Nykaa raises Rs 100 crore from existing investor Steadview Capital

Nykaa was started in 2012 by Falguni Nayar. It has raised $93.3 million excluding the lastest fund infusion by Steadview Capital

Omnichannel lifestyle retailer Nykaa has secured Rs 100 crore in funding from its existing investor UK-based Steadview Capital as a primary investment.

This comes as the Mumbai-based cosmetic retailer scaled down operations, focussing only on daily essentials, amid countrywide lockdown on account of the Covid-19 outbreak.

"Please note we are only accepting prepaid orders for now on daily essentials," the company's website said.

"We have started deliveries to select pin codes in Mumbai, Pune, Delhi and Bangalore," Nykaa said customers may experience delays in delivery due to local constraints and it was working to restart deliveries in other cities.

"We are very grateful to achieve this significant milestone. We deeply value the trust and support of our investors, customers and brand partners who have been instrumental to our success," said Falguni Nayar, founder and chief executive officer, Nykaa on the funding development.

"We believe the company is poised for a strong growth trajectory in the years to come. The company’s focus on customer service and capital efficiency stands out in the Indian e-commerce space," said Ravi Mehta, founder and chief investment officer of Steadview Capital.

Nykaa was started in 2012 by Falguni Nayar. It has raised $93.3 million excluding the lastest fund infusion by Steadview Capital, according to data compiled by Crunchbase.

England board bans cricketers from wearing smartwatches in field of play

England and Wales cricket board hoped the decision will ensure that the integrity of players are not in doubt.

The England Cricket Board (ECB) on Tuesday banned cricketers from wearing smartwatches on the field of play in all upcoming matches, tightening its anti-corruption regulations in the wake of live streaming in county cricket.

"But with the vast majority of fixtures now available to watch live worldwide thanks to the growth of live-streaming services in the county game, the regulations have been tightened, meaning that smartwatches are completely banned in televised games and are permitted in the players' and match officials' areas (dressing rooms, balconies, dugouts) only in non-televised games," a report in ESPNcricinfo said.

It was Lancashire spinner Matt Parkinson who brought to light the opportunity for information exchange when he had revealed that he came to know about his maiden England call-up via a notification on his teammate Steven Croft's smartwatch during the 2019 County Championship.

Now with the rise of live streaming of matches, the governing body has decided to tighten its regulations.

ECB hoped the decision will ensure that the integrity of players are not in doubt.

"We review the anti-corruption codes and PMOA minimum standards on a yearly basis so that they remain relevant to the current threats and risks to cricket," an ECB spokesperson said.

Coronavirus outbreak: Consolidation in PSB space now a reality

Each of the amalgamated entities with scale and national reach would have a business of over Rs 8 trillion.

The landscape of the Indian banking will see a change with the consolidation of 10 public sector banks (PSBs) into four, effective April 1. The mega exercise comes at a time when the country and financial system is grappling with adverse fallout of the Covid-19 pandemic.

Oriental Bank of Commerce (OBC) and United Bank of India (UBI) will merge into Punjab National Bank. Mumbai-headquartered Union Bank will absorb Hyderabad-headquartered Andhra Bank and Mengaluru- headquartered Corporation Bank. Bengaluru-headquartered Canara Bank will take Syndicate Bank and Indian Bank will acquire Kolkata-headquartered Allahabad Bank.

Each of the amalgamated entities with scale and national reach would have a business of over Rs 8 trillion.

The consolidation is expected to help create banks with scale comparable to global banks and capable of competing effectively in India and globally. Greater scale and synergy through consolidation would lead to cost benefits, which should enable the PSBs enhance their competitiveness and positively impact the Indian banking system.

The adoption of best practices across amalgamating entities would enable the banks improve their cost efficiency and risk management, and also boost the goal of financial inclusion through a wider reach.

Last year, Dena Bank and Vijaya Bank were merged with Bank of Baroda. Prior to this, the government had merged five associate banks of SBI and Bharatiya Mahila Bank with State Bank of India.

Byju's, Toppr close social distance as demand for online education spikes

Edtech brands offer discounts, add fresh content and engage more frequently with users.

