General Affairs
PM Modi seeks mother's blessings on his 66th birthday
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Prime Minister Narendra Modi is celebrating his 66th birthday today. On the occasion, PM Modi flew down to Gandhinagar to meet his mother Heeraben to seek her blessings. Elaborate arrangements have been made in Gujarat and across the country to observe the birthday of the 14th prime minister of the country.
PM went to his mother's residence without the carcade or any officials. He greeted locals on his way home. This is the PMs third visit in recent times to Gujarat, where Assembly elections are due next year.
Governor O P Kohli, the entire Gujarat cabinet including the Chief Minister Vijay Rupani, state BJP leaders including the newly-appointed president Jitu Vaghani and hundreds of party workers welcomed Modi at the airport.
After his grand reception, Modi thanked Gujarat BJP leaders and party workers and drove to the Raj Bhavan in Gandhinagar where he will spend the night. Some of the party workers seemed disappointed as Modi did not address them.
MODI TO MEET HIS RELATIVES
After meeting mother, Modi will meet other family members, Gujarat. Modi's mother lives with his younger brother Pankaj Modi in Gandhinagar.
Later, he would go to the tribal district of Dahod to inaugurate various irrigations projects.
Dahod collector Lalit Padaliya said the inauguration ceremony will be held at Limkheda town, around 25 km from the city, and the PM will also address a rally there."The prime minister will inaugurate Kadana-Hafeshwar irrigation project," Padaliya said.
Later in the afternoon he would go to Navsari where he is scheduled to take part in a function where aid would be distributed to the differently-abled persons.
Prime Minister Narendra Modi is celebrating his 66th birthday today. On the occasion, PM Modi flew down to Gandhinagar to meet his mother Heeraben to seek her blessings. Elaborate arrangements have been made in Gujarat and across the country to observe the birthday of the 14th prime minister of the country.
PM went to his mother's residence without the carcade or any officials. He greeted locals on his way home. This is the PMs third visit in recent times to Gujarat, where Assembly elections are due next year.
Governor O P Kohli, the entire Gujarat cabinet including the Chief Minister Vijay Rupani, state BJP leaders including the newly-appointed president Jitu Vaghani and hundreds of party workers welcomed Modi at the airport.
After his grand reception, Modi thanked Gujarat BJP leaders and party workers and drove to the Raj Bhavan in Gandhinagar where he will spend the night. Some of the party workers seemed disappointed as Modi did not address them.
MODI TO MEET HIS RELATIVES
After meeting mother, Modi will meet other family members, Gujarat. Modi's mother lives with his younger brother Pankaj Modi in Gandhinagar.
Later, he would go to the tribal district of Dahod to inaugurate various irrigations projects.
After meeting mother, Modi will meet other family members, Gujarat. Modi's mother lives with his younger brother Pankaj Modi in Gandhinagar.
Later, he would go to the tribal district of Dahod to inaugurate various irrigations projects.
Dahod collector Lalit Padaliya said the inauguration ceremony will be held at Limkheda town, around 25 km from the city, and the PM will also address a rally there."The prime minister will inaugurate Kadana-Hafeshwar irrigation project," Padaliya said.
Later in the afternoon he would go to Navsari where he is scheduled to take part in a function where aid would be distributed to the differently-abled persons.
Modi-Prachanda reset ties; India extends additional Line of Credit to Nepal
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After the initial highs and then severe lows in bilateral relation in the last two years, India and Nepal sought to reboot ties on Friday. An inclusive Nepalese constitution and society development agenda ,security and stability in relations were prominent in talks as Narendra Modi met with his counterpart Pushpa Kamal Dahal in Delhi's Hyderabad House.
PM Modi praised Dahal, the man who replaced KP Oli -the predecessor seen as playing the anti-India and pro-China cards.
Dahal popularly known as Prachanda is on his first official overseas visit to India in his second term as Prime Minister, unlike in the first term when he chose to head first to Beijing instead.
Calling Prachanda a 'catalytic force of peace', PM Modi commended the role he 'personally played in strengthening the democratic institutions in Nepal'.
"I am confident that under your wise leadership, Nepal will successfully implement the Constitution through inclusive dialogue accommodating the aspirations of all sections of your diverse society," said PM Modi in the joint media remarks after post talks.
Prachanda hailed the new constitution of Nepal as historic and stressed,"You are aware that my government has made serious efforts to bring everyone on board as we enter the phase of implementation of the Nepali constitution."
Earlier addressing the Nepali community at an embassy event upon arrival in Delhi on Thursday evening, Prachanda had accepted that 'without taking Janjatis,Tharus,Madhesis into confidence, the right atmospherics cannot be created for implementation of the constitution.'
The entire spectrum of bilateral relations was discussed in restricted and delegation talks, with focus on economic engagement, energy and hydropower sectors.
INDIA EXTENDS ADDITIONAL LINE OF CREDIT FOR QUAKE RECONSTRUCTION
The two sides signed three agreements including an MoU on Management Consultancy Services for Upgradation/Improvement of Road Infrastructure in Terai Area .An Amendatory agreement to 1 billion US dollar Line of Credit agreement signed on November 25,2014 was inked. This will enable reapportioning of unutilised funds for post-earthquake reconstruction projects in Nepal.
