OPINION, P6 ECONOMY, P2 INTERNATIONAL, P8 EDITORIAL TACKLING COVID CONSUMER CONCERNS India took very decisive steps to deal with pandemic: IMF chief Amazon makes it too hard to cancel Prime, US FTC told Allow CSR spend to be used for funding vaccine roll-out It is critical to have independent surveys of major schemes if policies are to be data-driven CHENNAI/KOCHI, SATURDAY, JANUARY 16, 2021 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOLUME XLII NO. 216, 18 PAGES, `10.00 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: 49,034.67 ▼ 549.49 NIFTY: 14,433.70 ▼ 161.90 NIKKEI 225: 28,519.18 ▼ 179.08 HANG SENG: 28,573.86 ▲ 77.00 `/$: 73.07 ▼ 0.02 `/€: 88.72 ▲ 0.14 BRENT: $55.57 ▼ $0.85 GOLD FUTURE: `49,095 ▼ `126 IN THE NEWS Digit Insurance becomes first unicorn of 2021 DIGIT INSURANCE ON Friday said that it became India’s first unicorn in 2021 after existing investors, including A91 Partners, Faering Capital and TVS Capital infused `135 crore into the company at valuation of $1.9 billion, reports fe Bureau in New Delhi. In January last year, it had raised about $84 million from a clutch of investors at a valuation of over $800 million. Non-food credit growth at 8-month high GROWTH IN NON-FOOD credit rose to an eight-month high of 6.53% y-o-y during the fortnight ended January 1 from 6.03% in the previous fortnight, reports fe Bureau in Mumbai. The last time non-food credit grew faster was during the fortnight ended April 24, 2020. Forex reserves rise $758 m to lifetime high INDIA'S FOREIGN EXCHANGE reserves rose $758 million to hit a record high of $586.082 billion in the week ended January 8, the RBI data showed on Friday, reports PTI. In the previous week ended January 1, the reserves had increased by $4.483 billion to $585.324 billion. Goyal exhorts Indian investors to eye BIMSTEC COMMERCE AND INDUSTRY minister Piyush Goyal on Friday called upon Indian investors to mentor and support start-ups within the BIMSTEC region, reports fe Bureau in New Delhi. ROAD TO RECOVERY Imports rise for first time in 10 months Reflect nascent revival of demand 20 0 7.6 (% change, y-o-y) Exports 0.1 -20 FE BUREAU New Delhi, January 15 MERCHANDISE EXPORTS INCHED up in December,for a second time since February 2020,while imports advanced forthe first time in 10 months, suggesting a gradual return towards normalcy. Thequickestimatereleased by the commerce ministry on Fridayshowsexportsrose0.1% on year to $27.15 billion in December, better than a 0.8% contraction announced earlier. Imports rose at a much faster pace of 7.6% in December to $42.59 billion, inflating trade deficit to a 25-month high of 15.44 billion. The rise in imports reflects a nascent revivalofdomesticdemandfol- Imports -40 -60 -80 Dec 2020 Source: Ministry of commerce lowing the Covd-induced compression since March last year, as businesses go through a “reset”phase,takingadvantage oftheliftingoflockdowncurbs. Continued on Page 2 Little headway in farmers-govt talk THE NINTH ROUND of talks between agitating farmers andthegovernment,thefirst after the Supreme Court order appointing a fourmember committee to resolve the impasse, also remained inconclusive on Bond yields post biggest Biden seeks $1.9 trn weekly rise in 4 months for economic relief Hurt by absence of special OMO announcement for next week 10-year bond yield (%) 6.00 5.95 5.95 5.898 `/$ Friday, reports fe Bureau in NewDelhi.The government maintained that a solution could indeed emerge from the mechanisms of talks with the farmers and the deliberations of the SCappointed panel. ■ Page 2 SWATI BHAT Mumbai, January 15 INDIA’S BENCHMARK BOND yieldsawitsbiggestweeklyrise in four months following the Reserve Bank of India’s decision to restore normal liquidityoperations,whileabsenceof a special open market operation announcement for next week also hurt. The Reserve Bank of India lastweeksaiditwouldconduct a variable-rate reverse repo auction for `2 lakh crore on January15 aftera reviewof the evolvingliquidityandfinancial conditions. Markets read the releaseasanindicationthatthe RBIwaslookingtorollbackthe massive cash surplus in the banking system, despite its reiteration that it will ensure availabilityof ample liquidity. “The market is confused