Houthi missile attack an act of war by Iran; we have right to respond: Saudi Arabia

Agencies
November 7, 2017

Jeddah, Nov 7: Senior officials of Saudi Arabian government have termed the recent missile attack on Riyadh by Houthi rebels as an act of war by Iran, which according to them backs the rebels.

“The Kingdom reserves the right to respond in a timely manner to the hostile actions of the Iranian regime,” Saudi Foreign Minister Adel Al-Jubeir said.

“Iranian interventions in the region are detrimental to the security of neighboring countries and affect international peace and security. We will not allow any infringement of our national security.”

According to Saudi, Iran had supplied the ballistic missile which was fired into Saudi Arabia on Saturday night by Houthi rebels in Yemen. Saudi defense forces intercepted the missile and shot it down over King Khaled International Airport in Riyadh, and there were no casualties.

“Iran’s role and its direct command of its Houthi proxy in this matter constitute a clear act of aggression that targets neighboring countries, and threatens peace and security in the region and globally,” the Saudi-led coalition in Yemen said on Monday.

“Therefore, the coalition’s command considers this a blatant act of military aggression by the Iranian regime, and could rise to be considered as an act of war against the Kingdom of Saudi Arabia.

“The coalition command also affirms that the Kingdom reserves its right to respond to Iran at the appropriate time and in the appropriate manner.”

The Coalition Forces Command ordered the temporary closure on Monday of all air, sea and land ports in Yemen, except for aid workers and humanitarian supplies.

Col. Turki Al-Maliki, spokesman for the coalition, produced evidence on Sunday that Iran supplied weapons and technology to the Houthis, including ballistic missiles, launchers, aerial drones, land and naval mines and improvised explosive devices.

Bahraini Foreign Minister Sheikh Khaled bin Ahmed Al-Khalifa said Iran was a danger to the region, and the Harvard scholar and Iranian affairs expert Majid Rafizadeh said the international community should hold Tehran accountable.

“Compromises, concessions and diplomatic maneuvering don’t work with the Iranian regime,” he told Arab News. “Iranian leaders view concessions as weakness.”

He called for a combination of economic sanctions, political pressure and enhanced monitoring of Iran’s illegal activities. “Tehran’s exports and imports should be closely examined and restricted. The US, EU and Arab powers should form a military front, like NATO, as a bulwark against the Iran regime.”

Rafizadeh said Iran was the leading state sponsor of terrorism. “The UN should invoke UN Resolution 2231 and immediately punish Tehran for violating it. Otherwise, Tehran’s belligerent behavior will continue to grow. This can turn the regional conflict into a conflagration.”

UN Security Council Resolution 2231 adopted the 2015 Iranian nuclear deal, but also imposed restrictions on Iran’s use of some ballistic missiles.

Thomas Mattair, executive director of the Middle East Policy Council in Washington, told Arab News: “Iran should not expect to be able to facilitate attacks on Saudi Arabia without paying some consequences.”

Dr. Hamdan Al-Shehri, a Saudi political analyst and international relations scholar in Riyadh, said the international community should have prevented Iran from creating havoc in the region.

“Things would not have reached this pass if the world community had taken measures against Iran and its arming of militias such Hezbollah and the Houthis,” he told Arab News. “The world’s inaction led Iran to believe that it can basically get away with murder.”

He condemned Iran for first attacking Makkah in July, and now Riyadh. “They want to kill innocent people and spread terror; this is their only business.”

The world community, and specifically the US and Russia, must pressurize Iran to give up its hostility to Arab countries, Al-Shehri said. “Now is the time to act.”

Al-Shehri said the missile attack on Riyadh was a “declaration of war” on Saudi Arabia.

“Saudi Arabia will not sit idle and will not wait for the international community to do nothing,” he said. “Foreign Minister Adel Al-Jubeir has made it clear that Saudi Arabia, in coordination with its Arab allies, reserves the right to defend its sovereignty and its people.”

Al-Shehri said all options were on the table and all measures were being explored. “The Saudi leadership will decide what option and measures to go for and when,” he said. “One thing is clear, this Iranian-Hezbollah-Houthi provocation and attack will not go unpunished.”

Among the options, he said, was directly confronting Iran. “A fitting Saudi response will come at a time and place of its choosing.”

David Pollack, a scholar at the Washington Institute for Near East policy, said Saudi Arabia “generally has a valid case. The Arab coalition and its international partners, including the US, should intensify maritime and land interdiction efforts, including via Oman.”

Aaron David Miller, vice president for new initiatives and Middle East program director at the Woodrow Wilson Center for International Scholars, speculated that Saudi Arabia had reached a “firm understanding” with the US that should tensions with Iran escalate, “the US will be there to support” the Kingdom.

King Salman and President Donald Trump spoke by phone on Saturday and discussed the Houthi missile attack and Iran’s involvement in the region.

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News Network
March 6,2020

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.

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Agencies
July 21,2020

New Delhi, Jul 21: The Centre has written to all states and union territories warning against the use of N-95 masks with valved respirators by people, saying these do not prevent the virus from spreading out and are "detrimental" to the measures adopted for its containment.

The Director General of Health Services (DGHS) in the Ministry of Health, in a letter to the Principal Secretaries of health and medical education of states, said it has been observed that there is "inappropriate use" of N-95 masks, particularly those with valved respirators, by the public other than designated health workers.

The DGHS referred to the advisory on the use of homemade protective cover for face and mouth available on the website of the Ministry of Health.

"It is to bring to your knowledge that the use of valved respirator N-95 masks is detrimental to the measures adopted for preventing the spread of coronavirus as it does not prevent the virus from escaping out of the mask. In view of the above, I request you to instruct all concerned to follow the use of face/mouth cover and prevent inappropriate use of N-95 masks," DGHS Rajiv Garg said in the letter.

The government had in April issued an advisory on the use of homemade protective cover for face and mouth, asking people to wear it, particularly when they step out of their residences.

The advisory stressed such face covers must be washed and cleaned each day, as instructed, and stated that any used cotton cloth can be used to make this face cover.

The colour of the fabric does not matter but one must ensure that the fabric is washed well in boiling water for five minutes and dried well before making the face cover. Adding salt to this water is recommended, it said.

It also listed the procedures of making such homemade masks, asking to ensure it fits the face well and there are no gaps on the sides.

It urges people to wash hands thoroughly before wearing the face cover, switching to another fresh one as the face cover becomes damp or humid, and never reusing it after single use without cleaning it.

"Never share the face cover with anyone. Every member in a family should have separate face cover," the advisory stated.

India's COVID-19 case tally crossed the 11-lakh mark on Monday, while the total number of recovered patients increased to over seven lakh, according to Union health ministry data.

The death toll due to the disease rose to 27,497 with 681 fatalities reported in one day.

The ministry data updated at 8 am on Monday showed that a record single-day jump of 40,425 COVID-19 cases had taken the total number of cases to 11,18,043.

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News Network
January 27,2020

New Delhi, Jan 27: The government on Monday issued the preliminary information memorandum for 100 per cent stake sale in national carrier Air India. As part of the strategic disinvestment, Air India would also sell 100 per cent stake in low cost airline Air India Express and 50 per cent shareholding in joint venture AISATS, as per the bid document issued on Monday.

Management control of the airline would also be transferred to the successful bidder.

The government has set March 17 as the deadline for submitting the Expression of Interest (EoI).

EY is the transaction adviser for Air India disinvestment process.

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