ECONOMY, P2 BACK PAGE, P22 CUT IN WINDFALL TAX Trade deficit may come off peak in August but will still remain high INTERNATIONAL, P8 FOR TRANSPARENCY NEW POLICY VEXING CHINA GST Council must tell states to implement document identification number, says SC Swiggy allows staff to moonlight, may set a trend Nancy Pelosi offers praise & support for Taiwan during visit NEW DELHI, THURSDAY, AUGUST 4, 2022 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL XLVIII NO. 133, 28 PAGES, `10.00 (PATNA & 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: 58,350.53 ▲ 214.17 NIFTY: 17,388.15 ▲ 42.7 NIKKEI 225: 27,741.9 ▲ 147.17 HANG SENG: 19,767.09 ▲ 77.88 `/$: 79.1613 ▼ 0.45 `/€: 80.6189 ▼ 0.03 BRENT: $100.68 ▲ $0.14 GOLD: `51,329 ▼ `12 NEW BILL BY BUDGET SESSION IN THE NEWS 5G rollout: Airtel partners Samsung, Ericsson & Nokia WITHIN DAYS of bidding for spectrum in the auctions, Bharti Airtel on Wednesday announced it has signed 5G network agreements with gear makers Ericsson, Nokia and Samsung to commence deployment this month. P14 Sebi widens ambit to proceed against intermediaries THE MARKETS REGULATOR on Monday amended the Sebi (Intermediaries) Regulations, 2008, and replaced the word ‘designated member’ with ‘competent authority’, reports Ashley Coutinho in Mumbai. Prior to this, a designated member was defined to include chairperson and WTMs. P9 JNPA bid: No SC stay on Adani disqualification THE SUPREME Court on Wednesday refused to stay Adani Ports and Special Economic Zone’s bid disqualification for maintenance and upgrade of Jawaharlal Nehru Port Authority (JNPA) container terminal in Navi Mumbai, but sought response from board of trustees, JNPA, and others, reports Indu Bhan in New Delhi. P14 Opec+ agrees to increase oil output OPEC+ ON Wednesday approved a small increase in production, over two weeks after US President Biden visited Crown Prince Mohammed bin Salman of Saudi Arabia to seek assurances that the group would take action to cool the markets, reports NYT. P8 FE SPECIALS Tech giving tribal youth a vital leg-up The GOAL programme aims to digitally empower a million youth across India ■ eFE, P7 Mid-rangers: Good performers for the price Samsung Galaxy M13 5G, vivo T1x and Infinix Smart 6 Plus are fast & smooth and have strong batteries ■ Gadgets, P7 Govt withdraws Personal Data Protection Bill Move comes after panel suggests 81 changes; new Bill may have four large buckets of digital rules and regulations FE BUREAU New Delhi, August 3 Alarm bells ■ The Bill was drafted by the Srikrishna Committee after year-long consultation and it was tabled in 2019 ■ Joint committee NEARLY EIGHT MONTHS after it was tabled in Parliament, the government on Wednesday withdrew the Personal Data Protection Bill, which sought to regulate howan individual’s data can be usedbycompaniesandthegovernment. In a statement, Union electronics andinformationtechnologyminister Ashwini Vaishnaw said, the Personal DataProtectionBill,2019, was deliberated upon in great detail bythe Joint Committee of Parliament (JCP), which suggested 81 amendments. Besides, 12 recommendations were made towards a comprehensive legal framework on digital ecosystem. The government sources familiar with the developments said incorporating so many changes would have made the existing Bill unwieldy. The revised Bill,theysaid,would be“neatlydrafted” after wide consultations and be tabled by the Budget session. The Bill was referred to the JPC for examination and the report of the committee was presented to the Lok Sabha on December 16,2021. Rajeev Chandrasekhar, minister of state for information technology and electronics, told reporters that the Bill was designed back in 2018, and it was for the limited purpose of privacy. But the JCP report had identified many issues thatwere relevantbutbeyondthe scope of modern digital privacy law. The Bill aimed to provide protection of digital privacy to individuals relating to their personal data and specify the flow and usage of data of Parliament took a further two years to study the contours of the highlyCivil society debated groups had regulation criticised the openended exceptions given to the govt in the Bill, allowing surveillance Accordingtosourcesintheknow,the government’s approach now will be to have four large buckets of digital rules and regulations with a data privacy Bill, a contemporary IT Act that would deal withuserharm,ethicalusage,datalocalisation issues, significant social media institutions,non-personal data,trusted hardware issues, then a National Data Governance Policy and cybersecurity matters.