Credit Suisse Shares No Longer Fit For New York Listing

Battered shares in crisis-hit Credit Suisse no longer meet criteria for listing on the New York Stock Exchange, the bank said Wednesday, adding that its upcoming sale to UBS would resolve the issue.

"The New York Stock Exchange notified Credit Suisse on May 1... that it is no longer in compliance with the NYSE's continued listing minimum price criteria," Credit Suisse said in a statement.

Credit Suisse is listed in New York under a "Depositary Shares" scheme that allows foreign firms to sell stock in the United States.

Under NYSE rules, shares must trade for at least $1.00 for 30 consecutive days to qualify for listing.

But the financial firm, whose share price crumbled under the pressure of fears of contagion from the collapse of three US regional banks, is slated to be taken over by historic rival UBS in a rescue organised by Bern.

Since the deal, the share price has hovered around 0.76 Swiss francs ($0.83) -- in line with the three-billion-franc valuation for the acquisition and down around 94 percent compared with March 2021, before Credit Suisse was hit by a string of shocks and scandals.

"Credit Suisse expects that the deficiency will be cured upon completion of the acquisition by UBS," which will mean its own shares are exchanged for UBS stock and delisted in New York, the statement said.

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)

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Credit Suisse Shares No Longer Fit For New York Listing

Battered shares in crisis-hit Credit Suisse no longer meet criteria for listing on the New York Stock Exchange, the bank said Wednesday, adding that its upcoming sale to UBS would resolve the issue.

"The New York Stock Exchange notified Credit Suisse on May 1... that it is no longer in compliance with the NYSE's continued listing minimum price criteria," Credit Suisse said in a statement.

Credit Suisse is listed in New York under a "Depositary Shares" scheme that allows foreign firms to sell stock in the United States.

Under NYSE rules, shares must trade for at least $1.00 for 30 consecutive days to qualify for listing.

But the financial firm, whose share price crumbled under the pressure of fears of contagion from the collapse of three US regional banks, is slated to be taken over by historic rival UBS in a rescue organised by Bern.

Since the deal, the share price has hovered around 0.76 Swiss francs ($0.83) -- in line with the three-billion-franc valuation for the acquisition and down around 94 percent compared with March 2021, before Credit Suisse was hit by a string of shocks and scandals.

"Credit Suisse expects that the deficiency will be cured upon completion of the acquisition by UBS," which will mean its own shares are exchanged for UBS stock and delisted in New York, the statement said.

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)

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India To Emerge As Key Driver Of Asian, Global Growth: Morgan Stanley

India, under Prime Minister Narendra Modi, has transformed, gaining a position in the world order and becoming a key driver for Asia and global growth, said Morgan Stanley.

In a report, Morgan Stanley said significant scepticism about India, particularly with overseas investors, ignores the significant changes that have taken place in India, especially since 2014.

India of today, the report said, is different from what it was in 2013.

"This India is different from what it was in 2013. In a short span of 10 years, India has gained positions in the world order with significant positive consequences for the macro and market outlook," it said. "India has transformed in less than a decade."

Listing the 10 big changes that have happened since Prime Minister Narendra Modi took office in 2014, the brokerage said bringing corporate tax at par with peers and infrastructure investment picking pace are one of the biggest supply-side policy reforms.

Also, the rising collection of GST -- the uniform tax that replaced more than a dozen different central and state taxes -- and the rising share of digital transactions as a percentage of GDP indicate the formalisation of the economy.

Transfer of subsidies to accounts of beneficiaries, insolvency and bankruptcy code, flexible inflation targeting, focus on FDI, government support for corporate profits, a new law for real estate sector and MNC sentiment at multi-year high were other significant changes, it said.

Manufacturing and capital spending as a percentage of GDP has continuously risen, Morgan Stanley said, adding export market share is projected to more than double to 4.5 per cent by 2031.

India, according to the report, "will emerge as a key driver for Asia and global growth." On the skepticism about India, particularly with overseas investors, who say India has not delivered its potential -- despite it being the second-fastest growing economy and among the top-performing stock markets over the past 25 years -- and that equity valuations are too rich, it said, such a view ignores the significant changes that have taken place in India, especially since 2014.

The report highlighted the 10 big changes, including supply-side policy reforms, formalisation of the economy, Direct Benefit Transfer, Insolvency and Bankruptcy Code, focus on FDI and flexible inflation targeting. These changes are because of India's policy choices, and their implications for its economy and market.

As a result, the report expects a new cycle in manufacturing and capex, as the share of both will rise in GDP. It also estimates that India's export market share will rise to 4.5 per cent by 2031, nearly 2 times from 2021 levels, with broadbased gains across goods and services exports and there would be a major shift in consumption basket.

"As India's per capita income increases from USD 2,200 currently to about USD 5,200 by F2032, this will have major implications for change in the consumption basket, with an impetus to discretionary consumption," it said.

In a matter of a few years, India has also become the global leader in digital transactions and real-time payments.

As per the report, inflation would remain benign and less volatile, which would imply shallower rate cycles and benign trend in current account deficit.

The share of profits in GDP has doubled from all-time lows in 2020 and are set to rise further – maybe even double from here– leading to strong absolute and relative earnings, it said, adding, this explains India's apparently rich headline equity valuations.

As India's reliance on global capital market flows has reduced, the market's sensitivity to a US recession and US Fed rate changes also seems to be fading, it added.

The report said, a global recession, a fragmented general election outcome in 2024, sharp rise in commodity prices due to supply outages and shortages in skilled labour supply are key risks to India's growth.
 

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India To Emerge As Key Driver Of Asian, Global Growth: Morgan Stanley

India, under Prime Minister Narendra Modi, has transformed, gaining a position in the world order and becoming a key driver for Asia and global growth, said Morgan Stanley.

In a report, Morgan Stanley said significant scepticism about India, particularly with overseas investors, ignores the significant changes that have taken place in India, especially since 2014.

India of today, the report said, is different from what it was in 2013.

"This India is different from what it was in 2013. In a short span of 10 years, India has gained positions in the world order with significant positive consequences for the macro and market outlook," it said. "India has transformed in less than a decade."

Listing the 10 big changes that have happened since Prime Minister Narendra Modi took office in 2014, the brokerage said bringing corporate tax at par with peers and infrastructure investment picking pace are one of the biggest supply-side policy reforms.

Also, the rising collection of GST -- the uniform tax that replaced more than a dozen different central and state taxes -- and the rising share of digital transactions as a percentage of GDP indicate the formalisation of the economy.

Transfer of subsidies to accounts of beneficiaries, insolvency and bankruptcy code, flexible inflation targeting, focus on FDI, government support for corporate profits, a new law for real estate sector and MNC sentiment at multi-year high were other significant changes, it said.

Manufacturing and capital spending as a percentage of GDP has continuously risen, Morgan Stanley said, adding export market share is projected to more than double to 4.5 per cent by 2031.

India, according to the report, "will emerge as a key driver for Asia and global growth." On the skepticism about India, particularly with overseas investors, who say India has not delivered its potential -- despite it being the second-fastest growing economy and among the top-performing stock markets over the past 25 years -- and that equity valuations are too rich, it said, such a view ignores the significant changes that have taken place in India, especially since 2014.

The report highlighted the 10 big changes, including supply-side policy reforms, formalisation of the economy, Direct Benefit Transfer, Insolvency and Bankruptcy Code, focus on FDI and flexible inflation targeting. These changes are because of India's policy choices, and their implications for its economy and market.

As a result, the report expects a new cycle in manufacturing and capex, as the share of both will rise in GDP. It also estimates that India's export market share will rise to 4.5 per cent by 2031, nearly 2 times from 2021 levels, with broadbased gains across goods and services exports and there would be a major shift in consumption basket.

"As India's per capita income increases from USD 2,200 currently to about USD 5,200 by F2032, this will have major implications for change in the consumption basket, with an impetus to discretionary consumption," it said.

In a matter of a few years, India has also become the global leader in digital transactions and real-time payments.

As per the report, inflation would remain benign and less volatile, which would imply shallower rate cycles and benign trend in current account deficit.

The share of profits in GDP has doubled from all-time lows in 2020 and are set to rise further – maybe even double from here– leading to strong absolute and relative earnings, it said, adding, this explains India's apparently rich headline equity valuations.

As India's reliance on global capital market flows has reduced, the market's sensitivity to a US recession and US Fed rate changes also seems to be fading, it added.

The report said, a global recession, a fragmented general election outcome in 2024, sharp rise in commodity prices due to supply outages and shortages in skilled labour supply are key risks to India's growth.
 

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RBI's Upcoming Payment System Is No-Frills, Lightweight: 5 Facts

1.  The payment system is expected to be "bunker-like" lightweight and portable, using minimal hardware and software. It will only be activated when needed, such as during a natural disaster or other catastrophic event.
2. The system would process transactions that are critical to the stability of the economy, such as government and market-related transactions. This would help to ensure that the economy is able to function smoothly and that there is no disruption to the flow of money.
3. "Having such a resilient system is also likely to act as a bunker equivalent in payment systems and thereby enhance public confidence in digital payments and financial market infrastructure even during extreme conditions," the RBI Annual Report for 2022-23 read.
4. The payment systems in India, such as UPI, RTGS, and NEFT, are designed to handle large volumes of transactions and ensure continuous availability. However, they rely on complex wired networks and advanced IT infrastructure. The new system is designed to be used in extreme and volatile situations, such as natural disasters and war.
5. The central bank's report highlighted the need for preparedness in the face of extreme and volatile situations. The report noted that such situations can have a significant impact on the economy and financial system.

