General Affairs
Government Looks To Rein In Prices Of Pulses Through Imports, Buffer Stock
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NEW DELHI: Alarmed by the rising prices of essentialslike pulses and tomatoes, the government today decided to boost supply through its newly-created buffer stock and imports.
Finance Minister Arun Jaitley today held a high level meeting with the agriculture, food, urban development and commerce ministers. Secretaries of these ministries, along with finance ministry, were present at the meet.
Also present, Nripendra Mishra, the Principal Secretary to Prime Minister Narendra Modi. The Prime Minister's Office's participation in the meet indicates the sense of worry in the government due to the sharp rise in prices which seem set to go further up as there are no quick fix remedies available.
During the meet, the biggest concern was over pulses. The production of pulses, due to the last two deficient monsoons, has not been enough to dent the supply side shortages. India consumes 22 million tonnes of pulses each year while the production is around 17 million tonnes.
During the meet it was decided that the procurement of pulses from local producers (farmers) will continue to ensure a healthy buffer stock. The government maintains a 1 million tonnes buffer stock of pulses at all times via local procurement and imports.
The government has procured in total 1,15,000 million tonnes pulses this year. A senior minister after the meeting said, "The idea is to keep procuring and importing to maintain a one million tonnes buffer stock. 10000 million tonnes is likely to be released soon to ease the situation."
Commerce Minister Nirmala Sitharaman's visit to Myanmar recently has paid dividends on the pulses front. A government-to-government agreement has been signed for import of pulses from the neighbouring country.
On the tomato front, whose prices have hit Rs. 100 in Hyderabad, the government plans to improve the supply chain. A government official said, "There are too many variations in prices of tomato as one moves between the place of production to the point of consumption. The government plans to improve the supply side constraints."
Union Food Minister Ram Vilas Paswan informed the participants in the meeting that the price rise in tomato was a "seasonal" factor and the commodity cannot be stored due to short shelf-life unlike wheat and rice.
To ease the pulses situation, importers have been given relief from the stock holding limits. The government has fixed limit to curb hoarding by profiteers. But the importers protested as stock limits flies against the idea of getting more pulses. That's why the government will keep an eye on importers and ask them to release pulses speedily instead of making themstore less.
Finance Minister Arun Jaitley today held a high level meeting with the agriculture, food, urban development and commerce ministers. Secretaries of these ministries, along with finance ministry, were present at the meet.
During the meet, the biggest concern was over pulses. The production of pulses, due to the last two deficient monsoons, has not been enough to dent the supply side shortages. India consumes 22 million tonnes of pulses each year while the production is around 17 million tonnes.
During the meet it was decided that the procurement of pulses from local producers (farmers) will continue to ensure a healthy buffer stock. The government maintains a 1 million tonnes buffer stock of pulses at all times via local procurement and imports.
The government has procured in total 1,15,000 million tonnes pulses this year. A senior minister after the meeting said, "The idea is to keep procuring and importing to maintain a one million tonnes buffer stock. 10000 million tonnes is likely to be released soon to ease the situation."
Commerce Minister Nirmala Sitharaman's visit to Myanmar recently has paid dividends on the pulses front. A government-to-government agreement has been signed for import of pulses from the neighbouring country.
On the tomato front, whose prices have hit Rs. 100 in Hyderabad, the government plans to improve the supply chain. A government official said, "There are too many variations in prices of tomato as one moves between the place of production to the point of consumption. The government plans to improve the supply side constraints."
Union Food Minister Ram Vilas Paswan informed the participants in the meeting that the price rise in tomato was a "seasonal" factor and the commodity cannot be stored due to short shelf-life unlike wheat and rice.
To ease the pulses situation, importers have been given relief from the stock holding limits. The government has fixed limit to curb hoarding by profiteers. But the importers protested as stock limits flies against the idea of getting more pulses. That's why the government will keep an eye on importers and ask them to release pulses speedily instead of making themstore less.
We Will Win Majority Of 21 Seats If Bypolls Held In Delhi: Ajay Maken
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NEW DELHI: Delhi Congress chief Ajay Maken today asserted that his party will win the majority of the 21 seats if by-elections are held after the disqualification of AAP legislators who have been appointed as Chief Parliamentary Secretaries.
