- US Secretary of State Michael Pompeo reaching India this evening to attend Two-plus-two dialogue between India and US
- Kerala: State govt decides to cancel all festivities for one year in wake of the flood that ravaged state
- SC to hear next week plea to stay Rafale deal
- PM greets teaching community on Teachersâ Day; pays tributes to Former President Dr. Sarvepalli Radhakrishnan on his Jayanti
- President Kovind calls upon Indian diaspora in Bulgaria to become a part of India's transformative journey
- Inter-Ministerial Central Team arrives in Nagaland to assess the damages caused by floods and landslides
- India to take on Sri Lanka in their opening encounter at SAFF Cup in Dhaka today
- Finance ministry notifies annual tax return forms for businesses registered under GST
- Teachers' Day being celebrated today; VP M Venkaiah Naidu to give away National Teachersâ Awards in New Delhi
- Saudi Arabia declares online satire punishable offence
- Cornea donation in 2017 was highest in 52 years: National Eye Bank chairman
- Flood threat looms large over Nagaland and Meghalaya
- India-US 2-plus-2 Dialogue tomorrow; defence cooperation in top focus
- UP, Uttarakhand batter heavy rain after normal life gets disrupted
- 1 dead, 25 hurt in Kolkata bridge collapse
- Arif Alvi is Pakistan's new President
- 8 dead, airport flooded as powerful typhoon hits western Japan
- Google doodle celebrates Teachers' Day
- On Teachers' Day today, President Kovind stresses on 'guru-shishya' parampara
- Prime Minister to interact with Awardees of National Teachersâ Awards on the eve of Teachersâ Day
- Delhi wakes up to a rainy morning
- Govt felicitates Asiad medal winners
- Air ticket costs less than auto rickshaw ride: Jayant Sinha
- Majerhat bridge in Kolkata collapses, 1 dead
- National Teachers Awards to be given under new guidelines
- J&K: Four CRPF jawans injured in grenade attack
- Rain lashes parts of Delhi
- 4th BIMSTEC Summit provided a new hope and momentum: Nepal PM
- Flood situation grim in UP
- President reaches Bulgaria on 2nd leg of his 3-nation tour
- Confusion, Conspiracy Synonymous to Congress: BJP
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- Circular for filling up of the Post of General Manager, RMK, an Organisation under Ministry of Women and Child Development, Govt. of India, Issued on 25.07.2018
- DoPT extended the due date for filling up the post of Executive Director, RMK upto 17.08.2018
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- Inviting proposal for engagement of Consultant for 'Women of India Organic Festival 2018, Delhi
- Why NITI Aayog's Rajiv Kumar blaming Raghuram Rajan's NPA clean-up for economic slowdown and defending note ... - Firstpost
- After 'one nation one tax', govt plans 'one nation one card' for public transport - Business Today
- Policies of Raghuram Rajan responsible for declining growth rate, says Niti Aayog vice-chairman Rajiv Kumar - Free Press Journal
- SC dismisses plea against Malayalam novel 'Meesha' (Lead)
- Gutkha scam: CBI raids 40 places in TN (Lead)
- Women writers come to fore in South Asia
- Shashi Tharoor's 'Why I Am A Hindu' to be made as web series (Lead, correcting para 6)
- Facebook, Twitter to defend companies against charges of bias in elections
- Supreme Court to hear plea seeking stay on Rafale jet deal next week
- Hyderabad twin blasts case: 2 Indian Mujahideen operatives convicted
- India's August services PMI falls from 21-month peak on weakest growth
- Barley futures decline on negative physical sentiments
- Barley prices dip by Rs 22.50 to Rs 1,618.50 per quintal in futures trade as speculators sell-off holdings, depressed by downbeat physical cues.
- Security forces, militants exchange fire in Pulwama
- A brief exchange of fire took place Wednesday between militants and security forces in Pulwama district of Jammu and Kashmir, the police said.
