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Banikinkar Pattanayak

Articles By Banikinkar Pattanayak

902 Articles

IBC sharply reduced haircuts for lenders, says IBBI chief Sahoo

“It is axiomatic that a company coming to the IBC does not have adequate assets to repay all its creditors. On an average, the companies, which have been rescued through the IBC till March 2021, had assets valued at 22% of

Some analysts have also pointed out that the mere threat of IBC by creditors has facilitated recovery 90-100% dues in most cases, leading to the withdrawal of insolvency applications before the actual proceedings start at the NCLT.

IBBI: Too early to think about pre-pack scheme for large firms

Already, IPs have, in many cases, unearthed avoidance transactions and filed applications with the National Company Law Tribunal (NCLT) for appropriate directions, he said.

IBC

Stiff target: New Foreign Trade Policy aims for exports of $1 trillion by FY26

To achieve the ambitious goal, exports must grow 15% CAGR, against barely 5% in the five years through FY20

This will warrant a substantial, and sustained, scaling up of exports — to a compounded annual growth rate of 15% until FY26 from about 5% in the five years through FY20 (before the pandemic).

Lower Barriers: India’s tariffs record sharp drop from 17.6% in 2019 to 15% in 2020

Economists, however, have been critical of New Delhi’s move to undermine liberalisation, achieved assiduously over the years since the 1990s.

A sustained drop in imports will also help the country lower its trade imbalance, which, some officials reckon, will not just ease pressure on its current account but boost its GDP growth as well.

Covid vaccine inputs: WTO lists ‘bottlenecks’ plaguing global vaccine trade, flags absence of norms to expedite supply

The list is based on the issues identified and suggestions made by speakers at the WTO’s webinars in June on regulatory cooperation during the pandemic.

Initial data from the interim analysis on the immunogenicity of the combined use of the AstraZeneca and Sputnik V vaccines has demonstrated a “high safety profile” and “no serious adverse events or cases of coronavirus after vaccination”, RDIF said.

Weaving success: New textiles minister Piyush Goyal to review Rs 10,683-crore PLI scheme

The draft pledged as much as 11% incentive to large companies for investments over Rs 500 crore in greenfield projects in technical textiles.

pli scheme, piyush goyal

Stressbuster: National Asset Reconstruction Company to be operationalised in a month

The finance ministry could soon seek the Cabinet's approval for a plan to offer sovereign guarantee on the security receipts (SRs) issued by the NARCL while acquiring bad loans from lenders. This is estimated to cost the exch

As reported by FE, not just large lenders but all public-sector banks (PSBs), except for Punjab & Sind Bank, could pick up stakes in NARCL. The IBA has also held talks with REC, seeking its contribution to equity.

Exporters’ refund: RoDTEP outlay may be raised by Rs 4,000 crore

However, the commerce department wanted all the 11,310 tariff lines covered, arguing that the new scheme would otherwise seem like a replica of the MEIS that has been deemed by a WTO panel as being “inconsistent” with glo

This will warrant a substantial, and sustained, scaling up of exports — to a compounded annual growth rate of 15% until FY26 from about 5% in the five years through FY20 (before the pandemic).

Exports to China: Raw inputs dominate supplies, limit growth prospects

In fact, the share of raw inputs in China’s purchases from India rose at a brisk pace last fiscal, at the cost of more value-added consumer or capital goods, according to an FE analysis.

Raw materials, mainly iron ore, cotton and plastics, and intermediate goods such as low-grade iron & steel, chemicals and copper were shipped to China in large volumes last fiscal.

All PSBs, REC to buy stakes in bad bank; Indian Banks’ Association files application for incorporation of NARCL

Not just large lenders but all public-sector banks (PSBs), barring Punjab & Sind Bank, have evinced interest in picking up stakes in the so-called bad bank, one of the sources said.

A top banker had last week said the cost to the exchequer won’t exceed Rs 30,600 crore, as estimated by the IBA, as the prospects of recovery from some of the bad loans looked promising.

IIFCL adopts real-time monitoring of infra projects: MD

The move will enable the infrastructure lender to scrutinise fund utilisation on a real-time basis, bolster an “early warning system”, expedite decision-making and identify outliers that can be used for policy updates and

Infra projects

NHB mulls entity for securitisation; housing finance to get a leg-up

This special purpose entity (SPE) is expected to be established as a non-banking financial company (NBFC) and regulated by the Reserve Bank of India (RBI). The entity will help deepen the securitisation market, resolve bad lo

housing

Commerce ministry to seek duty relief for SEZs

Currently, SEZ units are mandated to pay the regular customs duty on a product if they sell it in the domestic tariff area (DTA).

