General Affairs
PM Modi Inaugurates Passenger Trains For Manipur, Mizoram
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SHILLONG: Prime Minister Narendra Modi today inaugurated passenger trains for Manipur and Mizoram improving railway connectivity in the land-locked North East region.
The trains include Bhairabi-Silchar and Jiribam-Silchar passenger trains which would bring Mizoram and Manipur on the broad gauge passenger railway map of India, while the Kamakhya-Katra Express would link Assam directly with Jammu and Kashmir.
Flagging off the trains during a public reception at the Polo grounds here, the Prime Minister said "We have sanctioned Rs. 10,000 crore for the development of railway network in the North East region."
He said the Railway ministry was planning to spend Rs. 5000 crore during the current year for expanding rail network in the region.
The Prime Minister said the centre has come up with a mission policy to upgrade roads, telecommunication, power and waterways in the region apart from railways.
"This will give a boost to the economic development of the region," he said.
Earlier in the day, railway officials said at the NEC plenary meeting that commissioning of lines in the region has increased from 68 km in 2011-12 to 537 km in 2015-16.
Of the 25 ongoing railway projects with an anticipated cost of Rs. 63,045 crore, Rs. 29,095 crore have been spent since April 1 this year, they said.
Highlighting the targeted commissioning of some of the projects, the officials said the Bhairabi-Sairang (Mizoram) route was to be commissioned by 2018-19, and the Dimapur-Zubza (Nagaland), Sevok-Rangpo (Sikkim) and the Byrnihat-Shillong (Meghalaya) routes were set to be commissioned by 2019-20.
The deadline set for Tetelia-Byrhinat route in Meghalaya was by early next year, as per the 2020 vision document of the Indian Railways.
The trains include Bhairabi-Silchar and Jiribam-Silchar passenger trains which would bring Mizoram and Manipur on the broad gauge passenger railway map of India, while the Kamakhya-Katra Express would link Assam directly with Jammu and Kashmir.
Flagging off the trains during a public reception at the Polo grounds here, the Prime Minister said "We have sanctioned Rs. 10,000 crore for the development of railway network in the North East region."
The Prime Minister said the centre has come up with a mission policy to upgrade roads, telecommunication, power and waterways in the region apart from railways.
"This will give a boost to the economic development of the region," he said.
Earlier in the day, railway officials said at the NEC plenary meeting that commissioning of lines in the region has increased from 68 km in 2011-12 to 537 km in 2015-16.
Of the 25 ongoing railway projects with an anticipated cost of Rs. 63,045 crore, Rs. 29,095 crore have been spent since April 1 this year, they said.
Highlighting the targeted commissioning of some of the projects, the officials said the Bhairabi-Sairang (Mizoram) route was to be commissioned by 2018-19, and the Dimapur-Zubza (Nagaland), Sevok-Rangpo (Sikkim) and the Byrnihat-Shillong (Meghalaya) routes were set to be commissioned by 2019-20.
The deadline set for Tetelia-Byrhinat route in Meghalaya was by early next year, as per the 2020 vision document of the Indian Railways.
Jayalalithaa Seeks PM Modi's Intervention For Release Of Indian Fishermen
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CHENNAI: Tamil Nadu Chief Minister J Jayalalithaa today sought Prime Minister Narendra Modi's intervention in ensuring the release of five "innocent" Indian fishermen arrested by Iran for allegedly straying into its waters.
Jayalalithaa told PM Modi that the five fishermen from Kanyakumari district had been contracted by a Saudi individual and that they were engaged in fishing in Saudi Arabia.
These five had ventured for fishing from Qatif fishing base of Saudi Arabia on April 23, and during the course of their fishing operations "they inadvertently strayed into Iranian waters and were arrested and detained by the Iranian Coast Guard," she told Modi in a letter.
The five Indian fishermen had been lodged in Central jail, Dehloran, Iran, she said.
"I bring this matter to your notice seeking your immediate and personal intervention to instruct the Embassy of India in Tehran and Kingdom of Saudi Arabia to take effective legal steps to secure the immediate release of these poor innocent fishermen from Tamil Nadu," she said.
