RBI releases final guidelines on Basel III Framework on Liquidity Standards
RBI releases final guidelines on Basel III Framework on Liquidity Standards – Net Stable Funding Ratio (NSFR)
The Net Stable Funding Ratio (NSFR) and Liquidity Coverage Ratio (LCR) are significant components of the Basel III reforms. The LCR guidelines which promote short term resilience of a bank’s liquidity profile have been issued vide circular DBOD.BP.BC.No.120/21.04.098/2013-14 dated June 9, 2014. The NSFR guidelines on the other hand ensure reduction in funding risk over a longer time horizon by requiring banks to fund their activities with sufficiently stable sources of funding in order to mitigate the risk of future funding stress. The draft guidelines on the NSFR for banks in India were issued on May 28, 2015 for comments. The final guidelines, after considering comments received from various stakeholders, are given below for implementation by RBI.
Final Guidelines on Basel III Framework on Liquidity Standards – Net Stable Funding Ratio (NSFR)
Introduction
In the backdrop of the global financial crisis that started in 2007, the Basel Committee on Banking Supervision (BCBS) proposed certain reforms to strengthen global capital and liquidity regulations with the objective of promoting a more resilient banking sector. In this regard, the Basel III rules text on liquidity – “Basel III: International framework for liquidity risk measurement, standards and monitoring” was issued in December 2010 which presented the details of global regulatory standards on liquidity. Two minimum standards, viz., Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR) for funding liquidity were prescribed by the Basel Committee for achieving two separate but complementary objectives.
The LCR promotes short-term resilience of banks to potential liquidity disruptions by ensuring that they have sufficient high quality liquid assets (HQLAs) to survive an acute stress scenario lasting for 30 days. The NSFR promotes resilience over a longer-term time horizon by requiring banks to fund their activities with more stable sources of funding on an ongoing basis.
At the time of issuing the December 2010 document, the Basel Committee had put in place a rigorous process to review the standard and its implications for financial markets, credit extension and economic growth and agreed to review the development of the NSFR over an observation period. The focus of this review was on addressing any unintended consequences for financial market functioning and the economy, and on improving its design with respect to several key issues, notably: (i) the impact on retail business activities; (ii) the treatment of short-term matched funding of assets and liabilities; and (iii) analysis of sub-one year buckets for both assets and liabilities. These guidelines are based on the final rules text on NSFR published by the BCBS in October 2014 and take into account the Indian conditions.
Objective
The objective of NSFR is to ensure that banks maintain a stable funding profile in relation to the composition of their assets and off-balance sheet activities. A sustainable funding structure is intended to reduce the probability of erosion of a bank’s liquidity position due to disruptions in a bank’s regular sources of funding that would increase the risk of its failure and potentially lead 4 to broader systemic stress. The NSFR limits overreliance on short-term wholesale funding, encourages better assessment of funding risk across all on- and off-balance sheet items, and promotes funding stability.
Definition of NSFR
The NSFR is defined as the amount of available stable funding relative to the amount of required stable funding. “Available stable funding” (ASF) is defined as the portion of capital and liabilities expected to be reliable over the time horizon considered by the NSFR, which extends to one year. The amount of stable funding required (“Required stable funding”) (RSF) of a specific institution is a function of the liquidity characteristics and residual maturities of the various assets held by that institution as well as those of its off-balance sheet (OBS) exposures.
Minimum Requirement and Implementation Date
The above ratio should be equal to at least 100% on an ongoing basis. However, the NSFR would be supplemented by supervisory assessment of the stable funding and liquidity risk profile of a bank. On the basis of such assessment, the Reserve Bank may require an individual bank to adopt more stringent standards to reflect its funding risk profile and its compliance with the Sound Principles (issued vide circular “Liquidity Risk Management by Banks” DBOD.BP.No.56/21.04.098/2012-13 dated November 7, 2012). The NSFR would be binding on banks with effect from a date which will be communicated in due course.
Definition and computation of Available Stable Funding
The amount of ASF is measured, based on the broad characteristics of the relative stability of an institution’s funding sources, including the contractual maturity of its liabilities and the differences in the propensity of different types of funding providers to withdraw their funding. The amount of ASF is calculated by first assigning the carrying value of an institution’s capital and liabilities to one of five categories as presented below. The amount assigned to each category is then multiplied by an ASF factor, and the total ASF is the sum of the weighted amounts. Carrying value represents the amount at which a liability or equity instrument is recorded before the application of any regulatory deductions, filters or other adjustments.
