1. 2-Day Annual Meeting Of AIIB Begins In Mumbai.

The third Annual Meeting of the Asian Infrastructure Investment Bank -AIIB begins in Mumbai today. The two-day event will be held on the theme of Mobilizing Finance for Infrastructure will be addressed by Prime Minister Narendra Modi on Tuesday.

AIR correspondent reports, important events scheduled today include Governor’s seminar in which Finance Ministers of member countries are expected to participate. The topics to be discussed in Governor’s seminar include Mobilising Finance for infrastructure, Connectivity Within and Beyond Asia and Leveraging Finance for Asia’s infrastructure.

Later in the day, there is panel discussion scheduled on the theme Chief Ministers on vision of Infrastructure Development in India. In the evening, Minister of State for Housing and Urban Affairs Hardeep Singh Puri will be attending a brainstorming and interactive session with the corporate sector.

2. HCL Tech Acquires German IT Firm H&D.

HCL Technologies has acquired German IT and engineering services provider H&D International Group. Through this deal, HCL Tech will attain significant in-country front office and delivery capabilities, which will further enhance its domain expertise in the global automotive sector, according to a press release.

The H&D Group, one of the largest IT service providers in the German automotive industry, has extensive expertise in SAP, computer-aided technologies (CAx), engineering services and customer-specific product development. It operates in over 20 locations globally, said the release.

H&D’s existing delivery centre in Gifhorn, Germany, will become part of HCL Tech’s global delivery footprint and will focus on IT and engineering services both in Germany and globally.

“Germany is a critical market for HCL as we continue to expand our business in Europe. We feel the German market is at an inflection point and it is the right time for HCL to expand and make significant investments her,” said Ashish Gupta, Corporate Vice President at HCL Technologies.

Bernhard Hönigsberg, CEO of H&D Group, said: “By combining H&D’s delivery capabilities with those of HCL, we have an unprecedented opportunity to add tremendous value to the services we provide to support our clients’ IT transformation ambitions. Furthermore, the experience and know-how of HCL and H&D complement each other perfectly and our employees are set to benefit significantly from the new opportunities that lie ahead."

3. Exim Bank Extends $10 Mn Loan Facility To Seychelles.

The Export-Import Bank of India (Exim Bank) today said it has extended USD 10 million worth of line of credit (LOC) to Seychelles for healthcare and procurement of goods and projects. The LOC is the first tranche of the USD 50 million sanctioned by the Exim Bank to the country, a release said.

With this agreement for USD 10 million, Exim Bank, till date, has extended two LOCs to Seychelles, taking the total value to USD 28 million. Earlier this week, the bank had extended two LOCs aggregating USD 31 million to the Republic of Suriname for upgradation of transmission line network and maintenance of Chetak helicopters there. 

Exim Bank has 233 LOCs in place at present, covering 62 countries in Africa, Asia, Latin America and the CIS, with credit commitments of around USD 22.86 billion, available for financing exports from India, the release said.

4. Pakistan Placed On FATF’s ‘Grey List’.

The Financial Action Task Force (FATF) placed Pakistan on its watch list for not doing enough to counter terror financing during a meeting in Paris, officials said on Thursday.

The listing was done late on Wednesday during a plenary meeting of the global financial watchdog. Pakistan’s caretaker finance minister Shamshad Akhtar is attending the meeting with a delegation.

Pakistan was included in FATF’s “grey list” after it submitted a 26-point action plan to cut off funding for terrorists and groups sanctioned by the UN Security Council, including Mumbai attacks mastermind Hafiz Saeed, the Lashkar-e-Taiba, Jamaat-ud-Dawah, Falah-e-Insaniyat Foundation, Jaish-e-Mohammed, Haqqani Network and Taliban.

The FATF had earlier put Pakistan on its grey list between 2012 and 2015.

As the 37-member FATF began assessing Pakistan’s action plan that will be implemented over a period of 15 months beginning next January, the country’s delegation highlighted the steps taken by Islamabad to curb money laundering and terror financing.

Though some reports suggested Pakistan had tried to avert its inclusion in the grey list, sources said a decision in this regard had already been taken during the FATF’s plenary meeting in February. The FATF had only been waiting for Pakistan’s action plan before going ahead with the listing.

