Banking updates: January 2019

Thursday, January 31, 2019

Dr.Reddy's Lab Q3FY19E Result Expectation

The pharma major is expected to report flat revenue growth in the absence of any big product launch.

from India Infoline News Service http://bit.ly/2RWbDf8

SBI Q3FY19E Result Expectation

Asset quality is expected to improve during the quarter. GNPL ratio stood at 9.8% as of Q2FY19, with a 54% PCR.

from India Infoline News Service http://bit.ly/2Wwjb77

Short covering propels Nifty 179 points higher

Axis Bank hits fresh 52 week high.

from India Infoline News Service http://bit.ly/2BcGhq6

Scheduled Banks’ Statement of Position in India as on Friday, January 18, 2019

(Amount in Billions of ₹)
		SCHEDULED COMMERCIAL BANKS (Including RRBs)			ALL SCHEDULED BANKS
		19-Jan-18	04-JAN-2019 *	18-JAN-2019 *	19-Jan-18	04-JAN-2019 *	18-JAN-2019 *
I	LIABILITIES TO THE BKG.SYSTEM (A)
	a) Demand & Time deposits from bks.	1467.54	1586.49	1588.68	1516.69	1628.81	1631.29 **
	b) Borrowings from banks	760.39	717.13	831.11	765.42	722.08	834.24
	c) Other demand & time liabilities	138.78	163.66	148.08	140.19	165.24	148.95
II	LIABILITIES TO OTHERS (A)
	a) Deposits (other than from banks)	109274.42	120337.58	119864.58	112247.61	123412.74	122943.95
	i) Demand	11121.36	12338.69	12172.16	11397.18	12624.74	12456.18
	ii) Time	98153.06	107998.79	107692.41	100850.42	110787.89	110487.76
	b) Borrowings @	3552.41	3669.64	3614.74	3594.79	3711.48	3661.13
	c) Other demand & time liabilities	4792.33	4792.48	4902.52	4875.07	4880.22	4986.9
III	BORROWINGS FROM R.B.I. (B)	526.27	1174.74	1049.95	526.27	1174.74	1049.95
	Against usance bills and / or prom. Notes		0	0		0	0
IV	CASH	628.29	674.73	685.98	644.99	691.19	702.87
V	BALANCES WITH R.B.I. (B)	4523.22	4824.9	5016.46	4644.37	4945.85	5138.21
VI	ASSETS WITH BANKING SYSTEM
	a) Balances with other banks
	i) In current accounts	132.7	132.73	159.23	155.23	152.37	180.85
	ii) In other accounts	1677.89	2080.26	2036.53	1824.48	2266.17	2216.09
	b) Money at call & short notice	301.26	240.45	323.89	468.76	381.15	467.8
	c) Advances to banks (i.e. due from bks.)	269.94	315.98	324.83	273.02	322.5	331.98 £
	d) Other assets	215.25	300.81	345.2	273.3	342.88	386.6
VII	INVESTMENTS (At book value)	33635.86	33861.21	33622.75	34586.38	34791.9	34558.43
	a) Central & State Govt. securities+	33620.92	33828.73	33608.27	34522.76	34704	34489.67
	b) Other approved securities	14.93	32.47	14.47	63.62	87.89	68.75
VIII	BANK CREDIT (Excluding Inter Bank Advance)	81420.06	93374.5	93316.86	83934.86	96139.55	96094.97
	a) Loans, cash credits & Overdrafts $	79315.19	91128.71	91082.11	81770.89	93845.94	93813.37
	b) Inland Bills purchased	182.24	206.53	208.74	203.27	220.02	222.24
	c) Inland Bills discounted	1283.84	1423.62	1420.92	1315.01	1448.89	1445.65
	d) Foreign Bills purchased	248.87	221.64	226.5	251.14	225.16	230.14
	e) Foreign Bills discounted	389.93	393.96	378.64	394.55	399.5	383.61

