Business & Finance
Business Today

Business Today 2-Dec-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.
managers for tomorrow

THE B-SCHOOL UNIVERSE in India is very big – there are well over 300 institutes offering MBA degrees or PGDBM. But there is a strict pecking order among them. The Top 10 institutes tend to attract the best and brightest students in every batch as well as the best recruiters who come with offers to their campus. They also provide the best teachers, the best environment and act as a sort of finishing school for the best students in the country. In fact, I would say that this applies to the top two dozen institutes, though even within these, the first eight or nine institutes are considered the crème-de-la-crème. These institutes and their students are largely immune to the state of the economy in the country – they get multiple…

1 min.

STAY CONNECTED WITH US ON www.facebook.com/BusinessToday@BT_India PERSPECTIVES 5G Knocking on the Doors, But Are Telcos Ready? The investments in 5G are going to be more obligatory than voluntary for incumbent operators like Airtel, Vodafone Idea given their financial health businesstoday.in/5g-telcos India Gets US Waiver on Iranian Oil, But What About Chabahar Port? Will the future of Chabahar port depend on further reduction? Washington is not comfortable enough to respond as yet businesstoday.in/Iranianoil-chabahar Why Weak Banks Under RBI’s Intensive Care Will Continue to Struggle The lending environment is still challenging. The corporates are still to get into the expansion mode to borrow from banks businesstoday.in/rbi-lending Key Issues That Banks Under PCA Framework Are Dealing with Close to a dozen public sector banks are under PCA framework, monitored by RBI with lending restriction till they nurse back to good health businesstoday.in/publicsectorbanks-pca NEWS Burger Singh’s Secret Sauce Is…

2 min.
surplus fight

THE CENTRE seems to have toned down its demand from the RBI to hand over a part of its excess capital. This is among the half-a-dozen issues over which the Centre and the RBI are at loggerheads. While the Centre has denied seeking any surplus capital, the Chief Economic Affairs Secretary, Subhash Garg, has said the government is talking to the RBI for fixing an appropriate capital framework for it. This is possibly a middle ground for the Centre and the RBI. Once this is done, it will become easier for the Centre to tap the RBI’s capital. Experts say there is little merit in the government’s argument of ‘surplus capital’ and it shouldn’t rob the RBI of its savings. The RBI has been handing over its entire surplus of over…

1 min.
sharp rise in bank credit growth

THERE’S good news for the economy at last. Bank credit, an indicator of economic activity, rose 11.30 per cent in September this year. The outstanding gross credit at the end of the month was ₹80.25 lakh crore, according to the latest Reserve Bank of India data. While lending to the micro and small sector shrunk, lending to medium and large corporates showed smart recovery. The highest gains in the services sector were in transportation, computer software, tourism and hotels; and in the industry space, they were in automobile, electronics, cement, pharmaceutical, fertiliser and infrastructure, especially roads. In the last five years, retail lending had compensated for the low growth in corporate credit. It is now time for pick-up in corporate credit. Capacity utilisation levels are gradually rising and very soon…

1 min.
pay to stay subscribed

TELECOM OPERATOR Airtel has recently moved to a new prepaid recharge mechanism where subscribers are required to pay a minimum amount – ₹35 – every month, failing which they will be booted out of its network. The move is likely to boost Average Revenue Per User (ARPU) of India's second-largest telco and aims to let go of low-value subsribers who are using its network largely for incoming calls without making enough monetary commitments. Strengthening of ARPUs is important for Airtel at this juncture when its top line and bottom line have been under pressure. Airtel is sort of following Reliance Jio’s path of a similar strategy for its prepaid customers. In India, prepaid subscribers account for 95.86 per cent of the market, as per TRAI data. It’s likely to result…

1 min.
liquidity stress

ABOUT ₹2.3 LAKH CRORE worth of commercial papers (CPs) and non-convertible debentures (NCDs) issued by liquidity-hit non-banking financial companies (NBFCs) are to mature by December. Is there a systemic risk? Or do the RBI and the government have things under control? The government wants a dedicated window to infuse liquidity (similar to 2009) but the central bank believes there are enough means available at its disposal. It recently allowed banks to give partial credit support to NBFC bonds. After concluding ₹36,000 crore of open market operations in October, the RBI will inject an additional ₹40,000 crore in November. The NHB also raised the refinancing limit to ₹30,000 crore, while banks such as SBI raised portfolio buyout target by 2-3 times. Experts say any default is unlikely as most NBFCs are…