Over the past fortnight as students across the country and across age groups have been forced to rely increasingly on online learning, educational tech or edtech brands have been drawn under the spotlight. Byju’s, Toppr, upGrad and Lido Learning, among others, have seen a sharp rise in student engagement and enquiries on their platforms. And to make the most of the demand pull in the time of a countrywide lockdown, these brands have stepped in with attractive offers, extensions and a host of user engagement initiatives, hoping that this is the best time to bridge the digital gaps on internet’s educational highway.

Some brands have made their content free, unlocking what used to be hitherto premium access, while many have launched short, engaging content, hoping to hook first timers on to their platforms. Byju’s has made the learning app free for all students till the end of April. Similarly, an after-school personalised learning app, Toppr has made its ‘live’ and ‘video’ classes free for students from class 5 to class 12. Higher education platform, upGrad has opened up its ‘live platform’ to colleges, universities, NGOs and government agencies.

This is the edtech moment say experts. Much as demonetisation was the turning point for fintech brands, the present lockdown will give online learning its biggest boost ever, believes N Chandramouli, CEO of TRA Research. While the benefits and convenience of digital learning may have been evident for a while, its importance was never driven home as sharply as is being done now. With students being restricted to their homes and being tutored by parents, there is an educational gap that must be filled. And since parents don't want their children to lose out, they are more open to edtech platforms he pointed out. “The edtech brands have come out at the right time (with their offers),” Chandramouli added.

“Since our announcement, there is a 60 per cent increase in the number of new students using the app daily. The number of queries from students and parents have more than doubled in the past week,” said Divya Gokulnath, co-founder and director, Byju’s. The numbers have zoomed for Toppr too according Zishaan Hayath, its founder and CEO. The platform has seen a 50 per cent growth in subscribers for its ‘live’ classes. “Students are also spending more time on all modules, with the highest growth on ‘Ask Doubts’ module,” he added.

Banks extending emergency loans to salaried, entrepreneurs after rate cut

However, most are extending it to their existing customers only.

With the Reserve Bank of India cutting benchmark rates sharply and also allowing banks to defer EMIs, banks are slowing gearing up to lend to various sectors, including the salaried and entrepreneurs. And with the loss/fall in income, and even jobs coming under threat, there would be many who would be seeking such loans to navigate through these tough times. Adhil Shetty, CEO, Bankbazaar.com, says: “With pandemic-related job losses and the possibility of a recession looming, banks are worried the default rate on unsecured loans could skyrocket. Despite this, many have indicated their willingness to help with special emergency loans.”

For the salaried: Padmaja Chunduru, managing director, Indian Bank, says: “We have launched products across categories, not just for corporate, or MSME, but even emergency salary loans, loans for pensioners and self-help groups.” The bank’s retail salary loan is called IND-COV Emergency Salary Loan. Under this scheme, you can avail of a loan up to an amount equivalent to 20 times your latest monthly gross salary up to Rs 2 lakh. To be eligible for the loan, you need to have a salary account with the bank. In case you are a home loan borrower of the bank, you can avail of this loan, even if you do not a salary account.

Adds Chunduru: “Even if you don’t have an existing banking relationship, you can avail the emergency salary loan, if you have a guarantor for the same.” A guarantor could either be your spouse or an employee belonging to your existing organisation. There is no processing fee. The interest being charged is 9.50 per cent for 36 months, including a holiday period of six months. Even Bank of India is extending loans to retail customers but in the form of a personal loan. The eligibility: Three times of last drawn salary up to Rs 5 lakh.

Lockdown blues? Some classic Bollywood feel-good movies to beat them

Twenty-one days, it would seem, is too short a time to catch up with what really defines vintage Bollywood and is available in the OTT libraries.

While we get to watch new films all the time, the lockdown could be a golden chance to catch up with a few classics across genres. Digital platforms are overflowing with them, and you would literally be spoilt for choice selecting some really enjoyable stuff that has come out of Bollywood over the decades. Twenty-one days, it would seem, is too short a time to catch up with what really defines vintage Bollywood and is available in the OTT libraries.