Following the decision at the February plenary meeting, Pakistan was asked to prepare an action plan to address the watchdog’s concerns. The plan was completed following negotiations between Pakistan and FATF members, and Islamabad will work “towards effective implementation of the action plan while staying in the grey list”, an official said.

Islamabad will have to deliver on the first goal under the action plan by next January and complete all 26 actions by September 2019.

5. BHEL Inks Pact With Korean Firm For Emission Controlling Equipment.

today said it has inked a pact with South Korean firm NANO Co Ltd for design and manufacture of emission controlling devices for coal-based power plants.

The Technology Collaboration Agreement (TCA) with NANO Co is for design and manufacture of SCR Catalysts for De-NOx application in coal-fired plants, BHEL said in a statement.

The pact will enable BHEL to enhance its offerings for emission control systems (De-NOx applications). NANO Co is a leading manufacturer of SCR Catalysts and associated raw materials and has supplied the Catalysts to various countries such as Germany, France, Italy, China and Taiwan.

6. Mumbai Based Swadhaar FinServe Acquired By RBL Bank.

Private-sector lender RBL Bank Ltd has acquired the 39.52% stake it doesn’t already own in Mumbai-based financial products distribution unit Swadhaar FinServe Pvt. Ltd.

The bank didn’t disclose the value of the all-cash deal citing confidentiality reasons.

The acquisition is in line with the bank’s policy of strengthening its market position in the inclusive finance segment, it said in a stock-exchange disclosure.

RBL Bank bought the stake from investors including Accion, a global non-profit company focussed on fintech and microfinance sectors.

Harjeet Toor, head of retail, inclusion and rural business at RBL Bank, said the bank sees Swadhaar as a vehicle catering to underserved households and small businesses.

“In the future, we will also be looking to leverage Swadhaar’s growing branch network to offer other relevant products to customers in semi-urban and rural markets,” said Toor.

RBL Bank had initially bought a 30% stake in Swadhaar in September 2016.

In November last year, it increased its stake first to 58.4% and subsequently to 60.48%.

Swadhaar works as a last-mile distributor of financial services and products, particularly loans and savings products, to low-income households and microenterprises across India. It has 331 branches across the country.

7. IRDAI Gives Nod To LIC To Buy Stake In IDBI Bank.

The Insurance Regulatory and Development Authority of India (IRDAI) has agreed to the Life Insurance Corporation (LIC) of India’s proposal to hike its stake to 51 per cent in IDBI Bank from 10.8 per cent at present. The permission is subject to the corporation bringing down its holding to 15 per cent in future.

The IRDAI board, which met in Hyderabad on Friday, cleared the proposal put forward by the LIC. It will now have to be cleared by the state-owned insurer’s board. According to sources, the corporation believes that having a bank within the group will help increase its share of business through the bancassurance route. An official said, “Private life insurers with a bank within the group generate nearly half their business through the bancassurance channel. In the case of LIC, it is less than 3 per cent.”

LIC, with assets under management of over Rs 30 lakh crore, has been priding itself as the largest financial institution in the country. The insurer had first made a pitch for a banking licence over 16 years ago when SBI got its life insurance licence. Subsequently its housing finance arm LIC HFL had put in an unsuccessful application for a bank licence. The corporation was a founding investor in Axis Bank in the ’90s and had also picked up a 28 per cent strategic stake in Corporation Bank. However, none of these investments served the desired purpose.

1. Union Government Collaborates With Google For Flood Forecasting.

The Central Water Commission (CWC), India’s apex technical organisation in the field of Water Resources, on June 18, 2018 signed a Collaboration Agreement with Google for flood forecasting. 

Union Minister for Water Resources, River Development and Ganga Rejuvenation, Nitin Gadkari has expressed that collaboration with Google will help in effective flood management in India. 

