Daily Archives: July 2, 2018

Wimbledon 2018: Serena beats Rus to enter second round

Serena Williams swapped the skin-tight catsuit that caused a stir at the French Open for a more conservative look as she marked her return to Wimbledon for the first time since becoming a mother with a 7-5 6-3 first-round win over Arantxa Rus.

FIBA to discipline brawling Australia, Philippines players

Basketball’s world governing body FIBA will open disciplinary proceedings against Australia and the Philippines after their World Cup 2019 Asian qualifier descended into chaos on Monday with 13 players ejected for brawling during the match.

AMC, steering panels to be set up for faster resolution of NPAs: Piyush Goyal

NEW DELHI: Independent asset management companies (AMCs) and steering committees will be set up for faster resolution of bad loans in the banking system, finance minister Piyush Goyal said as the government accepted five-pronged plan of the Sunil Mehta-panel.

The panel under the chairmanship of PNB non-executive chairman Sunil Mehta has recommended an asset management company/alternative investment fund (AIF)-led resolution approach to deal with NPA cases of more than Rs 500 crore, Goyal told reporters here.

There are about 200 accounts, each of which owes more than Rs 500 crore to banks. Their total exposure is about Rs 3 .1 lakh crore.

Giving details, Goyal said under this approach, independent asset management companies would be set up. AIF would raise funds from institutional investors.

The AMC, to be set up under AIF framework, will become a market maker and will thereby ensure healthy competition, fair price and cash recovery, the minister said.

“The government will not intervene in the resolution process which would be entirely led by banks,” Goyal said, adding that most of the banks have already expressed their interest in the recommendations.

The committee has also suggested an asset trading platform for both performing and non-performing assets.

The finance minister also said the committee did not recommend setting up a ‘bad bank’ to deal with the mounting NPAs in state-own banks.

The panel has also suggested a plan for dealing with bad loans up to Rs 50 crore.

Under the SME Resolution Approach (SRA), loans up to Rs 50 crore would be dealt using a template approach supported by a steering committee.

The panel has recommended that the resolution should be non-discretionary and completed in a time bound manner within 90 days.

The Mehta committee has proposed a Bank Led Resolution Approach (BLRA) for loans between Rs 50 and Rs 500 crore. This segment has an exposure of over Rs 3 lakh crore.

Under the BLRA approach, financial institutions will enter into an inter-creditor agreement to authorise the lead bank to implement a resolution plan in 180 days.

The lead bank would then prepare a resolution plan including empanelling turnaround specialitsts, and other industry experts for operational turnaround of the asset.

In case the lead bank is unable to complete the resolution process within 180 days, the asset would go to NCLT.

Goyal said the recommendations of the committee are compliant with extant regulations and aim operational turnaround to retain value of assets created for national benefit.

The finance minister further said the recommendations also aim to prevent job losses from foreclosures and create additional employment by reviving businesses.

The suggestions, he added, also ensure a robust governance and credit architecture is put in place to prevent similar build up of NPAs in the future.

The gross non performing assets (NPAs) of PSBs stood at Rs 7.77 lakh crore at end-December 2017. Total NPAs of all banks, including private ones, were a whopping Rs 8.99 lakh crore.

Last month, Goyal had announced formation of the committee under Mehta and the SBI chairman and Bank of Baroda managing director PS Jayakumar as members.

AMC, steering panels to be set up for faster resolution of NPAs: Piyush Goyal

NEW DELHI: Independent asset management companies (AMCs) and steering committees will be set up for faster resolution of bad loans in the banking system, finance minister Piyush Goyal said as the government accepted five-pronged plan of the Sunil Mehta-panel.

The panel under the chairmanship of PNB non-executive chairman Sunil Mehta has recommended an asset management company/alternative investment fund (AIF)-led resolution approach to deal with NPA cases of more than Rs 500 crore, Goyal told reporters here.

There are about 200 accounts, each of which owes more than Rs 500 crore to banks. Their total exposure is about Rs 3 .1 lakh crore.

Giving details, Goyal said under this approach, independent asset management companies would be set up. AIF would raise funds from institutional investors.

The AMC, to be set up under AIF framework, will become a market maker and will thereby ensure healthy competition, fair price and cash recovery, the minister said.

“The government will not intervene in the resolution process which would be entirely led by banks,” Goyal said, adding that most of the banks have already expressed their interest in the recommendations.

The committee has also suggested an asset trading platform for both performing and non-performing assets.

The finance minister also said the committee did not recommend setting up a ‘bad bank’ to deal with the mounting NPAs in state-own banks.

The panel has also suggested a plan for dealing with bad loans up to Rs 50 crore.

Under the SME Resolution Approach (SRA), loans up to Rs 50 crore would be dealt using a template approach supported by a steering committee.

