Happy Monday #KarpathuIAS
17th July 2017
Economic Times
Ø RBI holds back balance sheet for wk ended June 30
Ø Money laundering: Fines on 15 banks struck down
Ø Number of PSU banks set to go down to 12 from 21
Ø HPCL gets on anti-pollution bandwagon, sets aside Rs 61,000 cr to make cleaner fuel
Ø BPCL makes its first US oil purchase, buys Poseidon
Ø Mahindra group to pump in $1 bn in US over next 5 yrs
Ø Jan Dhan deposits surge to Rs 64,564 crore
Ø PE majors, AMCs show interest in GTL Infrastructure
Business Standard
Ø Hero MotoCorp set to be new profit leader after 10 qtrs
Ø Unilever competes with Hormel to buy £2.2-bn Reckitt Benckiser food unit
Ø Yogi govt tells sugar mills to settle Rs 2,500-cr arrears with farmers
Ø Bankruptcy Code: IBBI can initiate probe against insolvency professionals
Ø Trai to discuss tariff floor price with telecom CEOs on July 21
Ø Inox Wind asks NCLT to quash insolvency case over Rs 57 lakh dues
Business Line
Ø GSTN portal to be ready for invoice uploading from July 24
Ø Hindustan Paper units seek ₹900-cr govt aid
Ø SME IPOs catch investors’ fancy; raise Rs. 660 cr in Jan-June
Ø TCS may reduce employee headcount further
Ø Nine of 10 most valued companies add Rs. 67,754 cr in market cap
Mint
Ø GST Council to take stock on Monday
Ø RBI seen going for rate cut in August MPC meeting
Ø RBI may push for resolution of bad loans worth Rs8 trillion by March 2019: study
Ø Essar Oil -Rosneft: Intelligence agencies raise concern over Rs82,000 crore deal
Ø Tech Mahindra to hire over 2,000 people in US this year
Financial Express
Ø Vikram Limaye to join NSE as the new MD and CEO from Monday
Ø Rs 8 lakh crores NPAs may face bankruptcy proceedings by March 2019
Ø Centre makes proposal for states to make their own Aadhaar Acts
Ø IBBI notifies regulations for probe under bankruptcy code
Financial Chronicle
Ø Onus of pulses procurement may go to states
Ø HNIs’ appetite for IPOs grows as most give handsome returns.
17th July 2017
Economic Times
Ø RBI holds back balance sheet for wk ended June 30
Ø Money laundering: Fines on 15 banks struck down
Ø Number of PSU banks set to go down to 12 from 21
Ø HPCL gets on anti-pollution bandwagon, sets aside Rs 61,000 cr to make cleaner fuel
Ø BPCL makes its first US oil purchase, buys Poseidon
Ø Mahindra group to pump in $1 bn in US over next 5 yrs
Ø Jan Dhan deposits surge to Rs 64,564 crore
Ø PE majors, AMCs show interest in GTL Infrastructure
Business Standard
Ø Hero MotoCorp set to be new profit leader after 10 qtrs
Ø Unilever competes with Hormel to buy £2.2-bn Reckitt Benckiser food unit
Ø Yogi govt tells sugar mills to settle Rs 2,500-cr arrears with farmers
Ø Bankruptcy Code: IBBI can initiate probe against insolvency professionals
Ø Trai to discuss tariff floor price with telecom CEOs on July 21
Ø Inox Wind asks NCLT to quash insolvency case over Rs 57 lakh dues
Business Line
Ø GSTN portal to be ready for invoice uploading from July 24
Ø Hindustan Paper units seek ₹900-cr govt aid
Ø SME IPOs catch investors’ fancy; raise Rs. 660 cr in Jan-June
Ø TCS may reduce employee headcount further
Ø Nine of 10 most valued companies add Rs. 67,754 cr in market cap
Mint
Ø GST Council to take stock on Monday
Ø RBI seen going for rate cut in August MPC meeting
Ø RBI may push for resolution of bad loans worth Rs8 trillion by March 2019: study
Ø Essar Oil -Rosneft: Intelligence agencies raise concern over Rs82,000 crore deal
Ø Tech Mahindra to hire over 2,000 people in US this year
Financial Express
Ø Vikram Limaye to join NSE as the new MD and CEO from Monday
Ø Rs 8 lakh crores NPAs may face bankruptcy proceedings by March 2019
Ø Centre makes proposal for states to make their own Aadhaar Acts
Ø IBBI notifies regulations for probe under bankruptcy code
Financial Chronicle
Ø Onus of pulses procurement may go to states
Ø HNIs’ appetite for IPOs grows as most give handsome returns.