"Most of these assembly seats belong to Congress stalwarts like Mahabal Mishra, Arvinder Singh Lovely and AK Walia. We are confident that we will win majority of these 21 seats if by-elections are held," said Mr Maken, while addressing a press conference at the party headquarters in New Delhi.
He added that Congress may emerge as the largest party in these elections and the post of Leader of Opposition in the Delhi Legislative Assembly may fall into their kitty.
Mr Maken also accused the Aam Aadmi Party (AAP) of misleading the people on the Chief Parliamentary Secretary (CPS) issue.
"A Chief Parliamentary Secretary at least gets an office space, a car and driver if not any remuneration. Then how this is not an office of profit," asked Mr Maken who was a CPS to Sheila Dikshit in her first tenure as chief minister of Delhi.
"When Sheila Dikshit had brought a bill for my appointment, it was introduced in Assembly as a money bill. Again in 2007, when an amendment was brought in, it remained a money bill," Mr Maken said when he was asked to describe the legislative aspect of the bill.
He asserted that if AAP had brought this bill through a proper channel, the President would have given his assent to it.
The President's refusal to sign this bill may lead to the disqualification of 21 AAP legislators.
"AAP had appointed these CPS on March 13, almost 30 days after Arvind Kejriwal was sworn in as Chief Minister. And during the same period Yogendra Yadav and Prashant Bhushan were thrown out of the party," Mr Maken said insisting that AAP distributed these posts to keep these people with them.
"Otherwise, they would have gone with Yogendra Yadav and Prashant Bhushan," he added.
Mr Maken had led a delegation of Congress leaders to the Election Commission asking for disqualification of these 21 AAP legislators.
"Most of these assembly seats belong to Congress stalwarts like Mahabal Mishra, Arvinder Singh Lovely and AK Walia. We are confident that we will win majority of these 21 seats if by-elections are held," said Mr Maken, while addressing a press conference at the party headquarters in New Delhi.
He added that Congress may emerge as the largest party in these elections and the post of Leader of Opposition in the Delhi Legislative Assembly may fall into their kitty.
Mr Maken also accused the Aam Aadmi Party (AAP) of misleading the people on the Chief Parliamentary Secretary (CPS) issue.
"A Chief Parliamentary Secretary at least gets an office space, a car and driver if not any remuneration. Then how this is not an office of profit," asked Mr Maken who was a CPS to Sheila Dikshit in her first tenure as chief minister of Delhi.
"When Sheila Dikshit had brought a bill for my appointment, it was introduced in Assembly as a money bill. Again in 2007, when an amendment was brought in, it remained a money bill," Mr Maken said when he was asked to describe the legislative aspect of the bill.
He asserted that if AAP had brought this bill through a proper channel, the President would have given his assent to it.
The President's refusal to sign this bill may lead to the disqualification of 21 AAP legislators.
"AAP had appointed these CPS on March 13, almost 30 days after Arvind Kejriwal was sworn in as Chief Minister. And during the same period Yogendra Yadav and Prashant Bhushan were thrown out of the party," Mr Maken said insisting that AAP distributed these posts to keep these people with them.
"Otherwise, they would have gone with Yogendra Yadav and Prashant Bhushan," he added.
Mr Maken had led a delegation of Congress leaders to the Election Commission asking for disqualification of these 21 AAP legislators.
Production Warrant Issued Against Chhagan And Sameer Bhujbal
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MUMBAI: Four months after the ACB filed a chargesheet in the Maharashtra Sadan scam, a special court today issued production warrant against senior NCP leader Chhagan Bhujbal and his nephew Sameer.
"The court issued production warrant against Bhujbal and his nephew Sameer in the Maharashtra Sadan case," special public prosecutor Pradeep Gharat said.
The production warrant is issued against them as they are presently in the judicial custody in a money laundering case registered against them.
"The jail authorities have to produce the duo on June 22," said Mr Gharat.
Meanwhile, Mr Gharat also sought issuance of non-bailable warrant against Chhagan Bhujbal's son Pankaj in the case for not appearing in the court.
