Business, Economy & Banking Current Affairs - 2020
Business, Economy and Banking in Current Affairs 2019 with latest news and current affairs in Agriculture, Industry, Banking, Capital Markets, Import and Export and Government schemes in commercial sector.
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The Foreign Investment Promotion Board (FIPB) gave approval to Tata-SIA Airlines Ltd. – an upcoming joint venture of Singapore Airlines and Tata Sons entailing an initial foreign investment of USD 49 million.
- This is Tata’s second venture in the aviation sector after its tie-up with Malaysian carrier Air Asia in February for a low cost passenger air service.
- The venture will have Tata Sons as the majority partner with a 51% stake, while Singapore Airlines will hold 49%. The two firms, which plan to set up the airline with an initial investment of $100 million, announced their J.V. agreement on September 20, 2013.
- The venture is viewed as a result of the decision taken by the government in September 2012 when it allowed overseas airlines to invest up to 49% in local airlines. Earlier, foreign investors, but not airlines, had been allowed to hold up to a 49% stake in local airlines.
Following the liberalization, Tata Sons announced a venture with Malaysia’s AirAsia to form a local low-fare airline. AirAsia will hold a 49% stake in it and Tata Sons 30%. The balance will be held by Arun Bhatia of Telestra Tradeplace Pvt Ltd.
Tags: Current Affairs 2013 • India-International Relations • India-Malaysia • Malaysia
Finance Minister P. Chidambaram held that the government was keeping a close watch on the top 30 Non-Performing Assets (NPA) accounts of big borrowers (with loans of over Rs.1 crore) in each public sector bank, and asked the lenders to set up separate verticals to recover money from written-off accounts.
As per the Minister, the current situation is not as bad as it was in 2000, when gross NPAs reached a high of 14%. As of June 2013, the gross NPA of nationalized banks was 3.89%, and that of the State Bank group at 5.50%.
Other public sector banks have been advised to set up separate verticals to recover as much as possible from the accounts that were written off.
According to the Minister, the problem of NPAs has resurfaced after a normal period of 2009-10 and 2010-11 due to slowdown in the economy. However, he hoped that once the economy starts picking up the NPAs will come down.
Capital infusion of Rs.14,000 cr
The Finance Ministry has finalized the Rs.14, 000 crore capital infusion plan for public sector banks to strengthen their capital base, and promised another share in the fourth quarter of the current fiscal. The capital infusion would ensure that banks had 8% Tier-1 capital by the end of the current fiscal year.
Tags: Current Affairs 2013 • Economy • IBPS