No Plans to Introduce New Denomination Notes at Present: RBI
The Reserve Bank of India (RBI) at present has no idea of introducing new denomination currencies, a top official of the central bank said on Sunday. “Presently RBI has no idea to introduce currencies of new denominations. The central banking institution wants to encourage cashless transactions, which are helpful to the people”, RBI Deputy Governor N S Vishwanathan said while speaking at a lecture on credit culture and financial system. He said NPAs (Non Performing Assets) are affecting the income and profit of banks. Banks cannot escape from the responsibility of controlling NPAs in their balance sheets, he said.
FPI inflows hit $6 billion in March on hopes of more reforms
Foreign investors have pumped in about USD 6 billion in capital markets so far this month, buoyed by expectations that BJP’s victory in assembly polls is a precursor to more “bold, reformist policies” in India. The inflows follow a net investment of Rs 15,862 crore in equity and debt last month. Prior to that, FPIs had pulled out a total of over Rs 80,000 crore from October to January. According to depository data, foreign portfolio investors (FPIs) infused a net sum of Rs 22,268 crore in equities during March 1-24 and another Rs 16,177 crore in the debt segment, translating into a combined inflow of Rs 38,445 crore (USD 5.84 billion).
Arbitration on compensation demand in RIL-ONGC row starts
A three-member arbitration panel has started hearing validity of the government’s demand of USD 1.55 billion as compensation from Reliance Industries for “unfairly” producing ONGC’s gas. The panel, headed by Singapore-based arbitrator Prof Lawrence Boo, had its first hearing on March 3, where the timetable was drawn, and sources privy to the development said. RIL will first file its statement of claim, followed by a statement of defence by the government. This will be followed by rejoinders, counter-rejoinders and oral hearing, sources said, adding that the panel plans to wind up the hearing in a year. The central government has named former Supreme Court judge G S Singhvi as its nominee on the three-member arbitration panel while RIL and its partners BP Plc of the UK and Canada’s Niko Resources have named former UK High Court Judge Bernard Eder to the panel.
CBDT to waive interest if tax paid in retrospective cases
The tax department will waive interest liability if the principal demand of capital gains tax is paid by companies like Cairn India and Vodafone plc. The Central Board of Direct Taxes (CBDT) on 24 March issued a circular for waiver of interest in disputed tax demand in different scenarios. In cases where tax liability arose because of retrospective amendment to the law or a court ruling, the interest payable on the demand will be waived, it said.
Govt may table GST Bills in Parliament on Monday
The Government is likely to table supplementary goods and services tax legislations in Parliament tomorrow. Sources said C-GST, I-GST, UT-GST and the compensation law are likely to be introduced in the Lok Sabha tomorrow and could be taken up for discussion as early as March 28. Also, amendments to the excise and Customs Act to abolish various cess as well as furnishing Bills for exports and imports under the new GST regime will be placed before the House. The Business Advisory Committee of the Lok Sabha is likely to meettomorrow to decide on the duration of discussion on the Bills, the sources added.
Coal India announces second interim dividend for 2016-17
The state-owned Coal India Ltd (CIL) on Sunday came out with a second interim dividend of Rs 1.15 per share for the current financial year. The decision on the same was taken during the board meeting held on Sunday. “The board of directors of CIL in its meeting on March 26, 2017, has approved payment of 2nd interim dividend for the financial year 2016-17 at Rs 1.15 per share of the face value of Rs 10 as recommended by the Audit Committee of CIL in its meeting…,” the company said in a BSE filing.
General Insurance Premium set to go up From April 1
Car, motorcycle and health insurance will cost more fromApril 1 with regulator Irdai giving go-ahead to insurers for revision in commission for agents. The change in premium after modification will be limited to +/- 5 per cent of the existing rates. The increase will be in addition to the enhanced third party motor insurance rates, which too will come into effect from April. The Irdai (Payment of Commission or Remuneration or Reward to Insurance Agents and Insurance Intermediaries) Regulations, 2016 comes into effect from April 1, 2017.
SBI workforce may see 10% reduction by 2019; hiring to fall by 50%: MD
The total workforce of the country’s largest lender — State Bank of India (SBI) — will see a reduction over the next two years, after the merger with six entities, owing to attrition, reduced hiring and digitisation, a top official said. “Manpower will go down with the period of time. Around 10 per cent reduction in two years may be a possibility,” Rajnish Kumar, SBI managing director, told IANS in an interview. Currently, the public lender has around 207,000 workforce and the merger of six entities — SBBJ (State Bank of Bikaner and Jaipur), SBM (State Bank of Mysore), SBT (State Bank of Travancore), SBP (State Bank of Patiala) and SBH (State Bank of Hyderabad), Bharatiya Mahila Bank — from April 1 will add approximately 70,000 employees.
RPL share sale: RIL’s explanation for Rs. 447-cr ‘illegal gains’ made post-facto, says SEBI
After 10 years of investigations and a few back-and-forth arguments, market regulator SEBI, under its new chief Ajay Tyagi, has found Reliance Industries Ltd (RIL) guilty of unfair trade practices and “perpetrating fraud in the securities market”, resulting in “illegal gains” for the company. The case dates back to March 2007, when the Mukesh Ambani-led RIL decided to sell a 5 per cent stake in its listed subsidiary Reliance Petroleum Ltd (RPL). Instead of selling shares directly in the cash market and risking a fall in the price, RIL chose to bet against its subsidiary’s shares in the derivatives market through 12 front entities.
