08

We are very confident that we will be

creating a better base for the bank
S S MALLIKARJUNA RAO
KOLKATA, WEDNESDAY 24 JUNE 2020 PNB MANAGING DIRECTOR

US move to suspend
THUMBNAILS
RIL-Saudi Aramco: Reliance
Fitch revises outlook of six work visa may hurt
govt firms to negative Indian IT cos’ margins
Industries Ltd (RIL) on
Tuesday said it is working
to complete contours of a
$15-billion deal with Saudi
Aramco but did not give a
timeline for its comple-
The companies are IOC, BPCL, OIL, GAIL India, Power Grid Corporation of India and NTPC PRESS TRUST OF INDIA
NEW DELHI, 23 JUNE
for the Indian IT sector, par-
ticularly on margins...
tion. Mukesh Ambani in PRESS TRUST OF INDIA fiscal deficit and public-sec- (we) believe companies with
August last year NEW DELHI, 23 JUNE RATING AGENCY REPORT tor debt ratios. Fitch expects The US move to suspend lower levels of locally hired
announced talks for sale general government debt to work visas like H-1B till year- workers will see a greater

F
of 20 per cent stake in the itch Ratings today said � Fitch Ratings has revised the outlook jump to 84.5 per cent of GDP end may hurt the Indian IT negative impact,” a Gold-
oil-to-chemical business, it has revised the out- on the long-term issuer default ratings in FY21 from an estimated 71 firms' margins as they will have man Sachs Equity Research
which comprises its twin look on ratings of six (IDR) of six rated Indian government-relat- per cent of GDP in FY20. to resort to more expensive report said.
oil refineries at Jamnagar government-owned ed entities (GREs) to negative from sta- Weak implementation of local hiring to replace Indi- The report noted that Indi-
in Gujarat and petrochemi- firms such as Indian Oil Corp ble. The entities' long-term IDRs are fiscal rules stipulated in the ans, according to analysts. an IT outsourcing compa-
cal assets, to the world's (IOC), NTPC and GAIL to affirmed at 'BBB-' Fiscal Responsibility and Bud- A section of analysts think nies have been consistently
largest oil exporter. The 'negative' from 'stable', fol- get Management Act con- that Indian IT companies working towards reducing
deal was to be concluded lowing a change in outlook on � The rating agency also revised the out- tributes to Fitch's view that a which have been ramping their reliance on H-1B/L1
by March 2020 but has sovereign India rating. look on private sector Adani Transmis- � Weak implementation of fiscal rules speedy fiscal improvement up local hiring can aid them visas since 2017, and focus-
been delayed. PTI The six PSUs whose rating sion Ltd's rating to negative from stable after the pandemic recedes is in mitigating the impact of this ing on the locally hired work-
outlook has been revised are
stipulated in the Fiscal Responsibility and unlikely. development. force to create more jobs in
IOC, Bharat Petroleum Corp
Budget Management Act contributes to Fitch said while ratings of US President Donald the US economy.
� It forecast the economy to recover and Fitch's view that a speedy fiscal improve-
CBIC move: Exporters will Ltd (BPCL), Oil India Ltd expand by 9.5 per cent in FY22, mainly ment after the pandemic recedes is IOC and BPCL are equalised Trump signed a proclamation Credit rating agency Icra,
now have to present only (OIL), GAIL India Ltd, Power driven by a low-base effect unlikely with those of the sovereign to suspend issuing of H-1B in its report, said the tempo-
digital copies of shipping Grid Corp of India Ltd and given the strong likelihood of visas ~ popular among Indi- rary suspension will be “mild-
bills bearing final let NTPC Ltd. support, the same of GAIL and an IT professionals ~ along ly negative” for the Indian IT
export order and gatepass “Fitch Ratings has revised subsidiary of state-owned Oil per cent in the fiscal year pandemic, particularly in the PowerGrid are stronger than with other foreign work visas services sector considering
to customs authorities as the outlook on the long-term and Natural Gas Corp (ONGC), ending March 2021 (FY21) financial sector. that of the sovereign at 'bbb' for the rest of the year, aimed their high dependence on
the CBIC has launched issuer default ratings (IDR) of to negative from stable. following strict lockdown India's medium-term and 'bbb+', respectively. How- at helping millions of Amer- such visas.
