Market round up
US Fed forges on with 25 bps rate hike, asset plan amid inflation worry
The US Federal Reserve (US Fed) on Wednesday forged ahead with a 25 bps interest rate hike and additional plans to tighten monetary policy despite growing concerns over weak inflation.
Policymakers agreed to raise their benchmark lending rate for the third time in six months to 1.25% from 1%, maintained their outlook for one more rate hike in 2017, and set out some details for how they intend to shrink their $4.5 trillion balance sheet this year.
Inflation loses bite: May WPI down at 2.17% on cheaper veggies
Cheaper vegetables, along with pulses and meat, dragged down wholesale inflation for May to a five-month low of 2.17 per cent, putting pressure on the RBI to relax interest rate.
The wholesale price index (WPI) based inflation was 3.85 per cent in the previous month and (-)0.9 per cent in May 2016. The reading was 2.10 per cent in December 2016.
7 mn jobs added between FY11 and FY15, says McKinsey report
The labour market in India is undergoing a structural transformation. A staggering 33 million jobs were created in the non-farm sector between 2010-11 and 2014-15 finds a new study by McKinsey Global Institute. This implies that roughly eight million jobs were created on average each year.
But, with farm employment falling by 26 mn over the same period, the net addition to employment over the entire four year period was a mere 7 mn. Overall employment rose from 456 mn to 463 mn over the period.
RBI's bad loan resolution move throws bankers into a tizzy
The Reserve Bank of India's (RBI's) decision to refer large cases of stressed loans for bankruptcy proceedings has thrown bankers into a tizzy on how to start the process, signalling that the bad loan resolution process could be long-drawn.
Bankers are awaiting the list of accounts from RBI despite having access to the Central Repository of Information on Large Credits, a centralized database of large exposures.
RBI initiates prompt corrective actions on Central Bank of India over high NPA's, negative ROA
The Reserve Bank of India (RBI) has initiated a prompt corrective action (PCA) plan for Central Bank of India owing to the lender's high net non-performing assets (NPAs) and negative return on assets (ROA). A notification to this effect was sent to the stock exchanges by the lender on Wednesday. In 2016-17, Central Bank's net NPA ratio stood at a high 10.20%, while the ROA was -0.80%.
Central Bank is the third bank after IDBI Bank and Dena Bank to be put under PCA by the RBI after it published the revised PCA framework in April. In 2016-17, the public sector lender reported a net loss of Rs 2439 crore atop a loss of Rs 1,418.2 crore in 2015-16. The bank had a balance sheet size of Rs 3.30 lakh crore at the end of March 2017, compared with Rs 3.0 lakh crore in March 2016. The action comes a day after the RBI said its internal advisory council had recommended 12 accounts for immediate resolution under the Insolvency and Bankruptcy Code (IBC).
After trashing FIPB, Narendra Modi government draws up time bound FDI nod plan
After setting in motion the dismantling of the Foreign Investment Promotion Board (FIPB) and assigning the work of processing FDI applications to the administrative ministries concerned, the Narendra Modi government has now put in place a time-bound system for approval of these investment proposals. With a stress on digital filings, the new regime would be "simpler in execution and expeditious in disposal", according to a note sent by the department of industrial policy and promotion (DIPP) to all ministries concerned.
India received a record $61-billion FDI (including reinvested earnings) in 2016-17, up from $55.6 billion in the previous fiscal, both highest among all countries. "After the proposals are filed online, DIPP will identify the concerned administrative ministry/department and e-transfer the proposal to the concerned administrative/ department within two days," the note said.
GST registration for biz to reopen on June 25 as 1st deadline ends tomorrow
If you have not been able to register for the Goods and Services Tax Network (GSTN) within the deadline ending tomorrow, do not panic! There's one more chance coming your way as the registration for existing excise, service tax and value-added tax (VAT) payers will reopen on June 25.
There are about 80 lakh excise, service tax and VAT assessees at present, of which 64.35 lakh have already migrated to the GSTN portal - the company that is readying the information technology backbone of the GST regime.
CAs demand GST deferral; no way, says government
As the goods and service tax (GST) July 1 rollout date comes closer, the government has reiterated that there is no question of a postponement. "The rumours about GST implementation being delayed are false. Please do not be misled by it," revenue secretary Hasmukh Adhia said here on Tuesday.
The demand for deferring the launch date from various segments is growing. The latest in the line are Mumbai-based accounting professionals, who have suggested that the launch be shifted to October 1.
Oil sinks more than 3.5 per cent on shock US gasoline stocks build
Oil prices sank more than 3 per cent to their lowest in more than five weeks on Wednesday following US data showing an unexpectedly large weekly build in US gasoline inventories and International Energy Agency (IEA)data projecting a big increase in non-OPEC output in 2018.
The increase in US gasoline inventories drove down RBOB futures RBc1 by more than 4 per cent, tugging Brent and US crude futures lower with them, analysts said.
As India ages, over 61% of elderly will have no income security by 2050
India's 860 million-strong working population (15-64 years), the world's largest, is beginning to age. Over the next 33 years, by 2050, 32.4 million Indians, or 20 per cent of the population, will be above 60 years of age.
If pension continues to cover only 35 per cent of senior citizens as it does today, 20 million, or 61.7 per cent of India's elderly population, will be without any income security by 2050.
Sources: Livemint, Economic Times, Mydigitalfc, Business Standard, Financial Express