Agreement between Central Water Commission and Google

i. CWC would use up to date technology of Google in the field of Artificial Intelligence, machine learning and geo spatial mapping for effective management of water resources particularly in the field of flood forecasting.

ii. The agreement involves dissemination of flood related information to the people using the dissemination platforms developed by Google. 

iii. This agreement will help crisis management agencies to deal extreme hydrological events in a better manner.

iv. Under collaborative arrangement, Google will use high resolution Digital Elevation Model and vast computational resources and Artificial Intelligence to generate flood inundation maps utilising the input provided by CWC.

v. The information would be disseminated with a lead time of up to 3 days. 

vi. For the flood season of 2018, flood forecasting would be done on trial basis and the same would be scaled up in near future.

2. RBI Eases Norms For FPIs To Invest In Debt.

The Reserve Bank has eased investment norms for foreign portfolio investors (FPIs) in debt, especially into individual large corporates, a move that can help attract more overseas flows and thereby help arrest the recent fall in the rupee on one hand and also lift the recent fall in demand for corporate bonds.

FPIs are allowed to invest in various debt market instruments such as government bonds, treasury bills, state development loans and corporate bonds, but with certain limits and restrictions. The RBI increased the FPIs cap on investment in government securities to 30% of the outstanding stock of that security, from the 20% earlier.

FPIs were allowed to invest in government bonds with a minimum residual maturity of three years.

Government securities

“Henceforth, FPIs are permitted to invest in government securities (G-secs), including treasury bills and SDLs without any minimum residual maturity requirement, subject to the condition that short-term investments by an FPI under either category shall not exceed 20% of the total investment of that FPI in that category,” the RBI said in a notification. Short-term investments are defined as those with residual maturity of up to one year.

3. RBI Alters ‘Relative’ Definition To Check Outward Remittances.

Concerned over funds sent abroad under the ‘maintenance of close relative’ category of the Liberalised Remittance Scheme (LRS), the Reserve Bank of India (RBI) has narrowed the definition of relatives to check the flow of funds.

Hence, funds under the ‘maintenance of close relative’ category can be sent only to immediate relatives such as parents, spouses, children and their spouses. This has brought about by defining ‘relatives’ under the Companies Act, 2013 instead of the same act of 1956.

“In the context of remittances allowed under LRS for maintenance of close relatives, it has been decided to align the definition of ‘relative’ with the definition given in Companies Act, 2013 instead of Companies Act, 1956,” the central bank had said in its June policy statement.

Outward remittances under maintenance of close relatives shot up to almost $3 billion in 2017-18 from a mere $174 million in 2013-14. In fact, funds sent under this category have more than doubled since 2015-16.

4. IRDAI Sets Up Panel To Review Norms For Marketing Firms.

Regulator Irdai has set up a 10-member panel to review norms related to insurance marketing firm (IMF) with an aim to increase insurance penetration in the country. The new distribution channel of IMF was introduced in 2015 by Irdai, with the objective of increasing insurance penetration through an area–wise registration approach.

The Insurance Regulatory and Development Authority (Irdai) conducted three workshops for the IMFs last month, wherein operational feedback was received from them. In an order, the Irdai said that a review of the regulations is necessary to enable the channel to evolve and fulfil the objective of spreading insurance coverage to all stratum of the society and set up 10-member committee for the purpose.

The committee, headed by Suresh Mathur (ED-IMF, Irdai), has been asked to revisit the IRDAI (Registration of Insurance Marketing Firms) Regulations, 2015.

Among other things, the committee has also been asked to provide recommendations for issuing guidelines on the areas on which the regulations are silent.

The panel has to submit its recommendations by end-July.

5. SEBI Simplifies Buyback Regulations, Changes IPO Price Band Timeline.

The Securities and Exchange Board (SEBI) has approved amendments to buyback and takeover regulations and changed the time for announcing the price band of initial public offering (IPO) from 5 to 2 days, chairman Ajay Tyagi told reporters. SEBI had made a proposal to bring changes based on suggestions made by the regulator’s Primary Market Advisory Committee (PMAC). In a consultation paper, Sebi had proposed that entities would not be required to file draft papers for rights issue worth up to Rs 10 crore.

In a press conference on Thursday, SEBI chief also informed that enforcement action has been initiated against various entities in NSE co-location case. The watchdog has been probing the alleged lapses in high-frequency trading offered through the National Stock Exchange’s co-location facility. In the coming few days, the enforcement actions would be completed against the entities, he added.