- J-K: Stepmother urges son to shun militancy, return home
- Army foils infiltration bid along LoC in Rajouri, intruder killed
- Army troops foiled an infiltration bid along the Line of Control (LoC) in Rajouri district of Jammu and Kashmir and killed an intruder Wednesday, an Army officer said.
- Nickel slides 0.32% on weak overseas cues, low demand
- Amid weak global cues and muted domestic demand, nickel prices declined by 0.32 per cent to Rs 894 per kg in futures market.
- Woman marries against family wishes, abducted from hospital during age determination
- The family members of a woman, who married against their wishes, allegedly abducted her after attacking a police van at a government hospital, where she was taken for age determination on court's order, police said Wednesday.
- Robust demand lifts refined soya oil futures by 0.15%
- Supported by uptick in demand at domestic spot markets against restricted arrivals from producing belts, refined soya oil prices traded higher by
- Aluminium futures edge higher by 0.64% on spot demand
- Aluminium prices went up by 0.64 per cent to Rs 149 per kg in futures market today as speculators built up fresh positions following pick-up in demand.
- Maruti calls for clear, stable policy framework for future mobility
- The country's largest car maker Maruti Suzuki India Wednesday called for a clear and stable policy framework to enable the automobile industry to prepare for future mobility.
- Strides gets USFDA nod for hypokalemia treatment drug
- Strides Pharma Science Wednesday said its step-down wholly owned subsidiary has received approval from the US health regulator for Potassium Chloride extended-release tablets, used to treat hypokalemia.
- Uttarakhand: Sans bridge, villagers use rope to cross river
- China points to other gains in hopes of easing US trade ire
- China is trying to defuse a spiralling tariff war with Washington over technology policy by highlighting gains in other trade-related areas.
- Antioxidant reduces risk for second heart attack, stroke: Study
- Scientists have identified a powerful antioxidant that may lower the risk of a second heart attack or stroke, paving the way for new treatments for the disorders.
- Cambodia's new one-party legislature begins session
- Cambodia's king on Wednesday presided over the opening of the new session of the National Assembly, whose 125 seats are filled by members of a single party following an election widely decried as unfair.
- Jalebi' poster turns into viral meme
- Global Markets: Stocks fall, dollar up on trade tensions, emerging market woes
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- Qatar Airways rethinks Indian plans due to foreign ownership rules
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- Analysis: Erdogan has limited options to save Turkey from financial crisis
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- MARKETS LIVE: Nifty below 11,500; pharma stocks gain, Rupee at record low
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- Twitter India head quits, Balaji Krish new interim chief
- Markets open on high note on Wednesday
- Malls Resurge, but E-Commerce a Threat in Tier-2/3 Cities - ANAROCK Report
- Afrique Telecom Commended by Frost & Sullivan for Developing Internet Connectivity Solutions Aimed at Underdeveloped Areas
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- Kerala government sticks with KPMG for rebuilding state
- Kolkata bridge collapse: Rescue operations on
- Google wishes India Happy Teachers' Day
- The Kerala government on Wednesday decided that despite the Congress-led opposition's opinion about KPMG, an international professional service company, selected as consultant partner for rebuilding the flood-ravaged state, it will stick with them, a minister said.
- South Asian countries may be in the late league of nations joining the bandwagon of literary prizes -- the likes of Booker and Pulitzer prizes are many decades old while the subcontinent's counterparts are just beginning to find a footing -- but the trends emerging from them show a staggering rise of women authors, writing on a multitude of themes, in diverse genres and languages.
- The Supreme Court on Wednesday dismissed a plea seeking ban on part of Malayalam novel "Meesha" saying subjective perception about the book cannot be allowed to come into the legal arena to stifle the creative imagination of a writer.
- The CBI on Wednesday conducted raids at 40 locations in Tamil Nadu in connection with the multi-crore gutka scam in which involvement of state Health Minister C. Vijayabaskar and Director General of Police T.K. Rajendran is suspected.
- NIOA moves into Benalla munitions factory
- Teacherâs Day: 10 Inexpensive Ways to Impress Your Teacher
- Microsoft ‘AI for Earth’ Programme Selects 7 Grantees from India
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- ‘Sita did NOT exist!’
