2Its chairperson gets one year extension
- The government has extended the term of Arundhati Bhattacharya, chairperson, State Bank of India (SBI) by one year. Ms. Bhattacharya, was appointed on October 7, 2013, for three years.
- The government has issued a notification to this effect which has been received by the SBI chairman’s office. “I am grateful to the government for giving me some more time to take forward the initiatives that I have taken,” Ms. Bhattacharya told.
- The extension will help Ms Bhattacharya to complete the merger process of five subsidiaries as well as the Bharatiya Mahila Bank, the process for which began a few months ago.
New black money window
Rs. 65,250 cr. mopped up via new black money window
- Union Finance Minister Arun Jaitley on Saturday announced that the Central Board of Direct Taxes (CBDT) had received total disclosures of Rs. 65,250 crore under the Income Disclosure Scheme, 2016 in the form of cash and other assets.
- The Minister added that since some disclosures that were received manually were yet to be tabulated and verified, the figure could be revised upward. The four-month window under the scheme for declaring undisclosed income or black money that had escaped assessment closed at Friday midnight.
- Mr. Jaitley refused to draw comparisons of the current Income Declaration Scheme (IDS), 2016 with the Voluntary Disclosure Scheme of 1997, in which the then government, he said, had mopped up Rs. 9,760 crore in taxes at an average of about Rs. 7 lakh per declarant. Unlike the IDS, Mr. Jaitley said, the earlier scheme had not penalised the declarents and allowed them to value the assets declared at the market prices of 1987 rather than current rates.
Foreign investors pumped
FPI inflows surpass Rs. 20,000 cr in Sep, at 11-month high
- Foreign investors pumped in more than Rs. 20,000 crore into the capital market in September, making it the highest net inflow in 11 months.This also marks the third consecutive month of positive inflows (equity and debt).
- The trend is likely to continue in coming weeks as regulator Sebi has decided to offer direct entry to well-regulated foreign investors for investing in corporate bonds, say experts.They attributed the latest flurry of capital to factors such as sound progress in rollout of GST, better corporate earnings and the US Fed’s decision not to lift interest rates.
- Sentiment turned better after the current account deficit (CAD) narrowed sharply to just USD 300 million, or 0.1 per cent of GDP, in the June quarter and domestic passenger vehicle sales grew for the 14th straight month in August, they added.According to depositors’ data, net investment by FPIs stood at Rs 10,443.
State Bank Of India and Punjab National Bank
They may pick stake in Rs 500 crore credit enhancement fund
- Government is considering roping in two-three banks, including SBI and PNB, to pick up stake in IIFCL-anchored Rs 500-crore Credit Enhancement Fund announced by Finance Minister Arun Jaitley in the budget this year.
- Besides, the Finance Ministry has requested insurance regulator Irdai to provide an exemption to allow LIC to hold beyond 15 per cent stake in the proposed venture, which is expected to be registered as the Alternate Investment Fund (AIF).
- The exemption has been sought because Irdai guidelines allow an insurer not to have more than 15 per cent stake in any company as it leads to conflict of interest.To address regulatory concerns, the government has asked India Infrastructure Finance Company (IIFCL) to spearhead the setting up of the fund since the wholly-owned government infra funding company has the requisite expertise and runs its credit enhancement scheme.