BACK PAGE | PAGE 24 BACK PAGE | PAGE 24 Ajit Pawar’s wife Sunetra set to be Maha deputy CM COMPANIES | PAGE 4 Census via digital route raises cyber risk worries NEW DELHI, SATURDAY, JANUARY 31, 2026 Bumper harvest: India a growth driver forApple FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM VOL. L1 NO. 286, 38 PAGES, `12 (PATNA & RAIPUR `12, SRINAGAR `15) 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 READ TO LEAD SENSEX: 82,269.78 ▼ 296.59 NIFTY: 25,320.65 ▼ 98.25 NIKKEI 225: 53,322.85 ▼ 52.75 HANG SENG: 27,387.11 ▼ 580.98 `/$: 91.99 ▼ 0.03 `/€: 109.54 ▲ 0.40 BRENT: $70.78 ▲ $0.07 GOLD: `1,64,389 ▼ `10,842 IN THE NEWS MARKETS PAGE 7 GOLD & SILVER TUMBLE ON PROFIT BOOKING GOLD PRICES TUMBLED by `14,000 per 10 g, while silver prices tanked by `20,000 per kg in the national capital on Friday as investors booked heavy profits amid weak global trends and a rebound in the dollar. MARKETS PAGE 7 PSBs OVERTAKE PRIVATE PEERS IN PROFIT RACE A SHARPER FOCUS on secured retail assets, limited exposure to unsecured segments and early transmission of repo rate cuts have collectively led to public sector banks to outperforming private ones in Q3, reports Mahesh Nayak. »Q3 SCORECARD« ROBUST DEMAND DRIVES NESTLE PROFIT UP 46% P4 BAJAJ AUTO POSTS 19% RISE IN PROFIT P4 AMBUJA CEMENTS NETTANKS 91% P4 MEESHO SEES LOSS WIDEN TO `491 CR P6 SECOND-LARGESTPSBTAKING SHAPE Union, BoI may merge by year-end KSHIPRA PETKAR & CHRISTINATITUS Mumbai, January 30 AMALGAMATION THE INITIAL MERGER process between Union Bank of India andBankofIndia(BoI)seemsto havebegun,accordingtosources familiarwiththematter. Both banks are currently undertaking due diligence, including internal assessments of processes and operational integration. Some officials said the merger could be completed by the end of the calendaryear. “The government is keen to mergesmallerbankswithlarger ones to create four to five big PSU banks instead of the current 12,” said a senior banking official aware of the developments,requesting anonymity. The merger would create one of the country’s largest public sector lenders, with a substantially expanded balance sheet, branch network and customer base. The combinedentitywouldbecomethe second-largest PSU bank,with assets of about `25.4 lakh crore in FY25, and the thirdlargest bank overall afterState Bank of India and HDFC Bank. In terms of market capitalisation, the merged bank would rank sixth at about `2.13 lakh crore at current prices,overtaking Bank of Baroda, Canara Bank and Punjab Top 5 banks by total assets (FY25) in ` lakh crore 66.8 SBI 39.1 HDFC Bank Union + BoI ICICI Bank PNB `2.13 lakh cr 25.4 21.2 18.2 Source: IBA ■ Combined entity to be 6th Merged bank market largest overall capitalisation by market cap National Bank. At present, Union Bank and Bank of India are the fifth- and sixth-largest PSU banks,respectively. Oneofthekeychallengesin the merger process will be the integrationoftechnologyplatforms, given differences in core banking systems and digital architecture. Continued on Page 10 ● V ANANTHA NAGESWARAN, CHIEF ECONOMIC ADVISER ‘State-led labour reforms can lift growth potential’ Rural demand is strong,reforms are advancing at the state level,and sustained gains will depend on productivity, competitiveness and outcomedriven public spending, chiefeconomic adviser VAnanthaNageswaran tells PrasantaSahu& KGNarendranath.Excerpts: Howstronganddurableisthe consumptionboostervia GSTandincometaxreliefs? Ruralconsumptionrevival seemsfleetingandweak... The concern about rural consumption is not borne out bydata.In fact,rural consumption is doing betterthan urban consumption. Indicators such as tractor sales, two-wheelers,and even fourwheelersales,showstronger performance in rural areas.So,the notion that rural demandis weak is outdated. As forthe tax relief,its impact is largelya one-off effect, lasting aboutayearbefore becoming part of the baseline. People adjust their spending accordingly. Ultimately, sustained consumption growth depends on income growth, which in turn comes from employment generation.That iswhere the focus needs to be. Tax buoyancy has dipped due to concessions,and the gap in tax-toGDP ratio seems to be widening... I think the private sectorhas to decidewhat itwants.When taxes are high,the private sectorasks fortax cuts,when taxes are reduced,concernsare raised about the tax-to-GDP ratio falling.We have to choose whatwewant.Also,the impact of tax reforms cannot be judged overa one-year horizon.Overall,the tax-toGDPratio has been rising over time,as shown in the Survey’s fiscal chapter. & Continued on Page 10 PN3relaxationmayclearFDIroute forfundswithminorityChinastake MUKESH JAGOTA New Delhi, January 30 THE GOVERNMENTIS considering a proposal to exempt foreign funds with Chinese investments below a specified threshold from the elaborate scrutiny mandated under Press Note 3 (PN3),Commerce and Industry Minister Piyush Goyal told FE on Friday. “There is a thought before us on whether we could have a de minimis threshold. There are many international funds that may have a small 1-5% Chinese investment in a large fund and want to invest in India. They also have to go through an elaborate process under PN3, and time is lost,” Goyal said in an interview. He added that the government remains open to reviewing the policy.