Here is a list of old films that you might want to revisit, that will let you relax and bust the stress of lockdown. Of course, this is not a definitive list.

Chupke Chupke (1975)

Directed by Hrishikesh Mukherjee, the comedy film is about a man pretending to be a driver and fooling his wife's brother-in-law as an attempt to prove that the brother-in-law is not as smart as he claims to be. The film stars Dharmendra, Sharmila Tagore, Amitabh Bachchan, Jaya Bachchan and Om Prakash. It is available on Netflix.

Munna Bhai MBBS (2003)

The comedy-drama, directed by Rajkumar Hirani, is about a goon who sets out to fulfill his father's dream of becoming a doctor. It stars Sanjay Dutt, Gracy Singh, Arshad Warsi, late Sunil Dutt and Boman Irani. It is available on Netflix.

Amar Akbar Anthony (1977)

The Manmohan Desai multistarrer is widely considered one of the best examples of Bollywood masala entertainment ever. It was Amitabh Bachchan's first major foray into a brand of comedy for the mass. Big B tickled the funny bone with his role of Anthony Gonsalves. The film had a lasting impact on pop culture, with Laxmikant-Pyarelal's distinct score, the dramatic one-liners, colourful characters and a peculiar mix of slapstick and melodrama. It is available on Netflix.

Mistry group seeks to raise up to $1 billion pledging Tata Sons stake

Mistry, whose son Cyrus was ousted as chairman of Tata Sons in 2016, is the biggest single shareholder in India's largest conglomerate.

The Shapoorji Pallonji Group, controlled by billionaire Pallonji Mistry and his family, is in preliminary discussions to borrow as much as $1 billion to repay maturing debt using part of its stake in Tata Sons as collateral, said people with knowledge of the matter.

Mistry, whose son Cyrus was ousted as chairman of Tata Sons in 2016, is the biggest single shareholder in India's largest conglomerate, and is seeking a loan as the coronavirus outbreak delays a plan to sell assets, the people said, asking not to be identified.

Mistry is trying to use his 18 per cent stake in Tata Sons, which is estimated to be worth as much as $14 billion, as the Covid-19 pandemic stalls economic activity across the world. However, he may face a hurdle: the shares in the unlisted Tata holding company are closely held and illiquid. A legal battle between Tata Sons and Cyrus Mistry following his ouster may also deter potential creditors.

A representative for Shapoorji Pallonji Group declined to comment.

Mistry's Shapoorji Pallonji & Co had Rs 9020 crore ($1.2 billion) of debt as of September 30, according to rating assessor ICRA. The company planned asset sales, including solar power plants and road assets, in a bid to reduce debt by as much as Rs 4,000 crore, a person with direct knowledge of the matter said in August.

Founded in 1865, the Shapoorji Pallonji group, which has built some of Mumbai's landmarks, including the RBI building, is still better placed than most of its corporate peers, with total revenue of $7 billion for the year ended March 2019.

Defensives versus high beta. What should your stock strategy be?

While JP Morgan believes 'cash is king' given the uncertainty that lies ahead, selective buying from a long-term perspective can be done in defensive plays.

With the frontline indices – the S&P BSE Sensex and the Nifty 50 – crashing over 35 per cent from their peak levels given the rampant spread of coronavirus (Covid-19) pandemic across the globe, most analysts remain cautious on the road ahead for the markets. Going ahead, they believe the markets will track developments related to the progress of the health scare and how effectively can the governments combat it.

That said, they do believe long-term investors with risk appetite and those who can digest volatility can start nibbling at stocks given the attractive valuations.

So, what should your stock strategy be? Is it better to allocate more towards defensives or look at high beta names that can deliver handsome returns once the markets recover?

While JP Morgan believes ‘cash is king’ given the uncertainty that lies ahead, selective buying from a long-term perspective can be done in defensive plays. Before investing, investors must evaluate companies carefully and put money in stocks of only those companies with strong balance-sheet and earnings visibility despite the Covid-19 health scare, they suggest.