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RBI's Upcoming Payment System Is No-Frills, Lightweight: 5 Facts

1.  The payment system is expected to be "bunker-like" lightweight and portable, using minimal hardware and software. It will only be activated when needed, such as during a natural disaster or other catastrophic event.
2. The system would process transactions that are critical to the stability of the economy, such as government and market-related transactions. This would help to ensure that the economy is able to function smoothly and that there is no disruption to the flow of money.
3. "Having such a resilient system is also likely to act as a bunker equivalent in payment systems and thereby enhance public confidence in digital payments and financial market infrastructure even during extreme conditions," the RBI Annual Report for 2022-23 read.
4. The payment systems in India, such as UPI, RTGS, and NEFT, are designed to handle large volumes of transactions and ensure continuous availability. However, they rely on complex wired networks and advanced IT infrastructure. The new system is designed to be used in extreme and volatile situations, such as natural disasters and war.
5. The central bank's report highlighted the need for preparedness in the face of extreme and volatile situations. The report noted that such situations can have a significant impact on the economy and financial system.

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RBI Working On Payment System For Transactions During Catastrophic Events

Reserve Bank of India is working on a light weight and portable payment system, a "bunker equivalent in payment systems", that can be used for critical transactions during catastrophic events like natural calamities and war.

The proposed Light weight and Portable Payment System (LPSS) will be independent of conventional technologies and can be operated from anywhere by a bare minimum staff, according to the central bank.

Existing conventional payment systems like RTGS (Real Time Gross Settlement), NEFT (National Electronic Funds Transfer) and UPI (Unified Payments Interface) are designed to handle large volumes while ensuring sustained availability. These systems are dependent on complex wired networks backed by advanced IT infrastructure.

However, catastrophic events like natural calamities and war have the potential to render these payment systems temporarily unavailable by disrupting the underlying information and communication infrastructure, RBI said in its latest annual report released on Tuesday.

"Therefore, it is prudent to be prepared to face such extreme and volatile situations," it said.

Keeping this objective in mind, RBI has conceptualised the LPSS that will be independent of conventional technologies and can be operated from anywhere by a bare minimum staff.

"It is expected to operate on minimalistic hardware and software and would be made active only on a need basis. It would process transactions that are critical to ensure stability of the economy such as government and market related transactions," RBI said.

Such a system, the central bank said could ensure near zero downtime of payment and settlement system in the country. It will also help keep the liquidity pipeline of the economy alive and intact by facilitating uninterrupted functioning of essential payment services like bulk payments, interbank payments and provision of cash to participant institutions.

"Having such a resilient system is also likely to act as a bunker equivalent in payment systems and thereby enhance public confidence in digital payments and financial market infrastructure even during extreme conditions," RBI said.

During 2022-23, the payment and settlement systems recorded a robust growth of 57.8 per cent in terms of transaction volume on top of the expansion of 63.8 per cent recorded in the previous year.

The share of digital transactions in the total volume of non-cash retail payments increased to 99.6 per cent during 2022-23, up from 99.3 per cent in the previous year.
 

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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Unemployment Rate Dips To 6.8% In January-March 2023: Report

The unemployment rate for persons aged 15 years and above in urban areas declined to 6.8 per cent during January-March 2023 from 8.2 per cent a year ago, the National Sample Survey Survey (NSSO) showed.

Joblessness or unemployment rate is defined as the percentage of unemployed persons in the labour force.

Joblessness was high in January-March 2022, mainly due to the staggering impact of Covid-related restrictions in the country.

The unemployment rate in July-September 2022 and October-December 2022 was 7.2 per cent only. It was 7.6 per cent in April-June 2022.

The unemployment rate (UR) for persons aged 15 years and above in April-June 2022 was 7.6 per cent in urban areas, the 18th Periodic Labour Force Survey (PLFS) showed.

In January-March 2022, the unemployment rate was 8.2 per cent.

It also showed that the unemployment rate among females (aged 15 years and above) in urban areas declined to 9.2 per cent in January-March 2023 from 10.1 per cent in the same quarter a year ago. It was 9.6 per cent in October-December 2022, 9.4 per cent in July-September 2022 and 9.5 per cent in April-June 2022.

Among males, the unemployment rate in urban areas dipped to six per cent in January-March 2023 compared to 7.7 per cent in the same quarter a year ago. It was 6.5 per cent in October-December 2022, 6.6 per cent in July-September 2022 and 7.1 per cent in April-June 2022.

Labour force participation rate in CWS (Current Weekly Status) in urban areas for persons aged 15 years and above increased to 48.5 per cent in the January-March quarter of 2023, from 47.3 per cent in the same period a year ago. It was 48.2 per cent in October-December 2022, 47.9 per cent in July-September 2022 and 47.5 per cent in April-June 2022.

Labour force refers to the part of the population, which supplies or offers to supply labour for pursuing economic activities for the production of goods and services and, therefore, includes both employed and unemployed persons.

NSSO launched PLFS in April 2017. On the basis of PLFS, a quarterly bulletin is brought out giving estimates of labour force indicators namely unemployment rate, Worker Population Ratio (WPR), Labour Force Participation Rate (LFPR), distribution of workers by broad status in employment and industry of work in CWS.

The estimates of unemployed persons in CWS give an average picture of unemployment in a short span of seven days during the survey period. In the CWS approach, a person is considered unemployed if he/she did not work even for one hour on any day during the week but sought or was available for work at least for one hour on any day during the period.

Labour force, according to CWS, is the number of persons either employed or unemployed on average in a week preceding the date of the survey. LFPR is defined as the percentage of the population in the labour force.

The WPR (in per cent) in CWS in urban areas for persons aged 15 years and above stood at 45.2 per cent in January-March 2023, up from 43.4 per cent in the same period a year ago. It was 44.7 per cent in October-December 2022, 44.5 per cent in July-September 2022 and 43.9 per cent in April-June, 2022.

The present quarterly bulletin is the eighteenth in the series for the quarter January-March 2023.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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Unemployment Rate Dips To 6.8% In January-March 2023: Report

The unemployment rate for persons aged 15 years and above in urban areas declined to 6.8 per cent during January-March 2023 from 8.2 per cent a year ago, the National Sample Survey Survey (NSSO) showed.

Joblessness or unemployment rate is defined as the percentage of unemployed persons in the labour force.

Joblessness was high in January-March 2022, mainly due to the staggering impact of Covid-related restrictions in the country.

The unemployment rate in July-September 2022 and October-December 2022 was 7.2 per cent only. It was 7.6 per cent in April-June 2022.

The unemployment rate (UR) for persons aged 15 years and above in April-June 2022 was 7.6 per cent in urban areas, the 18th Periodic Labour Force Survey (PLFS) showed.

In January-March 2022, the unemployment rate was 8.2 per cent.

It also showed that the unemployment rate among females (aged 15 years and above) in urban areas declined to 9.2 per cent in January-March 2023 from 10.1 per cent in the same quarter a year ago. It was 9.6 per cent in October-December 2022, 9.4 per cent in July-September 2022 and 9.5 per cent in April-June 2022.

Among males, the unemployment rate in urban areas dipped to six per cent in January-March 2023 compared to 7.7 per cent in the same quarter a year ago. It was 6.5 per cent in October-December 2022, 6.6 per cent in July-September 2022 and 7.1 per cent in April-June 2022.

Labour force participation rate in CWS (Current Weekly Status) in urban areas for persons aged 15 years and above increased to 48.5 per cent in the January-March quarter of 2023, from 47.3 per cent in the same period a year ago. It was 48.2 per cent in October-December 2022, 47.9 per cent in July-September 2022 and 47.5 per cent in April-June 2022.

Labour force refers to the part of the population, which supplies or offers to supply labour for pursuing economic activities for the production of goods and services and, therefore, includes both employed and unemployed persons.

NSSO launched PLFS in April 2017. On the basis of PLFS, a quarterly bulletin is brought out giving estimates of labour force indicators namely unemployment rate, Worker Population Ratio (WPR), Labour Force Participation Rate (LFPR), distribution of workers by broad status in employment and industry of work in CWS.

The estimates of unemployed persons in CWS give an average picture of unemployment in a short span of seven days during the survey period. In the CWS approach, a person is considered unemployed if he/she did not work even for one hour on any day during the week but sought or was available for work at least for one hour on any day during the period.

Labour force, according to CWS, is the number of persons either employed or unemployed on average in a week preceding the date of the survey. LFPR is defined as the percentage of the population in the labour force.

The WPR (in per cent) in CWS in urban areas for persons aged 15 years and above stood at 45.2 per cent in January-March 2023, up from 43.4 per cent in the same period a year ago. It was 44.7 per cent in October-December 2022, 44.5 per cent in July-September 2022 and 43.9 per cent in April-June, 2022.

The present quarterly bulletin is the eighteenth in the series for the quarter January-March 2023.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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Rupee Falls 4 Paise To 82.67 Against US Dollar

The rupee depreciated by 4 paise to 82.67 against the US dollar in early trade on Tuesday, tracking a strong American currency against major rivals overseas.

Forex traders said downward movement in crude price and inflows of foreign funds, however, capped the fall in the Indian currency.

Meanwhile, the dollar strengthened as investors were upbeat on the tentative agreement between US President Joe Biden and Republican House Speaker Kevin McCarthy on the debt ceiling, which is likely to face voting on Wednesday before getting sealed.

Traders were also keeping an eye on the US non-farm payroll (NFP) data to be released on Friday.

"Rupee traded in a narrow range and volatility remained low as most market participants remained on the sidelines following US market holiday. On the other hand, the dollar was weighed down after preliminary talks between the Republicans and Democrats sailed through.

"Today, focus will be on the consumer confidence number from the US and that is likely to trigger volatility for the dollar; more updates on the debt ceiling vote will also be important to watch. We expect the USDINR (Spot) to trade sideways and quote in the range of 82.40 and 82.80," said Gaurang Somaiya, FX and bullion analyst at Motilal Oswal.