The panel has recommended that the resolution should be non-discretionary and completed in a time bound manner within 90 days.

The Mehta committee has proposed a Bank Led Resolution Approach (BLRA) for loans between Rs 50 and Rs 500 crore. This segment has an exposure of over Rs 3 lakh crore.

Under the BLRA approach, financial institutions will enter into an inter-creditor agreement to authorise the lead bank to implement a resolution plan in 180 days.

The lead bank would then prepare a resolution plan including empanelling turnaround specialitsts, and other industry experts for operational turnaround of the asset.

In case the lead bank is unable to complete the resolution process within 180 days, the asset would go to NCLT.

Goyal said the recommendations of the committee are compliant with extant regulations and aim operational turnaround to retain value of assets created for national benefit.

The finance minister further said the recommendations also aim to prevent job losses from foreclosures and create additional employment by reviving businesses.

The suggestions, he added, also ensure a robust governance and credit architecture is put in place to prevent similar build up of NPAs in the future.

The gross non performing assets (NPAs) of PSBs stood at Rs 7.77 lakh crore at end-December 2017. Total NPAs of all banks, including private ones, were a whopping Rs 8.99 lakh crore.

Last month, Goyal had announced formation of the committee under Mehta and the SBI chairman and Bank of Baroda managing director PS Jayakumar as members.

Goyal expects fiscal deficit to be below budgeted level of 3.3% in FY19

NEW DELHI: Finance minister Piyush Goyal has said India will be able to restrict the fiscal deficit below the budgeted level of 3.3 per cent of GDP in 2018-19, which has hit 55 per cent of the annual target in the first two months of the financial year.

He said the revenues from Goods and Services Tax (GST) in the current fiscal is expected to exceed Rs 13 lakh crore as the full benefits of electronic way of e-way bill starts flowing in.

“There is a perception that fiscal deficit will not be met, but I feel, that we will actually do better than our budgeted fiscal deficit,” Goyal told reporters here.

The government has budgeted to contain fiscal deficit at 3.3 per cent of GDP in current financial year which began in April, lower than 3.53 per cent in 2017-18 fiscal.

Fiscal deficit, which is the difference between revenue and expenditure, stood at Rs 3.45 lakh crore during the April-May period, or 55.3 per cent of the budgeted target for the fiscal year 2018-19.

In the April-May period of 2017-18, fiscal deficit was 68.3 per cent of the budget estimate.

“By the time the year ends, GST revenues would cross Rs 13 lakh crore. We have not yet got the full benefits of e-way bill. So I feel there will be more improvement in revenues and some relief in taxes can be given,” Goyal said.

In the first year of GST in 2017-18, the government earned Rs 7.41 lakh crore from the tax since its rollout in July. The average monthly collection was Rs 89,885 crore.

In the current fiscal, the collections in April touched a record Rs 1.03 lakh crore, followed by Rs 94,016 crore in May and Rs 95,610 crore in June.

India has 'Plan D' for Iran oil as Trump adds sanction pressure

NEW DELHI: One of Iran’s biggest oil buyers said it has enough alternative sources of crude to replace any supplies cut off by US sanctions on the Persian Gulf state — even if shipments stop completely.

Indian Oil Corp. Chairman Sanjiv Singh says Saudi Arabia alone can cover most of the world’s supply shortfall in case Iran’s oil exports dry up. Also a narrowing spread between Brent crude and Dubai oil gives Indian Oil even more options, the head of the state-run refiner known as IOC, one of Iran’s largest customers, said in an interview.

“We have a very wide crude basket. There’s nothing we can’t procure, there’s nothing we can’t process,” Singh said. “So, even if Iran supplies get disrupted, the supplies to the Indian market will still continue. That’s assured.”

Some customers in Asia are already considering acquiescing to US President Donald Trump’s demand to end trade with Iran by early November, when sanctions aimed at curbing the Islamic republic’s nuclear program come into effect. Several refiners in the largest oil market are looking at alternative supplies from Saudi Arabia to Iraq after the White House said it won’t offer extensions or waivers to US allies.

Ramping Purchases

IOC plans to buy 7 million tons of crude from Iran in the year ending March 31 versus 4 million tons in the previous fiscal year, AK Sharma, director of finance at the refiner, said in May. India imported 771,000 barrels of crude oil a day from Iran in May, a 35 per cent increase from the previous month, tanker tracking and shipping data compiled by Bloomberg show.

“We buy high sulfur crude from Iran. Today if you look at the price difference between Brent and Dubai, the difference is hardly anything,” he said. “So, the option is wide open and there’s no need that we replace high sulfur with high sulfur.”