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- Watch: Sunil Mittal on telecom industry
- CIC wants details of PM foreign tours
- India's August services sector activity falls from 21-month peak: PMI
- Trump plans to hold UNSC meeting on Iran later this month: Haley
- Paripoornananda might become the next Adityanath of BJP
- Vodafone-Idea want their Rs 7,249 crore back from DoT
- Won’t share India data without consent: US
- Double date at the court: Priyanka-Nick enjoy downtime at US Open with Sophie Turner, Joe Jonas
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- CBI raids minister C Vijayabaskar residence in Gutkha scam probe
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- ET has reliably gathered that both sides have agreed to an arrangement by which either side can terminate the agreement by giving each other an advance notice of six months.
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- It's Jet’s 1st concrete step towards monetising its profitable programme to shore up ailing finances.
- Additionally, the newly created entity needs all the money it can get to strengthen its balance sheet to effectively take on erstwhile market leader Bharti Airtel and moneyed Reliance Jio Infocomm, say experts.
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- Share market update: Nifty Realty top sectoral loser; Unitech, DLF among top losers
- Stock market update: IT stocks mixed; Infosys up, but TCS down
- Share market update: Pharma stocks rise amid rupee's fresh fall; Biocon jumps 6%
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- The Nifty Realty index was trading 2.03 per cent down at 262 around 11:35 am with all components in the red.
- The Nifty IT index was trading with a tepid gain of 0.36 per cent at 16,107 around 11:25 am.
- The Nifty Pharma index was trading 1.19 per cent up at 10,327 around 11:15 am.
- The seasonally adjusted Nikkei India Services Business Activity Index, fell from July's peak of 54.2 to 51.5 in August.
- The scam related to storing and sale of the banned substance Gutkha in Tamil Nadu after it was banned in the state.
- The kalyani, which faced the threat of being reduced to half its size by land-grabbers, has been restored to its original form.
- IAS officer Ashok Khemka, who was then director of consolidation, had cancelled the mutation of the land deal on October 15, 2012, less than a month after it was executed by consolidation officer Dalbir Singh.
- In a report submitted to the board, the Mahadevapura regional officer recommended granting of consent for operation (CfO) for five years to the factory.
- Kotak has called for a review of LAP-based lending, given the volatile nature of property prices. âWhenever we are finding SMEs getting into any stress, in many situations, the first thing we find is so-called current assets, which may be charged to banks or lenders, suddenly evaporate. When we go out to find the details of those assets, either they do not exist, or they have moved out of the books of the company,â Kotak told analysts, questioning whether valuations of properties are being done as they should be.THE OTHER SIDE OF THE STORYHowever, despite the growth in loans outstanding to this sector, MSMEs still feel that they have not got enough attention from banks. Archana Garodia Gupta was one angry panellist at the FICICI-IBA session on financing MSMEs last week. The Delhi-based manufacturer of imitation jewellery vehemently countered bankers on their claims of increasing credit flow to MSMEs, arguing that bankers are reluctant to support these enterprises.âI would say that banks have not lent a single rupee to MSMEs,â said Gupta, the promoter of Touchstone Gems & Jewellery, a Delhi-based firm with an annual turnover of Rs 10 crore. âAll banks have done is lend against a 100 per cent collateral, not taking risk and instead betting on property appreciation. We have only seen collateral caps and documentation two inches thick,â said Gupta, who is also the chair of the FICCI National MSME Committee.An RBI study released in August said that the MSME sector consists of more than 63 million units and employs around 111 million people, contributing around 30 per cent to the GDP. It accounts for about 45 per cent of manufacturing output and around 40 per cent of total exports.However, demonetisation and GST have hit the sector hard. âThe MSME sector has witnessed two major recent shocks, demonetisation and introduction of goods and services tax. For instance, contractual labour in both the wearing apparel and gems & jewellery sectors reportedly suffered as payments from employers became constrained after the note