123 go: FDI vote gives UPA the reforms edge

December 8, 2012
maya

New Delhi, December 8: Eventually, it turned out to be a stroll rather than the tough climb it was billed to be. The Congress humbled the opposition in the vote on allowing FDI in retail in the Rajya Sabha by a convincing margin of 21 votes: a scoreline which was facilitated by desertions from the opposition ranks and support from all but one of the Independents.

The victory — 123 votes for FDI to 102 against —is likely to be a spur for the government to seek the passage of more reforms legislations. "Certainly, we are going to bring in more legislation in the coming weeks in Parliament (financial bills) and we will be engaging all political parties on it," parliamentary affairs minister Kamal Nath told reporters after the Rajya Sabha vote.

SP, BSP bail out government again

The debate for FDI in retail in Rajya Sabha carried the trademark stamp of the Congress's fabled "management" skills. V Maitreyan of the AIADMK, who initiated the debate, called the 123-102 scoreline a victory of Kamal Nath, the parliamentary affairs minister, and the House, otherwise deeply divided, agreed.

The floor management saw three of the five TDP members abstaining, along with two belonging to the NDA — Shiv Sena's R K Dhoot and Jharkhand Mukti Morcha's Sanjeev Kumar. The Congress also got Upendra Kushwaha, a JD(U) rebel who risks losing his membership under the Anti-Defection Act, to vote for the government.

The Samajwadi Party and the BSP, bitter rivals in UP, were again united in bailing out the government, disregarding their anti-Congress posture. Fifteen members of the BSP, which is keen to avoid Lok Sabha polls, voted against the opposition, while those belonging to the SP, which would not wish Mayawati to be the government's principal rescuer, walked out in time to facilitate the government's task.

The Congress also bagged the support of all Independents in the House, excepting A V Swamy. Vijay Mallya, Rajeev Chandrasekhar, Mukesh Ambani's aide Parimal Nathwani, Mohammad Adeeb, Ahmad Saeed Malihabadi and SP rebel Amar Singh all went the same way.

Such was the Congress's confidence that minister of state for parliamentary affairs Rajeev Shukla sought a recount when the electronic scoreboard showed that the government had eked out a narrow victory with 123-109 margin. The slim gap suggested that the government would have lost had the BSP not voted for it. The revised tally validated Shukla's confidence. "This shows that we would have won even without BSP's vote," a triumphant Shukla said, proclaiming the result as reflecting the yearning for stability and faster economic reforms.

The presence of Mallya, who NDA assumed would stay abroad, and the preference of Chandrasekhar, whom the BJP had banked upon, was a tribute to the painstaking work the Congress put in to escape what had threatened to be a big political embarrassment. There was a strong element of intrigue about the absence of three TDP members, with political circles wondering whether senior party leader Devender Goud and leader of the party in the House Y S Chowdary, along with Sudharani Gundu, acted without a wink from party leader N Chandrababu Naidu.

Congress sources denied, although not very convincingly, efforts made by Kamal Nath to play on the pro-reforms instincts of Naidu who has diverse business interests.

Stressing that more members had criticized FDI and, therefore, the outcome could not be called an endorsement of government's policy to let in foreign retailers, Maitreyan said, "It is not commerce minister Anand Sharma but parliamentary affairs minister Kamal Nath who has won. If the government wins it is going to be the victory of management and not the policy because the majority of speakers in the House have opposed the policy."

He also said the policy would be reversed after Congress's loss in the next Lok Sabha election. Former minister Ambika Soni rubbished the assertion. "Let the nine-member party first get the numbers to form the government," she said.

Nath had on Wednesday impressed upon Mayawati that government's defeat in Rajya Sabha would set in motion a trend leading to Lok Sabha elections at a time when the BSP is still trying to recover from the drubbing in the UP assembly polls.

Although BSP's switch to the government camp had settled the issue on Thursday itself, Congress left nothing to chance with Prime Minister Manmohan Singh, according to Congress sources, himself working the phone.

NCP's Janardan Waghmare, who is bed-ridden because of a fractured bone and had been counted out, was brought in on a stretcher and voted for the government from the lobby. Another ailing member, Congress's N Janardhana Reddy, arrived on a wheel chair, helped by special arrangements put in place by Andhra Pradesh chief minister Kiran Reddy at Nath's behest.

