General Affairs
Farewell, Atal Bihari Vajpayee. Iconic Leader Cremated With State Honours
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Former prime minister Atal Bihari Vajpayee, a titan in Indian politics, was given the highest national send-off today with politicians across the spectrum and foreign dignitaries attending his funeral held with state honours on the banks of the river Yamuna in Delhi. Mr Vajpayee's foster daughter Namita Bhattacharya lit the funeral pyre as a 21-gun salute went off at the Smriti Sthal.
A sea of people had followed Mr Vajpayee's funeral procession from the headquarters of the ruling BJP, the party he helped form in 1980. Prime Minister Narendra Modi walked the entire four km stretch behind the flower-decked gun carriage, along with other top BJP leaders and ministers.
A massive crowd chanted "long live Atal-ji" and showered rose petals on the glass casket carrying the three-time prime minister, who died yesterday after a long illness.
"I am speechless, numb," PM Modi had said, expressing his grief. "It's like losing a father."
He surprised many today by joining the procession from the BJP office to the Smriti Sthal, which is located close to the memorials of former prime ministers Jawaharlal Nehru and Lal Bahadur Shastri.
Former prime minister Manmohan Singh, Congress president Rahul Gandhi and politicians from various parties attended the funeral. Foreign dignitaries like the King of Bhutan and Afghanistan's Hamid Karzai were also present.
The former PM's body was kept overnight at his bungalow on Krishna Menon road, where he spent the last few years away from public life. From there, it was taken with military honours to the BJP office. The BJP patriarch could never visit the new, sprawling headquarters symbolic of the rise of the party he nurtured for decades.
Mr Vajpayee, who ruled the country thrice in the 1990s, had retreated from politics over the last few years because of his health.
Prime Minister Narendra Modi, several ministers and top BJP leaders were present as Mr Vajpayee's body, in a glass casket draped in the national flag, was carried into the building by soldiers.
It was widely reported that the former prime minister had a stroke in 2009 that severely affected his ability to speak and confined him to his home.
Mr Vajpayee was the first non-Congress leader since India's independence in 1947 to complete an entire term in office as head of a BJP-led ruling alliance between March 1998 and May 2004. He was admired by friends and rivals alike for his rich oratory, his poetic jibes and his statesmanship.
A sea of people had followed Mr Vajpayee's funeral procession from the headquarters of the ruling BJP, the party he helped form in 1980. Prime Minister Narendra Modi walked the entire four km stretch behind the flower-decked gun carriage, along with other top BJP leaders and ministers.
A massive crowd chanted "long live Atal-ji" and showered rose petals on the glass casket carrying the three-time prime minister, who died yesterday after a long illness.
"I am speechless, numb," PM Modi had said, expressing his grief. "It's like losing a father."
He surprised many today by joining the procession from the BJP office to the Smriti Sthal, which is located close to the memorials of former prime ministers Jawaharlal Nehru and Lal Bahadur Shastri.
Former prime minister Manmohan Singh, Congress president Rahul Gandhi and politicians from various parties attended the funeral. Foreign dignitaries like the King of Bhutan and Afghanistan's Hamid Karzai were also present.
The former PM's body was kept overnight at his bungalow on Krishna Menon road, where he spent the last few years away from public life. From there, it was taken with military honours to the BJP office. The BJP patriarch could never visit the new, sprawling headquarters symbolic of the rise of the party he nurtured for decades.
Mr Vajpayee, who ruled the country thrice in the 1990s, had retreated from politics over the last few years because of his health.
Prime Minister Narendra Modi, several ministers and top BJP leaders were present as Mr Vajpayee's body, in a glass casket draped in the national flag, was carried into the building by soldiers.
It was widely reported that the former prime minister had a stroke in 2009 that severely affected his ability to speak and confined him to his home.
Mr Vajpayee was the first non-Congress leader since India's independence in 1947 to complete an entire term in office as head of a BJP-led ruling alliance between March 1998 and May 2004. He was admired by friends and rivals alike for his rich oratory, his poetic jibes and his statesmanship.
Foreign Dignitaries Arrive To Pay Homage To Atal Bihari Vajpayee
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Bhutanese King Jigme Khesar Namgyel Wangchuck and Bangladesh Foreign Minister Abul Hassan Mahmood Ali arrived in New Delhi today to pay their last respects to former prime minister Atal Bihari Vajpayee, who passed away yesterday at the age of 93.
Sri Lanka's Acting Foreign Minister Lakshman Kiriella, Nepal's Foreign Minister Pradeep Gyawali, Pakistan's acting information minister Syed Zafar Ali and a senior minister from Afghanistan are also expected to arrive here later today to pay their respects to Mr Vajpayee, official sources said.
Bangladesh remembers Mr Vajpayee for his contribution to the Liberation War and the strong support he extended to the people of Bangladesh, Mr Ali told reporters after his arrival in New Delhi.
Mr Vajpayee's cortege made its way through the city to reach the BJP headquarters this morning, where leaders gathered in large numbers to pay homage to the departed leader.
The last rites of the BJP leader will be performed at the Rashtriya Smriti Sthal at 4 pm.
Sri Lanka's Acting Foreign Minister Lakshman Kiriella, Nepal's Foreign Minister Pradeep Gyawali, Pakistan's acting information minister Syed Zafar Ali and a senior minister from Afghanistan are also expected to arrive here later today to pay their respects to Mr Vajpayee, official sources said.
Bangladesh remembers Mr Vajpayee for his contribution to the Liberation War and the strong support he extended to the people of Bangladesh, Mr Ali told reporters after his arrival in New Delhi.
Mr Vajpayee's cortege made its way through the city to reach the BJP headquarters this morning, where leaders gathered in large numbers to pay homage to the departed leader.
The last rites of the BJP leader will be performed at the Rashtriya Smriti Sthal at 4 pm.
On Video, Navy Rescue Of Kerala Pregnant Woman Whose Water Broke
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The nightmare for a pregnant woman, stuck on the rooftop of her house in flood-hit Kerala, ended when an Indian Navy's chopper reached to rescue her. The woman's water broke when she was rescued. A doctor was first lowered from the chopper to examine her condition before she was airlifted and taken to INHS Sanjivani hospital in Kerala's Kochi.