“Having all these underone Bill was difficult as the government was finding ithard to harmoniseitwith data protection,”the sources said. In talks with an Indian conglomerate, mid-eastern carrier FE BUREAU New Delhi, August 3 THE PROMOTER OF beleaguered carrierSpiceJet,AjaySingh,isunderstood to be in discussions with a mid-eastern carrier and an Indian conglomerate for a possible stake sale in the low-cost airline, people familiarwiththedevelopmentindicatedtoFE.Singhholdsafairlylarge stake of close to 60% in SpiceJet, which has accumulated losses of an estimated`5,000croreandanegative networth. The airline has been bleeding and needs a big dose of capital infusion. “The new promoters would needtoinjectalargeamountofcapital to revive the business. In this context,the equity has little value,” SC calls for composite panel to regulate poll freebies FE BUREAU New Delhi, August 3 BofA Securities was the sole bookrunner to the deal. Sources had earlier told FE that a number of US-based institutional investors were in the fray to acquire Uber Technologies’shares,which it had acquired when it had sold off its food delivery arm Uber Eats to Zomato. The stock transaction deal, done in 2020, wasvalued at `1,376 crore at that time. THESUPREMECOURTonWednesday advised the Centre to form a composite expert panel to examine the pros and cons of freebies given out by governments and ways to curb irrational electoral promises that cost the exchequer dear. The panel may deliberate on the issue and come outwith a report,it said. The committee may comprise Niti Aayog, RBI, Election Commission of India,Finance Commission, ruling and opposition parties and otherstakeholders,the SC said. A bench led by Chief Justice NV Ramanasaidthepracticeofpolitical parties promising free goods and services to electorate if voted to powerare“seriouseconomicissues” related to policy and every stakeholder, including “taxpayers and beneficiaries,” should participate in the debate. The court’s remarks came as Solicitor General Tushar Mehta,on behalf of the Union government, noted that “mindless” freebies and populist promises by political parties often lead to “economic disasters”.He suggested that theElectionCommissionshouldreexamine the issue. The top court posted the matter for further hearing on August 11,when the Centre will spell out its stand more clearly. NKSingh,who chaired the latest (15th)FinanceCommission(FC)and headed the panel that recommendedcappingofthegeneralgovernment debt at 60% of the gross domestic product, recently told FE that while tax devolution is states’ inalienableright,theFCcouldbeone of the institutional mechanisms to regulatespendingonfreebies,which destroy the foundation of macroeconomic stability. Continued on Page 2 Continued on Page 2 Continued on Page 2 Uber exits Zomato via `3,087-cr block deal RAJESH KURUP Mumbai, August 3 UBER TECHNOLOGIES EXITED Zomato through a block deal on Wednesday,selling its entire 7.8% stake inthefooddeliveryaggregatorforabout `3,087 crore. The deal was executed at `50.44 a share. The buyers included global investment and venture capital firms such as KeysquareCapital,JamesStreet,Templeton Global,FMR and Mirae Asset Global Investments,amongothers.Britishasset management firm Schroders and US asset manager BlackRock also took part in the block deal, sources close to the development told FE. Domestic funds (investors in rupee terms) included ICICI Prudential Mutual Fund, ICICI Prudential Life Insurance, Nippon India Mutual Fund, Avendus Capital, HDFC Life Insurance, NewHorizon andTempleton’s local arm among others. SpiceJet’s Singh explores stake sale `5,000 crore ■ In early February, the airline’s auditors had expressed doubts on its ability to continue as a ‘going concern’ estimated accumulated losses of the airline 60% `1,267 crore ordered SpiceJet to operate only 50% of its approved flights in the summer schedule, for eight weeks, after several tech glitches stake is held by Ajay Singh in SpiceJet loss reported by firm for 9 months to Dec 2021 an analyst explained. The SpiceJet stock rallied on Wednesday after the news of the prospective sale broke and ended at `50.05 apiece on the BSE, up 12.73% overthe previous close. Whencontacted,aspokesperson for the airline said: “The company continues to be in discussions with various investors to secure sustain- ■ Last week, DGCA ablefinancingandwillmakeappropriate disclosures in accordance with applicable regulations.” Hitbycurtailedoperationsinthe wake of the pandemic, the airline reportedalossof`1,267.5crorefor theninemonthstoDecember2021 andhasnotreportedresultssince.In early February, the firm’s auditors had expressed doubts on its ability tocontinueasa‘goingconcern’.They also noted the loss in the December 2020 quarterwould have been bigger had it not recognised other incomeand foreignexchangegains on account of compensation expected from Boeing for the grounding of 737 MAXaircraft. Continued on Page 2 Services PMI at 4-month low on dented demand,high costs FE BUREAU New Delhi, August 3 AMIDAN UPTICK in scores of economic indicators, India’s services sectorlost momentum in Julyeven as it remained in the expansion zone for the 12th straight month. The seasonally adjusted S&P GlobalIndiaServicesPMIBusiness Activity Index fell from 59.2 in June to 55.5 in July, the slowest growth rate in four months. The creatorsoftheindex attributedthe fall in PMI to “demand somewhat curtailed by competitive pressures”, elevated inflation and an unfavourable weather. The services activity,as gauged byPMI,hadexpandedatthefastest pace in 11 years in June 2022, reflecting robust demand conditions. Manufacturing activities, measured by a comparable yardstick, scaled an eight-month peak in July, as new order intakes rose substantially, recovering the growth momentum lost in June. As per the PMI survey, service providers that reported higher sales in Julymentioned favourable demand conditions and fruitful advertising. Pollyanna De Lima,economics associate director at S&P Global Market Intelligence,said the