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Showing posts from July, 2022

PNB, 3 other PSU banks activate account aggregator system

Public sector lender Punjab National Bank (PNB) has gone live on the account aggregator ecosystem as financial information user (FIU) as well as financial information provider (FIP), the lender said in a press release. Other than PNB, Union Bank of India, Canara Bank and Indian Bank are the three other PSU lenders who have connected to the account aggregator system. “Punjab National Bank is working on multiple business use cases which can leverage on the account aggregator ecosystem and offer interesting products to its customers. This will further enhance the outreach of the bank to provide customized digital products to its customers,” Atul Kumar Goel, managing director and chief executive officer of PNB said. Other PSU lenders are in various stages of implementing the process of connecting to the account aggregator system. While State Bank of India (SBI), Bank of Baroda and UCO Bank are in the testing phase, Indian Overseas Bank, Punjab and Sind Bank, Bank of India and Bank of Mah...
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Lenders may seek review: Banks stare at 8% recovery from first NARCL sale

India’s bad bank has offered to buy the first toxic asset at just 8% of its outstanding loan value, a deal unhappy lenders are planning to negotiate in the hope that the recovery gets better, said two bankers in the know. According to the bankers cited above, the National Asset Reconstruction Company (NARCL) has bid about Rs 80-85 crore for Rainbow Papers, a non-performing asset which owes banks Rs 1,100 crore. The consortium is led by Indian Overseas Bank (IOB), which is planning to hold a meeting with other member banks to take a call on the future course of action. “A meeting had been planned for last week, but that got cancelled. IOB is expected to convene another meeting where banks will decide how to go ahead with the resolution. They want to conclude it by end-August,” said one of the bankers. Emails seeking responses from NARCL and IOB remained unanswered till the time of going to press. According to the last available annual report for Rainbow Papers for FY18, other banker...
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Coal India inducts Debasish Nanda as director for business development

Coal India (CIL) has inducted a director for business development on its board — a move that will aid its diversification plan. Debasish Nanda, who assumed charge as director-business development on July 11 will continue with the charge “till the date of his superannuation (May 31, 2025) or until further orders whichever is earlier,” CIL informed the stock exchanges. Before joining the company, Nanda was executive director at Indian Oil Corporation. CIL also announced the name of 11 other directors, of which 6 are independent. According to sources, Nanda will likely look into new business verticals, which the PSU miner is entering into. CIL has already formed joint ventures with Hindustan Urvarak Rasayan and Talcher Fertilizers for fertiliser manufacturing. The company is also diversifying into aluminium production, solar power production, thermal power production and coal gasification. These projects are at various stages of development. CIL has firmed up plans to import thermal c...
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Banks to report Rs 13,000-crore MTM losses in Q1 on rising bond yields: Icra

Rising bond yields will force banks to report mark-to-market losses of up to Rs 13,000 crore on their investment portfolios in the April-June quarter, a report by Icra said on Tuesday. Profits will moderate for the quarter, but improved loan growth and operating profits will ensure that banks’ bottom lines remain “steady” for FY23, the report said. The effect of the treasury losses will be felt more by public sector banks as they hold a higher share of government securities (G-Secs) of longer tenure. Public sector banks are expected to face mark-to-market (MTM) losses to the tune of Rs 8,000-10,000 crore, according to Icra estimates, while private banks may report MTM losses of Rs 2,400-3,000 crore in Q1FY23. “If the yields harden substantially going forward, there could be a sequential moderation in the net profits in FY23,” Anil Gupta, vice-president of Icra, said. Despite the headwind caused by the treasury losses on banks’ profitability, its effect will be offset by improvement...
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Soaring raw material costs posed fresh challenge in FY22, says MRF