In March, the NSE said Sebi had returned its consent application in the case due to the ongoing investigation.

The exchange’s Rs 10,000 crore IPO has been delayed because of the probe and the regulator had earlier issued show-cause notices to several individuals and the exchange while also probing the role of some brokers.

6. Russia To Supply Technical Security Equipment To India.

Russian state atomic energy corporation Rosatom on 21 June said that its subsidiary Nikiret has signed an agreement with Indian engineering services firm Core Energy Systems Pvt Ltd for the promotion of its technical security equipment in India.

Rosatom, who are the technical consultants and equipment suppliers for the Nuclear Power Corp of India-operated Kudankulam Nuclear Power Project in Tamil Nadu, said in a statement here that under the contract, Mumbai-headquartered Core will "buy technical security equipment from Nikiret and promote it in India as an integrated security solution".

"Integrated security systems are a group of technical protective means intended for organisation of alarm security subsystems, monitoring of access control subsystems, monitoring of CCTV subsystems and performance of warning functions," Nikiret Director Vadim Pervuninskikh said in a statement.

"This partnership is a major milestone towards sourcing of technology and equipment from Russia and developing security systems and solutions for the defence sector and other strategic installations like nuclear, oil and gas in India," said Core Chairman Nagesh Basarkar.

The two companies will jointly explore opportunities and provide a wide range of services including access control and security systems, data acquisition and processing and mobile security, the statement added.

According to Core Chief Executive Pranay Kumar, the partnership will explore opportunities in the Indian government`s Comprehensive Integrated Border Management System (CIBMS) project."CIBMS is a smart fencing project to identify and protect infiltration and secure the border. The systems will be indigenously developed and implemented by sourcing variety of sensors in technological collaboration with Nikiret," he said.TAGS

1. SEBI Constitutes Expert Committee To Frame Rules For Direct Listing Of Indian Firms Abroad.

Market regulator, the Securities and Exchange Board of India (Sebi), has formed an expert panel to mull norms for direct listing of Indian companies overseas. 

At present, listing of equity share capital of companies incorporated in India is not permitted on foreign exchanges and vice versa. “Considering the evolution and internationalisation of the capital markets, it would be worthwhile to consider facilitating companies incorporated in India to directly list their equity share capital abroad and vice versa,” Sebi said in a release. 

Sebi’s nine-member committee will comprise Ranu Vohra, Co-founder, MD & CEO, Avendus Capital; Cyril Shroff, Managing Partner, Cyril Amarchand Mangaldas; Kamal Yadav, Managing Director, Morgan Stanley; S Ramesh, Managing Director & CEO, Kotak Investment Banking; Neeraj Bhargava, Senior MD & CEO, Zodius Capital Advisors; Deep Kalra, Chairman & Group CEO, MakeMyTrip.com; Rajiv Gupta, Partner, Singapore, Latham & Watkings LLP and Jamil Khatri, KPMG and Sujit Prasad, Executive Director; Sebi (Convener). 

The regulator in a release also added that companies incorporated in India today can list their debt securities on international exchanges (masala bonds), but their equity share capital can be listed abroad only through the ADR/GDR route. Similarly, companies incorporated outside India can access the Indian capital markets only through the IDR route. Thus, presently, direct listing of equity share capital of companies incorporated in India is not permitted on foreign exchanges and vice versa. 

2. RBI Releases Draft Guidelines To Modify Loan System For Large Borrowers.

The Reserve Bank of India (RBI) on Monday came out with draft guidelines on loan system for delivery of bank credit to improve discipline among larger borrowers enjoying working capital facility from the banking system.

The draft stipulates a minimum level of ‘loan component’ in fund based working capital finance and a mandatory Credit Conversion Factor (CCF) for the undrawn portion of cash credit/overdraft limits availed by large borrowers, it said.

“In respect of borrowers having aggregate fund based working capital limit of Rs 150 crore and above from the banking system, a minimum level of ‘loan component’ of 40 per cent shall be effective from October 1, 2018,” said the draft guidelines as RBI proposes to modify the system for delivery of bank credit for large borrowers.