At the interbank foreign exchange, the domestic unit opened flat at 82.63 against the dollar and hit the lowest level of 82.69. Later, it touched 82.67, registering a fall of 4 paise over its previous close.

On Monday, the rupee closed at 82.63 against the US currency.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.09 per cent to 104.30.

Brent crude futures, the global oil benchmark, fell 0.61 per cent to USD 76.60 per barrel.

In the domestic equity market, the 30-share BSE Sensex advanced 123.87 points or 0.20 per cent to 62,970.25. The broader NSE Nifty was up 35.50 points or 0.19 per cent to 18,634.15.

Foreign Institutional Investors (FIIs) were net buyers in the capital market on Monday as they purchased shares worth Rs 1,758.16 crore, according to exchange data.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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Stock Markets Continue To Rally In Early Trade For 4th Day Running

Equity benchmark indices maintained their winning streak for the fourth day running on Tuesday, helped by continuous foreign fund inflows.

The 30-share BSE Sensex climbed 131.32 points to 62,977.70 in early trade. The NSE Nifty advanced 49.6 points to 18,648.25.

From the Sensex pack, ITC, UltraTech Cement, Kotak Mahindra Bank, HCL Technologies, NTPC, Titan, Bharti Airtel, Bajaj Finance, Larsen & Toubro and Reliance Industries were the biggest gainers.

Nestle, Tata Steel, HDFC, Tata Consultancy Services and HDFC Bank were the laggards.

In Asian markets, Tokyo, Shanghai and Hong Kong were trading lower, while Seoul quoted in the green.

Foreign Institutional Investors (FIIs) were net buyers on Monday as they bought equities worth Rs 1,758.16 crore, according to exchange data.

"FIIs' relentless buying and hopes of a Fed rate hike pause could help maintain the buying momentum," said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.

Meanwhile, global oil benchmark Brent crude dipped 0.52 per cent to USD 76.67 a barrel.

"So long as this foreign portfolio liquidity remains strong, the market will remain resilient. The underlying market momentum indicates an uptrend that can take the market higher. But investors need not expect a sustained sharp rally since valuations don't warrant that and profit-booking will exert selling pressure," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

The US markets were closed on Monday for Memorial Day, said Deepak Jasani, Head of Retail Research, HDFC securities.

"While the debt ceiling deal is likely to calm market jitters, and with a strong earnings season out of the way, investors now turn their attention to the economic outlook and path of interest rates," Jasani added.

The Sensex climbed 344.69 points or 0.55 per cent to settle at 62,846.38 on Monday. The Nifty gained 99.30 points or 0.54 per cent to end at 18,598.65.

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Rupee Falls 4 Paise To 82.67 Against US Dollar

The rupee depreciated by 4 paise to 82.67 against the US dollar in early trade on Tuesday, tracking a strong American currency against major rivals overseas.

Forex traders said downward movement in crude price and inflows of foreign funds, however, capped the fall in the Indian currency.

Meanwhile, the dollar strengthened as investors were upbeat on the tentative agreement between US President Joe Biden and Republican House Speaker Kevin McCarthy on the debt ceiling, which is likely to face voting on Wednesday before getting sealed.

Traders were also keeping an eye on the US non-farm payroll (NFP) data to be released on Friday.

"Rupee traded in a narrow range and volatility remained low as most market participants remained on the sidelines following US market holiday. On the other hand, the dollar was weighed down after preliminary talks between the Republicans and Democrats sailed through.

"Today, focus will be on the consumer confidence number from the US and that is likely to trigger volatility for the dollar; more updates on the debt ceiling vote will also be important to watch. We expect the USDINR (Spot) to trade sideways and quote in the range of 82.40 and 82.80," said Gaurang Somaiya, FX and bullion analyst at Motilal Oswal.

At the interbank foreign exchange, the domestic unit opened flat at 82.63 against the dollar and hit the lowest level of 82.69. Later, it touched 82.67, registering a fall of 4 paise over its previous close.

On Monday, the rupee closed at 82.63 against the US currency.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.09 per cent to 104.30.

Brent crude futures, the global oil benchmark, fell 0.61 per cent to USD 76.60 per barrel.

In the domestic equity market, the 30-share BSE Sensex advanced 123.87 points or 0.20 per cent to 62,970.25. The broader NSE Nifty was up 35.50 points or 0.19 per cent to 18,634.15.

Foreign Institutional Investors (FIIs) were net buyers in the capital market on Monday as they purchased shares worth Rs 1,758.16 crore, according to exchange data.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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Found Gaps In Corporate Governance At Banks Despite Guidelines: RBI Chief

The Reserve Bank has found gaps in banks' corporate governance despite issuing guidelines on the matter, Governor Shaktikanta Das said on Monday.

Addressing directors of bank boards, Mr Das said such gaps, which have been mitigated, could have caused "some degree of volatility".

He also hit out strongly against "smart accounting" to conceal stress and bloat financial performance.

"It is...a matter of concern that despite these guidelines on corporate governance, we have come across gaps in governance of certain banks, with the potential to cause some degree of volatility in the banking sector," Mr Das said at the meeting specially convened by the Reserve Bank.

Bank boards and management should not allow such gaps to creep in, he said, adding that the RBI has taken up such matters with the banks at an individual level in the past.

It is the joint responsibility of the chairman of the board and the directors, both whole-time and non-executive or part-time directors, to ensure robust governance in banks, the governor noted.

The RBI has also found banks adopting "smart accounting methods" to "artificially boost financial performance", Mr Das said, revealing more about the modus operandi.

Banks try to conceal the real status of stressed loans by getting two lenders together to evergreen each other's loans by sale and buyback of loans or debt instruments, persuading good borrowers to enter into structured deals with a stressed borrower to conceal the stress, adjust borrower's repayment obligations by using internal or office accounts, he said.

"We have also come across a few examples where one method of evergreening, after being pointed out by the regulator, was replaced by another method. Such practices beg the question as to whose interest such smart methods serve. I have mentioned these instances to sensitise all of you to keep a watch on such practices," he said.

Without naming any particular case, Das said the RBI has noticed the dominance of chief executives in board discussions and decision-making and rued that the boards do not assert themselves.

"We would not like this type of situation to develop. At the same time, there should not be a situation where the CEO is inhibited from doing his duties," he added.

Mr Das advised banks to be cautious in the pursuit of their growth strategies, pricing and portfolio composition.

"Over-aggressive growth, under-pricing or over-pricing of products both on the credit and deposit sides, concentration or lack of adequate diversification in deposit/ credit profile can expose the banks to higher risks and vulnerabilities," he said.

The governor also said that while the Reserve Bank has nudged banks to adjust their business strategies in some cases where they were creating "avoidable vulnerabilities" by being aggressive, the central bank does not interfere in the commercial decision-making of the banks.

Employees cannot be rewarded for increasing short-term profits without adequate recognition of the risks and long-term consequences, Mr Das said.

In the remarks that come weeks after turbulence in the American banking sector, Mr Das also asked bank boards to be wary about basic aspects like asset-liability mismatches, saying as suboptimal ALM can lead to serious liquidity risks and destabilising effects on the bank itself.

"...developments in the USA have also demonstrated that aggressive growth strategies with disproportionate or excessive focus on the bottom lines and/or market capitalisation often leads to build up of vulnerabilities," he said.

He was quick to add that the Indian banking sector is "strong and stable" with capital buffers at 16.1 per cent, gross non-performing assets at 4.41 per cent and provision coverage ratio at 73.20 per cent at the end of December 2022.

"It is in times such as these that complacency may set in. We have to bear in mind that risks often get overlooked or forgotten when things are going well. Therefore, boards of directors of banks and their senior management should maintain a constant vigil on external risks and build-up of internal vulnerabilities, if any," he said. Meanwhile, the RBI in a statement said that the governor acknowledged the role played by the banks in supporting the economy and maintaining resilience, along with improved financial performance in the face of several adverse shocks in recent times.

He exhorted the directors of banks to further strengthen the governance and assurance functions (risk management, compliance and internal audit) so that the banks are able to identify and mitigate risks at an early stage.

The governor also emphasised the need for banks to ensure continued financial and operational resilience, the statement said.

Deputy governors MK Jain and M Rajeshwar Rao, along with executive directors -- representing the RBI's Department of Supervision, Department of Regulation and Enforcement Department, and other senior officials, also participated in the conference. 

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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Found Gaps In Corporate Governance At Banks Despite Guidelines: RBI Chief

The Reserve Bank has found gaps in banks' corporate governance despite issuing guidelines on the matter, Governor Shaktikanta Das said on Monday.

Addressing directors of bank boards, Mr Das said such gaps, which have been mitigated, could have caused "some degree of volatility".

He also hit out strongly against "smart accounting" to conceal stress and bloat financial performance.

"It is...a matter of concern that despite these guidelines on corporate governance, we have come across gaps in governance of certain banks, with the potential to cause some degree of volatility in the banking sector," Mr Das said at the meeting specially convened by the Reserve Bank.

Bank boards and management should not allow such gaps to creep in, he said, adding that the RBI has taken up such matters with the banks at an individual level in the past.

It is the joint responsibility of the chairman of the board and the directors, both whole-time and non-executive or part-time directors, to ensure robust governance in banks, the governor noted.

The RBI has also found banks adopting "smart accounting methods" to "artificially boost financial performance", Mr Das said, revealing more about the modus operandi.

Banks try to conceal the real status of stressed loans by getting two lenders together to evergreen each other's loans by sale and buyback of loans or debt instruments, persuading good borrowers to enter into structured deals with a stressed borrower to conceal the stress, adjust borrower's repayment obligations by using internal or office accounts, he said.

