MARKETS, P7 COMPANIES, P4 RBI DATA Bank credit grows 6%, deposits rise 10% in fortnight ended May 21 INTERNATIONAL, P8 Q4 EARNINGS INDIA’S FIRST TOUGH STANCE Punjab National Bank posts `586.33-crore profit on interest income boost Poonawalla-backed h2e to make three-wheelers powered by hydrogen President Biden blocks 59 Chinese firms in amended Trump order NEW DELHI, SATURDAY, JUNE 5, 2021 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL. XLVII NO. 82, 20 PAGES, `10.00 (PATNA `10.00, RAIPUR `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: 52,100.05 ▼ 132.38 NIFTY: 15,670.25 ▼ 20.10 NIKKEI 225: 28,941.52 ▼ 116.59 HANG SENG: 28,918.10 ▼ 47.93 `/$: 73 ▼ 0.09 `/€: 88.44 ▲ 0.44 BRENT: $71.69 ▲ $0.38 GOLD: `48,403 ▼ `451 `1.2 lakh cr ■ Separate `15,000-crore liquidity window for support to sectors like hotels, restaurants and tourism Additional `16,000cr funding for SIDBI to lend to MSMEs; over and above `50,000 cr set aside in April policy pressures and would continue to bat for growth. Das also expressed anxiety that rural demand might be hurt by rising infections, notwithstanding the promise of a good monsoon, at a time when urban demand had been dented. QuickPicks Amit Mitra seeks 5% of GSDP borrowing space sans conditions WEST BENGAL finance minister Amit Mitra on Friday expressed strong reservations against the Centre's decision to link half of the extra borrowing space of 1% of GDP being given to states in the current fiscal in the face of the Covid-19 pandemic to capital expenditure targets, reports fe Bureau in New Delhi. In a letter to Union finance minister Nirmala Sitharaman, Mitra urged her to allow states to borrow up to 5% of GSDP in FY22 without conditions. PAGE 2 HC asks Renault-Nissan to roll out Covid safety pact with union THE MADRAS High court on Friday asked Renault Nissan Automotive India to implement the agreement reached with the union for maintaining safety protocol at its Chennai plant, in its totality, Sajan C Kumar in Chennai. The company and the workers’ union had signed an agreement early this month, as part of initiatives for maintaining the social distancing at the shopfloor level, which include maintaining the empty pitch ratio at 3:1. PAGE 4 SBI’s domestic advances growth rebounds to 5.67% in FY21 THE COUNTRY’S largest lender, State Bank of India witnessed a rebound in domestic advances growth to 5.67% in FY21, while corporate credit de-grew over 3%, it said in its annual report for FY21 released on Friday, reports PTI. It said that despite the ongoing pandemic, its business growth remained robust in the financial year ended March 2021. Deposits grew in double digits, while advances rebounded compared to the preceding fiscal year, it said. PAGE 7 THE COUNTRY'S FOREIGN exchange reserves surged by$5.271 billion to touch a record high of $598.165 billion in the week ended May 28, the RBI data showed on Friday. While announcing the second bi-monthly monetary policy review earlier on Friday, RBI governor Shaktikanta Das said the country’s forex reserves mayhavecrossed$600billion currently. `50 cr, up from `25 cr Indeed, the GDP growth outlook for FY22 was pared to 9.5% while inflation forecasts have been tweaked up very slightlyto 5.1%.“The MPC has takentheconsciousdecisionto focusongrowth,”Dasasserted. Detailed report on Page 7 Continued on Page 12 BANKSANDNBFCscanrestructureloanswith anexposureofupto`50crore,theRBIsaidon Friday,reports Ankur Mishra in Mumbai.In May,RBIhadannouncedtheresolutionframework 2.0 for debt recasts of exposures ofupto `25croretoindividuals,smallbusinessesand MSMEs.These accounts need to have been CRUDE SHOCK Petrol over `100 per litre in almost every district of six states FE BUREAU New Delhi, June 4 Continued on Page 2 Some me cities where re retail petrol rates are above e `100/litre /litre AFTER RAJASTHAN, MADHYA Pradesh and Maharashtra, petrol price has crossed the `100-per-litre mark in Leh, in almost all districts of Andhra Pradesh and parts ofTelangana after fuel prices were again hikedonFriday.Petrolpricewas increased by 27 paise per litre and diesel by 28 paise a litre, accordingtoapricenotification of state-owned fuel retailers. The hike — 18th in the last one month—tookfuelpricesacross the countryto a historic high. In Delhi, petrol hit an alltimehighof`94.76alitre,while 92.24 Trivandrum, Kerala 92.04 *In all cities where petrol is `100/litre, diesel rates are above `90 PRESS TRUST OF INDIA New Delhi, June 4 RAIN-READY Dark clouds hover in the sky after the southwest monsoon made its footfall in Thiruvananthapuram, Kerala, on Thursday COVID TRACKER Come Sept, Bilogical E vaccine capacity to be 75 m a month Zydus Cadila vaccine emergency use licensure in 2 weeks FE BUREAU Pune, June 3 MOREVACCINE MAKERSwill be joining India's vaccination drive in the coming months. Apart from Serum Institute of India, Bharat Biotech and Dr Reddy’s Laboratories Sputnik Vvaccine,thecountrywillsoon have vaccines from Bilogical E and Zydus Cadila to scale up the programme.The countryis targeting to vaccinate a large section of the population to prevent another surge in the next wave of the pandemic. VKPaul,member(health)of the Niti Aayog, said vaccine maker Biological E will