RBI working paper warns of further strains in asset quality of banks
1.A Reserve Bank of India (RBI) working paper has warned banks of further strains on their asset quality.
2.The working paper titled, “Re-emerging stress in the asset quality of Indian banks: Macro-financial linkages,” said if the current adverse macro-economic condition persisted, the system level gross NPA (non-performing assets) ratio could rise to 4.4 per cent by end-March 2014. This ratio could go up to 7.6 per cent under the severe risk scenario, it added.
3.Public sector banks, it said, might continue to register highest NPA ratio.
4.The growth prospects in the near-term seemed to have subdued, it said. “In October 2013, the IMF (International Monetary Fund) scaled down its projection of world GDP (gross domestic product) growth for 2013 to 2.9 per cent. In its First Quarter Review of Monetary Policy 2013-14, the RBI has also revised its growth projection for 2013-14 downwards to 5.5 per cent,” it added. While the credit growth in the recent period had ebbed, the RBI projected the non-food credit growth to be around 15 per cent in 2013-14. “Thus, notwithstanding the fact that credit growth is not going to be significantly robust, muted economic prospects and global headwinds could lead to further deterioration in asset quality,” the RBI working paper said.
RBI panel favours single mobile banking app on all SIMs
1.For greater adoption of mobile banking in the country, a Reserve Bank of India panel has recommended that all mobile network operators (MNOs) load single mobile banking application on all new SIMs (subscriber identification modules), which use encrypted SMS (short messaging service) for transaction processing.
2.In the case of existing SIMs, the MNOs load the single mobile banking application in SMS encrypted environment and the common mobile banking application can be pushed over-the-air.
3.Further, the single mobile banking application may be pre-loaded in the handset, with the Government mandating all handset manufacturers / resellers in India. Handset manufacturers should burn the application on all new handsets.
4.The RBI’s technical committee on mobile banking suggested that the Government of India can explore the options of offering fiscal incentives / economic subventions to the stakeholders in order to ensure participation of various players to offer mobile banking solutions.
5.The central bank observed that the developments in mobile telephony, as also the mobile phone density in the country, with over 87 crore subscribers, presents a unique opportunity to leverage the mobile platform to meet the objectives and challenges of financial inclusion.
6.The committee, headed by B. Sambamurthy, Director, Institute for Development and Research in Banking Technology, recommended that customers should not be required to visit the bank branch for mobile number registration.
Telangana moves a step closer to reality
1.The Union Cabinet on Friday cleared the Bill for the creation of Telangana, paving the way for its introduction in Parliament on February 11 or 12.
2.The key demands of Seemandhra leaders that Hyderabad be made a Union Territory and Rayala Telangana be created were rejected, putting a question mark on the fate of the Bill in Parliament.
3.While the Bill as sent by the Andhra Pradesh Assembly would be commended to Parliament for consideration and passage, the government would move 32 official amendments, amplifying some administrative aspects on the bifurcation of the State.
4.The Bill will be tabled along with a summary of 30-odd pages on the proceedings in the Andhra Pradesh Assembly and Council, along with a number of amendments proposed by the State legislators.
₹10 plastic note to be tried out in five cities
1.Plastic notes in the denomination of ₹10 will be introduced on a pilot basis, Minister of State for Finance Namo Narayan Meena told to the Lok Sabha on Friday.
2.In a written reply to a question, Meena said about 1billion ₹10 plastic notes will be introduced on a trial basis in five cities — Kochi, Mysore, Jaipur, Shimla and Bhubaneswar. The field trial is expected to be launched in the second half of 2014.
3.On a question on corporate tax dues, Minister of State for Finance JD Seelam informed the Lok Sabha that the Income Tax Department has devised six points strategy to recover corporate tax dues.
4.As on December 31, 2013, total corporate tax demand outstanding has reached ₹2.46 lakh crore. There are 45 corporate cases where direct tax demand above ₹500 crore is outstanding.
5.However, “No separate data of outstanding demand from big corporate as a separate category or class is mentioned.”
