OPINION, P8 COMMODITIES, P12 NICOLAS KRISTOF Trump made big concessions to Kim but got little in return INTERNATIONAL, P14 EDITORIAL COUNTERING OPEC MEDIA MEGA MERGER NCLT Mumbai’s wrong to rule that defaulters can bid, it must be challenged India discusses forming 'Oil Buyers Club' with China Stephenson-led AT&T’s $85-bn takeover of Time Warner gets court nod LUCKNOW, THURSDAY, JUNE 14, 2018 VOL XI NO. 245, 20 PAGES, `6.00 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD P U B L I S H E D F R O M : A H M E D A B A D , B E N G A L U R U , C H A N D I G A R H , C H E N N A I , H Y D E R A B A D , K O C H I , K O L K ATA , L U C K N O W, M U M B A I , N E W D E L H I , P U N E SENSEX: 35,739.16 ▲ 46.64 NIFTY: 10,856.70 ▲ 13.85 NIKKEI 225: 22,966.38 ▲ 88.03 HANG SENG: 30,725.15 ▼ 377.91 `/$: 67.64 ▼ 0.15 `/€: 79.52 ▼ 0.01 BRENT: $75.82 ▼ $0.06 GOLD: `30,385.00 ▼ `473.00 US okays sale of Apache copters, missiles to India THE TRUMP administration has approved a deal to sell six AH-64E Apache attack helicopters to India for $930 million as well as Hellfire and Stinger missiles to bolster the country's ability to defend its homeland and deter "regional threats", the Pentagon said on Wednesday, reports PTI. The Pentagon's notification to the Congress comes ahead of the first 2+2 dialogue between India and the US next month. ● BOP BULLETIN Premiums move up after Centre’s nudge Q4 CAD at 1.9%, strong capital flows a relief Several states that had developed cold feet in paying their shares of premiums in time are now contributing FE BUREAU New Delhi, June 13 THE PRADHAN MANTRI Fasal Bima Yojana (PMFBY) may have faltered aftera promising start,butinsurancecompanies seem to renewtheirinterest in the NDA government’s flagship crop insurance scheme. Thanks to constant prodding by the Centre, several state governments that had developed cold feet in paying their sharesofpremiumsintimeare now contributing. If the trend is sustained,claims-to-payout ratio under PMFBY could improve, leading to its wider coverage and remunerative margins for the insurers. In Kharif 2017,23 states — for which date is available — paid a premium of `4,148 crore, more than threefourths of their share. The gross premium collected for (` crore) Claims reported 3,107 4,500 3,000 2,890 6,000 5,827 7,500 Claims paid 2,410 PRABHUDATTA MISHRA New Delhi, June 13 TAKING COVER 6,876 THE CABINET Committee on Economic Affairs (CCEA) has allowed HDFC Bank to raise up to `24,000 crore in foreign direct investment (FDI) without breaching the 74% FDI limit set for privatesector banks,interim finance minister Piyush Goyal said on Wednesday,reports fe Bureau in New Delhi. The FDI level in HDFC Bank currently stands at 72.62%. Analysts said if the entire amount is raised,the bank’s capital adequacy ratio could rise by 250-300 basis points from 14.8% as of March 2018. PMFBY 7,010 IN THE NEWS Govt clears HDFC Bank’s proposal to raise `24k cr in FDI 1,500 0 Kharif 2016 Rabi 2016-17 the season was a little over `19,000 crore — farmers pay only a fifth of the premium, while the Centre and states foot the balance bill.As for the latest rabi season (17-18), while the states’ premium share is estimated at `1,607 crore,states have already contributed `579 crore. Maharashtra (`1,070 crore),Karnataka (`614 crore), Odisha (`278 crore), Uttar Pradesh (`240 crore),Haryana (`109 crore) and Chhattisgarh (`93 crore) have paid close to 100% of their share of premium in Kharif 2017.Madhya Pradesh (`694 crore) and Rajasthan (`364 crore) too Kharif 2017 have paid a substantial part of their premiums. Among the laggardswereAndhra Pradesh, Telangana and Bihar, which have contributed zilch. The ratio of claims made to the payout was close to 100% in Kharif 2016 and above 93% in Rabi 2016-17 as well. The ratio has subsequently slipped toverylowlevels primarilydue tothestates’reluctance/inability to pay, but an uptick has been seen lately.About 42% if the claimed made bythe farmerswere paid bythe insurers in Kharif 2017,according to data reviewed byFE. Continued on Page 2 A LARGE MERCHANDISE trade deficit of $41.6 billion — thanks to sharper increase in imports than exports — pushedIndia’scurrentaccount deficit (CAD) to $13 billion or 1.9% of GDP in Q4FY18, compared with a benign 0.4% of GDP in the year-ago quarter. The Q4 deficit was, however, slightly lower than the previous quarter’s $13.7 billion (2.1%); for FY18 as a whole, the CAD increased considerably to 1.9% from 0.6% in FY17. Citing the risk of rising oil prices,GoldmanSachsrecently upped India’s CAD forecast for FY19 to 2.4% from 2.1%. Continued on Page 2 CAD 2.5 2.0 1.5 1.0 0.5 0.0 (% of GDP) 1.9 1.4 Q3 Q4 Q1 Q2 Q3 Q4 FY17 FY18 CAD came in at 1.9% in FY18 as compared to 0.6% in FY17 ALLEGED LAPSES MCA probing NuPower, 5 others in ICICI Bank case PRESS TRUST OF INDIA New Delhi, June 13 THE MINISTRY OF corporate affairs has started inspection of NuPower Renewables and five other companies linked to the ICICIBankcontroversy,minister of state for corporate affairs PP ChaudharysaidonWednesday. Multipleagenciesareprobing theallegedlapsesinvolvingICICI Bank’s MD and CEO Chanda Kochhar and her family members.The lender is also carrying out an independent probe into allegationsof‘conflictofinterest’ and‘quid pro quo’in Kochhar’s ALLEGATIONS ■ Involvement of Chanda Kochhar and her family members in a loan provided to Videocon Group on quid pro quo basis ■ Videocon pumped money into NuPower Renewables, firm owned by Deepak Kochhar, the ICICI CEO’s husband dealingwithcertainborrowers. Chaudharysaidtheministry ordered inspection under Sec- tion 206(5) of the Companies Act,2013,onApril23,2018,with respect to six companies linked totheICICIBankcontroversy. The inspection is with regard to “six companies, includingthecompanynamely NuPower Renewables and the matter is under progress”, he told PTI in an interview. The minister also said the regional director (western region) under the ministry is carrying out the inspection. Continued on Page 2 Fitch downgrades viability ratings of SBI, BoB, P10 QuickPicks Govt now open to listing debt-laden Air India THE GOVERNMENT is open to listing ailing state carrier Air India, a source said on Wednesday, after failing to attract buyers for a 76% stake in the company, reports Reuters. While the government is considering several proposals related to reviving the divestment process, it will not allow complete foreign ownership of the airline, the source said, declining to be named before a final decision is reached. One of the proposals could involve the government retaining a share in the debt-laden carrier and selling it at a later date. PAGE 6 While subscriptions have been there, the yields on the shorter end are higher than our expectations. We are watching the situation and might need to reduce the two-to-five year slightly and take it to the longer side. — SUBHASH GARG ECONOMIC AFFAIRS SECRETARY Details on P10
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