Accordingly, for such borrowers, the outstanding ‘loan component’ must be equal to at least 40 per cent of the sanctioned fund based working capital limit, including ad hoc credit facilities, it said.

“Hence, for such borrowers, drawings up to 40 per cent of the total fund based working capital limits shall only be allowed from the ‘loan component’. Drawings in excess of the minimum ‘loan component’ threshold may be allowed in the form of cash credit facility,” the RBI’s draft said.

The 40 per cent loan component will be revised to 60 per cent, with effect from April 1, 2019, it added.

3. Mobile Banking Rank By SBI’s Annual Report: Paytm Tops By Volume And Axis Bank Tops By Value.

At 17.2 per cent, Axis Bank commands the largest value share of mobile banking transactions but it’s Paytm that tops volumes with 22 per cent. However, Paytm’s value share is a meagre 0.25 per cent, according to State Bank of India’s (SBI) annual report for 2017-18 which has put out Reserve Bank of India’s data for January 2018.

ICICI Bank has a 17.1 per cent share of transactions by value and 9.7 per cent by volume. SBI’s volume share has slipped by over 5 percentage points from nearly 25 per cent at the end of March 2017 to 19.5 per cent in January 2018. The lender has also lost value share from to 16.8 per cent from a high 44.4 per cent a year ago.

Mobile-banking usage itself has seen a steep jump, with volumes soaring a steep 91 per cent to 1,871 million in FY18 from 977 million in FY17.

Rajiv Anand, executive director and head of retail banking, Axis Bank, said while the digital payments market is changing, legacy banks continue to remain important players in the system.

4. HDFC Bank’s Proposal To Raise Additional Share Capital Approved.

The Union Cabinet on Wednesday approved the proposal to grant HDFC Bank permission to raise additional capital of up to Rs 24,000 crore from foreign direct investment.

“The Union Cabinet has approved the proposal for grant of permission to M/s. HDFC Bank Ltd. to raise additional share capital of up to a maximum of Rs 24,000 crore, including premium, over and above the previous approved limit of Rs 10,000 crore, such that the composite foreign shareholding in the bank shall not exceed 74% of the enhanced paid-up equity share capital of the bank,” the government said in a release.

“The decision would ensure that the composite foreign shareholding in the bank inclusive of all types of foreign investments, both direct and indirect, will not exceed 74% of the enhanced paid-up equity share capital of the bank,” the release added. “It will be subject to foreign direct investment policy conditionalities and other sectoral regulations/guidelines.”

Capital adequacy ratio

The government added that the proposed investment is expected to strengthen the capital adequacy ratio of the bank.

In December, HDFC Bank’s board approved a capital raising plan of Rs 24,000 crore through a mix of instruments including preferential allotment to its parent HDFC. HDFC plans to infuse Rs 8,500 crore in HDFC Bank.

5. Cashless Ticketing Through `Utsonmobile` App Developed By CRIS.

Continuing towards digitalization and moving towards becoming a cashless economy, the initiative of faster and more techno-advanced transactions in Indian Railways is being taken up, the Centre for Railway Information System (CRIS) has developed a mobile based application ‘utsonmobile’. This application has the following features:

i. The ‘utsonmobile’ application enables booking and cancellation of unreserved tickets, issue and renewal of season and platform tickets, check and load R-wallet balance and helps maintain user profile management and booking history.

ii. The ‘utsonmobile’ application is very handy, free and is available for both Android and Windows smart phone. Users can download this app from Google Play Store or Windows store free of cost.

iii. First the passenger will get registered by providing his/her mobile number, name, city, default booking train type, class, ticket type, number of passenger and frequently travelling routes.

iv. Upon successful registration, Railway Wallet (R-Wallet) will be created automatically with zero balance to the passenger. There will be no extra cost for creating R-Wallet.

v. The Railway Wallet (R-Wallet) can be recharged either at any of the UTS Counter or through recharge option available in the https://www.utsonmobile.indianrail.gov.in

6. Maharashtra Government, Quebec Province Sign Pact To Increase Economic Cooperation.

The Maharashtra government and Canada`s Quebec province have signed a pact to increase the economic cooperation, specially in areas like information technology, biotechnology, artificial intelligence and welfare of the tribal community. Chief Minister Devendra Fadnavis, who is on a week-long tour to the US and Canada, signed a Memorandum of Understanding (MoU) to this effect with Quebec Premier Philippe Couillard on Wednesday.