"However, his lawyers told the court that he will be present in the court on the next date," he told news agency PTI.
The ACB, in February this year, had chargesheeted 17 persons, including the Bhujbals in connection with the case.
It had filed a 20,000-page chargesheet consisting of statements of over 60 witnesses.
According to the anti-graft agency, the case was entirely based on documentary evidence, such as fund transfer and bank transactions.
In the construction of Maharashtra Sadan, contractors have earned 80 per cent profits, while as per the government circular such contractors are entitled to only 20 per cent gains, the officials said.
They added that the books of accounts were fudged to show that the profit earned was only one per cent.
Officials had said that to construct Maharashtra Sadan, Chamankar Associates, the contractor firm, had allegedly transferred money to Niche Infrastructure and other companies in which Pankaj and Sameer were the directors.
The chargesheet said that most of the companies floated by the Bhujbals are in the name of employees and used for siphoning off funds. Niche was earlier owned by some employees of Maharashtra Educational Trust, in which the Bhujbals later became directors.
"The court issued production warrant against Bhujbal and his nephew Sameer in the Maharashtra Sadan case," special public prosecutor Pradeep Gharat said.
The production warrant is issued against them as they are presently in the judicial custody in a money laundering case registered against them.
"The jail authorities have to produce the duo on June 22," said Mr Gharat.
Meanwhile, Mr Gharat also sought issuance of non-bailable warrant against Chhagan Bhujbal's son Pankaj in the case for not appearing in the court.
"However, his lawyers told the court that he will be present in the court on the next date," he told news agency PTI.
The ACB, in February this year, had chargesheeted 17 persons, including the Bhujbals in connection with the case.
It had filed a 20,000-page chargesheet consisting of statements of over 60 witnesses.
According to the anti-graft agency, the case was entirely based on documentary evidence, such as fund transfer and bank transactions.
In the construction of Maharashtra Sadan, contractors have earned 80 per cent profits, while as per the government circular such contractors are entitled to only 20 per cent gains, the officials said.
They added that the books of accounts were fudged to show that the profit earned was only one per cent.
Officials had said that to construct Maharashtra Sadan, Chamankar Associates, the contractor firm, had allegedly transferred money to Niche Infrastructure and other companies in which Pankaj and Sameer were the directors.
The chargesheet said that most of the companies floated by the Bhujbals are in the name of employees and used for siphoning off funds. Niche was earlier owned by some employees of Maharashtra Educational Trust, in which the Bhujbals later became directors.
Day After Jammu Protests, Mehbooba Mufti, Omar Abdullah Appeal For Peace
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JAMMU: A day after a nearly 1,000 protesters clashed with the police in Jammu, torching buses and vandalising shops, Chief Minister Mehbooba Mufti and opposition leader Omar Abdullah appealed for calm.
"Any kind of communal politics in Jammu will have -- if not equally disastrous - consequences, like we have in Kashmir of the separatist politics," Ms Mufti said.
"We assure the people of Jammu that we will sort out the matter peacefully without fighting," Mr Abdullah said in assembly today.
Pandemonium had broken out over the incident in the assembly this morning. The BJP members held protests, the house then came together to condemn the incident and appeal for peace.
Last evening, tension had gripped Jammu's Janipur, when an angry crowd held protests against the alleged desecration of a religious place. Three policemen, including a station house officer, were injured in the mob violence. The government issued a statement, saying a mentally unstable man who entered the place of worship has been arrested.
In Jammu, normalcy returned, with shops and business establishments opening. But mobile internet services have been banned for now.
What has happened has happened, now nothing can be done about it. If this man is mentally unsound, what can be done? It is better that there should be peace," said Dwarka Nath Jogi, a priest.
"In the morning, there were some forces which tried to create a disturbance, but police controlled the situation," said Danish Rana, a senior police officer of the city.
"Any kind of communal politics in Jammu will have -- if not equally disastrous - consequences, like we have in Kashmir of the separatist politics," Ms Mufti said.
"We assure the people of Jammu that we will sort out the matter peacefully without fighting," Mr Abdullah said in assembly today.
