New Delhi: India’s industrial growth slipped to a three-month low of 4.3 per cent in August due to a sharp decline in the mining sector output and poor offtake of capital goods.
Meanwhile, retail inflation rose marginally to 3.77 per cent in September owing to higher fuel and food prices but was short of the Reserve Bank of India’s 4 per cent medium-term target.
The inflation based on consume price index (CPI) had declined to a 10-month low of 3.69 per cent in August. In September 2017, it was at 3.28 per cent. In categories such as cereals, meat and fish, eggs, milk products, retail inflation showed an upward trend. In fruits, however, the inflation rate moderated in September.
The overall inflation in consumer food basket increased to 0.51 per cent as against 0.29 per cent in August, showed the data.
In fuel and light category, the rate of price rise was at 8.47 per cent in September.
“The overhang of food disinflation is very visible indeed. Consumer inflation for September surprised at 3.8 per cent, a clear 20 bps below the RBI’s medium-term target for the second straight month. Mind you, this is despite higher fuel prices and depreciation in the rupee,” said Dharmakirti Joshi, chief economist, Crisil Research.
He said with the expectation of overall healthy agricultural production, food inflation should stay contained and weigh down consumer inflation.
“Even if the increased Minimum Support Prices translates into commensurate increase in retail prices, consumer inflation can rise only around 50 basis points. That, in turn, means the policy rate could be on hold during the Monetary Policy Committee’s December review as well,” said Mr Joshi.
The industrial output in August grew 4.3 percent slower than 6.5 percent in July. The mining sector production contracted by 0.4 per cent in August compared to a growth of 9.3 per cent in the year-ago month.
Similarly the capital goods output growth decelerated to 5 per cent during the month from a 7.3 per cent expansion year ago.
The manufacturing sector output grew at 4.6 per cent in August compared to 3.8 per cent a year ago.
Power generation grew at the rate of 7.6 per cent in the month as against 8.3 per cent in the year-ago month.
MPC to meet six times during 2019-20: RBI
Mumbai: The Monetary Policy Committee (MPC), which decides on key interest rates, will meet six times during the next financial year, the Reserve Bank of India (RBI) said.
The first meeting of the six-member MPC to decide on the first bi-monthly monetary policy statement for 2019-20 will be held from April 2 to 4.
The policy will be announced on April 4. Headed by RBI Governor Shaktikanta Das, the committee also includes two representatives from the central bank and three external members.
The external members are Indian Statistical Institute professor Chetan Ghate, Delhi School of Economics Director Pami Dua and Indian Institute of Management-Ahmedabad professor Ravindra H Dholakia.
According to the schedule provided by the RBI, the second meeting of the MPC in the next fiscal will be held on June 3, 4 and 6; third meeting (August 5-7); fourth meeting (October 1, 3 and 4); fifth meeting (December 3-5) and sixth meeting (February 4-6, 2020).
SBI raises Rs 1,251 crore by issuing Basel III-compliant bonds
New Delhi: The country’s largest lender State Bank of India (SBI) said it has raised Rs 1,251.30 crore by issuing Basel III-compliant bonds.
“The Committee of Directors for Capital Raising at its meeting held today on 22 March 2019 deliberated and accorded approval to allot 12,513 non-convertible, taxable, perpetual, subordinated, unsecured Basel lll-compliant additional tier-I bonds, for inclusion in additional tier-I capital of the bank…aggregating to Rs 1,251.30 crore,” SBI said in a regulatory filing.
The bonds with a face value of Rs 10 lakh each bears a coupon rate of 9.45 per cent per anum payable annually with call option after 5 years or any anniversary date thereafter, it said. The bonds were subscribed on Friday, it added.
State Bank of India (SBI) also said the central board of the bank at its meeting held has accorded its approval for extension of validity period for raising equity capital of up to Rs 20,000 crore from market by way of follow-on public offer, qualified institutional placement, preferential allotment, rights issue or any other mode or a combination of these till March 31, 2020.
Sebi fines 4 entities Rs 27 lakh for fraudulent trading in BSE stock options
New Delhi: Markets regulator Sebi imposed a total penalty of Rs 27 lakh on four entities for indulging in fraudulent trade in illiquid stock options segment of BSE.
Umapati Oil Mill and Ginning Factory, Yudhbir Chhibbar, Kasturbhai Mayabhai Pvt Ltd and Vimladevi Shyamsunder Khetan are the four entities, according to Sebi’s separate orders.
fter observing a large-scale reversal of trades in the BSE’s illiquid stock options segment, Sebi conducted a probe from April 2014 to September 2015.
Following the probe, the regulator found that the trades executed by the entities were not genuine as they were reversed within few seconds with same counter parties with significant difference in price, resulting in profit to the entities.
Securities and Exchange Board of India (Sebi) said it was a deliberate attempt to deal in such a fashion and not a mere coincidence.
The trades executed by the entities were not genuine and created an appearance of artificial trading volumes, thereby violating PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) regulations, Sebi noted.
Accordingly, a fine of Rs 8.7 lakh and Rs 8.4 lakh were imposed on Yudhbir Chhibbar and Vimladevi, respectively while a penalty of Rs 5 lakh each was levied on Umapati Oil Mill and Kasturbhai Mayabhai Pvt Ltd, totalling Rs 27.1 lakh.
In a separate order, Sebi imposed a total fine of Rs 6 lakh on four promoters of Artech Power Products for delayed disclosures to exchanges regarding their change in the shareholding in the company.
Ranjith Vijayan, I V Vijayan, Repsy Vijayan and Resmi Vijayan are the four promoters, according to Sebi’s order.
The promoters have deprived the vital information to the public by non-disclosure /delayed disclosure as mandated by the Takeover Regulations, Sebi noted.