OPINION, P8 ECONOMY, P2 INTERNATIONAL, P14 SAFE HAVEN? GROWTH MODE Nirav Modi fled to UK claiming political asylum, says report HSBC CEO Flint outlines plan to spend $17 billion EDITORIAL Why push for a bad bank when NCLT working fine? Lateral entries into the bureaucracy will inject much-needed domain expertise NEW DELHI, TUESDAY, JUNE 12, 2018 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL.XLIV NO. 87, 20 PAGES, `6.00 (PATNA `6.00, RAIPUR `7.00) P U B L I S H E D F R O M : A H M E D A B A D , B E N G A L U R U , C H A N D I G A R H , C H E N N A I , H Y D E R A B A D , K O C H I , K O L K ATA , L U C K N O W, M U M B A I , N E W D E L H I , P U N E SENSEX: 35,483.47 ▲ 39.80 NIFTY: 10,786.95 ▲ 19.30 NIKKEI 225: 22,804.04 ▲ 109.54 HANG SENG: 31,063.70 ▲ 105.49 `/$: 67.43 ▲ 0.09 `/€: 79.46 ▼ 0.18 BRENT: $75.64 ▼ $0.82 GOLD: `30,781.00 ▼ `246.00 MAY NUMBERS STRESSED PROJECTS Govt mulls larger, Auto sales rise but little sizzle multi-sector plan 24,405 MW Capacity with no assured coal supply 14,030 MW Plants without PPAs tied up 21,672 MW ■ Stressed plants’ outstanding due to banks: `1.8 lakh cr ■ NPAs in power sector: `70,000 cr ■ Total loans to power sector: `5.2 lakh cr convening a meeting to find a resolution.Evenasthemeeting will be aimed at addressing power sector issues, it could potential help find a common Continued on Page 2 } 16,94,323 PVs 7.89 ducers raise prices, which resulted in sales staying somewhat muted. At 2.28 million 76,478 53,457 3,01,238 2,51,764 (% change) CVs 19.94 2W 14.8 units,thewholesaledispatches made by manufacturers to theirdealerships in Maymight ● MOBILE BANKING Paytm tops volumes, Axis value SHRITAMA BOSE Mumbai, June 11 Mobile banking AT 17.2%, AXIS BANK commands the largest value share of mobile banking transactions but it’s Paytm that tops volumes with 22%. However, Paytm’s value share is a meagre 0.25%, according to State Bank of India’s (SBI) annual report for 2017-18 which has put out Reserve Bank of India’s data for Market share (%) Value of transactions No. of transactions SBI ICICI Paytm Axis January 2018. ICICI Bank has a 17.1% share of transactions byvalue and 9.7% by volume. SBI’s volume share has slipped by over5 percentage points from nearly 25% at the end of March 2017 to 19.5% in January2018.The lenderhas also lost value share from to 16.8% from a high 44.4% a year ago. translate into strong retail sales,dealers observed. Thebigsurprise,asNomura Research pointed out, was the fairly robust near 20% yearon-year growth in passenger vehicles in May; the brokerage had forecast a more modest 14% rise. The growth was driven by the spectacular performance from market leader Maruti Suzuki, which posted 24% year-on-year increase in May with models such as the Swift, Baleno and Brezza turning out to be popular. Ex-Maruti, the increasewasamoresober15% year-on-year. Continued on Page 2 BRANDWAGON Automated spaces: Of homes that run themselves Continued on Page 2 •SPEED•PRECISION•POWER•RANGE India’s fuel demand rises 3.8% in May INDIA’S FUEL DEMAND rose by 3.8% in May as frequent price increases dented auto fuel consumption, reports PTI. Fuel consumption in May totalled 18.71 million tonnes compared with 18.1 million tonnes in the same month last year, data from the Petroleum Planning and Analysis Cell (PPAC) of the oil ministry showed. The rise was lower than the 4.4% increase witnessed in April 2018. During May, petrol sales were up a meagre 2% at 2.45 million tonnes while diesel consumption was flat at 7.54 million tonnes. 9.19 17.20 12.76 Of which already commissioned FY18 2W 43.06 21.87 40,000 MW 19.65 0.25 THE GOVERNMENT HAS moved into the fast lane in resolvingthevexedissueoflarge stressedassetsinthepowersector.Seizing the the opportunity presented by a recent order by theAllahabadHighCourtwhich gave temporary impunity to a clutch of power projects from theReserveBankofIndia’s(RBI) February12circularmandating earlydetectionandresolutionof stressedassetsbybanks,interim finance minister Piyush Goyal andpowerministerRKSinghon Monday confabulated on the immediate course of action in this regard. While the central bank hasn’tyetindicatedanyrelaxation of its circular,the finance ministry, sources said, would soon writetoitandotherstakeholders,includingpowerproducers, CVs 17.10 Stressed assets in the power sector FE BUREAU New Delhi, June 11 May ’17 May ’18 % change PVs 9.73 FORMER PRIME MINISTER Atal Bihari Vajpayee, who has been ailing for long, was on Monday admitted to AIIMS for routine check-up and investigations, the BJP said in a statement, reports PTI. The 93-year-old leader will be under the supervision of AIIMS director Randeep Guleria, it said, adding that he has been admitted on doctors’ advice. The BJP stalwart ruled India as prime minister between 