NOTE
*	Provisional figures incorporated in respect of such banks as have not been able to submit final figures.
(A)	Demand and Time Liabilities do not include borrowings of any Scheduled State Co-operative Bank from State Government and any reserve fund deposits maintained with such banks by any co-operative society within the areas of operation of such banks.
**	This excludes deposits of Co-operative Banks with Scheduled State Co-operative Banks. These are included under item II (a).
@	Other than from Reserve Bank, National Bank for Agriculture and Rural Development and Export Import Bank of India.
(B)	The figures relating to Scheduled Commercial Banks' Borrowings in India from Reserve Bank and balances with Reserve Bank are those shown in the statement of affairs of the Reserve Bank. Borrowings against usance bills and/ or promissory notes are under Section 17(4)(c) of the Reserve Bank of India Act, 1934. Following a change in the accounting practise for LAF transactions with effect from July 11, 2014, as per the recommendations of Malegam Committee formed to review the Format of Balance Sheet and the Profit and Loss Account of the Bank, the transactions in case of Repo/ Term Repo/MSF are reflected under "Borrowings from RBI".
£	This excludes advances granted by Scheduled State Co-operative Banks to Co-operative banks. These are included under item VIII (a).
+	Includes Treasury Bills, Treasury Deposits, Treasury Savings Certificates and postal obligations.
$	Includes advances granted by Scheduled Commercial Banks and State Co-operative Banks to Public Food Procurement Agencies (viz. Food Corporation of India, State Government and their agencies under the Food consortium).

Food Credit Outstanding as on
(₹ in Billions)
Date	19-Jan-18	4-Jan-19	18-Jan-19
Scheduled Commercial Banks	586.06	723.41	709.49
State Co-operative Banks	191.47	230.27	230.27

The expression 'Banking System' or 'Banks' means the banks and any other financial institution referred to in sub-clauses (i) to (vi) of clause (d) of the explanation below Section 42(1) of the Reserve Bank of India Act, 1934.

No. of Scheduled Commercial Banks as on Current Fortnight: January 18, 2019: 148

Ajit Prasad
Assistant Adviser

Press Release : 2018-2019/1799

from PRESS RELEASES FROM RBI http://bit.ly/2sUBx44
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Liquidity Adjustment Facility: Fixed Rate Repo Operations

from PRESS RELEASES FROM RBI http://bit.ly/2MIhwqp
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Sensex zooms 665 points; Nifty ends above 10,800

On the BSE index, Axis Bank, Tata Motors, Infosys, Reliance Industries, Kotak Mahindra Bank and Bajaj Auto tracked major gains with their stocks surging as much as much as 4.64 per cent. On NSE, except for Nifty Media, all other sub-indices finished in green with Nifty Bank leading the pack by rising 1.75 per cent.

from Business News: Latest News on Business, Stock Markets, Financial News, India Business & World Business News http://bit.ly/2CZ7jBu

Maharashtra extends compensation deadline to December 31 for onion farmers

Earlier, the government had announced compensation of Rs 200/quintal per farmer for those farmers who had sold their onion between November 1 to December 15, 2018

from Economy-News-Economic Times http://bit.ly/2TmQ18n
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European stocks extend rally as Fed vows patience

Besides, in Asia, Japanese, and Hong Kong shares led the region with Chinese stocks posting modest gains.

from India Infoline News Service http://bit.ly/2BbhMcU

Jindal Saw gains 6% as Arbitral Tribunal pronounces award in favor of company

The company will get an aggregate amount of various claims under the award, which add up to more than Rs2,000cr plus interest.

from India Infoline News Service http://bit.ly/2TnrmAL

Results of OMO purchase auction held on January 31, 2019 and Settlement on February 1, 2019

I. SUMMARY RESULTS

Aggregate Amount (Face value) notified by RBI	: ₹ 100.00 billion
Total amount offered (Face value) by participants	: ₹ 170.77 billion
Total amount accepted (Face value) by RBI	: ₹ 100.00 billion

II. DETAILS OF EACH ISSUE

Security	8.08% GS 2022	7.59% GS 2026	8.28% GS 2027	7.88% GS 2030	8.28% GS 2032
No. of offers received	51	79	25	44	37
Total amount (face value) offered (in ₹ billion)	23.75	79.24	6.32	19.76	41.70
No. of offers accepted	30	41	12	6	30
Total amount (face value) accepted by RBI (in ₹ billion)	13.01	38.36	3.17	6.37	39.09
Cut off yield (%)	7.1812	7.4577	7.5898	7.6712	7.6744
Cut off price (₹)	102.74	100.70	104.30	101.53	104.93
Weighted average yield (%)	7.2293	7.4735	7.6112	7.6763	7.7059
Weighted average price (₹)	102.59	100.62	104.16	101.49	104.66
Partial allotment % of competitive offers at cut off price	NA	81.37	NA	NA	NA

Ajit Prasad
Assistant Adviser

Press Release : 2018-2019/1803

from PRESS RELEASES FROM RBI http://bit.ly/2Ghz5MK
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Modi plans to raise rural spending in Budget by 16% to woo rural voters

Modi's government is under pressure to step up support for the countryside, where more than two-thirds of India's 1.3 billion people live.

from Economy-News-Economic Times http://bit.ly/2GaLTVn
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Banking