In a video posted by the Indian Navy's official handle, the pregnant woman wearing a harness can be seen being airlifted:
"A pregnant lady with water bag leaking has been airlifted and evacuated to Sanjivani. Doctor was lowered to assess the lady. Operation successful," Spokesperson Navy tweeted.
A pregnant lady with water bag leaking has been airlifted and evacuated to Sanjivani. Doctor was lowered to assess the lady. Operation successful #OpMadad#KeralaFloodRelief#KeralaFloods2018pic.twitter.com/bycGXEBV8q
- SpokespersonNavy (@indiannavy) August 17, 2018
The rescue operations are in full swing in flood-hit Kerala. Around 3,000 people were rescued from Ernakulam and Pathanamthitta districts on Thursday. An alert has been issued in Alappuzha, Ernakulam, Thrissur and Pathanamthitta. More boats and four choppers have been deployed in Chalakudy, Chenganoor and Pathanamthitta.
Chief Minister Pinarayi Vijayan said that over 164 people lost their lives since torrential rains started on August 8. Prime Minister Narendra Modi will visit the state in the evening to conduct an aerial survey. The military has sent more boats and aircraft to rescue people stuck in rain-ravaged areas of the state which have been completely cut off due to floods.
Kerala has received heaviest rains and floods since 1924 causing massive destruction and leaving more than 70,000 people in relief camps. The damage to crops and properties has been estimated to be over Rs. 8,000 crore.
The nightmare for a pregnant woman, stuck on the rooftop of her house in flood-hit Kerala, ended when an Indian Navy's chopper reached to rescue her. The woman's water broke when she was rescued. A doctor was first lowered from the chopper to examine her condition before she was airlifted and taken to INHS Sanjivani hospital in Kerala's Kochi.In a video posted by the Indian Navy's official handle, the pregnant woman wearing a harness can be seen being airlifted:
"A pregnant lady with water bag leaking has been airlifted and evacuated to Sanjivani. Doctor was lowered to assess the lady. Operation successful," Spokesperson Navy tweeted.
A pregnant lady with water bag leaking has been airlifted and evacuated to Sanjivani. Doctor was lowered to assess the lady. Operation successful #OpMadad#KeralaFloodRelief#KeralaFloods2018pic.twitter.com/bycGXEBV8q
- SpokespersonNavy (@indiannavy) August 17, 2018
The rescue operations are in full swing in flood-hit Kerala. Around 3,000 people were rescued from Ernakulam and Pathanamthitta districts on Thursday. An alert has been issued in Alappuzha, Ernakulam, Thrissur and Pathanamthitta. More boats and four choppers have been deployed in Chalakudy, Chenganoor and Pathanamthitta.
Chief Minister Pinarayi Vijayan said that over 164 people lost their lives since torrential rains started on August 8. Prime Minister Narendra Modi will visit the state in the evening to conduct an aerial survey. The military has sent more boats and aircraft to rescue people stuck in rain-ravaged areas of the state which have been completely cut off due to floods.
Kerala has received heaviest rains and floods since 1924 causing massive destruction and leaving more than 70,000 people in relief camps. The damage to crops and properties has been estimated to be over Rs. 8,000 crore.
4,000 People Moved To Safety, 51 Teams In Kerala: Disaster Relief Force
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The National Disaster Response Force (NDRF) said today it has moved more than 4,000 people to safer places and rescued another 44 from flooded areas in Kerala during the past nine days, even as its personnel struggle to reach remote areas cut off due to landslides.
Kerala has been severely hit by monsoon rains and rivers and dam reservoirs are overflowing, inundating a large part of the state. At least 100 people died yesterday in rain-related incidents, State Disaster Management Authority officials said in Thiruvananthapuram.
A National Disaster Response Force spokesperson said in New Delhi that its 51 teams, out of the total 53 deployed, are operating on the ground. Two more teams will reach Kerala soon, he added.
"So far, over 4,319 persons have been evacuated and 44 people have been rescued by our teams since their deployment in Kerala. Operations are still going on," he said.
The rescue and evacuations operations by the NDRF entered its ninth day today.
The spokesperson said despite heavy rains and unfavourable weather, every effort was being made by NDRF responders to "access and reach" every person in distress.
A total of 173 people have died in the state since the second spell of monsoon fury began on August 8.
Prime Minister Narendra Modi will reach Kerala tonight after the funeral of former prime minister Atal Bihari Vajpayee. He will undertake an aerial survey of flood-hit areas tomorrow.
The National Crisis Management Committee, the apex body to handle emergency situations, also met for the second time today and directed agencies to mobilise additional resources.
Kerala has been severely hit by monsoon rains and rivers and dam reservoirs are overflowing, inundating a large part of the state. At least 100 people died yesterday in rain-related incidents, State Disaster Management Authority officials said in Thiruvananthapuram.
A National Disaster Response Force spokesperson said in New Delhi that its 51 teams, out of the total 53 deployed, are operating on the ground. Two more teams will reach Kerala soon, he added.
"So far, over 4,319 persons have been evacuated and 44 people have been rescued by our teams since their deployment in Kerala. Operations are still going on," he said.
The rescue and evacuations operations by the NDRF entered its ninth day today.
The spokesperson said despite heavy rains and unfavourable weather, every effort was being made by NDRF responders to "access and reach" every person in distress.
A total of 173 people have died in the state since the second spell of monsoon fury began on August 8.
Prime Minister Narendra Modi will reach Kerala tonight after the funeral of former prime minister Atal Bihari Vajpayee. He will undertake an aerial survey of flood-hit areas tomorrow.
The National Crisis Management Committee, the apex body to handle emergency situations, also met for the second time today and directed agencies to mobilise additional resources.
United States Sanctions Myanmar Military Commanders Over Rohingya Abuses
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The US government on Friday hit four Myanmar military commanders and two military units with punitive sanctions, accusing them of "serious human rights abuses" and "ethnic cleansing" in violently expelling minority Rohingya from their homes.
Military and border guard commanders Aung Kyaw Zaw, Khin Maung Soe, Khin Hlaing, and Thura San Lwin were accused of leading violent campaigns against the Muslim Rohingya in Rakhine state as well as minorities in Kachin and Shan states.