Definition and computation of Required Stable Funding (RSF)
The amount of required stable funding is measured based on the broad characteristics of the liquidity risk profile of an institution’s assets and OBS exposures. The amount of required stable funding is calculated by first assigning the carrying value4 of an institution’s assets to the categories listed in the in appended table below. Unless explicitly stated otherwise in the NSFR standard, assets should be allocated to maturity buckets according to their contractual residual maturity. However, this should take into account embedded optionality, such as put or call options, which may affect the actual maturity date. The amount assigned to each category is then multiplied by its associated required stable funding (RSF) factor, and the total RSF is the sum of the weighted amounts added to the amount of OBS activity (or potential liquidity exposure) multiplied by its associated RSF factor in appended table Definitions mirror those outlined in the extant LCR guidelines, unless otherwise specified.
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WB to Scale Up India’s Energy Efficiency Program
US$300 Million World Bank Operation to Help Scale Up India’s Energy Efficiency Program
The World Bank Board of Executive Directors approved a US$220 million loan and an $80 million guarantee for the India Energy Efficiency Scale-Up Program. The Program, to be implemented by the Energy Efficiency Services Limited (EESL), will help scale up the deployment of energy saving measures in residential and public sectors, strengthen EESL’s institutional capacity, and enhance its access to commercial financing.
India’s climate change commitments to reduce carbon intensity by 33-35 percent by 2030 from 2005 level will require a significant focus on energy efficiency improvements. The investments under the Program are expected to avoid lifetime greenhouse gas emissions of 170 million tons of CO2, and contribute to avoiding an estimated 10 GW of additional generation capacity. This would be over 50 percent of the National Mission for Enhanced Energy Efficiency target of 19.6 GW indicated in India’s Nationally Determined Contributions (NDCs) under the Paris Accord.
The key components of the operation include: creating sustainable markets for LED lights and energy efficient ceiling fans; facilitating well-structured and scalable investments in public street lighting; developing sustainable business models for emerging market segments such as super-efficient air conditioning and agricultural water pumping systems; and strengthening the institutional capacity of EESL. Moreover, the Program will help to increase private sector participation in energy efficiency, including through private sector energy service companies.
Under the Program, EESL will deploy 219 million LED bulbs and tube lights, 5.8 million ceiling fans, and 7.2 million street lights, which will be supplied by private sector manufacturers and suppliers. As an integral part of the operation, the first-ever IBRD guarantee in India will help EESL access new markets for commercial financing in line with the Bank’s approach of maximizing finance for development. The guarantee is expected to leverage some $200 million in additional financing, to help EESL with its growing portfolio and future investment needs.
Demand for energy end-use appliances and equipment like lighting, ceiling fans, air conditioners, refrigerators, agricultural pumps, and industrial motors is projected to grow significantly in India. So far, through the “Unnat Jyoti by Affordable LEDs for All” (UJALA) program, EESL has already deployed more than 295 million LED bulbs, resulting in avoiding over 7,500 MW of new electricity generation capacity and bringing a significant drop in retail prices of high quality LED lightbulbs.
The India Energy Efficiency Scale-Up Program will help EESL expand UJALA’s deployment of efficient ceiling fans, LED street lights and LED tube lights, along with its already-successful LED bulbs procurement and distribution. Under the Street Lighting National Program (SLNP) of EESL which has installed over 5.8 million LED street lights in three years across more than 500 municipalities, EESL enters into long-term annuity agreements with municipalities to retrofit existing streetlights with LED lamps and fixtures, and maintain them for up to seven years. The entire investment is made upfront by EESL and recovered from the energy savings of municipalities/cities. To realize the street lighting program’s full market potential and its growing program, EESL will leverage the capacity and resources of the private energy service companies (ESCOs) to a wider range of commercial financing sources.
The $220 million loan, from the International Bank for Reconstruction and Development (IBRD) to EESL, has a 5-year grace period, and a maturity of 19 years. The $80 million IBRD guarantee will partially cover re-payment risks to commercial lenders or investors, to enable EESL to raise funds for its program.
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Launch of the Jandec Aviation and Hospitality Institute
A Grand Launch of the Jandec Aviation and Hospitality Institute held in New Delhi
The new Institute of one of India’s leading aviation and hospitality college– Jandec was launched by with former Miss India World Priyadarshini in New Delhi, at Hotel Royal Plaza, Ashoka Road. Jandec Aviation and Hospitality institute also announced Priyadarshini Chatterjee, the successful model and beauty pageant titleholder as their “Brand Ambassador”.