Last evening, tension had gripped Jammu's Janipur, when an angry crowd held protests against the alleged desecration of a religious place. Three policemen, including a station house officer, were injured in the mob violence. The government issued a statement, saying a mentally unstable man who entered the place of worship has been arrested.
In Jammu, normalcy returned, with shops and business establishments opening. But mobile internet services have been banned for now.
What has happened has happened, now nothing can be done about it. If this man is mentally unsound, what can be done? It is better that there should be peace," said Dwarka Nath Jogi, a priest.
"In the morning, there were some forces which tried to create a disturbance, but police controlled the situation," said Danish Rana, a senior police officer of the city.
BJP Behind Corruption In MCD Hospitals, Says Aam Aadmi Party
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NEW DELHI: Aam Aadmi Party (AAP) leader Dilip Pandey today alleged corruption in three MCD hospitals and held the BJP responsible for it.
"Three hospitals of MCD had been awarding contracts for sanitation to an individual firm without any open tendering process. This is a case of corruption in the BJP-ruled MCD," Mr Pandey said in New Delhi.
He said these include the Hindu Rao, Kasturba Gandhi and Rajan Babu TB Hospitals.
The AAP also attacked the central government for not clearing the AAP government's bills pending with it.
"Three hospitals of MCD had been awarding contracts for sanitation to an individual firm without any open tendering process. This is a case of corruption in the BJP-ruled MCD," Mr Pandey said in New Delhi.
He said these include the Hindu Rao, Kasturba Gandhi and Rajan Babu TB Hospitals.
The AAP also attacked the central government for not clearing the AAP government's bills pending with it.
Business Affairs
Sensex jumps 330 points; Nifty reclaims 8,200 ahead of Fed meet outcome
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Snapping four-session long losing streak on Wednesday, theS&P BSE Sensex settled the day 330 points higher, while the broader Nifty50 reclaimed its key 8,200-mark.
The headline indices gained as investors saw recent losses as overdone, even though sentiment was broadly cautious ahead of the US Federal Reserve's policy decision and the Brexit referendum.
The 30-share index ended the day at 26,726, up 330.63 points, while broad-based 50-share index quoted 8,206, up 97.75 points at close.
The Fed is expected to keep interest rates unchanged, and investors await Chair Janet Yellen's news conference later in the day. The central bank will also issue its updated economic projections.
Meanwhile, Britain is due to hold a referendum next week on whether to exit the European Union.
Still, analysts said shares had now found some support after the Nifty fell 2 per cent in the previous four sessions.
Investors are also hopeful parliament will approve a revamped goods and services tax that would supplant multiple federal and state levies. While support has increased among states, it is yet to achieve a breakthrough.
"At the end of four-five days, most of this weak news may have been priced in and the value-buying may have added strength to the recovery," said Anand James, chief market analyst, Geojit BNP Paribas Financial Services.
Some of the blue chips that were recently hit recovered on Wednesday. Larsen & Toubro gained 3.38 per cent after declining 3.35 percent over the previous four sessions.
Among other gainers, State Bank of India and some of its associate banks rose after CNBC-TV18, citing government sources, reported that the cabinet might approve the merger of five associate banks with the country's biggest lender.
SBI shares rose 3.90 per cent, while those of State Bank of Travancore and State Bank of Bikaner and Jaipur gained 20 per cent each.
Snapping four-session long losing streak on Wednesday, theS&P BSE Sensex settled the day 330 points higher, while the broader Nifty50 reclaimed its key 8,200-mark.
The headline indices gained as investors saw recent losses as overdone, even though sentiment was broadly cautious ahead of the US Federal Reserve's policy decision and the Brexit referendum.
The 30-share index ended the day at 26,726, up 330.63 points, while broad-based 50-share index quoted 8,206, up 97.75 points at close.
The Fed is expected to keep interest rates unchanged, and investors await Chair Janet Yellen's news conference later in the day. The central bank will also issue its updated economic projections.
Meanwhile, Britain is due to hold a referendum next week on whether to exit the European Union.
Still, analysts said shares had now found some support after the Nifty fell 2 per cent in the previous four sessions.
Investors are also hopeful parliament will approve a revamped goods and services tax that would supplant multiple federal and state levies. While support has increased among states, it is yet to achieve a breakthrough.