"We have also come across a few examples where one method of evergreening, after being pointed out by the regulator, was replaced by another method. Such practices beg the question as to whose interest such smart methods serve. I have mentioned these instances to sensitise all of you to keep a watch on such practices," he said.

Without naming any particular case, Das said the RBI has noticed the dominance of chief executives in board discussions and decision-making and rued that the boards do not assert themselves.

"We would not like this type of situation to develop. At the same time, there should not be a situation where the CEO is inhibited from doing his duties," he added.

Mr Das advised banks to be cautious in the pursuit of their growth strategies, pricing and portfolio composition.

"Over-aggressive growth, under-pricing or over-pricing of products both on the credit and deposit sides, concentration or lack of adequate diversification in deposit/ credit profile can expose the banks to higher risks and vulnerabilities," he said.

The governor also said that while the Reserve Bank has nudged banks to adjust their business strategies in some cases where they were creating "avoidable vulnerabilities" by being aggressive, the central bank does not interfere in the commercial decision-making of the banks.

Employees cannot be rewarded for increasing short-term profits without adequate recognition of the risks and long-term consequences, Mr Das said.

In the remarks that come weeks after turbulence in the American banking sector, Mr Das also asked bank boards to be wary about basic aspects like asset-liability mismatches, saying as suboptimal ALM can lead to serious liquidity risks and destabilising effects on the bank itself.

"...developments in the USA have also demonstrated that aggressive growth strategies with disproportionate or excessive focus on the bottom lines and/or market capitalisation often leads to build up of vulnerabilities," he said.

He was quick to add that the Indian banking sector is "strong and stable" with capital buffers at 16.1 per cent, gross non-performing assets at 4.41 per cent and provision coverage ratio at 73.20 per cent at the end of December 2022.

"It is in times such as these that complacency may set in. We have to bear in mind that risks often get overlooked or forgotten when things are going well. Therefore, boards of directors of banks and their senior management should maintain a constant vigil on external risks and build-up of internal vulnerabilities, if any," he said. Meanwhile, the RBI in a statement said that the governor acknowledged the role played by the banks in supporting the economy and maintaining resilience, along with improved financial performance in the face of several adverse shocks in recent times.

He exhorted the directors of banks to further strengthen the governance and assurance functions (risk management, compliance and internal audit) so that the banks are able to identify and mitigate risks at an early stage.

The governor also emphasised the need for banks to ensure continued financial and operational resilience, the statement said.

Deputy governors MK Jain and M Rajeshwar Rao, along with executive directors -- representing the RBI's Department of Supervision, Department of Regulation and Enforcement Department, and other senior officials, also participated in the conference. 

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RBI May Reduce Policy Rate In 4th Quarter Of 2024: Report

Global forecasting firm Oxford Economics on Monday said the RBI may cut key benchmark policy rate in the fourth quarter of the current calendar year as a mix of factors will allow the central bank to shift focus and adopt a more accommodative policy stance sooner.

It further said inflation has already begun easing, and consumer inflation expectations are falling, so attention has shifted from estimating the peak level of the current hiking cycle to the timing of rate cuts.

"We are updating our baseline view for India to include a first rate cut by the RBI in Q4 2023. We think a mix of factors will allow the RBI to shift focus and adopt a more accommodative policy stance sooner," Oxford Economics said.

It noted that despite easing price pressures recently, risks to inflation over the remainder of the year are to the upside.

"The MPC will want to see clear signs that inflation is stabilising in the middle of its target range before considering a dovish move - in our view this will happen before the end of the year," the global forecasting firm said.

While pointing out that high-frequency indicators for India still suggest robust activity, it said, but activity has clearly begun to slow.

"After a resilient first quarter, the global economic slowdown is set to identify and there are significant risks of a long and deep downturn that will transmit from advanced to emerging economies, including India," it said.

The RBI has been tasked to ensure retail inflation remains at 4 per cent (with margin of 2 per cent on either side).

In April, the Reserve Bank in a surprise move hit the pause button and decided to keep the key benchmark policy rate at 6.5 per cent.

Prior to it, the Reserve Bank of India (RBI) was on a rate hiking spree, raising the repo rate by 250 basis points since May 2022.

Last week, RBI Governor Shaktikanta Das had said inflation has moderated, and the next print is expected to be lower than 4.7 per cent though there is no room for complacency and the war on inflation will continue.

Retail inflation fell to an 18-month low of 4.7 per cent in April, mainly due to cooling food prices.

The governor, however, had emphasised that although inflation has moderated, there is no room for complacency.

For the current financial year, he said the RBI has projected a growth rate of 6.5 per cent. 

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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RBI May Reduce Policy Rate In 4th Quarter Of 2024: Report

Global forecasting firm Oxford Economics on Monday said the RBI may cut key benchmark policy rate in the fourth quarter of the current calendar year as a mix of factors will allow the central bank to shift focus and adopt a more accommodative policy stance sooner.

It further said inflation has already begun easing, and consumer inflation expectations are falling, so attention has shifted from estimating the peak level of the current hiking cycle to the timing of rate cuts.

"We are updating our baseline view for India to include a first rate cut by the RBI in Q4 2023. We think a mix of factors will allow the RBI to shift focus and adopt a more accommodative policy stance sooner," Oxford Economics said.

It noted that despite easing price pressures recently, risks to inflation over the remainder of the year are to the upside.

"The MPC will want to see clear signs that inflation is stabilising in the middle of its target range before considering a dovish move - in our view this will happen before the end of the year," the global forecasting firm said.

While pointing out that high-frequency indicators for India still suggest robust activity, it said, but activity has clearly begun to slow.

"After a resilient first quarter, the global economic slowdown is set to identify and there are significant risks of a long and deep downturn that will transmit from advanced to emerging economies, including India," it said.

The RBI has been tasked to ensure retail inflation remains at 4 per cent (with margin of 2 per cent on either side).

In April, the Reserve Bank in a surprise move hit the pause button and decided to keep the key benchmark policy rate at 6.5 per cent.

Prior to it, the Reserve Bank of India (RBI) was on a rate hiking spree, raising the repo rate by 250 basis points since May 2022.

Last week, RBI Governor Shaktikanta Das had said inflation has moderated, and the next print is expected to be lower than 4.7 per cent though there is no room for complacency and the war on inflation will continue.

Retail inflation fell to an 18-month low of 4.7 per cent in April, mainly due to cooling food prices.

The governor, however, had emphasised that although inflation has moderated, there is no room for complacency.

For the current financial year, he said the RBI has projected a growth rate of 6.5 per cent. 

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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Sensex Reclaims Crucial 63,000 Mark, Nifty Crosses 18,000

Equity benchmark indices jumped in early trade on Monday, with the Sensex reclaiming the crucial 63,000-mark, amid positive trends in the US markets and continuous foreign fund inflows.

Rallying for the third day running, the 30-share BSE Sensex jumped 507.22 points to 63,008.91 in early trade. The NSE Nifty climbed 141.85 points to 18,641.20.

From the Sensex pack, Mahindra & Mahindra, HDFC, IndusInd Bank, Bajaj Finserv, HDFC Bank, Kotak Mahindra Bank, Bharti Airtel, Titan, UltraTech Cement and Bajaj Finance were the major gainers.

Power Grid and HCL Technologies were the laggards.

In Asian markets, Tokyo and Shanghai were trading in the green, while Hong Kong quoted lower.

The US market ended with significant gains on Friday.

With days to spare before a potential first-ever government default, US President Joe Biden and House Speaker Kevin McCarthy reached final agreement Sunday on a deal to raise the nation's debt ceiling and worked to ensure enough Republican and Democratic votes to pass the measure in the coming week.

"The ‘in principle' deal on US debt ceiling is a near-term relief to stock markets and, therefore, can aid continuation of the ongoing rally which can take Nifty to new record highs," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Foreign Institutional Investors (FIIs) were net buyers on Friday as they bought equities worth Rs 350.15 crore, according to exchange data.

Meanwhile, global oil benchmark Brent crude jumped 0.71 per cent to USD 77.50 a barrel.

The Sensex jumped 629.07 points or 1.02 per cent to settle at 62,501.69 on Friday. The Nifty climbed 178.20 points or 0.97 per cent to end at 18,499.35.

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Sensex Jumps 480 Points In Early Trade, Adani, Tata Group Stocks Outperform

Sensex today jumped 480 points to 62,984 in early trade, while the Nifty opened 120 points higher today, a day after US President Joe Biden and the Republicans reached an agreement on increasing the US debt ceiling.

On Friday, the 30-share BSE Sensex had closed 629.07 points or 1.02 per cent higher to settle at 62,501.69. During the day, it rallied 657.21 points or 1.06 per cent to 62,529.83.

The NSE Nifty had climbed 178.20 points or 0.97 per cent to end at 18,499.35 on Friday.

US President Joe Biden and House Speaker Kevin McCarthy forged an agreement over the weekend to avert a default to suspend $31.4 trillion debt ceiling until 2025, ahead of the June 1 deadline. The deal will have to pass through the US Congress. Asian markets also edged higher.

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Appellate Tribunal NCLAT Sets Aside Order On Zee-Sony Merger

The National Company Law Appellate Tribunal (NCLAT) has set aside the order of NCLT directing bourses NSE and BSE to reconsider their approval for the Zee-Sony merger.

A two-member NCLAT bench has asked NCLT to consider the merger of Zee Entertainment with Culver Max Entertainment (earlier known as Sony Pictures Networks India) afresh, after hearing all the parties.

The appellate tribunal order came on hearing the appeal filed by Zee Entertainment Enterprises Limited (ZEEL) against the order passed by the Mumbai bench of the National Company Law Tribunal (NCLT) on May 11, 2023.

The NCLT had directed NSE and BSE to reconsider their prior approvals for the merger of ZEEL and Culver Max Entertainment. It had also asked the bourses to reassess the non-compete fee under the clause of the merger.

