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Year 2020

UPI payment hits all time high

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UPI Payments hit 2.62 lakh crore according to NPCI (National payment corporation of India) data. Online payment started growing slowly from May with the ease of lockdown. In May it was valued at 2.18 crore.

NPCI was incorporated in 2008 as an apex body for operating retail payment and settlement system in India. It has created amazing payment and settlement infrastructure in the country.

It facilitates payment through various retail payment products such as:-
1) Rupay card
3) UPI
5)Bharat Billpay
NPCI also launched UPI 2.0 for more secure & comprehensive service.

-By Yash Ladani (MBA finance)

BMW & Mercedes end long term automated driving alliance

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-BMW & Mercedes Benz AG have punted on what was meant to be a long term collaboration to develop next generation automated driving technology, less than a year after announcing the agreement.

-The German automakers calls this one a mutual break up & have each agreed to concentrate on their own existing development paths. Those paths may include working new or current partners. They also emphasized that they will reconnect later on.

-The partnership which was announced in July 2019 was never meant to be exclusive. Instead it reflected the increasingly common approach among legacy manufacturer form loosing development agreements in an aim to share the capitally intensive work of developing.

-In these talks and after extensive review- both sides concluded that in a view of the expense involved in creating a shared platform as well as the current business and economical condition is not so good for the successful implementation of the cooperation.

-By Tejas Jagnade (MBA Marketing)

Reliance Jio becomes debt free by raising over ₹1.68 lakh in 58 days

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Reliance Industries Limited announced that it has raised over ₹168,818 crore in a span of just 58 days.

The company’s deal spree began with Facebook investing ₹43,573.62 crore in Jio Platform for a 9.99% stake in the company on April 22, 2020. This was followed by a series of investments by global investors including Silver Lake, Vista Equity Partners, General Atlantic, KKR, Mubadala, ADIA, TPG, L Catterton and PIF. The investments made by these companies totals to ₹115,693.95 crore of the capital raised by RIL and a 24.70% stake acquired by these investors in Jio Platforms.

The company also raised ₹53,124.20 crore between May 20, 2020 to June 3, 2020 via RIL rights issue. The global investments coupled with the RIL rights issue account for a total of ₹168,818.15. This along with the stake sale to BP in the petro-retail JV, the total fund raised is in excess of ₹1.75 lakh crore.

At its 42nd AGM last year, RIL Chairman Mukesh Ambani had assured the shareholders that the company was on the way to becoming debt-free by March 31, 2021, which stood at ₹161,035 crore as on March 31, 2020. With the latest spree of investments, stake sale and rights issue RIL has become net debt free.

“Over the past few weeks, we have been overwhelmed by the phenomenal interest of the global financial investor community in partnering with Jio. I also express my heartfelt gratitude to all the retail and institutional investors, both domestic and foreign, for their overwhelming participation in our record-setting Rights Issue,” RIL chairman said in a statement.

“Today I am both delighted and humbled to announce that we have fulfilled our promise to the shareholders by making Reliance net debt-free much before our original schedule of 31st March 2021,” he added.

-By Surabhi Sinha (MBA Finance)

India rejects china's claims on Galwan valley, calls them exaggerated, untenable.

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India on Wednesday said China claiming sovereignty over the Galwan Valley in eastern Ladakh is exaggerated and untenable and contrary to the understanding reached on the issue between the two sides. In a late night statement from the MEA, spokesperson Anurag Srivastava said, “As we have conveyed earlier today, External Affairs Minister and the State Councillor and Foreign Minister of China had a phone conversation on recent developments in Ladakh. ” "Both sides have agreed that the overall situation should be handled in a responsible manner and that the understandings reached between Senior Commanders on 6th June should be implemented sincerely. Making exaggerated and untenable claims is contrary to this understanding," the MEA spokesperson said. In strong words, India has told to China that the "unprecedented" incident in the Galwan Valley will have a "serious impact" on the bilateral relationship and held the "pre-meditated" action by Chinese army directly responsible for the violence that left 20 Indian Army personnel dead. Later, in a telephonic conversation, External Affairs Minister Jaishankar conveyed to his Chinese counterpart Wang Wi India's protest in the "strongest terms" and said the Chinese side should reassess its actions and take corrective steps, the Ministry of External Affairs said. The clash in Galwan Valley on Monday night is the biggest confrontation between the two militaries after their 1967 clashes in Nathu La in 1967 when India lost around 80 soldiers while over 300 Chinese army personnel were killed.