The IL&FS group with a debt of over Rs 94,000 crore, has been defaulting on its financial obligations since August and has also borrowed from insurance companies, even though the exact exposure of the industry is not immediately known.

from Banking/Finance-Industry-Economic Times http://bit.ly/2TvgSz2

Bank Nifty soars over 450 points led by Axis Bank

Heavyweight Axis Bank was the biggest contributor towards the gain in the index and rose for the third consecutive session.

from India Infoline News Service http://bit.ly/2Uvdzbo

Shrimp stocks rally on heavy volume; Apex Frozen Foods jumps 17.5%

Shrimp-exporting companies climbed on Thursday on the back of heavy volumes and ahead of the interim budget on Friday.

from India Infoline News Service http://bit.ly/2DNwZTl

Dabur India climbs 3% post Q3FY19 numbers

The companys revenue in the quarter grew 11.8% yoy to Rs2,199.2cr, in-line with estimates.

from India Infoline News Service http://bit.ly/2G0YJWN

Liquor stocks decline on reports of Kerala hiking alcohol tax

Kerala Finance Minister Thomas Isaac in his fiscal budget for the year 2019-2020 presented on Thursday hiked the tax on alcohol, including beer and wine by 2%.

from India Infoline News Service http://bit.ly/2GeNskX

Dr.Reddy's Lab Q3FY19 Result Expectation

The pharma major is expected to report flat revenue growth in the absence of any big product launch.

from India Infoline News Service http://bit.ly/2G0MREy

45-Days CMB : Full Auction Result

from PRESS RELEASES FROM RBI http://bit.ly/2TnO7V3
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Result of the Overnight Variable Rate Reverse Repo Auction held on January 31, 2019

from PRESS RELEASES FROM RBI http://bit.ly/2FYBi0s
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Directions under Section 35A read with Section 56 of the Banking Regulation Act, 1949 (AACS) –The Kapol Co-operative Bank Ltd., Mumbai, Maharashtra- Extension of period

The Kapol Co-operative Bank Ltd., Mumbai was placed under directions vide directive dated March 30, 2017 from the close of business on March 30, 2017 for a period of six months. The validity of the above directions were extended from time to time upto January 31, 2019 vide directive dated July 23, 2018.

It is hereby notified for the information of the public that, the Reserve Bank of India, in exercise of powers vested in it under sub-section (1) of Section 35A read with Section 56 of the Banking Regulation Act, 1949 (as applicable to Co-operative Societies), hereby directs that the Directive dated March 30, 2017, issued to the above bank, validity of which was extended vide directive dated July 23, 2018, shall continue to apply to the bank for a further period of six months from February 01, 2019 to July 31, 2019, subject to review.

All other terms and conditions of the Directives under reference shall remain unchanged.

A copy of the directive DCBR.CO.AID.No.D-29/12.22.111/2018-19 dated January 24, 2019 notifying the above extension is displayed at the bank’s premises for the perusal of public.

The aforesaid extension and/or modification by the Reserve Bank of India should not per-se be construed to imply that Reserve Bank of India is satisfied of substantive improvement in the financial position of the bank.

Ajit Prasad
Assistant Adviser

Press Release : 2018-2019/1798

from PRESS RELEASES FROM RBI http://bit.ly/2Tqemdy
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Rahul Gandhi attacks Modi government, asks '#HowsTheJobs'

The assessment by the National Sample Survey Office (NSSO) conducted between July 2017-June 2018, showed the unemployment rate stood at 6.1 per cent, the highest since 1972-73, the newspaper reported.

from Business News: Latest News on Business, Stock Markets, Financial News, India Business & World Business News http://bit.ly/2BbblGM

HDFC Bank appoints MD Ranganath as additional independent director

The board of the bank has approved Ranganath appointment for a period of five years effective today, i.e. Thursday, January 31, 2019.

from India Infoline News Service http://bit.ly/2SeyQsq

Hurt & shocked by ICICI action: Chanda Kochhar

Kochhar, who was the face of ICICI Bank for a decade and celebrated as the country’s most powerful woman banker, said that she had served ICICI for 34 years with “all her dedication and hard work”. “I have never shied away from taking tough decisions whenever required to be taken in the best interest of the organisation. This decision from the bank has caused me immense hurt and pain,” she said.

from Business News: Latest News on Business, Stock Markets, Financial News, India Business & World Business News http://bit.ly/2Uq6too

Ajanta Pharma declines 7%, LIC Housing Finance up 2% post Q3FY19 numbers

Ajanta Pharmas revenue in Q3FY19 declined 17.4% yoy, while the housing finance companys standalone net profit came in line with estimates.

