Full text: RBI keep repo rate unchanged at 6.25%
Sixth Bi-monthly Monetary Policy Statement, 2016-17 Resolution of the Monetary Policy Committee (MPC), Reserve Bank of India. On the basis of an assessment of the current and evolving macroeconomic situation at its meeting today, the Monetary Policy Committee (MPC) decided to: 1) keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6.25 per cent. Consequently, the reverse repo rate under the LAF remains unchanged at 5.75 per cent, and the marginal standing facility (MSF) rate and the Bank Rate at 6.75 per cent.
There is a scope for lending rates to fall further: Urjit Patel
Although the Reserve Bank of India has refrained from cutting policy rates, the RBI has subtly nudged banks to lower lending rates. Addressing media, governor of RBI Urjit Patel said that there is a scope for lending rates to come down. On Wednesday, the RBI kept policy rates unchanged at 6.25%. “There is still scope for lending rates to come down since our policy rates have come down by 175 basis points since January 2015 while the weightage average lending rates have fallen by 80 to 85 basis points,” Urjit Patel said in response to a question whether he expects banks to lower lending rates.
CCI clears Reliance Infra-Adani transmission deal
The Competition Commission has approved the acquisition of power transmission business of Anil Ambani-led Reliance Infrastructure by Adani group firm Adani Transmission. As per the deal, R-Infra will sell its Western Region Transmission Gujarat project (WRTG) and the Western Region Transmission Maharashtra project (WRTM) to Adani Transmission. The company will also sell its 74 per cent in Parbati Koldam Transmission Company (PKTCL) in Himachal Pradesh and Punjab to Adani Transmission.
7.6 lakh citizens receive Rs 117 cr for paying digitally
Over 7.6 lakh consumers and merchants won prize money worth Rs 117.4 crore under two incentive schemes — Lucky Grahak Yojana and DigiDhan Vyapar Yojana — as on February 7, 2017, NITI Aayog said today. “The schemes have seen active participation from both males and females,” a NITI Aayog statement said, adding that the latest data show that Maharashtra, Tamil Nadu, Andhra Pradesh, Uttar Pradesh and Karnataka have emerged as top five states with maximum number of winners.
United Breweries asks Vijay Mallya to step down as non-executive chairman
United Breweries Ltd (UBL), the maker of Kingfisher beer, late on Wednesday asked Vijay Mallya to step down as non-executive chairman of the company, effective immediately. The decision was taken at the company’s board meeting on Wednesday. The Securities and Exchange Board of India (Sebi) had last month barred Mallya and six former United Spirits Ltd executives from accessing the securities market for alleged violations of the listing agreement, diversion of funds and fraud.
Cognizant To Return $3.4 Billion To Shareholders Over Next 2 Years
Information-technology services major Cognizant Technology Solutions Corp. on Wednesday posted 1.8 percent dip in net profit at $416 million for the December quarter from $ 424 million in the year-ago period, on account of certain “out-of-period corrections.” Revenue during the reported quarter was up 7.1 percent at $ 3.46 billion from $3.23 billion in the year-ago period. “In connection with the company’s ongoing internal investigation disclosed on Form 8-K furnished September 30, 2016, we recorded out-of-period corrections during the third and fourth quarters of 2016 related to certain payments that were previously capitalised that should have been expensed,” the company said in statement.
SoftBank writes off $475-million investment in Ola, Snapdeal
Japanese investor SoftBank has written off around $475 million (Rs 3,226 crore) in the value of its combined shareholding in Ola and Snapdeal, its two largest investments in the country, in the nine months till December 31. It reported a loss of 39,281 million yen in the value of the company’s investments, primarily in India, on Wednesday. The loss reported was despite foreign exchange gains of 16,133 million yen. “Gain or loss arising from financial instruments at FVTPL (fair value through profit or loss) comprises mainly changes in the fair value of preferred stock investment including embedded derivatives, such as ANI Technologies and Jasper Infotech in India, designated as financial assets at FVTPL,” it said.
RBI to lift all cash withdrawal limits from March 13
The Reserve Bank of India (RBI) said it would remove the cash withdrawal limit from automated teller machines (ATMs) and savings accounts from March 13. Cash withdrawal limit from savings bank accounts will be relaxed to 50,000 rupees ($743.27) a week between Feb. 28 and March 13, after which it will be removed, RBI Deputy Governor R. Gandhi said after the monetary policy meeting on Wednesday. The RBI had imposed these limits in November after the government announced a ban on old high-value currency notes, and began to replace them with new notes. ($1 = 67.2700 Indian rupees).
NSE selects IDFC’s Vikram Limaye as its new CEO
Leading stock exchange NSE has selected IDFC chief Vikram Limaye as its new Managing Director and CEO, two months after the sudden exit of Chitra Ramkrishna from the top post. The appointment comes at a time when the exchange is preparing to launch its IPO estimated to be worth over Rs. 10,000 crore. Besides, the bourse is facing regulatory issues over alleged preferential access to a few for co-location and algo trade facilities. “The board of directors of NSE has approved the appointment of Limaye, Managing Director and CEO of IDFC, as the Managing Director and CEO of NSE,” IDFC said in a regulatory filing today.
Source: The Hindu Business Line
RBI to set up panel on strengthening cyber security
In a bid to strengthen cyber security system, the Reserve Bank of India (RBI) on Wednesday decided to set up an inter-disciplinary panel on cyber security to examine various threats and suggest measures to deal with it. “While banks have taken steps to strengthen their defences, the diverse and ingenious nature of recent cyber-attacks necessitates an ongoing review of the cyber security landscape and emerging threats. Towards this end, an inter-disciplinary Standing Committee on cyber security is being constituted,” the RBI said in a statement.
Foreign direct investment jumps 60% to $4.68 bn in Nov
With the government taking steps to improve the ease of doing business and relax regulations, foreign direct investment into the country surged by 60 per cent to $4.68 billion in November 2016. FDI stood at $2.93 billion in November 2015. During the period, India received maximum FDI from Singapore, Mauritius, the UK, the US, the Netherlands and Japan, an official said. Cumulatively, India attracted $32.49-billion foreign inflows in April-November period of the current fiscal against $24.81 billion in the same period previous year.
Source: The Hindu Business Line
Petrol prices lower now than in 2013-14: Govt
The prices of petrol are lower than the 2013 level and the money collected through taxes on petro products was being used to develop infrastructure and creating educational facilities, government said today. Union Minister Rajyavardhan Singh Rathore, who was replying to questions in Rajya Sabha on behalf of his colleague Petroleum Minister Dharmendra Pradhan, said the price of petrol had come down from what they were in 2013. In July-August 2014, the price was 73.60 paise whereas in January 2017 it is 71, he said during the Question Hour.
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