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1) Etihad Pushes Jet, Lenders into a Catch-22 Situation.Etihad CEO Tony Douglas tells lead lender SBI it will only pay ₹150 per share, demands Goyal’s exit, exemptions on open offer and preferential pricing norms; lenders await Jet’s counter offer.
2) SBI has put its entire loan of ₹15,431 crore to Essar Steel on sale, setting a floor price that amounts to a haircut of more than a third on the sum due and demonstrating the intent of the country’s biggest lender to get its money back at the earliest.The lender set the minimum reserve price for the loan at ₹9,588 crore. That is also at a discount to ₹11,313 crore, the amount the bank would have received if the Arcelor-Mittal resolution plan, as approved by the committee of creditors, were to finally become a reality.
3) Global equity investors have started factoring in a probability of recession within a year following dull earnings forecasts by major Wall Street companies and trend in the yield curve.The outlook for global growth has changed dramatically in the past three months as the projection of the worldwide GDP growth dropped by 50 basis point to 2.5% from 2.9% in the period.
4) India’s structured finance market, the cash conduit to lower-rated borrowers, could head into a lockdown if special purpose vehicles (SPV) of IL&FS are allowed to skip repayments to investors until bankruptcy courts resolve the debt at the infrastructure financier and its subsidiaries.
5) IIFL Finance, backed by the UK-based CDC Group, is set to raise up to ₹2,000 crore in public bond issuances as it seeks to increase the share of its long-term borrowings in its total debt.The bonds, which will open for subscriptions next Tuesday, offers as much as 10.5%, the highest among retail debt sold recently across threefive-ten-year maturities.
1) With exchange traded fund (ETF) proving to be an effective disinvestment tool even under not-so-favourable market conditions, the Centre has decided to come out with another tranche (second further fund offer or FFO) of Bharat-22 ETF this fiscal to raise at least Rs 8,000 crore.
2) After the cabinet on Wednesday approved expenditure of Rs 4,242 crore for an income tax project to be undertaken by the income tax department, the assessees would soon be provided with pre-filled return forms prompting them to only accept the details and submit the returns, bringing about a faster and more accurate process.
3) The Cabinet Committee on Economic Affairs (CCEA) on Wednesday approved a proposal to infuse Rs 6,000 crore into state-run Exim Bank in two years through FY20 to shore up the export credit agency’s capital base and raise its lending ability. The infusion will be in two tranches Rs 4,500 crore in 2018-19 (over and above the budgeted Rs 500 crore for FY19) and Rs 1,500 crore in FY20 — and will be in the form of recapitalisation bonds.
4) The growth in bank deposits inched close to double digits for the first time in over a year during the fortnight ended January 4, showed provisional data released by the RBI on Wednesday.The value of deposits with the banking system stood at Rs 120.34 lakh crore at the end of the fortnight, up 9.91% year-on-year (y-o-y).
5) DCB Bank on Wednesday reported a net profit of Rs 86.1 crore, an impressive 51% year-on-year increase, for the quarter ended December 2018. The growth in the net profit was owing to a spike in the net NII and operating income.The bank had reported a net profit of Rs 57.01 crore in the year-ago period.
1) To further improve the ease of doing business in India, the Reserve Bank of India has drawn up a new external commercial borrowing framework allowing all eligible borrowers to raise up to $750 million per financial year under the automatic route, replacing the existing sector-wise limits. The central bank has also expanded the list of eligible borrowers and recognised lenders.
2) An insolvency court in Mumbai has ordered the liquidation of Bharati Defence and Infrastructure Ltd, after rejecting the resolution plan submitted by Edelweiss Asset Reconstruction Co Ltd, stranding two dozen defence vessels and a clutch of lenders owed Rs. 11,373.40 crore by the debt-laden shipbuilder.
3) Engineering goods exports from India to the European Union are likely to be impacted in the first two months of the New Year as 90 per cent of the import quota for steel products fixed by the bloc has been exhausted and a safeguard duty of 25 per cent is set to be imposed on imports beyond the quota.
4) Non-banking financial company Northern Arc Capital announced that it has structured and credit-enhanced India’s first ‘covered bond’ transaction.NCDs issued under the covered bond structure enjoy higher ratings compared to their standalone rating since the structure gives the lender recourse to the underlying asset pool and debt that appears in the issuer’s balance sheet.
5) Bank jobs, a top priority for many job-seekers, may lose their sheen in the days to come due to the macro-economic challenges being faced by public sector banks.The number of vacancies at public sector banks, in the range of 30,000-50,000 for the last seven years, is now expected to come down, according to bankers.
1) RPower to pay Rs 300 crore for Krishnapatnam UMPP to Andhra Pradesh.Delhi HC refuses RPower plea to stop bank guarantee invocation.
2) Cabinet clears Rs 22,594-crore plan for expansion of Numaligarh refinery.The Cabinet also decided to recapitalise the Exim Bank to the tune of Rs 6,000 crore and to double the authorised capital to Rs 20,000 crore.
3) Sidbi plans to invest in late and growth-stage start-ups from its eighth fund, a Rs 7-10 billion New Horizons Fund, said a senior official. Sidbi's earlier funds focused on early-stage bets in start-ups and the MSME space.
4) The curious case of rising health, education inflation in rural areas.In rural areas, the inflation rate in health rose to 10.14% in December from in 4.7% January.
5) Indian Oil Corp may raise about $3 billion through US dollar bonds issue.IOC is already in market to raise $900 million through a bonds issue.
1) India to bar private refiners from tapping Iran oil quota.The govt has asked its four state refiners led by Indian Oil Corp. to share the entire 9 millions barrels of Iranian oil available every month under a 180-day waiver from US sanctions.
2) Posh Amrapali flats booked for just Re 1 per sq ft, auditors tell Supreme Court.The audit found that 23 companies were floated in the name of office boys, peons and drivers and these firms were part of Amrapali consortium and were made fronts to divert home buyers’ money.
3) Baring PE Asia may buy NIIT at up to ₹10,000 crore valuation.Post the acquisition, Baring PE Asia plans to merge NIIT Technologies with Hexaware Technologies.
4) Bond slide in India reflects fiscal jitters about farm stimulus.While the government has yet to outline its farm-relief package, media reports have pegged the cost at as much as 3 trillion rupees.
5) Theresa May wins confidence vote, Brexit is still in crisis.UK PM Theresa May has fought off the threat of an immediate national election and won the right to continue running the country when the House of Commons voted 325 to 306 against a motion of ‘no confidence’ in her administration.