-By Pratiksha Sontakke (MBA Finance)

Maruti Suzuki partners with Induslnd bank for vehicle financing

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The country’s largest car maker Maruti Suzuki India Ltd (MSIL) has partnered Induslnd bank for vehicle financing to help spur sales after resumption of operation following lockdown relaxations. Through the partnership, Consumers can avail of low EMI scheme for the first three months. It will be starting at Rs.899 per lakh and step up scheme with EMI starting with Rs.1800 per lakh. This funding is up to 100 percent on road funding for customers with valid income proof. Moreover, customers who do not have valid income proof can avail of up to 100 percent Ex-showroom funding. The offers are valid for all Maruti Suzuki models. In the current COVID-19 pandemic scenario, Induslnd bank has offered a variety of finance options including low EMI scheme, step-up and balloon payment options and funding 100% on road price for the vehicle. MSIL has dealer network of 3086 showrooms across the country. While Induslnd bank has a network of more than 1900 branches. This association would help facilitate the car buyers to avail easy and attractive finance scheme.

-By Pranav Kathare (MBA Marketing)

It’s Time For Plan B.

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All change is hard at first
Messy in the middle and
Gorgeous in the end.
The transitional change in work environment has opened doors for alternatives, not only for businesses but also for the employees. Inevitably, the shift to work from home setup might be challenging for many but some may have found this to be beneficial for their extra interests. The comfort of home or layoffs is now making people realize what they are actually good at and enjoying doing, so of course scan the market to look at what new trends and opportunities exist. Although, we are expected to see the sharpest economic decline in the history of human civilization, we might also see the sharpest recovery of all the time. Plan B is the way through which we can focus on our goals and should not stop for any issues in the society or country. We should always be ready to accept the challenges to face it. Plan B is the way we can decide what we want to do and start to reinvent our career. Considering the current situation, businesses are no more running behind profits, but striving hard to survive. So, it’s time to pull up the socks and move to your goals towards the career and make a bright future.

-By Pooja Yadav (MBA Finance)

India is mulling a new way to bring its bad loan burden under control?

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India is considering a new category of alternate investment fund which will focus on acquiring stressed assets from banks and shadow lenders, a move aimed at resolving some of the highest bad debt in the world. The fund will be allowed to buy stressed assets directly from the banks and non-banking financial companies, people with knowledge of the matter said, asking not to be identified as the matter is not public. At present, investors can only access bad loans through securities issued by asset reconstruction companies, but the new fund category will allow them to do so directly. This will give foreign investors including global hedge funds easier access to the mountain of local bad debt. Prime Minister Narendra Modi has been spearheading efforts to kick-start the economy and a significant part of this is based on increased lending by the banks which opens up the risk of a further increase in bad debts due to the virus outbreak. Using an alternate investment fund to buy bad debt from banks would help lighten the burden of banks as they grapple with what was the world’s worst bad loan ratio even before the virus pandemic virtually halted economic activity through the world’s biggest lockdown. The discussions are at a very preliminary stage and the aim is to supplement the efforts of asset reconstruction companies in reducing the bad loans of these lenders, the officials said. A finance ministry spokesman was not immediately available for a comment. Alternate investment funds are a home-grown and locally regulated class of hedge funds that have increasingly become popular vehicles for a range of investors from wealthy local investors to global distressed credit funds to use. Investors must commit at least Rs 1 crore, and largely comprise global hedge funds, wealthy local investors, and the investment vehicles of tycoons.

-By Padmaja Devne (MBA Finance)

Why India needs a new bad bank?

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The proposal for a new bad bank has been doing the rounds at least since 2018, but has stalled on the vital question of who would own it. There already are 20-odd private asset reconstruction companies, and these have been unable to buy bad loans off the banks on any large scale. On the other hand, if the state sponsors the new bad Bank, it would amount to a state directed shuffling of bad assets from one state-owned entity to another, with no clarity on the pricing of deals. The solution is to create a bad Bank sponsored by the major banks, public as well as private. If such a bad Bank buys assets cheaper than normal, its profits would be larger than normal but would go back to the banks themselves, making it more palatable. The name bad bank is deceptive. It should serve more as an asset management-cum- project execution agency, to resolve the bad loans it buys from banks. Many of the bad loans on Bank books are inherently viable projects, given a haircut to reduce bloated project cost. Many real estate projects got stuck for want of liquidity from market without a supplier of long term project Finance, real state depending on non-banking financial companies that rolled over commercial paper to finance their short term loans. Power Projects are victims of states reluctance to force consumers to pay for the power consume. For the Indian economy’s post covid recovery politics has to stop patronizing power theft and power giveaways and a bond market has to be created, so that long gestation projects can finance themselves with long term bonds. If these conditions are met, a bad bank will become feasible. Banks must be free to lend, for growth to pick up. Burdened as they would be with bad loans running to Rs 13-14 crore post covid will not lend, unless they Can Park their bad loans with someone without being accused of selling the assets off too cheap. A bad Bank collectively owned by the banks in proportion to their bad loans would blunt the criticism. It must be given a chance.

Nadim Reghiwale (MBA Marketing)

Draft Ecommerce Policy To Incentivize Kiranas For Ecommerce:-

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• The government is looking to incentivize kiranas willing to integrate their operations on the ecommerce platform.