The said order was challenged by ZEEL before the appellate tribunal, contending that it was not granted adequate opportunity by the NCLT to present its side and it didn't follow the principles of natural justice.

Moreover, it also contended that the NCLT doesn't have jurisdiction over non-compete issues.

As per the scheme of the arrangement, Sony will indirectly hold 50.86 per cent of the combined company. The founder of Zee will own around 4 per cent and the rest will be with the other shareholders of ZEEL.

Moreover, Sony Group will also pay a non-compete fee of Rs 1,100 crore to the Essel Group promoters.

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Strong Performance Of Indian Banks To Continue: S&P Global Ratings

S&P Global Ratings today said Indian banking sector profitability will stabilise at a healthy level, and asset quality will continue to improve.

"Indian banks' earnings will likely remain healthy. The sector has improved substantially in the past seven years, from a period when many public-sector lenders were grappling with bad loans," S&P Global Ratings credit analyst Deepali Seth Chhabria said.

A strong recovery is underway in the Indian banking sector, and lenders have just reported their best results in a decade, S&P Global Ratings said. It expects the sector profitability to stabilise at a healthy level, and that banks' asset quality will continue to improve.

Indian banking profitability is benefiting from higher net interest margins and lower credit costs.

We estimate a system-wide return on average assets (ROAA) at 1.2 per cent for fiscal 2023 (year ending March 31, 2023). System-wide ROAA will likely hover around 1.1 per cent in fiscal 2024.

"The formation of new non-performing loans will remain at cyclical low levels, despite pressure from higher interest rates," S&P Global Ratings credit analyst Geeta Chugh said.

"A recovery in written-off accounts is also boosting the profitability of banks," she added India's strong economic performance is bolstering the banking sector.

S&P Global Ratings still forecasts the country will grow 6-7 per cent annually until 2026 at least, making India the fastest-growing economy in Asia-Pacific, and the fastest-growing large economy globally.
 

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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Strong Performance Of Indian Banks To Continue: S&P Global Ratings

S&P Global Ratings today said Indian banking sector profitability will stabilise at a healthy level, and asset quality will continue to improve.

"Indian banks' earnings will likely remain healthy. The sector has improved substantially in the past seven years, from a period when many public-sector lenders were grappling with bad loans," S&P Global Ratings credit analyst Deepali Seth Chhabria said.

A strong recovery is underway in the Indian banking sector, and lenders have just reported their best results in a decade, S&P Global Ratings said. It expects the sector profitability to stabilise at a healthy level, and that banks' asset quality will continue to improve.

Indian banking profitability is benefiting from higher net interest margins and lower credit costs.

We estimate a system-wide return on average assets (ROAA) at 1.2 per cent for fiscal 2023 (year ending March 31, 2023). System-wide ROAA will likely hover around 1.1 per cent in fiscal 2024.

"The formation of new non-performing loans will remain at cyclical low levels, despite pressure from higher interest rates," S&P Global Ratings credit analyst Geeta Chugh said.

"A recovery in written-off accounts is also boosting the profitability of banks," she added India's strong economic performance is bolstering the banking sector.

S&P Global Ratings still forecasts the country will grow 6-7 per cent annually until 2026 at least, making India the fastest-growing economy in Asia-Pacific, and the fastest-growing large economy globally.
 

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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April GST Return Filing Deadline Extended In Manipur Due To Violence

The CBIC has extended the deadline till May 31 for Manipur-based businesses to file monthly GST returns, as the north eastern state continues to witness violence due to ethnic clashes.

The Central Board of Indirect Taxes and Customs (CBIC) has issued three Central Tax notifications which said that the due date for filing returns GSTR-1, GSTR-3B and GSTR-7 for the month of April by registered persons whose principal place of business is in Manipur has been extended till May 31.

Manipur-registered businesses were to file GSTR-1, which is the statement of outward supplies, for April by May 11.

April GSTR-3B, which is the monthly tax payment form, was to be filed by May 20. GSTR-7, which was to be filed by businesses who deduct tax at source, for April was filed by May 10.

Clashes broke out in Manipur after a 'Tribal Solidarity March' was organised in the hill districts on May 3 to protest against the Meitei community's demand for Scheduled Tribe (ST) status.

Meiteis account for about 53 per cent of Manipur's population and live mostly in the Imphal Valley. Tribals -- Nagas and Kukis -- constitute another 40 per cent of the population and reside in the hill districts.

The ethnic clashes claimed over 70 lives and some 10,000 army and paramilitary personnel had to be deployed in the north eastern state. However, the violence has been continuing as one person was killed and another injured on Thursday.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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April GST Return Filing Deadline Extended In Manipur Due To Violence

The CBIC has extended the deadline till May 31 for Manipur-based businesses to file monthly GST returns, as the north eastern state continues to witness violence due to ethnic clashes.

The Central Board of Indirect Taxes and Customs (CBIC) has issued three Central Tax notifications which said that the due date for filing returns GSTR-1, GSTR-3B and GSTR-7 for the month of April by registered persons whose principal place of business is in Manipur has been extended till May 31.

Manipur-registered businesses were to file GSTR-1, which is the statement of outward supplies, for April by May 11.

April GSTR-3B, which is the monthly tax payment form, was to be filed by May 20. GSTR-7, which was to be filed by businesses who deduct tax at source, for April was filed by May 10.

Clashes broke out in Manipur after a 'Tribal Solidarity March' was organised in the hill districts on May 3 to protest against the Meitei community's demand for Scheduled Tribe (ST) status.

Meiteis account for about 53 per cent of Manipur's population and live mostly in the Imphal Valley. Tribals -- Nagas and Kukis -- constitute another 40 per cent of the population and reside in the hill districts.

The ethnic clashes claimed over 70 lives and some 10,000 army and paramilitary personnel had to be deployed in the north eastern state. However, the violence has been continuing as one person was killed and another injured on Thursday.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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Highway Contractors Allowed To Convert Bank Guarantees Into Surety Bonds

Union Minister Nitin Gadkari has said the finance ministry has agreed to allow contractors engaged by state-owned NHAI and NHIDCL to convert their bank guarantees into insurance surety bonds.

Mr Gadkari had recently said changes will be made to the surety bond offering to make it more lucrative as no contractor is buying it because of the strict conditions imposed by insurance regulator Irdai.

"I conveyed to the road transport secretary that he should talk to the finance secretary once to give it (allowing conversion of bank guarantee to surety bonds) from retrospective effect.

"In NHAI, in the road ministry and NHIDCL whatever bank guarantees are there, if they want, they can convert them into insurance surety bonds. Permission should be given for this," Mr Gadkari said on Wednesday at an event organised by the National Highways Authority of India.

Last year in December, Mr Gadkari launched the country's first-ever surety bond insurance product with an aim to reduce the dependence on infrastructure developers on bank guarantees.

"I am happy to tell you that the road transport secretary talked to the finance secretary and the finance secretary has agreed. Now you can convert it," the road transport and highways minister said.

The product, from the stable of Bajaj Allianz General Insurance, has been developed in response to a demand by the industry and the government.

The surety bond insurance is a risk transfer tool for the principal, and shields the principal from the losses that may arise in case the contractor fails to perform his contractual obligation.

The product gives the principal a contract of guarantee that contractual terms and other business deals will be concluded in accordance with the mutually agreed terms.

In case the contractor doesn't fulfil the contractual terms, the principal can raise a claim on the surety bond and recover the losses they have incurred.

Unlike a bank guarantee, the surety bond insurance does not require large collateral from the contractor, thus freeing up significant funds for the contractor, which they can utilise for the growth of the business.

Last week, Irdai relaxed norms for surety bonds, a type of insurance policy protecting parties involved in a transaction or contract from potential financial losses due to a breach of contract or other types of non-performance.

The changes are aimed at expanding the surety insurance market by increasing the availability of such products. 

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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Highway Contractors Allowed To Convert Bank Guarantees Into Surety Bonds

Union Minister Nitin Gadkari has said the finance ministry has agreed to allow contractors engaged by state-owned NHAI and NHIDCL to convert their bank guarantees into insurance surety bonds.

Mr Gadkari had recently said changes will be made to the surety bond offering to make it more lucrative as no contractor is buying it because of the strict conditions imposed by insurance regulator Irdai.

"I conveyed to the road transport secretary that he should talk to the finance secretary once to give it (allowing conversion of bank guarantee to surety bonds) from retrospective effect.

"In NHAI, in the road ministry and NHIDCL whatever bank guarantees are there, if they want, they can convert them into insurance surety bonds. Permission should be given for this," Mr Gadkari said on Wednesday at an event organised by the National Highways Authority of India.

Last year in December, Mr Gadkari launched the country's first-ever surety bond insurance product with an aim to reduce the dependence on infrastructure developers on bank guarantees.

"I am happy to tell you that the road transport secretary talked to the finance secretary and the finance secretary has agreed. Now you can convert it," the road transport and highways minister said.

The product, from the stable of Bajaj Allianz General Insurance, has been developed in response to a demand by the industry and the government.

The surety bond insurance is a risk transfer tool for the principal, and shields the principal from the losses that may arise in case the contractor fails to perform his contractual obligation.

The product gives the principal a contract of guarantee that contractual terms and other business deals will be concluded in accordance with the mutually agreed terms.

In case the contractor doesn't fulfil the contractual terms, the principal can raise a claim on the surety bond and recover the losses they have incurred.

Unlike a bank guarantee, the surety bond insurance does not require large collateral from the contractor, thus freeing up significant funds for the contractor, which they can utilise for the growth of the business.

Last week, Irdai relaxed norms for surety bonds, a type of insurance policy protecting parties involved in a transaction or contract from potential financial losses due to a breach of contract or other types of non-performance.