The Institute offers premium aviation training program for Airlines In-flight services and airport ground handling services to develop skilled manpower for airlines, airport, and hospitality and retail management industries. The goal of the initiative is to provide the industry with skilled manpower and generating employment in aviation and the support sector. JANDEC, an accredited institution in aviation provides state of the art airport ground handling training and in-flight management programs.
Speaking about the event, Jandec founder Mr. Manav Bhalla said “We are thrilled to have formally launched our Institute. It is an initiative to encourage the young demographic to pursue a career in aviation and hospitality Industry. The Institute is well equipped and is led by a group of highly accomplished professionals who have contributed immensely to the industry. It is a good start and students here will benefit greatly professionally.”
The courses offered in the Institute falls under the guidelines and needs of the industry. We strive to facilitate excellent training keeping in mind the highest industry standards. A team of highly qualified instructors who bring their years of experience and expertise to the institute will be spearheading the curriculum. The focus is to cater to the airports in the Indian subcontinent from North East India in lieu of upcoming airports in the region.
Speaking on the occasion, Ms. Priyadarshini Chatterjee said, “It is a great career prospect, a career in the aviation and hospitality sector. I am truly excited to be a part of the Jandec family and representing the brand. The Institute is well equipped and backed by top professionals to provide top-notch training that is required to excel in the Industry.”
Jandec is one of the premier vocational training institutes in India. With a unique curriculum, pedagogy and innovative programs, it has chartered a unique and high growth path not only in aviation but also in hospitality, travel management, and customer service. As an institute, it has always been in touch with various industry bodies and thus recognized industry needs in time and responded to them with quick and appropriate innovations as well as adaptations in its course curriculum as well as teaching methodologies. This constant evolution and the spirit to excel have led to Jandec being recognized as a company of repute and eminence for its professionally oriented courses.
Karnataka state Election
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| Centre for Policy Research & Trivedi Centre for Political Data (Ashoka University) invite you to a discussion on
Unpacking the results of the Karnataka elections
Presentation by Neelanjan Sircar, Senior Fellow, CPR
Panelists:
Sreenivasan Jain, Managing Editor, NDTV Radhika Ramaseshan, Consulting Editor, Business Standard Sugata Srinivasaraju, Co-Founder & Editorial Director, The State |
| Friday, 25 May 2018, 11:30 a.m. to 1:00 p.m. |
| Conference room, Centre for Policy Research |
Press Conference QuickX Protocol solicit your benign presence
Naresh Kumar Sag 
Event
Press Conference
QuickX Protocol solicit your benign presence at
the welcome of former Finance Minister, Malta (Island of Blockchain), Mr. John Dalli.
He is joining Quick X Protocol Advisory board to promote and support the technology Internationally
Date
22th May 2018 (Tuesday)
Time
3:00 PM
Venue
Constitution Club of India, Sansad Marg Area, Rafi Marg, Vithal Bhai Patel House, New Delhi- 110001
Invitation to The First Pandit Deen Dayal Upadhyay Memorial International Oration
RMP Delhi <rmpdelhi@rmponweb.org> to you & 3 other(s)
Thu, 17 May 2018 17:57:17
1 attachment
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Dear Sir/ Madam
Request you to kindly find an invitation from Indian Council for Cultural Relations (ICCR) for The First Pandit Deen Dayal Upadhyay Memorial International Oration.
Speaker: Smt. Sushma Swaraj, Minister of External Affairs, Government of India
Date: Monday, 21st May 2018
Time: 06:00 PM
Venue: Pravasi Bhartiya Kendra Auditorium, Rizal Marg, Chanakyapuri, New Delhi
RSVP: 011-23379386, 23378616
TN Misled on Kavery was getting 411 TMC to get 177 TMC
May20, 2018 (C) Ravinder Singh progressindia2015@gmail.com
TN was misled by Dubious Lawyers in to going to Supreme Court in 2002 when average releases at Billigundlu were 289 TMC in previous 10 years.
[I read an article in Frontline Magazine – found Karnataka to be unjustly hauled to the Supreme Court wanted to help Karnataka – met CM and Cabinet Ministers]
Some minor rivers of Karnataka between Billigundlu and Metur Dam gates also contributed 122 TMC of Water.
So average releases at Metur Dam was 411 TMC of Water before 2002 dispute. CWDT had prescribed just 205 TMC of Water releases, SC 177.25 TMC in 2018.
Post Tribunal Award and latest Supreme Court order – Karnataka is Directed to release only 177.25 TMC of water in to TN region of Cauvery Basin. Actually Tribunal & Supreme Court had fixed normal Consumption Limits by each party state.
