1. New Lending Rate Regime From April 1: BS
In a bid to force lenders to effectively pass on policy rate cuts, the Reserve Bank of India (RBI) on Thursday said from April 1, 2016, banks must review their lending rates frequently, and reflect changes in their cost of borrowing.
But customers taking loans at any given point cannot reset the terms before a specified period agreed upon at the time of the contract, usually a quarter or a year.
The new lending rates, named Marginal Cost of Funds-based Lending Rate (MCLR), will be computed based on banks’ marginal cost of borrowing, or incremental cost of funds, rather than the average cost of funds that banks have used so far.
Read more here.
2. Markets Could Rise 2 Percent More From Thursday’s Closing: ET
Stock indices could rise another 2 percent from Thursday’s closing if position build-up in Nifty options is anything to go by. The Fed action of hiking the short-term interest rate and ‘dovish’ commentary, as widely anticipated by the Street, saw bulls mounting bets over the past two sessions. Derivatives experts, however, warned that any rise would be shortlived in the absence of major triggers back home.
Bulls have raised positions on Nifty options which bet the market could test 8,000 by December-end. The Nifty gained 93.45 points (1.21 percent) to close at 7844.35 on Thursday. Bears who built huge positions that the index could slump to 7,500 over the same period squared these off at a substantial loss on Thursday.
Read more here.
3. MoD Clears Rs 30,000-Cr Defence Acquisitions From Russia: BS
On Thursday, the defence ministry’s apex procurement body, the Defence Acquisition Council (DAC), chaired by Defence Minister Manohar Parrikar, cleared the purchase of the S-400 mobile surface to air missile system (M-SAM), Russia’s latest and most vaunted air defence system.
With Prime Minister Narendra Modi due to travel to Moscow shortly for an annual summit meeting with President Vladimir Putin, this purchase is likely to be pursued on a fast track. Parrikar discussed it with the Russians on his visit to the country last month.
Read more here.
4. US Visas: On Top of $1 bn Hit, IT Firms’ Costs Up 4-Fold: FE
The US Congress has decided to go ahead and double the fees on H-1B and L-1 visas used by Indian IT professionals – the move is likely to cost the industry over $400 million per annum, up from around $100 million right now.
And while the original visa fees, brought into effect for a period of 5 years in 2009, was supposed to be for financing fencing of the US border, the current fee is to be used for the healthcare needs of the 9/11 victims as well as for a biometric tracking system over a 10-year period – no doubt, these are worthy causes, but it is the equivalent of asking US firms to pay a special charge to fund the costs of Swacchh Bharat, a programme quite dear to the present government.
The quadrupling of US visa costs is rubbing salt over injury since, in addition, the Indian IT industry pays $1 billion per year in the form of social security payments for Indian employees who, because they do not stay on in the US, do not reap its benefits – over a period of 15-20 years, this adds up to around $10 billion.
Read The Financial Express editorial here.
5. Maruti Suzuki, Dealers May Invest Rs 30k Crore to Sell 3-Million Cars a Year: FE
Country’s largest carmaker Maruti Suzuki India (MSI) and its dealers could invest up to Rs 30,000 crore to double its infrastructure, including establishing new dealerships, as it aims to sell 3 million cars annually.
While Maruti Suzuki did not set a timeline for selling 3 million cars annually, it has stated that it is looking at selling 2 million cars a year by 2020.
I see Maruti investing money in R&D, in building and all the required infrastructure for selling larger and larger volume of cars because if we are to sell 3 million cars we have to double this entire infrastructure.RC Bhargava, Chairman, Maruti Suzuki
Read more here.
6. India Kicks Off Talks With OPEC; Seeks Reasonable Oil Pricing: ET
Staring at an increasing energy demand complicated by new shifts and turns in global oil politics, the government has launched a concerted diplomatic effort at cornering more reserves and creating additional avenues for supplies.
The first major step has been with the Organisation of the Petroleum Exporting Countries (OPEC), a body with which India’s engagement had been on the periphery.
Read more here.
7. Govt to Relax Compliance Norms For Payments to NRIs: ET
The Revenue Department on Thursday said reporting and certification requirements in case of payments made to non-residents will be relaxed from April 1, 2016.
The Finance Ministry said amendment in the Income Tax Rules have been made to “strike a balance between reducing the burden of compliance and collection of information” in case of payments made by domestic entities to non-residents.
Read more here.
8. Cash Flow of High-Debt Firms Turns Positive After 10 Years: BS
The bad news of corporate India’s debt-equity ratio breaching a new high in 2014-15 comes with a silver lining. For the first time in a decade, India’s top indebted companies reported a positive cash flow in 2014-15, which raises hopes of a decline in corporate indebtedness down the line.
In the last financial year, the total cash flow from operations for the country’s top 560 listed, indebted firms exceeded their capital expenditure and investment for the first time since 2004-05.
Read more here.
9. Maggi Battle: Centre to Fight SC Stay Order: BS
Even as the fate of the country’s first class action suit appears uncertain after the Supreme Court’s intervention on Wednesday, Prabhsahay Kaur, the lawyer representing the central government in the consumer court, says it will not give up without a fight.
The SC has, for the time being, accepted Nestle India’s plea to stay proceedings in this suit at the National Consumer Disputes Redressal Commission.
Read more here.
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