The changes are aimed at expanding the surety insurance market by increasing the availability of such products. 

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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LIC Q4 Net Profit Rises Five-Fold To Rs 13,191 Crore

Insurance behemoth LIC on Wednesday posted a more than five-fold jump in consolidated net profit to Rs 13,191 crore for the fourth quarter ended March 2023.

The insurer had earned a profit of Rs 2,409 crore in the same quarter a year earlier.

However, the total income of the insurer during the March quarter declined to Rs 2,01,022 crore from Rs 2,15,487 crore in the same period of the previous fiscal, LIC said in a regulatory filing.

LIC's income from first-year premium also came down to Rs 12,852 crore against Rs 14,663 crore in the same quarter previous fiscal.

The income from renewal premiums in the reporting period rose to Rs 76,328 crore compared to Rs 71,473 crore a year ago, while the single premium decreased to Rs 43,252 crore from Rs 58,251 crore.

For the entire financial year 2022-23, LIC registered a multi-fold rise in net profit to Rs 35,997 crore from Rs 4,125 crore in the preceding financial year.

The surge in annual profit for FY23 was helped by a jump in the second quarter bottomline to Rs 15,952 crore. It was due to a transfer of Rs 15.03 lakh crore to shareholders' accounts at the end of September.

The board of LIC has recommended a final dividend of Rs 3 per equity share with a face value of Rs 10 each for the year ended March 31, 2023.

The solvency ratio - which measures an insurance company's cash flow in comparison to the amount it owes as total life cover - increased to 1.87 per cent as of March 31, 2023, against 1.85 per cent at the end of the preceding fiscal.

The insurer's gross non-performing assets (NPAs) moderated to 2.56 per cent from 6.03 per cent at the end of March 2022.

In absolute terms, it declined substantially to Rs 12,031 crore from Rs 27,087 crore at the end of the preceding financial year.

LIC brought down its net NPAs to nil level from 0.04 per cent at the end of March 2022.

Shares of the LIC closed 0.61 per cent higher at Rs 593.55 apiece on BSE.

Last year, the government raised Rs 20,557 crore by diluting its 3.5 per cent stake in the LIC through the initial public offering (IPO), the country's biggest ever.

LIC shares were listed at a discount of 8.62 per cent at Rs 867.20 apiece on BSE over the issue price of Rs 949 a share.

Investors have lost nearly Rs 2.5 lakh crore since the listing of shares.

The government sold over 22.13 crore shares or a 3.5 per cent stake in LIC through the IPO. The price band of the issue was Rs 902-949 a share. However, shares were allocated to investors on May 12, 2022, at the upper end of the price band.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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LIC Q4 Net Profit Rises Five-Fold To Rs 13,191 Crore

Insurance behemoth LIC on Wednesday posted a more than five-fold jump in consolidated net profit to Rs 13,191 crore for the fourth quarter ended March 2023.

The insurer had earned a profit of Rs 2,409 crore in the same quarter a year earlier.

However, the total income of the insurer during the March quarter declined to Rs 2,01,022 crore from Rs 2,15,487 crore in the same period of the previous fiscal, LIC said in a regulatory filing.

LIC's income from first-year premium also came down to Rs 12,852 crore against Rs 14,663 crore in the same quarter previous fiscal.

The income from renewal premiums in the reporting period rose to Rs 76,328 crore compared to Rs 71,473 crore a year ago, while the single premium decreased to Rs 43,252 crore from Rs 58,251 crore.

For the entire financial year 2022-23, LIC registered a multi-fold rise in net profit to Rs 35,997 crore from Rs 4,125 crore in the preceding financial year.

The surge in annual profit for FY23 was helped by a jump in the second quarter bottomline to Rs 15,952 crore. It was due to a transfer of Rs 15.03 lakh crore to shareholders' accounts at the end of September.

The board of LIC has recommended a final dividend of Rs 3 per equity share with a face value of Rs 10 each for the year ended March 31, 2023.

The solvency ratio - which measures an insurance company's cash flow in comparison to the amount it owes as total life cover - increased to 1.87 per cent as of March 31, 2023, against 1.85 per cent at the end of the preceding fiscal.

The insurer's gross non-performing assets (NPAs) moderated to 2.56 per cent from 6.03 per cent at the end of March 2022.

In absolute terms, it declined substantially to Rs 12,031 crore from Rs 27,087 crore at the end of the preceding financial year.

LIC brought down its net NPAs to nil level from 0.04 per cent at the end of March 2022.

Shares of the LIC closed 0.61 per cent higher at Rs 593.55 apiece on BSE.

Last year, the government raised Rs 20,557 crore by diluting its 3.5 per cent stake in the LIC through the initial public offering (IPO), the country's biggest ever.

LIC shares were listed at a discount of 8.62 per cent at Rs 867.20 apiece on BSE over the issue price of Rs 949 a share.

Investors have lost nearly Rs 2.5 lakh crore since the listing of shares.

The government sold over 22.13 crore shares or a 3.5 per cent stake in LIC through the IPO. The price band of the issue was Rs 902-949 a share. However, shares were allocated to investors on May 12, 2022, at the upper end of the price band.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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Aviation Body To Audit Go First's Preparedness Before Flights Can Resume

Aviation regulator DGCA will conduct an audit of Go First's preparedness before approving resumption of flights by the crisis-hit carrier, according to a communication.

Cash-strapped Go First stopped flying from May 3 and is undergoing voluntary insolvency resolution proceedings.

On Tuesday, a senior official at the Directorate General of Civil Aviation (DGCA) said the airline has submitted its response to the regulator's show cause notice indicating that it is working on the details of a plan to resume flights at the earliest.

In a communication to the staff on Tuesday, the airline said, "DGCA will be conducting an audit to check our preparedness in the coming days. Once approved by the regulator, we would be soon commencing operations".

The government has been very supportive and has asked the airline to commence operations as soon as possible, it added.

Besides, the communication, sent out on Tuesday night to the staff, said the CEO has assured that salaries for the month of April will be credited to their accounts before the commencement of operations.

"Further, from the coming month, the salary will be paid in the 1st week of every month," it added.

The communication was sent out by Go First's Head of Operations Rajit Ranjan.

On May 8, DGCA issued a show cause notice to the budget carrier under the relevant provisions of the Aircraft Rules, 1937, for its failure to continue the operation of the service in a safe, efficient and reliable manner. The airline has submitted its reply to the show cause notice.

Go First, on May 2, announced filing the plea for voluntary insolvency resolution proceedings as well as suspension of flights, initially for two days - May 3 and 4.

At that time also, DGCA had issued a show cause notice to Go First for cancelling flights for May 3 and 4 "without any prior intimation".

The airline has cancelled all its flights till May 26.

On Monday, the National Company Law Appellate Tribunal (NCLAT) upheld NCLT's decision to admit Go First's plea for voluntary insolvency resolution proceedings.

The ruling had come on petitions filed by four lessors opposing the insolvency resolution proceedings of the airline.
 

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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Inflation Has Moderated, But No Room For Complacency: RBI Chief

The inflation has moderated, but the central bank cannot be complacent towards easing price pressures yet as potential weather-related uncertainties linger, the governor of the Reserve Bank of India said on Wednesday.

"The war on inflation is not over; we have to remain alert," Shaktikanta Das said at an event in New Delhi.

"There is no room for complacency. We will have to see how the El Nino factor plays out."

India's annual retail inflation eased to 4.7% in April from 5.66% in the previous month, according to data.

This month's retail inflation data, scheduled to be released on June 12, "could perhaps be lower," Mr Das said.

The RBI targets inflation at 4%, with a tolerance level stretching up to two percentage side on either side.

The rate-setting Monetary Policy Committee has raised the policy repo rate by 250 basis points since May last year to quell inflationary pressures. The panel kept the repo rate steady at its meeting last month and is expected to pause again when it meets in June.

Apart from posing upside risks to inflation, El Nino could also weigh on India's economic growth, Mr Das said. Geopolitical uncertainties, declining merchandise trade due to a contraction in global trade could also add to downside risks to growth, he said.

In spite of these factors, India's gross domestic product growth could be above 7% for 2022-23, and such an outcome, if realised, should not come as a surprise, the governor said.

India is expected to record a GDP growth of close to 6.5% in 2023-24, he said, adding that capital expenditure is picking up in the private sector, while infrastructure spending by the government is also on the rise.

The RBI will endeavour to stay prudent and act on time to ensure financial stability, remaining proactive in foreign exchange management, and will continue to focus on stability of the rupee, Mr Das said.

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Inflation Has Moderated, But No Room For Complacency: RBI Chief

The inflation has moderated, but the central bank cannot be complacent towards easing price pressures yet as potential weather-related uncertainties linger, the governor of the Reserve Bank of India said on Wednesday.

"The war on inflation is not over; we have to remain alert," Shaktikanta Das said at an event in New Delhi.

"There is no room for complacency. We will have to see how the El Nino factor plays out."

India's annual retail inflation eased to 4.7% in April from 5.66% in the previous month, according to data.

This month's retail inflation data, scheduled to be released on June 12, "could perhaps be lower," Mr Das said.

The RBI targets inflation at 4%, with a tolerance level stretching up to two percentage side on either side.

The rate-setting Monetary Policy Committee has raised the policy repo rate by 250 basis points since May last year to quell inflationary pressures. The panel kept the repo rate steady at its meeting last month and is expected to pause again when it meets in June.

Apart from posing upside risks to inflation, El Nino could also weigh on India's economic growth, Mr Das said. Geopolitical uncertainties, declining merchandise trade due to a contraction in global trade could also add to downside risks to growth, he said.

In spite of these factors, India's gross domestic product growth could be above 7% for 2022-23, and such an outcome, if realised, should not come as a surprise, the governor said.

