OPINION, P8 M&M, P10 EDITORIAL UDAY data looks dodgy, govt needs to plug this gap INTERNATIONAL, P14 T NANDA KUMAR NIRAV MODI CASE DAMAGE CONTROL Farmers need dairy, horticulture, etc, to double income, only productivity not enough PNB MD says won’t need more govt funds to cover fraud losses Facebook to tell users if their data was shared with CA NEW DELHI, TUESDAY, APRIL 10, 2018 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM VOL.XLIV NO. 33, 18 PAGES, `6.00 (PATNA `6.00, RAIPUR `7.00) P U B L I S H E D F R O M : A H M E D A B A D , B E N G A L U R U , C H A N D I G A R H , C H E N N A I , H Y D E R A B A D , K O C H I , K O L K ATA , L U C K N O W, M U M B A I , N E W D E L H I , P U N E READ TO LEAD SENSEX: 33,788.54 ▲ 161.57 NIFTY: 10,379.35 ▲ 47.75 NIKKEI 225: 21,678.26 ▲ 110.74 HANG SENG: 30,229.58 ▲ 384.64 `/$: 65.03 ▼ 0.05 `/€: 79.81 ▼ 0.29 BRENT: $68.11 ▲ 1.00 GOLD: `30,526.00 ▲ `130.00 RACE FOR BINANI CEMENT IN THE NEWS Bharat Bandh today: States told to tighten security Binani Industries moves SC Axis’ Sharma to step down in Dec HC: DMRC has to pay 80% of DAMEPL debt FE BUREAU Mumbai, April 9 THE DMRC cannot shy away from paying 80% of the debt owed by Reliance Infrastructure subsidiary DAMEPL to banks, which had loaned the money to run the Airport Express line, the Delhi High Court said on Monday, reports PTI. PRIVATE-SECTOR LENDER Axis Bank on Monday said its board of directors has accepted managing director and CEO Shikha Sharma’s request to shorten her tenure to December 31, 2018. In December last year, the bank’s board had reappointed Sharma as the managing director and CEO of the bank for a period of three years from June 1,2018. “In this connection, kindly note that Shikha Sharma,managingdirector and CEO of the bank, has requested the board to reconsidertheperiodofher reappointment as the MD & CEO of the bank to be SC to govt: Want status of facilities given to Rohingya THE SUPREME Court on Monday asked the Centre to file a status report on basic amenities provided in three Rohingya camps in Delhi and Haryana, reports PTI. A bench headed by CJI Dipak Misra asked the Centre to file the status report on the three camps in Mewat, Faridabad and Delhi in four weeks. Special Features Five simple ways to save money & not feel the pinch From automated transfers to deposit accounts to availing discounts to avoiding late payments, these are easy ways to prevent unnecessary expenses and thus save a tidy sum over the years ■ Personal Finance, P13 Building transparency in digital ad buying in India The digital platform is facing various grave issues like a nontransparent media supply chain, bot traffic, ad fraud, viewability and the most recent, the Facebook data breach QuickPicks Modi calls for doubling of contribution of CPSEs to GDP CALLING UPON the central public-sector enterprises (CPSEs) to double their contribution to the gross domestic product (GDP) and be the "third major source" of revenue for the Centre after direct and indirect taxes, Prime Minister Narendra Modi on Monday gave five challenges to the firms including ways to reduce the country's imports bill and expanding India's global strategic reach by 2022, reports fe Bureau in New Delhi. PAGE 2 ` HDFC hikes lending rate by up to 0.20%, effective April 1 LARGEST MORTGAGE player HDFC on Monday upped its lending rates by up to 0.20%, in line with similar moves by commercial banks, reports PTI. The increase in the retail prime lending rate, on which it benchmarks the adjustable rate home loans, is effective from April 1, an official statement said. A company spokesperson said the rate hike is progressive, between 0.05% and 0.20%, with the lowest hike applicable to the lowticket size loan. PAGE 10 FM Jaitley home after dialysis, no transplant at the moment FINANCE MINISTER Arun Jaitley, suffering from kidney ailment, underwent dialysis on Monday and was discharged from the hospital after being kept under observation for a few hours, reports PTI. Jaitley, 65, who