about what the RBI is trying to do.Alot of times it feels like the RBI doesn’t realise the fallout of its actions and then tries to balance it out,” said a senior debt trader at a private bank. Intra-day, January 15 (Inverted scale) 72.95 73.00 5.90 73.10 5.80 73.15 5.75 73.20 73.07 73.05 5.85 -59.7 -60.98 Apr 2020 RESCUE PACKAGE NO OMO Oct 15, 2000 Jan 15, 2021 ■ RBI had last week said it would conduct a variablerate reverse repo auction for `2 lakh crore on January 15 ■ Markets read it as an indication that RBI was looking to roll back massive cash surplus in the banking system 73.09 Previous close 73.05 Open Close Rupee slips 3 paise to settle at 73.07 against dollar PRESS TRUST OF INDIA Mumbai, January 15 The benchmark 10-year bond yield ended at 5.99% versus 5.93% on Thursday, its firstweeklyrisein three and its biggest since the week ended September 11. THE RUPEE SNAPPED its three-session winning streak and settled for the day 3 paise lower at 73.07 (provisional) againsttheAmerican currency on Friday, tracking weaker Asian peers and heavy selloffs in domestic equities. At the interbank forex market,the rupee opened at 73.07 and hit an intra-day high of 72.99 and a low of 73.15. It finallyfinished at 73.07,lower by 3 paise over its last close. OnThursday,the rupee had settled at 73.04 against the American currency. Continued on Page 2 Continued on Page 2 ■ Traders said absence of a special OMO announcement for next week also hurt demand for bonds Swift Republican opposition likely over big-ticket spending NANCY COOK, JENNY LEONARD & MARIO PARKER January 15 PRESIDENT-ELECT JOE BIDEN will ask Congress for $1.9 trillion to fund immediate relief for the pandemicwracked US economy, a package that risks swift Republican opposition over big-ticket spendingonDemocraticpriorities,including aid to state and local governments. “We have to act andwe have toactnow,”BidensaidThursday nightinWilmington,Delaware. He said he would lay out a second,broadereconomicrecovery plan next month at a joint session of Congress next month. That initiative will include CHEQUE IT OUT $400 bn for Covid-19 management Direct payments to individuals boosted to $2,000 for mostAmericans ■ $400 perweek in supplementary unemployment benefits through September ■ $350 bn for state and local governments ■ Raising the minimumwage to $15 an hour ■ $130 bn to help schools reopen ■ $160 bn for vaccination, testing, other Covid containment efforts moneyforlonger-termdevelopment goals such as infrastructure and climate change, the transitionteam said. Continued on Page 2 US Fed's Powell says 'not the time' to discuss any change to bond purchases WITH THE US economy still far from its inflation and employment goals it is too early for the Federal Reserve to discuss changingitsmonthlybondpurchases,Fed chair Jerome Powell said,reports Reuters. “Now is not the time to be talking about exit,”from the $120-billion in government securities the Fedisbuyingeachmonth, Powellsaid. ■ Page 8 ● FUNDRAISING OneWeb gets more capital from SoftBank, Hughes PRESS TRUST OF INDIA New Delhi, January 15 BHARTI GLOBAL AND the UK government-led OneWeb on Fridaysaid it has secured additional funding from SoftBank Group and Hughes Network Systems,taking the total fund- ing for the broadband satellite communications company to $1.4 billion (over `10,200 crore). With the investment, SoftBank will get a seat on OneWeb Board. The capital raised so far strongly positions OneWeb to be fully funded for its first- generation satellite fleet, totalling 648 satellites, by the end of 2022,it said. OneWeb did not provide individual break-up of investmentsmadebySoftBankGroup andHughes Network Systems. Continued on Page 2 Statutory Body under The Government of India Core-5A, 3rd - 5th Floor, India Habitat Centre, Lodhi Road, New Delhi - 110003 Limited Review of Financial Results for the half year ended 31st December, 2020 Particulars 1. 