"Burmese security forces have engaged in violent campaigns against ethnic minority communities across Burma, including ethnic cleansing, massacres, sexual assault, extrajudicial killings, and other serious human rights abuses," said Sigal Mandelker, Under Secretary for Terrorism and Financial Intelligence in the US Treasury, which announced the sanctions.
The US Treasury said the sanctions on individuals were meant as a warning to security forces to cease abuses of ethnic and religious minorities and to respect their rights.
The sanctions, which seek to lock those named out of global financial and commercial networks and freeze any overseas assets they have, were brought under the Global Magnitsky Human Rights Accountability Act, a US law originally targeting Russia but now expanded to punish rights abusers worldwide.
Aung Kyaw Zaw was singled out for having presided over the operations that drove some 700,000 Rohingya from their homes in Rakhine state, in southwest Myanmar, and into neighboring Bangladesh since 2016.
The campaign has been marked by numerous extrajudicial killings, rape and burning of villages by security forces.
Khin Maung Soe was in charge of a command which participated in a massacre of Rohingya on August 27, 2017 in Maung Nu, where soldiers "reportedly beat, sexually assaulted and summarily executed or otherwise killed dozens of Rohingya villagers," the Treasury said.
Thura San Lwin was the leader of the Border Guard Police, allegedly responsible for extrajudicial killings, sexual violence and assault against various minorities.
And Khin Hlaing was singled out for abuse of Kachin, Shan and Chinese minorities who in November 2016 were forced to serve as human shields for his military unit in battles with militias.
The two military units also sanctioned for involvement in those abuses were the 33rd Light Infantry Division, which participated in Rohingya abuses, and the 99th Light Infantry Division, which was led by Khin Hlaing.
"There must be justice for the victims and those who work to uncover these atrocities, with those responsible held to account for these abhorrent crimes," said Mandelker.
"We will continue to systematically expose and bring accountability to human rights abusers in this region and many others and greatly appreciate the efforts of civil society who are doing the same."
Military and border guard commanders Aung Kyaw Zaw, Khin Maung Soe, Khin Hlaing, and Thura San Lwin were accused of leading violent campaigns against the Muslim Rohingya in Rakhine state as well as minorities in Kachin and Shan states.
"Burmese security forces have engaged in violent campaigns against ethnic minority communities across Burma, including ethnic cleansing, massacres, sexual assault, extrajudicial killings, and other serious human rights abuses," said Sigal Mandelker, Under Secretary for Terrorism and Financial Intelligence in the US Treasury, which announced the sanctions.
The US Treasury said the sanctions on individuals were meant as a warning to security forces to cease abuses of ethnic and religious minorities and to respect their rights.
The sanctions, which seek to lock those named out of global financial and commercial networks and freeze any overseas assets they have, were brought under the Global Magnitsky Human Rights Accountability Act, a US law originally targeting Russia but now expanded to punish rights abusers worldwide.
Aung Kyaw Zaw was singled out for having presided over the operations that drove some 700,000 Rohingya from their homes in Rakhine state, in southwest Myanmar, and into neighboring Bangladesh since 2016.
The campaign has been marked by numerous extrajudicial killings, rape and burning of villages by security forces.
Khin Maung Soe was in charge of a command which participated in a massacre of Rohingya on August 27, 2017 in Maung Nu, where soldiers "reportedly beat, sexually assaulted and summarily executed or otherwise killed dozens of Rohingya villagers," the Treasury said.
Thura San Lwin was the leader of the Border Guard Police, allegedly responsible for extrajudicial killings, sexual violence and assault against various minorities.
And Khin Hlaing was singled out for abuse of Kachin, Shan and Chinese minorities who in November 2016 were forced to serve as human shields for his military unit in battles with militias.
The two military units also sanctioned for involvement in those abuses were the 33rd Light Infantry Division, which participated in Rohingya abuses, and the 99th Light Infantry Division, which was led by Khin Hlaing.
"There must be justice for the victims and those who work to uncover these atrocities, with those responsible held to account for these abhorrent crimes," said Mandelker.
"We will continue to systematically expose and bring accountability to human rights abusers in this region and many others and greatly appreciate the efforts of civil society who are doing the same."
Business Affairs
How Sensex performed under different prime ministers of India
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Today nation is mourning the loss of former Prime Minister Atal Bihari Vajpayee. On October 13, 1999, he took charge as Prime Minister of India for the third time, as the head of a new coalition government, National Democratic Alliance (NDA). He was the Prime Minister for a short period of 13 days in 1996 and then again for 13 months in 1998. The former Prime Minister is credited for bringing in several economic reforms in the country. He was the force behind setting up an institutional framework to deal with bad loans in the banking system.
Remembering him as an economic reformist, let's look at how the markets performed under him and other former Prime Ministers of India.
Though the 30-stock index cannot mirror the efforts these heads of the country have put together in building the nation, but it can help us in gauging the market perception during their tenure, as their policies and reforms are one of the deciding factors for the market's movement.
We have analysed the data since 1979 and looked at the performance of the markets during the tenures of different prime ministers of the country. Since then, only five of them have completed their term. The assassination of Indira Gandhi in 1984, led to a tragic end to her tenure. Of these five, markets gave the lowest returns of around 30 per cent during Vajpayee's tenure, March 1998 to May 2004.
Sensex delivered the highest return of around 181 per cent, during former prime mister P. V. Narasimha Rao's tenure. The top bourse jumped from 1,361.7 points on June 21, 2017 to 3,823.1 points on May 16, 1996. This was closely followed by Rajiv Gandhi's tenure, when the markets scaled around 171 per cent. India's fourteenth Prime Minister, Dr. Manmohan Singh served for a decade, during which the Sensex scaled from 5,000 points to 24,000 points. During the first short stint of Atal Bihari Vajpayee as the prime minister, from May 16-June 1, 1996 markets lost around 3 per cent. It was the only decline, witnessed in any prime minister's tenure since 1979. The current Prime Minister Narendra Modi's tenure till date has seen returns of around 53 per cent.
Remembering him as an economic reformist, let's look at how the markets performed under him and other former Prime Ministers of India.
Though the 30-stock index cannot mirror the efforts these heads of the country have put together in building the nation, but it can help us in gauging the market perception during their tenure, as their policies and reforms are one of the deciding factors for the market's movement.