In 2001-02 in Low Rainfall year yield was slightly less than prescribed – 189.90 or Short by just 15 TMC – TN went to Apex Court when Excess Releases were 845 TMC in past 10 years.
Water Releases at Billigundlu in TMC
Years
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Releases in TMC
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Years
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Releases in TMC
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1991-92
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340.58
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1996-97
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245.40
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1992-93
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358.61
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1997-98
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282.90
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1993-94
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230.28
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1998-99
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257.70
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1994-95
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393.90
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1999-00
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273.10
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1995-96
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195.50
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2000-01
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316.80
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5 Yrs Yield
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1518.87
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5 Yrs Yield
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1375.90
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Avg Yield/Yr
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303.77
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Avg Yield/Yr
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275.18
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Add Avg Yield
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122.00
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Add Avg Yield
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122.00
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Yield @Mettur
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425.77
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Yield @Mettur
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397.18
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Tech Arbitration & Cooperation for Optimum Water Use
TN & Karnataka should Co-operate to OPTIMIZE Water Use – 1. Introduce Short Duration HY Paddy, 2. Build Canals and Pipelines for Irrigation & Urban Water Supply, 3. Build additional Storage Dams to Capture Floods, 4. Dismantle Check Dams & Inefficient Storages, 5. Recycle Waste Water. 6. Regulate Water Releases linked to Weather Forecast. 7. 24 hour Water Information System, >>
30% Water Saving or 50% More Water Usage Possible Through Cooperation & Engineering – TN & Karnataka has resources to do it.
Ravinder Singh, Inventor & Consultant, INNOVATIVE TECHNOLOGIES AND PROJECTS
Y-77, Hauz Khas, ND -110016, India. Ph: 091- 8826415770, 9871056471, 9650421857
Bheemchaaya: Small window of justice for helpless and terrified poor residents
Bheemchaaya: Small window of justice for helpless and terrified poor residents
Due to impending monsoon, there is threat to the life of residents
Mumbai | 20th May, 2018: Following the Bombay High Court’s order dated 6thOctober, 2005 in the matter of Bombay Environment Action Group in WRIT PETITION (LODGING) NO. 3246 OF 2004 regarding protection of Mangrove, a large number of Mangrove areas in Mumbai and Navi Mumbai were notified as ‘Protected Forest’ by Maharashtra Forest Department. Since certain activities can be allowed in ‘Protected Forest’ like collection of forest produce etc, Maharashtra govt decided to notify all those areas as ‘Reserved Forest’ which were earlier declared as ‘Protected Forest’ as per the High Court’s order.
Bheemchhaya is slum having 800 households where majority of the residence are Dalits. This slum is situated in Kannamwar Nagar 2 in (Vikroli East) in Mumbai. Bheemchhaya is in close proximity to Mangroves area which is notified as reserved forest.
The Court in the order said that no construction will be allowed to take place in the mangrove areas after the passing of this order. However, Bheemchhaya is in existence prior to order of the High Court was passed and it is also a protected slum as per the Maharashtra Slum Areas (Improvement Clearance & Redevelopment) 1971. A slum is treated as protected if it is in existence prior to the year 2000 and the slum dwellers possess certain documents specified by the government to prove their residence since the year 2000. Slum dwellers in Bheemchhaya have all the valid documents proving their residence prior to the year 2000.
The Mangrove Cell of the Forest Department served notices to the residence of the Bheemchhaya in the year 2015 to prove their claims on the land where their homes are located. All the residence submitted their residential proofs specified under the Maharashtra Government Resolution dated 16th May, 2015. This Government Resolution (GR) has specified procedure for the rehabilitation and protection of slum dwellers on government land if they possess specified documents prior to the year 2000. However, the Assistant Conservator of Mangrove Cell, rejected these claims and passed an order of demolition of their homes in Bheemchhaya. The Assistant Conservator passed these orders under section 53 and 54 of the Maharashtra Land Revenue Code 1966 (MLRC). Section 246 of MLRC provides for appeal if someone is aggrieved by the order passed under section 53 and 54. Whereas in case of Bheemchhaya, the Assistant Conservator has not specified the appellate authority and it is only after an RTI was filed, the Assistant Conservator gave a vague response saying that the appellate authority ‘may be High Court or Divisional Commissioner, Konkan Division’.