1. Interest Earned (a)+(b)+(c)+(d) (a) Interest on advances (b) Income on Investments (c) Interest on bank deposits (d) Others 2. Other Income 3. Total Income (1+2) 4. Interest Expended 5. Operating Expense (i)+(ii) (i) Payments to and provisions for employees (ii) Other operating Expense (a)+(b)+(c) (a) Brokerage, Guarantee Fee and Other Finance Charges (b) Stamp duty on Borrowings (c) Other expenditures 6. (Gain)/ Loss on account of exchange fluctuations 7. Total Expenditure excluding Provisions and Contingencies (4+5+6) 8. Operating Profit before Provisions and Contingencies (3-7) 9. Provisions other than Tax and Contingencies 10. Exceptional Items 11. Profit (+) / Loss (-) from Ordinary Activities before Tax (8-9-10) 12. Tax Expense 13. Net Profit (+)/Loss (-) from Ordinary Activities after Tax (11-12) 14. Extraordinary items (net of tax expense) 15. Net Profit (+)/Loss (-) for the period (13-14) 16. Paid-up capital (wholly owned by Government of India) 17. Reserves excluding Revaluation Reserves (as per balance sheet of previous accounting year) 18. Analytical Ratios: (I) Capital Adequacy Ratio (ii) Earning Per Share (EPS) 19. NPA Ratios a) Amount of Gross NPA b) Amount of Net NPA c) % of Gross NPA d) % of Net NPA half year ended 31/12/2020 Unaudited 2,59,647.42 2,44,153.06 7,629.54 7,864.82 2,363.32 2,62,010.74 1,84,068.19 3,481.99 1,409.98 2,072.01 186.85 5.02 1,880.14 4,390.74 1,91,940.92 70,069.82 60,364.78 9,705.03 18,100.00 (8,394.97) (8,394.97) 1,45,000.00 (` in Lakhs) Corresponding Previous accounting half year ended year ended 31/12/2019 30/6/2020 Unaudited Audited 2,57,818.18 4,98,482.09 2,42,197.12 4,64,562.47 9,635.69 17,420.42 5,985.37 16,499.20 2,549.87 4,043.95 2,60,368.06 5,02,526.03 1,72,744.54 3,42,229.61 3,248.15 7,660.78 993.95 2,923.69 2,254.20 4,737.09 198.84 389.04 115.01 365.03 1,940.35 3,983.02 (56.38) (819.51) 1,75,936.31 3,49,070.88 84,431.75 1,53,455.15 27,926.93 1,08,287.81 56,504.82 45,167.34 9,000.00 25,600.00 47,504.82 19,567.34 47,504.82 19,567.34 1,45,000.00 1,45,000.00 7,67,936.64 7,48,092.97 7,67,936.64 12.56% NA 18.67% NA 12.74% NA 2,50,284.59 3.18% 0.00% 2,50,284.59 1,87,398.59 3.83% 2.89% 2,50,284.59 62,466.22 2.99% 0.76% Notes: 1. The above results have been reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on January 15, 2021 at New Delhi. 2. Pursuant to the Judgement of the Hon’ble Supreme Court setting aside the decree passed by the Hon’ble Special Court in Suit No. 2 of 1995 and the directions given by Department of Financial Services (DFS), Government of India, NHB had paid an amount of 236.78 crores to SBI. In July, 2016, SBI has filed an application before the Hon’ble Special Court claiming interest @19% on 236.78 crores. NHB has denied the above claim of SBI and prayed for dismissal of the application. Further, as per the directions of DFS, NHB has to receive an amount of 353.78 crore from SBI for which NHB has filed a counter-claim. 3. The Limited Review results for the half-year ended December 31, 2020 have been arrived at, after considering provisions for Non-Performing Assets and Standard Assets on the basis of prudential norms issued by RBI, Income Tax, Deferred tax and other usual and necessary provisions including employee benefits made at the year-end. 4. In terms of the Reserve Bank of India’s circular dated August 04, 2016, Bank is continuously preparing proforma Ind AS statements and is submitting to the regulator regularly. The Reserve Bank of India vide its letter dated May 15, 2019, has advised that implementation of Indian Accounting Standards by All India Financial Institutions (AIFIs) has been deferred until further notice. 5. During the FY ended June 2020, the Bank had classified Dewan Housing Finance Corporation Ltd. (DHFL) & PMC Bank as sub-standard assets on 18-10-2019 & 31-12-2019 respectively. On August 21, 2020, DHFL was classifed as Fraud by the Bank and provision of 75% was provided against DHFL and PMC Bank as on June 30, 2020. In the current half-year, the balance 25% provision of ` 625 crore has been provided towards the said two accounts. As on December 31, 2020, Bank is maintaining 100% provision towards all NPA accounts and NIL Net NPA. 6. Previous period figures have been regrouped / rearranged wherever necessary. Sd/S.K. Hota Place : New Delhi Managing Director Date : January 15, 2021 As per our review report of even date Sd/(CA Siddharth Bansal) For Bansal & Co. LLP Partner Chartered Accountants Membership No. 518004 Firm Reg. No. 001113N/N500079 CHENNAI/KOCHI