6.He also disclosed that the strategy to recover outstanding tax dues will include strict monitoring and review of actions for recovery of tax demand by jurisdictional income tax authorities, use of information from Individual Transaction Statement as an effective tool of recovery in cases where taxpayers is untraceable or no asset is available for recovery, besides others.
N. Srinivasan to be new Chairman of ICC from July 2014 onwards
1.BCCI President N. Srinivasan will be the new Chairman of the International Cricket Council from July onwards for a period of two years. The decision was taken at the ICC Board meeting in Singapore today. A new model of Governance, finance and competition was also approved by voice vote. Pakistan and Sri Lanka abstained from the vote saying they need more time to consult their boards.
2.N. Srinivasan will head the ICC Board, the apex decision making body of the world cricket. He will be assisted by a new Executive Committee chaired by Wally Edwards from Cricket Australia and the Finance and Commercial Affairs Committee chaired by Giles Clarke from the English cricket Board.
3.This team will oversee the affairs of international cricket in the two year transition period till 2016. Later on, the full members of the ICC will elect a new Chairman while BCCI, CA and ECB - will be represented on both sub-committees, along with two representatives of the other Full Members who will be elected by the Board.
Competition set to begin at Sochi after dazzling opening ceremony
1.Olympic athletes were today set to compete for the first medals of the Sochi Winter Games after Russia staged a thrilling opening ceremony aimed at convincing sceptics it was a worthy host.
2.President Vladimir Putin declared open the 22nd Winter Olympics which are inextricably linked with his name, after he championed the idea, bid and sometimes controversial construction race to host the Games in the Black Sea resort.
3.After a build-up dogged by controversies on issues ranging from Russia’s gay rights record to security, the focus finally moves to the sporting action at sea-level and in the mountains with five gold medals available today.
4.The first gold will likely come from the women’s cross-country skiathlon, while Norwegian biathlete Ole Einar Bjoerndalen, 40, will become the joint most successful Winter Olympian of all time if he wins a medal in the sprint.
5.Women will seek gold in the spectacular moguls freestyle event, the men’s snowboard slopestyle will be decided after a succession of spectacular crashes while the endurance kings of speed skating will face off for the lung-busting 5,000 metres.
Apex court directs NTPC not to cut supply to BSES till Mar 26
1.The Supreme Court has directed NTPC not to cut power supply to BSES till March 26.
2.The apex court has also directed BSES to pay Rs 50 crore to NTPC within two weeks.
HTC, Nokia reach settlement on patent lawsuits
1.Taiwan’s smartphone maker HTC today said it has signed a patent and technology collaboration agreement with Finnish phone giant Nokia to end all pending patent litigation between them.
2.Under the deal, HTC will make payments to Nokia and the collaboration will involve HTC’s LTE patent portfolio to further strengthen Nokia’s licensing offering, a company statement said.
3.The companies will also explore future technology collaboration opportunities, HTC said, adding that the full terms of the agreement are confidential.
4.“Nokia has one of the most pre-eminent patent portfolios in the industry,” said Grace Lei, General Counsel of HTC. “As an industry pioneer in smartphones with a strong patent portfolio, HTC is pleased to come to this agreement, which will enable us to stay focused on innovation for consumers.”
5.Nokia said it was “very pleased” to have reached the settlement and collaboration agreement with the Taiwanese company.
SEBI chief gets 2-year extension
1.The Securities and Exchange Board of India Chairman U.K. Sinha has got a two-year extension till 2016. The Finance Ministry has issued a notification to this effect.
2.“The notification for SEBI Chairman’s extension has been sent to SEBI late last night,” a senior Finance Ministry official said.
3.The extension will be with effect from February 18 this year till 2016.
4.Under the stewardship of Sinha, who has been at the helm of SEBI for almost three years, key reform measures were initiated in the capital market.
5.These include stringent disclosure norms, strict regulations for merchant bankers and the introduction of a new category of foreign investors.
6.Sinha’s three predecessors — CB Bhave, M Damodaran and GN Bajpai — had a three-year term. Only DR Mehta had served as SEBI chairman for the longest duration from 1995 to 2002.