We have analysed the data since 1979 and looked at the performance of the markets during the tenures of different prime ministers of the country. Since then, only five of them have completed their term. The assassination of Indira Gandhi in 1984, led to a tragic end to her tenure. Of these five, markets gave the lowest returns of around 30 per cent during Vajpayee's tenure, March 1998 to May 2004.
Sensex delivered the highest return of around 181 per cent, during former prime mister P. V. Narasimha Rao's tenure. The top bourse jumped from 1,361.7 points on June 21, 2017 to 3,823.1 points on May 16, 1996. This was closely followed by Rajiv Gandhi's tenure, when the markets scaled around 171 per cent. India's fourteenth Prime Minister, Dr. Manmohan Singh served for a decade, during which the Sensex scaled from 5,000 points to 24,000 points. During the first short stint of Atal Bihari Vajpayee as the prime minister, from May 16-June 1, 1996 markets lost around 3 per cent. It was the only decline, witnessed in any prime minister's tenure since 1979. The current Prime Minister Narendra Modi's tenure till date has seen returns of around 53 per cent.
PSBs collectively post loss of Rs 16,600 crore in June quarter
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The last quarter of the previous fiscal was a disaster for the 21 state-owned banks, with only two of them reporting a net profit - Vijaya Bank and Indian Bank. The rest of the public sector banks (PSBs) had collectively posted a net loss of over Rs 87,000 crore.
The good news is that things have improved significantly in the April-June (Q1) quarter of this fiscal, with seven PSBs posting a profit. Moreover, the overall non-productive asset (NPA) growth rate is reportedly slowing with the biggest bad loan accounts undergoing insolvency resolution. But that does not mean that the sector is out of the woods yet.
According to The Economic Times, collective losses of the PSBs in Q1FY19 have jumped over 50 times against the corresponding period last year on the back of increased provisioning for NPAs. Lower trading income and an uptick in mark-to-market losses due to hardening of bond yields further weighed down their bottomlines.
As per data compiled from regulatory filings, the PSBs collectively posted a loss of Rs 16,600 crore in the last quarter, up from Rs 307 crore a year earlier. Back then, more than half the state-run banks (12) had been in the green.
Meanwhile, gross NPAs have exceeded Rs 8.5 lakh crore, up 19% year-on-year, while total provision for NPAs jumped 28% (y-o-y) to Rs 51,500 crore.
"We believe that the NPAs are close to peaking and we might see the level of NPAs coming down by the end of this year," Karthik Srinivasan, group head, financial sector ratings at ICRA, told the daily. "The RBI has set timelines that the NCLT accounts should be resolved within 6 to 9 months. Even if we account for a delay here they should reach some sort of resolution by the end of the financial year."
Take the scam-hit Punjab National Bank for instance. The bank's recovery of more than Rs 7,700 crore in bad loans during the first quarter in the current fiscal has surpassed the total amount it recovered in the entire 2017-18 financial year. "In the first quarter itself, two-three big accounts have been resolved. As a result, the bank has got over Rs 3,000 crore only through the resolution process," PNB Managing Director Sunil Mehta announced last month.
PNB is not the only one. According to Financial Services Secretary Rajiv Kumar, banks have made recovery of Rs 36,551 crore during the first quarter registering a 49% growth over the last fiscal.
Citing experts, the report added that slippages are improving on a quarter-to-quarter basis - although they remain elevated in absolute terms. All in all, bankers seem to be cautiously optimistic. "In September, we intend to further improve the provision coverage ratio so that from December there would be no looking back and there will be no hangover of past credit cost," SBI chairman Rajnish Kumar told the daily.
But things are yet to pick up among the 11 banks under the RBI's under the Prompt Corrective Action (PCA) framework, including IDBI Bank, Corporation Bank and Allahabad Bank. According to the report, they are yet to show material improvement in operating performance, especially in terms of asset quality.
Nonetheless, the Financial Services Secretary is confident that the banks will come out of PCA in this fiscal itself. He also pointed out that operating profit of the PSBs has risen by 11.5% to Rs 36,632 crore in Q1 while losses fell 73.5% on quarter-on-quarter basis.
According to him, NPAs have been by and large recognised, provisioning by and large made, and the recoveries are on its course. "The resolve of government is extremely clear that every stakeholder has to be responsible. Those who are not prudently behaving will have to face the consequences," he added.
The good news is that things have improved significantly in the April-June (Q1) quarter of this fiscal, with seven PSBs posting a profit. Moreover, the overall non-productive asset (NPA) growth rate is reportedly slowing with the biggest bad loan accounts undergoing insolvency resolution. But that does not mean that the sector is out of the woods yet.
According to The Economic Times, collective losses of the PSBs in Q1FY19 have jumped over 50 times against the corresponding period last year on the back of increased provisioning for NPAs. Lower trading income and an uptick in mark-to-market losses due to hardening of bond yields further weighed down their bottomlines.
As per data compiled from regulatory filings, the PSBs collectively posted a loss of Rs 16,600 crore in the last quarter, up from Rs 307 crore a year earlier. Back then, more than half the state-run banks (12) had been in the green.
Meanwhile, gross NPAs have exceeded Rs 8.5 lakh crore, up 19% year-on-year, while total provision for NPAs jumped 28% (y-o-y) to Rs 51,500 crore.
"We believe that the NPAs are close to peaking and we might see the level of NPAs coming down by the end of this year," Karthik Srinivasan, group head, financial sector ratings at ICRA, told the daily. "The RBI has set timelines that the NCLT accounts should be resolved within 6 to 9 months. Even if we account for a delay here they should reach some sort of resolution by the end of the financial year."
Take the scam-hit Punjab National Bank for instance. The bank's recovery of more than Rs 7,700 crore in bad loans during the first quarter in the current fiscal has surpassed the total amount it recovered in the entire 2017-18 financial year. "In the first quarter itself, two-three big accounts have been resolved. As a result, the bank has got over Rs 3,000 crore only through the resolution process," PNB Managing Director Sunil Mehta announced last month.
PNB is not the only one. According to Financial Services Secretary Rajiv Kumar, banks have made recovery of Rs 36,551 crore during the first quarter registering a 49% growth over the last fiscal.
Citing experts, the report added that slippages are improving on a quarter-to-quarter basis - although they remain elevated in absolute terms. All in all, bankers seem to be cautiously optimistic. "In September, we intend to further improve the provision coverage ratio so that from December there would be no looking back and there will be no hangover of past credit cost," SBI chairman Rajnish Kumar told the daily.
But things are yet to pick up among the 11 banks under the RBI's under the Prompt Corrective Action (PCA) framework, including IDBI Bank, Corporation Bank and Allahabad Bank. According to the report, they are yet to show material improvement in operating performance, especially in terms of asset quality.
Nonetheless, the Financial Services Secretary is confident that the banks will come out of PCA in this fiscal itself. He also pointed out that operating profit of the PSBs has risen by 11.5% to Rs 36,632 crore in Q1 while losses fell 73.5% on quarter-on-quarter basis.
According to him, NPAs have been by and large recognised, provisioning by and large made, and the recoveries are on its course. "The resolve of government is extremely clear that every stakeholder has to be responsible. Those who are not prudently behaving will have to face the consequences," he added.
Railways may invest Rs 44,000 crore on West Bengal-Andhra Pradesh freight corridor
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In June, Railway Minister Piyush Goyal had declared a target of doubling the national transporter's revenue to Rs 4 lakh crore by 2025. One of the ways he hopes to achieve that is by enhancing freight capacity since it already accounts for 65 per cent of its total revenues.
In fact, the buzz is that the Indian Railways wants to increase its share of total freight movement from 33 per cent to 45 per cent. No wonder it is now looking beyond the 3,300-km long eastern and western freight corridors currently being constructed.
According to The Economic Times, the Indian Railways plans to invest Rs 44,000 crore to build a 1,100-km greenfield freight corridor along the country's east coast to connect Kharagpur in West Bengal with Vijaywada in Andhra Pradesh. In other words, this proposed corridor - likely to be announced in the budget proposal for 2019-20 - will link up the mineral-rich areas of the country with industries in the south and is expected to carry about 200 million tonnes of freight per annum.
"There is very heavy traffic on this route. The work on the proposal is currently going on," Anurag Sachan, managing director at Dedicated Freight Corridor Corporation (DFCC), told the daily, adding, "We will be proposing funding from multilateral agencies along with some equity from Indian Railways for the project."
However, before the DFCC turns its attention to this corridor, it has to deliver the eastern and the western corridors, which have missed several deadlines. To remind you, the eastern one runs from Ludhiana, Punjab, to West Bengal's Dankuni, totalling 1,856 km. Meanwhile, the western corridor links Dadri, near Delhi, to Jawahar Lal Nehru Port, Mumbai (1,504 km).
A source in the railway ministry had told PTI after a review meeting in May that the entire project, being constructed at the cost of a whopping Rs 81,000 crore, would be completed by March 31, 2020. Incidentally, this is India's first mega railway project since Independence.
The report added that the first phase of both corridors - 432 km of the western corridor and 343 km of the eastern one - is likely to be operational by the end of the current fiscal itself.
The western corridor is being funded by Japan International Corporation Agency while the eastern corridor from is being partly funded by the World Bank.
When ready, these dedicated corridors would ease the burden of the existing railway network and strengthen the economic backbone of the country. Freight trains on these corridors will run at 100 kmph as against the current maximum speed of 75 kmph on Indian railway tracks. The average speed of freight trains will also increase from existing 26 kmph to 70 kmph. This will not only significantly reduce the travel time between Delhi and Mumbai and Delhi-Howrah, the country's most congested rail routes, but also allow the Railways to run more trains.
And, of course, freight capacity will shoot up. The daily reports that once operational, these corridors will increase the national transporter freight carrying capacity to over 2,000 million tonnes, up around 66% from the existing 1,200 million tonnes.
"It will also lead to reduction in cost of freight transportation," added Sachan. After all, as the Railways adds more capacity, its freight rates will come down and that, in turn, will increase volumes.
In fact, the buzz is that the Indian Railways wants to increase its share of total freight movement from 33 per cent to 45 per cent. No wonder it is now looking beyond the 3,300-km long eastern and western freight corridors currently being constructed.
According to The Economic Times, the Indian Railways plans to invest Rs 44,000 crore to build a 1,100-km greenfield freight corridor along the country's east coast to connect Kharagpur in West Bengal with Vijaywada in Andhra Pradesh. In other words, this proposed corridor - likely to be announced in the budget proposal for 2019-20 - will link up the mineral-rich areas of the country with industries in the south and is expected to carry about 200 million tonnes of freight per annum.
"There is very heavy traffic on this route. The work on the proposal is currently going on," Anurag Sachan, managing director at Dedicated Freight Corridor Corporation (DFCC), told the daily, adding, "We will be proposing funding from multilateral agencies along with some equity from Indian Railways for the project."
However, before the DFCC turns its attention to this corridor, it has to deliver the eastern and the western corridors, which have missed several deadlines. To remind you, the eastern one runs from Ludhiana, Punjab, to West Bengal's Dankuni, totalling 1,856 km. Meanwhile, the western corridor links Dadri, near Delhi, to Jawahar Lal Nehru Port, Mumbai (1,504 km).
A source in the railway ministry had told PTI after a review meeting in May that the entire project, being constructed at the cost of a whopping Rs 81,000 crore, would be completed by March 31, 2020. Incidentally, this is India's first mega railway project since Independence.
The report added that the first phase of both corridors - 432 km of the western corridor and 343 km of the eastern one - is likely to be operational by the end of the current fiscal itself.
The western corridor is being funded by Japan International Corporation Agency while the eastern corridor from is being partly funded by the World Bank.
When ready, these dedicated corridors would ease the burden of the existing railway network and strengthen the economic backbone of the country. Freight trains on these corridors will run at 100 kmph as against the current maximum speed of 75 kmph on Indian railway tracks. The average speed of freight trains will also increase from existing 26 kmph to 70 kmph. This will not only significantly reduce the travel time between Delhi and Mumbai and Delhi-Howrah, the country's most congested rail routes, but also allow the Railways to run more trains.
And, of course, freight capacity will shoot up. The daily reports that once operational, these corridors will increase the national transporter freight carrying capacity to over 2,000 million tonnes, up around 66% from the existing 1,200 million tonnes.
"It will also lead to reduction in cost of freight transportation," added Sachan. After all, as the Railways adds more capacity, its freight rates will come down and that, in turn, will increase volumes.
Sensex rises 284 points, Nifty closes at 11,470 on positive global cues
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The Sensex and Nifty closed higher in trade today taking cues from global markets which rose on news China was preparing to resume trade discussions with the US, the first negotiations in more than a month. While the Sensex closed 284 points higher at 37,947, Nifty logged a gain of 85 points to close at 11,470 level, a record high.
Top Sensex gainers were YES Bank (3.76%), Vedanta Ltd (3.09%), and SBI (3.02%).
Of 30 Sensex stocks, 20 ended in the green.
Top Sensex losers were Hero MotoCorp (1.14%), ONGC (0.61%), and Maruti (0.58%).
"We are seeing some rotational moves today. Initially, the top five or seven contributors were leading the gains and now other large-cap stocks are also participating," said Rusmik Oza, senior vice-president and head of fundamental research at Kotak Securities.
Market breadth was positive with 1631 stocks closing higher compared to 1075 stocks falling on the BSE. 156 stocks were unchanged.
Money and bond markets were closed today on account of Parsi new year.
Rahul Sharma, senior Technical Research Analyst at Equity99 said, "For fourth straight week, Nifty closed in the green at new highs. On technical front, Nifty is in overbought zone. The benchmark indices settled higher on Friday taking cues from their Asian peers. Now, on weekly basis NIFTY has strong support at 11415 level, break will take it to 11366-11340 level. Keep strict stop loss of 11340 for buys. On the upper side NIFTY will face hurdle at 11500 level which is also psychological hurdle, cross over will create huge short covering up to 11550-11575 levels."
Midcaps and small cap stocks contributed to the gains with the BSE midcap index rising 0.88% or 142 points to 16,306 and small cap index gaining 0.94% or 156.66 points to 16,866 level.
Banking, metal and consumer durables stocks led the charge with their BSE indices rising 398 points, 216 points and 194 points, respectively.
Global markets
Asian shares made moderate gains early Friday after US stocks jumped on news China is preparing to resume trade discussions with the US, the first negotiations in more than a month.
Britain's FTSE 100 gained 0.3 percent to 7,575.97 and the CAC 40 in France added 0.2 percent to 5,360.68, while Germany's DAX edged 0.1 percent lower to 12,229.01. The future contract for the Dow Jones industrial average rose 0.1 percent while the contract for the S&P 500 was flat.
Japan's Nikkei 225 index added 0.4 percent to 22,270.38, while the Shanghai Composite index shed 1.3 percent to 2,668.97. Hong Kong's Hang Seng gained 0.4 percent to 27,213.41 and India's Sensex jumped 0.8 percent to 37,957.33. In South Korea, the Kospi gained 0.3 percent to 2,247.05. Australia's S&P ASX 200 picked up 0.2 percent to 6,339.20. Shares were higher in Taiwan, Thailand and Singapore but fell in Malaysia.
Top Sensex gainers were YES Bank (3.76%), Vedanta Ltd (3.09%), and SBI (3.02%).
Of 30 Sensex stocks, 20 ended in the green.
Top Sensex losers were Hero MotoCorp (1.14%), ONGC (0.61%), and Maruti (0.58%).
"We are seeing some rotational moves today. Initially, the top five or seven contributors were leading the gains and now other large-cap stocks are also participating," said Rusmik Oza, senior vice-president and head of fundamental research at Kotak Securities.
Market breadth was positive with 1631 stocks closing higher compared to 1075 stocks falling on the BSE. 156 stocks were unchanged.
Money and bond markets were closed today on account of Parsi new year.
Rahul Sharma, senior Technical Research Analyst at Equity99 said, "For fourth straight week, Nifty closed in the green at new highs. On technical front, Nifty is in overbought zone. The benchmark indices settled higher on Friday taking cues from their Asian peers. Now, on weekly basis NIFTY has strong support at 11415 level, break will take it to 11366-11340 level. Keep strict stop loss of 11340 for buys. On the upper side NIFTY will face hurdle at 11500 level which is also psychological hurdle, cross over will create huge short covering up to 11550-11575 levels."
Midcaps and small cap stocks contributed to the gains with the BSE midcap index rising 0.88% or 142 points to 16,306 and small cap index gaining 0.94% or 156.66 points to 16,866 level.
Banking, metal and consumer durables stocks led the charge with their BSE indices rising 398 points, 216 points and 194 points, respectively.
Global markets
Asian shares made moderate gains early Friday after US stocks jumped on news China is preparing to resume trade discussions with the US, the first negotiations in more than a month.
Britain's FTSE 100 gained 0.3 percent to 7,575.97 and the CAC 40 in France added 0.2 percent to 5,360.68, while Germany's DAX edged 0.1 percent lower to 12,229.01. The future contract for the Dow Jones industrial average rose 0.1 percent while the contract for the S&P 500 was flat.
Japan's Nikkei 225 index added 0.4 percent to 22,270.38, while the Shanghai Composite index shed 1.3 percent to 2,668.97. Hong Kong's Hang Seng gained 0.4 percent to 27,213.41 and India's Sensex jumped 0.8 percent to 37,957.33. In South Korea, the Kospi gained 0.3 percent to 2,247.05. Australia's S&P ASX 200 picked up 0.2 percent to 6,339.20. Shares were higher in Taiwan, Thailand and Singapore but fell in Malaysia.
Jet Airways stock rises on report airline in talks to raise funds
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The Jet Airways stock rose in early trade today amid a report that the cash-strapped airline was looking to raise funds. The stock rose as much as 2.9 percent to 308.90 compared to its previous close of 300.45 level. The stock has been gaining for the last two days and has risen 7.98% during the period. It is down 48.20% during the last one year and 63.22% since the beginning of this year.
A report by the Financial Express said the airline was in talks with non-banking financial companies to raise Rs 1,500 crore to Rs 2,000 crore against its forward sales. Hence, all the bookings done through credit cards will directly accrue to the concerned NBFC.
The airline which has debt of over Rs 11,000 crore from banks, had said on August 13 that it was looking at all options to raise funds.