from India Infoline News Service http://bit.ly/2RpR31D

BHEL bags two orders worth Rs97cr from NPCIL; stock advances 1%

The order includes the manufacture and supply of heat exchangers that will be manufactured at BHEL's Bhopal plant, the company said in a BSE filing.

from India Infoline News Service http://bit.ly/2WyL7Hg

IndiGo to build MRO at B'luru airport, its 2nd in India

The airline on Thursday said its parent company InterGlobe Aviation and Bangalore International Airport Limited (BIAL), operator of Kempegowda International Airport, have entered into a 20-year agreement to sub-lease land at the airport to build a state-of-the-art MRO facility.

from Business News: Latest News on Business, Stock Markets, Financial News, India Business & World Business News http://bit.ly/2DJoJUf

ICICI Bank, Indiabulls Housing stock decline post Q3FY19 numbers

ICICI Bank and Indiabulls Housing Finance were trading lower on the NSE in Thursday afternoon trade after releasing their respective earnings numbers for the third quarter of FY19.

from India Infoline News Service http://bit.ly/2CV8kKR

Live share market update: Markets surge; Nifty trades near high point of day

IT stocks were propelling the index higher in trade on Thursday.

from India Infoline News Service http://bit.ly/2RXa80m

Sacked with retrospective effect, Chanda Kochhar to lose ESOPs

The move follows a report by former Supreme Court judge, B N Srikrishna, which found Kochhar guilty of violating the bank’s code of conduct in disbursing loans to Videocon group. Kochhar had gone on “leave” on June 18 last year pending completion of the enquiry.

from Business News: Latest News on Business, Stock Markets, Financial News, India Business & World Business News http://bit.ly/2CSJQSC

Sri Lanka halts imports of Johnson & Johnson Baby Powder pending asbestos tests

from Business News: Latest News on Business, Stock Markets, Financial News, India Business & World Business News http://bit.ly/2SiDEwT

India's unemployment rate hit 45-year high in 2017-18: Report

The assessment by the National Sample Survey Office (NSSO) conducted between July 2017-June 2018, showed the unemployment rate stood at 6.1 per cent, the highest since 1972-73, the newspaper reported. The survey has become a political issue after the acting chairman and another member of the body that reviewed the job data resigned saying there was a delay in its release.

from Business News: Latest News on Business, Stock Markets, Financial News, India Business & World Business News http://bit.ly/2MJzHvZ

Sensex jumps over 200 points on firm global cues; Nifty above 10,700

Top gainers in the Sensex pack include ICICI Bank, RIL, Tata Steel, SBI, Tata Motors, NTPC, Vedanta and TCS, rallying up to 2.20 per cent. On the other hand, Bajaj Finance, Yes Bank, Hero MotoCorp, Bajaj Auto, HDFC duo and HCL Tech were the top losers, falling up to 1.59 per cent.

from Business News: Latest News on Business, Stock Markets, Financial News, India Business & World Business News http://bit.ly/2RtfxHw

Zomato in talks to sell UAE biz to German co for $200m

The company is exploring a divestment as it is not keen on ceding a lot more stake to Ant Financial, which already owns 28% of the company. Info Edge, an early backer which owns around 28% of the company, called the battle with Swiggy “a hugely capital-consumptive game” and said it is not likely to participate in a follow-on round.

from Business News: Latest News on Business, Stock Markets, Financial News, India Business & World Business News http://bit.ly/2FZECZ8

TCS campus offers higher by 50% this year

The company made a net addition of 27,049 employees in the last four quarters (calendar year 2018) compared to 7,000 in 2017. It has 4.2 lakh employees now. In the December quarter, TCS doubled its revenue growth to 12% on a constant currency basis, its highest in 14 quarters, with the banking, financial services & insurance

from Business News: Latest News on Business, Stock Markets, Financial News, India Business & World Business News http://bit.ly/2Shi3ox

Torrent sells 6 cardiac, diabetic brands

Torrent has mandated investment bank MAPE to divest overlapping brands — Pregaba, Ranx, Tenepure, Tolol, Zulu and Gemitrol — drawing early interest from Piramal Enterprises and private equity firms like Multiples Alternate Asset Management and ICICI Venture, among others

from Business News: Latest News on Business, Stock Markets, Financial News, India Business & World Business News http://bit.ly/2HHe14X

TOI Gadgets Now awards honour best tech products

The awards, a celebration of the best tech gadgets over the past year, were presented across 12 categories. For each category, there were two sets of awards — jury awards, selected by an eminent panel of experts, and ‘People’s Choice’ awards, selected through online voting that was conducted between January 17-29, 2019

from Business News: Latest News on Business, Stock Markets, Financial News, India Business & World Business News http://bit.ly/2Bd1CQt

