Month: September 2020

Non-food bank credit growth slows to 6% in August: RBI data

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Non-food bank credit growth decelerated to 6 per cent in August as against 9.8 per cent in the same month last year, RBI data showed on Wednesday. Non-food credit stood at Rs 90.46 lakh crore as on August 28, according to the data on sectoral deployment of bank credit released by the Reserve Bank.

“Credit to agriculture and allied activities increased by 4.9 per cent in August 2020 as compared with a growth of 6.8 per cent in August 2019,” it said.

Growth of credit to industry decelerated to 0.5 per cent from 3.9 per cent in August 2019. Within industry, credit to ‘food processing’, ‘petroleum, coal products and nuclear fuels’, ‘leather and leather products’, ‘wood and wood products’ and ‘paper and paper products’ segments registered accelerated growth in August 2020 as compared to the growth in the corresponding month of the previous year. However, credit growth to ‘beverage and tobacco’, ‘construction’, ‘infrastructure’, ‘rubber plastic and their products’, ‘chemical and chemical product’, ‘glass and glassware’ and ‘all engineering’ decelerated / contracted. The RBI further said credit growth to the services sector decelerated to 8.6 per cent in August 2020 from 13.3 per cent in the same month last year.

“Within this (services) sector, credit to ‘computer software’, ‘trade’ and ‘tourism, hotels and restaurants’ registered accelerated growth in August 2020 vis-a-vis the growth in the corresponding month of the previous year,” it said. Personal loans continued to perform well, registering a growth of 10.6 per cent as compared to 15.6 per cent expansion in August 2019. Within this sector, vehicle loans registered an accelerated growth in August 2020 as compared to the same month of the previous year.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Govt emphasis on raising turnover, efficiency of PSUs: Javadekar

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Union Minister Prakash Javadekar on Wednesday said the government’s emphasis is on increasing turnover, efficiency and profitability of public sector undertakings (PSUs). Applauding the critical role played by central public sector enterprises (CPSEs) during the ongoing pandemic, the Minister for Heavy industries and Public Enterprises said, “PSUs are pride of the nation and Modi government is putting emphasis on increasing efficiency, turnover and profitability of these units.” Javadekar was speaking at the launch of a compendium titled ‘Building Self-Reliance, Self-Resurgent and Resilient India’. The compendium is about contribution of PSEs during the pandemic.

As the country unlocks and marches towards ‘AtmaNirbhar Bharat’, the role of public sector enterprises gains even more importance, he said. Javadekar expressed happiness that CPSEs have got back to more than 90 per cent production capacity.

On the work done by PSEs, Javadekar said electricity supply during COVID-19 pandemic was at 99 per cent, and nearly 24,000 LPG distributors, 71,000 retail outlets, and 6,500 SKO dealers were open round the clock to serve people. The minister also praised the CPSEs for maintaining nearly 100 per cent movement and production of goods.

“Around 71 crore LPG cylinders were supplied to the people, oil marketing companies have given 21 crore free refills to consumers for a period of 3 months from April to June with financial assistance of Rs 13,000 crore,” he said. Besides, nearly 33 million goods were transported and the CPSEs gave medical assistance by providing nearly 11,000 beds in 201 hospitals spread across major cities and remote locations of the country.

Javadekar said there are 249 operating CPSEs with a turnover of over Rs 25 lakh crore and annual net profit of approximately Rs 1.75 lakh crore. The PSEs pay around Rs 3.62 lakh crore in the form of dividend, interest, and taxes. Their corporate social responsibility expenditure is about Rs 3,500 crore annually, he said.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Stocks climb on Wall Street on hopes for deal on stimulus

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Stocks are opening higher on Wall Street as traders hope that the White House and Congress can break a logjam on delivering more badly needed stimulus for an economy ravaged by coronavirus lockdowns. The S&P 500 rose 0.5% in the early going Wednesday, but it’s still headed for its first losing month since March.

Treasury Secretary Steven Mnuchin told a CNBC conference he was hopeful about striking a stimulus deal with House Speaker Nancy Pelosi. The gains came after a chaotic and acrimonious first debate between President Donald Trump and Democractic challenger Joe Biden. Treasury yields rose.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Brookfield REIT files papers with Sebi for IPO

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Global investment firm Brookfield Asset Management has filed draft papers with market regulator Sebi for the initial public issue of its real estate investment trust (REIT). This would be the third REIT offering in country after the Embassy Office Parks REIT and the Mindspace REIT.

The initial public offer consists of units of Brookfield India Real Estate Trust (Brookfield REIT) comprising fresh issuance aggregating up to Rs 3,800 crore and an additional component for an offer for sale, according to the draft papers filed with Sebi. Merchant banking sources said REIT is sponsored fully by Brookfield and the company is set to raise up to USD 600 million (around Rs 4,440 crore).

Typically, an asset manager lists assets against which the company keeps getting steady rentals and such a move helps the company get some of the invested capital released. The Brookfield REIT is likely to list by mid-December or early January, the sources said.

At present, the REIT has total assets of 14 million square feet, of which 10 million sq ft is completed. Cities where it has invested are Mumbai, Gurugram, Noida and Kolkata and includes key properties like Kensington SEZ and Hiranandani Gardens, Powai. Proceeds of the fresh issue will be utilised towards partial or full pre-payment or scheduled repayment of the existing indebtedness of asset SPVs (special purpose vehicles) and for general corporate purposes.

Morgan Stanley India Company, DSP Merrill Lynch, Citigroup Global Markets India and HSBC Securities and Capital Markets (India) are the global co-coordinators and book running lead managers to the issue. Ambit Private Ltd, Axis Capital, IIFL Securities, JM Financial, J.P. Morgan India, Kotak Mahindra Capital Company and SBI Capital Markets are the book running lead managers to the issue.