subtle easing in cost inflationary PMI 56.4 61 55.3 58 55 52 55.5 49 46 43 45.4 Manufacturing Services i July 2021 July 2022 Note: Reading below 50 suggests contraction and above it indicates expansion; Source: PMI by S&P Global pressures to a five-month lowwas also welcomed by services firms struggling to preserve margins and contributed to a softer rise in prices charged.Yet,Lima said,survey participants again reported considerable strain from food, fuel, input, labour, retail and transportation costs. Sectorexperts,meanwhile,provide an optimistic outlook. As reported by FE recently, Services Export Promotion Council (SEPC) chairman SunilTalati believes that a sharp slowdown in growth or recession in advanced economies may brighten the prospects for Indian services exporters,as these countries tend to start diverting a largernumberof orders to cheaper destinations to cut down on costs. However, in July, the domestic market remained the keysource of sales growth as international demand for Indian services worsened further,the survey said. Continued on Page 2 Q1 REPORT CARD IndiGo trims loss to `1,064 crore in April-June quarter Vodafone Idea loss narrows; Takkar elected chairman Adani Power profit surges to `4,780 cr on income boost INTERGLOBE AVIATION, which operates low-cost carrier IndiGo, on Wednesday reported a consolidated net loss of `1,064.26 crore for the three months to June owing to headwinds caused by depreciating rupee and higher fuel prices, reports fe Bureau in New Delhi. P4 VODAFONE IDEA on Wednesday reported marginal narrowing of its consolidated loss to `7,296.7 crore for the June quarter against the year-ago period as tariff hikes boosted its realisations. It further said Ravinder Takkar will take over as chairman with effect from August 19. P5 ADANI POWER on Wednesday posted a manifold jump in consolidated net profit to `4,779.86 crore in the quarter ended June, on account of growth in income. Consolidated net profit in the year-ago period was at `278.22 crore, according to a regulatory filing. P14 ● PRASHANT KUMAR, MD & CEO, YES BANK ‘Expect SBI to stay invested in Yes Bank beyond March 2023’ Growth and delivery on returns to investors will be Yes Bank’s chieftargetsafterits$1.1-billion fundraise,MD&CEOPrashant Kumar told Shritama Bose. State Bank of India (SBI) will remain invested in the private lendereven afterthe share lockin ends in March, he added. Edited excerpts: What’snextforYesBank,with thelegacyissuesresolvedand newinvestors coming in? Next is growth and delivery on returns to investors. More importantly,we will have to be more responsive to our customers.We have to ingrain the digital capabilities of the bank into the end-to-end customerjourneys. The lock-in period for your largest shareholder SBI ends in March. What would their strategy be? The SBI chairman has made a statement that theyarenotinahurryto monetise the Yes Bank investment.SoSBIisnot inahurrytoexit,theywill do it when they get a good return on their investment. market share target? We have been continuously increasing our market share for the last two years. That would happen if you are growing more than the industry growth rate. This is something we would continue to do.But,we are not looking to speed up this part. We need to be cautious in terms of what happens in the economy because of the inflation and the rising interest rate scenario. But if the industry grows at a particular rate, we will definitely grow more than that. Q&A Soyou expect them to stayon beyond March? Yes,definitely. You have set yourself some operational targets.Is there a Which segmentswillyou focus on? Wearefocusing moreon retail, MSME and the mid market. Lastyearwegrew32%in these three segments, and we will continue to grow there.We are strong and would continue to grow on small business loans. We’ll also grow personal loans and vehicle loans – personal and commercial. These four segments, along with home loans, contributealmost75% to our retail lending. We would like to take the proportion of home loans in retail to 20% by FY24 from 13% now.Wewould also like to grow in the large corporate segment, but that would be granulargrowth,and not big-ticket exposures. Competition is stiff in the wholesale segment. How are you positioning yourself? There’s huge competition, but we also have a range of corporates.We would now be taking care of the AAA-rated kind of corporates.Wewoulddefinitely like to see howwe participate in the consortiums for A-rated or AA-rated corporates. Secondly, we have huge capabilities for transaction banking.So it’s not only about lending to corporates, it’s also about managing their transactions, cash flows and fee income, along with New Delhi CASA deposits.A pricing war is on for the better-rated corporates as also in the MSME and mid market segments. Banks which are sitting on large deposits,where the CD ratio is low, are in a better position to offercompetitive rates,as comparedtobankswhereliquidityis always at a higher cost. That advantagecanbeneutralisedby better customer service, better turnaround time and digital capabilities.Wewouldnotliketo sacrifice margins only for growthatthistime.Wearequite confident of being able to grow whileprotectingandimproving on margins. Continued on Page 2
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