Note ban impact on loan, deposit growth significant: Moody's

February 23, 2017

New Delhi, Feb 23: Demonetisation has significantly impacted credit demand and deposit growth of banks but had a mixed effect on asset quality in the third quarter of current fiscal, Moody's Investors Service said today.

MoodyThe cancellation of legal tender of 500 and 1,000 rupee notes has led to a slowdown in economic activity that weighed on demand for credit among companies and retail borrowers during the October-December quarter, it said.

"Demonetisation has significantly impacted credit demand and deposit growth but effect on asset quality has been mixed; retail payment systems have benefited. While commentary from the banks points to a rise in activity in January 2017, it is still below pre-demonetisation levels," Moody's said.

In its report, Moody's said the slowdown in loan growth may also have been in part due to loan repayments using the demonetised currencies.

Deposits at rated banks grew by 13 per cent year-on-year in the December quarter, from 6 per cent in the preceding quarter, but as cash availability increases and restrictions on withdrawals go, a moderation will occur, it said.

It also said that retail payment systems, such as card transactions and mobile wallets, saw a significant uptick in activity post-demonetisation, but "the transition to a cashless environment will take time".

The government had on November 8, 2016, announced junking of 500 and 1,000 rupee notes, which accounted for 86 per cent of the currency in circulation. This led to a slowdown in economic activity and weighed on demand for credit among companies and retail borrowers during the December quarter.

"Banks have experienced significant inflows into their deposit base as customers deposit their existing holdings of the demonetised notes. However, we maintain our view that the level of bank deposits will increase by only around 1-2 per cent in the near-term, given the substantial role of cash in the Indian economy as a medium of transaction," Moody's said.

Economic activity suffered in November and December 2016 as households and businesses experienced liquidity shortages following demonetisation.

"We expect asset quality in the quarter ending March 2017 to show more adverse trends as the quarter ended December 2016 may have benefited from the fact that only two of the three months were affected by demonetisation. Nevertheless, it seems that the impact on asset quality from demonetisation will be manageable for the banking sector," Moody's said.

As on February 3 2017, total currency in circulation was around Rs 9.8 lakh crore, which is about 58 per cent of the level seen before demonetisation.

"The amount of currency in public circulation continues to increase steadily, indicating that the limiting factor is the supply of currency rather than the demand for it," Moody's added.

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Agencies
March 3,2020

Facebook on Monday launched a new consumer marketing campaign in India titled 'More Together'. India is the first country in the Asia Pacific region where such a campaign is being rolled out.

It is also the first time that Facebook is rolling out a 'high decibel campaign of this stature in India', the company said in a statement.

It is also the first time that Facebook is rolling out a 'high decibel campaign of this stature in India', the company said in a statement.

"India is at the heart of Facebook and one of our focus areas this year is to tell the exciting story of a service that is deeply embedded in the fabric of India," said Ajit Mohan, Vice President and Managing Director, Facebook India.

The campaign would have multiple campaigns over the next few weeks in eight languages and the one will be set in the context of Holi.

Facebook in 2019 introduced a new company logo to further distinguish the company from the Facebook app.

The company recently announced the appointment of Avinash Pant as the Marketing Director for India operations, to drive the consumer marketing efforts across the family of apps.

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Agencies
June 16,2020

Paris, Jun 16: Increasing numbers of readers are paying for online news around the world even if the level of trust in the media, in general, remains very low, according to a report published Tuesday.

Around 20 percent of Americans questioned said they subscribed to an online news provider (up to four points over the previous year) and 42 percent of Norwegians (up eight points), along with 13 percent of the Dutch (up to three points), compared with 10 percent in France and Germany.

But between a third and a half of all news subscriptions go to just a few major media organisations, such as the New York Times, according to the annual Digital News Report by the Reuters Institute.

Some readers, however, are also beginning to take out more than one subscription, paying for a local or specialist title in addition to a national news source, the study's authors said.

But a large proportion of internet users say nothing could convince them to pay for online news, around 40 percent in the United States and 50 percent in Britain.

YouGov conducted the online surveys of 40 countries for the Reuters Institute in January, with 2,000 respondents in each.

Further surveys were carried out in six countries in April to analyse the initial effects of COVID-19.

The health crisis brought a revival of interest in television news -- with the audience rising five percent on average -- establishing itself as the main source of information along with online media.

Conversely, newspaper circulation was hard-hit by coronavirus lockdown measures.

The survey found trust in the news had fallen to its lowest level since the first report in 2012, with just 38 percent saying they trusted most news most of the time.

However, confidence in the news media varied considerably by country, ranging from 56 percent in Finland and Portugal to 23 percent in France and 21 percent in South Korea.

In Hong Kong, which has been hit by months of sometimes violent street protests against an extradition law, trust in the news fell 16 points to 30 percent over the year.

Chile, which has had regular demonstrations against inequality, saw trust in the media fall 15 percent while in Britain, where society has been polarised by issues such as Brexit, it was down 12 points.

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Agencies
July 25,2020

In a study conducted in 117 countries, researchers have found that the world is experiencing the most dramatic reduction in the seismic noise (the hum of vibrations in the planet's crust) in recorded history due to global COVID-19 lockdowns.

Measured by instruments called seismometers, seismic noise is caused by vibrations within the Earth, which travel like waves and the waves can be triggered by earthquakes, volcanoes, and bombs - but also by daily human activity like travel and industry.

This quiet period was likely caused by the total global effect of social distancing measures, closure of services and industry, and drops in tourism and travel, the study published in the journal Science, reported.

The new research, led by the Royal Observatory of Belgium and five other institutions around the world including Imperial College London (ICL), showed that the dampening of 'seismic noise' caused by humans was more pronounced in more densely populated areas.

"Our study uniquely highlights just how much human activities impact the solid Earth, and could let us see more clearly than ever what differentiates human and natural noise," said study co-author Stephen Hicks from ICL in the UK.

For the findings, the research team looked at seismic data from a global network of 268 seismic stations in 117 countries and found significant noise reductions compared to before any lockdown at 185 of those stations.

Researchers tracked the 'wave' of quietening between March and May as worldwide lockdown measures took hold.

The largest drops in vibrations were seen in the most densely populated areas, like Singapore and New York City, but drops were also seen in remote areas like Germany's the Black Forest and Rundu in Namibia.

Citizen-owned seismometers, which tend to measure more localised noise, noted large drops around universities and schools around Cornwall, UK and Boston, US - a drop in noise 20 per cent larger than seen during school holidays.

The findings showed that countries like Barbados, where lockdown coincided with the tourist season, saw a 50 per cent decrease in noise.

"The changes have also given us the opportunity to listen in to the Earth's natural vibrations without the distortions of human input," the study authors wrote.

Earlier in April, a study published in the journal Nature, reported at least a 30 per cent reduction in that amount of ambient human noise since lockdown began in Belgium.

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