Actrees Rekha, along with other Independent members, turned up to cast what leader of opposition Arun Jaitley had on Thursday called "thanksgiving vote".

In all, 10 members skipped the vote for various reasons. They include cricketer Sachin Tendulkar, JD(U)'s Vashista Narain Singh, BJD discard Pyari Mohan Mahapatra, Congress's ailing member Murli Deora and Lalhming Liana of Mizo National Front.

Earlier, while replying to the debate on FDI in multi-brand retail, commerce minister Sharma maintained that the move was essential for the country's growth and rejected the opposition's contention that it would hurt small retailers and farmers and harm the manufacturing sector.

Sharma accused the opposition of creating a scare over the issue and rejected Jaitley's contention that the measure would lead to India becoming a nation of sales boys and sales girls. "You have scared foreign investors who want to visit India," he said.


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News Network
February 26,2020

Mumbai, Feb 26: Observing that the violence in Delhi is akin to a "horror film" depicting the grim reality of the 1984 anti-Sikh riots, the Shiv Sena on Wednesday said the "bloodbath" has brought disrepute to the national capital like never before while US President Donald Trump was in India with the "message of love".

The editorial in party mouthpiece 'Saamana' lamented that Trump was welcomed in Delhi while there was bloodbath on the streets.

It further said that the violence could potentially spread the message that the Central government has failed to maintain the law and order situation in Delhi.

"Violence has erupted in Delhi. People are on the streets equipped with canes, swords, revolvers, blood is being spilled on the roads. Some horror film-like situation is being witnessed in Delhi, which depicts the grim reality of the 1984 riots," the Sena said.

It further said the BJP was still blaming the Congress for the deaths of hundreds of Sikhs in the violence that was erupted after assassination of then Prime Minister Indira Gandhi.

It needs to be unravelled who is responsible for the current riots in Delhi, the Sena said while referring to the "language of threats and warning used by some BJP leaders".

"The national capital was burning at a time when Prime Minister Narendra Modi and visiting US President Trump were holding talks.

"It does not augur well that Trump was welcomed in Delhi with the horror film of violence, bloodbath on the streets, screams of people, and tear gases. Trump saheb came to Delhi with a message of love, but what unfolded before him? 'Namaste' in Ahmedabad and violence in Delhi. Never before Delhi was defamed like this," the editorial said.

Trump had begun his February 24-25 India visit from Ahmedabad in Gujarat.

Seventeen people have died so far and over hundred were injured in the violence that has gripped several parts of north east Delhi over the Citizenship Amendment Act (CAA) since Sunday.

Attacking the Central government over reports that the violence was timed with Trump's visit, Sena said, "the Union Home Ministry has alleged that a conspiracy was hatched to defame India internationally by triggering the violence during Trump's visit to the national capital.

"The Home Ministry not knowing about the conspiracy behind the violence over the CAA is detrimental to national security. There is no problem in controlling the riots with the same courage with which Article 370 and 35A were scrapped," the editorial said.

It further said the anti-CAA protest at Shaheen Bagh in Delhi was yet to be called off yet despite the Supreme Court appointing mediators.

"It is being said that the violence sparked off after some BJP leaders talked the language of threats and warning. So, did someone want the peaceful agitation (at Shaheen Bagh) to acquire the present form of riots? (They) could have waited for at least Trump to leave the country," the Sena said.

The Uddhav Thackeray-led party also questioned the timing of the riots, which are occurring days after the results of the Delhi assembly polls.

"It is mysterious that the violence broke out days after the BJP lost the Delhi assembly elections. The BJP lost and now this is the condition of Delhi," the Sena said.

The Uddhav Thackeray-led party, a former ally of the BJP, now shares power in Maharashtra with the NCP and the Congress.

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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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News Network
February 1,2020

New Delhi, Feb 1: India has uplifted 271 million people out of poverty, Finance Minister Nirmala Sitharaman said on Saturday.

In her second Budget presentation, the finance minister said the Budget for 2020-21, is woven around aspirational India, economic development and caring society.

The government aims to achieve seamless delivery of services through digital governance, she added.

"We shall strive to bring ease of living for every citizen," Sitharaman said.

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