What is Blue Brain Technology ?
The Blue Brain, a Swiss national brain initiative, aims to create a digital reconstruction of the brain by reverse engineering mammalian brain circuitry. The mission of the project, founded in May 2005 by the Brain and Mind Institute of the École Polytechnique Fédérale de Lausanne (EPFL) in Switzerland, is to use biologically-detailed digital reconstructions and simulations of the mammalian brain (brain simulation) to identify the fundamental principles of brain structure and function in health and disease.
The Blue Brain, a Swiss national brain initiative, aims to create a digital reconstruction of the brain by reverse engineering mammalian brain circuitry. The mission of the project, founded in May 2005 by the Brain and Mind Institute of the École Polytechnique Fédérale de Lausanne (EPFL) in Switzerland, is to use biologically-detailed digital reconstructions and simulations of the mammalian brain (brain simulation) to identify the fundamental principles of brain structure and function in health and disease.
How was pregnancy tested back then?
Ancient Egyptians mixed the urine with grains. At least, they
knew where to look at. In the middle ages, urine samples were mixed with alcohol.
The samples were also analysed based on colour. Around the 19th century, focus
was on structures seen under the microscope. Early 20th century, they injected the tested urine into rabbits. Early 60s, they reacted antibodies
with the samples. It had a lot of false positive results.
Presently, blood and urine samples are tested for levels of a specific hormone hCG
(human chorionic
gonadotropin). This is the most reliable of the bunch.
Ancient Egyptians mixed the urine with grains. At least, they
knew where to look at. In the middle ages, urine samples were mixed with alcohol.
The samples were also analysed based on colour. Around the 19th century, focus
was on structures seen under the microscope. Early 20th century, they injected the tested urine into rabbits. Early 60s, they reacted antibodies
with the samples. It had a lot of false positive results.
Presently, blood and urine samples are tested for levels of a specific hormone hCG
(human chorionic
gonadotropin). This is the most reliable of the bunch.
18th July 2017 #KarpathuIAS
Economic Times
Ø RIL, Shell, ONGC asked to pay $3 billion in penalty
Ø Greenko raises $1 billion green bond, Asia's largest
Ø Bad loans: SC gives RBI a week to reply on panel report
Ø CCI orders another probe against GAIL
Ø Warranted time to complete debt restructuring: Essar
Ø Replace old industrial policy with new one: CII
Ø BPCL expects to complete mega refinery in 4 yrs
Business Standard
Ø Govt refuses fresh opportunity to exchange demonetised notes
Ø Commerce ministry to set up 4 new centres on trade, investment issues
Ø SBI Life Insurance files for IPO to raise Rs 7,000 crore
Ø Satyam case: Sebi to soon pass order on Price Waterhouse
Ø Cigarettes get costlier: GST Council decides to increase cess over 28% tax
Ø Insolvency case: HPCL drags Hindustan Motors to NCLT
Business Line
Ø ACC consolidated profit rises about 33%, beats estimates
Ø Moody’s upgrades Adani’s Abbot Point rating to stable from negative
Ø Provisional anti-dumping duty on 'O-Acid' imports from China
Ø Wind industry getting into a ‘distress situation’
Ø A major global cyber attack could see $53 bn in losses: Lloyds
Mint
Ø Salasar Techno Engineering IPO subscribed 273 times on last day
Ø Reliance Industries market cap crosses Rs5 trillion mark
Ø Aditya Birla Nuvo transfers 23% stake in Idea Cellular to Grasim Industries
Ø Govt working on a simpler insolvency and bankruptcy code for SMEs
Ø Patanjali Ayurved may help out stressed infra companies
Financial Express
Ø Diageo holds $35 million payment to Vijay Mallya
Ø Expect Sensex earnings growth of 18 pct in FY 2018: Morgan Stanley
Ø Pharma companies exports to USA may go up in 2017-18: Report
Financial Chronicle
Ø IOC-OIL merger plan to create behemoth gathers steam
Ø HDFC Life gets board approval for IPO
Ø Regret quitting as Infy chairman, says Murthy.