"We also discussed ways to increase our collaboration over knowledge-sharing on ports as Maharashtra has the strength of majority of youngest population," Fadnavis said in a statement.The chief minister also met Pierre Beaudoin, chairman of the Board Corporate office of Bombardier Inc, a multinational aerospace and transportation company and the world`s leading manufacturer of aircraft and trains in Quebec.

Fadnavis said Bombardier Inc has assured support to the Maharashtra Metro and Monorail Transport Infrastructure, "that will change the shape and future of mobility." He also met Michael Sabia, the president and CEO of Caisse de dpt et placement du Qubec (CDPQ), an institutional fund manager which manages funds over 298 US billion dollars. It will help attract more Canadian pension funds investment in India, Fadnavis said.

He said CDPQ has agreed to partner with some companies in India and also shown interest in working with retail partners.Fadnavis also highlighted the Maharashtra Samruddhi corridor, logistic parks and some other projects in the state as the "perfect options for investment."

7. PhonePe Partners With Ola.

Flipkart-owned PhonePe said on Friday that it has partnered cab aggregator Ola that will allow riders to book rides using the former’s payment platform.

“With this partnership, our users can enjoy the ease of using their preferred ride sharing app from within PhonePe while being assured of the reliability and integrity of their payments,” PhonePe co-founder and CTO Rahul Chari said.

He added that PhonePe has also added ‘Auto-pay’ feature that allows users to make payments seamlessly. Chari added that users can switch off ‘Auto-pay’ instructions anytime they want.

“This is part of our vision of being an open payments ecosystem, enabling businesses of all sizes to build and deploy apps on our platform with a unified login and payments experience for our users,” he said.

This will enable businesses to reach out with their services to a highly relevant and rapidly growing base of over 100 million PhonePe users, he added. Going forward, PhonePe is rapidly adding partners in the travel, hospitality, ticketing and food segments to its micro-app platform, the official said.

8. MARG ERP Limited Partners With ICICI Bank.

Marg ERP limited, a leading Inventory and Accounting software solution company has partnered with ICICI Bank, India`s largest private sector bank by consolidated assets, to offer an integrated payments platform to Micro, Small and Medium Enterprise (MSME) customers, using MARG`s accounting software.

This integration aims to promote `Connected Banking` and enables ICICI Bank`s current account holders to securely connect their bank account with the MARG ERP software and undertake an array of digital transactions from within the ERP platform itself. It will enable businesses to initiate vendor & salary payments via RTGS, NEFT or IMPS directly from this platform, automate reconciliation of banking and accounting entries, apply for working capital loans as well as schedule future dated payments, thereby offering exemplary command over day-to-day financial transactions for businesses.

This pioneering initiative significantly enhances convenience for MSMEs as they are no longer required to toggle between a banking platform and an ERP software to undertake their business transactions. It also allows them to experience contextual banking, by connecting their banking and accounting, which was once available only for large companies and corporations with large IT and infrastructure budgets.

9. Fitch Ups India Growth Forecast To 7.4% For FY`19.

New Delhi, June 13 (PTI) Fitch Ratings today raised India`s economic growth forecast to 7.4 per cent for 2018-19 but cited higher finance costs and rising oil prices as risks.It also said that the rupee has been among the worst performers vis-a-vis Asian currencies this year.The global credit rating agency had earlier estimated the GDP growth at 7.3 per cent for the current financial year. For 2019-20, it projected the growth at 7.5 per cent.

Fitch forecast global oil price to remain around USD 70 per barrel in 2018, up from USD 54.9 a barrel last year. It said it expects oil price to cool to USD 65 a barrel next year."We have revised up our forecast for 2018-19 growth to 7.4 per cent from 7.3 per cent in March. However, higher financing costs (stemming from monetary tightening and higher market premiums) and rising oil prices should limit the upside to growth," Fitch said in its Global Economic Outlook.The Indian economy grew at 6.7 per cent in 2017-18. In the fourth quarter (January-March) the GDP grew at 7.7 per cent.

