VP Naidu warns Pak: India can give reply if attacked

New Delhi, Apr 14: Prime Minister Narendra Modi has announced the extension of a nationwide lockdown till May 3 to contain the spread of Covid-19 as the number of novel coronavirus cases surged past 10,000-mark on Tuesday. Hinting at partial relief, however, the Prime Minister said there could be some relaxations after April 20 in places where there is no hotspot.

Lockdown 2.0 will come into force from April 14 till May 3, PM Modi said in a televised address to the nation on Tuesday. The 19-day extension of the lockdown till May 3 is an attempt to contain the spread of novel coronavirus which has affected over 10,000 people in India. 

Even before #COVID19 cases touched 100, India made it compulsory for foreign returnees to remain in 14 days isolation. We imposed 21-day lockdown when we had 550 cases: PM Narendra Modi https://t.co/qi8MgG8qPQ

— ANI (@ANI) April 14, 2020
PM Modi said the Centre will closely monitor hotspots in states across India and added that those areas where there are no hotspots will get partial relief. “Till April 20, all districts, localities, states will be closely monitored, as to how strictly they are implementing norms. States where hotspots are contained could be allowed to resume some important activities, but with certain conditions,” the PM said.

The Prime Minister, in his address to India on Tuesday, began by lauding the efforts of Indians in the fight against novel coronavirus. “Covid-19 is spreading fast but India’s fight against coronavirus is going strong. It is because of your efforts that we are able to put up a fight,” the PM said as he thanked people for their co-operation.

PM Modi said, “People have gone through hardships to save India. I know how many difficulties you faced. I respectfully bow to the people of India for their sacrifice.”

The national lockdown first came into force from March 25 when the PM took an unprecedented measure in the fight against Covid-19. The lockdown was scheduled to end today.

STATES PUSHED FOR LOCKDOWN 2.0

The decision to extend the lockdown followed after a broad consensus emerged that the national lockdown should be extended by at least two weeks following a meeting between PM Modi and state chief ministers on Saturday.

It was reportedly after this meet with the Prime Minister that it was decided that the nationwide lockdown will be extended to tackle the spread of Coivid-19. The extension request from states came despite concerns that the shutdown will put millions out of work.

PM has taken correct decision to extend lockdown. Today, India’s position is better than many developed countries because we started lockdown early. If it is stopped now, all gains would be lost. To consolidate, it is imp to extend it

— Arvind Kejriwal (@ArvindKejriwal) April 11, 2020
"If it is stopped now, all gains would be lost. To consolidate, it is imp (important) to extend it," Arvind Kejriwal had written on Twitter after the meeting while he added that PM Modi had "taken (a) correct decision to extend (the) lockdown”.

Several states had, however, pushed for resumption of some economic activities like in the farming sector in areas where no cases of the novel coronavirus have been reported.

ALL THAT HAS HAPPENED TILL NOW

Prime Minister Narendra Modi first addressed an anxious nation on March 19 as the coronavirus pandemic emerged as a serious concern for the country. In his televised address, the PM asked the people to observe ‘Janata Curfew’ for March 22.
The Prime Minister urged Indians to remain indoors as much as possible as he suggested ways to battle the coronavirus pandemic.

On March 24, the Prime Minister came back and announced a 21-day lockdown across the country. In his second address, PM Modi said the step was taken as it was the only way to break the chain of infection. The lockdown was to be in effect till April 14.

PM Modi later asked citizens to make noise at 5 pm to show their appreciation for medics, nurses and sanitation workers. This call was well received as Indians came out to clap, clang metal vessels and ring bells to cheer workers battling the spread of the coronavirus.

Ten days into the lockdown, the Prime Minister addressed the nation again and asked people to light candles, lamps and hold mobile phone torches for nine minutes from 9 pm on April 5 to demonstrate a collective will to fight coronavirus.

As of Tuesday morning, the death toll due to coronavirus has climbed to 339 with over 50 deaths within 24 hours. The number of cases in the country, meanwhile, had crossed the 10,000-mark, according to the Union Health Ministry. Over a thousand have been cured and discharged.

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.