Infosys to set up delivery centre in Brazil
1.Expanding its presence in Latin America, software services major Infosys on Thursday said it would establish a delivery centre in Araraquara (Brazil), which will deliver application management services for clients.
2.Initially, the 100-seat facility in Brazil will house 25 people and provide SAP Application Management services to Citrosuco, the world's leading orange juice producer.
3."With this new centre, Infosys and its subsidiaries are further expanding their footprint in Latin America with operations across Brazil, Costa Rica, Puerto Rico, Mexico and Argentina, employing over 1,700 people," India's second largest software services exporter said in a statement.
4.Favourable business environment created by the government and availability of a highly skilled, multilingual workforce makes Brazil an ideal location for the new delivery centre, it added.
5.The centre will also deliver application management services supporting critical business operations, including SAP ERP systems to other clients across Brazil.
6."The new facility in Brazil will be a key part of our global network of delivery centres. It will strengthen our ability to drive innovation and growth for our clients in Latin America," Infosys Brazil Country Head Claudio Elsas said.
7.Infosys had set up operations in Brazil in 2009 and the company and its subsidiaries employ more than 700 people in the country.
Banks may use a third of buffer provisioning for NPAs
1.The Reserve Bank of India (RBI) has allowed banks to use one-third of their provisioning buffer for specific provisions for bad loans or non-performing assets (NPAs).
2."...it has been decided, as a countercyclical measure, that banks may utilise upto 33 per cent of countercyclical provisioning buffer/floating provisions held by them as on March 31, 2013, for making specific provisions for non-performing assets, as per the policy approved by their Board of Directors," RBI said in a notification on Friday.
3.According to the extant guidelines, banks are directed to use this buffer for specific provisions for NPAs during periods of system wide downturn, with the prior approval of RBI.
4.RBI further said that utilisation of this buffer could be made for additional provisions for financial distress, prompt steps to resolve it, and fair recovery for lenders and investors.
5.Banks are required to build up 'Dynamic Provisioning Account' during good times and utilise the same during downturn.
Coal India eyes mining blocks in South Africa
1.Coal India eyes mining block India is exploring coal deposits in South Africa and seeking out new, safer technology for mining and quarrying.
2.State-owned miner Coal India (CIL) signed an agreement with South Africa's Department of Trade and Industry (DTI) to explore "mutual prospects" in the African country's coal and mining industry value chain.
3."Coal India has been mapping the South African coal mining industry, with the interest of acquiring mining concessions and information on how best to exploit coal deposits in a way that serves the best interest of all stakeholders," the DTI said in a statement.
4.The agreement was reached after a meeting between Coal India representatives and DTI officials on the sidelines of the African Mining Indaba in Cape Town on Thursday.
5.CIL is foraying into foreign shores for acquisition of coal properties to ensure security of coal supply to meet the country's energy requirements. There were indications that the miner would fall short by 350 million tonnes of coal by 2016/17.cks in South Africa
Maruti Suzuki India stops production of iconic Maruti 800
1.Bringing curtains down on the glorious saga of the Maruti 800 model, Maruti Suzuki India has stopped production of the iconic car brand that had been carrier for millions of Indian middle class families, since last month, said senior official of the auto maker in Hyderabad on Friday.
2.C V Raman, Executive Director MSIL, said though the car production has stopped, spare parts will be available for customers for the next 8-10 years as per rules.
3.The car, that was a breadwinner for many MSL dealers across the country and also first car for many Indian middle class families, may not be available in newer version unlike other MSIL brands.
4."Now on the 18th of January we have stopped the M-800 production completely. We have to keep all of them (dies and moulds) for the spare parts requirement. We have to continuously meet the customer requirements. That is our duty to make sure that they get all the parts," Raman told reporters on the sidelines of launch of its new hatchback Celerio .
5.MSL has stopped selling Maruti-800, that has revolutionised Indian Auto industry, in 13 cities including Hyderabad, Bangalore, Kanpur, Pune since April 2010.
6."Our policy is 8 to 10 years we have to keep (the spares available). For all the models which have been phased out till date, we have followed this policy," Raman added.
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