(To read same information directly from the newspaper site, links are provided in the pdf version)
August exports shrink 12.6%, trade deficit hits 4-month high of $6.77 bn:
After reducing for three months, the pace of contraction of India’s exports rose in August. Export earnings in the month declined by 12.6 per cent year on year, higher than July's 10.2 per cent fall, as trade in major foreign exchange earners such as petroleum, gems, electronics, and textiles continued to take a hit. Outbound trade stood at $22.7 billion, completing six straight months of contraction. The data for August, released by the commerce department on Tuesday, shows cumulative exports in the first five months of the financial year fell 26.65 per cent compared to the same period in the previous year. Imports fell by 26.04 per cent to $29.47 billion, after July's 28.4 per cent fall. The rate of contraction of imports has continued to reduce over the past five months. After witnessing a rare trade surplus of $800 million in June, the trade deficit climbed to $6.77 billion, a four-month high. (BUSINESS STANDARD)
Exports down for sixth straight month falling nearly 13% in August : (ECONOMIC TIMES)
India's trade deficit narrows to $6.77 billion in August, exports fall 12.66%: (ECONOMIC TIMES)
Over 1,600 firms got $1 bn FDI from China during Apr 2016-Mar 2020: Govt
More than 1,600 Indian companies have received foreign direct investments worth $1 billion from China during the April 2016 to March 2020 period, according to government data. Over 1,600 companies received $1,020.25 million ($1.02 billion) Foreign Direct Investment (FDI) equity inflows from China for the April 2016 to March 2020 period, as per the data. These companies were in 46 sectors. Out of them, the automobile industry, printing of books (including litho printing industry), electronics, services and electrical equipment received more than $100 million FDI each from China during the said period. The automobile industry received the maximum FDI from China at $172 million. The services sector attracted such funds worth $139.65 million, the data showed. (BUSINESS STANDARD)
Covid-19 impact: India's economy to contract 9% in FY21, says ADB
India's coronavirus-battered economy will shrink by 9 per cent this fiscal, the Asian Development Bank (ADB) predicted on Tuesday saying growth outlook remains highly vulnerable to either a prolonged outbreak of the pandemic or a resurgence of cases. This will be the first time in four decades that the Indian economic growth will contract. In its Asian Development Outlook (ADO) 2020 Update, ADB forecasts a strong recovery for the economy in FY2021, with gross domestic product (GDP) growing by 8 per cent as mobility and business activities resume more widely. (BUSINESS STANDARD)
ADB expects India's economy to contract by 9% in FY2020-21, sees strong recovery in FY22 (ECONOMIC TIMES)
RBI proposes to launch exchange-traded, OTC interest rate derivatives:
The Reserve Bank of India (RBI) on Tuesday proposed to introduce exchange-traded and over-the-counter (OTC) interest rate derivatives products that would be accessible to both foreign investors and retail participants. Retail participants can, however, only use the product for hedging, while non-retail participants can use it for any purpose.In a draft guideline released on its website, the central bank said retail participants can be allowed to trade on Forward Rate Agreement (FRA), Interest Rate Swap (IRS), and European Interest Rate Options (IRO), including caps, floors, collars and reverse collars, while non-retail traders can take exposure in swaptions and structured derivative products, excluding leveraged derivatives and derivatives on derivatives. Presently, only interest rate futures and interest rate options are allowed on government securities. With the introduction of many more IRF products, corporate debt could also be incorporated for making derivatives over time, say experts. Foreign Portfolio Investors (FPIs) would be allowed to transact in permitted exchange-traded interest rate derivatives (IRD) for a collective Rs 5,000 crore in net long positions. (BUSINESS STANDARD)
RBI issues draft Rupee interest rate derivatives: (FINANCIAL EXPRESS)
Government plans to introduce law to ban cryptocurrency trading :
India plans to introduce a new law banning trade in cryptocurrencies, placing it out of step with other Asian economies which have chosen to regulate the fledgling market. The bill is expected to be discussed shortly by the federal cabinet before it is sent to parliament, according to people familiar with the development who who asked not to be identified, citing rules on speaking with the media. The federal government will encourage blockchain, the technology underlying cryptocurrencies, but is not keen on cryptocurrency trading, according to two people. India’s finance ministry spokesman didn’t respond to call and a message seeking comments. (ECONOMIC TIMES)
Government plans to introduce law to ban cryptocurrency trading: Report (MINT)
SBI Card working on giving customers facility to see credit scores in login accounts: MD & CEO