Lending has been our star performer: MobiKwik founder

MobiKwik is now a Digital Bank for the millions of underbanked Indians. From accessing one’s bank account (via UPI),making payments, availing instant loans, to wealth management, buying/selling of digital gold and digital insurance— one can do it all on MobiKwik App. The App is targeted towards the 400 million customers who have bank accounts and smartphones but want a 21st century digital experience, not a web 1.0 or branch- led experience.

from Business News: Latest News on Business, Stock Markets, Financial News, India Business & World Business News http://bit.ly/2Wy4al1

Sebi may cut lot size for REITs, InvITs

In a bid to attract more investors in REITs and InvITs, Sebi has proposed to drastically reduce the lot size for trading these instruments to between Rs 15,000 and Rs 20,000 from Rs 2 lakh for REITs and Rs 10 lakh for InvITs.

from Business News: Latest News on Business, Stock Markets, Financial News, India Business & World Business News http://bit.ly/2Bd0Z9z

Coal India may go for 1% buyback

CIL had gone for a major buyback in 2017 when the government garnered about Rs 2,638 crore from it. CIL had bought back 7.8 crore shares from the government out of the total offer of 10.9 crore equity shares for Rs 335 each. Currently, the promoter, the government owns 72.91% of CIL.

from Business News: Latest News on Business, Stock Markets, Financial News, India Business & World Business News http://bit.ly/2RsYpkT

IOC net profit dips 91% to ₹716cr on falling crude

Net profit stood at about Rs 716 crore, or 76 paise per share, in the October-December 2018 period against more than Rs 7,883 crore in the year-ago period, company chairman Sanjiv Singh told reporters. “The variation is mainly on account of inventory losses which were partly made up from forex gains,” he said

from Business News: Latest News on Business, Stock Markets, Financial News, India Business & World Business News http://bit.ly/2HJclaX

Thailand e-visa on arrival to cost Baht 2,600: VFS

from Business News: Latest News on Business, Stock Markets, Financial News, India Business & World Business News http://bit.ly/2SiL7vS

Ajanta Pharma Ltd's Q3FY19 consolidated net profit declines 54.63% yoy to Rs66.90cr: Misses Estimates

The companys consolidated revenue in the quarter stood at Rs485.11cr, down 17.36% yoy and 10.84% qoq.

from India Infoline News Service http://bit.ly/2GcCBIk

Underwriting Auction for sale of Government Securities for ₹ 12,000 crore on February 01, 2019

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Banking

ICICI directors must not get a free pass. Or they’ll just show up at other boards and do the same CEO worship.

from Banking/Finance-Industry-Economic Times http://bit.ly/2TmgumE

Banking

SBI is now having an easier time negotiating with founders keen to avoid the dreaded platform.

from Banking/Finance-Industry-Economic Times http://bit.ly/2RpsNg1

Banking

Designations at ICICI will now be indicative of the function or the job that a person is expected to perform.

from Banking/Finance-Industry-Economic Times http://bit.ly/2HEPI7q

Live share market update: Markets surge higher, Nifty trades near high point of day

IT stocks were propelling the index higher in trade on Thursday.

from India Infoline News Service http://bit.ly/2G3V9eT

Indian Budget a test of commitment to fiscal consolidation: Fitch

Higher pre-election spending could risk a second consecutive year of fiscal slippage relative to the government's targets and would further delay plans to reduce the high general government fiscal deficit and debt burden.

from India Infoline News Service http://bit.ly/2t0Wquh

Rupee appreciates 26 paise to 70.86/$

At 12:30 PM, the Indian rupee was trading at 70.99/$ after ending on a flat note on Wednesday.

from India Infoline News Service http://bit.ly/2HGGYOj

DHFL extends decline on reports of govt probe

In the past four trading days, the stock has tanked 33% on the BSE.

from India Infoline News Service http://bit.ly/2HIepjo

US-China's first day of trade talks take place amid wide differences

Negotiations will resume on Thursday when President Donald Trump is expected to meet Liu.

from India Infoline News Service http://bit.ly/2Gc58hh

Nifty Media drops 2%; Dish TV, Zee Entertainment, Sun TV lead rally

Shares of Zee Entertainment, which declined 5%, led the indexs fall.

from India Infoline News Service http://bit.ly/2sSHdf0

Natco Pharma, Alvogen file ANDA for Ibrutinib tablets for US markets

The company further believes that ANDA may be eligible for 180 days of marketing exclusivity at the time of potential launch of the product under certain circumstances, as per BSE filing.