"At the end of four-five days, most of this weak news may have been priced in and the value-buying may have added strength to the recovery," said Anand James, chief market analyst, Geojit BNP Paribas Financial Services.
Some of the blue chips that were recently hit recovered on Wednesday. Larsen & Toubro gained 3.38 per cent after declining 3.35 percent over the previous four sessions.
Among other gainers, State Bank of India and some of its associate banks rose after CNBC-TV18, citing government sources, reported that the cabinet might approve the merger of five associate banks with the country's biggest lender.
SBI shares rose 3.90 per cent, while those of State Bank of Travancore and State Bank of Bikaner and Jaipur gained 20 per cent each.
Cannot fault Raghuram Rajan for various 'wrongs': Arun Shourie
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Former Union Minister Arun Shourie said on Wednesday RBI Governor Raghuram Rajan cannot be blamed for various "wrongs", including keeping the interest rates high, but made clear that he was against targeting of inflation as an objective of monetary policy.
"I was against this targeting of inflation as an objective of monetary policy. We are too diverse, too many things happen in India... that is the root of the problem, not Raghuram Rajan," Shourie said.
"Everybody is saying he (Rajan) has kept the interest rates high, but what about Parliament which passed the Act saying that the object of monetary policy is control of inflation; targeting of inflation. That's the root cause of the problem," he said during the Corporate Real Estate Conference organised by CoreNet Global in Bengaluru.
He said Rajan cannot be blamed because he was just performing his duty by using at least four to five instruments that were legislated in Parliament to fight inflation.
"Now, interest rate, I agree is not the only instrument for fighting inflation, but if you tell a person your duty is to fight inflation and these are four or five instruments you have-cash deposit issues, interest rates so on and so forth-then he will use those instruments to perform his duty as you have legislated in Parliament," he said.
Replying to a question, Shourie said he would be the last person to know about the government's intent on Rajan's extension.
"Whether Rajan will stay or not, I would be the last person to know. But, as far his professionalism is concerned, I don't think there has been any doubt on that at all," he said.
Shourie said the real intent of the government would be known in the "type" of replacement to Rajan with someone else.
Supposing in the eventuality that Rajan was replaced, "much will depend on the type of replacement you find-that will show the real intent. Do you find an independent robust man like Dr YV Reddy or do you find another regulator," Shourie said.
Former Union Minister Arun Shourie said on Wednesday RBI Governor Raghuram Rajan cannot be blamed for various "wrongs", including keeping the interest rates high, but made clear that he was against targeting of inflation as an objective of monetary policy.
"I was against this targeting of inflation as an objective of monetary policy. We are too diverse, too many things happen in India... that is the root of the problem, not Raghuram Rajan," Shourie said.
"Everybody is saying he (Rajan) has kept the interest rates high, but what about Parliament which passed the Act saying that the object of monetary policy is control of inflation; targeting of inflation. That's the root cause of the problem," he said during the Corporate Real Estate Conference organised by CoreNet Global in Bengaluru.
He said Rajan cannot be blamed because he was just performing his duty by using at least four to five instruments that were legislated in Parliament to fight inflation.
"Now, interest rate, I agree is not the only instrument for fighting inflation, but if you tell a person your duty is to fight inflation and these are four or five instruments you have-cash deposit issues, interest rates so on and so forth-then he will use those instruments to perform his duty as you have legislated in Parliament," he said.
Replying to a question, Shourie said he would be the last person to know about the government's intent on Rajan's extension.
"Whether Rajan will stay or not, I would be the last person to know. But, as far his professionalism is concerned, I don't think there has been any doubt on that at all," he said.
Shourie said the real intent of the government would be known in the "type" of replacement to Rajan with someone else.
Supposing in the eventuality that Rajan was replaced, "much will depend on the type of replacement you find-that will show the real intent. Do you find an independent robust man like Dr YV Reddy or do you find another regulator," Shourie said.
Cabinet clears new civil aviation policy, 5/20 rule abolished
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Airlines will soon charge only Rs 2,500 for one hour flights and will get tax incentives for operating on unserved routes even as fliers will have to pay additional levy towards regional connectivity fund under the new civil aviation policyunveiled on Wednesday.
