RBI repo rate reduction to 5.15% in line with market expectations, says Rao
NEW DELHI: An Indian credit ratings company cut Patanjali Ayurved Ltd. by two levels, citing a likely weakening of its financial position as it partly funds a merger with a maker of soya products.
Care Ratings Ltd. downgraded Patanjali’s long-term bank facilities to A- from A+, according to a statement on Friday. Care and Brickwork Ratings cut the company’s outlook to negative from stable.
Patanjali Consortium Adhigrahan Pvt. — a venture by Patanjali Ayurved and three other companies controlled by yoga guru Baba Ramdev -- is taking over Ruchi Soya Industries Ltd. for 43.5 billion rupees ($614 million). Care said the revision in the ratings takes into account the “expected weakening of its financial risk profile on account of large outflow of funds from Patanjali Ayurved to Patanjali Consortium Adhigrahan.”
India’s company court approved a bid by Patanjali Consortium last month to take over Ruchi Soya. SINGAPORE: Doors remain open in India for further policy easing in December and likelihood of more into 2020, possibility of which was flagged recently, according to Singapore-based DBS Bank. Besides the repo rate cuts, more is required to ensure efficient policy transmission in India, such as surplus liquidity conditions, market-driven lending rates and a stable financial system to allow all sectors to benefit from lower borrowing costs, the bank said. NEW DELHI: The reduction of the Repo rate by 25 bps to 5.15 per cent by RBI is widely in
line with market expectations, said Punjab National Bank MD and CEO Mallikarjuna Rao .
Further, RBI has continued with an accommodative stance, suggesting possibility of further rate cuts, if required. This rate cut will perfectly complement the fiscal measures announced by the government to help strengthen private consumption and spur investment activity going forward.
Overall liquidity has remained surplus in August and September 2019. In the backdrop of current macroeconomic setting of lower growth and range bound inflation, there may be a case for surplus
liquidity to not only uplift the PNB MD, CEO Mallikarjuna Rao
sentiment but also for effective rate transmission. The expected GDP growth rate has been justifiably revised downward to 6.1 per cent for 2019-20, given the hitherto weak domestic demand conditions.
However going ahead, the easing of rates combined with the fiscal measures announced by the Government recently are expected to revive demand, thereby giving a fillip to the economic growth. CHENNAI: It’s a Diwali bonanza for public sector bank (PSB) employees. Their accounts are being credited with part wage arrears even before the final agreement on the wage revision between the unions and the management. It’s happening for the first time in the India’s banking history. “The employees can opt out or take the part arrear payments. If they take the part arrear, the amount credited will not be less than Rs 50,000 and may even exceed Rs 1,00,000,” a PSB employee said.
According to him, the move will swell the government’s tax revenue kitty and spur the economy in a small way as bankers will spend the money. PSB employees are waiting for wage revision since November 2017. Despite 30 rounds of talks between the United Forum for Bank Unions (UFBU) and the Indian Banks’ Association (IBA) since 2017, wage agreement is not yet in sight.
“It’s interesting to see the speed at which the management is working towards payment of part wage arrears, while the wage revision talks are moving at a snail’s pace,” he said.
On October 1, the IBA had written to heads of PSBS and private banks, which are part of the bipartite settlement, to pay ad hoc amount equivalent to a month’s salary (basic pay + dearness allowance) and adjust it during final payments after the wage settlement agreement. In January 2016, the government had asked PSBS Chief Executives to initiate the wage revision talks and conclude them by November 1, 2017.
Overburden removal at Ananta opencast project (OCP) was affected on Thursday night after a man of Burdabanpur village unauthorisedly entered the mine premises and damaged equipment to stop dewatering operations from the sump to the external mine area, a company official said.
The same person was also involved in stone-pelting on vehicles at the mine on Friday morning and kidnapping of two employees of MCL.
The project officer of Ananta OCP lodged a complaint with the police in this regard and safe release of the abducted employees could be secured on Friday afternoon, MCL Spokesperson said.
The mining operations the Ananta OCP were normalised at 2:45 PM after the sub-collector and the SDPO, Talcher, intervened.
Besides affecting the OB Removal to the tune of 5000 cubic metre, stoppage of dewatering operations affected coal production at Ananta OCP.