•The report added that ecommerce companies would be asked to put full details of sellers on their marketplace so that buyers can make informed decisions and even look to use products sold on the platform by nearby shops for swift delivery and service.

•Several technology companies and ecommerce entities, including Facebook, Walmart and Amazon, have offered to provide necessary technologies that would help kiranas integrate with ecommerce platforms.

• For ecommerce platforms, getting kirana stores onboard is seen as a way to enhance performance and last-mile delivery. Therefore pushing for their inclusion might not be a difficult task for the government.

•With over 12 Mn kirana stores across hyper local areas, almost every major ecommerce platform Myntra, Walmart, Flipkart, Reliance, Grofers and Big basket have started working with unorganized retail shops to penetrate deeper into the Indian market.

•DPIIT had released the draft ecommerce policy back in early 2019, since then there have been several additions to the draft. Under the draft policy, the government has also included certain provisions like data localization, selling of counterfeit products and compliance with FDA rules and regulations.

By Musaib Umair (MBA Finance)

Scope of Fintech in a Post-COVID India

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Fintech, in its very core entails delivering of financial services via the internet, thus eliminating the need for institutions to spend heavily on Physical Premises and thereby allowing the man power to focus on other priority areas. With the current scenario being uncertain, Banks and other financial institutions are shifting to the new normal, i.e. Digital Banks. We may be looking at a huge spike in the variety of services rendered online, and companies that facilitate it. The Indian market is presently dominated by Paytm, PhonePe and Google Pay, Amazon Pay being a recent addition. In a very short span of time, these applications have shrunk the use of physical cash and have become a quintessential part of the current Commerce. With banks adopting a similar model and launching their respective wallets (Pockets by ICICI), there's scope for digitization of various other services, One Tap Payments/ Withdrawals for instance. This would not only nullify the need for physical ATM's and CDM's, but the companies can save on a lot of overheads in maintenance and operating of these machines. These savings could be invested in reinforcing the Digital Infrastructure, and ultimately be passed on to the customers as Competitive Interest rates. One probable downside to it would be loss of clerical jobs, but the companies can channel those residual funds into up skilling of the existing employees, thus creating a new Industry Paradigm. With an increased emphasis on National movements like 'Make in India', 'Aatmanirbhar' and an upgrade in the overall connectivity, we may soon become a nation where Banking would mean a few clicks on your screen.

By Mayank Goyal (MBA Finance)

Uttar Pradesh CM Announces ‘Bal Shramik Vidya Yojana’ On International Child Labour Prohibition Day

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Uttar Pradesh Chief Minister Yogi Adityanath said that children who have been forced to work to support their families will benefit from the ‘Bal Shramik Yojna’. A total of 2,000 children from 57 districts of the state will benefit from the first phase of the scheme. .

CM Yogi Adityanath launched ‘Bal Shramik Vidya Yojana’ on the occasion of the International Child Labour Prohibition Day on Friday. Under the scheme, the government will give monthly financial assistance of Rs 1,000 and Rs 1,200 to selected boys and girls, respectively. If these children pass classes 8, 9, and 10, they will be given additional amount of Rs 6,000 for clearing each standard. Speaking on the occasion, Adityanath noted that the scheme is meant to help those children who have been forced to work to support their families. .

The CM said schemes like Ujjwala, Ujala, Pradhan Mantri Awas, and Ayushman Bharat primarily cater to these sections. A total of 2,000 children from 57 districts of the state will benefit from the first phase of the 'Bal Shram Vidya Yojana'. .

He also said that “Our Atal residential schools will also be ready to provide quality education to children of workers from the next academic session,” The families of these children will also get the benefits of all the schemes of the central and state government.

By Kirti Moralwar (MBA Finance)

Startups making hay post lockdown:

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As Unlock 1.0 plays out across the country, tech based solutions are focusing on handling crowding at malls, offices and markets, contactless shopping and parking. Startups like Staqu, Park+, Magneto clean Tech launching services are emerging in these segments.

Staqu an AI based security focused startup is using Jarvis (video analytic performer) to let organizations check if government directions are being followed. It will tell about how many people are wearing masks, entering lifts, maintaining social distance and hygiene. Staqu has tied up with 15 partners (Microsoft is one of them), through them they are reaching corporate, malls, retail industry. Through Staqu live feed of kitchen is shown to customers to build confidence.

Park+ has tied malls to enable them check customer's temperature at any point in time which will be called as mall pass using QR code which is verified through one time password allowing mall to track the customer.

Magneto Clean Tech claims to purify air by using filter less magnetic technology which can be integrated to any air conditioning system .It is moving forward towards mobility sector covering buses, Railways and metros.

By Jayanti Prasad (MBA Marketing)

Impact of Covid 19 on Banking Sector

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As we know that everyone is facing problems due to the existence of covid- 19. Because of this borrowers and businesses are facing job losses, slow sales, and declining profits as the virus continues to spread around the world. Banking customers are likely to seek financial relief.