Additionally India has extended a New Line of Credit agreement for 750 million US dollar for post-earthquake reconstruction projects in the Himalayan nation.
Highlighting the agreements Modi said," I am confident that it would bring relief to millions of people affected by last year's devastating earthquake in Nepal.India has also agreed to extend additional Line of Credit for new projects such as Phase-2 of Terai Roads, power transmission lines, substations and a polytechnic in Kaski."
BORDER SECURITY DISCUSSED
The two leaders also took stock of the open border that witnessed months of blockade, agitation and violent force following the promulgation of the new constitution of Nepal.
"Open borders between our countries provide great opportunities for cooperation and interaction among our people. But, we must also continue to guard against elements that seek to misuse the border," stressed Modi.
Recognising the need for translating decisions into actions, the two leaders agreed to focus on close monitoring and time bound completion of all development projects.
INTENSIFYING ENGAGEMENTS AMIDST A TIGHT ROPE WALK
In his new term that will last for nine months before the baton is passed on to Nepali Congress's Deuba, Prachanda will have to do a tightrope walk between New Delhi and Beijing Asked about Kathmandu's proximity to Beijing and projects signed during the KP Oli regime, Indian Foreign Secretary Jaishankar called the Indo-Nepal relationship 'a unique one.'
"While neighbour's share geography, not all neighbours have the same historical and cultural binding or an open border," Jaishankar said downplaying speculations of growing influence of the dragon on Kathmandu.
Prachanda who is being hosted the guest wing of Rashtrapati Bhawan received a ceremonial welcome on Friday morning and later in the evening he called on President Pranab Mukherjee.President Mukherjee is expected to travel to Nepal in the first week of November post Diwali.
The Nepalese PM also extended an invitation to PM Modi for an official visit which Modi accepted. Prachanda will visit the Nathpa Jhakri hydroelectric project in Himachal on Saturday as well as visit Yoga Guru Ramdev's Patanjali Yogapeeth in Haridwar and hold further meetings in Delhi prior to his departure on Sunday.
After the initial highs and then severe lows in bilateral relation in the last two years, India and Nepal sought to reboot ties on Friday. An inclusive Nepalese constitution and society development agenda ,security and stability in relations were prominent in talks as Narendra Modi met with his counterpart Pushpa Kamal Dahal in Delhi's Hyderabad House.
PM Modi praised Dahal, the man who replaced KP Oli -the predecessor seen as playing the anti-India and pro-China cards.
Dahal popularly known as Prachanda is on his first official overseas visit to India in his second term as Prime Minister, unlike in the first term when he chose to head first to Beijing instead.
Calling Prachanda a 'catalytic force of peace', PM Modi commended the role he 'personally played in strengthening the democratic institutions in Nepal'.
"I am confident that under your wise leadership, Nepal will successfully implement the Constitution through inclusive dialogue accommodating the aspirations of all sections of your diverse society," said PM Modi in the joint media remarks after post talks.
Prachanda hailed the new constitution of Nepal as historic and stressed,"You are aware that my government has made serious efforts to bring everyone on board as we enter the phase of implementation of the Nepali constitution."
Earlier addressing the Nepali community at an embassy event upon arrival in Delhi on Thursday evening, Prachanda had accepted that 'without taking Janjatis,Tharus,Madhesis into confidence, the right atmospherics cannot be created for implementation of the constitution.'
The entire spectrum of bilateral relations was discussed in restricted and delegation talks, with focus on economic engagement, energy and hydropower sectors.
INDIA EXTENDS ADDITIONAL LINE OF CREDIT FOR QUAKE RECONSTRUCTION
INDIA EXTENDS ADDITIONAL LINE OF CREDIT FOR QUAKE RECONSTRUCTION
The two sides signed three agreements including an MoU on Management Consultancy Services for Upgradation/Improvement of Road Infrastructure in Terai Area .An Amendatory agreement to 1 billion US dollar Line of Credit agreement signed on November 25,2014 was inked. This will enable reapportioning of unutilised funds for post-earthquake reconstruction projects in Nepal.
Additionally India has extended a New Line of Credit agreement for 750 million US dollar for post-earthquake reconstruction projects in the Himalayan nation.
Highlighting the agreements Modi said," I am confident that it would bring relief to millions of people affected by last year's devastating earthquake in Nepal.India has also agreed to extend additional Line of Credit for new projects such as Phase-2 of Terai Roads, power transmission lines, substations and a polytechnic in Kaski."
BORDER SECURITY DISCUSSED
BORDER SECURITY DISCUSSED
The two leaders also took stock of the open border that witnessed months of blockade, agitation and violent force following the promulgation of the new constitution of Nepal.
"Open borders between our countries provide great opportunities for cooperation and interaction among our people. But, we must also continue to guard against elements that seek to misuse the border," stressed Modi.
Recognising the need for translating decisions into actions, the two leaders agreed to focus on close monitoring and time bound completion of all development projects.
INTENSIFYING ENGAGEMENTS AMIDST A TIGHT ROPE WALK
INTENSIFYING ENGAGEMENTS AMIDST A TIGHT ROPE WALK
In his new term that will last for nine months before the baton is passed on to Nepali Congress's Deuba, Prachanda will have to do a tightrope walk between New Delhi and Beijing Asked about Kathmandu's proximity to Beijing and projects signed during the KP Oli regime, Indian Foreign Secretary Jaishankar called the Indo-Nepal relationship 'a unique one.'
