1. Vijay Mallya Seeks to Sell $2 Billion in Assets to Settle Bank Dues
Businessman Vijay Mallya, who is being pursued by Indian authorities over unpaid loans tied to his defunct Kingfisher Airlines Ltd, said on Tuesday he was trying to sell assets worth about ₹13,900 crore ($2.04 billion) to repay creditors. India has asked Britain to extradite Mallya to face trial after the liquor and aviation tycoon fled there in March 2016.
Mallya said in a statement he and his United Breweries Holdings Ltd filed an application on 22 June before a regional high court in India seeking permission to sell the assets that are under judicial supervision. The Enforcement Directorate, which fights financial crimes, also filed an application on the same day seeking to declare Mallya a “fugitive economic offender” and sought to confiscate ₹12,500 worth of his assets.
(Source: Reuters)
2. Gross NPA Ratio of Banks Likely to Worsen by 12%, Says RBI Report
Painting a gloomy picture of the banking sector, the RBI on Tuesday said Gross NPA ratio of banks is likely to rise from 11.6 percent in March 2018 to 12.2 percent by the end of the current financial year ratio.
In its Financial Stability Report (FSR), the RBI said stress in the banking sector continues as gross non-performing advances (GNPA) ratio rises further.
"Macro-stress tests indicate that under the baseline scenario of current macroeconomic outlook, SCBs' (scheduled commercial banks) GNPA ratio may rise from 11.6 percent in March 2018 to 12.2 percent by March 2019," it said.
(Source: PTI)
3. Public Sector Banks More Prone to Frauds, Says RBI’s Financial Stability Report
Frauds across the Indian banking system are rising and public sector banks are the worst hit.
Data released as part of the Reserve Bank of India’s Financial Stability Report shows that the amount involved in frauds rose to more than Rs 30,000 crore in 2017-18. Public sector banks accounted for nearly 85 percent of this.
The increase in frauds comes in a year when government-owned Punjab National Bank detected a Rs 14,000-crore fraud linked to the issue of letters of undertaking. But this may not have been an outlier. Longer-term data provided by the RBI shows that private banks have been far more successful in containing incidents of fraud compared to their public sector peers.
(Source: BloombergQuint)
4. Central Government Employees to Not Overtime Allowance Anymore
The government has decided to discontinue overtime allowance given to central government employees except operational staff, according to an order issued by the personnel ministry. The move follows a recommendation of the 7th Pay Commission in this regard.
It has been clarified by the department of expenditure that the government has decided that given the rise in the pay over the years, the recommendations of the 7th Pay Commission to discontinue the overtime allowance for categories other than operational staff and industrial employees who are governed by statutory provisions may be accepted.
Accordingly, it has been decided to implement this decision across all the ministries/departments and attached and subordinate office of the Government of India.
(Source: Livemint)
5. Another AirAsia India Top Executive Kiran Jain Resigns
Kiran Jain, AirAsia India’s chief commercial officer who had in the last six months been heading the role of liaisoning with the government for the contentious airline, has resigned.
An airline spokesperson confirmed her exit and added she “has decided to move on for personal reasons.”
Jain’s resignation comes a month after the airline’s CEO Amar Abrol stepped down, even as the airline remains in controversy with a CBI investigation against Tony Fernandes, the CEO of its parent Malaysian low fare carrier AirAsia Berhad and his colleagues. The CBI has named Fernandes and others in an FIR alleging them of conspiracy and bribes to have government rules changed as well as issues of management control.
(Source: The Economic Times)
6. A Big Success of GST Implementation Is There Has Not Been Any Inflation: Hasmukh Adhia
Finance secretary Hasmukh Adhia expects average goods and services tax (GST) revenues of Rs 1 lakh crore a month this year, with collections rising substantially as evasion is checked. As GST rollout completes one year, Adhia tells ET in an interview that the impending simplified form will make evasion difficult.
(Source: The Economic Times)
7. AIIB Meet: Fiscal Situation in India Is Firmly Under Control, Says PM Modi
Prime Minister Modi on Tuesday said the fiscal situation in India is firmly under control and the government is committed to fiscal consolidation. India’s external sector is robust with foreign exchange reserves in excess of over $400 billion, providing stability and confidence to invest in the country, Modi said during the opening ceremony of the third annual meeting of Asia Infrastructure Investment Bank (AIIB) in Mumbai.
The Government aims to reach the fiscal deficit target of 3.3 percent of GDP in BE 2018-19. The Medium term Fiscal policy statement projec
(Source: Business Standard)
8. IndusInd Bank To Acquire IL & FS’ Brokerage Business
Private sector lender IndusInd Bank Ltd today said it is acquiring infrastructure lender IL&FS’ brokerage business for an undisclosed sum.
The city-based lender, which has recently got the final nod for a merger with microlender Bharat Financial Inclusion Ltd., has received the Reserve Bank of India’s go-ahead for acquiring IL&FS Securities Services, it said in a statement.
“The acquisition will help us scale up the present capital market business in the bank and bring new specialised products, hitherto not offered by us, to our clients,” said Romesh Sobti, managing director and chief executive officer of IndusInd Bank.
(Source: PTI )
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