“This is a listening government.We are always open to new ideas. We are engagingwith all stakeholders to make it easierto do business and attract investments. All options are being explored, and decisions will be taken in the national interest,”he said. Anysuch movewould mark asignificantrelaxationofPN3, which was introduced in April 2020 at the height of the Covid-19 pandemic. The rule added an additional layer of security scrutiny for investment proposals from countries sharing land borders with India. The proposed easing signals the government’s intent to stem persistent capital out- flows and tap susby the industry as a tained investor intercatalyst for the setting est linked to China, up of hundreds of new particularlyinsectors factories. “India has such as renewable earned its rightful energy, e-commerce, place at the global automobiles, real ON PAGE 2 high table. The world estate and electronics. sees India as an imporOfficials also believe a more tant player,backed bydecisive flexible approach could leadership and political stabilencourage the flow of critical ity,”he said. minerals and industrial inputs Since PN3 came into force, from China,supporting India’s foreign direct investments push to upgrade and expand where the ultimate beneficial its manufacturing base, owner is a Chinese entity especially in high-tech and have required prior governemergingsectorssuchassemi- ment approval following conductors,renewable energy, detailed scrutiny. While electric vehicles and artificial intelligence. On India’s PIYUSH GOYAL, expanding network COMMERCE & INDUSTRY MINISTER of free trade agreements (FTAs), includIndia has earned its ing the recently conrightful place on the cluded pact with the global high table. The European Union, world is seeing India as an Goyal said global engagement is essenimportant player today as tial for India’s ambiwe have a decisive, tion to become a strong leader in developed nation by Narendra Modi 2047.“No country in theworld has become and political developed without stability engaging with the rest of the world for trade and investment,”he said. “Under Prime Minister Narendra Modi, we have entered into eight FTAs, all with developed countries, covering 37 developed economies,”Goyal said,adding that the EU agreement is expected to deliversubstantial gains and has been welcomed & investments have not stopped altogether, the policy has slowed inflows and constrained the scale of Chinese investments. At one stage,Beijing expressed its displeasure byimposing curbs on exports of certain critical minerals to India. Continued on Page 10 ❝ Ola to fire over 500 employees FE BUREAU Chennai, January 30 OLA ELECTRIC ON Friday announced that it will lay off 5% of its workforce as part of a restructuringexercise,lessthan ayearafteritletgoofover1,000 employees and contract workers in a similar drive aimed at improving profitability. The latest round of restructuring is estimated to impact more than 500 employees and workers, though the company has not specified the numberaffected. In a statement, Ola Electric said it is doubling down on speed and discipline through increased automation across its front-end operations. “As part of this ongoing structural transformation,approximately 5% of the workforce will be impacted,”the companysaid. Ola Electric had 11,328 permanent and non-permanent employees at the end of FY25, as per the company's annual report. Continued on Page 10 KevinWarsh,a Fed critic, is poised to lead it ANN SAPHIR & SUSAN HEAVEY Washington, January 30 US PRESIDENT DONALD TRUMPonFridaychoseformer Federal Reserve Governor Kevin Warsh to head the US central bank when Jerome Powell's leadership term ends in May, giving a frequent Fed criticachancetoputhisideaof monetary policy “regime change” into practice at a moment when the White House has pushed for more control over the setting of interest rates. “I have known Kevin for a long period of time, and have no doubt that he will go down PRESIDENT'S PICK ■ Trump has nominated Kevin Warsh to become Federal Reserve Chair when Jerome Powell’s term ends in May ■ The former Fed governor supports lower interest rates, broadly aligned with the US President ■ Warsh had sought a 'regime change' at the Fed ■ He was nearly named to the job in Trump's first term as one of the GREATFed Chairmen,maybe the best.On top of everything else, he is 'central casting, and he will never let you down,” Trump said in announcing his latest move to put his stamp on a Fed he persistently criticises for not cav- ing to his demands for deep reductions in borrowing costs. Global stocks edged higher while the dollar rose and the price of gold plunged after Trump announced his pick of Warsh,whomarketsperceiveas someone who would support lower rates but who would stop well short of the more aggressiveeasingassociatedwithsome oftheotherpotentialnominees. Trump announced the nomination, which requires confirmationbytheUSSenate, in a post on social media. No public events have been listed on the president’s schedule for Friday involving the Fed. Continued on Page 10 New Delhi NSE gets Sebinod forIPOafter 10-yrwait ANJANATHERESE ANTONY Mumbai, January 30 THE SECURITIES AND Exchange Board of India (Sebi) on Friday granted a no-objection certificate(NOC)totheNational Stock Exchange (NSE) forits initial public offering (IPO),paving thewayforthecountry’sbiggest exchangetogetlisted. “With Sebi’s approval, we embark on a new chapter of value creation for all our stakeholders,”NSEChairpersonSrinivasInjetisaid.Thisnodalsoreinforces confidence in NSE being an integral part of the Indian economy and beacon of Indian capital markets,he added. In early January,Sebi ChairpersonTuhinKantaPandeyhad indicated that the markets regulator would issue the NOC by the end of the month. Two weeksago,PandeysaidthatSebi has given its in-principle approval for the resolution of the NSE’s co-locationcase. This marks an end to a decade-long struggle of the boursetofileadraftredherring prospectus(DRHP)togetlisted. NSEhadsubmitteditsDRHPfor thefirsttimein2016.However, it was withdrawn due to the investigations on the co-locationcase,inwhichthecompany was alleged to have given preferentialandunfairfasteraccess to certain brokers between 2010 and 2014. Continued on Page 10