The global oil benchmark Brent traded at a premium of $3.58 a barrel to Dubai crude on Monday, down from an almost four-year high of $4.64 a barrel in April, according to data from broker PVM Oil Associates. That allows IOC the option to look at sourcing crude from regions other than the Middle East.

IOC added 16 new grades of crude during 2017-18 and has the ability to process 175 different varieties, boosting flexibility in oil sourcing. It also expanded the capabilities of its refineries to process cheaper and heavier grades, which make up close to 60 per cent of its crude diet.

Fully Prepared

“We have Plan B, Plan C, Plan D. We are fully prepared,” IOC’s Singh said, without giving details.

India’s government has so far been sending mixed signals about its stance on Iranian imports. While the country said it plans to seek exemptions from the sanctions and is also looking at alternate payment mechanisms to enable it to continue purchases from the Persian Gulf state, the government has also asked refiners to brace for all eventualities, including zero imports.

India insists it will make sure its energy security is not compromised and a call on Iran oil imports will be guided by its own interests. India continued with purchases from Iran during the last round of sanctions.

“The situation is changing everyday,” Singh said. “We have to wait and watch how things unfold with time. We can manage and we will manage.”

India has 'Plan D' for Iran oil as Trump adds sanction pressure

NEW DELHI: One of Iran’s biggest oil buyers said it has enough alternative sources of crude to replace any supplies cut off by US sanctions on the Persian Gulf state — even if shipments stop completely.

Indian Oil Corp. Chairman Sanjiv Singh says Saudi Arabia alone can cover most of the world’s supply shortfall in case Iran’s oil exports dry up. Also a narrowing spread between Brent crude and Dubai oil gives Indian Oil even more options, the head of the state-run refiner known as IOC, one of Iran’s largest customers, said in an interview.

“We have a very wide crude basket. There’s nothing we can’t procure, there’s nothing we can’t process,” Singh said. “So, even if Iran supplies get disrupted, the supplies to the Indian market will still continue. That’s assured.”

Some customers in Asia are already considering acquiescing to US President Donald Trump’s demand to end trade with Iran by early November, when sanctions aimed at curbing the Islamic republic’s nuclear program come into effect. Several refiners in the largest oil market are looking at alternative supplies from Saudi Arabia to Iraq after the White House said it won’t offer extensions or waivers to US allies.

Ramping Purchases

IOC plans to buy 7 million tons of crude from Iran in the year ending March 31 versus 4 million tons in the previous fiscal year, AK Sharma, director of finance at the refiner, said in May. India imported 771,000 barrels of crude oil a day from Iran in May, a 35 per cent increase from the previous month, tanker tracking and shipping data compiled by Bloomberg show.

“We buy high sulfur crude from Iran. Today if you look at the price difference between Brent and Dubai, the difference is hardly anything,” he said. “So, the option is wide open and there’s no need that we replace high sulfur with high sulfur.”

The global oil benchmark Brent traded at a premium of $3.58 a barrel to Dubai crude on Monday, down from an almost four-year high of $4.64 a barrel in April, according to data from broker PVM Oil Associates. That allows IOC the option to look at sourcing crude from regions other than the Middle East.

IOC added 16 new grades of crude during 2017-18 and has the ability to process 175 different varieties, boosting flexibility in oil sourcing. It also expanded the capabilities of its refineries to process cheaper and heavier grades, which make up close to 60 per cent of its crude diet.

Fully Prepared

“We have Plan B, Plan C, Plan D. We are fully prepared,” IOC’s Singh said, without giving details.

India’s government has so far been sending mixed signals about its stance on Iranian imports. While the country said it plans to seek exemptions from the sanctions and is also looking at alternate payment mechanisms to enable it to continue purchases from the Persian Gulf state, the government has also asked refiners to brace for all eventualities, including zero imports.

India insists it will make sure its energy security is not compromised and a call on Iran oil imports will be guided by its own interests. India continued with purchases from Iran during the last round of sanctions.

“The situation is changing everyday,” Singh said. “We have to wait and watch how things unfold with time. We can manage and we will manage.”

Shrikant Wagh says 10-wicket haul has given his career much needed fillip

Left-arm medium pacer Shrikant Wagh, who starred in English league cricket by taking all 10 wickets, says his rare feat has provided a much needed fillip to his career.

Third seed Marin Cilic makes solid Wimbledon start

Last year’s runner-up Marin Cilic made a solid start to the Wimbledon championships with a clinical 6-1, 6-4, 6-4 victory over Japan’s Yoshihito Nishioka on Monday.

Third seed Marin Cilic makes solid Wimbledon start

Last year’s runner-up Marin Cilic made a solid start to the Wimbledon championships with a clinical 6-1, 6-4, 6-4 victory over Japan’s Yoshihito Nishioka on Monday.