“The backdrop of a sell-off across asset classes led by COVID-19 fears means our strategy is set with the primary objective of capital preservation with cash in hand until volatility recedes. We would be selective buyers within Indian equities, albeit with a defensive bias. Our preferred sectors are consumer staples, healthcare, large retail private sector banks and utilities,” wrote Rajiv Batra, Kevyn H Kadakia and Sahil Dhingra of JP Morgan in a recent report.

Covid-19: Recession for world economy; India, China likely exceptions: UN

The report did not give a detailed explanation as to why and how India and China will be the exceptions as the world faces a recession and loss in global income that will impact developing countries.

The world economy will go into recession this year with a predicted loss of trillions of dollars of global income due to the coronavirus pandemic, spelling serious trouble for developing countries with the likely exception of India and China, according to a latest UN trade report.

With two-thirds of the world's population living in developing countries facing unprecedented economic damage from the COVID-19 crisis, the UN is calling for a $2.5 trillion rescue package for these nations.

According to the new analysis from United Nations Conference on Trade and Development (UNCTAD), the UN trade and development body titled 'The COVID-19 Shock to Developing Countries: Towards a 'whatever it takes' programme for the two-thirds of the world's population being left behind', commodity-rich exporting countries will face a $2 trillion to $3 trillion drop in investments from overseas in the next two years.

ALSO READ: Defensives versus high beta. What should your stock strategy be?

The UNCTAD said that in recent days, advanced economies and China have put together massive government packages which, according to the Group of 20 leading economies (G20), will extend a $5 trillion lifeline to their economies.

"This represents an unprecedented response to an unprecedented crisis, which will attenuate the extent of the shock physically, economically and psychologically," it said.

It added that while the full details of these stimulus packages are yet to be unpacked, an initial assessment by the UNCTAD estimates that they will translate to a $1 trillion to $2 trillion injection of demand into the major G20 economies and a two percentage point turnaround in global output.

"Even so, the world economy will go into recession this year with a predicted loss of global income in trillions of dollars. This will spell serious trouble for developing countries, with the likely exception of China and the possible exception of India," the UNCTAD said.

Coronavirus: Labourers' exodus throws supply chain, production out of gear

Indian kitchens, particularly in the country's cow belt, cannot be run without atta (wheat flour) required to make roti (bread).

As grocery stores, across the country, are grappling with panic buying and dwindling supplies of fresh stocks, the exodus of labourers have added more fuel to the fire by affecting the entire supply chain of essential commodities, ranging from wheat flour to pulses and biscuits to edible oils.

Majority of grain markets are shut, oil and rice mills are operating with minimum workforce, and truck operators are finding it difficult to move fast moving consumer products (FMCG) across the cities, mostly sealed during the nationwide 21-day lockdown. If the situation aggravates, the country might witness hoarding of goods and price rise of several items.

Despite the efforts of Central as well as state governments to ensure proper supply of FMCG and other essential goods, the fear of COVID-19 pandemic is keeping away the labourers and workers from working in the mills and factories.

"The coronavirus fear has affected the production. Nearly 80 per cent of dal mills are inoperative due to unavailability of labour and supply of raw material. Though the government has now allowed plying of trucks, still issues with transportation remains," says Suresh Agarwal, of All India Dal Mills Association adding, "even as authorities have allowed truckers to operate, the police of different states, particularly on the borders creates hindrance in transporting goods."

Obviously in weeks to come, supply of different varieties of pulses, an essential part of the diet, could be crippled. "But if labour gets back to work, and transport issues are quickly sorted out, the supplies could be smoothen, thus maintaining a balance between supply and demand," hopes Suresh Agarwal. Some varieties of Arhar was quick to disappear from shelves of local grocery stores in Delhi.

"There was a panic buying on the eve of the lockdown on 25 March. I somehow managed to procure stock of Arhar and atta (flour) through a local trader. But things are getting difficult now," said owner of the Sanjay Stores in Vasant Kunj, a large residential area close to Delhi Airport.