The units are proposed to be listed on BSE and NSE. Brookfield Asset Management is one of the world’s largest alternative asset managers with approximately USD 550 billion in assets under management, as of June 30, 2020.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

RBI fixes Centre’s WMA limit at Rs 1.25 lakh crore for second half

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Reserve Bank of India (RBI) on Wednesday set the ways and means advances (WMAs) limit at Rs 1.25 lakh crore for the central government for the second half of the fiscal year. WMAs are temporary advances given by the RBI to the government to tide over any mismatch in receipts and payments.

“It has been decided, in consultation with the Government of India, that the limits for ways and means advances (WMA) for the second half of the financial year 2020-21 (October 2020 to March 2021) will be Rs 1,25,000 crore,” the RBI said in a statement. The central bank further said it may trigger fresh floatation of market loans when the government utilises 75 per cent of the WMA limit.

“The Reserve Bank retains the flexibility to revise the limit at any time, in consultation with the Government of India, taking into consideration the prevailing circumstances,” it said. The interest rate on WMA is equal to the repo rate and on overdraft, it is two per cent above the repo rate. The current repo rate is 4 per cent.

Meanwhile, the finance ministry said the government will borrow Rs 4.34 lakh crore in the second half of the current fiscal to meet its expenditure requirement amid the COVID-19 crisis afflicting the country’s economy. With this, the government will stick to the revised borrowing target of Rs 12 lakh crore borrowing for the current fiscal. The government revised the borrowing target to Rs 12 lakh crore in May as against Rs 7.8 lakh crore approved in the Budget 2020-21.

In another statement, the RBI said that to help institutional and retail investors plan their investments efficiently, an indicative calendar for issuance of the government dated securities for the second half of the fiscal year 2020-21 has been prepared. It will also provide transparency and stability to the government securities market, the RBI added. “As evident from the calendar, the second half borrowing programme of the Government of India is expected to be completed by January 2021 to help generate sufficient space to manage the borrowing programme of the state governments smoothly,” the RBI said.

All the auctions covered by the calendar will have the facility of non-competitive bidding scheme, under which 5 per cent of the notified amount will be reserved for the specified retail investors.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

DGCA extends suspension of scheduled international passenger flights till Oct 31

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The suspension of scheduled international passenger flights has been extended till October 31, the Indian aviation regulator DGCA said Wednesday. “However, international scheduled flights may be allowed on selected routes by the competent authority on a case-to-case basis,” the Directorate General of Civil Aviation added.

Scheduled international passenger services have been suspended in India since March 23 due to the coronavirus pandemic. But special international flights have been operating under the Vande Bharat Mission since May and under bilateral “air bubble” arrangements with selected countries since July. India has formed air bubble pacts with 15 countries – including the US, the UK, the UAE, Kenya, Bhutan and France. Under an air bubble pact between two countries, special international flights can be operated by their airlines between their territories.

The DGCA circular also said that the suspension does not affect the operation of international all-cargo operations and flights specifically approved by it.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Standout Brokerage Report: CLSA raises target price on Asian Paints to Rs 2,200 from Rs 1,900

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Today’s Standout Brokerage Report is CLSA on Asian Paints. They have raised a target price on Asian Paints to Rs 2,200 from earlier price of Rs 1,900. They have raised the FY21 and FY23 EPS by 5-15 percent.

For more, watch the video.

To watch other videos in this series, click the Standout Brokerage Report tab below.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Here are the key stocks that moved the most on September 30

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Indian benchmark indices Sensex and Nifty ended on a flat note on Wednesday after gains from FMCG, pharma, and IT stocks were capped by metal and PSU bank indices.

At close, the Sensex ended 95 points higher to 38,067 while the Nifty50 index ended at 11,247, up 4 points. Broader indices underperformed the benchmarks as Nifty Smallcap100 and Nifty Midcap100 trading marginally lower.

Among sectoral indices, Nifty FMCG registered the most gains followed by Nifty Pharma and Nifty IT. Meanwhile, Nifty Metal fell 2 percent followed by the Nifty PSU Bank index.

Grasim, Tech Mahindra, Titan, Nestle India, and Dr Reddy’s Laboratories were the Nifty50 top gainers while BPCL, Bharti Airtel, Tata Steel, JSW Steel, and IndusInd Bank were the top losers.

Here are the key stocks that moved the most:

Reliance Industries Ltd: RIL’s shares ended 0.68 percent lower to Rs 2,231 per share on the NSE, after rising a percent higher during the day. India’s largest conglomerate announced that US-based private equity firm General Atlantic Partners will invest Rs 3,675 crore in its retail subsidiary Reliance Retail Ventures.

BPCL: The stock shed 9 percent to settle at Rs 351.75 after the government extended the deadline for selling a stake in the company the fourth time. The previous deadline was on September 30.

VA Tech Wabag: The share price ended over 2 percent higher to Rs 195 after the company allotted 5 million shares worth Rs 80 crore to Rekha Jhunjhunwala, wife of ace investor Rakesh Jhunjhunwala via preferential basis.

GMM Pfaudler: The share price hit 5 percent upper circuit to Rs 3,983.80 after Plutus Wealth Management bought 1,65,000 shares of the glass-lined equipment maker.

Indiabulls Housing Finance: Indiabulls Housing Finance share price ended about 3 percent higher to Rs 156.30 after the company sold the further stake in OakNorth Holding to TEMF Limited for approximately Rs 630 crore, as per the BSE release.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow