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RBI Governor Rajan pitches for Better Start-up Business Environment

Reserve Bank Governor Raghuram Rajan has pitched for providing better business environment for start-ups. He categorically mentioned that India has surely done away with the “license raj” but, to some extent, is continuing “inspector raj”. He stressed on self-certification by start-ups with some checks on part of authorities for preventing misuse. Rajan also gave examples of UK where liberal regulations have led to higher start-up growth than in Italy. While speaking at 4th Odisha Knowledge Hub, RBI Chief said that Indian economy is recovering.

Jaitley praises eCommerce companies for benefitting customers

While delivering speech at annual lecture of Competition Commission of India (CCI), Union Finance Minister Arun Jaitley lauded eCommerce companies for bringing widest possible choices before consumers at most competitive prices. Jaitley went on to add that E-commerce “promotes innovation, efficiency and quality”. He said that his government is making every possible effort for improving India’s “ease of doing business index”. Minister went on to say that passage of Insolvency and Bankruptcy Code is going to help sick industrial companies resolve problems quicker.

HSBC India to shut down 24 branches in 15 cities

HSBC India, part of London-based banking gianst HSBC, has planned to shut down 24 branches in 15 different cities in India. The intention behind this step is to reflect the changes in the customer behaviour, who are frequently using various digital channels for undertaking banking transactions. The bank network would be consolidating from 50 branches across 29 cities to 26 branches across 14 cities.

Sensex & Nifty open lower during early trade

Both BSE Sensex and Nifty have opened lower with Sun TV shares shrinking by 10%. As per analysts, a rate hike in the US would actually make it less attractive for the foreign investors to put capital in India’s emerging markets. Also, the Federal Reserve Officials believe increasing interest rates in June is actually appropriate if the economic data points to the stronger second-quarter growth.

Mounting Defaults make PSU Banks report Rs. 7000 Crore Loss

Reports say, 6 public sector banks have reported an aggregate loss of Rs. 7000 crore, among which the biggest loser is Bank of Baroda (Rs. 3230 crore). Only one bank that reported marginal profit is Union Bank of India, which earned a profit of Rs. 97 crore in the 4th quarter. Poor performance of the PSU banks dragged down the BSE Bankex index by 1.25 per cent, with biggest losers in the banking sector being PNB, Kotak Mahindra, ICICI Bank, and SBI.

SBICAP Trustee Company Limited attaches Rs. 90 Crore Kingfisher Villa in Goa

SBICAP Trustee Company Limited has attached Goa’s plush Kingfisher Villa (worth Rs. 90 crore) of liquor baron Vijay Mallya as part of the ongoing drive to recover the outstanding amount owed to the consortium of banks led by SBI. The move comes even as ED (Enforcement Directorate) froze Mallya’s Rs. 9,000 worth assets and shares for forcing him repay the outstanding debt to banks. Banks had earlier tried to possess the Goa’s Kingfisher Villa but were thwarted by United Spirits.

Bank Employees to go on a nationwide strike on 29 August

Bank employees union named as The United Forum of Bank Unions (UFBU) has called for a nationwide strike on 29 August 2016 to protest against the government’s current banking reforms. The union comprises 10 lakh bank officers and employees as members. All India Bank Employees Association general secretary C.H. Venkatchalam took the decision at an UFBU meeting held on 12 May 2016.

BSE Sensex gains by over 200 points

With an increased buying interest in banking and IT stocks, Sensex saw a rise by 225 points to close at 25,822. On the other hand, Nifty also went above its 7,900 mark with Nifty Bank and Nifty IT sub-indices rising by 1 per cent each. Sensex opened with 100+ points gains along with the 50-shares Nifty rising by 40 points to close at 7,887.

Sensex shoots up by 300+ points, Nifty by 7,800+

During the morning trades, both the BSE Sensex as well as Nifty witnessed huge gains. While the Sensex advanced by over 300 points to reach 25,537, Nifty scaled to over 7,800 points to reach a high of 7,825. The gains were led by banking stocks with the Bank Nifty being the top sectoral gainer, rising by 1.4 per cent. Additionally, stocks related to power, metal, realty and capital goods, FMCG and auto hiked by over 1 per cent each.

Indian Scientists lead Team in designing Drones for Organ Delivery

With increasing need for faster delivery of organs for transplant, two Indian scientists - Kota Harinarayan and Dr. K Ramachandra - from the National Design and Research Forum are spearheading a project whose success can cut the organ delivery time by over 50 per cent. Rs. 100-crore National Programme for Micro Air is designing a drone or unmanned aerial vehicle that will help in faster organ delivery. Fully ready-to-fly 184 can automatically carry passenger-by-air by simply entering destination in the smartphone app.