ban. Similarly, GST led to an increase in compliance costs and other operating costs as most of the MSMEs were brought into the tax net as over 60 per cent of them were not ready for the new tax regime,â said the RBI report.The sector is also important because about 97 per cent of MSMEs operate in the informal sector, and their share of informal sector in gross output of MSMEs is about 34 per cent. As per National Accounts Statistics, the share of informal sector manufacturing MSMEs in total GDP is around 5 per cent.Gupta said banks have not done enough to reach out to this sector. âAfter 20 years in this business, I still have to produce 100 per cent collateral. A lot of MSMEs have to buy property just to ensure that they get a loan because a bank does not recognise any other collateral.All the money that banks have lent to the sector so far is either profit or appreciation in the property minus the interest. They have infused no fresh funds,â Gupta said.In his call with analysts, Kotak too pointed out that the sector has been hurt due to demonetisation and GST. âEssentially, a lot of the SMEs in India have traditionally been financed by the public sector banking system, a lot of these SMEs have been significantly undercapitalised on the equity side.Therefore, a combination of external changes in our equity and some of the challenges in the banking system have all converged.This will put pressure on this segment. As a result, the ability to absorb shock by this segment is limited,â Kotak said.Public sector banks say that a higher amount of NPAs from this segment is mainly because they give loans to entrepreneurs in the early part of their business journey, while the private sector shuns them.âPublic sector bank NPAs are much higher (also) because they have to also do government schemes where the delinquency can go up to 35 per cent. Private banks and NBFCs do not have to deal with those issues,â SBI chairman Rajnish Kumar said as part of the FICCI-IBA panel.NOT ALL CONVINCEDHowever, Kotakâs warning on the sector does not seem convincing to many. Take DCB Bank, for example, which gives more than 80 per cent of its loans to this segment with funding requirements of below Rs 3 crore and ticket size ranging between Rs 40 lakh and Rs 50 lakh.âBased on our internal MIS, we believe that much of the MSME/SME segment that we deal with have more or less bounced back after demonetisation and the introduction of GST. We sincerely believe that these measures taken by the government will be beneficial in the long run. We believe that as more and more information is available on GST and income tax returns, finance requirement of MSME/ SME segment will become easier,â said Murali Natrajan, CEO at DCB Bank.DCB regularly monitors stock and order book of the customers when providing working capital loans.âThis helps us to adjust the drawing power of the customer, for example, even if the sanctioned limit is Rs 20 lakh, we may allow only Rs 15 lakh based on the business performance. This is an age old banking practice,â Natrajan said.Bankers, however, claim that new models of risk mitigation based on data, cash flow analysis will bring down risks in lending to this sector. âI think with all this, better days are ahead. I expect public sector banks to get back into the game,â Kumar from SBI said.NBFCs in the business of financing these entrepreneurs also do not find it alarming. They are now looking at this as one big highyielding opportunity. âThe market is huge and growing. Not to forget the spillovers from PSBs, which have 70 per cent of the market share. Even if 5 per cent of that comes, itâs a very big opportunity for companies like us. LAP is an established asset, but yes, real estate is a risky collateral.However, we can adjust loan to value. We now look for collateral together with company resource, which means ongoing businesses,â said Devang Mody, CEO, Reliance Commercial Finance.Will Kotak be proved right or will MSMEs continue to yield high returns? Only time will tell.
- A key incentive is access to an audience of 1.5 billion users who will be able to interact with these experiences across Facebookâs family of apps, including Messenger and Instagram.
- All the three phones will have dual 4G VoLTE support. As per reports, out of three devices, two will be exclusively available on Amazon India.
- SC/ST Act: Upper-caste protesters call bandh tomorrow
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- Xiaomi Redmi 6A, Redmi 6, Redmi 6 Pro price in India, specifications and features launch Live Updates: Redmi 6A, Redmi 6, Redmi 6 Pro launch event in India starts 12 PM. Follow our blog for live updates.