After battling pandemic-induced difficulties, tyre major MRF faced the challenge of soaring input costs in FY22. The increase in the costs of raw materials was unprecedented as it happened continuously for months together, forcing the company to go for multiple price hikes, it said in its annual report. “The Ukraine war has not helped either as some of the raw materials became unavailable and costlier,” KM Mammen, chairman & MD, MRF, told shareholders. He further said the surge in fuel costs affected consumer demand, particularly in two-wheeler tyres and to some extent in passenger ones. Besides, the automobile industry faced its own challenges, the foremost being the shortage of semiconductors for vehicles. “This brought down the production of vehicles in many cases, thus bringing down the volume of our institutional sales. However, the commercial vehicle movement has been brisk for most part of the year and this has lessened our discomfort on the selling front,” Mammen said. M...
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OMCs to post combined loss of Rs 10,700 crore in Q1 due to retail losses: ICICI Securities

State-run oil marketing companies – Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum – may post a combined loss of Rs 10,700 crore in the first quarter of the current fiscal, ICICI Securities said on Monday. The brokerage firm said the loss will be due to selling transport fuels at a loss of Rs 12-14 per litre even as there gross refining margins (GRMs) will remain fairly strong at $17-18 per barrel. “We estimate GRMs to remain fairly strong at US$17-18/bbl levels (factoring-in inventory loss of US$0.1-0.2/bbl) and marketing volume growth of 17-20%, thanks to continued recovery in prospects and a weaker base. Yet, the sharply higher retail losses of ~ Rs 12/ltr in petrol + diesel combine to drive an EBITDA loss of Rs 66 bn and a net loss of Rs 107 bn for the OMCs in Q1FY23E,” ICICI Securities said. Going forward, with some decline seen in crude in the last 2-3 days and the resultant dip in key product spreads as well, some respite will be forthcoming for the marketin...
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BoB hikes MCLR, BoM cuts the same

Bank of Baroda on Monday increased the marginal cost of funds-based lending rates (MCLR) on some tenures by 10-15 basis points (bps), effective July 12. BoB has increased its one-year MCLR by 15 bps to 7.65%, the lender said in an exchange filing. The increase in the MCLR by BoB for July was steeper compared with June, when the bank had raised the one-year MCLR by 10 bps. The bank has kept overnight and one-month MCLR unchanged at 6.80% and 7.20% respectively. The 3-month and 6-month MCLR have been raised by 10 bps each to 7.35% and 7.45%, respectively. Meanwhile, Bank of Maharashtra reduced its MCLR by 20-35 bps across tenures. The bank cut its one-year MCLR by 20 bps to 7.50% in July from 7.70% in the previous month. The bank’s one-year MCLR for June was one of the highest among public sector banks, according to RBI data. The bank’s shorter duration MCLRs for July are in the range of 6.90% to 7.40%. In FY22, the bank’s deposits stood at Rs 2.02 trillion while current account, savi...
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Your Money: Tips to deal with costlier home loans

Historically low interest rates are history for now. The recent RBI hike of repo rates by 90 basis points will impact new home loan borrowers the most as they have just started their repayment journey, and their loan tenor is long. Since most home loans are taken on the floating interest rate these days, borrowers will have to face an increase in their loan tenors. Recent home loan borrowers had taken home loans at rock-bottom rates, such as 6.5% for home loans, but this golden period of low-interest rates has ended. The loan tenor and EMIs will increase with more hikes in repo rates in the future. What should new borrowers do now? Don’t panic We’ve exited an era of falling rates. We’re entering an era of rising rates and inflation. At some point, inflation will fall, and interest rates will reverse again. So avoid panicky decisions. This is key. Interest rates are cyclic, and these ups and downs are unavoidable. But thankfully, with most floating-rate loans, the EMIs don’t change. T...
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Smart borrower: You can easily keep tabs on your home loan

Repaying a home loan is a long and expensive commitment, and keeping track of your home loan can help you spot hidden charges, accomplish the loan’s timely repayment, and save money in the long run. Here are some actions that can help you stay on top of your home loan with ease. Visit your online loan portal When your loan is disbursed, the bank gives you access to the home loan portal. This portal comes with a number of tools that help you track your EMI repayment, know about the existing and past interest rates levied on the loan, outstanding amount, and other details related to your home loan. Each time there are any revisions to your loan—be it the interest rate or the terms and conditions—it is reflected here. Check your loan statement The loan account allows you to access a statement of accounts which contains the details of the loan from the time it started. Checking the statement regularly helps track what you have already paid and what is outstanding. You will know whether y...
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Your Queries – Income Tax: No capital loss on shares delisted but not extinguished