SBI Card is working on providing customers the facility to see their credit bureau scores when they log in to their credit card accounts, its MD and CEO Ashwini Kumar Tewari said. Tewari, who took charge last month, used to handle State Bank of India's New York office operations, covering three branches -- New York, Chicago and Los Angeles. (ECONOMIC TIMES)
SBI Card working on giving customers facility to see credit scores in login accounts: MD & CEO (FINANCIAL EXPRESS)
Central Bank of India reduces MCLR by 5 bps:
Central Bank of India has reduced its marginal cost of funds-based lending rates (MCLR) by 5 basis points (bps) across all tenors, effective from Tuesday. The city-based lender has cut the one-year MCLR to 7.10 per cent from 7.15 per cent, a release said. Overnight and one-month MCLRs have been reduced to 6.55 per cent from 6.60 per cent earlier. The new three-month and six month MCLR will stand at 6.85 per cent and 7 per cent, respectively. (ECONOMIC TIMES)
Nabard to take up short term skill development programmes for reverse migrant workers:
National Bank for Agriculture And Rural Development (Nabard) will soon start a short-term skill development programme for reverse migrants that will help them to get re-employed at the earliest. The board has initially sanctioned programmes for Uttar Pradesh, Bihar and Jharkhand and seeks to work with the National Skill Development Corporation accredited national skill development centres.(FINANCIAL EXPRESS)
38 persons flee India after committing bank frauds in five years; PSU banks sit on pile of NPAs:
The Central Bureau of Investigation (CBI) has informed that as much as 38 persons have fled India after committing bank frauds in the five years to 2019. Further, the Enforcement Directorate apprised that application for Red Corner Notices was filed against 20 persons under the Prevention of Money Laundering Act, 2002, and extradition requests were sent in respect of 14 persons to various countries. Also, applications under the Fugitive Economic Offenders Act, 2018 were filed against 11 persons, Anurag Thaur, MoS, Ministry of Finance, said in a reply to a question in Lok Sabha. The government said that various policy measures have been taken for deterring, preventing, and taking effective action against business persons fraudulently obtaining loans and fleeing the country. These include the enactment of the Fugitive Economic Offenders Act, 2018, which provides for attachment of property of a fugitive economic offender, confiscation of his property, and disentitling him from defending any civil claim. (FINANCIAL EXPRESS)
LIC to pare IDBI Bank holding in tranches:
Life Insurance Corporation of India (LIC) is planning a gradual sale of its stake in IDBI Bank, three people aware of the matter said, nearly two years after it rescued the lender at the Centre’s instance. In January 2019, India’s largest insurer bought 44% stake in IDBI Bank for ₹21,624 crore, saving it from collapse. After the stake purchase, LIC holds 51% in the bank. LIC and government officials are discussing the stake sale plan, the people mentioned above said on condition of anonymity. IDBI Bank has secured shareholder approval to raise up to ₹11,000 crore this fiscal in two tranches via equity sales, while LIC is looking for the bank’s stock price to improve before selling its stake. (MINT)
Lakshmi Vilas Bank says due diligence for Clix Group deal complete:
Private sector lender Lakshmi Vilas Bank on Tuesday said that the mutual due diligence for its deal with Clix Group is “substantially complete". “We wish to inform that the mutual due diligence is substantially complete, and the parties are in discussions on the next steps," the bank said in a regulatory filing. The bank has shortlisted three firms for a valuation exercise and is likely to finalise one over the next week, said a person aware of the matter. On 30 July, Lakshmi Vilas Bank had said its deal with the Clix Group might be delayed owing to Covid-19 and both parties have agreed to extend the exclusivity period till 15 September, 2020. Meanwhile, the bank’s capital adequacy ratio (CAR) as per Basel III guidelines contracted to 0.17% as on 30 June, as against a regulatory minimum of 10.875%. The bank reported a net loss of ₹112.28 crore in the June quarter of FY21, compared to a loss of ₹237.25 crore in the same period last year. (MINT)
MFs piled on private lenders in Aug:
Despite fears of defaults and end of the moratorium period, private banks were strong favourites among fund managers in August after hitting a 22-month low in July, while net outflow from equity schemes surged to a 10-year high, data for India’s top 20 mutual fund houses showed.The weightage of private banks in mutual fund schemes was up by 110 basis points (bps) from 16.2% in July to 17.3% in August. However, the weightage is still 280bps lower compared to 20.1% in the year-ago, according to data from Association of Mutual Funds in India (Amfi) and NAV India.Technology (10.2%), oil and gas (9.1%) and consumer (8.8%) made up for the other top sector holding for mutual funds in August. But, the weightage for oil and gas slipped by 60bps from July to a 3-month low of 9.1% after rising for two straight months. The consumer sector’s weight fell for the third consecutive month to 8.8%, down 40bps from July. (MINT)
No comments:
Post a Comment