paperless documentation six rated Indian government- The rating agency also measures imposed since 25 GDP growth outlook may ever, their ratings are capped icans who have lost their jobs “However, the suspension
of exports, a move aimed related entities (GREs) to neg- revised the outlook on private March to curb the spread of be negatively affected by at the same level as that of the due to the current econom- will not affect those already
at saving time and cost of ative from stable. The entities' sector Adani Transmission coronavirus. renewed asset-quality chal- state, according to the crite- ic crisis. in the US on the visas...Cur-
compliance for trade. PTI long-term IDRs are affirmed Ltd's rating to negative from It forecast the economy to lenges in banks and liquidi- ria. The order that comes into rently, Indian IT services is the
at 'BBB-'. The rating action fol- stable. recover and expand by 9.5 per ty issues in non-banking “The outlook is negative effect on 24 June, is expect- major beneficiary of the H-
lows the revision of the out- “The Negative Outlook on cent in FY22, mainly driven financial companies,” the and we therefore do not expect ed to impact several Ameri- 1B visa programme. USCIS
Cargill foray: US-based look on India's 'BBB-' sover- India reflects the country's by a low-base effect. statement said. positive rating action. The can and Indian companies issued a total of 3,88,403 H-
food major Cargill on Tues- eign rating to negative from weakened growth prospects “It remains to be seen India's fiscal metrics have outlook will be revised to sta- who were issued H-1B visas 1B visas during FY2019 (Octo-
day announced foray into stable on 18 June,” it said in and challenges associated whether India can return to deteriorated significantly, ble if the sovereign's outlook by the US government for the ber 2018 to September 2019
the chocolate business in a statement. with a high public-debt bur- sustained growth rates of 6 per despite the government's is revised to stable provided fiscal year 2021 beginning 1 period) including fresh and
India and said it has tied Also, Fitch revised the out- den,” it said. cent to 7 per cent as Fitch pre- expenditure restraint, due to the likelihood of support from October. renewals of which share of
up with a local manufac- look on Hindustan Petroleum Fitch said it expects viously estimated, as it depends the impact of the severe growth the state remains strong,” it “This proclamation will India stood at 71.7 per cent,”
turer in the western Corp Ltd (HPCL), which is a India's GDP to contract by 5 on the lasting impact of the slowdown on revenue, the said. have negative implications it added.
region to produce 10,000
tons annually. Cargill start-
ed operations in India in
1987. It has businesses in
refined oils, food ingredi-
Inequality gap to narrow down Vizag gas
taken out of
Sebi relaxes rules for listed
ents, grain and oilseeds,
cotton, animal nutrition,
bio-industrial and trade
post Covid-19: SBI report India cos with stressed assets
structured finance. PTI SEOUL, 23 JUNE
PRESS TRUST OF INDIA the collapse of the Berlin war cent of the country's GDP. PRESS TRUST OF INDIA methodology of preferential scanned copies of documents
MUMBAI, 23 JUNE (1989), it said. The report This is due to the fact that In the aftermath of a deadly NEW DELHI, 23 JUNE issues by such firm. for renewing registration till
Solar duty: The govern- said this decline in PCI is these are the urban areas styrene gas leak at an LG The office of finance min- 31 August in the wake of
ment is considering basic Post Covid-19 pandemic, the higher than the nominal GDP (and red zones also) where Polymers plant in India last To ease fundraising for com- ister Nirmala Sitharaman coronavirus pandemic.
customs duty of around inequality gap in the coun- decline of 3.8 per cent. lockdown was implemented month, LG Chem says that it panies with stressed assets, also tweeted: "In order to Earlier, this relaxation was
20 per cent on solar ener- try will narrow down, as Globally also, the fall in per most severely. The closure of has shipped the toxic gas market regulator the Securi- help stressed firms raise cap- given till 30 June.