Shanghai tops world's IPO league table despite coronavirus outbreak

Eight companies raised $2 billion that month and a further 5 deals in March were worth $615.5 million.

Shanghai has topped global initial public offering (IPO) league table for the first time in nearly three years, even as the coronavirus epidemic which originated in China rocked markets around the world.

A total of 33 companies raised $7.31 billion floating on the Shanghai main board and the city's start up-focused STAR market, according to Refinitiv data for the first quarter, easily outstripping New York's Nasdaq where 17 companies raised $5.13 billion via IPOs.

But even as Shanghai basks in success, for cash-seeking companies and their bankers the question is whether China can maintain this momentum as the coronavirus continues to cause massive disruption in global financial markets.

While Shanghai hosted the $4.4 billion IPO of Beijing-Shanghai Speed Railway early in January, accounting for most the funds on the main board, STAR market issuance held up even as the country went into virtual lockdown in February.

Eight companies raised $2 billion that month and a further 5 deals in March were worth $615.5 million.

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China's markets have fared better than many Western benchmarks, with the blue-chip CSI 300 down 9.4% for the year as of Friday March 27, compared with tumbles of 21% fall for the S&P 500 in New York and 25% for the pan-European STOXX 600 index.

EY Greater China IPO practice leader Terence Ho said the fiscal response from China's government - which accelerated a massive programme of economic stimulus measures - could help boost the prospects of companies looking to list on the mainland markets.

New York state's coronavirus death toll surpasses 1,000 in 16 days

The virus and the disease it causes, coronavirus, has torn through New York with frightening speed.

New York state's death toll from the coronavirus outbreak climbed Sunday above 1,000, less than a month after the first known infection in the state.

Most of those deaths have come in just the past few days.

New York City reported in the evening that its toll had risen to 776. The total number of statewide deaths isn't expected to be released until Monday, but with at least 250 additional deaths recorded outside the city as of Sunday morning, the state's total fatalities was at least 1,026.

The virus and the disease it causes, COVID-19, has torn through New York with frightening speed.

The first known infection in the state was discovered March 1 in a health care worker who recently returned from Iran. Two days later, the state got its second case, a lawyer from the suburb of New Rochelle.

ALSO READ: Coronavirus LIVE: One more death in Bengal; six new cases in Madhya Pradesh

By March 10, Gov. Andrew Cuomo had declared a containment area in New Rochelle that shuttered area schools and houses of worship. That same day, the metropolitan area saw its first fatality: a man who worked at a harness track in Yonkers and lived in New Jersey.

By March 12, the state had banned all gatherings of more than 500 people, darkening Broadway theaters and sports arenas. A day later, the first New York resident died, an 82-year-old woman with emphysema.

New York City Mayor Bill De Blasio closed New York City's schools March 15.

Covid-19: Investors bullish on US stocks, but doubt looms despite rally

After a slump into bear market territory, the Dow Jones Industrial Average surged over 20% from its recent low last week, which by one definition suggested a new bull market.

After a brutal meltdown, some investors have been wading back into U.S. stocks. But others are wary of another leg down as the coronavirus spreads and its economic impact is difficult to predict.

High-profile investors from BlackRock Inc to billionaire William Ackman have turned more bullish on equities in recent days, as unprecedented stimulus from the Federal Reserve, a $2.2 trillion stimulus bill signed Friday, and a call by President Donald Trump to get the United States back to work in weeks rather than months sparked the biggest weekly rally in the Dow Jones Industrial Average since 1938.

But other investors, economists, and strategists are fearful of advising a jump back in, with no certainty about when the coronavirus outbreak will be under control.

"People are trying to time the bottom and that's indicative of an early bear market, when people have hope," said Richard Bernstein, chief executive officer of Richard Bernstein Advisors. "The beginning of a bull market starts with complete despair, when you've killed hope."

Bernstein said he was a "data hawk" and was looking for a combination of "improving fundamentals" - eyeing the basic health of the asset, rather than trading patterns - and "total disbelief," adding that in 2009 investors did not believe the bull market was real.

After a slump into bear market territory, the Dow Jones Industrial Average surged over 20% from its recent low last week, which by one definition suggested a new bull market. That definition, however, should be treated with significant caution.