The government has scrapped the controversial 5/20 norm and now any domestic airline can fly overseas provided they deploy 20 planes or 20 per cent of their total capacity for domestic operations.
Amid concerns over an earlier proposal to auction additional bilateral rights, the government has now decided that a final call on additional rights would be taken by a committee headed by the Cabinet Secretary.
Besides, the Civil Aviation Ministry will come out with initiatives to develop new airports, separate regulations for helicopters and measures to boost skill development in the aviation sector.
Airlines will also get tax incentives for operating on unserved routes.
The new policy was approved by the Cabinet on Wednesday and the much talked out regional air connectivity scheme is expected to be operational in the current quarter ending September.
"The aim is to ensure affordable, convenient and cheap flying" for the people, Civil Aviation Secretary R N Choubey said.
There has been a high decibel debate over the continuance of 5/20 norm--whereby only local airlines having at least five years of operational experience and a fleet of minimum 20 aircraft are allowed to fly overseas.
About the decision to scrap the rule, Union minister Ravi Shankar Prasad said, "A questionable legacy has been thrown into the dustbin."
The 5/20 rule was introduced during the UPA regime.
With regard to charging extra from passengers towards regional connectivity fund, Choubey said, "It will be a very, very small levy".
Airlines will soon charge only Rs 2,500 for one hour flights and will get tax incentives for operating on unserved routes even as fliers will have to pay additional levy towards regional connectivity fund under the new civil aviation policyunveiled on Wednesday.
The government has scrapped the controversial 5/20 norm and now any domestic airline can fly overseas provided they deploy 20 planes or 20 per cent of their total capacity for domestic operations.
Amid concerns over an earlier proposal to auction additional bilateral rights, the government has now decided that a final call on additional rights would be taken by a committee headed by the Cabinet Secretary.
Besides, the Civil Aviation Ministry will come out with initiatives to develop new airports, separate regulations for helicopters and measures to boost skill development in the aviation sector.
Airlines will also get tax incentives for operating on unserved routes.
The new policy was approved by the Cabinet on Wednesday and the much talked out regional air connectivity scheme is expected to be operational in the current quarter ending September.
"The aim is to ensure affordable, convenient and cheap flying" for the people, Civil Aviation Secretary R N Choubey said.
There has been a high decibel debate over the continuance of 5/20 norm--whereby only local airlines having at least five years of operational experience and a fleet of minimum 20 aircraft are allowed to fly overseas.
About the decision to scrap the rule, Union minister Ravi Shankar Prasad said, "A questionable legacy has been thrown into the dustbin."
The 5/20 rule was introduced during the UPA regime.
With regard to charging extra from passengers towards regional connectivity fund, Choubey said, "It will be a very, very small levy".
RBI to cut policy rate by 25 bps on Aug 9: BofA-ML
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Reserve Bank is expected to cut policy rate by 25 basis points in August meet as inflation at around 6 per cent remains in the "benign" zone and forecast of good monsoon is also expected to help, says a BofA-ML report.
According to global financial services major Bank of America Merrill Lynch investors should not read much into the higher May CPI inflation print at 5.76 per cent as it was entirely drive by higher agflation (agricultural inflation).
"We expect RBI to look through the current temporary spike in agflation as it is expected to dampen beyond the next few months with good rains expected to bring in plentiful fresh harvests September onward," BofA-ML said in a research note.
Going ahead BofA-ML expects CPI inflation to stay elevated around 6 per cent over the next 2-3 months on higher agflation. However, May core-CPI inflation remains benign and stable at 4.9 per cent.
"We continue to expect RBI to cut policy rates by 25 bps on August 9. At the same time, the scope for further rate cuts is narrowing," the report added.
Moreover, a shallow recovery favours RBI easing, the report said.
Industrial production contracted by 0.8 per cent in April and has remained weak for six months now. At the same time, GDP growth as per old series has also "disappointed" at 4.9 per cent in FY16 and is expected to grow at 5.8 per cent in FY17, well below our 7-7.5 per cent potential, BofA-ML said.