1998 and 2004. As his health deteriorated, he slowly withdrew from public life and has been confined to his residence for many years. BALANCE OF POWER resolutionplanaswellforother sensitive sectors, including steel and textiles,that are reeling under massive bad loans, the sources added. “The secretary-financial services will be convening a meeting of officials (from RBI, banks, other relevant ministries) soon,” Goyal later told a TV channel, adding that the idea was to ascertain if a solution could be found without undermining the IBC (insolvency and bankruptcy code) process. Monday’s inter-ministerial meeting, also attended by finance secretary Hasmukh Adhia and power secretaryAK Bhalla, was to ensure that the stakeholders in the government had a common view on how to comply with the HC order, the minister added. Giving relief to the petitioner power projects which are facing the threat of being pushed into insolvency proceedings, the court had orderedthatnoactionbetaken intheircasesundertheRBIcircular till the finance ministry called a meeting of relevant stakeholders in June to see if the issues could be resolved. AUTOMOBILE SALES IN the home market were up a reasonable good 12.1% year-on-year in May but some of this must be attributed to the favourable base and some keyplayers outperforming peers. The Q1FY18 period, it may be recalled, was the pre-goods and services tax (GST) roll-out quarterand had seen some destocking by manufacturers ahead of the imposition of the new indirect tax levy. Moreover, the transition to BS-IV fuel norms — across all categories of vehicles — saw pro- 16.84 IN THE NEWS Vajpayee in AIIMS for routine check-up Goyal, Singh meet in the backdrop of HC order on power assets, to convene session of RBI, banks, etc, soon Domestic sales 18,50,093 FE BUREAU New Delhi, June 11 19.50 RUSSIA BrahMos JOINT VENTURE OF DRDO, INDIA & NPOM, RUSSIA An Icon of Friendship Between India & Russia Lending more than an ear BRAHMOS SUPERSONIC CRUISE MISSILE Railways minister Piyush Goyal with IT minister Ravi Shankar Prasad during an event in the capital on Monday World Leader in Cruise Missile Family ● STELLAR PERFORMANCE QuickPicks No privatisation of rlys’core ops DMart owner goes past RAILWAY MINISTER Piyush Goyal on Monday said the Indian Railways will offer ‘blocks’ for maintenance in a scheduled manner so that repairs are undertaken without affecting train schedules, reports fe Bureau in New Delhi. He also ruled out privatisation of the railways’ core activities and said "neither is there any such proposal, nor the government has any such plan". PAGE 4 RBI lists credit delivery norms THE RESERVE Bank of India (RBI) on Monday, in ‘draft guidelines on loan system for delivery of bank credit’, said borrowers with a total working capital limit of `150 crore or more should have at least 40% of it as working capital loans from October 1, reports fe Bureau in Mumbai. For such borrowers, limits will be allowed from the loan component. PAGE 10 `1-L-cr mark in m-cap FE BUREAU Mumbai, June 11 Avenue Supermart Intra-day on BSE (`) AVENUE SUPERMARTS, WHICH runs the retail chain DMart, on Monday crossed `1 lakhcroreinmarketcapitalisation in intra-day trade. The stock, which listed on the exchangeslessthan15months ago, hit a record high of `1,619.95,whichtookitsmarketvalue to `1.01 lakh crore.It ended the session at `1,593.80,withamarketcapi- MULTIPLE PLATFORMS MULTIPLE MISSIONS MULTIPLE TARGETS 1,620 1,610 1,593.8 1,600 1,590 1,580 1,600.05 Open Close talisation of `99,466.59 crore. Continued on Page 2 RELIANCE JIO EFFECT Airtel,Vodafone dial up the competition FE BUREAU New Delhi, June 11 28 days Cost Data IN AN ATTEMPT to cope with Reliance Jio’s onslaught, market leader Bharti Airtel has refreshedits`149prepaidplan last week to offer 2 GB of 3G/4G data per day, twice the amount it offered earlier. The pack,whichoffersdataat`2.66 per GB, also offers free voice calls and 100 SMSes per day, Plan: `149 2 GB/day `2.66 per GB `558 `299 `569 28 days 28 days 82 days 28 days 84 days GB/day `3.55 per GB GB/day `3.55 per GB GB/day `2.27 per GB GB/day `3.56 per GB GB/day `2.26 per GB 1.5 1.5 increasinglythe industrystandard after Jio came in. In comparison, Jio’s `149 3 3 3 plan, also valid for 28 days, offers1.5GBof4Gdataperday or `3.55 per GB. Vodafone India too has a `149 prepaid plan offering the same benefits as Jio. Bharti has also launched a `558 prepaid plan in various circlesoffering3GBperdayfor 82 days or data at `2.27 per GB. On the other hand, Vodafone India has a `511 pack that offers 2 GB daily data for 84 days,or `3.04 per GB. Continued on Page 2 BRAHMOS AEROSPACE 16, Cariappa Marg, Kirby Place, Delhi Cantt.,New Delhi-110010, www.brahmos.com
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