Residents of Bheemchhaya have contacted the Divisional Commissioner for appeal. The office of the Divisional Commissioner has refused to accept the appeal since this office only deals with matter pertaining to land belonging got revenue department and not forest department. While on the other hand, the residents of Bheemchhaya have also approached the High Court, but since the Court is on vacation and the vacation bench is sitting on selected days, it is very rare that the matter will be heard on time. The demolition is scheduled for 22nd May, 2018. Our lawyers will mention the matter on 21stMay to get the stay but it is not sure that the stay will be granted on the same day.
The Forest Minister is out of country and his secretaries are also on leave so there are no chance so there is no one available in the Ministry to hear the grievances of the slum dwellers. When everyone is on leave, why cannot slum be spared from demolition?
It is a case where there are so many procedural flaws are there due to which a huge community like Bheemchhaya will be demolished and a large population of dalit and poor people will become homeless. To get these flaws fixed and get protection to slum dwellers there is a very small window of justice available. In this situation, the slum dwellers are left helpless and terrified.
Poorest of the poor citizen must get state’s priority but today opposite of this is happening. These poor citizens have equal contribution in the functioning of the city but their hard work and labour are not duly recognized. They are always treated as secondary citizen due to their poverty and stigmas attached to slum dwellers
Do write/call to appeal to stop the demolition:
| Name | Designation | Phone | |
| Shri. Vasudevan N. | Additional Principal Chief Conservator of Forest | ccfmmumbai@gmail.com |
Creation of Directorate General of Trade Remedies (DGTR)
Creation of Directorate General of Trade Remedies (DGTR) in Department of Commerce
The Government of India carried out an Amendment to the Government of India (Allocation of Business) Rules, 1961 on May 7, 2018 substituting “Directorate General of Trade Remedies” in place of “Directorate General of Anti-Dumping and Allied Duties” in Department of Commerce. This has paved way for creation of an integrated single umbrella National Authority to be called the Directorate General of Trade Remedies (DGTR) for providing comprehensive and swift trade defence mechanism in India. The amendment of Allocation of Business Rules has also mandated Department of Commerce with work pertaining to recommendation of Safeguard measures.
Currently, the Directorate General of Anti-dumping and Allied Duties (DGAD) deals with anti-dumping and CVD cases, Directorate General of Safeguards (DGS) deals with safeguard measures and DGFT deals with quantitative restriction (QR) safeguards. Therefore, the creation of DGTR will provide a level playing field to the domestic industry. In the last three years, India initiated more than 130 anti-dumping/countervailing duty/safeguard cases to deal with the rising incidences of unfair trade practices and to provide a level playing field to the domestic industry.
The DGTR will function as an attached office of Department of Commerce. The recommendation of DGTR for imposition of Anti-dumping, countervailing & Safeguard duties would be considered by the Department of Revenue. The DGTR will also bring in substantial reduction of the time taken to provide relief to the domestic industry
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We Walk our Talk Compendium for the period 14th May 2018 – 19th May 2018
During the last week, PHD Research Bureau, the research arm of PHD Chamber of Commerce and Industry focussed on various issues and challenges pertaining to the economic and business environment in the country. PHD Research Bureau disseminated information to members of PHD Chamber & other stakeholders on various issues such as April 2018 WPI inflation, April 2018 CPI inflation, Decisions taken by Union Cabinet, RBI notifies permissible activities under setting up of IFSC Banking Units (IBUs), WTO suggests strong global trade growth to continue but get soften in Q2-2018 etc., apart from information on lead macroeconomic and socio-economic indicators.
India and World Economy
· April 2018 WPI inflation grows at 3.18%— The WPI inflation grows at 3.18% in April 2018 as compared to 2.47% in March 2018, 2.74% in February 2018, 3.02% in January 2018, 3.58% in December 2017 and 4.02% in November 2017. The rise in WPI inflation in the month of April 2018 is attributed to rise in the prices of potato (67.94%), fruits (19.47%), petrol (9.45%) and HSD (13.01%).
· April 2018 CPI inflation grows at 4.6%–The all India general CPI inflation (Combined) for April 2018(Prov.) grows at 4.58% as compared to 4.28% % in March 2018. The inflation rates for rural and urban areas for April 2018 (Prov.) are 4.7% and 4.4% respectively, as compared to 4.4% and 4.1% respectively, for March 2018. Rate of inflation during April 2018 (Prov.) for fruits (9.65%), housing (8.5%), pan, tobacco and intoxicants (7.91%), vegetables (7.29%) and egg (6.26%) etc.