By Chirag Nangia I bought 1500 shares of DHFL during 2015-2016. Post the resolution, DHFL shares are not listed now, and my investment value is zero. Can I claim a long term capital loss? —P V Krishna Capital loss or gain can be booked only when any ‘transfer’ of a capital asset takes place. Pertinently, transfer also includes extinguishment of the rights in the asset. Besides actual transfer (sale) of an asset, the term ‘transfer’ includes extinguishment of the rights in the asset. Since the shares have only been delisted and are still in existence, they cannot be said to have been extinguished or transferred and hence there can be no capital gain or loss. Although the investment in the shares seems to be completely irrecoverable and is actual loss, you cannot claim this loss as the shares have neither been extinguished nor transferred by you. Pertinently, loss can be claimed only when the company goes into liquidation, or the shares are actually transferred by you to another perso...
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Smartwatches: Wired to your health and activity

Why are people buying smartwatches in hordes these days? Seasoned industry watchers attribute the market growth to the rising internet penetration and smartphone sales. Also, there is growing health awareness among individuals as a result of the increasing occurrence of chronic and lifestyle illnesses. Smartwatches are linked to fitness apps that can provide detailed information about an individual’s overall health and track their dietary health. You need not buy the latest Apple Watch, Fitbit or Samsung Galaxy Watch to keep a tab on your health and fitness levels—there are plenty of less-expensive offerings well within the reach of the average person. We pick two such devices. Boult Audio Drift The Boult Audio smartwatch range— Drift (our trial unit) and Cosmic—is packed with loads of health indicators such as heart rate sensor, steps count, blood oxygen monitor, and periods monitoring. Boult Drift smartwatch has 1.69-inch screen size and is said to be the only smartwatch to offer Bl...
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India vs England, T20 International: Men in Blue lose third T20 despite Suryakumar Yadav masterclass

Suryakumar Yadav gave a 360 degree masterclass enroute to a special hundred but England pulled off a consolatory 17-run win over India in the third T20 International here on Sunday. Dawid Malan made a sublime 77 off 39 balls as England put India’s second string attack to sword to finish with a mammoth 215 for seven. Surykumar (117 off 55 balls) kept India in the hunt with his classy effort but lacked support from other batters while chasing the huge target. India’s innings ended at 198 for nine in 20 overs. India sealed the three-match series 2-1, having won in Southampton and Birmingham. India were on the backfoot at the start of the run chase, struggling to 31 for three in five overs. Openers Rohit Sharma (11) and Rishabh Pant (1) perished cheaply and it was another failure for Virat Kohli (11), who was caught at cover while trying to manufacture a third consecutive hit after collecting a four and a straight six off David Willey. Suryakumar brought India back into the game wit...
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Single-use plastic ban: The big menace of microplastics

By Shubhangi Shah While the government’s move to ban single-use plastic items starting July 1 is a step in the right direction, the menace of plastic is much larger, or should we say too small to even be detected by the naked eye. These are microplastics, the tiny plastic particles that form as a result of degradation of larger items, and also manufactured for specific industrial purposes. Some are as small as a few mm in size, and some are so small that they are visible only under a microscope. And this makes them a threat of gargantuan proportions. Because so omnipresent is plastic on the planet now that these tiny particles have even found their way to places unimaginable—from the bodies of marine organisms to Arctic and Antarctic snow, and from the deepest reaches of seas and oceans to the human bloodstream. In an alarming discovery earlier this year, a group of scientists from the Netherlands found these tiny plastic particles in the human bloodstream. For this study, they c...
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Book Review — CEO Excellence: The Six Mindsets that Distinguish the Best Leaders from the Rest by Carolyn Dewar, Scott Keller & Vikram Malhotra