Economic Times
Ø RIL, Shell, ONGC asked to pay $3 billion in penalty
Ø Greenko raises $1 billion green bond, Asia's largest
Ø Bad loans: SC gives RBI a week to reply on panel report
Ø CCI orders another probe against GAIL
Ø Warranted time to complete debt restructuring: Essar
Ø Replace old industrial policy with new one: CII
Ø BPCL expects to complete mega refinery in 4 yrs
Business Standard
Ø Govt refuses fresh opportunity to exchange demonetised notes
Ø Commerce ministry to set up 4 new centres on trade, investment issues
Ø SBI Life Insurance files for IPO to raise Rs 7,000 crore
Ø Satyam case: Sebi to soon pass order on Price Waterhouse
Ø Cigarettes get costlier: GST Council decides to increase cess over 28% tax
Ø Insolvency case: HPCL drags Hindustan Motors to NCLT
Business Line
Ø ACC consolidated profit rises about 33%, beats estimates
Ø Moody’s upgrades Adani’s Abbot Point rating to stable from negative
Ø Provisional anti-dumping duty on 'O-Acid' imports from China
Ø Wind industry getting into a ‘distress situation’
Ø A major global cyber attack could see $53 bn in losses: Lloyds
Mint
Ø Salasar Techno Engineering IPO subscribed 273 times on last day
Ø Reliance Industries market cap crosses Rs5 trillion mark
Ø Aditya Birla Nuvo transfers 23% stake in Idea Cellular to Grasim Industries
Ø Govt working on a simpler insolvency and bankruptcy code for SMEs
Ø Patanjali Ayurved may help out stressed infra companies
Financial Express
Ø Diageo holds $35 million payment to Vijay Mallya
Ø Expect Sensex earnings growth of 18 pct in FY 2018: Morgan Stanley
Ø Pharma companies exports to USA may go up in 2017-18: Report
Financial Chronicle
Ø IOC-OIL merger plan to create behemoth gathers steam
Ø HDFC Life gets board approval for IPO
Ø Regret quitting as Infy chairman, says Murthy.
What does Captcha [ C.A.P.T.C.H.A ]
stand for ?
Captcha stands for:
Completely
Automated
Public Turing test
to tell Computers
and Humans Apart.
It is used by many
websites to make it
harder for automated
bots to download
information from them.
This bots are usually
made by hackers and
so many websites use
this technology to
counter them. it's not
always successful
because the bots are
getting more
sophisticated.
stand for ?
Captcha stands for:
Completely
Automated
Public Turing test
to tell Computers
and Humans Apart.
It is used by many
websites to make it
harder for automated
bots to download
information from them.
This bots are usually
made by hackers and
so many websites use
this technology to
counter them. it's not
always successful
because the bots are
getting more
sophisticated.
Union Cabinet Approves Establishment of International Rice Research Institute in Varanasi
The Union Cabinet has approved establishment of International Rice Research Institute (IRRI) set up a regional centre International Rice Research Institute (IRRI), a global rice research institute.
It will be named as IRRI South Asia Regional Centre (ISARC) and will be set up at campus of National Seed Research and Training Centre (NSRTC) in Varanasi, Uttar Pradesh.
Key Facts
For setting up of the Centre, a Memorandum of Agreement (MoA) will be signed between Department of Agriculture, Cooperation and Farmers Welfare (DACFW) and IRRI, Philippines. This Centre will be the first of its kind international Centre in the eastern India.
Centre of Excellence in Rice Value Addition (CERVA) will be also established in Varanasi. It will include a modern and sophisticated laboratory with capacity to determine quality and status of heavy metals in grain and straw. It will also undertake capacity building exercises for stakeholders across rice value chain.