BofA said on Friday that its Bull & Bear Indicator - a key market measure used to track positioning - had hit "maximum bearish," which could imply a rebound. However, that could have been borne out by the rally seen in the past week.

Ackman, whose Pershing Square LP fund gained a net 6.8% this month according to one investor, wrote to investors last week to say he had taken off credit market hedges and invested the money in new and existing stock holdings after turning "increasingly positive" on stock and credit markets.

Covid-19 crisis: Goa govt allows Swiggy, Zomato to deliver food, groceries

Goa Chief Minister Pramod Sawant has said that he was irked by some people, who prefer to violate the 21-day lockdown to buy something as trivial as a shampoo.

The government of Goa on Sunday issued a notice, whereby, it authorised Swiggy, Zomato and other home delivery platforms to operate and deliver food, groceries and other essential items at doorsteps during the lockdown due to COVID-19.

"ECommerce operators such as @swiggy_in, @ZomatoIN and other platforms have been permitted to deliver food and grocery items. #GoaFightsCOVID19," the Goa Chief Minister's Office tweeted today.

Earlier, two more coronavirus positive cases were reported in Goa on Sunday taking the state's tally to five.

A total of 1024 positive cases of COVID-19 have been found in India, the Ministry of Health and Family Welfare said on Friday. 27 persons have lost their lives due to this disease in the country.

Twitter slams Goa govt for food shortage, CRPF deployment

Amid growing unease over inability of food and essential items in Goa and the state government's decision to give central paramilitary forces a "free hand" to punish curfew violators, several voices on Twitter have attempted to highlight the plight of a population which has been facing a lockdown as a food shortage for as many as eight days in a row.

COVID-19: People violating lockdown to buy shampoo, says Goa CM

Goa Chief Minister Pramod Sawant has said that he was irked by some people, who prefer to violate the 21-day lockdown to buy something as trivial as a shampoo.

Sawant, whose administration has been criticised for triggering panic in Goa, due to chronic non-availability of essential goods in grocery stores across the state and the requisition of central forces to impose the curfew, said that the Central Industrial Security Force was pressed into service not to "punish people" but to maintain law and order in the state.

Body suits, sanitizers, and N99 masks: DRDO gears up to fight coronavirus

The body suit is one of the four instruments developed by the DRDO and ready to be deployed in 'War against Corona'.

A body suit developed by India's premier research and development organisation DRDO can protect doctors and other health workers attending on Covid-19 patients.

The Defence Research and Development Organisation (DRDO) said the body suit can shield doctors, medical staff, sanitation workers and others.

According to a DRDO statement, the body suit developed earlier for medical and paramedical staff to manage and evacuate the causalities in the event of radiological emergencies has now been converted into a full body suit to stop contamination.

"The suit is washable and has passed the ASTM International standards. The suit is widely tested by DRDO and other agencies and found suitable for the cause," it said.

Each suit costs Rs 7,000. Frontier Protective Wear Pvt Ltd, Kolkata and Medikit Pvt Ltd, Mumbai are producing 10,000 suits per day.

The body suit is one of the four instruments developed by the DRDO and ready to be deployed in 'War against Corona'.

Since COVID-19 affects pulmonary functions, it has developed critical care ventilators.

The Defence Bio-Engineering & Electro Medical Laboratory (DEBEL), Bengaluru, a DRDO lab, has identified a vendor (Scanray Tech Pvt Ltd, Mysore) to produce ventilators. "Innovation is on to create 'Multi patient ventilator' wherein several patients can be supported by a single ventilator. This innovation is expected to be available within a week," the DRDO said.

Around 5,000 ventilators will be produced in the first month and 10,000 subsequently. Each ventilator unit will cost around Rs 4 lakh.

Will the RBI cut interest rates today? Here's what top brokerages expect

While the Monetary Policy Committee (MPC) of the RBI originally was slated to meet in the first week of April, the central bank in a surprise move is holding a briefing today.