- SC/ST Act: Upper-caste protesters call bandh tomorrow
- The state has witnessed protests in districts like Morena, Bhind, Gwalior, Mandsaur and Neemuch, with upper-caste people targetting legislators, demanding that reservation be rolled back…
- Teachers’ Day 2018 Live Updates: President Kovind, PM Modi pay tribute
- Tamil Nadu gutkha scam: CBI raids residences of Health Minister Vijayabaskar, top cop
- The Pingla Ghar Jalandhar was set up in 1951 to provide food, shelter, clothes, protection and medical treatment to the homeless, destitute, abandoned, mentally retarded and handicapped.
- BJP MLA's 'kidnap women for men' remark riles netizens
- NCP MLA Jitendra Awhad shared the video on Twitter, where Kadam is seen talking to the men in the crowd and allegedly making the claims. He offers his telephone number and tells the people sitting around that they can call him for help at any time.
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- Defending champion Rafael Nadal digs deep to win the longest match of this year's US Open in a classic five-set quarter-final against Dominic Thiem.
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- Army foils infiltration bid on LoC in Rajouri, intruder killed
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- Avoid article which undermines morale of police, DGP reacting to a TV channel report
- Vigilance sleuths arrest MNREGA programme officer on graft charge
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- Major currencies up
- Rupee improves by 18 paise against USD
- Sensex down by 86 98 pts
- Aligarh mishap: Magistrate orders probe
- Aligarh, Sep 5
- Aligarh District Magistrate has ordered a probe into an accident on Tuesday evening in which alteast 12 people were killed while 24 others injured in a head on collision of two buses near Madrak toll plaza area on NH-93.
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- Vigilance sleuths caught a MNREGA programme officer when he was accepting bribe of Rs 2.
- Sensex down by 86.98 pts
- Mumbai, Sep 5
- The benchmark index of Bombay Stock Exchange (BSE) on Wednesday slipped by 86.
- Cong seeks probe into letter 'leak
- Judges contribute to Karnataka and Kerala Chief Minister's Calamity Relief Funds
- Steps for regulation of traffic triggered chaos in Agartala
- Rape accused escapes from police custody in Doda
- Jammu, Sep 5 (UNI) An accused arrested in alleged rape case, managed to a give slip to police from court premises in Doda district of Jammu and Kashmir, police said on Wednesday.
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- Sensex, Nifty turn choppy on weak global cues
- The 30-share Sensex recovered by 76.85 points, or 0.20%, to 38,234.77 in opening trade.
- SEBI counters âpreposterousâ claims on foreign outflows by investor body
- The letter written to the SEBI chairman Ajay Tyagi on August 29 has also been sent to Prime Minister Narendra Modi, Ministry of Finance and the Reserve Bank of India.
- Fuel prices touch new high on low INR
- Petrol now costs â¹86.72 a litre in Mumbai
- For the first time in 9 years, RBI buys 8.46 tonne of gold
- The Reserve Bank of India (RBI) has bought 8.46 tonne of gold in financial year 2017-18, the first purchase of yellow metal by the apex bank in almo
- August services sector activity falls from 21-month peak: PMI
- Supreme Court to hear plea to stay Rafale deal next week
- A PIL sought the stay stating alleged discrepancies in the fighter jet deal.
- ISSF World Championships: Bronze for junior shooters, seniors misfire
- Divyansh and Shreya first took the fifth and final qualification spot among 42 teams with a score of 834.4 and then shot a combined 435 in the finals to fetch the third place
- These women mean business
- In male-dominated Kollywood, female stars are slowly moving to a position of getting an opening of their own
- Gutkha scam: CBI searches houses of T.N. Health Minister Vijaya Baskar, DGP Rajendran
- This is the first time the CBI is conducting searches on the residence of a DGP/Head of the Police Force in the State.
- Senior Hizbul activist arrested in J&K
- His arrest likely to see decrease in terrorist activities in the valley, say police.