· Decisions taken by the Union Cabinet 11–The Union Cabinet chaired by chaired by Hon’ble Prime Minister Shri Narendra Modi has given its ex-post facto approval for signing of the MoU for cooperation in the legal field between India and Morocco, in order to share their experience and expertise in the field of law and legislation, between the India and Swaziland on cooperation in the field of Health and Medicine, between India and Suriname on cooperation in the field of electoral management and administration including exchange of knowledge and experience in the field of organizational and technical development of electoral process; support in exchanging information, institutional strengthening and capacity building, training of personnel, holding regular consultations etc.
· 30 States and Union Territories participate in State Startup Ranking Framework 2018— With the aim to foster competitiveness and to propel the States and Union Territories to work proactively towards promotion of their Startup eco-systems, the States Startup Ranking Framework was launched by Department of Industrial Policy and Promotion (DIPP) on 6th February 2018. This was also targeted at facilitating States/UTs to identify, learn and replicate good practices from each other and for bringing to fore, their own progress in the regard.
· Roll out of e-Way Bill system for intra-State movement of goods in the States– As per the decision of the GST Council, e-Way Bill system for inter-State movement of goods has been rolled out from 01st April, 2018. As on 13th May, 2018, e-Way Bill system for intra-State movement of goods has been rolled out in the States/ Union Territory of Andhra Pradesh, Arunachal Pradesh, Bihar, Gujarat, Haryana, Himachal Pradesh, Jharkhand, Karnataka, Kerala, Madhya Pradesh, Meghalaya, Nagaland, Sikkim, Telangana, Tripura, Uttarakhand, Uttar Pradesh and Puducherry.
· Memorandum of Understanding signed with States for implementing PMRSSM— Hon’ble Union Minister of Health and Family Welfare Shri J P Nadda, presided over a Memorandum of Understanding (MoU) signing ceremony with four States – Himachal Pradesh, Haryana, Jammu & Kashmir, Uttarakhand and Union Territory of Chandigarh for implementing Ayushman Bharat-Pradhan Mantri Rashtriya Swasthya Suraksha Mission (PMRSSM),at a regional workshop for northern States at Shimla recently. The Union Health Minister further stated that health is at the centre-stage and the Government is looking at it holistically. He said that PMRSSM will protect the people and at the same time Health and Wellness Centres (HWCs) will deliver comprehensive primary health care.
· Ministry of Environment, Forest and Climate Change Forms 19 Teams to Undertake Cleaning of Beaches, River Fronts and Lakes— In the build-up to the World Environment Day 2018, the Ministry of Environment, Forest and Climate Change, has formed 19 teams to take up cleaning of beaches, river fronts and lakes in the country. Cleaning up of around 24 beaches in nine (9) coastal states (list attached) and cleaning of river fronts in 24 identified polluted stretches in 19 states (list attached) will be undertaken. Besides the listed rivers, a special cleanliness drives will be carried out at Yamuna riverfront in Delhi. Certain lakes and water bodies have also been identified for cleaning.
Finance
· RBI notifies permissible activities under setting up of IFSC Banking Units (IBUs)– This is in reference to Reserve Bank of India (RBI) circular DBR.IBD.BC.14570/23.13.004/2014-15 dated April 01, 2015, as modified from time to time, setting out RBI directions relating to IFSC Banking Units (IBUs). In terms of para 2.3 of the circular, the parent bank will be required to provide a minimum capital of USD 20 million or equivalent in any foreign currency to start their IBU operations and the IBU should maintain the minimum prescribed regulatory capital on an on-going basis as per regulations amended from time to time.
Trade
· WTO suggests strong global trade growth to continue but get soften in Q2-2018– The World Trade Organization’s (WTO’s) latest World Trade Outlook Indicator (WTOI) suggests that strong trade growth continues but may soften in second quarter of 2018. The latest value of 101.8 is down from 102.3 in the last WTOI release in February 2018 but above the baseline value of 100 indicating growth in line with recent trends, which suggests continued solid trade growth in the second quarter but probably at a slightly slower pace than in the first quarter.
· Merchandize exports and imports grew by 5.17% and 4.6% during April 2018, respectively– India’s merchandize exports have exhibited growth of 5.17% in April 2018 to value at USD 25.91 billion compared to USD 24.64 billion during April 2017. India’s merchandize imports grew by 4.6% to value at USD 39.63 billion in April 2018 compared to USD 37.88 billion during same period previous year.