was admitted to AIIMS on Friday evening, did not undergo any transplant and the advice that he has received from doctors states that he may get better with dialysis and medicines, sources close to his family said. PAGE 2 revised from June 1, 2018 up to December 31, 2018. The board has accepted her said request, subject to approval of the RBI (Reserve Bank of India),” Axis Bank said in a regulatory filing. Sharma'srequesttoseek shortening of her tenure comes at a time when the RBI has reportedly asked the bank's board to reconsider its decision to extend her tenure by three years. Agencies reported citing people in the knowthat the RBI has shot off a letter to the chairman of Axis Bank, Sanjiv Misra, who is also a former expenditure secretary, with regard to the board’s decision to reappoint Sharma. Continued on Page 2 Move after signal from banks that they would consider its proposal only after needed approvals obtained INDU BHAN & MITHUN DASGUPTA New Delhi/Kolkata, April 9 BINANI INDUSTRIES (BIL) on Monday moved the Supreme Court seeking permission for an out-of-court settlement with banks to end insolvency proceedings initiated against its subsidiary Binani Cement for dues of more than `7,000 crore. The matter was mentioned before a bench led by Chief Justice Dipak Misra who said that it will be taken up for hearing on April 13. While demanding an end to the resolution process, which was initiated by the Bank of Baroda last year,BILsaid that it has entered into a business arrangement with UltraTech Cement to mobilise sufficient funds to pay of all the claims and restore the cement maker back to its full financial health. “The offeris in the public interestandtakescareof100%dues of all creditors as against the CROP SUPPORT SCHEME BINANI CEMENT'S IBC JOURNEY JULY 25, 2017: Company admitted to NCLT FEB 19, 2018: Binani Industries seeks to fully participate in resolution process MARCH 8: UltraTech submits revised bid for Binani Cement MARCH 14: CoC meets to consider resolution plans submitted for Binani Cement MARCH 15: Dalmia Bharat says CoC has approved its resolution plan MARCH 19: UltraTech inks pact to buy 98.47% from parent for `7,266 crore MARCH 19: UltraTech appeals to NCLT Kolkata for consideration of its revised plan MARCH 19: SBI Hong Kong asks NCLT Kolkata to consider principle of ‘equity’ MARCH 27: NCLT gives time for arriving at the out-of-court settlement APR 3: NCLAT directs NCLT proceed with the insolvency resolution process Dalmia to bring up fund diversion charges FE BUREAU New Delhi, April 9 inter-corporate deposits (ICDs), loans and other means torelatedparties,whichinturn WHILE THE ISSUE of whether affected the company’s workBinani Industries (BIL) can ing capital position. withdraw its subsidiary firm This siphoning of funds Binani Cement (BCL) from the through related-party transinsolvency proceedings will actions has been highlighted now be decided by the by external forensic consulSupreme Court, Dalmia tant Haribhakti & Co which Bharat,which was was appointed in declared the H1 November 2017 bidder by the for reviewing committee of some transactions total debt due creditors (CoC), by Binani Cement. to banks by has decided to up In fact, the Binani Cement theanteandhighBinani RP has light during the already filed an hearings how a application in the defaulting proKolkata bench siphoned by moter (read of the National the company’s Binani Cement) Company Law promoters, on whom there’s Tribunal (NCLT) according to the charge of siphonalleging the fraudresolution ing `2,400 crore ulent transactions professional out of the `4,041 involving the procrore of overdue moters of the debt owed to the banks can be company. allowed to do a side deal with The forensic audit covered another firm. the period July 1, 2015, to The Binani Cement resolu- November 30, 2017, and was tion professional (RP) has conductedbetweenNovember alleged that promoters of the 28, 2017, and February 17, company had diverted funds 2018. to the