Source: The Hindu Business Line
GIC may be first PSU general insurer to launch IPO next fiscal
General Insurance Corporation (GIC Re) is likely to be the first PSU insurer to tap the capital market as the finance ministry has started scouting for merchant bankers to manage its IPO. Two months after the Union cabinet gave a go ahead to the listing of five general insurance companies, the Department of Investment and Public Asset Management (DIPAM) has set the ball rolling for listing of GIC Re. The government holds 100% stake in GIC Re, which provides reinsurance support to 54 general and life insurance companies, both public and private, in the Indian market.
CBEC rechristened Central Board of Indirect Taxes and Customs
Ahead of the implementation of the Goods and Services Tax (GST), Finance Minister Arun Jaitley has given his nod for the reorganisation of the field formations of the Central Board of Excise and Customs (CBEC). The CBEC is being renamed as the Central Board of Indirect Taxes and Customs (CBIC), after getting legislative approval. For this purpose, the Central Board of Revenue Act, 1963, is expected to be amended in the coming days. The existing formations of the central excise and service tax under the CBEC have been re-organised to implement and enforce the provisions of the proposed GST laws, an official release said.
Source: The Hindu Business Line
CAG to audit fallout of demonetisation
The Comptroller and Auditor General of India (CAG) plans to audit the impact of note ban and the affect it has had on government tax revenues, said CAG Shashi Kant Sharma. In an interview to PTI, he said the auditor is gearing up to audit tax revenues under the new Goods and Services Tax (GST) regime and has started capacity building and reorienting its audit methodology and procedures. Among the special audits, CAG has already completed audit of agricultural crop insurance scheme and flood control and flood forecasting and is now engaged in several important audits like Right to Education, National Rural Health Mission, defence pensions and Ganga Rejuvenation, he said. “These reports should be ready by the end of the current year.”
HZL plans solar power projects worth Rs 425 cr by next yr: CEO
Hindustan Zinc today said its 15 MW solar projects in Rajasthan will get commissioned this month, and it is also planning to invest Rs 425 crore for 85 MW power plants by next year. “We are in the process of putting up 15 MW (rooftop solar power plants) which will get commissioned beforeMarch 31. We would be using 15 MW for captive use,” Hindustan Zinc (HZL) CEO Sunil Duggal told PTI in an interview. The Vedanta Group firm has already invested 75 crore in 15 MW solar power projects, Duggal said, adding that the company is planning to pump in Rs 425 crore for 85 MW power plants.
Bank union protests RBI decision to keep branches open next week
Bank officers’ union All India Bank Officers’ Confederation (AIBOC) has registered a protest against the Reserve Bank of India’s decision to keep bank branches open on all holidays till1 April to facilitate government tax collection. “In our opinion, the necessity to open the branches for transacting government business on all holidays one week before the end of the financial year is not at all required. There are four full normal working days between 25th and 31st March 2017, which is more than enough to complete all government transactions,” AIBOC said in a statement.
At 23rd spot, HDFC Bank MD Aditya Puri beats Facebook’s Mark Zuckerberg in Barron’s 30 best CEO’s list
American financial magazine Barron’s has listed the name of HDFC Bank managing director Aditya Puri’s name in its list of world’s 30 best CEOs. The 66-year-old holds 23rd position in the list beating social media giant Facebook’s CEO Mark Zuckerberg who is listed on the 30th spot. While the top position has been secured by Mary Barra of General Motors, Gary Dickerson of Applied Materials is on the second spot, Stephen Hemsley on third Jensen Huang of Nvidia on forth and Microsoft’s CEO Satya Nadella is on fifth sport along with the names of Amazon’s CEO Jeffrey Bezos, Netflix’s CEO Reed Hastings, Starbucks’ CEO Howard Schultz on different spots in the list. Explaining reasons behind listing Puri’s name, Barron’s said the man has transformed HDFC Bank from a start-up into one of the world’s highest-quality banks, generating eye-popping returns by maintaining lending standards and expanding beyond corporate loans into a full-service retail bank.
FinMin, RBI working out new mechanism to tackle NPAs
As most of the restructuring schemes have failed to turn around companies, the government and the central bank are now working on a new plan to enable banks to reduce their toxic assets and strengthen their balancesheets. Government sources told FC that as per the initial round of discussions between the finance ministry and the Reserve Bank of India (RBI), it has been agreed that banks should be allowed more flexibility to take a haircut, especially in cases, where chances for improving the quality of asset are higher.
Source: My Financial Digital Chronicle
NEW
What goes around, comes around”. The double edged sword of demonetisation has made the ever so influential government yearning for more when it comes to getting paid by the vulnerable PSUs in the form of dividends. To add to demonetisation, the ever increasing NPAs have ensured that some public sector banks (PSBs) may even ignore releasing dividend which will have an adverse effect on government revenues and their state programmes. Protocol says that state-run firms have to cough up a minimum annual dividend of 30 per cent of their net profit or 5 per cent of its net worth, whichever is higher unless they can justify that the funds reserved are being optimally utilised to ensure higher investment.
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