It is agreed that CEOs are the pivot of any organisation and often their names are associated with the success of the company. This is understandable as they take the responsibility of delivering shareholder value and also tend to be the highest paid personnel. Interestingly, it has been found that among Fortune 500s CEOs, around 30% last less than three years. And, more significantly, two of five CEOs fail within the first 18 months. Dewar, Keller and Malhotra from McKinsey & Co, in their book titled CEO Excellence, tell us more on this subject after interviewing around 67 of these leaders from a pool of 2,400 companies that were scanned for this purpose. These include the heads of Sony, Microsoft, JP Morgan, Netflix and their like. So. what did they find? To simplify their findings, they believe that there are six responsibilities of CEOs that sort of make or break them. The book focuses on these six areas of responsibility for CEOs. The first is what they call ‘setting the di...
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Easy drinking: Homegrown brands tapping into hard seltzers

Are you fond of social gatherings but want to focus less on alcohol, not to mention have mornings less clouded by its after-effects? Hard seltzer, a beverage that combines alcohol with flavoured carbonated water, could be a good option for you. It is said to be refreshing, far lower in calories than beer or wine and low on alcohol content. Hard seltzers have diversified the alcoholic beverage sector and are addressing a shift in consumer behaviour towards low alcohol by volume (ABV) content, fuelling a demand in the ready-to-drink (RTD) market as well. Hard seltzer is gluten-free, low in calories and a less stressful approach to drinking. As a result, it is gaining popularity among the health-conscious consumers. It is a carbonated or sparkling beverage, with almost 5% ABV and made from brewed cane sugar or malted rice, along with soda water, and flavoured with lemons, watermelons, strawberry, passionfruit, pomegranate and tangerine. According to the International Wine and Spirits R...
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Bird of honour: Women empowerment & saving endangered birds in this Assam village

Naini Rajbonshi didn’t know how to weave a cloth until four years ago. But a hand-operated loom sitting in a thatched hut adjacent to her home today tells an inspiring story of struggle and survival—not only of her own, but also of dozens of large birds flying in the sky above her picturesque village. “The weaving work has given me a lot of respect in my family and village,” beams Rajbonshi, who was a homemaker before she joined a movement by women to save an endangered bird species in Assam’s Dadara village on the outskirts of Guwahati. The famous Assamese white and red scarf, locally called gamusa, woven by Rajbonshi and a few other women in Dadara is a tourists’ favourite for its bird motifs. “This work has also given me an opportunity to inspire others to conserve our environment,” she adds. The passion and inspiration that Rajbonshi and other women in her village exude come from a desire to save the greater adjutant, a rare stork with a dangling inflatable air sack under its nec...
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Web5: Future of internet?

By Shubhangi Shah As we are still wrapping our heads around Web3, with its blockchain, metaverse, and digital avatars , technologies that still seem futuristic, Twitter founder and former chief Jack Dorsey is already speaking of a Web5. The announcement was made during a Web3 festival last month. It is his vision of a decentralised future web that is run on Bitcoin, with user data and identity at the heart of it. Post the announcement, Dorsey said, “This will likely be our most important contribution to the internet.” The project is being developed by The Block Head (TBD), the Bitcoin unit of Dorsey’s Block, a financial payments and digital payments company that he founded with billionaire businessman Jim McKelvey. What are Web 1, 2, & 3? Before delving into Web 5, let’s go through its predecessors. Web 1 can be termed as the first-generation internet, the read-only type that consisted of static web pages with a passive, one-way engagement. Then came Web 2, which possessed the ab...
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Animal love: Must-watch films for pet lovers

The recently released film 777 Charlie has been raking in the good reviews as it talks about Charlie, a labrador dog. The Kannada adventure comedy also stars Rakshit Shetty, Sangeetha Sringeri, Danish Sait among others. In the film, the dog Charlie gives a lonely man a new meaning and purpose in life. There have been several such films that talk about pets and enjoy a huge fandom. Here is a list of must-watch films for animal lovers. 101 Dalmatians An adaptation of Walt Disney’s 1961 animated film of the same name, 101 Dalmatians that released in 1996 is an adventure comedy. The film series is an adaptation of the 1956 novel The Hundred and One Dalmatians by Dodie Smith. The film stars Glenn Close, Jeff Daniels, Joely Richardson, Joan Plowright, among others. The film became one of the highest grossing films of 1996. The film and its cast were nominated for the BAFTA Award and the Golden Globe Award. In the film, two dogs unite as their masters fall in love. Together, they give birth ...
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