Our Voice
Sudden jump in WPI inflation worrying– Sudden jump in WPI inflation to 3.18% in the month of April 2018 from 2.47% in March 2018 is worrying. Rise in the prices of fruits and vegetables, fuel and power vis-à-vis increase in international crude oil prices, have stoked the overall WPI inflation. Prices of fruits have increased to 19.47% in April 2018 from 9.26% in March 2018 while prices of vegetables have increased to (-) 0.89% in April 2018 from (-) 2.70% in March 2018. Prices of fuel and power on the other hand have increased to 7.85% in April 2018 from 4.7% in March 2018 due to increase in international crude oil prices to the tune of 13%. We hope that prices should not escalate further as prediction for the good monsoon is intact and stability is expected in the international crude oil process going forward. Further reforms in the agriculture sector and supply chain would provide a great stability in the inflation scenario in the coming times.
Economy so far
· Rising oil prices: Import bill may rise up to $50 bn – The finance ministry stated rising crude oil prices could drive up India’s import bill in the range of $25-50 billion this fiscal, worsening the current account deficit. However, elevated oil prices would impact neither economic growth nor the fiscal deficit of the Centre.
· Growing at 9-10 pc challenge for India, says Niti Aayog CEO Shri Amitabh Kant -Growing at a 9-10 % rate in the next 30 years is a challenge for India which is expanding at 7.5 % per annum. He stated that the country has created one of the finest startup ecosystems in the world and these ventures are doing extremely well.
· India Corruption Study: 75% households feel corruption went up, 27% say paid bribe – The study by CMS, a not-for-profit, multi-disciplinary development research and facilitative think-tank set-up in 1991, estimates that households in the 13 states that were part of the study would have paid between Rs 2,500 to Rs 2,800 crore during a year to avail these public services.
· Currency situation normal, all ATMs functioning well says Economic Affairs Secretary – The currency situation is completely normal and ATMs are working well across the country stated Economic Affairs Secretary. Adequate amount of currency is available across the country and there are no reports of shortage now, he told reporters here. It is to be noted that five-six states faced currency shortage last month, prompting the government and the RBI to take various steps to ease the situation.
· China’s ‘debt trap’ economics will likely result in it gaining greater access to nations around India: US think-tank – An influential US think-tank expert has warned that the increasing Chinese economics of “debt trap” will likely result in Beijing gaining greater access to several key countries around India.
· RBI issues guidelines on net stable funding ratio – The RBI issued detailed NSFR guidelines to ensure that banks maintain a stable funding profile in relation to the composition of their assets and off-balance sheet activities. In the backdrop of the global financial crisis that started in 2007, the Basel Committee on Banking Supervision (BCBS) proposed certain reforms to strengthen global capital and liquidity regulations with the objective of promoting a more resilient banking sector.
· Falling rupee to impact investor return of solar projects: Ind-Ra – Depreciation of rupee will impact investor return of solar power projects, according to rating agency Ind-Ra. A weakening rupee, if unhedged, will impact investor returns in bid solar projects in the event of a significant exchange rate variation between the time of bidding and finalisation of module supply agreement.
· Investment in NCD control leads to improvement in health, economy, says WHO report – A WHO report shows that the world’s poorest countries can gain USD 350 billion by 2030 by scaling up investments in preventing and treating chronic diseases like cancer and heart ailments, which will save more than 8 million lives.
· Odisha touches record high revenue generation – The total revenue generation in Odisha reached a record high by the end of the fiscal year 2017-18.The total revenue collection during 2017-18 has been to the tune of Rs 84,793 crore. This is the all-time high revenue generation in the state and around 22.24 % of the total Gross State Domestic Product (GSDP).
· Centre’s Finances: FY18 fiscal deficit at 3.42% versus RE of 3.5% – The Centre has contained its fiscal deficit for FY18 at 3.42% of gross domestic product (GDP), down from 3.5% estimated (RE) when Budget FY19. An Rs 85,000-crore (3.8%) reduction in expenditure from the RE level of rs 22.18 lakh crore and a marginal upward revision in nominal GDP in the second advance estimate (the Budget relied on the first advance estimate) allowed the government to curb the deficit.
· Renewables firms CEOs find low tariffs irrational – Most of the leaders in the domestic renewable energy sector believe that developers have been irrationally aggressive while bidding for solar and wind power plants in the reverse auctions held by the central and state governments. A survey conducted by renewable consultancy firm Bridge to India found out threats from impending safeguard duty, poor policy environment and weak financial condition of discoms to be the biggest challenges the sector is facing at present.
