Braich Remains in Fray
Yes Bank Ltd on Tuesday said it is considering a $500 million investment offer from London-based Citax Holdings and Citax Investment Group, in what would be a vital financial lifeline for the cash-starved private lender.
A final decision on the investment, which is proposed to be made through a preferential allotment, will be taken at the bank’s next board meeting. In its statement to stock exchanges, the private lender did not give a time frame for the next board meeting.
(Source: Livemint)
9. Bharti Airtel Seeks Shareholders Nod for Raising $3 Billion
Telecom operator Bharti Airtel on December 10 said it has sought shareholders' approval for raising $2 billion in equity and another $1 billion in debt to pay for statutory dues arising out of a recent Supreme Court ruling.
Through an Extraordinary General Meeting (EGM), it sought approval to raise $2 billion through qualified institutional placement, public issue, preferential shares or private placement.
(Source: MoneyControl)
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