- KOTAK MAHINDRA BANK BECOMES SECOND MOST VALUED BANK: Kotak Mahindra Bank Ltd pipped State Bank of India to become India’s second most valued bank after HDFC Bank in terms of market capitalisation. Data from BSE shows that Kotak Mahindra Bank now has a market capitalisation of Rs. 2,22,970 crores where as SBI’s Market cap is Rs. 2,22,043 crores. HDFC remains the country’s most valued bank with a market cap of Rs. 5.04 lakh crore.
- LIC PROFIT BOOKING RISES TO Rs. 25,000 CRORE IN FINANCIAL YEAR 2018: Life Insurance Corporation of India (LIC) has booked record equity trading profits of Rs. 25,000 crore in 2017-18, up from Rs. 19,000 crore during 2016-17. LIC’s record profit booking is a positive sign for market and this means the insurer now will be able to announce better bonus to its policy holders and pay better dividends to the government. LIC will also be in a better position to pump in more funds in to the market.
- AS BANKS SHY AWAY FROM EDUCATION LOANS, NBFC’s SEE A LUCRATIVE OPPORTUNITY: While public sector banks are facing high accretion levels of Non-Performing Assets (NPAs) in the education loans, leading to a slowdown in education loans in PSBs, Non- Banking Finance Companies (NBFCs) are expanding their education loan books. Over the last few years many standalone education loan NBFCs have come up, and many of them are experimenting new products as well, by adopting student-led approach which includes an overall screening of students, these NBFCs are redefining the norms of education loan lending.
- E-WAY BILLS HIT TRUCK DISPATCHES, INTER-STATE GOODS MOVEMENT DOWN BY 15%: By introducing the E-way Bill concept in GST, truck movement is becoming more difficult. Because of this, dispatches by Road transport under GST were almost down by 15% in the first 15 days of E-way bill mechanism. In our opinion these are initial teething problems which will become normal in days to come.
- PSBs FAILING TO RECOVER BAD LOANS: Public Sector Banks are having lot of difficulty in recovering bad loans. The recovery rate in NPAs which were written off is declining. As per a RBI report, 90% of written off loans could not be recovered during the period 2014-15 to 2017-18. The worst performer is UCO bank, which had written off Rs. 6,087 crore during the above mentioned period, has failed to recover a single rupee.
- ICICI BANK LAUNCHES DIGITAL FORM FOR OPENING CURRENT ACCOUNT: ICICI Bank has introduced a “Digital form” which will help open current account in a few hours. The bank captures the information about the customer and the business digitally and verifies KYC documents in real-time at the premise of the customer. This is for the first time that any bank has introduced digital format for opening current account and as per the bank it will help in “ease of doing business” and help increase the bank’s market share.
- INCOME TAX DEPARTMENT WARNS AGAINST TAX EVASION BY SALRAIED EMPLOYEES: The I-T Department has cautioned salaried tax payers against under-reporting their income or inflating their deductions in assessment year 2018-19. It has also warned intermediaries like chartered accountants and other consultants against abetting such tax evasion. Any infractions will invite action under various provisions of Income Tax Act. The I-T Department will also ask their employer to take action against such erring employees.