Tuesday, April 20

Month: February 2021

View: How the government can truly make India’s state-run banks efficient just like their private sector peers

View: How the government can truly make India’s state-run banks efficient just like their private sector peers

Finance
Budget 2021 has finally made long-awaited policy pronouncements of a reformist nature in the banking and financial sector. Governments are prone to make announcements that catch headlines, but soon fade away with only half-hearted implementation. One says this with the hindsight of the declaration of divestment of the Industrial Development Bank of India (IDBI) in 2015 and later of Air India. But genuine enthusiasm arises from the fact that after declaring that GoI would privatise public sector banks (PSBs), set up an asset reconstruction company (ARC) and establish a development finance institution (DFI) among others, the administration has started to take steps to implement these. It is encouraging that the finance ministry has already sought timelines from ministries on getting the dec...
Buffett is buying back more Berkshire stock this year after record $25 billion repurchase in 2020

Buffett is buying back more Berkshire stock this year after record $25 billion repurchase in 2020

investment
Warren Buffett during an interview with CNBC's Becky Quick on February 24, 2020. It turned out to be another year during which the billionaire investor shied away from game-changing acquisitions in a pricey market even after a sudden market cash and as his company holds a massive cash balance.Gerald Miller | CNBCAs the coronavirus pandemic roiled markets during 2020, Warren Buffett's Berkshire Hathaway bought back a record amount of company stock. And the buying spree has continued into 2021, according to the conglomerate's annual letter that was released Saturday morning.During the fourth quarter the company bought back around $9 billion of Berkshire shares, bringing the total 2020 repurchase to a record $24.7 billion."Berkshire has repurchased more shares since year-end and is likely to...
Committee set up to examine if payment gateway can be reporting entity under PMLA: Centre to HC

Committee set up to examine if payment gateway can be reporting entity under PMLA: Centre to HC

Finance
The Centre told the Delhi High Court on Friday that it has set up a committee, as directed by it, on whether a company like PayPal can be considered a payment system operator as well as a reporting entity under the Prevention of Money Laundering Act (PMLA). The submission was made before Justice Prathiba M Singh by Additional Solicitor General (ASG) Chetan Sharma who said the committee held a meeting on February 23 and another is scheduled on March 4 after which it would submit its final report. The court directed that the report be placed on record before the next date of hearing on May 20. It was hearing American online payment gateway PayPal's plea challenging a Rs 96 lakh penalty imposed on it for alleged violation of anti-money laundering law. Justice Singh had on January 12 stay...
UIICL: Axis Bank board approves reclassification of United India Insurance as public shareholder

UIICL: Axis Bank board approves reclassification of United India Insurance as public shareholder

Finance
on Saturday said its board has approved a proposal to reclassify United India Insurance Company Ltd (UIICL) as a public shareholder category investor in the bank from promoter category. UIICL, one of the promoters of Axis Bank, had requested the bank through a letter dated February 26, 2021 to reclassify the insurer to public category from promoter category, in accordance with listing regulations of Sebi, Axis Bank said in a regulatory filing. "The said letter was placed for consideration of the board at its meeting held today...The board at the said meeting has considered and approved the said request received from UIICL to reclassify it to public category from promoter category," said the lender. The board's nod is subject to approval from the stock exchanges, regulatory authorities an...
An activist with value approach takes the next step to turn around a food and beverage manufacturer

An activist with value approach takes the next step to turn around a food and beverage manufacturer

investment
A sign outside of a facility occupied by TreeHouse Foods in Brantford, Ontario, Canada.Kristoffer Tripplaar | SIPA USA | APCompany: TreeHouse Foods Inc. (THS)TreeHouse Foods Inc. of Oak Brook, Illinois manufactures consumer packaged food and beverages, including a range of shelf-stable, refrigerated, fresh and frozen products. Its product categories include beverages, salad dressings, beverage enhancers, pickles, sauces, cereals, pasta and dry dinners, cookies and crackers, retail bakery, aseptic products, jams and other products. The North American Retail Grocery segment sells branded and private label products to customers within the United States and Canada. The Food Away From Home segment sells products to food service customers, including restaurant chains and food distribution compa...
Banking sector was hurt in the name of aggressive lending a decade back: PM Modi – The Economic Times Video