Jayalalithaa told PM Modi that the five fishermen from Kanyakumari district had been contracted by a Saudi individual and that they were engaged in fishing in Saudi Arabia.
These five had ventured for fishing from Qatif fishing base of Saudi Arabia on April 23, and during the course of their fishing operations "they inadvertently strayed into Iranian waters and were arrested and detained by the Iranian Coast Guard," she told Modi in a letter.
The five Indian fishermen had been lodged in Central jail, Dehloran, Iran, she said.
"I bring this matter to your notice seeking your immediate and personal intervention to instruct the Embassy of India in Tehran and Kingdom of Saudi Arabia to take effective legal steps to secure the immediate release of these poor innocent fishermen from Tamil Nadu," she said.
BrahMos Missile Test-Fired From Rajasthan, Hits Target
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JAIPUR: Indian Air Force today successfully test fired an advanced version of BrahMos land-attack supersonic cruise missile system in the western sector of Rajasthan.
The flight conducted today from one of the firing ranges in the western sector met its mission parameters. The weapon successfully hit and annihilated the designated target, officials said.
"BrahMos has proved its mettle once again as the best supersonic cruise missile system in the world," Sudhir Mishra, CEO and MD of BrahMos Aerospace, said, while congratulating the IAF for the successful mission.
DRDO chief S Christopher congratulated the IAF, BrahMos team and DRDO scientists involved in the mission.
The accuracy in mountain warfare mode was recently re-established in a campaign conducted by the Indian Army in the eastern sector last year and repeated last month, a release from BrahMos aerospace said.
This formidable missile system has empowered all three wings of the armed forces with impeccable anti-ship and land attack capability.
The flight conducted today from one of the firing ranges in the western sector met its mission parameters. The weapon successfully hit and annihilated the designated target, officials said.
"BrahMos has proved its mettle once again as the best supersonic cruise missile system in the world," Sudhir Mishra, CEO and MD of BrahMos Aerospace, said, while congratulating the IAF for the successful mission.
DRDO chief S Christopher congratulated the IAF, BrahMos team and DRDO scientists involved in the mission.
The accuracy in mountain warfare mode was recently re-established in a campaign conducted by the Indian Army in the eastern sector last year and repeated last month, a release from BrahMos aerospace said.
This formidable missile system has empowered all three wings of the armed forces with impeccable anti-ship and land attack capability.
Adventure Tourism Can Emerge As Biggest Employer In North East: PM Modi
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SHILLONG: Prime Minister Narendra Modi today said adventure tourism can emerge as the biggest employer in the north east region and urged the states concerned for its development and promotion.
"If developed and promoted well, this can emerge as the biggest employer in the region. It can also add to the growth and income of the region," PM Modi said while addressing the 65th plenary session of the North Eastern Council (NEC).
He said all states in the north east region were blessed with natural scenic beauty, distinct historical cultural and ethnic heritage.
"All this offers tremendous scope for tourism in the region. There is also a great scope for mountaineering, trekking and adventure tourism in the region," he said.
Underlining the need to make the best use of the Ministry of Tourism's 'thematic circuit', PM Modi said the region can also look for combining a few popular destinations of the neighbouring countries for added attraction for tourists.
Terming the north east as the gateway to South East Asia, the Prime Minister said there was a need to take advantage of this.
"We are opening up both road and rail routes to our neighbouring countries. This should give a boost to the economic development of the region," PM Modi said highlighting the achievements of his government in this regard.
According to the Prime Minister, as of today, 34 road projects in the north eastern states covering 1,001 km at a total cost of over Rs. 10,000 crore have been implemented by the specialised highways construction agency for the north east - the 'National Highways and Infrastructure Development Corporation'.
Highlighting the Internet connectivity project for the north east region in collaboration with Bangladesh, PM Modi said this would make available 10 GB of seamless alternate bandwidth for the region.
On power, the Prime Minister said the Centre has invested in power transmission projects covering all the eight north eastern states at a cost of around Rs. 10,000 crore to ensure electricity to more areas.
On railways, he said major railway expansion projects have been undertaken in the region at a cost of around Rs. 10,000 crore following the connectivity provided to Arunachal Pradesh and Meghalaya in November 2014.