India is expected to record a GDP growth of close to 6.5% in 2023-24, he said, adding that capital expenditure is picking up in the private sector, while infrastructure spending by the government is also on the rise.

The RBI will endeavour to stay prudent and act on time to ensure financial stability, remaining proactive in foreign exchange management, and will continue to focus on stability of the rupee, Mr Das said.

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Ashok Leyland 4th Quarter Profit Jumps 5-Fold To Rs 803 Crore

Commercial vehicles maker Ashok Leyland today reported an over five-fold jump in consolidated net profit at Rs 802.71 crore for the fourth quarter ended March 31, 2023 riding on robust sales.

The company had posted a consolidated net profit of Rs 157.85 crore for the same quarter previous fiscal, Ashok Leyland said in a regulatory filing.

Revenue from operations during the quarter under review stood at Rs 13,202.55 crore as against Rs 9,926.97 crore in the year-ago period, it added.

Total expenses in the quarter stood at Rs 12,085.5 crore as against Rs 9,429.55 crore earlier.

For fiscal year ended March 31, 2023 consolidated net profit was at Rs 1,361.66 crore. The company had posted a net loss of Rs 285.45 crore in FY22.

Revenue from operations in FY23 stood at Rs 41,672.6 crore as compared to Rs 26,237.15 crore in FY22.

"The commercial vehicles (CV) industry is buoyant due to favourable macroeconomic factors and a healthy demand from the end-user industries," Ashok Leyland Executive Chairman Dheeraj Hinduja said.

He further said,"This trend is expected to continue alongside growth in core sectors such as construction and mining, agriculture, increased capital outlay for infrastructure projects and pent-up replacement demand." Mr Hinduja said the focus on international operations, defence, power solutions and parts businesses will continue to balance the volatility of the core business.

"With momentum gradually picking up in electric vehicles, Switch Mobility is well poised to complement the developments at Ashok Leyland across a spectrum of alternate propulsion systems," he added.

The company further said its board of directors has recommended a dividend of Rs 2.60 per equity share of Re 1 each for 2022-23, subject to shareholders' approval.
 

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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Ashok Leyland 4th Quarter Profit Jumps 5-Fold To Rs 803 Crore

Commercial vehicles maker Ashok Leyland today reported an over five-fold jump in consolidated net profit at Rs 802.71 crore for the fourth quarter ended March 31, 2023 riding on robust sales.

The company had posted a consolidated net profit of Rs 157.85 crore for the same quarter previous fiscal, Ashok Leyland said in a regulatory filing.

Revenue from operations during the quarter under review stood at Rs 13,202.55 crore as against Rs 9,926.97 crore in the year-ago period, it added.

Total expenses in the quarter stood at Rs 12,085.5 crore as against Rs 9,429.55 crore earlier.

For fiscal year ended March 31, 2023 consolidated net profit was at Rs 1,361.66 crore. The company had posted a net loss of Rs 285.45 crore in FY22.

Revenue from operations in FY23 stood at Rs 41,672.6 crore as compared to Rs 26,237.15 crore in FY22.

"The commercial vehicles (CV) industry is buoyant due to favourable macroeconomic factors and a healthy demand from the end-user industries," Ashok Leyland Executive Chairman Dheeraj Hinduja said.

He further said,"This trend is expected to continue alongside growth in core sectors such as construction and mining, agriculture, increased capital outlay for infrastructure projects and pent-up replacement demand." Mr Hinduja said the focus on international operations, defence, power solutions and parts businesses will continue to balance the volatility of the core business.

"With momentum gradually picking up in electric vehicles, Switch Mobility is well poised to complement the developments at Ashok Leyland across a spectrum of alternate propulsion systems," he added.

The company further said its board of directors has recommended a dividend of Rs 2.60 per equity share of Re 1 each for 2022-23, subject to shareholders' approval.
 

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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Adani Enterprises Jumps Nearly 18% In Morning Trade As Buying Continues

All Adani Group stocks extended their rally, with Adani Enterprises climbing nearly 18 per cent this morning, after a Supreme Court-appointed panel found no evidence of stock price manipulation in the group companies while a separate probe by markets regulator SEBI also drawing a blank.

The stock of Adani Enterprises zoomed 17.65 per cent on the Bombay Stock Exchange or BSE.

Shares of Adani Wilmar jumped 9.99 per cent, Adani Ports gained 7.71 per cent, Adani Power climbed 5 per cent, Adani Transmission (5 per cent), Adani Green (5 per cent), Adani Total Gas (5 per cent) and NDTV (4.99 per cent).

The stock of Ambuja Cements jumped 4 per cent and ACC climbed 2.87 per cent.

Some group stocks also hit their upper circuit limits during the morning trade.

In the equity market, the 30-share BSE benchmark climbed 238.21 points or 0.38 per cent to quote at 62,201.89 in morning trade.

Adani Group stocks have been rallying since Friday.

The committee, headed by former Supreme Court judge Justice AM Sapre, in its 173-page report, said that based on the data from Securities and Exchange Board of India (SEBI), it saw "no evident pattern of manipulation" in the steep stock price rise in billionaire Gautam Adani's companies that can be attributed to "any single entity or group of connected entities".

It was not possible to conclude whether there had been regulatory failures regarding price manipulations, the Supreme Court-appointed panel said in the report.

"Adani stocks have rallied in response to the Supreme Court expert panel's remark that "at this stage, taking into account the explanations provided by SEBI, supported by empirical data, prima facie, it would not be possible for the committee to conclude that there has been a regulatory failure around the allegation of price manipulation," it said.
 

(Disclaimer: New Delhi Television is a subsidiary of AMG Media Networks Limited, an Adani Group Company.)

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Adani Enterprises Jumps Nearly 18% In Morning Trade As Buying Continues

All Adani Group stocks extended their rally, with Adani Enterprises climbing nearly 18 per cent this morning, after a Supreme Court-appointed panel found no evidence of stock price manipulation in the group companies while a separate probe by markets regulator SEBI also drawing a blank.

The stock of Adani Enterprises zoomed 17.65 per cent on the Bombay Stock Exchange or BSE.

Shares of Adani Wilmar jumped 9.99 per cent, Adani Ports gained 7.71 per cent, Adani Power climbed 5 per cent, Adani Transmission (5 per cent), Adani Green (5 per cent), Adani Total Gas (5 per cent) and NDTV (4.99 per cent).

The stock of Ambuja Cements jumped 4 per cent and ACC climbed 2.87 per cent.

Some group stocks also hit their upper circuit limits during the morning trade.

In the equity market, the 30-share BSE benchmark climbed 238.21 points or 0.38 per cent to quote at 62,201.89 in morning trade.

Adani Group stocks have been rallying since Friday.

The committee, headed by former Supreme Court judge Justice AM Sapre, in its 173-page report, said that based on the data from Securities and Exchange Board of India (SEBI), it saw "no evident pattern of manipulation" in the steep stock price rise in billionaire Gautam Adani's companies that can be attributed to "any single entity or group of connected entities".

It was not possible to conclude whether there had been regulatory failures regarding price manipulations, the Supreme Court-appointed panel said in the report.

"Adani stocks have rallied in response to the Supreme Court expert panel's remark that "at this stage, taking into account the explanations provided by SEBI, supported by empirical data, prima facie, it would not be possible for the committee to conclude that there has been a regulatory failure around the allegation of price manipulation," it said.
 

(Disclaimer: New Delhi Television is a subsidiary of AMG Media Networks Limited, an Adani Group Company.)

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Adani Group, IT Stocks Lift Markets Amid Focus On US Debt Ceiling Talks

Indian shares advanced on Tuesday, powered by information technology and Adani group of stocks, even as markets kept an eye on the US debt ceiling talks.

The blue-chip Nifty 50 index was up 0.41% at 18,391.50 as of 10:08 a.m. IST, while the benchmark S&P BSE Sensex rose 0.33% to 62,165.70.

Ten of the 13 major sectoral indexes advanced, with the metal index jumping nearly 3%. Adani Enterprises Ltd, which has a weightage of 17% in the metal index, jumped over 12% and was the top Nifty 50 gainer.

All the Adani group stocks surged between 2% and 13%, and extended gains after markets regulator Securities and Exchange Board of India (SEBI) found no conclusive evidence after a probe into suspected violations in overseas investments in the group.

The Supreme Court's expert panel has ruled out a regulatory failure around the allegation of price manipulation.

"The high integrity of the members of the panel must have given confidence to investors to buy the beaten down (Adani) stocks," said VK Vijayakumar, chief investment strategist at Geojit Financial Services.

Bharat Petroleum Corporation Ltd rose over 2% and was among the top Nifty 50 gainers. The oil refiner reported a rise in fourth-quarter net profit, post-market hours on Monday.

High-weightage IT stocks rose nearly 1%. A report from credit ratings provider S&P Global Ratings, on Monday, said Indian IT companies have the resilience to downside risks due to strong balance sheets, high recurring cash flows, and execution track record.

While the debt ceiling talks in the U.S. did not yield an agreement on Monday, both US President Joe Biden and House Republican Speaker Kevin McCarthy vowed to continue negotiations.

Asian markets advanced on hints of progress in U.S. debt ceiling talks and strong macroeconomic data from Japan.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

(Disclaimer: New Delhi Television is a subsidiary of AMG Media Networks Limited, an Adani Group Company.)

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Adani Group, IT Stocks Lift Markets Amid Focus On US Debt Ceiling Talks

Indian shares advanced on Tuesday, powered by information technology and Adani group of stocks, even as markets kept an eye on the US debt ceiling talks.

The blue-chip Nifty 50 index was up 0.41% at 18,391.50 as of 10:08 a.m. IST, while the benchmark S&P BSE Sensex rose 0.33% to 62,165.70.