"We have been evaluating various funding options to meet the liquidity requirements on priority," the airline had said in a statement after stock exchanges sought clarification.
Beginning August, the 25-year-old airline has been facing cash crunch after which it asked its senior management to take a 25 per cent pay cut and proposed an up to 25 per cent reduction in the wages of other employees, including engineers and pilots.
However, after protests by these categories of employees, the airline was forced to put the move on hold.
In a surprise move on August 9, 2018, the airline deferred announcement of its Q1 earnings after which its stock closed 8.39% or 25 points lower at 276.40 on the BSE.
Today, the airline said its board would meet on August 27 to approve financial results for the quarter ended June 30.
A report by the Financial Express said the airline was in talks with non-banking financial companies to raise Rs 1,500 crore to Rs 2,000 crore against its forward sales. Hence, all the bookings done through credit cards will directly accrue to the concerned NBFC.
The airline which has debt of over Rs 11,000 crore from banks, had said on August 13 that it was looking at all options to raise funds.
"We have been evaluating various funding options to meet the liquidity requirements on priority," the airline had said in a statement after stock exchanges sought clarification.
Beginning August, the 25-year-old airline has been facing cash crunch after which it asked its senior management to take a 25 per cent pay cut and proposed an up to 25 per cent reduction in the wages of other employees, including engineers and pilots.
However, after protests by these categories of employees, the airline was forced to put the move on hold.
In a surprise move on August 9, 2018, the airline deferred announcement of its Q1 earnings after which its stock closed 8.39% or 25 points lower at 276.40 on the BSE.
Today, the airline said its board would meet on August 27 to approve financial results for the quarter ended June 30.
General Awareness
1942-2005: A timeline of Atal Bihari Vajpayee's political career
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A prime minister for three times, a member of parliament for over four decades and a Bharat Ratna awardee, the poet-politician Atal Bihari Vajpayee's life and political career was strewn with achievements and important events, which have helped shaped the country's future today. Here is a timeline of the politician's career:
1942-1951: As a member of Rashtriya Swayamsevak Sangh, Atal Bihari Vajpayee was already politically active by the age of 16. He participated in the Quit India Movement in 1942 and was arrested with his brother for 23 days.
In 1951, he started working for Bharatiya Jana Sangh, a political wing of RSS.
1957: The year was a landmark in Vajpayee's career, as it marked his entry into the mainstream politics. In the Lok Sabha Elections that year, he contested from three seats --Lucknow, Mathura and Balrampur. While he lost in Mathura and Lucknow, he won in Balrampur and became a member of parliament.
1968: After the death of Jana Sangh co-founder Deendayal Upadhyaya in a train accident, Vajpayee took over the reins of the party and became the National President of the party.
1977: In 1975, Vajpayee was arrested along with other opposition leaders during the Emergency period imposed by then Prime Minister Indira Gandhi. Later, in 1977 after the emergency was withdrawn, Jan Sangh merged with other opposition parties to form Janata Party, solely to oppose the rule of Indian National Congress. In the general elections that year, Janata Party emerged as the victor and formed a government led by Morarji Desai, India's first non-Congress prime minister. Vajpayee became the Minister of External Affairs on his cabinet.
1980: In 1977, Janata Party was dissolved after Morarji Desai resigned as prime minister. In 1980, Vajpayee joined L.K. Advani, Bhairon Singh Shekhawat and his other RSS, Jan Sangh colleagues to form Bharatiya Janata Party (BJP) and became the party's first president.
1984: In the coming years, the party struggled and in fact in 1984 elections, BJP was left with only two seats in the Parliament. Vajpayee led the party during these years and supported the Ram Janmabhoomi Mandir Movement by RSS and Vishva Hindu Parishad (VHP).
1994: BJP came into prominence again after a good performance in Karnataka Assembly Elections in 1994. The party won 40 seats out of 224 seats in the polls. Later in 1995, in Maharashtra and Gujarat assembly elections, the party again showed a good performance and won 65 seats and 121 seats in the states. This brought back Vajpayee and BJP into political centre stage in the country.
1996: In the general elections this year, BJP had the majority 161 seats and Vajpayee became the prime minister of India. However, the party was unable to get support from other parties to get more than 200 seats to form the government and therefore resigned after 13 days.
1998: BJP came back into power in 1998. The National Democratic Alliance (NDA) was formed and Vajpayee became the prime minister again. This government was dissolved after Jayalalithaa-led AIADMK withdrew its support after 13 months and the government came down. Vajpayee's some of the most notable achievements, nuclear tests in Pokhran were conducted in this term; and Lahore summit, too, took place during this period.
1999: In his third and final term as the prime minister, Vajpayee served for the full five years. While his term took off again with another crisis -- the Kandahar Hijack in December 1999 -- going ahead he brought some reforms which would pave the way for country's growth. The attack on Parliament in 2001 was another crisis Vajpayee had to battle during this term but his reformatory projects such as -- National highway project, encouraging private sector and foreign investments, reducing the minimum government holding in PSBs, introduction of Asset Reconstruction Companies -- were applauded.
2004: Against the general consensus, BJP lost 2004 General Elections to Congress-led UPA. In fact, the 13th Lok Sabha had been dissolved before the full-term as the BJP was confident it would come back to power again. However, the party witnessed a crushing defeat and Vajpayee refused to be the leader of opposition taking the responsibility of the defeat. In 2005, he declared his retirement from politics.
A prime minister for three times, a member of parliament for over four decades and a Bharat Ratna awardee, the poet-politician Atal Bihari Vajpayee's life and political career was strewn with achievements and important events, which have helped shaped the country's future today. Here is a timeline of the politician's career:
1942-1951: As a member of Rashtriya Swayamsevak Sangh, Atal Bihari Vajpayee was already politically active by the age of 16. He participated in the Quit India Movement in 1942 and was arrested with his brother for 23 days.
In 1951, he started working for Bharatiya Jana Sangh, a political wing of RSS.
1957: The year was a landmark in Vajpayee's career, as it marked his entry into the mainstream politics. In the Lok Sabha Elections that year, he contested from three seats --Lucknow, Mathura and Balrampur. While he lost in Mathura and Lucknow, he won in Balrampur and became a member of parliament.