"While neighbour's share geography, not all neighbours have the same historical and cultural binding or an open border," Jaishankar said downplaying speculations of growing influence of the dragon on Kathmandu.
Prachanda who is being hosted the guest wing of Rashtrapati Bhawan received a ceremonial welcome on Friday morning and later in the evening he called on President Pranab Mukherjee.President Mukherjee is expected to travel to Nepal in the first week of November post Diwali.
The Nepalese PM also extended an invitation to PM Modi for an official visit which Modi accepted. Prachanda will visit the Nathpa Jhakri hydroelectric project in Himachal on Saturday as well as visit Yoga Guru Ramdev's Patanjali Yogapeeth in Haridwar and hold further meetings in Delhi prior to his departure on Sunday.
India loses WTO appeal in US solar dispute
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India lost its appeal at the World Trade Organisation in a dispute over solar power on Friday, failing to overturn a US complaint that New Delhi had discriminated against importers in the Indian solar power sector.
The WTO's appeals judges upheld an earlier ruling that found India had broken WTO rules by requiring solar power developers to use Indian-made cells and modules. The appeal ruling is final and India will be expected to bring its laws into compliance with the WTO rules.
"This report is a clear victory for American solar manufacturers and workers, and another step forward in the fight against climate change," US Trade Representative Michael Froman said in a statement.
Indian officials made no immediate comment on the appeal outcome.
US solar exports to India have fallen by more than 90 percent since India brought in the rules, the statement said.
As in the earlier ruling, which was issued in February this year, the judges said India could not claim exemptions on the basis of that its national solar power sector was included in government procurement, nor on the basis that solar goods were in short supply.
There was also no justification on the grounds of ensuring ecologically sustainable growth or combatting climate change.
The dispute, which the United States first launched in February 2013, involved an increasingly common target of trade disputes - solar power, with an increasingly common complaint - local content requirements.
The appeal ruling came just days after India launched a WTO complaint against subsidies for the solar industry in eight US states.
Under WTO rules, countries are not allowed to discriminate against imports and favour local producers, but in the past five years countries keen to support their own manufacturers have frequently resorted to local content requirements, while keeping a sharp eye out for their use by others.
"We strongly support the rapid deployment of solar energy worldwide, including in India," Froman said.
"But local content requirements are not only contrary to WTO rules, but actually undermine our efforts to promote clean energy by requiring the use of more expensive and less efficient equipment, making it more difficult for clean energy sources to be cost-competitive."
India lost its appeal at the World Trade Organisation in a dispute over solar power on Friday, failing to overturn a US complaint that New Delhi had discriminated against importers in the Indian solar power sector.
The WTO's appeals judges upheld an earlier ruling that found India had broken WTO rules by requiring solar power developers to use Indian-made cells and modules. The appeal ruling is final and India will be expected to bring its laws into compliance with the WTO rules.
"This report is a clear victory for American solar manufacturers and workers, and another step forward in the fight against climate change," US Trade Representative Michael Froman said in a statement.
Indian officials made no immediate comment on the appeal outcome.
US solar exports to India have fallen by more than 90 percent since India brought in the rules, the statement said.
As in the earlier ruling, which was issued in February this year, the judges said India could not claim exemptions on the basis of that its national solar power sector was included in government procurement, nor on the basis that solar goods were in short supply.
There was also no justification on the grounds of ensuring ecologically sustainable growth or combatting climate change.
The dispute, which the United States first launched in February 2013, involved an increasingly common target of trade disputes - solar power, with an increasingly common complaint - local content requirements.
The appeal ruling came just days after India launched a WTO complaint against subsidies for the solar industry in eight US states.
Under WTO rules, countries are not allowed to discriminate against imports and favour local producers, but in the past five years countries keen to support their own manufacturers have frequently resorted to local content requirements, while keeping a sharp eye out for their use by others.
"We strongly support the rapid deployment of solar energy worldwide, including in India," Froman said.
"But local content requirements are not only contrary to WTO rules, but actually undermine our efforts to promote clean energy by requiring the use of more expensive and less efficient equipment, making it more difficult for clean energy sources to be cost-competitive."
Delhi ill, L-G Najeeb Jung asks Deputy CM Manish Sisodia to return from Finland immediately
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In the wake of chikungunya and dengue outbreak in Delhi, Lt Governor Najeeb Jung has sent an urgent fax to Deputy CM Manish Sisodia asking him to return from Finland immediately.
On the pretext of going on an educational tour to Finland, Delhi Deputy CM Manish Sisodia was caught on camera indulging in extravagance. This at a time when the national capital is plagued by cases of dengue and chikungunya and patients are struggling to get medical attention.
SISODIA SPLURGING
Sisodia was seen chilling in Helsinki, wining and dining, relaxing on a luxury boat cruise, enjoying ice-cream and smiling, quite brazenly one would say, as toll of patients dying of dengue and chikungunya in Delhi keeps rising.
In the wake of chikungunya and dengue outbreak in Delhi, Lt Governor Najeeb Jung has sent an urgent fax to Deputy CM Manish Sisodia asking him to return from Finland immediately.