tune of `2,400 crore through capital advances, Continued on Page 2 `4,041 cr `2,400 cr lossofover`1,100croresought tobecausedbyRajputanaProperties (RPL), the wholly-owned subsidiary of Dalmia Cement (Bharat), by grabbing the company at a discount,” BIL said in its appeal to the top court. BIL approached the apex court on Mondayafteran indication from lenders that they would consider its proposal only after necessary permissionsareobtainedforproceeding with any settlement. Continued on Page 2 PUSH FOR JOBS ● MUMBAI AIRPORT Extra cost to Centre Xiaomi calls on component seen at ~`45,000 cr makers to invest in India FOOD FOR THOUGHT `1.11 lakh crore Annual cost of pan-India roll-out of Market Assurance Scheme, as designed by NITI Aayog `1.044 lakh crore Cost to Centre, as per GoM-approved formula, including procurement incidentals `60,000 crore Amount spent by Centre in 2017-18 agriculture marketing year as PDS procurement incidentals and for price support to pulses & oilseeds (excluding food subsidy) PRABHUDATTA MISHRA New Delhi, April 9 THE CENTRE WILL have an additionalannualoutgoofclose to `45,000 crore — over the comparable expenditure in 2017-18 — to run the procurement-based price support scheme for 23 agricultural cropsclearedbyagroupofministers (GoM) recently, while state governments among them will require to shell out some`7,000croredenovo.The Narendra Modi government is banking heavily on the pricesupport package for farmers — which is meant to ensure that farmers get 150% of their pro- duction cost as price for their produce — for its re-election in 2019.The Cabinet is set to considerthe proposals thisweek. In 2017-18 (October-September), the Centre expended close to `60,000 crore — `25,000croretomeetprocurement cost of wheat, rice and coarse cereals under the NationalFoodSecurityActanda record `35,000 crore for the pricesupportschemeforpulses and oilseeds.Compared to this, it will have to spend `1,04,360 crore to run the so-called MarketAssurance Scheme (MAS) as approvedbytheGoMlastweek. Continued on Page 2 REUTERS Mumbai, April 9 CHINA’S XIAOMI SAID it wants its global smartphone component makers to set up baseinIndia,inwhatislikelyto bringasmuchas$2.5billionof investmentwhile also creating up to 50,000 jobs. Xiaomi’s push could boost Prime Minister’s Narendra Modi’s flagship‘Make in India’ drive that is aimed at adding tens of millions of new jobs and turning Asia’s No. 3 economy into a global manufacturing hub. Xiaomi,which looks headed INDIA PLANS ■ The Chinese smartphone maker currently has six plants in India ■ If suppliers set up shop here, Xiaomi says, it would bring in $2.5 billion worth of investment and create 50,000 jobs for a big initial public offering later this year,currently has six smartphone manufacturing plants in India. It hosted more than50ofitsglobalsuppliersin New Delhi at an investment summit on Monday that was also attended by key government officials. If the suppliers at the summitweretosetupshopinIndia, atopmarketforXiaomi,itwould bring in $2.5 billion in investment and create as many as 50,000 jobs,the companysaid. The Chinese firm has unseated Korean rival Samsung Electronics to take the pole position in India’s smartphone market,theworld’s second biggest. WITH THE INDIAN Air Force (IAF) issuing the requests for information (RFI) forpurchase of 110 fighter aircraft at an estimated total cost of $15 billion, the race has intensified among three major aerospace companies — US-based Boeing,EuropeanfirmEurofighter and Russia's Mikoyan — to tie up with an Indian partner. State-run Hindustan Aeronautics (HAL) could be favouredbytheseglobalgiants for a tie-up,sources indicated. According to the RFI,of the planes, 15% have to be in fly- FIRE POWER ■ Government wants defence PSUs to forge joint ventures with foreign defence manufacturers under its ambitious strategic partnership model FE BUREAU Mumbai, April 9 away condition while the remaining 85%will have to be made in India with a strategic