RBI Governor Rajan tears into "Paper Tiger" Allegation, Vouches for Regulation Enforcement

RBI Governor Raghuram Rajan rebutted claims that the apex bank is a "paper tiger" and went on to stress on enforcing all regulations for all businesses including app-based taxi services Ola and Uber. Rajan said they have already taken action against one of the app-based taxi providers because of their regulation violation. While emphasising that RBI cannot be a paper tiger, Rajan said that no matter how ugly a regulation is, must be enforced. However, he also added the need of changing bad regulations.

Cheque Bounce case: AAI seeks Mallya's arrest warrant from court

Airports Authority of India (AAI) has sought arrest warrant of liquor baron Vijay Mallya from a court of 63rd Metropolitan Magistrate, Andheri, Mumbai on charges of two bounced cheques of worth Rs. 100 crore. The two AAI applications sought permanent cancellation of Mallya’s exemption and issuance of arrest warrant. AAI reasoned that appearance of Mallya’s advocate on his behalf becomes null and void as the liquor barron’s passport has been cancelled. Next hearing will take place on 13 May.

Jindal brothers sign Rs. 6500 crore power deal

Sajjan Jindal’s JSW Energy has confirmed to purchase a 1,000 megawatt power plant from his brother’s Jindal Steel and Power in a deal amounting to $976 million (Rs. 6500 crore). Jindal Steel has stated the deal will be completed by mid-2018 with JSW getting into power via acquisition of the power plant in Chattisgarh.

Sensex slides by 200+ points, unaffected by ICICI selloff

A continuous selloff in banking stocks pulled down the BSE Sensex along with Nifty. While Sensex fell over 200 points below 25,400 levels, the Nifty traded below its key 7,800 levels. Private lender ICICI Bank reported its Q4 earnings, detailing the corporate exposure post markets on 29 April 2016. The bank also said 4.8 per cent of its assets fall in below-investment grade.

Finance Business Bills to rule Parliament Agenda Next Week

Official statement issued by Parliamentary Affairs ministry said second week of Parliament’s second budgetary session will discuss finance business bills pertaining to 2016-17 general budget. Finance Bill 2016, Appropriation (No.2) Bill 2016 and Compensatory Afforestation Fund Bill, 2015 will be taken up in Lok Sabha for consideration and passage in the coming week. Some other important bills that are likely to be taken up in the Rajya Sabha are Indian Trusts (Amendment) Bill,2015 and Mines and Minerals (Development and Regulation) Amendment Bill, 2016.

$1Billion Valuation of Indian Healthcare IT Market by NASSCOM

NASSCOM’s report points out that current valuation of the Indian healthcare IT market is around Rs. 6,650 crore or US$ 1 Billion. The report also expects the same to grow around 1.5 times by the year 2020 (with a compounded annual growth rate of 11 per cent in the coming 5 years). Revenues generated by healthcare software segment in 2014 was US$96.8 million and the deluge of health tech start-ups, which have cropped up recently, have attracted more than $100 million since 2014.

Rupee falls by 6 paise against dollar

During early trade at the Interbank Foreign Exchange, Rupee weakened by 6 paise to 66.58 against the dollar. Reason for this is quoted as the month-end demand for the US currency from the importers in addition to a lower opening of the Indian equity market. Yesterday, the rupee gained 10 paise to close at 66.52 against dollar with the benchmark BSE Sensex trading lower by 122.06 points to close at 25,885.25.

India-France launch Solar Programme for Developing Countries, To Facilitate over $1 trillion investment

India-France launched a solar finance programme for facilitating development of solar energy potential of developing countries. The facilitation works will be two-pronged – lower finance cost and facilitate investment flow of over $1 trillion to ISA (International Solar Alliance) members. The announcement was jointly done by Indian Power minister Piyush Goyal and French environment minister Segolene Royal. Another programme was signed by over 25 countries at ISA meeting that aims providing solar technology to farmers for harnessing “energy of the future”.

India says USA's stance on Solar Trade 'unfortunate'

The Union Minister of Power, Coal and Renewable Energy, Piyush Goyal, has reportedly accused US of practicing double standard when it comes to solar trade. After the WTO said that India's efforts at promoting only Indian-made products in solar power industry were "inconsistent" with a range of global trade regulations, the Goya said that the US continues to purchase solar equipment giving preference to domestic manufacturers and on the other hand, chooses to go against the developing world. 

 

India becomes the #1 FDI Destination

India has replaced China as the world’s top destination for foreign direct investment. The country has been successful in attracting FDI worth $63 billion in 2015, achieving the milestone of being the highest-ranked country by capital investment. In 2015, India witnessed high-value project announcements across multiple domains including oil and natural gas, coal and renewable energy.