"If developed and promoted well, this can emerge as the biggest employer in the region. It can also add to the growth and income of the region," PM Modi said while addressing the 65th plenary session of the North Eastern Council (NEC).
"All this offers tremendous scope for tourism in the region. There is also a great scope for mountaineering, trekking and adventure tourism in the region," he said.
Underlining the need to make the best use of the Ministry of Tourism's 'thematic circuit', PM Modi said the region can also look for combining a few popular destinations of the neighbouring countries for added attraction for tourists.
Terming the north east as the gateway to South East Asia, the Prime Minister said there was a need to take advantage of this.
"We are opening up both road and rail routes to our neighbouring countries. This should give a boost to the economic development of the region," PM Modi said highlighting the achievements of his government in this regard.
According to the Prime Minister, as of today, 34 road projects in the north eastern states covering 1,001 km at a total cost of over Rs. 10,000 crore have been implemented by the specialised highways construction agency for the north east - the 'National Highways and Infrastructure Development Corporation'.
Highlighting the Internet connectivity project for the north east region in collaboration with Bangladesh, PM Modi said this would make available 10 GB of seamless alternate bandwidth for the region.
On power, the Prime Minister said the Centre has invested in power transmission projects covering all the eight north eastern states at a cost of around Rs. 10,000 crore to ensure electricity to more areas.
On railways, he said major railway expansion projects have been undertaken in the region at a cost of around Rs. 10,000 crore following the connectivity provided to Arunachal Pradesh and Meghalaya in November 2014.
Ready For 'Loose Cannon' Donald Trump's Fantasy Campaign: Hillary Clinton
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WASHINGTON: Describing Donald Trump as "an unqualified loose cannon", Democratic presidential front- runner Hillary Clinton has warned that every American should be concerned that the most important job in the world was within the reach of her Republican rival who has "rattled" world leaders with his divisive rhetoric.
"I know that Donald Trump says outrageous things all the time, but today he officially clinched the Republican nomination. So this is now as real as it gets," Clinton said as the billionaire emerged the Republican party's presidential candidate by securing the backing of 1,239 delegates, two more than is required to win the nomination.
"And this man, who is an unqualified loose canon, is within reach of the most important job in the world. So it should concern every American," she said.
"President (Barack) Obama came out of meetings with our closest allies in the world, and reporting that they are, quote, 'rattled by the threat Donald Trump represent'. Of course they're rattled. He's talking about breaking up our alliances, letting more countries get nuclear weapons, banning all Muslims from coming to America. That is a recipe for fewer friends and more enemies and it will make us less safe," Clinton said.
"The entire world looks to the president of the US for leadership and stability, and that is the kind of leadership I would provide if elected," Clinton said.
In another interview, she said, "I'm ready for his fantasy campaign and the outrageous things he's going to say." "I just really regret that the kinds of things he is saying about letting other countries get nuclear weapons and bringing back torture, and just the outrageous comments that are literally being heard around the world," she told CNN.
"That's not who we are as Americans. That's not the kind of strong, smart, steady leadership that we need and deserve," Clinton said.
Speaking about a State Department Inspector General's report that she violated the laws by using private email hosted in her personal server when she was the Secretary of State, 68-year-old Clinton acknowledged her mistake.
"As I've said many times, it was still a mistake. If I could go back, I'd do it differently. And I understand people have concerns about this, but I hope voters look at the full picture of everything that I've done and the full threat posed by a Donald trump presidency," she said.
"And if they do, I have faith in the American people that they'll make the right choice," she said.
Trump, 69, has slammed Clinton on the email report.
"Look, she has bad judgment. This was all bad judgment.
Probably illegal. We'll have to find out what the FBI says about, but certainly it was bad judgment," he told reporters.
"I just read the report. It's devastating, the report.
It's devastating. And there's no reason for it. It's just skirting on the edge all the time, and you look back at her history and this is her history. It's a very, very harsh report," he said in Bismarck, North Dakota.