Banking sector was hurt in the name of aggressive lending a decade back: PM Modi – The Economic Times Video

Finance
PM Narendra Modi on Friday said the government has a clear vision for the financial services sector and is taking steps to make it vibrant, proactive and strong and the top priority is to ensure trust and transparency for both the depositor and investor. PM Modi said the sector was hurt 10-12 years back due to aggressive lending and steps been taken under the current regime to take the country out of non-transparent credit culture. "Today instead of brushing NPAs under the carpet, we have made it mandatory to report even NPA of one day," he added. The Prime Minister was addressing a webinar on Budget 2021 announcements regarding the financial services sector. Watch now. (Text: PTI)
Art Cashin on stock market swings and Fed control on bond market

Art Cashin on stock market swings and Fed control on bond market

investment
Longtime trader Art Cashin told CNBC on Friday that investors should brace themselves for a period of stock market volatility as Wall Street digests rising bond yields."You have to be very careful. There is a fine line. If the market begins to believe that the Fed has somehow lost control of where the bond market is going, all that idea of a 'taper tantrum' will show up," the director of floor operations for UBS said on "Squawk on the Street."Cashin's comments Friday came early during a volatile session, with the 10-year Treasury yield above and below 1.5% and the Nasdaq Composite swinging between gains and losses. The Dow Jones Industrial Average was down over 275 points, or 0.88%, but off its session lows."If the market begins to believe that the Fed lost control and the Fed senses that...
IRDAI: Irdai asks health, general insurers to provide standard personal accident cover from April

IRDAI: Irdai asks health, general insurers to provide standard personal accident cover from April

Finance
Insurance regulator Irdai has asked general and health insurance providers to provide standard personal accident cover products to their customers. The Insurance Regulatory and Development Authority of India (Irdai) said the insurance market has a wide variety of personal accident insurance products. Each product has unique features and the insuring public may find it a challenge to choose an appropriate product, Irdai said in its guidelines issued to the insurers for the standard accident cover. "Therefore, with the objective of having a standard product with common coverage and policy wordings across the industry, the authority has decided to mandate all general and health insurers to offer the standard personal accident insurance product," it said. The product, Irdai said, should be...
Firm that monitors Reddit saw GameStop mentions spiking days ago

Firm that monitors Reddit saw GameStop mentions spiking days ago

investment
Mentions of GameStop increased on Reddit days before shares of the video-game retailer took off again, according to Justin Zhen, co-founder of Thinknum, a tech firm that compiles alternative data sets for investors."In the last 24 hours, we saw the number of occurrences of mentions for GameStop spike. It actually started spiking about four days ago," Zhen said in an interview Thursday on CNBC's "The Exchange." "The volume today has been insane, but we see a huge spike in advance of the run-up of the stock yesterday," he said.Zhen was referencing Wednesday's major late-day gain in GameStop shares, which ultimately closed higher by more than 100%. The stock rallied further during Thursday's volatile session and was halted multiple times. It ended up closing Thursday at $108.73 per share, up...
DHFL resolution: Company receives no objection from RBI, files application with NCLT

DHFL resolution: Company receives no objection from RBI, files application with NCLT

Finance
on Thursday said it has received no objection from the Reserve Bank and has filed application with NCLT for submission of the resolution plan of Piramal Capital & Housing Finance. Earlier this week, DHFL had announced Piramal group's resolution plan getting approval from the RBI. Pursuant to the receipt of no objection from Reserve Bank of India as per Insolvency and Bankruptcy Rules, 2019, the administrator of Dewan Housing Finance Corporation Limited (DHFL) has filed an application for submission of resolution plan of Piramal Capital & Housing Finance Limited (PCHFL) with the adjudicating authority NCLT, Mumbai Bench, DHFL said in a regulatory filing. The resolution plan has been approved by the Committee of Creditors (CoC). In November 2019, the Reserve Bank had referred DH...