from India Infoline News Service http://bit.ly/2WoT0z4

Tata Metaliks gets green clearance for Kharagpur facility; stock up 1%

The Forest Ministry also granted increasing the production of ductile iron pipes from 0.3MTPA to 0.5MTPA and castings of 0.1MTPA at the company's existing facility located in West Bengal.

from India Infoline News Service http://bit.ly/2HC7o3E

UPL Q3FY19E result expectation

We expect Q3FY19 results of UPL to be driven by higher volumes especially across Latin American markets and net positive impact from currency fluctuation.

from India Infoline News Service http://bit.ly/2RsK202

Qatar Investment Authority to invest $200mn in Airtel Africa; stock up 1%

The investment from QIA is in continuation of the recent $1.25bn investment by six leading global investors including Warburg Pincus, Temasek, Singtel, SoftBank Group International, and others.

from India Infoline News Service http://bit.ly/2UAL0tl

An unnecessary move: on handing back land to Ram temple trust

Handing back land to the Ram temple trust has no justification at this juncture

from The Hindu - Editorial http://bit.ly/2UqWGyt
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Gold rush: on yellow metal touching ₹33,800 mark in Mumbai

Tightening monetary policies in the West and supply factors led to the spurt in gold prices

from The Hindu - Editorial http://bit.ly/2DLHQx5
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Fitch warns of fiscal slippage if government goes for populist interim budget

Fitch said longer-term trends are more important to the sovereign rating profile.

from Economy-News-Economic Times http://bit.ly/2Rp0yyc
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Govt may spell out rules to tax global digital cos like Google and Facebook

Such a move would also follow the introduction of the basic framework on “significant economic presence” or digital permanent establishment (PE) last year.

from Economy-News-Economic Times http://bit.ly/2SbW16I
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View: India must rethink a full tilt to the US

US is pressurising India and others to not buy arms from Russia or oil from Iran and drop the idea of joining any trade pacts that have China.

from Economy-News-Economic Times http://bit.ly/2CXuwE2
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India's unemployment rate hit a 45-year high in 2017/18

An NSSO survey showed India's jobless rate stood at 6.1 per cent, the highest since 1972-73.

from Economy-News-Economic Times http://bit.ly/2DMpfBb
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View: India needs and can afford minimum income, but will it really reach the poor?

Imagine if India scrapped all handouts for companies and well-off folk. Businesses might feel aggrieved. They shouldn’t: 99.94% get no breaks anyway.

from Economy-News-Economic Times http://bit.ly/2Wyw40e
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India can't afford to guarantee a minimum income

While governments everywhere should take care of their most vulnerable citizens, the idea of guaranteeing a basic income is wrong for India right now.

from Economy-News-Economic Times http://bit.ly/2Bd3WHb
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Minimum income guarantee could cost Rs 7 lakh crore

A minimum guaranteed income to one member each of the country’s 25% poorest households could cost over Rs 7 lakh cr. The calculation was based on a minimum wage payment of Rs 321 a day, translating into Rs 9,630 a month. The cost was expected to be over Rs 5 lakh crore if 18-20% of the households were targeted, as was indicated by P Chidambaram.

from Economy-News-Economic Times http://bit.ly/2DKf8Nb
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Ministry of Women set to get Rs 5,000 cr boost

Sources in the ministry said the budget allocation for the ministry is likely to be Rs 29,000 crore the highest till now.

from Economy-News-Economic Times http://bit.ly/2FZDOn6
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Getting organised: 25% of unorganised workforce may get minimum pension

The labour ministry plan is to give a minimum guaranteed pension to 100 million people earning a monthly salary less than Rs 15,000, a senior government official told ET.

from Economy-News-Economic Times http://bit.ly/2Uuap7A
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Government may not push for changes in board-level panels of RBI

Relations between the regulator and govt had deteriorated before Urjit Patel resigned as RBI governor.

from Economy-News-Economic Times http://bit.ly/2RrLtfk
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Tax sops for middle class, steps on farm crisis likely in interim budget

The nature of tax concessions that may be announced on Friday is not clear but sources indicated some of the sops may be available during the first few months of the 2019-20 fiscal.

from Economy-News-Economic Times http://bit.ly/2DLaNJy
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Now both external, internal trade under Commerce & Industry Ministry

The government Wednesday renamed the Department of Industrial Policy and Promotion (DIPP) as the Department for Promotion of Industry and Internal Trade (DPIIT).