How Banks are Taking Precaution. .
In addition to managing the direct economic impact of the corona virus, banks need to have a plan in place to protect the employees and customers from its spread. Many banks are already starting to encourage remote working of some employees. By implementing completely digitized and remote customer transactions, banks can ensure that both everyday and exceptional process will be carried out with limited disruption.

Corona virus challenges traditional banking habits.
As community spread of the corona virus proliferates, alternatives to in-person banking and physical exchanges are looking more and more attractive. .

For Example, The World Health Organization has advised people to use contactless payment and avoid handling bank notes as much as possible. That’s because the corona virus may continue to live on bank notes for days, accelerating spread of the disease. .

And also the current recommendations from the center for disease advice individuals to stay six feet away from visibly sick people. This may be all but impossible at physical branches, where long lines and close interaction with bankers is expected. .

Corona virus is fueling the movement towards digital banking. .

Government agencies and banks are anticipating this shift towards digital banking, and taking relevant measures. The agency called for “increased reliance on online banking, telephone banking, and call center services” in addition to remote working. For example, HSBC has implemented split-site working arrangements in their Asia Offices after an employee came down with the virus. .

DBS bank has digitalized 11 financing processes to reduce the need for in-person exchanges, and is offering business account instant interbank fund transfers. Banks are also running webinars to train its staff on how to use digital tools
Thus, even after the corona virus passes digital solutions for banks will have an enduring relevance. Traditional banks that choose to learn and take lessons from digital financial institutions will find themselves more prepared to compete with challenger banks during the corona virus pandemic and long after it’s over.

By Champa Bhandarkar (MBA Finance)

AckoDrive offers contactless platform for car buyers

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AckoDrive, a virtual car dealer, has transformed into a completely online car purchase platform, providing guaranteed delivery dates, doorstep delivery, cost-effective deals, and easy financing options, the company said in its official release.

With rising concerns around using shared mobility and safety in the wake of Covid 19 pandemic, customers are looking to invest in their own new car for their regular travel needs. In solving this customer need, AckoDrive has gone one step further and identified what is lacking in other new car purchase options right now, that is: certainty. AckoDrive has transformed into a completely online car purchase platform providing guaranteed delivery dates, doorstep delivery, guaranteed lowest prices and easy financing options, according to a release.

Given the current scenario, customers are leaning towards contactless modes of purchasing and online car sales are gaining traction. Launched in early 2019, AckoDrive has already provided digital car buying experiences to its customers. To accelerate the change in automotive retail and capture the demand for new car sales post Covid-19, AckoDrive on Monday launched an enhanced version of its platform that allows customers to find the best deals from its catalog of readily available cars across major car makers, while also providing finance and insurance. AckoDrive is available in Delhi-NCR, Mumbai, Bangalore and Pune

By Bharat Suthar (MBA Marketing)

How will COVID-19 pandemic impact the education sector?

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The COVID-19 has made a significant impact on the education sector. Before the pandemic, only a small number of universities had developed the online education system. When the pandemic hit the world, those universities weren't in the problem since they transitioned smoothly from real classrooms to the digital ones. But, on the other side, the traditional brick-and-mortar universities and schools have got in trouble.

They were forced to implement online education system, to satisfy the student's needs and not to leave them worse off. Not all universities and schools succeeded (for example, some professors don't hold online lectures; they only send the presentations via email, and that's it). The problem is also in examinations, where some universities can hold the exams via the internet, and others are postponing them (making it harder for students to learn and pass the subjects).

For students, online education was an entirely new thing. In my opinion, students are not worse off in this situation, since we got many benefits. Online learning is time and cost-effective since students don't need to travel every day and spend their money and time. But, they are losing direct contact with the teachers, and the cost of that is lower concentration.

Student’s satisfaction depends on the student's field of study. For example, students of medicine and biology don't like this way since they are unable to have practice lectures in labs. Still, for students of IT or management, this is almost the same way as in the real classroom.

I believe that teachers play an essential role in online education, and also in student satisfaction. By this, I mean precisely on making lectures more interactive and entertaining. If they, for example, only open the presentation, and talk, without any discussion, many of the students will go and use social networks or do something else (teacher cannot see them as in a real classroom). But, if teachers are creative in the way of presenting, making students interested, asking them questions, students will feel respected, they will follow the lecture, and their overall satisfaction will increase.

The pandemic and online education will also make an impact on local economies, since students are at their homes, not spending their money on bus tickets, not paying for flats or dorms, and all other services they usually would use if they were physically present.

By Arun Suryawanshi ( MBA Finance )

5000 IoT patents are filed in India in last five years

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In last five years, there have been 5000 patents filed in India as compared to only 1000 in the previous five years, a study has revealed.

What is the condition?
According to report titled, IoT is driving the growth story in India, by the National Association of Software & Services Companies (NASSCOM) there have been 6000 patents filed in India from 2009-2019 of which over 5000 filed in last five years.