SEZs

Bad bank: Govt guarantee seen costing Rs 30,600 crore

Govt won't infuse capital into the proposed entity, banks will; yet, govt expected to give guarantee on the security receipts issued by the body

Of the 101 non-performing assets (NPAs) initially reviewed, banks have zeroed in on 22 accounts amounting to roughly Rs 89,000 crore for transfer to NARCL in the first phase.

India-European Union FTA: Talks to restart soon on realistic note

Experts, too, suggest that both the sides need to work on less controversial issues first; the more difficult ones can be taken up later, as any deal there will take time to materialise.

This will warrant a substantial, and sustained, scaling up of exports — to a compounded annual growth rate of 15% until FY26 from about 5% in the five years through FY20 (before the pandemic).

Covid-19 products: WTO to begin talks on patent waiver

The proposal, first submitted in October last year, sought patent waivers to manufacture Covid-related medical products by temporarily suspending certain parts of the global Trade-Related Aspects of Intellectual Property Righ

Empirical studies have shown that trade pacts and investments are complements when the partner countries differ in relative endowments and are at different stages of development, while trade pacts and investments could be substitutes when the partner countries are similarly endowed and competing for the same FDI.

Trade Talk: China is now second-largest export destination, behind only US

Analysts, however, caution against reading too much into the FY21 data, saying “one swallow doesn’t make a summer”. As such, the pandemic year isn’t the ideal time to forecast a trend on its basis.

Empirical studies have shown that trade pacts and investments are complements when the partner countries differ in relative endowments and are at different stages of development, while trade pacts and investments could be substitutes when the partner countries are similarly endowed and competing for the same FDI.

Fresh stimulus unlikely in Q1, focus shifts to undertaking budgetary capital spending

Certain amount of demand stimulus part of Budget FY22, more steps at this stage could stoke inflation, feel officials

The moves helped generate savings for the Centre, of up to Rs 1.15 lakh crore in the first half of the current fiscal as per an FE estimate.

‘Don’t expect India’s debt to fall to pre-pandemic level anytime soon’: Interview: William Foster, V-P and senior credit officer (sovereign risk), Moody’s Investors Service

At this stage, we expect negative sequential economic activity to be limited to the April to June quarter, with annual real GDP growth of 9.3% in the fiscal year ending March 2022 and 7.9% the following fiscal year.

Somewhat slower growth due to the second wave and higher fiscal deficits will result in a higher debt burden.

Surge in second wave to lower our India GDP forecast: Jeremy Zook, director (sovereign ratings), Fitch Ratings

"The rating would come under additional pressure from a worsening of the debt ratio trajectory resulting from weaker medium-term growth prospects or further widening of fiscal deficits."

Interest payments: India’s soaring debt may curb productive spending

Foster expected debt to stabilise at around 92% of GDP by FY25, against 88.9% (Moody’s estimate) in FY21. This is among the least optimistic projections of India’s debt profile; some other agencies have forecast the burde

SS Mallikarjuna Rao, MD and CEO, Punjab National Bank, said: “The announcement of on tap-liquidity facility of Rs 15,000 crore will ensure credit flow to the contact-intensive sectors and MSMEs, including hotels, tourism, aviation, etc. which have been adversely impacted.”

Your Money: Could your bank be headed for bankruptcy?

If the Altman Z score is less than 1.10, the bank is a bankruptcy candidate

Altman developed the Z score as a tool for predicting the bankruptcy of a bank.

Tax refund: Govt likely to raise allocation for key export scheme

While the revenue department will take a final call on the hike, sources said the total allocation for FY22 may finally jump to about Rs 25,000-30,000 crore.

The Pillai committee was tasked with the job of recommending rates for the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme.

Incentives for R&D: New foreign trade policy to retain key schemes despite WTO trouble

Key elements from a national logistics policy, which has been in the works for months, will likely feature in the FTP. This policy will aim to reduce logistics costs from 13% of GDP to 8% over five years and substantially imp

New Delhi believes that it has a strong case and the verdict of the appellate body, when it comes, should go in its favour.

Wider Coverage: Commerce Ministry weighing proposal to revamp scheme for services exports

The revamped Service Exports From India Scheme (SEIS) may be part of the new five-year Foreign Trade Policy (FTP), which will be effective from October 2021, sources told FE.

Gold schemes fetch record Rs 20,227 crore in FY21

At Friday’s closing price (MCX futures), the collection under gold schemes in FY21 would represent over 42 tonnes of the precious metal. This suggests a marked improvement from earlier years of these schemes as well as simi

Nevertheless, the current monetisation scheme has witnessed a marked improvement upon an earlier one under which the government had garnered only two tonnes of gold between 1999 and 2015.

Liquidity Woes: Services exporters hit as benefits held back

The SEIS was introduced in the Foreign Trade Policy (FTP) for 2015-20; the validity of the FTP has now been extended up to September 2021.

Exporters have been awaiting the notification of support for FY20 and FY21 under the Service Exports From India Scheme (SEIS).
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