have a capacity to make 75 million vaccines per month from Sep- VACCINE SCENE ■ Vaccines from Bilogical E, Zydus Cadila to scale up vaccination programme ■ Govt advance of `1,500 cr for reserving 300 million Biological E doses ■ Zydus Cadila vaccine trials have also covered children ■ Bharat Biotech also conducting trials on children for Covaxin ■ Cadila's ZyCoV- D commercial productions expected to begin by June end tember2021.BiologicalEhasa good track record of manufacturing and they developed an Indian vaccine with funding support from the government. Continued on Page 12 US eager to involve Indian investigators in clinical trials on coronavirus, says Fauci 93.34 FINANCE MINISTER NIRMALA Sitharaman on Friday impressed on various ministries to “front-load”theircapitalexpenditure to stimulate growth, as shereviewedtheprogressofkey infrastructureprojectsaswellas the pace of capex with top government and PSU officials. Amid fresh calls for demandstimulus,theminister also asked public sector enterprises to do their bit in boosting capex, stressing that enhanced capex will key to revitalisingtheeconomyinthe aftermath of the pandemic. Early indications of capex performancebythemostsignificantcentralpublicsectorenterprises(CPSEs)intheenergysector indicate they made good start in 2021-22.Among them, a dozen in the oil and gas sector recordedacapexof`5,610crore inApril,anincreaseof25%over theyear-ago period. The government has budgetted capex at `5.45 lakh crore forFY22,which is 26.2% higher than the revised estimate of FY21 and 34.5% larger than the budget estimate (BE) for the last fiscal. Retail diesel rates die above `9 `90/litre * 92.68 Sitharaman asks CPSEs, ministries to front-load capex classified as‘standard’ as on March 31,2021. Crisil Ratings said the higher limit would increases the coverage of stressed companies under the scheme; it estimates that nearly two-thirds of the Crisil-rated mid-sized companies is now covered compared with only half earlier. 94.03 FY22-23e EPS up 5% due to higher molnupiravir sales; TP raised to `3,750 from `3,300; valuations factor in medium-term prospects for growth; ‘Reduce’ rating retained ■ Investor, P9 window extended for all Covid-hit entitieswith outstanding credit of 93.38 Divi’s Labs maintained its growth momentum in Q4 PRESS TRUST OF INDIA Mumbai, June 4 Vishakhapatnam, AP Hyderabad, bad, Telangana ana Raipur, Chhattisgarh Bhubaneswar, Odisha Ahmedabad, Gujarat Etrio, a start-up, is shifting from being a conversion expert (ICE vehicles to electric vehicles) to an original equipment manufacturer of groundup electric vehicles. ■ Motobahn, P9 $600 bn ■ Restructuring 100.65 From retro fitment to ground-up electric vehicles ofbonds under G-SAP2.0 in Q2 India's foreign exchange reserves may have crossed Lenders can now recast loans for exposures of up to `50 cr ● TAKING STOCK Special Features Forex reserves at lifetime high of $598.16 bn ■ Das says buy additional Leh, Ladakh 100.38 THE RESERVE BANK of India (RBI) on Friday reiterated its commitmenttogrowth,throwinginmoremeasurestostimulate lending to smaller companiesandeasingrulessomoreof them would be eligible for loan recasts.Itopenedcheapercredit lines for SIDBI and banks — for an amount of `15,000 crore — to incentivise them to lend to contact-intensive sectors. Expectedly,thecentralbank retained its accommodative stancesoastokeepbondyields in check and facilitate the government’s gigantic borrowing programme.“Thereisnothinking right now on normalising the accommodative policy,it is too early,too premature to talk about it,” RBI governor Shaktikanta Das observed indicating the RBI isn’t unduly worried about inflationary ■ Central bank to 100.98 FE BUREAU Mumbai, June 4 GDPgrowth outlook for FY22 pared to 9.5%; inflation forecasts tweaked up a tad to 5.1% 105.12 STATE-OWNED NBCC on Friday submitted its final bid to acquire Jaypee Infratech (JIL) while rival Suraksha group sought more time to make the final offer for the debt-laden realty firm under the insolvency resolution process, sources said. According to the sources, NBCC has submitted the final bid anditis compliantwith the Insolvency and Bankruptcy Code (IBC) provisions and a SupremeCourt orderpassed in March this year. Suraksha group has written a letter to creditors seeking seven more days to further sweeten its last bid,which was submitted on May18. The group also wants to reduce the timeline to complete flats from its earlier proposal of 42 months fordeliveries,thesourcessaid.However,it was not immediately clear whether Suraksha group will get additional time to submit the bid,theyadded. Last week, financial creditorsofembattledJILdecidedto give more time to NBCC and Suraksha group to submit their final bids. Accommodative stance to keep bond yields in check, facilitate govt’s gigantic borrowing programme 105.8 PRESS TRUST OF INDIA New Delhi, June 4 RBI bats for growth,aids small companies,Covid-hit sectors 106.1 NBCC submits final bid, rival Suraksha seeks more time to make offer PAIN RELIEVER Bijuri, MP Sri Ganganagar, Rajasthan Shahdol, MP Mumbai, Maharashtra Amaravati, AP ● JAYPEE RESOLUTION diesel is now priced at `85.66 per litre.Fuel prices differ from state to state