What numbers says?
According to the report, in these 5000 patents 70% of patents have come from multinational companies, 7% of patents have come from start-ups & 95% of patents from these 5000 patents are related to IoT hardware. Around 60% of patents were filed by electronic manufactures and 13% by IT and ITeS companies. 40% of these IoT patents have been granted.

What official says?
Debjani Ghosh, President of NASSCOM have said that, “Emerging technologies such IoT, AI, Blockchain and others are playing such crucial role in enabling an interconnected world as well as creating the new-normal.” She added that IoT innovation especially with focus in healthcare and manufacturing will gain more impetus in the tech enabled new normal.

More details about it.
In terms of application areas, patents are regarding smart electrical appliances and smart wearable lead in the home automation category. Disaster prevention is one of the key areas which can use IoT to trace down the epidemiologists and the affected people can make contact by geographic information system by using IoT mobile data. Smart cellular wrist bands can also help in quarantine compliance.

Patents filing will see an increase in the coming five years primarily in healthcare, automation, manufacturing and supply chain, 5G & security systems. IoT will rebound countries in the Post-Covid era, with an increased focus ii healthcare & hygiene.

By Akshay Thorat (MBA Finance)

Education Finance Solutions Provider Meritize Appoints New COO

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Meritize’s approach to education finance is based on an individual potential to succeed not just on a credit score or similar measures, according to a statement. Despite growing interest in the potential of short term, skills based training among students, employers, and policy makers, financial access too often remains a barrier for learners who stand to benefit most. Meritize unique funding model considers more than just a credit score so that we can unlock access to educational and economic opportunity. Meritize is first chief technology officer to lead the development of the company’s technology platform by bridging the gap between job seekers, training providers, and employers, according to a statement. Meritize has shown 36 percent employee growth and recently closed a $13.2 million .Totally funding round and raised a total of $23.4 million in funding. Meritize has invented its skill based hiring and finance platform to serve more than 6,000 students and trainees participating in over 1,200 in demand training programs.

By Umair Musaib (MBA 1st Year, Finance)

Bharti Airtel world’s 3rd best telecom stock in 2019

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Airtel’s $3b fund raisings and improved free cash could mitigate the risk of AGR payments. With 55.8 per cent returns since the beginning of the year, it has become the third-best performer among the stocks of service providers and equipment makers, show data from Bloomberg. Ubiquiti Networks, a US-based wireless data communication products firm, and China-based telecom equipment provider ZTE rank as the top two telecom stocks in the world. Bharti Airtel’s stock has outperformed the Bloomberg World Telecommunication index, a capitalization weighted index of the world’s leading telecommunication stocks – by 45 per cent since the beginning of 2019. The tariff hike decision by the incumbents and Reliance Jio Infocomm’s decision to participate in the tariff hike led to a rerating of the valuation of the telcos. Investors are factoring in 40-45 per cent tariff hike for the incumbent telecom operators; but given the higher risk to spectrum debt and AGR payments, investors prefer Bharti Airtel to Vodafone Idea. Besides, Bharti Airtel’s planned $3-billion fundraisings and improved free cash could mitigate the risk of AGR payments.

By Tejas Jagnade (MBA 1st Year, Marketing)

Russia Banned from Olympics for 4 years

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As world Anti doping Agency executive committee voted unanimously to ban Russia for tampering with Anti - doping data, Russia is banned from world's top sporting events for 4years that includes next summer, winter Olympics and world cup in Qatar. This decision by WADA is a very serious blow to Russia's reputation and a disappointment for Russia's sports players. WADA's executive committee in Switzerland acted after concluding that Moscow had tampered with laboratory data by planting fake evidence and deleting files linked to positive doping tests that could have helped indentify drug cheats. The decision to punish Russia with a ban was unanimous.
- Punishments
Out of
2020 Summer Olympics
2022 winter Olympics
2022 football World Cup in Qatar
May also be stopped from hosting matches in the UEFA Euro 2020 Football championship. The entire fiasco created by Russia has cheated far too many athletes of their dreams and rightful careers, for far too long.

By Sunubia Shaikh (MBA 1st Year, Marketing)

RIL in talks with SBI, HDFC, ICICI for Rs 5,000 crore loan to acquire Alok Industries