The government provided Rs 1.7 trillion package aimed at providing relief to the poor and marginalized sections of society. Most experts have termed it as the first tranche of the relief measures from the authorities and expect the Reserve Bank of India (RBI) to follow it up with a cut in interest rates besides announcing other liquidity support measures.

While the Monetary Policy Committee (MPC) of the RBI originally was slated to meet in the first week of April, the central bank in a surprise move is holding a briefing today. Here is what leading brokerages expect from the central bank.

Brickwork Ratings

In keeping with the promise of the RBI Governor that the RBI will do whatever it takes, it is reasonable to expect a sharp reduction in the borrowing costs. We expect the RBI to continue with its liquidity infusing tools such as open market operations (OMOs), forex swaps and long-term refinance options (LTROs), but also to announce measures to support corporates suffering from business losses due to the pandemic outbreak.

As the ongoing slowdown will drastically impact the financial health of many sectors, we expect the RBI to introduce forbearance measures towards the most affected or stressed sectors, and extend the repayment schedule and moratorium, along with implementing other measures, to avoid large NPAs and reduce risk weights. We expect the RBI to continue with accommodative monetary policy actions and stance; and cut the repo rate by 50 basis points.

Nomura

We believe the RBI is running the risk of falling behind in terms of proactive policy intervention, especially with the magnitude of shocks currently hitting the Indian economy and the financial system. So far, the measures have been on increasing domestic and dollar liquidity to ease financial conditions.

RBI follows global banks, cuts repo rate by 75 bps to fight coronavirus

The move comes after the global central banks have been cutting rates to help shore up the economy amid coronavirus pandemic.

Following in the footsteps of global central banks, the Reserve Bank of India (RBI) on Friday lowered the key repo rate by 75 basis points (bps) to 4.4 per cent, to help arrest the economic slowdown in the wake of the coronavirus (Covid-19) outbreak. The reverse repo rate now stands at 4 per cent, down 90 bps.

Repo rate is the rate at which a country’s central bank lends money to commercial banks, and reverse repo rate is the rate at which it borrows from them.

MPC voted 4-2 in favour of the reduction of the repo rate by 75 bps, RBI Governor Shaktikanta Das said in an address to media. The governor informed that the members of the MPC met on March 24, 26, and 27.

"It is our effort to ensure normal functioning of the market," Das said. The governor further said that the economic growth and inflation projection would be highly contingent depending on the duration, spread and intensity of the pandemic. "Need of the hour is to shield the economy from the pandemic," Das added.

Meanwhile, liquidity adjustment facility (LAF) has been reduced by 90 bps to 4 per cent while cash reserve ratio (CRR) has been slashed by 100 bps to 3 per cent.

In an order to mitigate the burden of debt servicing brought about by disruptions on account of Covid-19 pandemic, the central bank announced measures that included moratorium on term loans; deferring interest payments on working capital; easing of working capital financing; deferment of implementation of the net stable funding ratio; and the last tranche of the capital conservation buffer.

"All commercial banks (including regional rural banks, small finance banks and local area banks), co-operative banks, all-India Financial Institutions, and NBFCs (including housing finance companies and micro-finance institutions) (“lending institutions”) are being permitted to allow a moratorium of three months on payment of instalments in respect of all term loans outstanding as on March 1, 2020," the statement added.

Designer facemasks? Stylists say not the time for fashion statement

The surgical mask is undoubtedly the symbol of our times but most Indian design houses are either in lockdown or don't see the product avenue as one that is aligned with their sensibilities.

Hollywood celebrities like Gwyneth Paltrow may be 'gramming’ posts of themselves in chic futuristic face masks but don’t expect to see actress Deepika Padukone flashing a mask with designer flourishes provided by Sabyasachi any time soon.

The surgical mask is undoubtedly the symbol of our times but most Indian design houses are either in lockdown or don't see the product avenue as one that is aligned with their sensibilities.

Anita Dongre, for one, sees it as outside her expertise. "Producing safe masks needs expertise and certification which cannot be developed overnight. Also, some things are best left simple and effective. Not everything needs a designer element."