from Economy-News-Economic Times http://bit.ly/2CWGpdx
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NSC members didn’t express concerns on GDP back series, jobs data earlier, says govt

NSC members PV Mohanan & JV Meenakshi quit the apex statistics body citing concerns on its functioning.

from Economy-News-Economic Times http://bit.ly/2UqZD23
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ICICI Board must answer for the scandal around Chanda Kochhar

ICICI directors must not get a free pass. Or they’ll just show up at other boards and do the same CEO worship.

from Banking/Finance-Industry-Economic Times http://bit.ly/2TmgumE
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Madam, don't send us to court, firms tell biggest India bank

SBI is now having an easier time negotiating with founders keen to avoid the dreaded platform.

from Banking/Finance-Industry-Economic Times http://bit.ly/2RpsNg1
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Senior management at ICICI Bank to have no titles

Designations at ICICI will now be indicative of the function or the job that a person is expected to perform.

from Banking/Finance-Industry-Economic Times http://bit.ly/2HEPI7q
via

Srikrishna committee report indicting Kochhar won’t impact CBI probe

Another person said the CBI is scrutinising the evidence collected so far and plans to summon the accused shortly for questioning.

from Banking/Finance-Industry-Economic Times http://bit.ly/2SmWljf
via

ICICI banks seeks to claw back bonuses handed out to Kochhar, will treat her exit as dismissal

Lender says Kochhar flouted guidelines on disclosure of conflict of interest.

from Banking/Finance-Industry-Economic Times http://bit.ly/2BetXpx
via

Here's all that finally did Chanda Kochhar in

The Srikrishna panel has found that Chanda Kochhar indeed violated the banks code of conduct.

from Banking/Finance-Industry-Economic Times http://bit.ly/2FYs58f
via

Chanda Kochhar says hurt and shocked by her termination, penalties

Justice Srikrishna panel indicted Chanda Kochhar and found her in violation of the bank's code of conduct.

from Banking/Finance-Industry-Economic Times http://bit.ly/2MEB4Mz
via

Ministry of Corporate Affairs to probe allegations against Dewan Housing Finance

Reportedly, Dewan diverted funds to shell companies to buy assets, and that firms linked to Dewan's controlling shareholders - the Wadhawan group - made political donations beyond mandated levels.

from Banking/Finance-Industry-Economic Times http://bit.ly/2FX6eOE
via

45-Days CMB Auction Result: Cut off

Date of Auction: January 31, 2019
I.	Total Face Value Notified	₹ 30,000 crore
II.	Cut-off Price and Implicit Yield at Cut-Off Price	₹ 99.20 (YTM: 6.5412%)
III.	Total Face Value Accepted	₹ 30,000 crore

Ajit Prasad
Assistant Adviser

Press Release : 2018-2019/1796

from PRESS RELEASES FROM RBI http://bit.ly/2GcKddR
via

Result of the 7-day Variable Rate Reverse Repo auction held on January 31, 2019

Tenor	7-day
Notified Amount (in ₹ billion)	200.00
Total amount of offers received (in ₹ billion)	141.68
Amount accepted (in ₹ billion)	141.68
Cut off Rate (%)	6.49
Weighted Average Rate (%)	6.48
Partial Acceptance Percentage of offers received at cut off rate	NA

Ajit Prasad
Assistant Adviser

Press Release : 2018-2019/1795

from PRESS RELEASES FROM RBI http://bit.ly/2Sj6RYG
via

Term Repo Auctions under Liquidity Adjustment Facility

As announced in the revised Liquidity Management Framework on August 22, 2014, Reserve Bank will conduct regular variable rate 14-day term repos four times during a reporting fortnight. Accordingly, four term repo auctions will be conducted as per the schedule given hereunder:

Sl.No.	Date of Auction	Notified Amount (₹ Billion)	Tenor (days)	Date of Reversal
1	February 1, 2019 (Friday)	240	14	February 15, 2019 (Friday)
2	February 5, 2019 (Tuesday)	235	13	February 18, 2019 (Monday)
3	February 8, 2019 (Friday)	235	14	February 22, 2019 (Friday)
4	February 12, 2019 (Tuesday)	235	14	February 26, 2019 (Tuesday)

The auctions will be conducted as per the revised guidelines issued on February 13, 2014. Successful bidders will get the allotment at their respective bids. As indicated in the ‘Term Repo under Liquidity Adjustment Facility-Operational Guidelines’ dated October 08, 2013, the RBI reserves the right to inject less than the notified amount without assigning any reasons therefor.