In its policy review meet on June 7, RBI Governor Raghuram Rajan had kept interest rates intact citing rising inflationary pressure but hinted at a reduction later this year if good monsoon helps ease inflation.
Reserve Bank is expected to cut policy rate by 25 basis points in August meet as inflation at around 6 per cent remains in the "benign" zone and forecast of good monsoon is also expected to help, says a BofA-ML report.
According to global financial services major Bank of America Merrill Lynch investors should not read much into the higher May CPI inflation print at 5.76 per cent as it was entirely drive by higher agflation (agricultural inflation).
"We expect RBI to look through the current temporary spike in agflation as it is expected to dampen beyond the next few months with good rains expected to bring in plentiful fresh harvests September onward," BofA-ML said in a research note.
Going ahead BofA-ML expects CPI inflation to stay elevated around 6 per cent over the next 2-3 months on higher agflation. However, May core-CPI inflation remains benign and stable at 4.9 per cent.
"We continue to expect RBI to cut policy rates by 25 bps on August 9. At the same time, the scope for further rate cuts is narrowing," the report added.
Moreover, a shallow recovery favours RBI easing, the report said.
Industrial production contracted by 0.8 per cent in April and has remained weak for six months now. At the same time, GDP growth as per old series has also "disappointed" at 4.9 per cent in FY16 and is expected to grow at 5.8 per cent in FY17, well below our 7-7.5 per cent potential, BofA-ML said.
In its policy review meet on June 7, RBI Governor Raghuram Rajan had kept interest rates intact citing rising inflationary pressure but hinted at a reduction later this year if good monsoon helps ease inflation.
Cabinet clears merger of SBI, associate banks
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The Cabinet on Wednesday gave a go-ahead to the merger of State Bank of India (SBI) and its associate lenders that would make the state-owned lender a global-sized bank.
Country's largest lender SBI had last month mooted the proposal for merger of its five subsidiary banks with itself and acquisition of the newly set up Bharatiya Mahila Bank. SBI has five associate lenders-State Bank of Bikaner and Jaipur, State Bank of Travancore, State Bank of Patiala, State Bank of Mysore and State Bank of Hyderabad.
"Kindly await a structured briefing on that," Telecom Minister Ravi Shankar Prasad said when asked if the Cabinet approved the merger of associate banks with the SBI.
Meanwhile, SBI Chairperson Arundhati Bhattacharya said merger of SBI and its associate banks is a win-win for both the sides.
"Currently, no Indian bank features in the top 50 banks of the world. With this merger, some visibility at global level is likely to increase. Customers of associates and subsidiaries of the Bank will also be beneficiaries," she said.
She further said that with this merger the network of SBI will increase and its reach multiply. One can expect efficiencies to be created from rationalisation of branches, common treasury pooling and proper deployment of a large skilled resource base, Bhattacharya said.
"Customers of associates and subsidiaries of the Bank will also be beneficiaries. Any introduction of new technology by SBI would simultaneously be available uniformly. The scale of operations and common cost would get rationalised. Overall, the synergies being pooled at one place are going to be a big positive," she added.
Among the associate banks, State Bank of Bikaner and Jaipur, State Bank of Mysore and State Bank of Travancore are listed. There shares jumped nearly 20 per cent on benchmark BSE on Wednesday and hit their respective upper circuit limits towards closing of the trading session. SBI stock was up 3.9 per cent.
The merged entity will become a banking behemoth, which could compete with the largest in the world, with an asset base of Rs 37 trillion (Rs 37 lakh crore) or over $555 billion, with 22,500 branches and 58,000 ATMs. It will have over 50 crore customers.
Presently, SBI has close to 16,500 branches, including 191 foreign offices spread across 36 countries.
SBI first merged State Bank of Saurashtra with itself in 2008. Two years later, State Bank of Indore was merged with it.
The Cabinet on Wednesday gave a go-ahead to the merger of State Bank of India (SBI) and its associate lenders that would make the state-owned lender a global-sized bank.