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Reliance Industries Ltd (RIL) is reportedly in discussion with several banks, including State Bank of India (SBI), HDFC Bank and ICICI Bank, for a Rs 5,000 crore long-term loan facility to fund its acquisition textile company Alok Industries Ltd in a bankruptcy takeover. In March this year, RIL won the right to acquire Alok Industries in the Insolvency and Bankruptcy Code (IBC) process.
It is worth mentioning here the textile company was among the 12 large stressed assets identified in June 2017 by the Reserve Bank of India (RBI), where lenders were asked to begin proceedings under Insolvency and Bankruptcy Code (IBC). “RIL has decided to borrow from banks and spend. It is in negotiations with SBI, HDFC Bank and ICICI Bank, which is one reason for the delay. We have approached National Company Law Appellate Tribunal to expedite the process and also written to the company to make the payment quickly,” a person familiar with the matter told the Economic Times.
Earlier, the National Company Law Tribunal (NCLT) had given green signal to RIL bid, made jointly with JM Financial Asset Reconstruction Company, which had pledged to pay Rs 5,050 crore to take the distressed company. The liquidation value of the textile firm was Rs 4,500 crore. SBI, in order to recover its Rs 3,772-crore loan, had initiated insolvency proceedings against the embattled textile player in 2017. Alok Industries — a fully integrated textile company with a presence in the cotton and polyester segments — has total dues of more than Rs 30,000 crore, which means lenders are taking a collective haircut of 83 per cent.
“SBI has sanctioned Rs 1,800 crore for this loan. But ICICI and HDFC are yet to take a decision. RIL credit is top-rated and these banks have supported the company before. Let us see how long they take to decide,” the second person cited above told the business daily.
In August this year, RIL chairman and managing director Mukesh Ambani had unveiled plans to divest a 20 per cent stake in its oil-to-chemicals business to Saudi Aramco and in a fuel retail network to BP Plc for a combined Rs 1.15 lakh crore amid plans to make it a zero-net debt company by March 2020.
The financial daily quoted a highly reliable source aware of the plan as saying, “It is only a matter of time that RIL manages to get the loans. We expect it to happen before the end of this month.”

By Surbhi Sinha (MBA 1st Year, Finance)

RBI sets up an expert team to look into HDFC banks net banking glitches

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RBI appointed a team of experts in the process of investigating the reason for the breakdown of HDFC banks digital banking channels, which caused for millions of customer to be locked out of their net banking and mobile banking accounts for over 48 hours in this week. It happened on 2nd December due to technical glitches and was restored on 3rd December. Customers were unable to access their salary account to make bill payment. HDFC bank is the largest private lender with a customer base of around 50 million of which 90% transactions are done through the internet, as per the bank’s annual report. Last year also around the same period the same incident happened and the bank’s applications broke down due to heavy payday traffic forcing.

By Pratiksha Sontakke (MBA 1st Year, Finance)

Maruti Stock to Face Pressure on Slowing Sales, Diesel Rethink

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The stock of Maruti Suzuki India, the country’s largest PV maker, trades at 29 times one year forward earnings. That’s 66% higher than 10-year average valuation on hopes of volume recovery. The slow down and liquidity problems faced by dealers has led to a reduction in inventory across most car makers and focused on retail sale an opposed to wholesale volumes. For instance, in October, retail sales rose by 11%, according to data provided by the Federation of Auto Dealers Associations, while Wholesale data released by the society of Indian Automobile manufactures (SIAM) showed a measly growth of 0.3%. Maruti Suzuki’s volume fell 24% in the first half of the current fiscal. It is expected to fall 15-17% for the Financial Year 2020, the worst decline in over 5 years. Maruti Suzuki has launched its eight petrol models ahead of new emission norms effective from April 2020. However, the company will not be manufacturing diesel vehicles in the medium term as it is evaluating cost competitiveness of diesel cars under BS-VI. Maruti has lost 190 basis points of market share year-on-year in the current fiscal so far primarily driven by 15% loss of market share in the compact SUV segment. These factors make it a tough task for it to review volumes, which may affect its stock valuation.

By Pranav Kathare (MBA 1st Year, Finance)

Railways record its worst operating ratio in 10 years

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The Indian railways recorded its worst operating ratio in 10 years in 2017-18 at 98.44%, the CAG said in a report in parliament. Operating ratio is the amount of money spent to earn each rupee. Lower the rate, healthier is railways' finance. The national general auditor in its report on railways' finance said that, the railways would have ended up with a negative balance of ₹5,676.29 Cr instead of a surplus of ₹1,665.61 Cr., but for advance received from NTPC & IRCON. The audit analysis of the finance accounts of Indian railways revealed a declining trend of revenue surplus and the share of internal resources in capital expenditure. The net revenue surplus decreased by 66.10% from ₹4,913 Cr in 2016-17 to ₹1,665.61 Cr in 2017-18. The share of internal resources in total capital expenditure also fell to 3.10% in 2017-18. “This had resulted in greater dependence on Gross Budgetary Support and Extra Budgetary Resources,” the CAG said. The CAG also recommend that railways need to take steps to augment their revenue, so that dependence on gross and extra budgetary resources is contained.