On the pretext of going on an educational tour to Finland, Delhi Deputy CM Manish Sisodia was caught on camera indulging in extravagance. This at a time when the national capital is plagued by cases of dengue and chikungunya and patients are struggling to get medical attention.
SISODIA SPLURGING
Sisodia was seen chilling in Helsinki, wining and dining, relaxing on a luxury boat cruise, enjoying ice-cream and smiling, quite brazenly one would say, as toll of patients dying of dengue and chikungunya in Delhi keeps rising.
Seventh Pay Commission: Soldiers to get new salaries in September pay
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Satisfied with assurances by Defence Minister Manohar Parrikar, Chairman of the Chiefs of Staff Committee (CoSC) Air Chief Marshal Arup Raha has issued directions to all service headquarters asking them to issue orders for implementation of the 7th Pay Commission.
This means that the soldiers will receive their new salary in their pay in September.
MOVE AFTER MEET WITH PARRIKAR
The development came after Raha, along with Navy chief Admiral Sunil Lanba, met with Parrikar earlier this week. Parrikar assured them that the "anomalies" they pointed out in the 7th Pay Commission will be taken up at the "highest level", Defence sources said.
In a surprising move, the three services had on September 9 issued letters to their formations, saying they have asked the government to hold "in abeyance" the implementation of the CPC in view of the "unresolved anomalies".
"CONCERNS RAISED BY FORCES WILL BE ADDRESSED"
Sources said that during the meeting with the chiefs, Parrikar told them that the government cares for the forces and all concerns raised by them will be addressed.
They said that Parrikar even got the gazette notification announcing the 7th Pay Commission amended to make sure the military retains its edge over the Central Armed Police Forces.
The Defence Ministry had recently notified the 7th Pay Commission. Sources pointed out that a cabinet notification cannot be corrected before it is notified.
"The anomalies committees are meant to correct the shortcomings," sources said.
The forces argue that the anomalies lower the status and pay parity of forces vis-a-vis their counterparts in the police and civilian administration.
Satisfied with assurances by Defence Minister Manohar Parrikar, Chairman of the Chiefs of Staff Committee (CoSC) Air Chief Marshal Arup Raha has issued directions to all service headquarters asking them to issue orders for implementation of the 7th Pay Commission.
This means that the soldiers will receive their new salary in their pay in September.
MOVE AFTER MEET WITH PARRIKAR
The development came after Raha, along with Navy chief Admiral Sunil Lanba, met with Parrikar earlier this week. Parrikar assured them that the "anomalies" they pointed out in the 7th Pay Commission will be taken up at the "highest level", Defence sources said.
In a surprising move, the three services had on September 9 issued letters to their formations, saying they have asked the government to hold "in abeyance" the implementation of the CPC in view of the "unresolved anomalies".
"CONCERNS RAISED BY FORCES WILL BE ADDRESSED"
Sources said that during the meeting with the chiefs, Parrikar told them that the government cares for the forces and all concerns raised by them will be addressed.
They said that Parrikar even got the gazette notification announcing the 7th Pay Commission amended to make sure the military retains its edge over the Central Armed Police Forces.
The Defence Ministry had recently notified the 7th Pay Commission. Sources pointed out that a cabinet notification cannot be corrected before it is notified.
"The anomalies committees are meant to correct the shortcomings," sources said.
The forces argue that the anomalies lower the status and pay parity of forces vis-a-vis their counterparts in the police and civilian administration.
Business Affairs
Flipkart, Amazon and Snapdeal: The big festive discounts are coming
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It is also expected to come up with a "buy-now-pay-later" scheme and is said to be in talks with lenders to arrange pre-approved loans for consumers. This move will give Flipkart a big edge over its competitors Amazon and Snapdeal.
To ensure better and timely service to its millions of customers, the firm is likely to organise its 'Big Billion Day sale' in installments throughout the month of October.
Reports say Flipkart plans to raise its stock of products in order to efficiently deal with a sudden increased demand for goods during the sale period.
The firm's Re 1 offer, launched during the first big-billion day sale, is expected to be back this year.
The retailer is also likely to come up with exclusive tie-ups with brands and offers like EMIs (equated monthly installments), which will make products more affordable to a larger audience of customers.
Snapdeal
Ahead of the festive season sales, another major retailer Snapdeal plans to create 10,000 temporary jobs at the company between September 15 to November 15, with the positions mostly being in logistics to ensure smooth deliveries.
The firm has invested Rs 200 crore in rebranding activities and also unveiled a new logo as the e-commerce major focuses on wooing the next 100 million potential online shoppers. Snapdeal has done away with its blue and red logo, replacing it with a Vermello (red)-coloured box.
The excitement for the festive season sales has just begun and it will be worth watching how the Big Three will handle the mammoth demand for the discounted products.
It is also expected to come up with a "buy-now-pay-later" scheme and is said to be in talks with lenders to arrange pre-approved loans for consumers. This move will give Flipkart a big edge over its competitors Amazon and Snapdeal.
To ensure better and timely service to its millions of customers, the firm is likely to organise its 'Big Billion Day sale' in installments throughout the month of October.
Reports say Flipkart plans to raise its stock of products in order to efficiently deal with a sudden increased demand for goods during the sale period.
The firm's Re 1 offer, launched during the first big-billion day sale, is expected to be back this year.
The retailer is also likely to come up with exclusive tie-ups with brands and offers like EMIs (equated monthly installments), which will make products more affordable to a larger audience of customers.
