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XLVII NO. 76, 14 PAGES, `10.00 (PATNA `10.00, RAIPUR `9.00) 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: 51,422.88 ▲ 307.66 NIFTY: 15,435.65 ▲ 97.80 NIKKEI 225: 29,149.41 ▲ 600.40 HANG SENG: 29,124.41 ▲ 11.21 `/$: 72.44 ▲ 0.15 `/€: 88.29 ▲ 0.21 BRENT: $69.80 ▲ $0.34 GOLD: `48,541 ▼ `149 Special Feature FE BUREAU New Delhi, May 28 1,00,000 NA ■ Special GSTCouncil sitting to FOR THE SECOND year in a row, the central government will borrow under a special, relatively low-cost mechanism to bridge a yawning shortfall in the GST compensation cess pool and transfer the funds to states as back-toback loans, sans any consequent fiscal cost to states. While this decision was taken at the Goods and Ser- ■ Amnesty scheme recommended ■ Not right time to correct the ■ IGSTexemptions on certain discuss possibility of extending compensation cess beyond July 2022 for reducing the late fee payable by small tax payers inverted duty structure in sectors such as footwear and textiles vices Tax Council meeting on Frida,it left the question of tax cuts/exemptionsonCovidvaccines and assorted otheritems formanagementof the disease to a Group of State finance Covid related items extended tillAugust 31 ministers. The group will submit its report by June 8. While the amount borrowed under the RBI-enabled mechanism last yearwas `1.1 lakh crore — there was still a shortfall, up to `70,000 crore by one estimate — the idea is to borrow some `1.58 lakh crore in FY22. Continued on Page 2 Forex reserves hit lifetime high of $592.894 bn on gold, currency assets boost THE COUNTRY’S FOREIGN exchange reserves rose by $2.865 billion to a record high of $592.894 billion for the week ended May 21, boosted by gold and currencyassets,RBI data showed on Friday, reports PTI. The previous alltime high for the forex kitty was $590.185 billion for the week ended January 29,2021. Forthe previousweek ended May14, the reserves had increased by $563 million to reach $590.028 billion. Foreigncurrencyassets(FCA),amajor component of the overall reserves, Payroll picture swelled by $1.649 billion to $548.519 billion for the reporting week, the Reserve Bank of India said. After remaining unchanged in the previous week, gold reserves rose by $1.187 billion to $36.841 billion, the central bank said. ■ Page 6 FE BUREAU 11.6 37.5 39.0 1.5 32.2 -6.9 0.8 10.6 23.3 12.7 41.2 17.9 73.8 112.5 94.7 -17.8 94.5 -0.2 *FY20 over FY19; **FY21 over FY20; ^Establishments remitting first ECR 20 7.7 12.2 10.5 -1.6 9.3 -1.2 0.8 10.6 23.3 12.7 41.2 17.9 CHIEFMINISTERARVINDKejriwal on Friday said Delhi has somehow gained control over the second wave and the state government will now start the process of lifting the lockdown gradually,startingwithresumption of construction activities and reopening of factories for oneweek from Monday. This doesn’t mean the fight against the deadly disease has ended,he stressed. —ARVIND KEJRIWAL, DELHI CHIEF MINISTER “It is time to start the unlockprocess.Itshouldnotbe the case that people escape coronavirusbutdieofhunger... We have to maintain a balance between controlling the spread of coronavirus and allowing economic activities,” Kejriwal said during an online press briefing. Continued on Page 2 Tamil Nadu extends lockdown by a week till June 7 THE STATE-WIDE LOCKDOWNwithoutrelaxationsto help break the chain of transmissionhasbeenextendedtill June7byonemoreweek,chief minister MK Stalin anno- unced on Friday,reports PTI. He said the move was done considering public good to rein in the Covid spread and appealed to the people to cooperate with the govern- ment and stay indoors.Stalin saidapackof13groceryitems would be distributed to rice category ration card holders throughPDSshopsfromnext month. ■ Page 2 72.48 MAHINDRA AND MAHINDRA (M&M) returned to black in the January-March quarter on the back of strong growth in the automotiveandfarmsegments. The company’s net profit was muted at `163 crore on a year- on-yearbasisduetoexceptional charges of `840 crore undertakenasimpairmentprovisions forcertainlong-termassetsand other exposures. M&M stemmed losses in its international subsidiaries, which was a big drag ayearago. Q4FY20 Q4FY21 Revenue from operations (` cr) Detailed report on Page 4 PRESS TRUST OF INDIA Pune, May 28 THE LOCKDOWN-LIKE curbs in Maharashtra have been extended by15 days but a fresh set of guidelines will be issued on June 1,state’s health minister Rajesh Tope said on Friday. The state cabinet had taken the decision to extend the curbs on people’s movement and businesses in a meeting on Thursday.“As far as lockdown is concerned, 15 days’ extension has been given, but the guidelines related to it will be issued on June 1,”Tope said. Continued on Page 2 QuickPicks Banks’ credit growth decelerates to 5.6% SOME OF the major social media firms, including Google, Facebook and WhatsApp, have shared details of their chief compliance officer, nodal contact person and grievance officer with the government, reports Kiran Rathee in New Delhi. However, Twitter is still to submit a report of compliance with any part of the rules, official sources said. PAGE 4 `/$ Intra-day, May 28 72.44 72.49 Previous close: 72.59 Previous close: 51,115.22 51,200 72.54 Open Close Open Close Lockdown-like restrictions in Maha extended by 15 days THE RBI on Friday imposed a `10-crore penalty of HDFC Bank due to deficiencies in regulatory compliance, reports fe Bureau in Mumbai. The case pertains to marketing and sale of third-party non-financial products along with auto loan. RBI said the fine is not intended to pronounce upon the validity of any transaction/agreement entered into by the bank with customers. PAGE 12 Continued on Page 2 M&M swings to profit in January-March FE BUREAU Mumbai, May 28 Close (PAT) of `163 crore. HDFC twins, Kotak Bank, IndusInd Bank,ITC and Bharti Airtel were among the other gainers, climbing as much as 1.47%. On the other hand, Sun Pharma, Bajaj Finserv, Nestle India, ICICI Bank, Axis Bank and Dr Reddy’s Laboratories wereamongthelaggards,tumbling up to 4.30%. 51,270 Source: SBI Research Twitter yet to submit IT rules compliance report Previous close: 15,337.85 Open 72.42 65.3 89.7 60.8 -28.9 44.0 -16.9 RBI imposes `10-crore penalty on HDFC Bank 15,380 51,340 Delhi unlock process to begin from Monday It is time to start the unlock process...We have to maintain a balance between controlling the spread of coronavirus and allowing economic activities. 15,405 72.36 51,410 COVID TRACKER PRESS TRUST OF INDIA New Delhi, May 28 15,430 72.30 51,381.27 51,480 15,455 15,435.65 15,421.20 Inverted scale BANKS’ CREDIT growth decelerated to 5.6% in March 2021 from 6.4% a year ago, the RBI said on Friday, reports PTI. On the other hand, aggregate deposits growth accelerated to 12.3% in March from 9.5% a year ago. Lower growth in credit vis-avis deposits led to decline in the allIndia credit-deposit ratio to 71.5% in March from 76% a year ago. PAGE 6 New Delhi 1,227 60 110 13.6 (after exceptional item, ` cr) 163 1,960 Ebitda margin (%) 48 Net profit % change Ebitda (` cr) « Sep’17 to Mar’18 84.6 FY19 139.4 FY20 110.4 Change* -29.0 FY21 85.5 Change** -24.9 No. of exited Existing payroll members who Net new rejoined and EPF Formali- Second resubscribed subscribers sation^ job First Job 51,422.88 « (in lakh) No. of new No. of members who new EPF joined in or after subscribers Sep ‘17& exited Intra-day, May 28 51,550 « EPFO payroll data Continued on Page 2 RISING FORTHE sixth session on the trot, the NSE Nifty closed at a fresh lifetime high on Friday, powered by a massive rallyin index