depending on the incidence of local taxes such as VAT and freight charges. Petrol priceiswellabovethe`100-perlitre mark in all districts of Rajasthan,MadhyaPradeshand Maharashtra—thestateswhich levythehighestvalue-addedtax (VAT) in the country. Retail prices have risen after a rise in international oil prices on optimism that improving demandandadwindlingsupply glut may mean the market can absorb any additional production from OPEC and its allies. Continued on Page 2 AMERICA’STOPINFECTIOUS disease specialist DrAnthony Fauci on Thursday said his country is eager to involve Indian investigators in global clinical trials to evaluate the safety and efficacy of Covid therapeutics,reports PTI.The National Institute of Allergy and Infectious Diseases has a long history of collaboration with its counterpart agencies in India, Dr Fauci said at a forum Prior infection cuts risk for up to 10 months: Lancet study PRESS TRUST OF INDIA New Delhi, June 4 THE RISK OF being infected withSARS-CoV-2,thevirusthat causes Covid-19, is substantially reduced for up to 10 months following the first infectionwiththevirus,according to a study. The research, published in the journal Lancet Healthy Longevity on Tuesday, looked at rates of Covid-19 infectionsbetweenOctoberlast year and February this year among over 2,000 care home residents and staff in England. The researchers from the University College London (UCL) in the UKcomparedpeople who had evidence of a previous infection up to 10 months earlier,as determined byantibodytesting,with those who had not been previously infected.They found that residentswith apreviousinfection were 85% less likely to be infected during this fourmonth period than those who had never been infected. Continued on Page 12 ● MAKE IN INDIA PLI of `6,238 cr for white goods FE BUREAU New Delhi, June 4 THE GOVERNMENT ON Friday notified a `6,238-crore production-linked incentive (PLI) schemes for white goods under which companies will have the choice to start investment in either FY22 or FY23 and benefits will be extended accordingly. The notification bythe department forthe promotion of industry and internal trade (DPIIT), however, made it clearthat mere assembly of finished goods won’t qualify for the benefits. ■ Firms may begin investment either in FY22 or FY23 Benefits under the scheme to be extended accordingly to the said companies ■ Mere assembly of finished goods won’t qualify for benefits ■ Eligible investors to get incentives of 4-6% on incremental sales Under the scheme, eligible investors in air-conditioners, LED lights and such compo- nents will get incentives of 46% on incremental sales (to be calculated overthe baseyearof 2019-20) of products manufactured in India. The total incentives of `6,238 crore will bedisbursedoverfiveyears.The incentiveswillflowinfromthe next fiscal at 6% (if the investments start from FY22) and will be reduced to 5% by FY25 and then to 4% in FY27. The application window for the PLI scheme would remain open from June 15 to September 15. Continued on Page 2 NEWSWORTHINESS Facebook to end Zuckerberg-favoured rule exemptions for politicians ASSOCIATED PRESS San Francisco, June 4 FACEBOOK PLANS TO end a contentious policy championed byCEO Mark Zuckerberg that exempted politicians from certain moderation rules on its site,according to several news reports. The company’s rationale for that policy held that the speech of political leaders is inherently newsworthy and in the public interest even if it is offensive, bullying or other- wise controversial. The social media giant is currently mulling over what to do with the account of former President Donald Trump, which it “indefinitely” suspended Jan. 6,leaving it in Facebook limbo with its owners unable to post. The change in policy was first reported by the tech site The Verge and later confirmed by the New York Times and the Washington Post. Facebook has had a general “newsworthiness exemption” since 2016. But it garnered WRITING ONTHEWALL Facebook has had a general 'newsworthiness exemption' since 2016 Plan afoot to end the contentious policy championed by CEO Mark Zuckerberg Policy held that the speech of political leaders is inherently newsworthy Even if it is offensive, bullying or otherwise controversial attention in 2019 when Nick Clegg, vice president of global affairs and communications, announced that speech from politicians will be treated as “newsworthy content that should, as a general rule, be seen and heard”. Continued on Page 12 FB faces two antitrust Inquiries in Europe THEEUROPEANUNIONand BritishregulatorssaidFriday that they were beginning separate antitrust inquiries into Facebook, broadening their efforts to rein in the world’s largest technology companies,reports NYT. The regulators said they would start formal investigations of Facebook Marketplace, an eBay-like service New Delhi introducedin 2016 forusers to buy and sell products, to beginsoon.Underscrutinyis whether Facebook’s crosspromotion of Marketplace to the more than two billion users of its main social network gave the company an unfair advantage over rivals in violation of European Union competition laws. ■ Page 8
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