Snapdeal
Snapdeal
Ahead of the festive season sales, another major retailer Snapdeal plans to create 10,000 temporary jobs at the company between September 15 to November 15, with the positions mostly being in logistics to ensure smooth deliveries.
The firm has invested Rs 200 crore in rebranding activities and also unveiled a new logo as the e-commerce major focuses on wooing the next 100 million potential online shoppers. Snapdeal has done away with its blue and red logo, replacing it with a Vermello (red)-coloured box.
The excitement for the festive season sales has just begun and it will be worth watching how the Big Three will handle the mammoth demand for the discounted products.
Why Yes Bank's deferred $1 billion issue was important
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Last week, India's fifth-largest private sector bank, Yes Bank, abruptly put on hold its ambitious plan to raise $1 billion, citing extreme volatility in the share price. The bank was targeting a higher price of Rs 1,410 per share. The day it took the decision to suspend the offering, the share price plunged to Rs 1,330 per share from its previous day closing of Rs 1,405. The stock was on the rise in the run-up to the issue, rising from Rs 1,221 per share in early August to Rs 1,440 per share on September 6, two days before the issue opening. While the market regulator, Securities and Exchange Board of India (Sebi) is looking into the various aspects from pricing to deferment, the bank has to now strategise its next move. The capital has to be raised for meeting the bank's growth requirement.
Take a look why the bank needs capital:
Boosting Capital Adequacy Ratio
Banks are required to keep aside a portion of capital before lending to any corporate or retail customers. There is a constant infusion of capital needed for a growing bank like Yes Bank. For example, the bank grew its advances by a whopping 30 per cent to Rs 98,209 crore in 2015/16. This robust growth continues in the first quarter of 2016/17 with 33 per cent growth in advances at Rs 1,05,942 crore. At a time when credit growth in the banking industry is at 10 per cent, Yes Bank is growing almost three times the industry growth. The billion-dollar issue was expected to boost the tier-1 or core capital from 10 per cent-plus to 15 per cent. Similarly, the total capital adequacy ratio was supposed to move from 15.1 per cent to close to 20 per cent. Clearly, the bank was building a capital buffer to support its growth requirement for the nest 3-4 years.
The Large Bank Phase
Yes Bank is in its third phase of growth, which it calls the large bank phase. In a little over a decade, the bank has amassed huge growth in its balance sheet. Today, at a balance sheet size of Rs 1,65,263 crore, this mid-sized bank is bigger than public sector banks like United Bank of India, State Bank of Patiala, Dena Bank, and State Bank of Bikaner and Jaipur.
Retail Expansion
Yes Bank started as a corporate bank offering lending as well as advisory services to corporate clients. The bank also made a big foray into knowledge and renewable sectors. Currently, the bank has entered the retail banking journey to get into more diversified business segments. In fact, retail is the only segment that is growing today - corporates faced with higher debt and lower capacity utilisation are not borrowing from the bank. Yes Bank's retail portfolio is just 10 per cent of its advances. There is huge scope for growth by expanding the branches as well as product mix. It has already increased its branch network from 631 to 900-plus in the past 18 months. This number will further move up in the next 3-4 years. Similarly, the bank has launched its credit card and also got an approval to start the mutual fund business.
Competition and peer pressure
The competition is all set to come from new models of banking - payments banks and small finance banks. Similarly, Kotak Mahindra Bank, which got the licence along with Yes Bank in the mid 2000 period, has taken a big stride by acquiring ING Vysya Bank, which has a huge network in the South of India. This acquisition, apart from balance sheet size, gives a huge network of branches, products and clients to Kotak. While Yes Bank is not looking at inorganic growth, the bank has only organic route to expand.
Asset Quality Pressure
The provisioning for stressed assets also takes away capital. In fact, after the asset quality review by RBI, there are many banks that are under pressure. While Yes Bank's NPAs are very low, they are also on the rise, which require provisioning from capital.
Take a look why the bank needs capital:
Boosting Capital Adequacy Ratio
Banks are required to keep aside a portion of capital before lending to any corporate or retail customers. There is a constant infusion of capital needed for a growing bank like Yes Bank. For example, the bank grew its advances by a whopping 30 per cent to Rs 98,209 crore in 2015/16. This robust growth continues in the first quarter of 2016/17 with 33 per cent growth in advances at Rs 1,05,942 crore. At a time when credit growth in the banking industry is at 10 per cent, Yes Bank is growing almost three times the industry growth. The billion-dollar issue was expected to boost the tier-1 or core capital from 10 per cent-plus to 15 per cent. Similarly, the total capital adequacy ratio was supposed to move from 15.1 per cent to close to 20 per cent. Clearly, the bank was building a capital buffer to support its growth requirement for the nest 3-4 years.
The Large Bank Phase
Yes Bank is in its third phase of growth, which it calls the large bank phase. In a little over a decade, the bank has amassed huge growth in its balance sheet. Today, at a balance sheet size of Rs 1,65,263 crore, this mid-sized bank is bigger than public sector banks like United Bank of India, State Bank of Patiala, Dena Bank, and State Bank of Bikaner and Jaipur.