"I know that Donald Trump says outrageous things all the time, but today he officially clinched the Republican nomination. So this is now as real as it gets," Clinton said as the billionaire emerged the Republican party's presidential candidate by securing the backing of 1,239 delegates, two more than is required to win the nomination.
"And this man, who is an unqualified loose canon, is within reach of the most important job in the world. So it should concern every American," she said.
"President (Barack) Obama came out of meetings with our closest allies in the world, and reporting that they are, quote, 'rattled by the threat Donald Trump represent'. Of course they're rattled. He's talking about breaking up our alliances, letting more countries get nuclear weapons, banning all Muslims from coming to America. That is a recipe for fewer friends and more enemies and it will make us less safe," Clinton said.
"The entire world looks to the president of the US for leadership and stability, and that is the kind of leadership I would provide if elected," Clinton said.
In another interview, she said, "I'm ready for his fantasy campaign and the outrageous things he's going to say." "I just really regret that the kinds of things he is saying about letting other countries get nuclear weapons and bringing back torture, and just the outrageous comments that are literally being heard around the world," she told CNN.
"That's not who we are as Americans. That's not the kind of strong, smart, steady leadership that we need and deserve," Clinton said.
Speaking about a State Department Inspector General's report that she violated the laws by using private email hosted in her personal server when she was the Secretary of State, 68-year-old Clinton acknowledged her mistake.
"As I've said many times, it was still a mistake. If I could go back, I'd do it differently. And I understand people have concerns about this, but I hope voters look at the full picture of everything that I've done and the full threat posed by a Donald trump presidency," she said.
"And if they do, I have faith in the American people that they'll make the right choice," she said.
Trump, 69, has slammed Clinton on the email report.
"Look, she has bad judgment. This was all bad judgment.
Probably illegal. We'll have to find out what the FBI says about, but certainly it was bad judgment," he told reporters.
"I just read the report. It's devastating, the report.
It's devastating. And there's no reason for it. It's just skirting on the edge all the time, and you look back at her history and this is her history. It's a very, very harsh report," he said in Bismarck, North Dakota.
Business Affairs
Sensex clocks best weekly gain since March; Nifty ends above 8,150 level; SBI top gainer
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Extending its gains for the fourth straight session on Friday, the S&P BSE Sensex settled the day 287 points higher, while the broader Nifty50 ended above its key 8150-mark.
The headline indices logged their best weekly jump in nearly three months, after companies such as Bharat Petroleum Corp posted upbeat earnings.
The 30-share index ended the day at 26,653, up 286.92 points, while broad-based 50-share index quoted 8,156, up 87.00 points at close.
Improving earnings have raised optimism for a broader-based economic recovery, especially at a time when investors are betting monsoon rains will be stronger than average this year.
Mirroring the optimism, foreign investors have bought Indian shares worth a net $119.73 million so far this month, taking this year's inflows to $1.92 billion.
"Earnings have improved overall and this quarter's results have surprised markets positively," said Vaibhav Agrawal, vice-president & head of research at Angel Broking.
"India's macros and consumer-driven sectors are doing quite well and there is a clear-cut optimism that growth will pick up."
SBI stock was the top gainer on both the benchmark indices and added over 9 per cent on the BSE and NSE even as nation's top lender by assets reported a worse-than-expected 66 per cent fall in quarterly profit, due to sharply higher provisions for bad loans.
Shares of Bharat Petroleum Corp jumped 8.48 per cent to a record high after the company reported upbeat March-quarter results.
Jet Airways pared all its gains to close 0.92 per cent lower after the country's second-biggest airline by passengers reported an annual profit for the first time since 2007 and a year ahead of schedule under its 2014 turnaround plan.
Sun Pharmaceutical Industries gained 5.83 per cent after US subsidiary Taro Pharmaceutical Industries posted strong full-year results.
Extending its gains for the fourth straight session on Friday, the S&P BSE Sensex settled the day 287 points higher, while the broader Nifty50 ended above its key 8150-mark.
The headline indices logged their best weekly jump in nearly three months, after companies such as Bharat Petroleum Corp posted upbeat earnings.
The 30-share index ended the day at 26,653, up 286.92 points, while broad-based 50-share index quoted 8,156, up 87.00 points at close.