Country's largest lender SBI had last month mooted the proposal for merger of its five subsidiary banks with itself and acquisition of the newly set up Bharatiya Mahila Bank. SBI has five associate lenders-State Bank of Bikaner and Jaipur, State Bank of Travancore, State Bank of Patiala, State Bank of Mysore and State Bank of Hyderabad.
"Kindly await a structured briefing on that," Telecom Minister Ravi Shankar Prasad said when asked if the Cabinet approved the merger of associate banks with the SBI.
Meanwhile, SBI Chairperson Arundhati Bhattacharya said merger of SBI and its associate banks is a win-win for both the sides.
"Currently, no Indian bank features in the top 50 banks of the world. With this merger, some visibility at global level is likely to increase. Customers of associates and subsidiaries of the Bank will also be beneficiaries," she said.
She further said that with this merger the network of SBI will increase and its reach multiply. One can expect efficiencies to be created from rationalisation of branches, common treasury pooling and proper deployment of a large skilled resource base, Bhattacharya said.
"Customers of associates and subsidiaries of the Bank will also be beneficiaries. Any introduction of new technology by SBI would simultaneously be available uniformly. The scale of operations and common cost would get rationalised. Overall, the synergies being pooled at one place are going to be a big positive," she added.
Among the associate banks, State Bank of Bikaner and Jaipur, State Bank of Mysore and State Bank of Travancore are listed. There shares jumped nearly 20 per cent on benchmark BSE on Wednesday and hit their respective upper circuit limits towards closing of the trading session. SBI stock was up 3.9 per cent.
The merged entity will become a banking behemoth, which could compete with the largest in the world, with an asset base of Rs 37 trillion (Rs 37 lakh crore) or over $555 billion, with 22,500 branches and 58,000 ATMs. It will have over 50 crore customers.
Presently, SBI has close to 16,500 branches, including 191 foreign offices spread across 36 countries.
SBI first merged State Bank of Saurashtra with itself in 2008. Two years later, State Bank of Indore was merged with it.
General Awareness
Sikkim affirms to become the First state in India by having Open Government Data Portal
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Launched by: Lok Sabha MP, P D Rai
Venue and date: Gangtok, June 11 of 2016.
Weblink portal: sikkim.data.gov.in
Open Government Data Platform
Purpose:
Updating data regarding Organic and agricultural and other activities in the portal
Delegate: Sikkim Co-operative Union Chairperson Ganesh Rai
Developed by:
- Information Technology Department
- Government of Sikkim
- National Informatics Centre (NIC) team
Features of the portal:
- The updation of data is controlled by the government controlled entities
- Can be accessed by freely
- Should be reused and redistributed by any person
- The one more step ahead to the national platform by the requirement of hard work
About NIC:
- The headquarters of National Informatics Centre is situated in New Delhi
- Providing e-governance applications in governmental departments at all levels
- Enabling the improvement in all government services
- The all Indian government websites are controlled by the National Informatics Centre
About Sikkim:
- Capital: Gangtok
- Lepcha, Sikkimese, Nepalese and English are some of the languages spoken by the people
- Chief Minister: Pawan Kumar Chamling
- Mask Dance is the most famous dance of Sikkim
- Launched by: Lok Sabha MP, P D RaiVenue and date: Gangtok, June 11 of 2016.Weblink portal: sikkim.data.gov.inOpen Government Data PlatformPurpose:Updating data regarding Organic and agricultural and other activities in the portalDelegate: Sikkim Co-operative Union Chairperson Ganesh RaiDeveloped by:
- Information Technology Department
- Government of Sikkim
- National Informatics Centre (NIC) team
Features of the portal:- The updation of data is controlled by the government controlled entities
- Can be accessed by freely
- Should be reused and redistributed by any person
- The one more step ahead to the national platform by the requirement of hard work
About NIC:- The headquarters of National Informatics Centre is situated in New Delhi
- Providing e-governance applications in governmental departments at all levels
- Enabling the improvement in all government services
- The all Indian government websites are controlled by the National Informatics Centre
About Sikkim:- Capital: Gangtok
- Lepcha, Sikkimese, Nepalese and English are some of the languages spoken by the people
- Chief Minister: Pawan Kumar Chamling
- Mask Dance is the most famous dance of Sikkim
- Information Technology Department
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