Benefits from ISARC
The ISARC will help in utilizing the rich biodiversity of India to develop special rice varieties. It will help India to achieve higher per hectare yields and improved nutritional contents. Further it will help to address India’s food and nutritional security issues.
It will play a major role in harnessing and sustaining rice production in the region. It is also expected to be a boon for food production and skill development in the eastern India and similar ecologies in other South Asian and African countries.
The Centre will support in adopting value chain based production system in the country. Thus, help to reduce wastage, add value to produce and generate higher income for the farmers. The farmers in Eastern India will be main beneficiaries, besides those in South Asian and African countries.
About International Rice Research Institute (IRRI)
It is an international agricultural research and training organization with headquarters in Los Baños, Philippines. It is also the largest non-profit agricultural research centre in Asia.
It was established in 1960 and has offices in 17 countries. It aims to reduce poverty and hunger, improve the health of rice farmers and consumers, and ensure environmental sustainability of rice farming.
IRRI is known for its work in developing high yeilding rice varieties that contributed to the Green Revolution in the 1960s. It advances its mission through collaborative research, partnerships, and the strengthening of the national agricultural research and extension systems of the countries IRRI works in.
The Union Cabinet has approved establishment of International Rice Research Institute (IRRI) set up a regional centre International Rice Research Institute (IRRI), a global rice research institute.
It will be named as IRRI South Asia Regional Centre (ISARC) and will be set up at campus of National Seed Research and Training Centre (NSRTC) in Varanasi, Uttar Pradesh.
Key Facts
For setting up of the Centre, a Memorandum of Agreement (MoA) will be signed between Department of Agriculture, Cooperation and Farmers Welfare (DACFW) and IRRI, Philippines. This Centre will be the first of its kind international Centre in the eastern India.
Centre of Excellence in Rice Value Addition (CERVA) will be also established in Varanasi. It will include a modern and sophisticated laboratory with capacity to determine quality and status of heavy metals in grain and straw. It will also undertake capacity building exercises for stakeholders across rice value chain.
Benefits from ISARC
The ISARC will help in utilizing the rich biodiversity of India to develop special rice varieties. It will help India to achieve higher per hectare yields and improved nutritional contents. Further it will help to address India’s food and nutritional security issues.
It will play a major role in harnessing and sustaining rice production in the region. It is also expected to be a boon for food production and skill development in the eastern India and similar ecologies in other South Asian and African countries.
The Centre will support in adopting value chain based production system in the country. Thus, help to reduce wastage, add value to produce and generate higher income for the farmers. The farmers in Eastern India will be main beneficiaries, besides those in South Asian and African countries.
About International Rice Research Institute (IRRI)
It is an international agricultural research and training organization with headquarters in Los Baños, Philippines. It is also the largest non-profit agricultural research centre in Asia.
It was established in 1960 and has offices in 17 countries. It aims to reduce poverty and hunger, improve the health of rice farmers and consumers, and ensure environmental sustainability of rice farming.
IRRI is known for its work in developing high yeilding rice varieties that contributed to the Green Revolution in the 1960s. It advances its mission through collaborative research, partnerships, and the strengthening of the national agricultural research and extension systems of the countries IRRI works in.
The government has set up a 19-member panel to carry out scientifically validated research on cow derivatives including its urine, and their benefitsThe panel has been named as National Steering Committee
About project:
The government has given the project the acronym SVAROP, which stands for Scientific Validation and Research on PanchagavyaThe committee will select projects that can help scientifically validate the benefits of panchgavya — the concoction of cow dung, cow urine, milk, curd and ghee — in various spheres such as nutrition, health and agricultureIt is being conducted by the Department of Science and Technology, Department of Biotechnology, and the Council for Scientific and Industrial Research (CSIR) of the Ministry of Science and Technology in collaboration with IIT-DelhiIt will cover five thematic areas including scientific validation of uniqueness of indigenous cows.