partner. Otherforeign majors in the fray for the multi-billion contract alreadyhave Indian partners. While the US aerospace giant Lockheed Martin has recently announced its partnership with Tatas, Swedish company SAAB has had an alliance with the Adani Group since 2017. Continued on Page 2 Continued on Page 2 Continued on Page 2 Foreign cos look to partner HAL HUMA SIDDIQUI New Delhi, April 9 Two-hour shutdown hits flights PASSENGERSTRAVELLINGTO and from Mumbai will face someinconvenience,delaysand flight cancellations as the airport, operated on a cross-runway system, announced a twoday shutdown of operations from 11 am to 5 pm beginning Mondayastherunwayintersectionundergoesscheduledrepair andmaintenance,whichforced carrierstocancelandreschedule flights operating out of the city. The space-constrained airport functions on the cross runway system with a main runway (09/27) and a secondary runway (14/32) and since the repair work is being done on the intersection, a spokesperson said no flights will operate during the shutdownperiodforTuesdayaswell. Thecountry’ssecondlargest airline JetAirways has its hub at the Mumbai airport while national carrier Air India uses Mumbai as its secondary hub and altogether,the airport handles about 970 aircraft movements including international flights on a daily basis.So,a sixhour closure has hit the operationsofairlines,forcingthemto cancel around 125 flights and reschedule otheroperations. $15-BILLION IAF TENDER MAKING ADVANCES At a quarter of all loans, retail lending hits an all-time high SHRITAMA BOSE Mumbai, April 9 RETAIL LOANS NOW account for a fourth of all loans, an alltimehigh.However,abigchunk of this or close to one-third are estimatedtobeunsecuredloans orthosewhichbankshavegiven without holding any collateral. These comprise loans for consumerdurables,creditcardoutstandingsandwhattheReserve Bank of India (RBI) categorises as“other personal loans”.Typically,retail advances otherthan housing loans, vehicle loans, loansagainstdepositsandother financialinstruments,andeducation loans are deemed unsecured. The RBI shows that at `18.54 lakh crore,outstanding loanstoindividualsconstituted over a fourth of overall bank credit, which stood at `73.74 lakh crore as on February16. Analysts attribute the rising trend in unsecured loans to the stiff competition in the home loan markets where non-banking financial companies (NBFCs) are making inroads; the portfolio of the top 10 NBFCs at the end Contribution of retail loans to overall loans (%) March fiscal year-ends 30 27 24 21 18 15 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018E 2019E 2020E 2021E 2022E THE CENTRE on Monday advised all states to beef up security and prevent violence during the Bharat Bandh called by some groups on Tuesday reportedly against caste-based reservations in jobs and education, an official said, reports PTI. of December 2017 was `56,200 crore or about 36% of all mortgages. Source: RBI, Kotak Institutional Equities estimates While home loans given by banks grew as much as 16% year-on-year, in September 2016 this decelerated to a singledigit.Whilemortgagescontinue to contribute half the value of retail loans — 51.5%, to be precise — this marks a 200-basis point fall fromwhat it was in February 2016. Meanwhile, lending to micro and small and medium enterprises has picked up in the nine months to December 2017; while outstanding micro and small loans grew at 4% year-on-year, loans to medium-sized companies grew at 2.3% year-on-year. In fact, loans to large companies too grew by a small 0.4% yearon-year. State Bank of India chairman Rajnish Kumar said recently the lender was being selective about corporate borrowers, with the emphasis more on retail lending,including SME. AtBankofBaroda,theshare of retail assets rose to 22% from 19% between December 2016 and December2017.The management said housing loans have been a key driver of growth,up 44.3% in Q3FY18, as had auto loans.
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