Tata Consultancy Services sets aside Rs 1,100 crore to help flood-struck Chennai employees
- has set aside Rs 1,100 crore for interest free salary advances and is creating a Rs 50 crore direct grant fund to help employees hurt by the floods in Chennai.
- In a post on the company’s internal communication portal, CEO N Chandrasekaran said the cash advances would be in the range of Rs 1 lakh to a maximum equivalent of three months gross salary.
- The company will also give an ex-gratia grant of one-month’s salary upto Rs 15,000 for TCS support and service staff. The company will also reimburse medical claims.
- “We hope these measures will help TCSers and our support staff get back on their feet quickly and put this traumatic experience behind us” , the CEO said.
Patanjali noodles, ghee to be put through quality test: Uttarakhand government
- Taking cognizance of media reports about insects and fungus allegedly being found in two of Patanjali’s food products, Uttarakhand government has decided to examine their quality.
- “Food security officials have been asked to take samples of Patanjali’s products in question and and put them to test to confirm the correctness of such reports appearing in a section of the media,” state Health Minister Surendra Singh Negi said today.
- The order to examine two of Patanjali’s food products was issued in view of news reports about insects allegedly being found in a packet of Patanjal Atta Noodles at Hisar in Haryana and fungus being found in a packet of Patanjali ghee in Haridwar, he said.
Banks need $140 billion to comply with Basel III norms by FY19
- Banks in India will need about USD 140 billion to ensure full compliance with the Basel III norms by 2018-19, Fitch Ratings said today.
- It also said that they are unlikely to see a significant improvement in the credit growth unless capital and bad loans related issues are resolved.
- The government’s expected capital injection of around USD 11 billion into its banks is critical but may be insufficient to support sustainable lending growth to achieve Basel III requirements and cushion against balance-sheet stress, all at the same time, Fitch said
- In the ‘2016 Outlook: Indian Banks’, it said: “State-owned banks, which carry a disproportionate share of the stressed assets, have little choice but to look at strengthening balance sheets if they are to revive profitability, internal capital generation and equity valuations.
- “Fitch estimates that the banks would require around USD 140 billion in total capital to ensure full Basel III implementation by FY19,” it said.
RBI announces timetable reduction in SLR
- The Reserve Bank of India has announced a reduction in the share of government securities that banks have to mandatorily hold in their books in four equal phases starting from next fiscal year.
- On Thursday, the RBI has said that the bank’s investment in government securities also known as statutory liquidity ratio (SLR) would be lowered to 20.5% by January 2017. As of now, banks are mandated to invest 21.5% of their deposits in government securities.
- According to the new time table SLR would be reduced to by 25 basis points to 21.25% as on April 2, 2016. It would fall to 21% by July 9, 2016. It would further be lowered from October 1, 2016 to 20.75%. The RBI said that the last round of reduction in the SLR would be one 20.50% by January 1, 2017.
- As of now, most banks have excess SLR in their books than mandated by RBI. As per the RBI data, the banking system has 29.33% of SLR as on October 30, 2015. The excess investment in government securities is primarily due to absence of credit demand. Also, most banks hold 2-3% excess SLR to meet any unexpected liquidity shortage. Banks can borrower from the RBI’s repo window by pledging government securities. However, those banks who don’t have excess government securities have to pay a higher interest rate to borrow from RBI under marginal standing facility.
Make in India boost: India-Russia to sign landmark deal for Kamov 226 choppers during PM Modi’s visit
- India and Russia are set to sign a landmark deal to jointly manufacture new generation of light military choppers under the Make in India initiative during Prime Minister Narendra Modi’s visit to Moscow later this month.
- While the inter governmental contract for producing over 200 of the Kamov 226choppers will be inked, a top Russian official has said that other details, including the selection of the Indian partner for the $ 1 billion deal will be decided later.