Black flag protests in Tamil Nadu against PM's Madurai visit

New Delhi, Mar 29: The total confirmed coronavirus cases in India rose to 979, including 48 foreigners, according to the Ministry of Health and Family Welfare on Sunday.
There are 867 active cases of the disease as of Sunday, out of the total confirmed cases, while 87 persons have also been cured and discharged or migrated.
The number of deaths due to the infection rose to 25.
Maharashtra and Kerala, with 186 and 182 cases, have two of the highest number of positive cases in the country, with Maharashtra also recording six deaths due to the disease.
The Central government has taken many stringent measures to prevent the further spread of the disease with a 21-day nationwide lockdown being imposed.
The disease which originated from Wuhan, China has so far close to 6 lakh reported cases from around the world with more than 25 thousand deaths being reported due to it, as per World Health Organisation on March 28. 

New Delhi, Mar 6: Shares of YES Bank and State Bank of India came under huge selling pressure on Friday as developments unfolded regarding SBI picking stake in the private lender. Shares of the lender hit record low of Rs 5.55, plunging 85 per cent, and were trading below its previous low of Rs 8.16 hit on March 9, 2009.

SBI, on the other hand, slumped 11 per cent to Rs 257.35 on the BSE. The benchmark S&P BSE Sensex was trading with a cut of over 3 per cent at 37,251.37 level.

In the past three months, share price of the private lender has plunged 41 per cent, while the state-owned lender has slipped 14 per cent. In comparison, the S&P BSE Sensex has dipped 5.6 per cent till Thursday.

On Thursday, the Reserve Bank of India superseded the board of troubled private sector lender YES Bank and imposed a 30-day moratorium on it “in the absence of a credible revival plan” amid a “serious deterioration” in its financial health.

During the moratorium, which came into effect from 6 pm on Thursday, YES Bank will not be allowed to grant or renew any loans, and “incur any liability”, except for payment towards employees’ salaries, rent, taxes and legal expenses, among others.

This is the first time that a bank of this size will be put under a moratorium by the RBI.

“The financial position of YES Bank had undergone a steady decline “largely due to inability of the bank to raise capital to address potential loan losses and resultant downgrades, triggering invocation of bond covenants by investors, and withdrawal of deposits,” RBI said in a statement.

“After the moratorium, the next step will be to infuse to money and keep the bank afloat. So from shareholders’ point of view, the future is certainly hazy as the capital requirement is huge. The good part, however, is that the RBI has stepped in and depositors don't have to worry,” says Siddharth Purohit, a research analyst at SMC Securities.

Meanwhile, analysts at Nomura believe that placing the Bank under moratorium implies that equity value in the bank would be negligible, and that the chances of private capital participating in future capital raising plan are near zero.

"Any resolution for Yes Bank is more proposed from the perspective of deposit holders and systemic stability, and not from the perspective of Yes Bank equity investors or even perpetual bond holders," they wrote in a note dated March 6.

In another development, SBI’s Board Thursday gave in-principle approval to consider an “investment opportunity” in YES Bank, even as it said “no decision had yet been taken to pick up stake in the bank”.

According to a  report, highly-placed sources indicated a rescue plan involving SBI and Life Insurance Corporation of India (LIC) was being discussed and an announcement in this regard might be made soon.

“While the finer details of the deal are being worked out, it is anticipated that both SBI and LIC together will take a 51 per cent stake in the bank, with a one-year lock-in period,” the report said.

Most analysts believe it is a positive step for the Indian financial sector as the government has tried to avoid a repeat of IL&FS-like crisis.

“The move is a positive step for the financial sector as a whole. By this, the government has tried to avoid a repeat of IL&FS-like crisis and has saved the depositors,” said AK Prabhakar, Head of Research at IDBI Capital. While we know that YES Bank has a huge pile of bad loans, SBI is the only bank that has the capacity to absorb it, he added.

However, the valuation at which YES bank would be taken over remains a cause of concern.

Global brokerage firm JP Morgan Thursday cut its target price for YES Bank on Thursday to Rs 1 per share, taking into account the potential fall in the lender’s net worth due to stressed assets.

“We believe forced bailout investors will likely want the bank to be acquired at near-zero value to account for risks associated with the stress book and likely loss of deposits. We think the bank will need to be recapitalised at nominal equity value and could test dilution of additional tier 1 (AT1) capital. We remain underweight and cut our target price to Rs 1 as we believe net worth is largely impaired,” JP Morgan said in a note.

Global brokerage firm Nomura estimates a need of Rs 25,000-44,000 crore and adjusted for Rs 7,400 crore of current coverage, if the current stress of Rs 65,000-70,000 crore faces 70 per cent loss given default (LGD).

"It implies Rs 18,000-37,000 crore needed for provisioning against the current net worth of Rs 25,700 crore Also, to run as going concern, the bank would require over Rs 20,000 crore of CET-1 capital as well," the note said.

YES Bank has registered slippages of Rs 12,000 crore so far in FY20, while it has placed Rs 30,000 crore of loan assets under the watch list. Its deposits stood at Rs 2.09 trillion on September 30, 2019, while its advances totalled Rs 2.24 trillion. The bank has delayed publishing its December quarter results by a month to March 14.

New Delhi, Mar 26: Despite repeated assurances by the Centre and state government of no shortage of food and essential services in Delhi, many daily wage earners have started fleeing the national capital on foot to return to their native villages in nearby Uttar Pradesh and other states because of the hardships being faced by them.
Most daily wage earners who are fleeing have complained that they are doing so because they will die of hunger due to lack of resources at their disposal.
"I am going to Azamgarh, my native place which is more than 800 kilometers from here. We have started walking towards our village. On the roads, if we get some vehicles then it will be all right otherwise we will continue on foot. I used to work in the construction sector but all work has stopped, we therefore have no other means to buy our rations. Atleast, food is guaranteed in our homes," Ghanshyam, a daily wage earner, told ANI here.
Rani, another daily wage earner, who was fleeing Delhi along with her family said, "Who would want to leave on foot, but what other options do we have. Our children will die of hunger, even if they are saved from the disease. That is why we are leaving."
While the government has been assuring that it will provide food and other essentials to the low-income groups, the people complained that they are yet to receive any help.
The departing of people has started despite repeated warnings by governments to prevent the influx of persons living in other states to curtail the spread of coronavirus.
Prince, who used to reside in Mongolpuri area of Delhi, said, "If we continue to stay the landlord will pester us for rent. The prices of all commodities are rising with each passing day, this way we will have nothing left to survive. We did not get any help from the government. I am, therefore, returning to Kasganj, which is close to 300 kilometres from Delhi. We will at least get food served twice a day in the village, nobody is offering us even water here."
Earlier on Tuesday, Delhi Chief Minister Arvind Kejriwal had announced Rs 5,000 for each construction worker under Construction Workers Welfare Board Fund.
Addressing a video conference here, he said, "The Delhi government will give Rs 5,000 to each construction worker as their livelihood has been affected due the outbreak of coronavirus."
He also said that the number of night shelters in the city has been increased and more food is being distributed to homeless people.
He also said that due to curfew, several people were not able to get food, and urged the public to send such people to the nearest shelters of the Delhi government, where food was being arranged.