Retail Expansion
Yes Bank started as a corporate bank offering lending as well as advisory services to corporate clients. The bank also made a big foray into knowledge and renewable sectors. Currently, the bank has entered the retail banking journey to get into more diversified business segments. In fact, retail is the only segment that is growing today - corporates faced with higher debt and lower capacity utilisation are not borrowing from the bank. Yes Bank's retail portfolio is just 10 per cent of its advances. There is huge scope for growth by expanding the branches as well as product mix. It has already increased its branch network from 631 to 900-plus in the past 18 months. This number will further move up in the next 3-4 years. Similarly, the bank has launched its credit card and also got an approval to start the mutual fund business.
Competition and peer pressure
The competition is all set to come from new models of banking - payments banks and small finance banks. Similarly, Kotak Mahindra Bank, which got the licence along with Yes Bank in the mid 2000 period, has taken a big stride by acquiring ING Vysya Bank, which has a huge network in the South of India. This acquisition, apart from balance sheet size, gives a huge network of branches, products and clients to Kotak. While Yes Bank is not looking at inorganic growth, the bank has only organic route to expand.
Asset Quality Pressure
The provisioning for stressed assets also takes away capital. In fact, after the asset quality review by RBI, there are many banks that are under pressure. While Yes Bank's NPAs are very low, they are also on the rise, which require provisioning from capital.
Banks investigating Re 1 deposits in Jandhan accounts, says FM Arun Jaitley
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Finance Minister Arun Jaitley on Friday said 4 PSU banks are "investigating from their branches" whether money in some Jandhan accounts was deposited by account holders themselves or by business correspondents to keep the number of zero-balance accounts low.
He was responding to a question on media report alleging that bankers in some branches of Punjab and Sind Bank, Punjab National Bank, Bank of Baroda and Bank of India have themselves deposited INR 1 in the Jandhan accounts to reduce the number of zero-balance accounts.
"In case of few accounts, this issue has arisen and there are names of four banks. We have asked them. The banks are investigating from their branches whether account holders have put in money or business correspondents have done it. After that the banks will give their report to the Department of Financial Services," Jaitley said.
He held a meeting with the heads of PSU banks on Friday to review the quarterly performance of lenders.
Jaitley said there are 24 crore Jandhan accounts but INR 42,000 crore have been deposited in them.
"Those 24 crore accounts mostly have people from weaker sections. Now those people have deposited INR 42,000 crore in these accounts. The figure of INR 42,000 crore cannot be arrived at by adding INR 1," he said.
PMJDY, the flagship financial inclusion scheme of the government, aims to provide financial services, deposit accounts, remittances, credit and accident insurance to everyone.
It also seeks to inculcate a widespread banking habit and create credit histories of account holders, thereby facilitating them to access overdraft/credit from banks.
Finance Minister Arun Jaitley on Friday said 4 PSU banks are "investigating from their branches" whether money in some Jandhan accounts was deposited by account holders themselves or by business correspondents to keep the number of zero-balance accounts low.
He was responding to a question on media report alleging that bankers in some branches of Punjab and Sind Bank, Punjab National Bank, Bank of Baroda and Bank of India have themselves deposited INR 1 in the Jandhan accounts to reduce the number of zero-balance accounts.
"In case of few accounts, this issue has arisen and there are names of four banks. We have asked them. The banks are investigating from their branches whether account holders have put in money or business correspondents have done it. After that the banks will give their report to the Department of Financial Services," Jaitley said.
He held a meeting with the heads of PSU banks on Friday to review the quarterly performance of lenders.
Jaitley said there are 24 crore Jandhan accounts but INR 42,000 crore have been deposited in them.
"Those 24 crore accounts mostly have people from weaker sections. Now those people have deposited INR 42,000 crore in these accounts. The figure of INR 42,000 crore cannot be arrived at by adding INR 1," he said.
PMJDY, the flagship financial inclusion scheme of the government, aims to provide financial services, deposit accounts, remittances, credit and accident insurance to everyone.
It also seeks to inculcate a widespread banking habit and create credit histories of account holders, thereby facilitating them to access overdraft/credit from banks.
Axis Bank buys over 13% in ACRE from IFCI at Rs 22.7 crore
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Private sector lender Axis Bank will buy 13.67 per cent stake in Assets Care and Reconstruction Enterprise (ACRE) from IFCI for Rs 22.72 crore.
A share purchase agreement has been completed between the two companies for the stake transfer.
The Bank has signed a share purchase agreement with IFCI for acquisition of 73,28,334 equity shares (13.67 per cent of total outstanding shares) of face value of Rs 10 per share in Assets Care and Reconstruction Enterprise from IFCI at Rs 31 per share, resulting in a total cash consideration of Rs 22.72 crore, Axis Bank said in a release.
The transaction is subject to regulatory approvals including that from Reserve Bank. SSG Capital Management (Singapore Pte Ltd), IFCI Ltd, Punjab National Bank, Tourism Finance Corporation, Bank of Baroda, LIC, United Bank of India and Madhya Pradesh Consultancy (MPCON) are the shareholders in ACRE.
SSG Capital Management has the biggest shareholding of 49 per cent in ACRE, IFCI holds 19.34 per cent, PNB 15.30 per cent, Tourism Finance 5.44 per cent, Bank of Baroda 5.34 per cent while the rest is held by LIC, UBI and MPCON.
