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Bank recapitalisation will boost lending, says Jaitley

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Arun Jaitley

New Delhi, Feb 10: Finance Minister Arun Jaitley on Saturday said the government’s move to recapitalise public sector banks (PSB) would improve their lending capacity.

“I think the indications are that it’s (credit offtake) already happening and that seems to be good sign and now with the recapitalisation of the banks, the capacity itself to lend will improve,” Jaitley told reporters.

He was addressing a press meet along with Reserve Bank of India Governor Urjit Patel.

The government’s plans to spend Rs 2.11 lakh crore to recapitalise PSBs in a major step to restore the banking system’s health.

“I had a meeting with the SEBI’s (Securities and Exchange Board of India) board, and one of the factors that stood out in their presentation was that there is now also increased reliance on the bonds market as far as credit is concerned,” the finance minister said.

Jaitley had a meeting with RBI and SEBI boards in the national capital on Saturday on the Union Budget.

Talking about the fiscal situation in the country, Jaitley said next year would be reasonably more comfortable as far as revenues are concerned.

“Therefore, I can’t at this stage say that there would be any slippage. I am sure we will able to maintain the target quite well… You can’t base it on a hypothetical situation like oil prices… What has happened in the last three days is again something which nobody had predicted. So, that’s… entering into an area on which there is no certainty at the moment.,” he added.

Brent crude oil price is hovering around $63 per barrel at present.

Adding to the oil price concern, Patel said: “If I can just add that, in fact, in the MPC (Monetary Policy Committee) resolution, we had put forth the downside risks or the mitigating factors. We had observed, that in recent days, oil prices had two-way movement… What the Finance Minister said is exactly the correct point that, we need to be prepared for movements either way.”

“It is just very difficult to predict oil prices. A few months ago… June or so, people were talking about oil prices never going above $40-45… and some of the advice that came to the MPC and RBI was based on that which turned out to be wrong in a major way,” Patel said.

IANS

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TikTok threatens legal action against Trump executive order

The company said it will pursue ‘all remedies available’ including going to the U.S. courts.

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Tik Tok

TikTok is threatening legal action against the US after Donald Trump ordered firms to stop doing business with the Chinese app within 45 days.

The company said it was “shocked” by an executive order from the US President outlining the ban.

TikTok said it would “pursue all remedies available” to “ensure the rule of law is not discarded”.

Mr Trump issued a similar order against China’s WeChat in a major escalation in Washington’s stand-off with Beijing.

WeChat’s owner, Tencent, said: “We are reviewing the executive order to get a full understanding.”

As well as WeChat, Tencent is also a leading gaming company and its investments include a 40% stake in Epic Games – the company behind the hugely popular Fortnite video game.

The president has already threatened to ban TikTok in the US, citing national security concerns, and the company is now in talks to sell its American business to Microsoft. They have until 15 September to reach a deal – a deadline set by Mr Trump.

The Trump administration claims that the Chinese government has access to user information gathered by TikTok, which the company has denied.

TikTok, which is owned by China’s ByteDance, said it had attempted to engage with the US government for nearly a year “in good faith”.

However, it said: “What we encountered instead was that the administration paid no attention to facts, dictated terms of an agreement without going through standard legal processes, and tried to insert itself into negotiations between private businesses.”

The executive orders against the short-video sharing platform and the messaging service WeChat are the latest measure in an increasingly broad Trump administration campaign against China.

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Patanjali chasing profits, exploiting people’s fear: Madras HC

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Baba Ramdev

Chennai, Aug 6 : Coming down heavily on yoga guru Ramdev’s Patanjali Ayurved Ltd for “chasing profits by exploiting people’s fear and panic” to sell its immunity booster tablet Coronil, the Madras High Court on Thursday slapped a penalty of Rs 10 lakh on it.

The court also refused to vacate the interim injunction restraining Patanjali from using the name Coronil for its tablet in a trade mark infringement case.

The case was filed by city-based company Arudra Engineers Private Ltd that had registered the trademarks “Coronil-92 B and Coronil-213 SPL” in 1993 and holds rights over them till 2027.

The company sells an anti-corrosion product – a chemical agent that undertakes to sanitise and clean heavy industrial machinery and containment units at factories.

Apart from Patanjali, the other defendant in the case was Divya Yog Mandir Trust that makes the tablet.

The court order came in the petition filed by Patanjali and Divya Yog to vacate the interim injunction against the use of the name Coronil for its tablet.

The court said: “Insofar as costs are concerned, the defendants have repeatedly projected that they are Rs 10,000 crore company. However, they are still chasing further profits by exploiting the fear and panic among the general public by projecting a cure for the coronavirus, when actually their ‘Coronil Tablet’ is not a cure but rather an immunity booster for cough, cold and fever.”

“The defendants must realize that there are organisations which are helping the people in this critical period without seeking recognition and it would only be appropriate that they are made to pay costs to them,” it ruled.

The court ordered Patanjali and Divya Yog to pay jointly Rs 5 lakh each to the Dean, Adyar Cancer Institute, Chennai and to the Dean, Government Yoga and Naturopathy Medical College & Hospital, Chennai.

In both the organisations, treatment are accorded free of cost without any claim to either trademark, trade name, patent or design, but only with service as a motto, the court said.

“Costs to be paid on or before 21.08.2020, and a memo in this regard, to be filed before the Registry, High Court Madras, on or before 25.08.2020,” it ordered.

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Q1FY21 results: Vodafone Idea loss widens by 422.37 per cent YoY to Rs 25,460 crore

Average Revenue per User (ARPU) dropped to Rs 114 in Q1FY21 as against Rs 121 in Q4FY20.

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Vodafone, Idea

Vodafone Idea Ltd. announced its quarterly results on Thursday post market hours. The company posted a consolidated net loss of Rs 25,460 crore for Q1FY21, which increased by 422.37 per cent, as compared to Q1FY20 when it reported a consolidated loss of Rs 4873.9 crore.

The consolidated net sales reported in Q1FY21 came in at Rs 10,659.3 crore, which declined by 5.42 per cent YoY from Rs 11,269.9 crore in Q1FY20. At EBITDA level, the company stood at Rs 4,098.4 crore in Q1FY21 that increased by 10.28 per cent YoY. For Q1FY20, it posted an EBITDA of Rs 3,716.3 crore.

EBITDA margin as of Q1FY21 was at 38.45 per cent that increased by 5.47 per cent YoY. The net profit margin in Q1FY21 came in at -238.85 per cent, which declined by 195.60 per cent YoY. The net profit margin in Q1FY20 was at -43.25 per cent.

The company recorded exceptional cost of Rs 19,923.2 crore which includes merger related cost, licence fee, spectrum usage charges (SUC) on adjusted gross revenue (AGR).

Average Revenue per User (ARPU) dropped to Rs 114 in Q1FY21 as against Rs 121 in Q4FY20.

Q1FY21 was turned out to be a challenging quarter for the company as availability of recharges due to store closure due to lockdown and ability of customers to recharge on account of economic slowdown were affected.

The share closed with drop of 0.72 per cent at Rs 8.25 on BSE.

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