By Pooja Yadav (MBA 1st Year, Finance)

Triumph of Reliance Industries

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Reliance industries limited became the first Indian company to set the bar of surpassing the market capitalization of more than ₹10 lakh crores. The conglomerate has overtaken many industry magnates like Petroleum-China to enter the Elite top 5 club globally. At present, it is the 67th most valuable stock and has risen upwards to 40% this year. With a market capitalization clocked at a whopping $139.69 billion, RIL captures 6.5 % India’s total M-cap. In May 2009, the figure rocketed upto 8.62%.
The Mukesh Ambani Company has contributed to 1/3rd of the total NIFTY gains this year and outperformed the benchmark index by 30%. The current M-cap leaders globally are Apple and Microsoft with capitalization over a trillion dollars, which is higher than the GDP of a few countries.
It’s a real accolade for a growing economy like ours to have achieved this milestone. RIL’s triumph is set to catch eyes of plenty of the foreign investors. Let’s hope what else the conglomerate achieves in coming years.

By Mayank Goyal (MBA 1st Year, Finance)

FM Introduces bill to reduce corporate tax in lok sabha

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Finance minister Nirmala Sitharaman on Monday introduced the Taxation Laws (Amendment) Bill, 2019 in Lok Sabha that seeks to replace the ordinance, issued on September 20, to splash corporate tax rate to 22% sans incentive and 15% for new manufacturing entities. Sitharaman had on September 20 announced the lowering of the base corporate tax rate to 22% from 30% for companies that do not seek exemptions, and reduced the rate for some new manufacturing companies to 15% from 25%. The latest bill empowers the government to notify activities that may not qualify as manufacturing to be eligible for 15% tax rate. Mining, printing of books, film production, and software development will not be eligible for new lower corporate tax rate of 15%. Reduction in corporate tax rates for existing and new domestic companies, the ordinance also provided for withdrawal of higher surcharge for non-corporate on certain capital market transactions and relief from tax on listed companies on buybacks which were publicly announced prior to the budget announcement on July 5, 2019.

By Kirti Moralwar (MBA 1st Year, Finance)

Yogi Government Working overtime to give shape to its Ayodhya Dream

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With the Supreme court paving the way for Ram temple in Ayodhya (U.P), government is working overtime on several related projects that it aims to put in place before the temple comes up by 2023.A 100 acre Eye Theme Park is being built with a symbolic Ram setu to take visit across a manmade lake from Shabri garden to Ashok Vatika, an international museum on Lord Rama's life is set to be unveiled. 640 crore has been released to fast track an airport and Lord Ram's statue and 600 crore is being spent on cleaning the Saryu river. Around 526 crore has already being released as per government officials. The statue project will get a corporate social responsibility account to make it easier to get funds for construction. The country’s biggest theme park is coming up in Ayodhya in 2020 where Lord's Ram story will be depicted,alongside a mythical Ram Setu will be built upon manmade lake with Ashok vatika on other side. This park will have 4 zones and would be completed by 2023. Another project is the Bhajan Sandhya Sthal for holding prayers and religious events in Ayodhya and expansion of existing Ram Katha park which will be opened in 2020.A digital museum and an interpretation centre is planned to be housed underneath the giant Ram statue planned in Ayodhya.

By Jayanti Prasad (MBA 1st Year, Marketing)

Hero electric to stick to Expansion Plans despite Slowdown

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Company is going to invest Rupees 700 Crores in next 3 years. Managing Director predicts big demand in the near future. Although the market is down Hero Electric has decided to go ahead with its investing plan. Managing Director Navin Munjal told Economic Times that the demand for electric scooter is going to increase in future. Legendary player Bajaj Auto is going to enter in electric scooter segment. The motive behind investing is to develop new products and increase production capacity to continue to hold leadership position in this segment. 7 crore will be raised via internal profits of the company and borrowing capital from capital market. Hero electric which was having a single facility in Ludhiana plan is 80000 to 90000 per year What they are looking to do is to make economic commercial environmental sense for consumer to switch to electric.

By Ishwari Kunkalekar (MBA 1st Year, Marketing)

Essar Steel, GSPC win the Biggest Share of RIL Gas

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In the auction of natural gas Reliance Industries, Essar Steel and Gujarat State Petroleum Corporation (GSPC) won two-third of the natural gas where the winning bids were between $5.3 and $5.4 a unit. Reliance-BP offered 5 million metric standard cubic metres a day (mmscmd). About half a dozen companies participated in the e-auction. Essar Steel is learnt to have won 2.25 mmscmd, while GSPC got 1.2 mmscmd. State-run Hindustan Petroleum is believed to have won 0.35 mmscmd, while Adani, Mahanagar Gas and GAIL won 0.3 mmscmd each, according to the people. Gujarat State Fertilizer Corp is also said to have won 0.10 mmscmd. RIL-BP sold all the gas offered. The duration of supply could not be ascertained. Buyers had the option to bid for a supply period of two to six years. The current rate is $63 per barrel for dated Brent. Prices will vary during the period of supply.After including the pipeline tariff, the delivered cost of gas would be about $6.5 for buyers. Reliance-BP has the marketing and pricing freedom for all the gas they produce from the Rcluster field. The prices, however, cannot exceed the government-set ceiling for the gas from difficult fields, which is currently $8.43 per unit. The RIL-BP’s gas auction were influenced by a collapse in the global liquefied natural gas (LNG) market and an expected rise in supply from domestic sources over the next few years. This meant the auction ended up with rates that were close to the floor price set by the producer. ONGC is also auctioning 0.75 mmscmd on November 19.

