Plan and Policy

Plan & Policy

Feb gold imports may rise by 85%

Gold jewellers are replenishing their stocks after bu­dget and this will push the quantum of imports up by 85 per cent in February over the same month last year. In February 2016, the country had imported 27 tonnes of gold and this time it’s expected to be 50-60 tonnes.
“This time the budget was at the beginning of February unlike at the end of the month. Usually the imports dip during the weeks preceding the budget on expectation of relaxation in the import duties. This time, however, due to demonetisation, there were hardly any sales in December.

EPFO makes withdrawals easy, chucks employer attestation

EPFO subscribers can now withdraw money from their PF account using one common form and they will not be required to file documents like marriage invitation cards for taking advances.
Besides, the Employees' Provident Fund Organisation (EPFO) has also done away with the practice of filing utlisation certificates for advances taken from their PF accounts and can submit self-utlisation certificate.

Rising pile

Fear continues to stalk the corner offices and board rooms of prominent PSU banks already encumbered with rising gross non-performing assets (NPAs). The arrests of former chairman of IDBI Bank Yogesh Agarwal and other top officials--including former deputy managing director OV Bundellu, former executive director SKV Srinivasan and former general manager RS — Sridhar late last month have created a fear psychosis in top echelons of bank management.

Best time for home loans as rates at 6-yr low

If you are planning to avail of a home loan, it is the best time now to go for it as lending rates for housing loans are at their lowest in six years. With the Reserve Bank of India (RBI) signalling the end of the monetary easing cycle, the scope for further fall in interest rates is unlikely. Top bankers have already ruled out the scope for further cut in lending rates.

Plateauing stressed assets …but credit costs to hit profitability

India Ratings and Research (Ind-Ra) has maintained a stable rating and sector outlook on private sector banks and large public sector banks (PSBs) while it has retained the negative sector outlook for small & mid-sized PSBs for FY18. Large PSBs with better access to capital and private sector banks with their robust capitalisation are expected to navigate another year of low growth and high credit costs with a stable outlook.

Bad loans dip as bank stocks rise

The recent guidelines from the central bank allowing statutory reserve and other reserves created out of the profit to be reckoned for paying of Additional Tier 1 (AT1) bonds coupon – these are a combination of debt and equity – have provided a breather to banks and boosted their share prices. In addition, the banks’ results for the December quarter revealed that bad loans growth is slowing.

Disrupted quarter, Bank performance divided

Private Banks (PVB) reported a 9 per cent YoY decline in net profit due as the muted earnings performance of Axis Bank weighed-in. Public Sector Banks (PSB) like SBI, BOB and PNB, reported combined profit of Rs 3,070 crore in 3QFY17, as compared to a loss of Rs 2,170 crore in 3QFY16 and a profit of Rs 3,640 crore in 2QFY17. The impact of demonetisation led to a moderation in net interest income (NII) and fee income growth. Core revenue performance was feeble, especially for PSBs but even for PVBs.

Big banks avoid hiring spree despite boom in trading

Market trading is booming at US and European banks, thanks to Donald Trump and Brexit, and yet the glory days of dealing rooms the size of football pitches remain as distant as ever. Scarred by the 2007-09 global financial crisis and a subsequent regulatory clampdown, cost-conscious banks aren't taking on more traders, uncertain whether the revival will last.

Gestamp eyes 20% growth with new Pune plant

Gestamp, a Spanish multinational that designs metal components for the passenger car industry, is eyeing 20 per cent annual growth in India for its hot stamping-based components. The company, which has set up a brand new Rs 260-crore hot stamping factory in Pune, has already got orders to take care of two-thirds of its capacity, though commercial production would begin only in May.
The new facility at Talegaon industrial belt in Pune is the company's third in the country, where it has invested a total of Rs 1,100 crore since it entered India in 2008.

SBI General targets Rs 7K cr premium in 5 years

SBI General Insurance expects its gross written premium (GWP) to grow to Rs 7,000 crore in next five years. The company has identified crop insurance, retail health, SME and home as high-growth areas.