Mortgage lender HDFC Ltd is the only Indian company to be named among the top 10 consumer financial services companies in the world, with American Express claiming the first position.

With profits of $1.6 billion and sales of $8.1 billion, HDFC has been ranked seventh on the Forbes Global List 2017 in the consumer financial services sector — same as last year. The company has been featured in the coveted list for the third consecutive year.

American Express topped the list, followed by Capital One Financial and Visa in the second and third place, respectively.

The other consumer finance services companies that made it into the list include Orix at the fourth place, Synchrony Financial (5th), Discover Financial Services (6th), Mastercard (8th), PayPal (9th) and CIT group (10th).

As many as 58 Indian companies appeared in the overall Forbes Global 2000 list. The comprehensive ranking of the world’s biggest, most powerful and valuable publicly listed companies is based on a mix of four metrics: sales, profits, assets and market value. Forbes gave an equal weighting of all four metrics to rank companies according to size. PTI

10. Fitch Lowers Axis Bank`s Outlook To Negative, Cuts ICICI Bank`s Support Ratings.

Fitch Ratings on Friday revised the outlook on private sector Axis Bank to ‘negative’ from ‘stable’ and also downgraded ICICI Bank’s Support Rating, stating that both lenders “exhibit gaps in risk controls”.

It has affirmed the Long-Term Issuer Default Ratings and Viability Ratings of ICICI Bank and Axis Bank at BBB- and ‘BBB-’, respectively.

The agency has also downgraded ICICI Bank’s Support Rating to 3, from 2, and revised its Support Rating Floor to ‘BB+’, from ‘BBB-’ while maintaining the outlook as stable. Fitch, however, noted that the ongoing investigation at ICICI Bank on allegations of extending a loan with a potential conflict of interest, has brought the attention of the authorities on the lender’s governance practices.

“Adverse findings could create reputational risk, particularly if they point at broader weaknesses in management,” it said, adding that at present it expects the lender’s financial profile to hold up in the near to medium term .

The capital buffers at ICICI Bank are stable despite financial deterioration in previous years, it noted.

But, in the case of Axis Bank, which registered a 78.6 per cent fall in its net profit to a net loss of ?2,188.74 crore in the fourth quarter of 2017-18, Fitch highlighted the rising pressure on its standalone profile due to the heightened asset-quality stress and weak earnings.

“Its capital buffers are less comfortable for its current rating despite raising fresh capital,” it said.

1. Financial Literacy Week Begins.

The Reserve Bank of India has chosen customer protection as theme for the Financial Literacy Week beginning on June 4. This week long event ending on June 8 will focus on creating awareness among customers of banks about financial products and services, good financial practices and going digital, the RBI said in a statement.

The week will focus on four consumer protection messages like `know your liability` for unauthorised electronic banking transaction and Good practices for a safe digital banking experience. Among various messages, customers will be told through banners and posters that in case of unauthorised digital transaction if bank is informed within 3 days, the liability of the account holder is zero.

Resolution of complaint is to be done by the bank concerned within period not exceeding 90 days from the date of receipt of the complaint, it said. Besides, banks have been asked to also create awareness about Banking Ombudsman scheme of the RBI, it said. Bankers, Financial Literacy Counsellors (FLCs) and other stakeholders will participate to create awareness.

2. Global Economy Is Healthy But Growth Will Slow: World Bank.

The world economy is generally healthy but must contend with rising interest rates in wealthier countries and weaker demand for commodities in developing nations. It also faces risks from trade disputes, financial volatility and geopolitical tensions.

The steadily expanding global economy should remain resilient — at least for a couple of years — the World Bank says. The anti-poverty agency predicts global growth will decelerate slightly from a solid 3.1 per cent this year to 3 per cent next year and 2.9 per cent in 2020.

The world economy is generally healthy but must contend with rising interest rates in wealthier countries and weaker demand for commodities in developing nations. It also faces risks from trade disputes, financial volatility and geopolitical tensions.

The World Bank predicts that US growth will register 2.7 per cent in 2018, aided by tax cuts, before slowing to 2.5 per cent next year and 2 per cent in 2020. China`s growth is projected at 6.5 per cent this year, 6.3 per cent in 2019 and 6.2 percent in 2020.