About project:
The government has given the project the acronym SVAROP, which stands for Scientific Validation and Research on PanchagavyaThe committee will select projects that can help scientifically validate the benefits of panchgavya — the concoction of cow dung, cow urine, milk, curd and ghee — in various spheres such as nutrition, health and agricultureIt is being conducted by the Department of Science and Technology, Department of Biotechnology, and the Council for Scientific and Industrial Research (CSIR) of the Ministry of Science and Technology in collaboration with IIT-DelhiIt will cover five thematic areas including scientific validation of uniqueness of indigenous cows.
Join soon @UPSC_2018:
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Entomological surveillance.
Effective malaria vector control is reliant on knowledge of local vector species and their susceptibility to insecticides, as well as on vector and human behaviours that may allow mosquitoes to avoid contact with interventions and thereby maintain residual transmission.
Five-year roadmap towards eliminating malaria — zone by zone, year by year
National Strategic Plan for Malaria Elimination (2017-22) lays down a blueprint of action to tackle the problem, working in parcels and identifying annual targets for each
What is this plan to eradicate malaria?
The NSP divides the country into four categories, from 0 to 3. Zero, the first category, has 75 districts that have not reported any case of malaria for the last three years. Category 1 has 448 districts, in which the annual parasite incidence (API, or the number of positive slides for the parasite in a year) is less than one per 1,000 population. In Category 2, which has 48 districts, the API is one and above, but less than two per 1,000 population. Category 3 has 107 districts, reporting an API of two and above per 1,000 population.
The plan is to eliminate malaria (zero indigenous cases) by 2022 in all Category 1 and 2 districts. The remaining districts are to be brought under a pre-elimination and elimination programme. The NSP also aims to maintain a malaria-free status for areas where transmission has been interrupted. It seeks to achieve universal case detection and treatment services in endemic districts to ensure 100% diagnosis of all suspected cases, and full treatment of all confirmed cases.
#Karpathuias.blogspot.in
Entomological surveillance.
Effective malaria vector control is reliant on knowledge of local vector species and their susceptibility to insecticides, as well as on vector and human behaviours that may allow mosquitoes to avoid contact with interventions and thereby maintain residual transmission.
Five-year roadmap towards eliminating malaria — zone by zone, year by year
National Strategic Plan for Malaria Elimination (2017-22) lays down a blueprint of action to tackle the problem, working in parcels and identifying annual targets for each
What is this plan to eradicate malaria?
The NSP divides the country into four categories, from 0 to 3. Zero, the first category, has 75 districts that have not reported any case of malaria for the last three years. Category 1 has 448 districts, in which the annual parasite incidence (API, or the number of positive slides for the parasite in a year) is less than one per 1,000 population. In Category 2, which has 48 districts, the API is one and above, but less than two per 1,000 population. Category 3 has 107 districts, reporting an API of two and above per 1,000 population.
The plan is to eliminate malaria (zero indigenous cases) by 2022 in all Category 1 and 2 districts. The remaining districts are to be brought under a pre-elimination and elimination programme. The NSP also aims to maintain a malaria-free status for areas where transmission has been interrupted. It seeks to achieve universal case detection and treatment services in endemic districts to ensure 100% diagnosis of all suspected cases, and full treatment of all confirmed cases.
#KarpathuIAS
Despite the most stringent penal provisions in the law against manual scavenging, it continues in parts of India. Do you think this reflects failure of governance in the country? What measures are needed to end this practice? Critically comment.
Despite the most stringent penal provisions in the law against manual scavenging, it continues in parts of India. Do you think this reflects failure of governance in the country? What measures are needed to end this practice? Critically comment.
Where does the oxygen we breathe come from?
Gaseous oxygen was created on the Earth about 3.5 billion years ago. At that time, the UV light of the sun decomposed the water vapour molecules present in the atmosphere, and released oxygen and hydrogen. But a major part of the oxygen immediately reacted with other substances, so that it was no longer available in the atmosphere as gas. Oxygen was also produced by the seas, where the 'blue algae' carried out photosynthesis. These bacteria converted sunlight and carbon dioxide into energy. In the process, gaseous oxygen was released as a 'waste product', which accumulated in the atmosphere. About one billion years ago, about one-twentieth (4%) of the atmosphere consisted of oxygen.