· Cabinet approves National Biofuel Policy – The Cabinet approved the National Policy on Biofuels which allows doping of ethanol produced from damaged foodgrains, rotten potatoes, corn and sugar beet with petrol to cut oil imports by Rs 4,000 crore this year alone. Till now only ethanol produced from sugarcane was allowed to be mixed in petrol.
· Urgent need to auction private blocks to hike coal production, says CARE Ratings – India remains among the top-3 coal producers in the world and as per data for 2016 by IEA, overtook USA. India has been reporting growth in production to fuel its large thermal power capacity which contributes to 72% of the country’s electricity generation.
· Trade facilitation pact in services at WTO to push global economy- Commerce and Industry Minister Shri Suresh Prabhu pitched for inclusion of the trade facilitation pact on services in the World Trade Organisation (WTO) stating it would help promote growth of the global economy.
· Inflation to average around 5.1% this fiscal, says HSBC report – Inflation is set to rise further towards the second half of the fiscal, and could average 5.1 % this financial year compared to 3.6 % last year, stated an HSBC report. According to the global financial services major, the factors that are likely to impact inflation going forward include higher oil prices, a weaker rupee, higher MSPs and more currency in circulation.
Markets so far
Indicators
|
Yearly
|
Monthly
|
Daily
| ||||||
2015
|
2016
|
2017
|
Feb 18
|
March 18
|
April 18
|
(16-05-2018)
|
(17-05-2018)
|
(18-05-2018)
| |
BSE SENSEX
|
26118
|
26,626
|
34,056.83
|
34,184.04
|
30,491
|
35,160.36
|
35,387.88
|
35,149.12
|
34,848.30
|
GOLD (10 GRMS)
|
24994
|
29419.95
|
28966.08
|
30,356.92
|
30,419.28
|
30,955.57
|
30,954
|
30,826
|
30,921
|
CRUDE OIL (1 BBL)
|
2,431
|
2,924.63
|
3,317.11
|
4004.70
|
4072.57
|
4,341.41
|
4,815
|
4,849
|
4,841
|
EXCHANGE RATE (INR/USD)
|
64.15
|
67.21
|
65.11
|
64.37
|
65.02
|
65.63
|
67.79
|
67.69
|
68.01
|
Source: PHD Research Bureau, complied from BSE, MCX and Bloomberg
Unemployment and Consumer Sentiments Indices
Indicators
|
27-04-2018
|
03-05-2018
| ||||
India
|
Urban
|
Rural
|
India
|
Urban
|
Rural
| |
Unemployment Rate
|
5.98
|
6.43
|
5.75
|
5.86
|
6.59
|
5.48
|
Consumer Sentiments
|
93.31
|
86.05
|
97.63
|
94.01
|
86.71
|
98.18
|
Source: PHD Research Bureau, complied from BSE
Today tweet
Naresh Kumar Sagar
@Nksagar
·
4m
Sagar Media Inc: Cuba mourns death of 104 in plane crash. Royal weddings at WM complete Prince Wed HarMeg. JDS Congress rule Bengaluru. HM Rajnath Women no Show case but are empowering. NKorea US meet in Singapore is seen Trump’s Triumph. India 2019Election Modi majority choice
Naresh Kumar Sagar
@Nksagar
·
24m
Sagar Media Inc : High wind Alert in Kerala. The Low pressure area located South of Lakshadeep is strengthening in to a Deep Depression. Due to its influence ,Wind speed may increase in the West coast from Trivandrum to Gujarat .Sky will be cloudy. system is whirling 35 kmh.
You Retweeted
mCube Awards 2018 – Early Bird Slot Opens
mCube Awards 2018 – Early Bird Slot Opens
When
|
Mon May 21, 2018
|
Where
| |
Calendar
|
nksagar_1@yahoo.com
|
Who
| (Guest list is too large to display) |
The enthralling season of the Indian Premier League will be concluding next week, and all cricket fans in India would be quite nostalgic about it.
However, if you are a Marketer, there is something to look forward to – the return of the Masters of Modern Marketing Awards 2018 (mCube 2018)
– India’s premier forum for recognizing marketing excellence and for discussion of industry trends by the stalwarts.
– India’s premier forum for recognizing marketing excellence and for discussion of industry trends by the stalwarts.
The entry submission process opens on Monday, 21 Mayand there are interesting new initiatives in this year’s edition such as the Marketing Champions League (MCL) India. MCL is the first time the nation will witness a marketing knowledge-based contest at such an enormous scale. The Grand Finale of the MCL shall be held as part of the mCube Awards show scheduled on 23 August 2018.
Watch out for our subsequent communication for further details. Stay tuned! #mCube2018 #MCL2018
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