IFCI wants to exit its entire stake-holding in ACRE and has been in talks with buyers for some time now to sell its stake in the entity. ACRE, an asset reconstruction company, is engaged in the acquisition of assets (NPAs) from Banks/FIs and their resolution. The Axis Bank stock closed 2.11 per cent higher at Rs 601.15 on BSE.
Private sector lender Axis Bank will buy 13.67 per cent stake in Assets Care and Reconstruction Enterprise (ACRE) from IFCI for Rs 22.72 crore.
A share purchase agreement has been completed between the two companies for the stake transfer.
The Bank has signed a share purchase agreement with IFCI for acquisition of 73,28,334 equity shares (13.67 per cent of total outstanding shares) of face value of Rs 10 per share in Assets Care and Reconstruction Enterprise from IFCI at Rs 31 per share, resulting in a total cash consideration of Rs 22.72 crore, Axis Bank said in a release.
The transaction is subject to regulatory approvals including that from Reserve Bank. SSG Capital Management (Singapore Pte Ltd), IFCI Ltd, Punjab National Bank, Tourism Finance Corporation, Bank of Baroda, LIC, United Bank of India and Madhya Pradesh Consultancy (MPCON) are the shareholders in ACRE.
SSG Capital Management has the biggest shareholding of 49 per cent in ACRE, IFCI holds 19.34 per cent, PNB 15.30 per cent, Tourism Finance 5.44 per cent, Bank of Baroda 5.34 per cent while the rest is held by LIC, UBI and MPCON.
IFCI wants to exit its entire stake-holding in ACRE and has been in talks with buyers for some time now to sell its stake in the entity. ACRE, an asset reconstruction company, is engaged in the acquisition of assets (NPAs) from Banks/FIs and their resolution. The Axis Bank stock closed 2.11 per cent higher at Rs 601.15 on BSE.
Govt to go ahead with merger of SBI subsidiaries, BMB: FM Arun Jaitley
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Unfazed by the protests of bank unions, Finance Minister Arun Jaitley said on Friday the government will go ahead with the merger of associates banks and Bharatiya Mahila Bank with SBI as the proposal has been approved at the highest level by the Union Cabinet.
"All procedures will be followed. The government has already taken decision at the level of the Cabinet to fully support the proposal for the merger ," Jaitley said post the meeting with public sector banks for the first quarter performance review.
The government has recently cleared the proposal to merge State Bank of India (SBI) with its five associate banks-State Bank of Bikaner and Jaipur, State Bank of Travancore, State Bank of Patiala, State Bank of Hyderabad-and the new Bharatiya Mahila Bank (BMB).
In August, SBI had said that all its associate banks and BMB will be merged into it that will add an additional Rs 8 lakh crore to its assets making it a banking behemoth with total assets of Rs 30 lakh crore, an increase of about 36 per cent.
In May, about 50,000 employees of the five SBI associate banks had gone on a day-long nationwide strike to protest the merger with their parent bank SBI.
The union, in a protest under the banner of All India Bank Employees Association, had said, "We are protesting against the plan of SBI management to merge 5 large associate banks into it. Besides, the Kerala Legislative Assembly had passed a resolution in July against the merger of State Bank of Travancore (SBT) with SBI, stating it would adversely affect the state's economic growth."
The resolution, introduced by Chief Minister Pinarayi Vijayan, had asked the Centre and Reserve Bank of India to rescind the decision to amalgamate SBT with SBI.
In reply to a question on dilution of stake in IDBI Bank, Jaitley said the matter is still under consideration. The issue is still under the consideration of the government. The decision of the government stands.
The Government is also facing protest from bank unions with regard to divestment of its stake in IDBI Bank. It is planning to divest up to 49 per cent in a phased manner. As of quarter ended June 30, government shareholding in IDBI Bank stood at 73.98 per cent.
Unfazed by the protests of bank unions, Finance Minister Arun Jaitley said on Friday the government will go ahead with the merger of associates banks and Bharatiya Mahila Bank with SBI as the proposal has been approved at the highest level by the Union Cabinet.
"All procedures will be followed. The government has already taken decision at the level of the Cabinet to fully support the proposal for the merger ," Jaitley said post the meeting with public sector banks for the first quarter performance review.
The government has recently cleared the proposal to merge State Bank of India (SBI) with its five associate banks-State Bank of Bikaner and Jaipur, State Bank of Travancore, State Bank of Patiala, State Bank of Hyderabad-and the new Bharatiya Mahila Bank (BMB).
In August, SBI had said that all its associate banks and BMB will be merged into it that will add an additional Rs 8 lakh crore to its assets making it a banking behemoth with total assets of Rs 30 lakh crore, an increase of about 36 per cent.
In May, about 50,000 employees of the five SBI associate banks had gone on a day-long nationwide strike to protest the merger with their parent bank SBI.
The union, in a protest under the banner of All India Bank Employees Association, had said, "We are protesting against the plan of SBI management to merge 5 large associate banks into it. Besides, the Kerala Legislative Assembly had passed a resolution in July against the merger of State Bank of Travancore (SBT) with SBI, stating it would adversely affect the state's economic growth."
The resolution, introduced by Chief Minister Pinarayi Vijayan, had asked the Centre and Reserve Bank of India to rescind the decision to amalgamate SBT with SBI.