Gaseous oxygen was created on the Earth about 3.5 billion years ago. At that time, the UV light of the sun decomposed the water vapour molecules present in the atmosphere, and released oxygen and hydrogen. But a major part of the oxygen immediately reacted with other substances, so that it was no longer available in the atmosphere as gas. Oxygen was also produced by the seas, where the 'blue algae' carried out photosynthesis. These bacteria converted sunlight and carbon dioxide into energy. In the process, gaseous oxygen was released as a 'waste product', which accumulated in the atmosphere. About one billion years ago, about one-twentieth (4%) of the atmosphere consisted of oxygen.
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https://karpathuias.blogspot.in/2017/07/Ram-nath-kovind-14th-president-of-india.html?m=1
Who is Mr. Kovind Singh.
Alma matter and his details.
Who is Mr. Kovind Singh.
Alma matter and his details.
karpathuias.blogspot.co.uk
New President of India
ram nath kovind, new president of india, Details about new president, Ram Nath Kovind, 14th President of India.
What is Cyber Terrorism ?
Cyber terrorism is the use of Internet based terror attacks, done deliberately in order to create disturbances or havoc in usual working of the internet. Since, many computers are connected through internet, the chances of high disruption in computer related services in personal as well commercial devices. Attacks through cyber terrorism can be in form of various illegal activities whose number is on a constant increase, a few are most lethal and common. These include attacks from viruses, attacks from Trojans, attacks from BOTS, attacks on databases, black hat hacking etc.
Cyber terrorism is the use of Internet based terror attacks, done deliberately in order to create disturbances or havoc in usual working of the internet. Since, many computers are connected through internet, the chances of high disruption in computer related services in personal as well commercial devices. Attacks through cyber terrorism can be in form of various illegal activities whose number is on a constant increase, a few are most lethal and common. These include attacks from viruses, attacks from Trojans, attacks from BOTS, attacks on databases, black hat hacking etc.
Non-performing Assert
According to an analysis by the Credit Rating Agency ‘Crisil’, Indian Banks may have to incur significant losses in the process of resolving the mammoth bad loans, billed as bane for the country’s sluggish banking sector.Lenders may have to forget 60% of its outstanding dues or about Rs 2.4 lakh crore from top 50 stressed companies that could not repay their loans leading to insolvency battles. The total value of bad loans from that universe in sbout Rs. 4 lakh crore.The 50 large stressed companies are from the metals (30 per cent of total debt), construction (25 per cent), and power (15 per cent) sectors, and account for half of the Rs. 8 lakh crore NPA in the banking system as on March 31st 2017.The agency estimated that banks have provisioned for about 40 per cent of this loan exposure.According to the analysis, “The sources of stress are policy or demand (power plants), lower capacity utilisation (steel plants), and over-leveraged balance sheets (construction companies).
Haircuts Classification of Crisil:
Crisil has classified hair cuts in four categories – marginal (less than 25 per cent), moderate (25-50 per cent), aggressive (50-75 per cent), and deep (greater than 75 per cent). A quarter of the debt analysed needs marginal or moderate haircuts, while a third needs aggressive, and nearly 40 per cent, deep haircuts.“Companies from the power sector would require moderate haircuts, while those from the metals and construction sectors would need aggressive ones.”The agency observed that the majority of the debt requiring deep haircuts belongs to companies with unsustainable businesses. So, asset sales are necessary to recover monies.It assessed that companies needing moderate or aggressive haircuts had gone for debt-funded capex but then demand slumped, or they had projects that ran into regulatory issues, leading to significant time and cost overruns that made them unviable.Companies needing a marginal haircut are those facing temporary setbacks, which could be corrected over time.
*/What is a haircut?/*
A haircut is a one-off adjustment whereby lenders agree to settle for a lesser amount when a company struggles to repay a loan or the lender will not receive the sum in process of resolution a bad loan account.“The restructuring tools facilitated by the Reserve Bank of India that the indebted companies had availed of earlier did not help because of very high debt levels that underscore the magnitude of stress.”As per India Rating and Research (Ind-Ra), Indian Banks need to provide at least 18,000 crore additionally towards the 12 accounts identified by the RBI for reference to the National Company Law Tribunal under the Insolvency and Bankruptcy Code in Financial year 18.The analysis shows, a majority (60%) would fall under aggregate haircut level, to arrive at sustainable level of debt. This means, lenders’ permanent loan losses from those particular accounts may be half or three-fourth of their total debt outstanding.
