1. Indian Overseas Bank to get fresh capital of ₹4,360 crore
- Centre will give fresh capital of ₹4,360 crores to Indian Overseas Bank (IOB).
- In October 2019, IOB received a capital infusion of ₹3,857 crores.
- In October 2019, Centre’s stake in IOB was 92.52%. Currently, it is 94.56% stake.
- After the infusion of ₹4,360 crores, Centre’s stake in IOB will become more than 95%.
- IOB's net loss increased from ₹487.26 crores a year earlier to ₹2,253.64 crores.
- Indian Overseas Bank:
- Headquarters: Chennai
- CEO: Shri Karnam Sekar
- Tagline: Good People to Grow With
2. RBI's Financial Stability Report
- RBI has released its December 2019 Financial Stability Report (FSR).
- The 20th issue of FSR says that the gross non-performing asset (GNPA) ratio of banks is 9.3% in September 2019 and it may increase to 9.9 % by September 2020.
- The report estimates that GNPA of State-run banks may grow from 12.7 % in September 2019 to 13.2 % by September 2020. GNPA of private banks may increase from 3.9 % to 4.2 %.
- As per the report, banks’ credit growth declined from 13.2 % in March 2019 to 8.7 % in September 2019.
- The report says that the Provision Coverage Ratio (PCR) of all banks increased from 60.5% in March 2019 to 61.5% in September 2019.
- Provision Coverage Ratio (PCR) is a measure of funds kept by banks from their profits to cover future losses due to bad loans. RBI had earlier prescribed a PCR of 70% of gross NPA. As of now, there is no prescription for PCR.
- Financial Stability Report (FSR):
- It shows a collective assessment of the Sub-Committee of the Financial Stability and Development Council (FSDC) on financial stability risks and resilience of the financial system.
- It also talks about the developmental and regulatory issues of the financial sector.
3. Vistara first airline to offer mobile data services on board
- Vistara has entered into a partnership with Tata Group Company Nelco and got approvals from the Department of Telecom (DoT) to offer inflight data services.
- Vistara will be the first domestic airline to offer mobile data services on board.
- In March, the Department of Telecom has allocated a spectrum to some airlines for starting data services.
- Flight and Maritime Connectivity Rules-2018 allow airlines to offer both voice and data connectivity.
- It is a joint venture of Tata Group and Singapore Airlines.
- CEO: Leslie Thng
4. Government to focus on minority stake sales and privatization
- Under the disinvestment programme, the government will focus on minority stake sales and privatization of state-owned companies.
- Earlier, the government has decided to sell its complete equity in BPCL, Shipping Corporation of India Ltd and Air India.
- It has also decided to sell its majority stake in Container Corporation of India Ltd (CONCOR) and transfer the management control.
- The government has also approved the reduction of its stake in some central public sector enterprises (CPSEs) to less than 51 percent and retaining management control.
- The government's disinvestment target in the current budget is Rs 1, 05,000 crores. In 2018-19, the target was Rs 80,000 crore.
5. Adani Ports enters into the cold chain logistics business
- Adani Ports and SEZ Ltd (APSEZ) has acquired 0.25 % stake in Snowman Logistics and entered into the cold chain logistics business.
- APSEZ acquired the stake through its completely owned subsidiary, Adani Logistics from Snowman Logistics’ parent company, Gateway Distriparks.
- Adani Ports and SEZ Ltd (APSEZ) is largest private multi-port operator of India.