heavyweight Reliance Industries. The rupee’s rising streak and daily Covid cases falling below the 2-lakh mark also spurred bullish sentiment, traders said. The Nifty surged 97.80 points or 0.64% to finish at 15,435.65, closing at a record high for the second straight day. The 30-share BSE Sensex ended 307.66 points or0.60% higher at 51,422.88. Reliance Industries hogged the limelight in Friday’s session, topping the Sensex gainers’chartwithajumpof5.90%. M&M spurted 2.13% after the homegrown auto major swung into black in the March quarter with a profit after tax Sensex Intra-day, May 28 15,480 « India created 100.4 lakh jobs in FY21 compared with 102.3 lakhs in FY20 but SBI Research points out these are low quality jobs. While the number of first time jobs fell by 16.9 lakh, 17.9 lakh more rejoined the payroll. PRNDS layout to the stalk on the steering wheel—rethinking the gear lever position can free up space between front seats of a car. ■ Motobahn, P7 1,94,100 ^Besides surplus from cess pool of previous years, `33,412 crore unutilised I-GST collections were for FY18 used to compensate states in the year More jobs created in FY21, but low quality Where is the gear lever? FY22 BE -1,60,000(E) Excess/shortfall FY21 RE -1,10,000 FY20 84,100 1,65,302^ 95,444 69,275 25,806 95,081 FY19 INDIA’S UNEMPLOYMENT RATE rose sharplyto 7.11% in the pandemic year 2020 to reach the highest level in at least three decades,according to the International Labour Organization’s (ILO’s) ILOSTAT database. For over a decade,India’s joblessness has been more acute than its immediate neighbours, while till 2009 Sri Lanka used to have a higher rate. Though the methodology may not be strictly comparable, going by the Centre for Monitoring Indian Economy's (CMIE)dataforthesubsequent period, the second Covid wave seems to have pushed India’s unemployment rate further. And the current calender yearcould possiblysee an even higher rate of joblessness in the country. Monthly unemployment rate of the country, as per CMIE, rose from 6.62% in January 2021 to 7.97% in April. Amidst lockdown and restrictions on mobility, the unemployment rate touched 14.5% in the week ended May 16, 2021, and rose further to 14.7%fortheweekendedMay 23,according to CMIE. Nifty50 PRESS TRUST OF INDIA Mumbai, May 28 14.7 -3,255 CITY-BASED UCO Bank on Friday said it was aiming a growth of 7-10% in the current fiscal amid the second round of restructuring guidelines from the regulator due to the second wave disruptions, reports PTI. FY18 Cess collected Compensation released to states SURYA SARATHI RAY New Delhi, May 28 Nifty ends at record high for second day 13,338 UCO Bank aims 7-10% growth in current fiscal (` crore) India's jobless rate highest in 3 decades in 2020: ILO SMART RALLY 9,005 OVER TWO-THIRD members of the CoC of Jaypee Infratech on Friday voted in favour of allowing seven days’ time to state-run NBCC and the consortium led by Suraksha to submit their revised resolution plans to acquire the bankrupt real estate developer, reports Rishi Ranjan Kala in New Delhi. Yawning shortfall To raise close to `1.6 lakh cr under special RBI window against `1.1 lakh cr last year; GoM to decide soon on tax cut for Covid items -69,858 NBCC, Suraksha get time till June 4 for revised JIL bids ● PANDEMIC SETBACK States’GST deficit: Centre will borrow in FY22 too 41,146 21,465 THE COVID-INDUCED suspension of scheduled international passenger flights has been extended till June 30, aviation regulator DGCA said on Friday, reports PTI. “However, international scheduled flights may be allowed on selected routes by the competent authority on a case-to-case basis," the DGCA added. COMPENSATION CESS 62,611 IN THE NEWS Suspension of int’l flights now till June 30: DGCA
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