No runway expansion at Mangaluru Airport for now

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On Thursday, the Reserve Bank of India superseded the board of troubled private sector lender YES Bank and imposed a 30-day moratorium on it “in the absence of a credible revival plan” amid a “serious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

During last couple of decades we have been witnessing the coming up of various statues in different parts of the country. There is diverse political logic and different set of political tendencies for erecting these statues. When Mayawati was UP CM, she got multiple of her own statues made, in addition to many statues of major dalit icons, irrespective of the criticism against that act. As per her strategy it was a symbol of identity of dalit assertion. The biggest statue to come up was that of Sardar Vallabh Bhai Patel, a lifelong Congressman, whom RSS combine is trying to appropriate. This statue of Unity was ‘Made in China’. The clever trick was that the same forces were behind this statue, which was banned by Patel in the aftermath of Gandhi murder. Interestingly while currently BJP is blaming Congress for Partition of India, ironically it was Sardar Patel who was in the committee which gave final stamp of approval for the partition of India.

There is also a talk in UP, where the Ram temple campaign yielded rich electoral dividends for BJP, to have tallest statue of Lord Ram in Ayodhya. In a state where children are dying in hospitals due to lack of Oxygen cylinders, a huge budgetary allocation will be required for such project. While on statues one should also remember that in Maharashtra a tall statue of Chatrapati Shivaji Maharaj is underway in Arabian Sea, near Mumbai. Only few voices of protest against it came up, e.g. that of renowned journalist, now, MP, Kumar Ketkar, whose house was vandalised for his opposing the move on the grounds that same massive amount can be utilized for welfare-development activities in the state.

On the back of this comes a comparatively low budget 114 feet tall statue of Jesus Christ in Karnataka, in Kappala hills Harobele village, where Christian pilgrims have been thronging from last several centuries. The land for this has been donated by Congress leader Shivaprasad and his brother, a Congress MP. It is planned to be carved out from a single rock. The plan of this statue is being opposed by those who have been behind most of the statue projects so far. Hindu Jagran Vedike, VHP, RSS are up in arms saying that they will not let this come up. There are various arguments cited for this opposition. It is being said that this was a place of worship of Lord Munnieshwara (a form of Lord Shiva).

More than this it is being argued that Shivakumar is trying to please his Italian boss in the party. Also that this will bring back the period of slavery of foreign rule, the colonial rule of British. As such this opposition is more in tune with the ideology of RSS combine, which has been for a statue here and a statue there. Their politics regards Christianity as a ‘foreign religion’! It is true that in Citizenship Amendment Act, they have not excluded Christianity while other religion, which they regard as ‘Foreign’ i.e. Islam. Here they are using a different logic, that the countries from where persecuted minorities are coming, are Muslim countries, Pakistan, Afghanistan and Bangla Desh.

In India the major targeting by RSS combine has been against Muslims, but Christians are also not spared. Starting in the decade of 1980, an intense propaganda has been going on that Christian Missionaries are converting. As RSS affiliate Vanvasi Kalyan Ashram became active in Adivasi areas, the likes of Swami Aseemanand, Swami Laxmanand and followers of Aasaram bapu spread out in Tribal areas. They started their programs to popularise Shabri and Hanuman, with congregations like Shabri Kumbh being regularly organized in these areas. The aim was to Hinduize the people in those areas.

The first major anti Christian violence came up in the ghastly form of burning alive of Pastor Graham Steward Stains along with his two minor sons Timothy and Philip. RSS affiliate Bajrang Dal's Dara Siingh aka Rajendra Pal was behind this and he is serving the life term for that. At the same time Wadhva Commission was appointed to investigate this crime which shook the country and President K.R. Narayan termed it as the one belonging to the inventory of the black deeds of human history.

The Wadhva commission report pointed out that there was no statistical significant change in the region where the pastor was working. Similarly the national figures tell us that the Christian population, if at all, has marginally declined in last five decades as per the census figures. They stand like this, percentage of Christians in population, 1971-2.60, 1981- 2.44, 1991-2.34, 2001-2.30 and 2011-2.30. There are arguments that some people are converting to Christianity but are not revealing their religion. This may be true in case of miniscule percentage of dalits, who may not reveal there conversion, as they stand to loose reservation provisions if they convert.

The anti Christian violence is scattered and is below the radar most of the places. There was massive valence in Kandhamal, Orissa, when on the pretext that Christians have murdered Swami Laxmananand, a massive violence was unleashed in 2008. On regular basis prayer meetings of Christians are attacked on the pretext that these are attempts at conversion. While there is a huge demand for the schools and colleges run by Christian groups, in Adivasis areas and remote areas the work of Swamis is on.

Now the trend is to dump Christian traditions. Since Ramnath Kovind became President, the usual practice of Carol Singers visiting Rashtrapati Bhavan has been stopped. In the army retreat so far ‘Abide with me’ by Scottish poet, Henri Francis Lyte, a Christian song, a favourite of Gandhi, has been dropped. The Christian minorities have perceived the threat in various forms. Currently they are as much part of the protests against CAA, NPR and NRIC as any other community.

While statues and identity issues cannot have primacy over the social development issues, it cannot be selective. To oppose Jesus Christ statue while spending fortunes for other statues is a part of the agenda of RSS combine, which is unfolding itself in various forms. opposition to Jesus Christ statue being yet another step in the direction.

Paris, Jun 28: More than 10 million cases of the new coronavirus have been officially declared around the world, half of them in Europe and the United States, according to an AFP tally on Sunday based on official sources.

At least 10,003,942 infections, including 498,779 deaths, have been registered globally.

Europe remains the hardest hit continent with 2,637,546 cases including 195,975 fatalities, while the United States has 2,510,323 infections including 125,539 deaths.

The rate of infections worldwide continues to rise, with one million new cases recorded in just six days.

The tallies, using data collected by AFP from national authorities and information from the World Health Organization (WHO), probably reflect only a fraction of the actual number of infections.

Many countries are testing only symptomatic or the most serious cases and some do not have the capacity to carry out widescale testing.