3. Repo Rate Increased By 25 Bps In Second Bi-Monthly Monetary Policy Statement (2018-19).

Second Bi-monthly Monetary Policy Statement, 2018-19 Resolution of the Monetary Policy Committee (MPC) Reserve Bank of India. On the basis of an assessment of the current and evolving macroeconomic situation at its meeting today, the Monetary Policy Committee (MPC) decided to: Increase the policy repo rate under the liquidity adjustment facility (LAF) by 25 basis points to 6.25 per cent. Consequently, the reverse repo rate under the LAF stands adjusted to 6.0 per cent, and the marginal standing facility (MSF) rate and the Bank Rate to 6.50 per cent.

The decision of the MPC is consistent with the neutral stance of monetary policy in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4 per cent within a band of +/- 2 per cent, while supporting growth. The main considerations underlying the decision are set out in the statement below.

4. Centre Constitutes Group To Suggest Changes In SEZ Policy.

The Centre has constituted a group of eminent persons to study the Special Economic Zones, SEZ Policy of India. The group will be headed by Industrialist Baba Kalyani. 

The group will evaluate the SEZ policy, suggest measures to cater to the needs of exporters in the present economic scenario and make the SEZ policy WTO compatible. The Group has to submit its recommendation in three months.

The SEZ Policy was implemented from 1st April, 2000. Subsequently, the Special Economic Zones Act, 2005 was passed by Parliament in May, 2005 which received Presidential assent on the 23rd June, 2005 and the Special Economic Zone Act was enacted.

The SEZ Act, 2005, supported by SEZ Rules, came into effect on 10th February, 2006.

5. FDI Inflows To India Fall By $4 Billion Last Year: UN Report.

Foreign Direct Investment to India decreased to 40 billion dollars last year from 44 billion dollars in 2016 while outflows from India, the main source of investment in South Asia, more than doubled, according to a new trade report by the UN.

According to the World Investment Report 2018 by the UN Conference on Trade and Development (UNCTAD) global foreign direct investment flows fell by 23 per cent in 2017, to USD 1.43 trillion from USD 1.87 trillion in 2016. “Downward pressure on FDI and the slowdown in global value chains are a major concern for policymakers worldwide, and especially in developing countries,” UNCTAD Secretary-General Mukhisa Kituyi said.

FDI to India decreased from USD 44 billion in 2016 to USD 40 billion in 2017. But outflows from India, the main source of FDI in South Asia, more than doubled to USD 11 billion, the report said.

1. Indian Economy Grows 7.7% In 4th Quarter: Central Statistics Data.

Robust performance by manufacturing, construction and service sectors and good farm output pushed the India`s January-March 2018 GDP growth to a seven-quarter high of 7.7 per cent, helping it retain the fastest growing major economy tag, government data showed today.

India`s economic expansion at 7.7 per cent was significantly higher than China`s 6.8 per cent in the January-March period. However on yearly basis, the Indian economy grew at a four-year low of 6.7 per cent in 2017-18, down from 7.1 per cent in the previous fiscal. The previous low was recorded in 2013-14 at 6.4 per cent.

"GDP at 2011-12 prices in the fourth quarter of 2017-18 registered growth rate of 7.7 per cent as against 5.6 per cent, 6.3 per cent and 7 per cent, respectively, in the first three quarters of 2017-18. Rapid growth in agriculture (4.5 per cent), manufacturing (9.1 per cent) and construction (11.5 per cent) contributed to the overall growth," the Central Statistics Office (CSO) said in its national accounts data released today.

The previous high GDP growth of 8.1 per cent was recorded in the April-June quarter of 2016-17. The GDP growth was 6.1 per cent in January-March 2016-17. Commenting on data, Finance Secretary Hasmukh Adhia said, "The constant increasing trend of quarterly GDP numbers in the four quarters of 2017-18 at 5.6 per cent, 6.3 per cent, 7 per cent and 7.7 per cent indicates that the structural measures of reforms undertaken by government is now bringing rich dividends in the form of higher GDP growth rate."