Improving earnings have raised optimism for a broader-based economic recovery, especially at a time when investors are betting monsoon rains will be stronger than average this year.
Mirroring the optimism, foreign investors have bought Indian shares worth a net $119.73 million so far this month, taking this year's inflows to $1.92 billion.
"Earnings have improved overall and this quarter's results have surprised markets positively," said Vaibhav Agrawal, vice-president & head of research at Angel Broking.
"India's macros and consumer-driven sectors are doing quite well and there is a clear-cut optimism that growth will pick up."
SBI stock was the top gainer on both the benchmark indices and added over 9 per cent on the BSE and NSE even as nation's top lender by assets reported a worse-than-expected 66 per cent fall in quarterly profit, due to sharply higher provisions for bad loans.
Shares of Bharat Petroleum Corp jumped 8.48 per cent to a record high after the company reported upbeat March-quarter results.
Jet Airways pared all its gains to close 0.92 per cent lower after the country's second-biggest airline by passengers reported an annual profit for the first time since 2007 and a year ahead of schedule under its 2014 turnaround plan.
Sun Pharmaceutical Industries gained 5.83 per cent after US subsidiary Taro Pharmaceutical Industries posted strong full-year results.
State Bank of India net profit falls 66% on bad loan provisions, 260% dividend declared
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State Bank of India has reported Rs 1,263 crore net profit in Q4 against Rs 1,115 crore profit October-December quarter of the preceding fiscal. On a q-o-q (quarter on quarter) basis, the bank reported a 13.27 per cent rise in net profit.
However, the bank reported a 66 per cent y-o-y (year-on-year) fall in profit as it posted Rs 3,742 crore in net profit in Q4 of previous fiscal.
The bank reported Rs 13,174 crore in provisions in the fourth quarter against Rs 7,949 crore provisions in the preceding quarter. The bank had Rs 6,943 crore in provisions in Q4 of previous fiscal.
The state lender had 6.5 per cent in gross NPAs against 5.10 per cent in the preceding quarter.
The bank said it has carried out its asset quality review (AQR) and the Q4 earnings reflect the same.
It has declared a dividend of Rs 2.60 per share (260%) for the financial year ended March 31, 2016. The date of payment of the dividend is fixed on June 22, 2016 and the dividend warrants will be dispatched before the date of payment, which will be payable, in India, at par at all branches of State Bank of India, irrespective of the amount.
The SBI stock rose 10 per cent intraday. Later it settled the day 6.42 per cent higher at Rs 195.55 on the BSE.
State Bank of India has reported Rs 1,263 crore net profit in Q4 against Rs 1,115 crore profit October-December quarter of the preceding fiscal. On a q-o-q (quarter on quarter) basis, the bank reported a 13.27 per cent rise in net profit.
However, the bank reported a 66 per cent y-o-y (year-on-year) fall in profit as it posted Rs 3,742 crore in net profit in Q4 of previous fiscal.
The bank reported Rs 13,174 crore in provisions in the fourth quarter against Rs 7,949 crore provisions in the preceding quarter. The bank had Rs 6,943 crore in provisions in Q4 of previous fiscal.
The state lender had 6.5 per cent in gross NPAs against 5.10 per cent in the preceding quarter.
The bank said it has carried out its asset quality review (AQR) and the Q4 earnings reflect the same.
It has declared a dividend of Rs 2.60 per share (260%) for the financial year ended March 31, 2016. The date of payment of the dividend is fixed on June 22, 2016 and the dividend warrants will be dispatched before the date of payment, which will be payable, in India, at par at all branches of State Bank of India, irrespective of the amount.
The SBI stock rose 10 per cent intraday. Later it settled the day 6.42 per cent higher at Rs 195.55 on the BSE.
FDI up 16.5 per cent to $2.46 billion in March
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Foreign direct investment (FDI) into India increased by 16.5 per cent to $2.46 billion in March this year.
The FDI inflows were at $2.11 billion in the same month of last year, according to the data of the Department of Industrial Policy and Promotion (DIPP).
For the entire 2015-16 fiscal ended March 31, the inflows grew by 29 per cent to $40 billion as against $30.93 billion in 2014-15.