gy equipment to provide income of rich states is like- capita GDP of 6.2 per cent in markets, shopping complexes back to Korea. ties and Exchange Board of ital while also protecting In light of the prevailing sit-
an edge to domestic man- ly to decline more than the 2020 is significantly greater and malls adversely affected According to LG Chem, of India today decided to relax shareholders' interests, the uation due to Covid-19,
ufacturers and discourage poor states, according to an than the 5.2 per cent decline income of these areas, it said. the 14,000 metric tons of pricing framework under the Sebi has relaxed the pricing the markets regulator received
imports, particularly from SBI research report ~ Ecowrap. in the world GDP. Even after opening of mar- styrene gas stored in India, it preferential route and exempt- methodology for preferential representations from vari-
China. However, solar ener- At all India level, per capi- The rich states (whose per kets (in staggered manner), disposed of 8,000 tons by ed allottees of preferential issues by listed companies ous stakeholders about
gy developers are of the ta income (PCI), which is a capita income is greater than the number of customers is selling it to China and brought issues from open offer oblig- having stressed assets and has extending temporary relax-
view that basic customs measure of the earnings per all India average) will be most still 70-80 per cent less than the remaining 6,000 tons ations in such cases with exempted allottees of pref- ation with respect to
duty on solar equipment person in a nation or geo- affected in per capita income the normal times, the report back to its petrochemical immediate effect. erential issues from open compliance requirements
will be counter-productive graphic region, will decline by terms. said. In the current fiscal, plant in Yeosu, South Jeolla Typically, listed companies offer obligations." for FPIs, the Sebi said in a cir-
for the segment in view of 5.4 per cent in FY21 to Rs 1.43 In Delhi (-15.4 per cent) and states like Maharashtra, Province, following an order having “stressed assets” expe- The new framework is cular.
India's ambitious solar lakh, the report said. Chandigarh (-13.9 per cent), Gujarat, Telangana, and Tamil made by Indian authorities rience progressive fall in their aimed at helping stressed Accordingly, the regulator
energy target. PTI We expect that the inequal- the decline in PCI is almost Nadu are expected to witness to remove the gas out of the share price. Further, the dis- companies raise capital has decided to extend the
ity gap in India will narrow thrice than the decline at all a decline of 10-12 per cent in country. closures that are made by through timely financial inter- relaxations in a situation
down post-Covid pandemic India levels (-5.4 per cent), it PCI. “LG Chem will manage the stressed companies such as vention at the same time where FPIs are not in a posi-
Multi-trip insurance: Digital as decline in income of rich said. However, in the relative- styrene gas shipped from their financial results and protecting the interest of tion to send original and/or
payments platform states will be much greater A total of eight states and ly less well-off states like India safely at its Yeosu facil- default in servicing debts shareholders. certified documents.
PhonePe has announced than the decline in income of Union Territories are sup- Madhya Pradesh, Uttar ity,” a company official said. also aggravate the fall. It, further said, these doc-
the launch of a domestic poor states, the SBI's research posed to witness a decline in Pradesh, Bihar, Odisha (where Styrene gas is a raw mate- Such firms face certain FPI norm: Relaxing com- uments can be uploaded on
multi-trip insurance cover report said. PCI in double digits in FY21 per capita income is below the rial used for making plastic, difficulties in raising capital pliance requirement for for- KRAs (KYC registration agen-
in a strategic partnership A similar type of experience and that is most alarming, the national average) the decline packaging containers and through the conventional eign portfolio investors (FPIs), cies) websites and other inter-
with ICICI Lombard. This of decline in inequality was report said. These states con- in PCI is less than 8 per cent, Styrofoam. means. Consequently, the the Securities and Exchange mediaries may rely on the
product exclusively avail- witnessed in Germany after stitute as much as 47 per the report said. THE KOREA HERALD/ANN Sebi has eased the pricing Board of India today allowed papers.
able for PhonePe users,
provides an affordable
annual insurance covers
for unlimited trips, accord-
ing to a Press release. SNS Will Tokyo upstage Seoul in bid to replace HK? Indian Bank loss
BMW's new logo: BMW
JIE YE-EUN
SEOUL, 23 JUNE While Tokyo wants to capitalise on the opportunity to replace Hong
“Seoul Office,” and launch a
website to provide informa-
widens to `218 cr in Q4
Group announced the Kong, the former British colony ~ which has maintained its status tion in different languages PRESS TRUST OF INDIA bad loans and contingen-
introduction of its new Turning Seoul into a new as Asia’s leading financial centre for decades ~ Seoul seems to on the nation’s major finan- NEW DELHI, 23 JUNE cies were hiked to Rs 1,891.86
brand and corporate iden- financial hub in Asia has for lack solid, effective plans to entice professionals and institutions cial regulations, the official crore for March quarter of
tity for online and offline long been a campaign promise added. Indian Bank today reported 2019-20 as against Rs 1,638.83
communications in India. of local politicians cutting wanting to relocate Given the circumstances, widening of net loss to Rs crore in year-ago period.