In reply to a question on dilution of stake in IDBI Bank, Jaitley said the matter is still under consideration. The issue is still under the consideration of the government. The decision of the government stands.
The Government is also facing protest from bank unions with regard to divestment of its stake in IDBI Bank. It is planning to divest up to 49 per cent in a phased manner. As of quarter ended June 30, government shareholding in IDBI Bank stood at 73.98 per cent.
General Awareness
India ranked 112th in World Economic Freedom Index
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India has slipped by 10 positions to 112th, as it “fared badly” across categories including legal system and regulation, according to the Economic Freedom of the World: 2016 Annual Report.
Economic Freedom Index:-
Economic freedom is the fundamental right of every human to control his or her own labor and property. In an economically free society, individuals are free to work, produce, consume, and invest in any way they please.
- In economically free societies, governments allow labor, capital, and goods to move freely, and refrain from coercion or constraint of liberty beyond the extent necessary to protect and maintain liberty itself.
- The Index of Economic Freedom is an annual index and ranking created by The Heritage Foundation and The Wall Street Journal in 1995 to measure the degree of economic freedom in the world’s nations.
- The creators of the index took an approach similar to Adam Smith’s in The Wealth of Nations, that basic institutions that protect the liberty of individuals to pursue their own economic interests result in greater prosperity for the larger society
Index – 2016:-
India has fared badly in all categories i.e. legal system and property rights (86), sound money (130), freedom to trade internationally (144) and regulation (132) except the size of the government (8).
- The index has become more comprehensive and the available data more complete. As a result, the number and composition of the components for many countries varies across time.
- This presents a problem similar to that confronted when calculating GDP or a price index over time when we know that the underlying bundle of goods and services is changing from one year to another.
- In order to correct for this problem and assure comparability across time, we have done the same thing that statisticians analyzing national income do: we have chain linked the data.
- Construction of the index published in Economic Freedom of the World is based on three important methodological principles.
- First, objective components are always preferred to those that involve surveys or value judgments. Given the multidimensional nature of economic freedom and the importance of legal and regulatory elements, it is sometimes necessary to use data based on surveys, expert panels, and generic case studies.
- Hong Kong and Singapore, once again, occupy the top two positions. Next comes New Zealand and Switzerland, two countries almost always in the top five.
- Five countries—Canada, Georgia, Ireland, Mauritius, and United Arab Emirates— are tied for fifth place. Australia and United Kingdom conclude the top ten with a tie.
- The rankings of some other major countries are the United States (16th), Germany (30th), Japan (tied for 40th), South Korea (tied for 42nd), France (tied for 57th), Italy (69th), Mexico (tied for 88th), Russia (tied for 102nd), India (112th), China (tied for 113th), and Brazil (124th).
- The 10 lowest-rated countries are: Iran, Algeria, Chad, Guinea, Angola, Central African Republic, Argentina, Republic of Congo, Libya, and lastly Venezuela
- In economically free societies, governments allow labor, capital, and goods to move freely, and refrain from coercion or constraint of liberty beyond the extent necessary to protect and maintain liberty itself.
- The Index of Economic Freedom is an annual index and ranking created by The Heritage Foundation and The Wall Street Journal in 1995 to measure the degree of economic freedom in the world’s nations.
- The creators of the index took an approach similar to Adam Smith’s in The Wealth of Nations, that basic institutions that protect the liberty of individuals to pursue their own economic interests result in greater prosperity for the larger society
- The index has become more comprehensive and the available data more complete. As a result, the number and composition of the components for many countries varies across time.
- This presents a problem similar to that confronted when calculating GDP or a price index over time when we know that the underlying bundle of goods and services is changing from one year to another.
- In order to correct for this problem and assure comparability across time, we have done the same thing that statisticians analyzing national income do: we have chain linked the data.
- Construction of the index published in Economic Freedom of the World is based on three important methodological principles.
- First, objective components are always preferred to those that involve surveys or value judgments. Given the multidimensional nature of economic freedom and the importance of legal and regulatory elements, it is sometimes necessary to use data based on surveys, expert panels, and generic case studies.
- Hong Kong and Singapore, once again, occupy the top two positions. Next comes New Zealand and Switzerland, two countries almost always in the top five.
- Five countries—Canada, Georgia, Ireland, Mauritius, and United Arab Emirates— are tied for fifth place. Australia and United Kingdom conclude the top ten with a tie.
- The rankings of some other major countries are the United States (16th), Germany (30th), Japan (tied for 40th), South Korea (tied for 42nd), France (tied for 57th), Italy (69th), Mexico (tied for 88th), Russia (tied for 102nd), India (112th), China (tied for 113th), and Brazil (124th).
- The 10 lowest-rated countries are: Iran, Algeria, Chad, Guinea, Angola, Central African Republic, Argentina, Republic of Congo, Libya, and lastly Venezuela
India has slipped by 10 positions to 112th, as it “fared badly” across categories including legal system and regulation, according to the Economic Freedom of the World: 2016 Annual Report.
Economic Freedom Index:-
Economic freedom is the fundamental right of every human to control his or her own labor and property. In an economically free society, individuals are free to work, produce, consume, and invest in any way they please.
Index – 2016:-
India has fared badly in all categories i.e. legal system and property rights (86), sound money (130), freedom to trade internationally (144) and regulation (132) except the size of the government (8).
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