FDI for 2015-16 was the highest since 2000-01. The services segment attracted the highest investments of $6.88 billion followed by computer hardware and software ($5.90 billion), trading business ($3.84 billion) and automobile industry ($2.52 billion).
Singapore toppled Mauritius as the top FDI source for FDI in India last fiscal.
India received $13.69 billion overseas inflows from Singapore, followed by Mauritius ($8.35 billion), the US ($4.19 billion), the Netherlands ($2.64 billion) and Japan ($2.61 billion).
The government has taken several steps to promote investments through a liberal FDI policy.
It is expected to soon take a decision on permitting 100 per cent FDI in the food processing sector through the FIPB approval route.
Foreign investment is considered crucial for India, which needs around $1 trillion for overhauling its infrastructure sector such as ports, airports and highways to boost growth.
A strong inflow of foreign investments will help improve the country's balance of payments situation and strengthen the rupee value against other global currencies, especially the US dollar.
Foreign direct investment (FDI) into India increased by 16.5 per cent to $2.46 billion in March this year.
The FDI inflows were at $2.11 billion in the same month of last year, according to the data of the Department of Industrial Policy and Promotion (DIPP).
For the entire 2015-16 fiscal ended March 31, the inflows grew by 29 per cent to $40 billion as against $30.93 billion in 2014-15.
FDI for 2015-16 was the highest since 2000-01. The services segment attracted the highest investments of $6.88 billion followed by computer hardware and software ($5.90 billion), trading business ($3.84 billion) and automobile industry ($2.52 billion).
Singapore toppled Mauritius as the top FDI source for FDI in India last fiscal.
India received $13.69 billion overseas inflows from Singapore, followed by Mauritius ($8.35 billion), the US ($4.19 billion), the Netherlands ($2.64 billion) and Japan ($2.61 billion).
The government has taken several steps to promote investments through a liberal FDI policy.
It is expected to soon take a decision on permitting 100 per cent FDI in the food processing sector through the FIPB approval route.
Foreign investment is considered crucial for India, which needs around $1 trillion for overhauling its infrastructure sector such as ports, airports and highways to boost growth.
A strong inflow of foreign investments will help improve the country's balance of payments situation and strengthen the rupee value against other global currencies, especially the US dollar.
India to have 8-10 competitive public sector banks: Sinha
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India will have 8-10 very competitive public sector banks once the "dust settles" and the consolidation phase ends, Union Minister Jayant Sinha said on Friday.
Currently, there are 27 state-owned banks in the country. "We are doing all the things necessary to really ensure that these banks are vibrant, are competitive and a huge sort of reform agenda we have underway for the banks right now... and of course we are now in the third phase of that," the Union Minister of State for Finance said.
"We have gone through governance and management reforms, we have gone through the asset quality review...and now we are in the consolidation phase where we are really trying to ensure that at the end of this consolidation phase, we have a set of competitive banks," Sinha said, speaking at an event organised by Indian Software Product Industry Round Table (iSPIRT) here.
"We have 27 public sector banks right now. When the dust settles, I think we will have may be eight or ten very competitive banks. Some of them are going to be large scale global players, some of them are going to be differentiated banks," he said.
What the country needs at the end of the day is to ensure financial inclusion does not suffer and at the same time we have competitive institutions, he said.
He added that if we let our public sector institutions like banks, Air India, BSNL/MTNL languish so that they are not competitive, it is akin to a "de facto privatisation".
"In this de facto privatisation, rather than the value of those enterprises built up over decades with public money going to the public, it goes to the disruptive entrepreneurs or whoever it is who are able to take share away from these public sector enterprises...," he said.
"There will be de facto privatisation of wealth. We may have some billionaires because of this, but ultimately it is people who will be suffering," he said.
Recalling Prime Minister Narendra Modi's message about the role of government as a trustee of people's wealth, Sinha said, "As the trustee of people, we can't let all the value in the public sector go into the private sector because that contributes to inequality and uneven distribution of wealth."
iSPIRT had organised a discussion with Sinha as part of its programme to launch a "policy hack" that aims to demystify policy announcements and regulatory framework for startups and entrepreneurs.