Ajit Prasad
Assistant Adviser

Press Release : 2018-2019/1794

from PRESS RELEASES FROM RBI http://bit.ly/2MGacM4
via

Money Market Operations as on January 30, 2019


(Amount in ₹ billion, Rate in Per cent)

MONEY MARKETS ^@
	Volume (One Leg)	Weighted Average Rate	Range
A. Overnight Segment (I+II+III+IV)	2,071.62	6.35	1.00-6.55
I. Call Money	261.83	6.39	5.00-6.50
II. Triparty Repo	1,408.66	6.34	6.27-6.50
III. Market Repo	396.37	6.35	1.00-6.50
IV. Repo in Corporate Bond	4.75	6.55	6.55-6.55
B. Term Segment
I. Notice Money**	1.83	6.33	5.50-6.55
II. Term Money^@@	0.74	-	6.50-7.00
III. Triparty Repo	0.00	-	-
IV. Market Repo	21.20	6.78	6.00-6.85
V. Repo in Corporate Bond	18.35	7.04	7.00-7.05

RBI OPERATIONS^@
	Auction Date	Tenor (Days)	Maturity Date	Amount Outstanding	Current Rate / Cut off Rate
C. Liquidity Adjustment Facility (LAF)
(i) Repo (Fixed Rate)	Wed, 30/01/2019	1	Thu, 31/01/2019	31.91	6.50
(ii) Repo (Variable rate)
(ii.a) Regular 14-day	Fri, 18/01/2019	14	Fri, 01/02/2019	235.04	6.51
	Tue, 22/01/2019	14	Tue, 05/02/2019	235.03	6.53
	Fri, 25/01/2019	14	Fri, 08/02/2019	194.25	6.51
	Tue, 29/01/2019	14	Tue, 12/02/2019	181.50	6.51
(ii.b) Others	Thu, 13/12/2018	56	Thu, 07/02/2019	250.02	6.56
(iii) Reverse Repo (Fixed rate)	Wed, 30/01/2019	1	Thu, 31/01/2019	146.83	6.25
(iv) Reverse Repo (Variable rate)	Wed, 30/01/2019	1	Thu, 31/01/2019	563.50	6.49
	Wed, 30/01/2019	7	Wed, 06/02/2019	100.07	6.49
D. Marginal Standing Facility (MSF)	Wed, 30/01/2019	1	Thu, 31/01/2019	2.96	6.75
E. Standing Liquidity Facility (SLF) Availed from RBI ^$				17.04
F. Net liquidity injected [injection (+)/absorption (-)] *				337.35
RESERVE POSITION ^@
G. Cash Reserves Position of Scheduled Commercial Banks
(i) Cash balances with RBI as on ^#		30/01/2019		4,937.21
(ii) Average daily cash reserve requirement for the fortnight ending		01/02/2019		4,946.52
H. Government of India Surplus Cash Balance Reckoned for Auction as on ^¥		30/01/2019		0.00
^@ Based on Reserve Bank of India (RBI) / Clearing Corporation of India Limited (CCIL).
- Not Applicable / No Transaction
** Relates to uncollateralized transactions of 2 to 14 days tenor.
^@@ Relates to uncollateralized transactions of 15 days to one year tenor
# The figure for the cash balances with RBI on Sunday is same as that of the previous day (Saturday).
^$ Includes refinance facilities extended by RBI
^¥ As per the Press Release No. 2014-2015/1971 dated March 19, 2015
* Net liquidity is calculated as Repo+MSF+SLF-Reverse Repo
Ajit Prasad Assistant Adviser
Press Release : 2018-2019/1793

from PRESS RELEASES FROM RBI http://bit.ly/2sWxqVd
via

Liquidity Adjustment Facility: Fixed Rate Reverse Repo Operations

The result of the RBI Fixed Rate Reverse Repo Operations held on January 30, 2019 is as under:

Amount (face value in ₹ Billion)
Items		Overnight Reverse Repo Auction 6.25% Fixed Rate
1. Bids received
(i)	Number	67
(ii)	Amount	146.83
2. Bids accepted
(i)	Number	67
(ii)	Amount	146.83

Ajit Prasad
Assistant Adviser

Press Release: 2018-2019/1792

from PRESS RELEASES FROM RBI http://bit.ly/2Gcv2Bw
via

Cartoonscape – January 31, 2019

from The Hindu - Cartoon http://bit.ly/2ME5ONw

Budget 2019: ACMA pitches for uniform 18% GST for all auto components

The apex body of the Indian auto component industry has pitched for increasing the rate of weighted deduction on R&D spend and called for a reduction of import duty on aluminium and steel.

from SME Sector-Small Biz-Economic Times http://bit.ly/2MM0hoo
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Thursday, January 31, 2019