1968: After the death of Jana Sangh co-founder Deendayal Upadhyaya in a train accident, Vajpayee took over the reins of the party and became the National President of the party.
1977: In 1975, Vajpayee was arrested along with other opposition leaders during the Emergency period imposed by then Prime Minister Indira Gandhi. Later, in 1977 after the emergency was withdrawn, Jan Sangh merged with other opposition parties to form Janata Party, solely to oppose the rule of Indian National Congress. In the general elections that year, Janata Party emerged as the victor and formed a government led by Morarji Desai, India's first non-Congress prime minister. Vajpayee became the Minister of External Affairs on his cabinet.
1980: In 1977, Janata Party was dissolved after Morarji Desai resigned as prime minister. In 1980, Vajpayee joined L.K. Advani, Bhairon Singh Shekhawat and his other RSS, Jan Sangh colleagues to form Bharatiya Janata Party (BJP) and became the party's first president.
1984: In the coming years, the party struggled and in fact in 1984 elections, BJP was left with only two seats in the Parliament. Vajpayee led the party during these years and supported the Ram Janmabhoomi Mandir Movement by RSS and Vishva Hindu Parishad (VHP).
1994: BJP came into prominence again after a good performance in Karnataka Assembly Elections in 1994. The party won 40 seats out of 224 seats in the polls. Later in 1995, in Maharashtra and Gujarat assembly elections, the party again showed a good performance and won 65 seats and 121 seats in the states. This brought back Vajpayee and BJP into political centre stage in the country.
1996: In the general elections this year, BJP had the majority 161 seats and Vajpayee became the prime minister of India. However, the party was unable to get support from other parties to get more than 200 seats to form the government and therefore resigned after 13 days.
1998: BJP came back into power in 1998. The National Democratic Alliance (NDA) was formed and Vajpayee became the prime minister again. This government was dissolved after Jayalalithaa-led AIADMK withdrew its support after 13 months and the government came down. Vajpayee's some of the most notable achievements, nuclear tests in Pokhran were conducted in this term; and Lahore summit, too, took place during this period.
1999: In his third and final term as the prime minister, Vajpayee served for the full five years. While his term took off again with another crisis -- the Kandahar Hijack in December 1999 -- going ahead he brought some reforms which would pave the way for country's growth. The attack on Parliament in 2001 was another crisis Vajpayee had to battle during this term but his reformatory projects such as -- National highway project, encouraging private sector and foreign investments, reducing the minimum government holding in PSBs, introduction of Asset Reconstruction Companies -- were applauded.
2004: Against the general consensus, BJP lost 2004 General Elections to Congress-led UPA. In fact, the 13th Lok Sabha had been dissolved before the full-term as the BJP was confident it would come back to power again. However, the party witnessed a crushing defeat and Vajpayee refused to be the leader of opposition taking the responsibility of the defeat. In 2005, he declared his retirement from politics.
1942-1951: As a member of Rashtriya Swayamsevak Sangh, Atal Bihari Vajpayee was already politically active by the age of 16. He participated in the Quit India Movement in 1942 and was arrested with his brother for 23 days.
In 1951, he started working for Bharatiya Jana Sangh, a political wing of RSS.
1957: The year was a landmark in Vajpayee's career, as it marked his entry into the mainstream politics. In the Lok Sabha Elections that year, he contested from three seats --Lucknow, Mathura and Balrampur. While he lost in Mathura and Lucknow, he won in Balrampur and became a member of parliament.
1968: After the death of Jana Sangh co-founder Deendayal Upadhyaya in a train accident, Vajpayee took over the reins of the party and became the National President of the party.
1977: In 1975, Vajpayee was arrested along with other opposition leaders during the Emergency period imposed by then Prime Minister Indira Gandhi. Later, in 1977 after the emergency was withdrawn, Jan Sangh merged with other opposition parties to form Janata Party, solely to oppose the rule of Indian National Congress. In the general elections that year, Janata Party emerged as the victor and formed a government led by Morarji Desai, India's first non-Congress prime minister. Vajpayee became the Minister of External Affairs on his cabinet.
1980: In 1977, Janata Party was dissolved after Morarji Desai resigned as prime minister. In 1980, Vajpayee joined L.K. Advani, Bhairon Singh Shekhawat and his other RSS, Jan Sangh colleagues to form Bharatiya Janata Party (BJP) and became the party's first president.
1984: In the coming years, the party struggled and in fact in 1984 elections, BJP was left with only two seats in the Parliament. Vajpayee led the party during these years and supported the Ram Janmabhoomi Mandir Movement by RSS and Vishva Hindu Parishad (VHP).
1994: BJP came into prominence again after a good performance in Karnataka Assembly Elections in 1994. The party won 40 seats out of 224 seats in the polls. Later in 1995, in Maharashtra and Gujarat assembly elections, the party again showed a good performance and won 65 seats and 121 seats in the states. This brought back Vajpayee and BJP into political centre stage in the country.
1996: In the general elections this year, BJP had the majority 161 seats and Vajpayee became the prime minister of India. However, the party was unable to get support from other parties to get more than 200 seats to form the government and therefore resigned after 13 days.
1998: BJP came back into power in 1998. The National Democratic Alliance (NDA) was formed and Vajpayee became the prime minister again. This government was dissolved after Jayalalithaa-led AIADMK withdrew its support after 13 months and the government came down. Vajpayee's some of the most notable achievements, nuclear tests in Pokhran were conducted in this term; and Lahore summit, too, took place during this period.
1999: In his third and final term as the prime minister, Vajpayee served for the full five years. While his term took off again with another crisis -- the Kandahar Hijack in December 1999 -- going ahead he brought some reforms which would pave the way for country's growth. The attack on Parliament in 2001 was another crisis Vajpayee had to battle during this term but his reformatory projects such as -- National highway project, encouraging private sector and foreign investments, reducing the minimum government holding in PSBs, introduction of Asset Reconstruction Companies -- were applauded.
2004: Against the general consensus, BJP lost 2004 General Elections to Congress-led UPA. In fact, the 13th Lok Sabha had been dissolved before the full-term as the BJP was confident it would come back to power again. However, the party witnessed a crushing defeat and Vajpayee refused to be the leader of opposition taking the responsibility of the defeat. In 2005, he declared his retirement from politics.
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