Ten of the 13 major sectoral indexes advanced, with the metal index jumping nearly 3%. Adani Enterprises Ltd, which has a weightage of 17% in the metal index, jumped over 12% and was the top Nifty 50 gainer.

All the Adani group stocks surged between 2% and 13%, and extended gains after markets regulator Securities and Exchange Board of India (SEBI) found no conclusive evidence after a probe into suspected violations in overseas investments in the group.

The Supreme Court's expert panel has ruled out a regulatory failure around the allegation of price manipulation.

"The high integrity of the members of the panel must have given confidence to investors to buy the beaten down (Adani) stocks," said VK Vijayakumar, chief investment strategist at Geojit Financial Services.

Bharat Petroleum Corporation Ltd rose over 2% and was among the top Nifty 50 gainers. The oil refiner reported a rise in fourth-quarter net profit, post-market hours on Monday.

High-weightage IT stocks rose nearly 1%. A report from credit ratings provider S&P Global Ratings, on Monday, said Indian IT companies have the resilience to downside risks due to strong balance sheets, high recurring cash flows, and execution track record.

While the debt ceiling talks in the U.S. did not yield an agreement on Monday, both US President Joe Biden and House Republican Speaker Kevin McCarthy vowed to continue negotiations.

Asian markets advanced on hints of progress in U.S. debt ceiling talks and strong macroeconomic data from Japan.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

(Disclaimer: New Delhi Television is a subsidiary of AMG Media Networks Limited, an Adani Group Company.)

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Rs 2,000 Note Order To Improve Liquidity, Ease Short-Term Rates: Experts

The Reserve Bank of India (RBI)'s decision to withdraw its highest denomination currency note from circulation is likely to improve banking system liquidity, bringing down recently elevated short term rates, analysts and bankers said.

The RBI on Friday said that it will start withdrawing 2,000-rupee notes from circulation, although they will remain legal tender. Customers holding these notes can deposit them or exchange them for smaller notes by Sept.30, 2023.

The value of such notes in circulation is 3.6 trillion rupees ($44.02 billion), but not all of this will remain in banks in the form of deposits.

Kotak Institutional Equities estimates that liquidity could improve by around 1 trillion rupees, depending on the behaviour of depositors, while QuantEco Research pegs the potential liquidity impact at 400 billion rupees to 1.1 trillion rupees.

ICICI Securities Primary Dealership estimates the liquidity surplus could increase to 1.5-2 trillion rupees.

India's banking system liquidity surplus has averaged above 600 billion rupees in May.

About 2.5-3 trillion rupees of banking sector liquidity leaks out as currency in circulation each year, wrote Pranjul Bhandari, chief India economist at HSBC. "As such, markets may anticipate some comfort on the liquidity front."

Most economists expects the note withdrawal to be less disruptive for the economy than the 2016 demonetisation.

Impact On Rates

If liquidity surplus improves sharply because of this move, "the weighted average call rate could sustain below the repo rate for the next few weeks," said Raju Sharma, chief investment officer- debt at IDBI Mutual Fund.

The overnight inter-bank rate has remained above the policy repo rate of 6.5%.

Short-term interest rates for government securities, bank bulk deposits and corporate borrowings will also likely ease.

Treasury bill auctions will see good demand in the coming weeks, said Rajeev Pawar, head of treasury at Ujjivan Small Finance Bank.

This would eventually spillover to three-year and five-year bonds and yields of such notes could fall by up to 10 basis points, he said.

"With the liquidity coming in, we do expect bullish bets on Indian government bonds to increase across the curve, especially when inflation has come off and rate cuts are getting priced in," Mr Sharma said.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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Rs 2,000 Note Order To Improve Liquidity, Ease Short-Term Rates: Experts

The Reserve Bank of India (RBI)'s decision to withdraw its highest denomination currency note from circulation is likely to improve banking system liquidity, bringing down recently elevated short term rates, analysts and bankers said.

The RBI on Friday said that it will start withdrawing 2,000-rupee notes from circulation, although they will remain legal tender. Customers holding these notes can deposit them or exchange them for smaller notes by Sept.30, 2023.

The value of such notes in circulation is 3.6 trillion rupees ($44.02 billion), but not all of this will remain in banks in the form of deposits.

Kotak Institutional Equities estimates that liquidity could improve by around 1 trillion rupees, depending on the behaviour of depositors, while QuantEco Research pegs the potential liquidity impact at 400 billion rupees to 1.1 trillion rupees.

ICICI Securities Primary Dealership estimates the liquidity surplus could increase to 1.5-2 trillion rupees.

India's banking system liquidity surplus has averaged above 600 billion rupees in May.

About 2.5-3 trillion rupees of banking sector liquidity leaks out as currency in circulation each year, wrote Pranjul Bhandari, chief India economist at HSBC. "As such, markets may anticipate some comfort on the liquidity front."

Most economists expects the note withdrawal to be less disruptive for the economy than the 2016 demonetisation.

Impact On Rates

If liquidity surplus improves sharply because of this move, "the weighted average call rate could sustain below the repo rate for the next few weeks," said Raju Sharma, chief investment officer- debt at IDBI Mutual Fund.

The overnight inter-bank rate has remained above the policy repo rate of 6.5%.

Short-term interest rates for government securities, bank bulk deposits and corporate borrowings will also likely ease.

Treasury bill auctions will see good demand in the coming weeks, said Rajeev Pawar, head of treasury at Ujjivan Small Finance Bank.

This would eventually spillover to three-year and five-year bonds and yields of such notes could fall by up to 10 basis points, he said.

"With the liquidity coming in, we do expect bullish bets on Indian government bonds to increase across the curve, especially when inflation has come off and rate cuts are getting priced in," Mr Sharma said.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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India's Forex Reserves Hit One-Year High, Rise To Nearly $600 Billion

India's foreign exchange reserves continue to rise and are edging towards USD 600 billion, hitting a nearly one-year high. In the week that ended on May 12 for which data is available, the reserves rose by USD 3.553 billion to USD 599.529 billion.

Prior to the May 12 week, they rose by USD 7.196 billion to USD 595.976 billion, RBI data showed.

Coming back to RBI's latest data, India's foreign currency assets, the biggest component of the forex reserves, rose by USD 3.577 billion to USD 529.598 billion.

Gold reserves during the latest week rose by USD 38 million to USD 46.353 billion.

In October 2021, the country's foreign exchange reserves touched an all-time high of about USD 645 billion.

Much of the decline since then can be attributed to a rise in the cost of imported goods in 2022.

Also, the forex reserves had fallen largely because of the RBI's intervention in the market to defend the depreciating rupee against a surging US dollar.

Typically, the RBI, from time to time, intervenes in the market through liquidity management, including through the selling of dollars, with a view to preventing a steep depreciation in the rupee.

The RBI closely monitors the foreign exchange markets and intervenes only to maintain orderly market conditions by containing excessive volatility in the exchange rate, without reference to any pre-determined target level or band.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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India's Forex Reserves Hit One-Year High, Rise To Nearly $600 Billion

India's foreign exchange reserves continue to rise and are edging towards USD 600 billion, hitting a nearly one-year high. In the week that ended on May 12 for which data is available, the reserves rose by USD 3.553 billion to USD 599.529 billion.

Prior to the May 12 week, they rose by USD 7.196 billion to USD 595.976 billion, RBI data showed.

Coming back to RBI's latest data, India's foreign currency assets, the biggest component of the forex reserves, rose by USD 3.577 billion to USD 529.598 billion.

Gold reserves during the latest week rose by USD 38 million to USD 46.353 billion.

In October 2021, the country's foreign exchange reserves touched an all-time high of about USD 645 billion.

Much of the decline since then can be attributed to a rise in the cost of imported goods in 2022.

Also, the forex reserves had fallen largely because of the RBI's intervention in the market to defend the depreciating rupee against a surging US dollar.

Typically, the RBI, from time to time, intervenes in the market through liquidity management, including through the selling of dollars, with a view to preventing a steep depreciation in the rupee.

The RBI closely monitors the foreign exchange markets and intervenes only to maintain orderly market conditions by containing excessive volatility in the exchange rate, without reference to any pre-determined target level or band.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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Airports Authority Of India Reports Profit For First Time Since Pandemic

Airports Authority of India (AAI) is back in the black, raking in a profit of Rs 3,400 crore in the fiscal ended March as surging domestic air traffic boosted its financial performance, according to a source.

AAI has reported a profit for the first time after the coronavirus pandemic that had significantly impacted air traffic and the aviation sector as a whole.

In the financial years -- 2021-22 and 2020-21 -- AAI had reported a loss.

While the loss was Rs 803.72 crore in the fiscal ended March 2022, the same stood at Rs 3,176.12 crore in the financial year ended March 2021.

These figures excluded exceptional and extraordinary items and tax.

The source in the know told PTI that AAI has recorded a profit of Rs 3,400 crore for the 2022-23 financial year.

This is a provisional figure and the final figure will be known after the audit of the financial results.

The source also said the good performance was mainly due to the high growth in domestic air traffic.

In 2022, domestic air passenger traffic surged 47.05 per cent to 12.32 crore compared to 8.38 crore in the year-ago period.

Further, the passenger numbers soared 51.70 per cent to 3.75 crore in the first three months of this year as against 2.47 crore in the same period a year ago, as per official data.

In 2021-22, AAI had a meagre profit of Rs 8.76 crore, including exceptional items and tax.

Meanwhile, in the fiscal ended March 2022, the government had waived compulsory dividend payment requirement. AAI had requested the waiver in lieu of waiving Air India's that was done prior to the sale of the loss-making carrier by the government to the Tata Group in January 2022.

AAI manages 137 airports, including 24 international and 80 domestic airports. It also provides Air Traffic Management Services (ATMS) over entire Indian airspace and adjoining oceanic areas.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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