Budget 2018-19

  The Company has no outstanding loans from banks and approximately 95 per cent of its debt is in the form of debentures, it said Shares of  Reliance Capital  were locked at the 5 per cent lower circuit, at Rs 18.10 apiece, on the BSE on Tuesday after the Reserve Bank of India (RBI) on Monday superseded the board of industrialist Anil Ambani-promoted Reliance Capital, a non-banking financial company (NBFC), owing to defaults and governance issues. “In view of the defaults by RCL (Reliance Capital Ltd) in meeting the various payment obligations to its creditors and serious governance concerns which the board has not been able to address effectively”, the central bank superseded the board. The RBI has appointed Nageswar Rao Y, former executive director of Bank of Maharashtra, administrator of Reliance Capital. its part, the company has informed the exchanges that it will “co-operate fully” with the Administrator appointed by the RBI… Read More

  Central bank had last year announced a series of measures to support the economy suffering the impact of a nationwide lockdown Reserve Bank of India Governor Shaktikanta Das will make an unscheduled speech at 10 am today, Wednesday, as a new coronavirus wave threatens a nascent economic recovery. The address will be broadcast at 10am local time, the RBI said on Twitter. It didn’t elaborate. A team at the Indian Institute of Science in Bangalore used a mathematical model to predict about 404,000 deaths will occur by June 11 if current trends continue. A model from the Institute for Health Metrics and Evaluation at the University of Washington forecast 1,018,879 deaths by the end of July, Bloomberg reported. India on Tuesday recorded 33,491 new  coronavirus cases  to take its count to 3,447,133. With 3,449 new fatalities, its Covid-19 death toll reached 222,408. Congress leader Rahul Gandhi has said the central government should impose a “full lockdown” to slow down the c...

  The centre and state governments likely to reduce taxes to bring down high fuel prices The Reserve Bank of India (RBI) did not compromise on its balance sheet while providing liquidity to the bond market through asset purchases, governor Shaktikanta Das said on Thursday. The central bank, so far, this fiscal, has purchased over Rs 3 trillion of central and state government bonds from the secondary market to provide liquidity to the system. Unlike many central banks, though, the RBI’s asset purchases “did not dilute its balance sheet and hence, did not compromise on core principles of central banking.” The purchases were risk-free government bonds only, he said. “The focus was to foster congenial financing conditions without jeopardising financial stability,” Das said in his keynote address at the foundation day of the Bombay Chamber of Commerce. In this period, forward guidance gained prominence in the Reserve Bank’s communication strategy to realise co-operative outcomes, he sai...

  The Reserve Bank of India will aim to drain 2 trillion rupees ($27.3 billion) of banking funds via a 14-day reverse repo operation on Jan. 15 Finance News : India’s key money-market rates and yields on short-term debt are set to rise after the central bank took its first small step to unwind emergency pandemic measures. The Reserve Bank of India will aim to drain 2 trillion rupees ($27.3 billion) of banking funds via a 14-day reverse repo operation on Jan. 15, the central bank said in a statement late Friday. This is the first move in a phased normalization of the central bank’s liquidity operations, it said. There has been growing consensus among traders that the RBI will have to start draining excess cash, as surging liquidity caused money-market rates to drop below the central bank’s interest-rate corridor and distort asset pricing. Quantum Asset Management Ltd. and IDFC Asset Management Ltd. have been among those forecasting that short-end rates will rise faster than the long...

  The Enforcement Directorate will produce Kerkar in the Mumbai sessions court on Friday The Enforcement Directorate (ED) on Thursday arrested Cox & Kings (CKL) promoter Ajay Ajit Peter Kerkar in connection with the YES Bank money-laundering case. The beleaguered tour and travels company, one of the top borrowers of the private lender, owes Rs 5,500 crore to a clutch of banks and non-banking financial institutions. The move follows a series of arrests of CKG executives, including that of erstwhile chief financial officer (CFO) Anil Khandelwal and internal auditor Naresh Jain, in the case. Confirming the development, an ED official said Kerkar would be produced in the Mumbai sessions court on Friday and his custody for at least five days will be sought for interrogation. The CKG group and its promoter came under the ED scanner when the agency started investigating the books of  YES Bank  and its top borrowers. During the probe, the ED came across lenders’ enquiry again...

  ATMs to be operational from today The administrator for Lakshmi Vilas Bank (LVB), appointed by the Reserve Bank of India (RBI), assured depositors on Wednesday that the bank had enough liquidity and that he was confident the moratorium would be lifted by December 16 and that withdrawal limits would also go away by then. “There is no need to panic, every single rupee of customers is safe,” administrator T N Manoharan said a day after the 94-year old private sector lender was put under moratorium and the RBI proposed to merge it with DBS Bank’s less than two-year-old India subsidiary. “There is no cash crunch. ATMs will be operational from Thursday. Gradually everything is getting relaxed, the system is getting re-calibrated in order for customers to be able to withdraw by factoring in the cap, and is expected to be operational by Thursday,” said Manoharan. Priority was to help customers to be able to withdraw within the permissible limits of Rs 25,000 per month, he said. LVB’s dep...

  This would help the proposal get cleared in the GST Council in case of voting The Centre has received support from 21 states and Union Territories (UTs) for its offer of the Rs 97,000-crore Reserve Bank of India (RBI) window giving them compensation under the goods and services tax (GST) regime. This will help clear this proposal at the GST Council in case of vote. The 21 states and UTs are Andhra Pradesh,  Arunachal Pradesh , Assam, Bihar, Goa, Gujarat, Haryana, Himachal Pradesh, Jammu & Kashmir, Karnataka, Madhya Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Odisha, Puducherry, Sikkim, Tripura, Uttarakhand, and Uttar Pradesh (UP), said finance ministry sources. The sources acknowledge that the GST Council needs only 20 states to pass any resolution in case voting is required, according to the GST Act. This may leave those not opting for any of the two options offered by the Centre before the GST Council meet scheduled for October 5 in the lurch. Sources said it is cl...

A gauge of capacity utilisation is also provided by the RBI data on working capital loans   There are early signs of an uptick in capacity utilisation in select sectors, which could be a precursor to an investment revival.Utilisation rates are on the rise in cement, automobile ancillaries, engineering, casting and sheet metals, industry players told Business Standard.A gauge of capacity utilisation is also provided by the RBI data on working capital loans. In line with the trend of rising capacity utilisation rates, working capital loans grew 6.4 per cent in the July-September quarter of 2017-18, up from 4.8 per cent in the preceding quarter. It had plummeted to a low of 1 per cent in the fourth quarter of 2016-17.“Our order intake has risen 20 to 25 per cent in 2017-18, signalling 80 per cent capacity utilisation in certain sectors like cement. Some of the sectors with high orders included food processing, alcohol and the carbon black industry,” said M S Unnikrishnan...