India takes up issue of work visas denial in Maldives, warns it can hit tourism

Agencies
July 5, 2018

New Delhi, Jul 5: India is taking up with Maldives the cases of denial of work visas to Indians, official sources said on Wednesday. There were reports that hundreds of Indians have been denied work visas by Maldives and several employers in the island nation have informed applicants that work visas for Indians were not being issued at present.

The sources told news agency that India was also engaged in talks with Maldives over the issue of stationing of two naval helicopters in that country. India had gifted two "Dhruv" advanced light helicopters to Maldives and 'Letters of Exchange' (LoE) for both the choppers have expired.

The Maldivian government has indicated to India that it was not keen on renewing the LoE. One chopper is operated by the Coast Guard and the other is operated by the Indian Navy.

The LoE for advanced light helicopter at Addu had expired a few months ago, while the validity of LoE for the one stationed at Laamu atoll lapsed on June 30, military sources said.

Maldives has also not renewed the visas of the Indian military personnel stationed with the choppers.

On the visa issue, the official sources said there have been more than 100 complaints and there are also handouts saying that Indians should not apply.

"We are doing whatever is necessary to persuade them, to explain to them, to work with them, that those visas are issued. The denial of visa cannot be countered by any forceful intervention.

"What can be done, we are doing. We are also working with other countries to suggest that it will affect tourism arrivals into Maldives," one of the sources said.

The source said the Maldivian side has responded by saying that they have issued several visas in the last two or three months, "but the facts are different".

At the end of the day, it is still the sovereign right of any government to decide who will or will not stay in the country, the source said.

The source said India was hoping that international pressure will pursue President Abdulla Yameen to open a dialogue with the opposition and it was "keeping the situation under observation".

The security of Indian nationals or any other very vital security has not been affected to a point where the government of India feels that its national security is under threat, the source said.

India has made its position clear that what is happening in the Maldives is of disquiet to it as a SAARC country and as a neighbour, the source said.

The political process should be resumed and the intimidation of the judiciary and the media should be stopped, the source said, adding that people-to-people contacts should not be hampered.

The source also said reports about India reducing the exports of essential goods to Maldives was not correct.

"It is clear that if they (Maldives) want to lift more (essential commodities) they are welcome to lift more, and the government of India will facilitate it," the source said.

India's ties with Maldives nosedived after it criticised the Yameen government for imposing a 45-day emergency in the archipelago nation earlier this year.

During the crisis, India had ignored calls for military intervention from the opposition parties in the island nation.

Meanwhile, the source said the first general assembly of the International Solar Alliance was expected to be held in the last quarter of this year before the climate meet COP 24.

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News Network
May 21,2020

New Delhi, May 21: Prime Minister Narendra Modi on Thursday paid tributes to Rajiv Gandhi on his death anniversary.

Former prime minister Gandhi was assassinated on this day in 1991 in Tamil Nadu's Sriperumbudur by a suicide bomber during an election campaign.
 
"On his death anniversary, tributes to former PM Shri Rajiv Gandhi," Modi tweeted.

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Agencies
January 23,2020

Jammu, Jan 23: The National Investigation Agency (NIA) has brought the disgraced Deputy Superintendent of Police (DSP) Davinder Singh to Jammu for investigations.

According to sources, Davinder Singh has been brought on a transit remand. A formal remand from the NIA court for interrogation will be taken on Thursday.

On Wednesday, fresh raids were carried out by the NIA at Singh's residences in Srinagar.

Singh was caught while transporting two militants, Naveed Babu and Rafi Ahmed, and a lawyer Irfan Ahmed in a vehicle to Jammu on January 11.

According to sources the two militants and the lawyer had plans to travel to Pakistan after reaching Jammu.

The case was transferred to the NIA after initial investigation by the Jammu and Kashmir Police.

Singh has been dismissed from the service and the Jammu and Kashmir administration on Monday forfeited the commendation medal and certificate awarded to him.

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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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