By Bharat Suthar (MBA 1st Year - Marketing)

How to play and win by investing in insurance stock?

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Insurance stocks are now a bread in the domestic market, and are seeing heavy demand. Annual premium equivalent for private players grew 6.9% year on year in October, thanks mainly to strong performance from ICICI prudential life insurance and kotak life insurance. SBI Life insurance is the biggest gainer year to date surging 65% followed by ICICI Lombard, both of which are up 60 % and 42% respectively.
Heavy buying over the past few weeks have turned most of these stock pricey. The only insurance stock that has given negative returns year to date is govt. owned The New India Assurance whose shares have slipped as much as 20% because after rally that lifted the P.E to 107.4(TTM), investors found it pricey enough and cut corners.
Shrinivasan Subramanian, MD for investment banking at Axis capital said the huge growth potential is the reason the market is willing to pay such high prices for the insurance stocks. The market is extremely positive about the insurance sector because growth here has been extremely strong over the past 10-20 years.

By Champa Bhandarkar (MBA 1st year, Finance)

TCS to take Insurance Platform Places

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Tata Consultancy Services is doubling down on its insurance platform which has already won more than $5 billion business in last two years and is looking at newer market in Continental Europe to expand. TCS is now focusing on the open book business, so that new policies constantly replenish old ones and the number of policies being managed continues to grow. TCS expanded its contract with Phoenix Group for long term client, to include open-book policies. In 2018 TCS won an over $2 billion deal with Transamerica in the United States. TCS currently opened $4million active Policies. With this expanded Phoenix Group Project, they will take up to over $7.5million policies. Suresh Muthuswami, President of TCS BFSI Platform business, told ET. TCS manages over $40million policies worldwide. TCS have life pensions and annuities plan, now workplace is a big focus area for them. Future Plans of TCS:
1. Firm looks at other market.
2. Company studying regulatory nature of these markets.

By Avinash Shelar (MBA 1st year - Finance)

Sachin Bansal puts ₹888cr More in Navi Technologies.

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Flipkart founder Sachin Bansal has raised an additional Rs 888.5 crore into his latest venture BAC (Bank of America Corporation) Acquisitions, which has been recently renamed Navi Technologies. As per the regulatory disclosures, Bansal has picked up 6.8 crore equity shares in the company and each share has been priced at Rs 130. In September, Bansal said he has acquired a majority stake in Chaitanya Rural Intermediation Development Services, which runs a microfinance platform. Sachin Bansal picked up more than 90% in the firm, Bansal said he was taking over as its chief executive officer.
ET had already written in its February 21st edition that Bansal was getting a banking licence. His first attempt into microfinance is being seen as a step in that direction. As per the financials reported to the ministry by Navi Technologies, the company has made a profit after tax of Rs 1.9 crore on revenue of Rs 16 crore for financial year ending March 2019.

By Arun Suryawanshi (MBA 1st Year - Finance)

EOW arrests another auditor in PMC bank scam

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The Economic Offenses Wing (EOW) of Mumbai Police has arrested another auditor in connection with alleged Rs 4355 Cr PMC Bank scam. This is the eighth arrest regarding this case. On Tuesday, a senior police officer said that, Anita Kirdat, who is concurrent auditor of the Bank, was arrested on the day. He also said that, she used to do systematic and timely examination of the bank’s financial transactions. Kirdat audited bank’s transactions monthly, but could not find or she didn’t find out any irregularities in it. Again the officer said, she was called for some questioning but after that she got arrested & she will be in custody of EOW till 18th Nov. Again on Monday EOW arrested two more statutory auditors namely Ketan Lakdawala & Jayesh Sanghani, in connection with the same case, under charges of helping for hiding the irregularities in the bank’s transactions. EOW suspects some other people who are concerned with the bank & realty group HDIL.

By Akshay Thorat (MBA 1st year-Finance)

Year 2018

Banking Industry of India: The changing face

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Because of a continuous and persistent effort by the central government in improving the banking technology and promoting banking habit amongst the non-banking population of India, the Indian banking industry has been witnessing a persistent growth. During FY06–17, deposits grew at a CAGR of 12.03 per cent and reached 1.54 trillion by FY17. With the Read More

The Indian Banking System

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The Indian banking system consists of 27 public sector banks, 21 private sector banks, 45 foreign banks, 56 regional rural banks, 1,589 urban cooperative banks and 93,550 rural cooperative banks, in addition to cooperative credit institutions.   As of Q1 FY18, total credit extended by commercial banks surged to US$ 1,217.19 billion and deposits grew Read More