Responding to a question, Sinha said the problem with public sector banks in India was that they have "massive" fixed costs and 75 per cent of it is labour.
The market share of public sector banks is dropping quite "dramatically" and the process of people shifting from public to private sector is going on, forcing public sector to respond, he said.
In response to another question regarding overall financial well-being of citizens, Sinha said, "We are trying to operate in two tracks. Securing the population at basic level and providing ample room for innovation, new products."
On online-only digital banks, he said, "You will see more of that."
Speaking on the entrepreneurial ecosystem, Sinha said we have to create not just a globally competitive economy, but also an innovation-driven system.
"....just like the US is the entrepreneurial engine for top one billion people on the planet, India must be the entrepreneurial engine for the next six billion people... we do not have a choice in this matter. We have to do it not just for India, but world at large," he said.
Stating that 95 per cent of venture capital in India comes from overseas, Sinha said to be an innovation-driven economy, we have to build up our own domestic venture capital industry and institutions.
India will have 8-10 very competitive public sector banks once the "dust settles" and the consolidation phase ends, Union Minister Jayant Sinha said on Friday.
Currently, there are 27 state-owned banks in the country. "We are doing all the things necessary to really ensure that these banks are vibrant, are competitive and a huge sort of reform agenda we have underway for the banks right now... and of course we are now in the third phase of that," the Union Minister of State for Finance said.
"We have gone through governance and management reforms, we have gone through the asset quality review...and now we are in the consolidation phase where we are really trying to ensure that at the end of this consolidation phase, we have a set of competitive banks," Sinha said, speaking at an event organised by Indian Software Product Industry Round Table (iSPIRT) here.
"We have 27 public sector banks right now. When the dust settles, I think we will have may be eight or ten very competitive banks. Some of them are going to be large scale global players, some of them are going to be differentiated banks," he said.
What the country needs at the end of the day is to ensure financial inclusion does not suffer and at the same time we have competitive institutions, he said.
He added that if we let our public sector institutions like banks, Air India, BSNL/MTNL languish so that they are not competitive, it is akin to a "de facto privatisation".
"In this de facto privatisation, rather than the value of those enterprises built up over decades with public money going to the public, it goes to the disruptive entrepreneurs or whoever it is who are able to take share away from these public sector enterprises...," he said.
"There will be de facto privatisation of wealth. We may have some billionaires because of this, but ultimately it is people who will be suffering," he said.
Recalling Prime Minister Narendra Modi's message about the role of government as a trustee of people's wealth, Sinha said, "As the trustee of people, we can't let all the value in the public sector go into the private sector because that contributes to inequality and uneven distribution of wealth."
iSPIRT had organised a discussion with Sinha as part of its programme to launch a "policy hack" that aims to demystify policy announcements and regulatory framework for startups and entrepreneurs.
Responding to a question, Sinha said the problem with public sector banks in India was that they have "massive" fixed costs and 75 per cent of it is labour.
The market share of public sector banks is dropping quite "dramatically" and the process of people shifting from public to private sector is going on, forcing public sector to respond, he said.
In response to another question regarding overall financial well-being of citizens, Sinha said, "We are trying to operate in two tracks. Securing the population at basic level and providing ample room for innovation, new products."
On online-only digital banks, he said, "You will see more of that."
Speaking on the entrepreneurial ecosystem, Sinha said we have to create not just a globally competitive economy, but also an innovation-driven system.
"....just like the US is the entrepreneurial engine for top one billion people on the planet, India must be the entrepreneurial engine for the next six billion people... we do not have a choice in this matter. We have to do it not just for India, but world at large," he said.
Stating that 95 per cent of venture capital in India comes from overseas, Sinha said to be an innovation-driven economy, we have to build up our own domestic venture capital industry and institutions.
SoftBank's Nikesh Arora was paid Rs 488 crore for last fiscal
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Nikesh Arora, the India-born President of Japanese telecom and internet major SoftBank was paid a salary of $73 million (Rs 488 crore) in 2015-2016, according to a Bloomberg report.