- Posters of Hrithik Roshan-starrer Super 30 biopic released
- The Hindi film is based on the life of Super 30 coaching institute founder and mathematician Anand Kumar
- Sensex, Nifty turn choppy on weak global cues
- Sensex recovered by 76.85 points to 38,234.77 in opening trade; NSE Nifty fell 26.15 points to 11,494.15
- Russia warns Google against election âmeddlingâ
- Kremlin writes to Larry Page regarding opposition leader Alexei Navalnyâs videosâs use of YouTube
- India buying Russian missile system not primary focus of 2+2 talks: Pompeo
- âThey are [missile system purchase from Russia and oil from Iran] part of the conversation. They are part of the relationship,â says Mr. Pompeo
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- Chopra's mother Madhu was also present there.
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- The AI Cube currently supports three languages - English, German and French.
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- Article at EconomicTimes.com with article id : 65681931
- Article at EconomicTimes.com with article id : 65681791
- Article at EconomicTimes.com with article id : 65681653
- Article at EconomicTimes.com with article id : 65682257
- Article at EconomicTimes.com with article id : 65681756
- Article at EconomicTimes.com with article id : 65681401
- Article at EconomicTimes.com with article id : 65681569
- Article at EconomicTimes.com with article id : 65681295
- Copyright:(C)Wed 05 Sep 2018, 12:04:502018Wed 05 Sep 2018, 12:04:50 Bennett Coleman & Co. Ltd, http://info.indiatimes.com/terms/tou.html
- Faulty math could be already fuelling India's next loan disasterThere is an acute need for caution as faulty property valuation may soon create India's next big pain point.
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- Vadra-DLF land licence hanging since December 2016IAS officer Ashok Khemka, who was then director of consolidation, had cancelled the mutation of the land deal on October 15, 2012, less than a month after it was executed by consolidation officer Dalbir Singh.
- Copyright:(C)Wed 05 Sep 2018, 12:03:592018Wed 05 Sep 2018, 12:03:59 Bennett Coleman & Co. Ltd, http://info.indiatimes.com/terms/tou.html
- Is there a risk building up in lending to micro, small and medium enterprises (MSMEs)? Yes, if you ask Uday Kotak. Asiaâs richest banker surprised analysts in a conference call after Kotak Mahindra Bankâs first quarter results by raising concerns over lending to MSMEs because of faulty valuations of collaterals for these loans. âIf you and I spoke in 2011-12 about project finance and large corporate loans, I was the one who raised concern about fundamental credit worthiness of some of these large project finance loans. I am today raising similar concerns over fundamental role of collateral valuers and the real truth of those valuations⦠I believe there is a reasonable reason to believe that there is significant overvaluation of collaterals across the banking and finance industry,â Kotak said.Loans to MSMEs, usually given to small entrepreneurs, have risen in the last four years as both banks and non-banking finance companies (NBFCs) have rushed to fund this sector through their socalled loan against property (LAP) product. It took land and property as the mortgaged assets for loans. It is the valuation of these assets that is being questioned by the billionaire banker.Latest data from credit information bureau Cibil-Transunion show that loans to MSMEs by banks and NBFCs increased to Rs 12.60 lakh crore in March 2018, from Rs 7.06 lakh crore in March 2014. It now constitutes 23 per cent of corporate loans, up from 21 per cent four years ago.However, even as exposure to the sector has risen, so have the nonperforming assets (NPAs). Micro enterprises that Cibil defines with loan exposure of less than Rs 1 crore have seen a jump in NPAs to 8.8 per cent in March 2018 from 7.7 per cent in March 2014. For SMEs, the jump in NPAs is sharper to 11.2 per cent of loans in March 2018 from 7.9 per cent in March 2014.Analysts say the risks in MSME lending highlighted by Kotak are not new as the sector by its very entrepreneurial nature is prone to volatility linked to the economy, changing business dynamics and risks in promoter-linked businesses.âWe have been highlighting over the last two years the risks building up in the loan against property segment,â said Udit Kariwala, analyst at India Ratings.
- Article at EconomicTimes.com with article id : 65681247
- Article at EconomicTimes.com with article id : 65680912
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Wednesday, September 5, 2018
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