QBiz: LPG Cylinder Price Hiked; RBI May Raise Repo Rates on 5 Oct

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1. LPG Cylinder Price Hiked by Rs 59, Subsidised Gas to Cost Rs 2.89

The price of non-subsidised LPG in Delhi will increase by Rs 59 per cylinder from 1 October. The Indian Oil Corporation has attributed the hike in LPG to the change in international price and foreign exchange fluctuations.

Subsidised cooking gas price has also been hiked by Rs 2.89 per cylinder to Rs 502.4 per cylinder. The actual impact on subsidised domestic LPG customers is only Rs 2.89 per cylinder, which is mainly due to GST on the above, IOC said.

The subsidy transfer in customers’ bank account has been increased to Rs 376.60 per cylinder in October 2018 as against Rs 320.49 per cylinder in September 2018.

(Source: The Indian Express)

2. RBI May Raise Repo Rates by 25bps on 5 Oct

Inflationary concerns due to costlier oil imports and a weakening rupee could prompt the Reserve Bank of India to raise the repo rate by 25 basis points (bps) in the upcoming monetary policy review, which is scheduled to be announced on 5 October.

A widening current account deficit, which again negatively impacts the rupee, will also weigh on the members of the monetary policy committee (MPC) when they vote on the policy rate. Market experts feel that if the rate is hiked — for the third consecutive instance — it could lead to the central bank changing its ‘neutral’ policy stance.

This rate, which currently stands at 6.50 percent, has been upped twice in the previous two policy reviews, by 25 bps on each occasion.

(Source: Business Line)

3. IL&FS to Raise Rs 15,000 Crore, Hike Borrowing Limit to Rs 35,000 Crore

Infrastructure Leasing & Financial Services Ltd (IL&FS), whose recent debt defaults sparked concern about contagion in the financial markets, secured a lifeline after shareholders approved its plans to raise money through debt and equity.

Stockholders green-lit IL&FS’s plans to raise as much as Rs 15,000 crore through a non-convertible debt issue, hike the firm’s borrowing limit by 40 percent to Rs 35,000 crore and increase its share capital to enable a rights offering, the company said in a filing.

IL&FS on Saturday appointed Alvarez & Marsal to devise a restructuring plan that will be implemented upon approval by the board and stakeholders.

(Source: Livemint)

4. Bandhan Bank May Look at Acquisitions to Meet Promoter Shareholding Norms

Bandhan Bank Ltd said its promoters will look at various options, including acquisitions, to bring down shareholding in line with the Reserve Bank of India’s norms after the central bank placed restrictions on its operations.

The lender’s management, in an analyst call, cited a SEBI-mandated lock-in on secondary sale of promoter shares for one year after an initial public offering as one reason for its inability to bring down promoter holding below 40 percent.

The microlender-turned-universal bank, which started operations in 2014, had to meet that requirement within three years of starting business. As a result, the RBI stopped it from opening new branches unless it seeks the regulator’s approval each time and froze the remuneration to Managing Director and Chief Executive Officer Chandra Shekhar Ghosh.

(Source: BloombergQuint)

5. Power Tariff Soars to a Decade High of Rs 17.61/Unit in Spot Market

Power tariff on 30 September touched a decade high of Rs 17.61 per unit in the spot market due to low hydro and wind energy production and coal shortage at thermal plants.

“Spot power price for supply touched almost 10-year high of Rs 17.61 per unit in spot trading on Indian Energy Exchange (IEX). The average spot power price was also high at Rs 7.64 per unit at IEX ,” a source said.

The power price have seen an upward trend in the day ahead market (DAM) at IEX since last 23 September when it touched to a high of Rs 14.09 per unit. The prices soared further to hit a nine-year high of Rs 16.49 per unit in the day ahead market on 28 September.

According to the IEX data, the previous high was recorded at Rs 17 per unit in August 2009.

(Source: PTI)

6. Max Life MD Rajesh Sud Resigns

Max Life Insurance Friday said its Managing Director Rajesh Sud has resigned from the company and CFO Prashant Tripathy will replace him from January.

After 18 years of building Max Life Insurance and completion of his second five-year term as executive vice-chairman and managing director of the company, Sud hands over the reins to Tripathy, a company statement said.

(Source: Livemint)

7. SBI Halves ATM Cash Withdrawal Limit to Rs 20k/Day

The country’s largest lender, State Bank of India (SBI), has lowered the ATM cash withdrawal limit to Rs 20,000 a day, from Rs 40,000. The lower limit will be effective from 31 October.

“In view of the increase in the number of complaints received by banks around fraudulent transactions at ATMs and to encourage digital and cashless transactions, it has been decided to decrease the cash withdrawal limits of debit cards issued or being issued on ‘Classic’ and ‘Maestro’ platforms,” said a bank communiqué to offices.

Skimmers, as reported in multiple cases in the past decade, steal the PIN for debit cards from unsuspecting customers using hidden cameras and electronic devices.

The Classic cards constitute a sizeable chunk of SBI’s card portfolio.

(Source: The Economic Times)

8. Google CEO Will Testify Before US House on Bias Accusations

Google CEO Sundar Pichai met Republican lawmakers on 28 September and agreed to testify before the House Judiciary Committee in November to allay concerns over privacy issues and the tech giant's entry into the Chinese market.

According to a report in USA Today, Pichai confirmed to testify in November during a private meeting with GOP lawmakers on Capitol Hill.

"Pichai has agreed to testify before the House Judiciary Committee in November to address concerns over the Internet giant's business practices," said the report.

(Source: Livemint)

9. FPI Outflow Hits Four Month High of Rs 21,000 Cr in Sept

Foreign portfolio investment investors pulled out a massive Rs 21,000 crore ($3 billion) from the capital markets in September, making it the steepest outflow in four months, on widening current account deficit amid global trade tensions.

The latest withdrawal comes following a net infusion of close to Rs 5,200 crore in the capital markets (both equity and debt) last month and Rs 2,300 crore in July.

Prior to that, overseas investors had pulled out over Rs 61,000 crore during April-June.

(Source: Hindustan Times)