According to the report, Arora's pay package was close to that of Tim Cook, CEO of Apple Inc and Walt Disney Co.'s Bob Iger. However, SoftBank's founder and CEO Masayoshi Son received a salary of 130 million yen ($1.2 million).
Nikesh Arora left Google Inc. in 2014 to join SoftBank as senior vice president. Arora was paid $135 million which included a joining bonus in the previous fiscal year, setting a record for compensation paid to executives in Japan.
Nikesh Arora, the India-born President of Japanese telecom and internet major SoftBank was paid a salary of $73 million (Rs 488 crore) in 2015-2016, according to a Bloomberg report.
According to the report, Arora's pay package was close to that of Tim Cook, CEO of Apple Inc and Walt Disney Co.'s Bob Iger. However, SoftBank's founder and CEO Masayoshi Son received a salary of 130 million yen ($1.2 million).
Nikesh Arora left Google Inc. in 2014 to join SoftBank as senior vice president. Arora was paid $135 million which included a joining bonus in the previous fiscal year, setting a record for compensation paid to executives in Japan.
General Awareness
India becomes 5th largest producer of e-waste in world: ASSOCHAM-KPMG study
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India has become the Fifth largest producer of e-waste in the world, wastages roughly 18.5 Lakh metric tonnes of electronic waste and telecom equipment accounting for 12%.
Study taken by: ASSOCHAM and KPMG
Sources:
- India emerged as the Second largest mobile market with 1.03 billion subscribers
- About 100 crore mobile phones in circulation, nearly 25 per cent end up in e-waste annually
Suggestions:
- E-waste collection are implemented in a phased manner
- To reduce the various audits being conducted by various authorities
Guidelines issued by Department of Telecommunication:
With respect to locations of tower and clearance is required across states to smoothen tower set up process
Mr P.Balaji, Chairman, ASSOCHAM National council on Telecommunications & Director-Regulatory, External Affairs & CSR, Vodafone India released the study and stated that
- Telecommunication Industry is engaged to promote the Union Government Vision of Digital India programme
- In the last 15 months operators have invested over 30% of the cumulative investment made in 20 years before
- About 100 million handsets have been manufactured in 2015
About KPMG & ASSOCHAM:
KPMG
Professional Service Company
♦ Services: audit, tax, and advisory
♦ Headquarters: Helsinki, Finland
♦ Established: 1987
♦ Founders: Klynveld Main Goerdeler, Marwick Mitchell & Co., Klynveld Kraayenhof & Co., William Barclay Peat & Co.
ASSOCHAM
Apex trade associations of India
♦ Founded: 1920
♦ Headquarters: New Delhi, India
♦ President: Sunil Kanoria
- India has become the Fifth largest producer of e-waste in the world, wastages roughly 18.5 Lakh metric tonnes of electronic waste and telecom equipment accounting for 12%.
- Study taken by: ASSOCHAM and KPMGSources:
- India emerged as the Second largest mobile market with 1.03 billion subscribers
- About 100 crore mobile phones in circulation, nearly 25 per cent end up in e-waste annually
Suggestions:- E-waste collection are implemented in a phased manner
- To reduce the various audits being conducted by various authorities
Guidelines issued by Department of Telecommunication:With respect to locations of tower and clearance is required across states to smoothen tower set up processMr P.Balaji, Chairman, ASSOCHAM National council on Telecommunications & Director-Regulatory, External Affairs & CSR, Vodafone India released the study and stated that- Telecommunication Industry is engaged to promote the Union Government Vision of Digital India programme
- In the last 15 months operators have invested over 30% of the cumulative investment made in 20 years before
- About 100 million handsets have been manufactured in 2015
About KPMG & ASSOCHAM:KPMG
Professional Service Company
♦ Services: audit, tax, and advisory
♦ Headquarters: Helsinki, Finland
♦ Established: 1987
♦ Founders: Klynveld Main Goerdeler, Marwick Mitchell & Co., Klynveld Kraayenhof & Co., William Barclay Peat & Co.ASSOCHAM
Apex trade associations of India
♦ Founded: 1920
♦ Headquarters: New Delhi, India
♦ President: Sunil Kanoria
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