Today Sector News – 19.04.2018
* AUTOMOBILE: To encourage uptake of electric vehicles, the government will boost infrastructure for charging these vehicles at its own cost.
* AVIATION: Domestic airlines carried 11.60 mln passengers in March, 28% higher on year. Air India's market share was at 13.4% in March as against 13.2% in February. The company's March passenger load factor was at 83.6% as against 86.7% in February. International Airlines Group's bid for Air India is doubtful given its concerns over restructuring and government control of the national carrier.
* BANKING: In an ominous sign for banks demanding relaxation in Reserve Bank of India's revised
framework on stressed assets issued on Feb 12, Deputy Governor N.S. Vishwanathan has insisted that these norms will remove the arbitrage available on default recognition between banks and capital markets, and bring sanctity to bank loan contracts.
-The issue of cash shortage in some parts of the country was a temporary one and normalcy should return soon, senior officials of two state-owned banks said.
-In a direct reference to the pressure put on state-owned banks through phone calls from government
functionaries in New Delhi, former Securities and Exchange Board of India chairman M. Damodaran has cited this as the primary reason for the asset quality problems of public sector banks.
-The Confederation of ATM Industry has asked banks to consider charging a higher interchange rate for automated teller machine transactions as the revised RBI norms are seen increasing the cost of ATM operating companies.
-Even as government and Reserve Bank have asserted that there is no currency shortage, SBI Research today pegged the cash shortfall in the system at a whopping 700 bln rupees.
* ECONOMY: China has proposed construction of India-Nepal-China economic corridor with multidimensional connectivity through the Himalayas.
* FINANCE: The board of Mahindra Rural Housing Finance has approved the issuance of non-convertible debentures worth up to 60 bln rupees, subject to the approval of shareholders.
* FUNDS: The Department of Investment and Public Asset Management has floated request for proposal to appoint an adviser for the creation of the proposed debt-based exchange traded fund.
* METALS: India has sought consultations with the US under the World Trade Organisation's safeguard agreement against US authorities' decision to impose import duties on certain steel and aluminium products.
* RAILWAYS: The railways ministry plans to soon seek cabinet clearance to ease norms for private
investment in the railway station redevelopment programme.
* STEEL: Global demand for steel is estimated to rise 2% to 1.62 bln tn in 2018, the World Steel Association said in its short-range outlook for the year.
* TAXATION: The Income Tax Department has cautioned salaried class taxpayers against using illegal means like under-reporting of income or "inflating" deductions while filing their returns, stating violator will be prosecuted and their employers will be intimated to take action against them. India, which has recovered from disruptions caused by demonetisation and the rollout of the GST, must fully implement the new nationwide indirect tax to avoid tax revenue underperformance resulting in cuts to capital expenditures, the IMF aid.
* TELECOMMUNICATION: The Central Bureau of Investigation has challenged in the Delhi High Court the acquittal of Essar Group promoters Ravi Kant Ruia and Anshuman Ruia and six others in a case arising out of the probe in 2G scam case. Flyers will soon be able to avail data services during flights with the Telecom Commission set to approve the much-awaited proposal at its next meeting scheduled on May 1.
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* AVIATION: Domestic airlines carried 11.60 mln passengers in March, 28% higher on year. Air India's market share was at 13.4% in March as against 13.2% in February. The company's March passenger load factor was at 83.6% as against 86.7% in February. International Airlines Group's bid for Air India is doubtful given its concerns over restructuring and government control of the national carrier.
* BANKING: In an ominous sign for banks demanding relaxation in Reserve Bank of India's revised
framework on stressed assets issued on Feb 12, Deputy Governor N.S. Vishwanathan has insisted that these norms will remove the arbitrage available on default recognition between banks and capital markets, and bring sanctity to bank loan contracts.
-The issue of cash shortage in some parts of the country was a temporary one and normalcy should return soon, senior officials of two state-owned banks said.
-In a direct reference to the pressure put on state-owned banks through phone calls from government
functionaries in New Delhi, former Securities and Exchange Board of India chairman M. Damodaran has cited this as the primary reason for the asset quality problems of public sector banks.
-The Confederation of ATM Industry has asked banks to consider charging a higher interchange rate for automated teller machine transactions as the revised RBI norms are seen increasing the cost of ATM operating companies.
-Even as government and Reserve Bank have asserted that there is no currency shortage, SBI Research today pegged the cash shortfall in the system at a whopping 700 bln rupees.
* ECONOMY: China has proposed construction of India-Nepal-China economic corridor with multidimensional connectivity through the Himalayas.
* FINANCE: The board of Mahindra Rural Housing Finance has approved the issuance of non-convertible debentures worth up to 60 bln rupees, subject to the approval of shareholders.
* FUNDS: The Department of Investment and Public Asset Management has floated request for proposal to appoint an adviser for the creation of the proposed debt-based exchange traded fund.
* METALS: India has sought consultations with the US under the World Trade Organisation's safeguard agreement against US authorities' decision to impose import duties on certain steel and aluminium products.
* RAILWAYS: The railways ministry plans to soon seek cabinet clearance to ease norms for private
investment in the railway station redevelopment programme.
* STEEL: Global demand for steel is estimated to rise 2% to 1.62 bln tn in 2018, the World Steel Association said in its short-range outlook for the year.
* TAXATION: The Income Tax Department has cautioned salaried class taxpayers against using illegal means like under-reporting of income or "inflating" deductions while filing their returns, stating violator will be prosecuted and their employers will be intimated to take action against them. India, which has recovered from disruptions caused by demonetisation and the rollout of the GST, must fully implement the new nationwide indirect tax to avoid tax revenue underperformance resulting in cuts to capital expenditures, the IMF aid.
* TELECOMMUNICATION: The Central Bureau of Investigation has challenged in the Delhi High Court the acquittal of Essar Group promoters Ravi Kant Ruia and Anshuman Ruia and six others in a case arising out of the probe in 2G scam case. Flyers will soon be able to avail data services during flights with the Telecom Commission set to approve the much-awaited proposal at its next meeting scheduled on May 1.