The BMW, BMW i and BMW across party lines. some experts say Seoul is 217.74 crore for the March On asset front, Indian
M communication logos Seoul Mayor Park Won- ministries and financial The Seoul government, first half of this year, but they not ready to be Asia’s next pre- quarter 2019-20 due to high- Bank showed improvement
have been completely soon, who is now in his third authorities ~ is considering for its part, has said it is mak- had to be postponed, the offi- ferred financial centre, on er provisions, even as the as gross NPAs (non-per-
reworked, with a new logo- term, is no exception. He had offering various benefits such ing efforts to attract foreign cial said. The city laid part of par with Hong Kong, consid- bad loan proportion came forming assets) were trimmed
type and new design prin- even announced plans to as short-term visa waivers, tax investors by offering free the blame on the nation’s cor- ering the size of the domes- down. to 6.87 per cent as at March-
ciples, said a release. SNS replace old apartment build- advice and free office space offices. But the plan is porate tax laws, with high tax tic economy and the lack of The bank posted a loss of end 2020 from 7.11 per cent
ings with high-rises of up to for Hong Kong financiers who mainly for small fintech com- rates in Seoul because it is cat- freedom for financial activi- Rs 189.77 crore for January- by the corresponding period
50 stories and create more are seeking to shift base due panies. egorised as an overpopulat- ties here. March 2018-19, it said in a reg- a year ago.
Turtle Wax: Chicago-based parks and leisure spaces to rein- to the prolonged social insta- “We’ve been making efforts ed area. “Since the UK has retained ulatory filing. However, in Net NPA or bad loans were
car care brand Turtle Wax vigorate the city’s financial dis- bility as a result of Beijing’s pro- to attract overseas firms by pro- “We are aware of the incen- the top spot as a financial hub, the preceding December down at 3.13 per cent from
has announced its entry trict Yeouido. posed national security law. viding free office space, patent tives that overseas big play- it’s understandable that Hong quarter the bank logged a prof- 3.75 per cent a year earlier.
into the Indian market. But the city’s progress in While Tokyo wants to cap- and regulation consulting ers look forward to. We’d like Kong’s big players are fleeing it of Rs 247.16 crore. The bank has reported
The brand has launched its realising these years-old italise on the opportunity to and network-building via the to lower corporate taxes as well, there. Singapore and Tokyo face Income in the quarter one loan account in the power
complete range of appear- dreams is being questioned replace Hong Kong, the for- Seoul fintech lab, located in but due to its location Seoul difficulties such as the small under review increased to and steel sector in consortium
ance products for both as its neighbouring rival Tokyo mer British colony ~ which has Yeouido,” said a government cannot provide better bene- market size and financial reg- Rs 6,334.37 crore from Rs lending of 33 lenders, under
four-wheelers and two- is making all-out efforts to pro- maintained its status as Asia’s official in charge of the city’s fits.” ulations, but they have sure- 5,537.47 crore in the corre- borrowal fraud category to RBI
wheelers for every sur- mote itself as an alternative leading financial centre for financial industry. Instead, the city will attempt ly emerged as prime alterna- sponding period of 2018-19, during second quarter of
face, including paintwork, to Hong Kong. decades ~ Seoul seems to Before the coronavirus to attract more financial play- tives,” an economics profes- the public sector lender said. 2019-20 and the amount of
wheels, tyres, upholstery According to the Financial lack solid, effective plans to pandemic hit, the city was gear- ers from abroad by opening sor at Yonsei University Sung In December quarter, the outstanding was Rs 854.92
and plastic, among others, Times, Tokyo ~ in cooperation entice professionals and insti- ing up to kick off its overseas a new office inYeouido in Octo- Tae-yoon said. income was Rs 6, 505.62 crore. crore as on 31 March 2020, it
said a Press release. SNS with its central government tutions wanting to relocate. investor relations events in the ber, tentatively named the THE KOREA HERALD/ANN The bank's provisions for said.