Rohit Bal says that right now his primary focus is wearing a mask. "All our factories are shut so even if I wanted to make designer masks, I would have to wait for 21 days," he said. Bal added: "I'm hoping we don't need masks after that time period. Right now the mantra is survival but once the crisis is over, we can think about designer masks."

Abroad, a niche business vertical of designer masks is emerging, ranging from products costing hundreds of dollars and made by specialists Vogmask to those being created by luxury brand Balenciaga.

But in India, fashionistas longing for something funky and avant-garde will have to content themselves for now with bog standard models we are all familiar with – the paper-thin surgical masks to the particle-filtering industrial-grade models by industrial giant 3M.

Manish Malhotra and Ritu Kumar echoed Bal's sentiment, saying safety was their primary concern right now. "They have to be done clinically, as this is not a fashion statement," said Kumar.

Delay in regulatory leeway likely to prove costly affair for banks

With loan growth and asset quality likely to take a hit, FY21 earnings estimates are coming under the knife.

The sharp rally in banking stocks, which rose 10-12 per cent, in the first half of Thursday’s trade did not sustain fully as hopes of relief or bailout measures for the sector from the finance minister did not materialise. The minister though has kept the option open for more relief measures as and when needed, which suggests that some relaxation (from the Reserve Bank of India or RBI) on asset classification norms (critical for classification of non-performing assets or NPA) may come through for the sector. While hopes of some relief have been around for over 10 days, any further delay could prove costly for banks.

Analysts are already downgrading their earnings expectations, with private banks likely to see a sharper cut. In fact, an across-the-board earnings downgrade is also the first of its kind for private banks.

The nation-wide lockdown, which was initially to be more a problem for small and medium enterprises (SME) exposure of banks, is beginning to spread. “The current pan-Indian lockdown will certainly affect cash flows of borrowers, both individual and corporate, which may lead to an increase in corporate as well as retail NPAs,” say analysts at ICICI Securities. “The lockdown will adversely impact most sectors and may not be restricted to chemicals, textiles, electronics, and entertainment,” they add.

The last time when banks received dispensation on asset recognition was in 2016, after demonetisation. The RBI gave a 90-day window for classifying certain retail loans as NPAs.

“Without a similar dispensation being extended from the March quarter, banks could find it very difficult to sail though,” said a top executive of a state-run bank. Another senior banker said unless such dispensations are soon given, it may be difficult, especially for private banks, to lend support to customers. While most state-owned banks have come out with special schemes for their customers battling the lockdown, private banks are yet to act. “The longer it takes to roll out these relief measures, the prolonged will be the period of dull growth for banks,” he adds while mentioning that business volumes have been quite negligible in the last two weeks.

Asylum rights of Sikhs, Hindus fleeing Afghan attacks must be respected: UN

The Islamic State terrorist organisation has stated that it carried out the attack on gurdwara in Kabul on Wednesday killing at least 25 people and injuring several people.

Asylum rights must be respected for Sikhs and Hindus who may be fleeing religious persecution in Afghanistan where a gurdwara was bombed this week killing at least 25 people, according to Secretary-General Antonio Guterres's Spokesperson Stephane Dujarric.

Asked at his briefing on Thursday specifically if Sikhs and Hindus who are are under attack there should be given asylum in India, he said, "The asylum regime, the refugee regime must be respected the world over."

The UN High Commissioner for Human Rights, Michelle Bachelet, has opposed the Indian Citizenship (Amendment) Act that seeks to help religious minorities fleeing persecution in Afghanistan, Pakistan and Bangladesh by providing expedited citizenship to Sikhs, Hindus and other non-Muslim minorities from those countries.

Earlier, Dujarric had issued a statement that Guterres condemned the attacks on the gurdwara.

"He expresses his deepest sympathies to the families of the victims and wishes a speedy recovery to those injured. The Secretary-General reiterates that attacks against civilians are unacceptable and those who carry out such crimes must be held accountable," Dujarric added.

The Islamic State terrorist organisation has stated that it carried out the attack on gurdwara in Kabul on Wednesday killing at least 25 people and injuring several people.