News This Week

Loan Recast Scheme To Extend Banks’ Asset Quality Uncertainty: Fitch

New Delhi, Aug 11: The Reserve Bank's scheme to allow lenders to recast loans will extend uncertainty over the banking sector's asset quality, Fitch Ratings said on Tuesday.

According to Fitch, the scheme could open a window for banks to build capital buffers while putting off full recognition of COVID-19 pandemic's impact on loan portfolios, but is reminiscent of a strategy adopted over 2010-2016 that delayed and exacerbated problems for banks.

“The RBI's recent proposal to allow banks to restructure many types of loans will extend uncertainty over the banking sector's asset quality,” Fitch said.

RBI Revises Guidelines For Core Investment Companies

Mumbai, Aug 13: The Reserve Bank on Thursday came out with revised guidelines for Core Investment Companies (CICs) under which the number of layers of CICs within a group will be restricted to two.

Under the revised norms, the CICs will be required to set up a Group Risk Management Committee and maintain a functional website containing basic information about themselves and the group.

The revised guidelines are based on the recommendations of a Working Group (WG) to set up under former corporate affairs secretary Tapan Ray to review the regulatory and supervisory framework for CICs, the RBI said.

As per the revised guidelines, if a CIC makes any direct/ indirect equity investment in another CIC, it will be deemed as a layer for the investing CIC.

70% Of Population Grapple With Fear And Anxiety Due To Pandemic: EY Report

New Delhi, Aug 13: Indian consumers are undergoing a fundamental change in behaviour driven by health, privacy, and hyper-localisation, says a report by consultancy firm EY.

Around 70 per cent of the population continues to grapple with "fear and anxiety" and the consumer mindset is largely "negative and cautious", according to a study 'Life in a pandemic' by EY.

"Due to the pandemic, people are becoming health conscious. About 80 per cent of the respondents are improving their eating habits, 56 per cent are engaging in housework and 33 per cent are doing workouts," it said.

Industries Must Look For Import Substitutes: Gadkari

New Delhi, Aug 14: Union Minister Nitin Gadkari on Friday said India can emerge as a great destination for countries that are searching for new alternatives for imports and exhorted industry players to tap this golden opportunity.

In a bid to boost 'self-reliant India' endeavour, Gadkari urged industry bodies like FICCI to identify the sectors heavily reliant on imports, particularly from China, and look for substitutes towards indigenous production for export growth from India.

"All sectors are facing crucial problems in the present situation due to COVID-19 complications. However, one of the blessings in disguise is that majority stakeholders are keenly interested to shift to new alternatives (for sourcing required products) and India can be a great destination for it," Gadkari said while interacting with MSME Member bodies and sectoral associations of FICCI.

NSE, IIM-Bangalore Join Hands To offer Online Investor Education

New Delhi, Aug 14: The National Stock Exchange (NSE) on Friday announced the launch of a digital learning platform for investor education.

The platform, an online investor education resource centre, has been developed jointly by NSE Investor Protection Fund Trust and IIM Bangalore.

It was launched by Sebi's executive director Nagendraa Parakh, in a virtual function held on Friday.

NSE said the Platform for investor education (PIE) imparts investor education in simple easy-to-understand video, audio, and other digital media formats. It has four learning modules each comprising a number of videos, audios, podcasts, deep-dives, and blog posts presenting the content using the latest animation and data visualization technology to actively engage different cohorts of potential investors, it added.

Compiled from Press Trust of India