According to an analysis by the Credit Rating Agency ‘Crisil’, Indian Banks may have to incur significant losses in the process of resolving the mammoth bad loans, billed as bane for the country’s sluggish banking sector.Lenders may have to forget 60% of its outstanding dues or about Rs 2.4 lakh crore from top 50 stressed companies that could not repay their loans leading to insolvency battles. The total value of bad loans from that universe in sbout Rs. 4 lakh crore.The 50 large stressed companies are from the metals (30 per cent of total debt), construction (25 per cent), and power (15 per cent) sectors, and account for half of the Rs. 8 lakh crore NPA in the banking system as on March 31st 2017.The agency estimated that banks have provisioned for about 40 per cent of this loan exposure.According to the analysis, “The sources of stress are policy or demand (power plants), lower capacity utilisation (steel plants), and over-leveraged balance sheets (construction companies).
Haircuts Classification of Crisil:
Crisil has classified hair cuts in four categories – marginal (less than 25 per cent), moderate (25-50 per cent), aggressive (50-75 per cent), and deep (greater than 75 per cent). A quarter of the debt analysed needs marginal or moderate haircuts, while a third needs aggressive, and nearly 40 per cent, deep haircuts.“Companies from the power sector would require moderate haircuts, while those from the metals and construction sectors would need aggressive ones.”The agency observed that the majority of the debt requiring deep haircuts belongs to companies with unsustainable businesses. So, asset sales are necessary to recover monies.It assessed that companies needing moderate or aggressive haircuts had gone for debt-funded capex but then demand slumped, or they had projects that ran into regulatory issues, leading to significant time and cost overruns that made them unviable.Companies needing a marginal haircut are those facing temporary setbacks, which could be corrected over time.
*/What is a haircut?/*
A haircut is a one-off adjustment whereby lenders agree to settle for a lesser amount when a company struggles to repay a loan or the lender will not receive the sum in process of resolution a bad loan account.“The restructuring tools facilitated by the Reserve Bank of India that the indebted companies had availed of earlier did not help because of very high debt levels that underscore the magnitude of stress.”As per India Rating and Research (Ind-Ra), Indian Banks need to provide at least 18,000 crore additionally towards the 12 accounts identified by the RBI for reference to the National Company Law Tribunal under the Insolvency and Bankruptcy Code in Financial year 18.The analysis shows, a majority (60%) would fall under aggregate haircut level, to arrive at sustainable level of debt. This means, lenders’ permanent loan losses from those particular accounts may be half or three-fourth of their total debt outstanding.
Sunday Tit - bit :
Karpathuias.blogspot.com
Who was the 1st Viceroy to occupy building of Rashtrapati Bhawan?
- Lord Irwin
The 1st Indian to reside in Viceroy’s House?
- C.Rajagopalachari
Who becomes 1st Dalit Chief Justice of India
- K. G. Balakrishnan
Who becomes 1st Dalit CM of an Indian state
- Damodaram Sanjivayya (AP)
Who becomes 1st Dalit speaker of Lok Sabha
- GMCBalayogi
Who becomes 1st Woman & Dalit speaker of Lok Sabha
- MeiraKumar
Karpathuias.blogspot.com
Who was the 1st Viceroy to occupy building of Rashtrapati Bhawan?
- Lord Irwin
The 1st Indian to reside in Viceroy’s House?
- C.Rajagopalachari
Who becomes 1st Dalit Chief Justice of India
- K. G. Balakrishnan
Who becomes 1st Dalit CM of an Indian state
- Damodaram Sanjivayya (AP)
Who becomes 1st Dalit speaker of Lok Sabha
- GMCBalayogi
Who becomes 1st Woman & Dalit speaker of Lok Sabha
- MeiraKumar