Sellers must show items’ Stocks rise on easing border tensions

country of origin on GeM
PRESS TRUST OF INDIA erGrid, Mahindra & Mahin- visionally close at 75.66 against
STATESMAN NEWS SERVICE and MSE Purchase Preference MUMBAI, 23 JUNE dra and Axis Bank. SENSEX JUMPS 519 POINTS the US dollar, following a rally
NEW DELHI, 23 JUNE Policies of the Centre. On the other hand, Reliance � The 30-share BSE
in domestic equity market
"GeM has taken this sig- Rising for the fourth straight Industries, Bharti Airtel and close at 10,471 and persistent foreign fund
The government today has nificant step to promote session, BSE benchmark the Maruti were the laggards. index settled 519.11 points. inflows.
made mandatory for sellers 'Make in India' and 'Aat- Sensex rallied over 519 points Positive cues from global
points, or 1.49 per Besides, an unstable US dol-
to enter the ''Country of Ori- manirbhar Bharat'," the min- today following reports that markets and sustained foreign
cent, higher at � The rupee appre- lar against major global cur-
gin'' while registering all new istry said in a statement. Indian and Chinese armies fund inflow kept investor sen-
35,430.43 points., ciated 37 paise to rencies also helped the rupee
products on government e- GeM has also enabled a reached a consensus to de- timent higher.
and provisionally close surge, forex dealers said.
marketplace (GeM). It has provision for indication of the escalate tensions on the bor- In a positive move, Indian at 75.66 against the At the interbank foreign
also mandated sellers who had percentage of local content der. and Chinese armies have � National Stock US dollar, following exchange market, the rupee
already uploaded their prod- in products. With this new fea- The 30-share BSE index set- arrived at a consensus to “dis- Exchange benchmark a rally in domestic opened strong at 75.86. Dur-
ucts before the introduction ture, now one can check the tled 519.11 points, or 1.49 per engage” from all friction points the Nifty surged equity market and ing the session the domestic
of this new feature on GeM ''Country of Origin'' as well cent, higher at 35,430.43 in eastern Ladakh at a 159.80 points, or persistent foreign unit swung between a high of
to update the country of ori- as the local content per- points, and National Stock marathon meeting of top mil- 1.55 per cent, to fund inflows 75.65 and a low of 75.89.
gin or their products shall be centage for all items. "More Exchange benchmark the itary commanders of the two It finally settled at 75.66
removed from GeM. The e- importantly, the 'Make in Nifty surged 159.80 points, or sides on Monday, official against the US dollar, regis-
marketplace is a special pur- India' filter has now been 1.55 per cent, to close at sources said. be taken forward by both the data showed. higher. tering a rise of 37 paise over
pose vehicle (SPV) under the enabled on the portal. Buy- 10,471 points. The talks were held in a sides, they said. On the global front, bours- International oil bench- its previous close of 76.03.
ministry of commerce and ers can choose to buy only Larsen & Toubro was the “cordial, positive and con- On a net basis, foreign es in Shanghai, Hong Kong, mark Brent crude futures rose The dollar index, which
industry which facilitates the those products that meet the top gainer in the Sensex pack, structive atmosphere” and it institutional investors bought Seoul and Tokyo ended on a 1.37 per cent to $43.67 per bar- gauges the greenback's
entry of small local sellers in minimum 50 per cent local soaring around 7 per cent, fol- was decided that modalities equities worth Rs 424.21 crore positive note. rel. strength against a basket of six
public procurement, while content criteria," reads the lowed by Bajaj Finance, for disengagement from all in the capital market on Mon- Stock exchanges in Europe Meanwhile, the rupee today currencies, fell 0.13 per cent
implementing 'Make in India' release. IndusInd Bank, NTPC, Pow- areas in eastern Ladakh will day, provisional exchange were also trading significantly appreciated 37 paise to pro- to 96.91.