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India To Inject Rs 700 Billion Into State Banks To Absorb Loan Losses And Bolster Credit Growth

New Delhi: India will inject another 700 billion rupees ($10.2 billion) into state banks, giving them a bigger cushion to absorb loan losses and bolster credit growth at a time when the country’s shadow banks are in retreat.

The new infusion will “boost capital so that credit can be further improved,” Finance Minister Nirmala Sitharaman said on Friday, while presenting the federal budget for the year to March 2020. New measures will be introduced to improve governance at the state lenders, she added, without giving details.

Boosting credit growth is a key goal of Prime Minister Narendra Modi’s government, as it seeks to revive the economy and offset the effects of a shadow banking crisis that has been unfolding since September.

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Six pre-election promises may find their way into the first budget of Modi 2.0 government

New Delhi: The Union government will see this budget as a continuation of its past five years in power. Union finance minister Nirmala Sitharaman will present her first budget — also the first of the Narendra Modi government’s second term — on Friday. At the same time, the magnitude of the mandate to the Bharatiya Janata Party (BJP) and its allies may encourage the government to go for bold decisions. The budget also comes months before the states of Maharashtra and Jharkhand go to polls and as the prospect of a drought looms large in many parts of the country. One useful source for what to expect in this year’s budget is the BJP manifesto for the 2019 elections. Here are six pre-election promises that could find their way into the budget:

The manifesto promises short-term new agriculture loans up to Rs 1 lakh for one to five years through Kisan Credit Cards (KCCs) on the condition of prompt repayment of the principal amount. Currently, such loans are collateral free but attract a 7% rate of interest. There are almost 70 million KCCs in India, according to a reply by the government to a question in the Rajya Sabha in 2018.

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Ola Electric Mobility Secures A Funding Of Over Rs 1,725 Crore From Softbank

New Delhi: Ola’s electric vehicle arm, Ola Electric Mobility has secured a funding of over Rs 1,725 crore (about $250 million) from SoftBank. With this latest infusion, Ola Electric Mobility (OEM) has joined the list of unicorns in India that includes names like Flipkart, Zomato, Paytm as well as its parent, Ola.

As per regulatory documents filed with the Registrar of Companies, OEM issued “4,326 fully and compulsorily convertible series B preference shares of face value of Rs 10 each having the rights, privileges and preferences...” to SB Topaz (Cayman) Ltd.

The total amount paid was about Rs 1,725.04 crore, it added. The allotment was made on Tuesday following a special resolution passed by the board members on June 25, the filing showed. SoftBank is also the single largest investor in Ola.

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Gold Prices Fell Nearly 2% To Their Lowest In More Than A Week As Dollar Strengthens

New Delhi: Gold prices fell nearly 2% to their lowest in more than a week as the dollar strengthened and investors opted for riskier assets after the United States and China agreed to restart trade talks. Spot gold was down 1.7% at $1,384.81 per ounce as of 0724 GMT, after falling to its lowest since June 20 at $1,381.51.

U.S. gold futures dipped 1.8% to $1,388.20 an ounce. “Reopening of trade talks between U.S.-China has made investors look back at growth, we are seeing good support for the share markets across the region and safe-havens are in less demand,” said Michael McCarthy, chief market strategist, CMC Markets.

“We are likely to see increased volatility. Gold prices have pulled back from an important technical level of around $1,430, that could mean that we will see a test at support around the $1,380 mark.”

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India Moves Down To 74th Rank In Terms Of Money Parked By Its Citizens And Enterprises With Swiss Banks

New Delhi: As per data released by the central banking authority of the Alpine nation, India has moved down one place to 74th rank in terms of money parked by its citizens and enterprises with Swiss banks, while the UK has retained its top position. India was ranked 73rd last year, after jumping 15 places from its 88th position a year ago.

An analysis of the latest annual banking statistics released by the Swiss National Bank (SNB) shows that India remains ranked very low when it comes to money parked by Indian individuals and enterprises in Swiss banks, including through their India-based branches, while accounting for just about 0.07 per cent of the aggregate funds parked by all foreign clients of Switzerland-based banks.