Business & Finance
Business Today

Business Today 25-Mar-2018

A leading business magazine read by the business leaders for staying ahead and managing challenges that comes right away in the ever changing world of business.

Living Media India Limited
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26 Issues

in this issue

2 min.
banking on fintech

Over the past year and a half, the Indian banking system – especially the public sector banking bit – has been in the news for all the wrong reasons. The non-performing assets (NPAs) of many public sector banks (PSBs) have been rising inexorably. At the end of September 2017, the public sector bank NPAs stood at ₹7.34 lakh crore while private sector bank NPAs had touched ₹1.03 lakh crore. As many of the NPAs headed to the National Companies Law Tribunal (NCLT) for resolution under the Insolvency and Bankruptcy Code (IBC), it was apparent that banks would need to take steep haircuts on their loans, and would get back a fraction of what they were owed at the end of the resolution process. In February this year, the Nirav Modi affair…

1 min.

PERSPECTIVES RBI Plans to Stop Aadhaar Misuse, But Will It Work? The central bank's decision may affect payments banks which piggyback on their telecom arms to acquire customers businesstoday.in/rbi-aadhaar If PNB Would Have Heeded RBI's Advice PNB – as an LoU issuing authority – is now in the soup as it has to honour all the financial obligations as Nirav Modi is absconding businesstoday.in/pnbscam-nirav.modi Why Indian Pharma Needs to Track Amazon's Plans in Health Care As Amazon is looking at the high margin business of retail pharmacy, this may change the ecosystem businesstoday.in/pharma-amazon Can Reliance Turn Around Krishna-Godavari Assets with ₹40,000-crore Investment? RIL is also looking at options to optimise the existing offshore infrastructure facilities in KG basin to reduce costs businesstoday.in/ril-kg.basin NEWS Doubts on Emissions Linger, But Mercedes Committed to Diesel for Long Term Controversies have put a question mark on the very survival…

1 min.
when haste is waste

Punjab National Bank’s haste in announcing the Nirav Modi episode as a $1.77 billion scam—instead of the current outstanding $751 million (₹4887 crore)—may have caused serious collateral damage to itself and the consortia of three dozen banks that did business with Modi and his uncle Mehul Choksi. By including all the Letters of Undertaking ever issued to Nirav Modi’s companies, PNB may have covered its flanks but inadvertently suggested Modi had run away with $1.77 billion (since raised to $1.97 billion). CBI’s FIR instead said Modi’s outstanding against LoUs is only around half of that -₹4,887 crore. With that error of judgement, PNB may have risked not just its funds in the hands of Nirav Modi and Mehul Choksi’s companies but also that of other banks’ outstanding loans to their companies. Together,…

1 min.
refund delays hit exports

DURING THE INITIAL chaos that followed the GST rollout, two sets of people who seemed to be the worst hit were Small and Medium Industries (SMEs) and those into exports. Anecdotal evidence suggested that both sets were hit because of working capital shortage due to delayed refunds. Now a research done by Saurabh Ghosh, director of Strategic Research Unit (SRU), Shekhar Tomar, Manager Research (SRU) and Sankalp Mathur, Research Associate (SRU) of the Reserve Bank of India (RBI) provides evidence in support of the hypothesis that exports were hit because of working capital shortage. The research has been published as part of the Mint Street Memos of the RBI. The researchers used sectoral data of exports in the months immediately following the implementation of GST. Their data showed that the sectors with…

1 min.
promises need to be fulfilled

In the recently concluded investor summit in Lucknow, Yogi Adityanath-led Uttar Pradesh government has signed ₹4.28 lakh crore worth Memorandum of Understandings (MoUs) – equal to the state’s budget for 2018/19. India’s business barons promised investments in telecom and IT, manufacturing and infrastructure. The same league had promised huge investments in Maharashtra (₹12.10 lakh crore), West Bengal (₹2.19 lakh crore) and Andhra Pradesh (₹4.39 lakh crore), earlier. The trend of investment summits began when Narendra Modi was Gujarat’s CM and promoted ‘Vibrant Gujarat’ as an opportunity for the business community to garner investment support in a bullish economy where private firms were desperate for locations to start their plants. The result – high net realisation of MoUs at around 60 per cent; that has now fallen to 20-30 per cent…

1 min.
inflated hospital bills

FLOODED WITH COMPLAINTS of excess billing, the National Pharmaceutical Pricing Authority (NPPA) analysed the bills generated by four private hospitals in and around Delhi for treatment costs in some specific cases. It found that the hospitals were the major beneficiaries of inflated retail prices of medicines, consumables, devices and diagnostic services. Thus began the renewed call for price caps and regulatory oversight over healthcare bills. Although the NPPA study’s sample size was probably too small to generalise its findings, it was sufficient to rekindle the debate on affordable and accessible healthcare. Of course, the government will have to recognise that an overarching price cap alone cannot solve the problem. Price control or not, hospitals will charge at will unless there is enough competition to bring down their charges.…