Rbioffers~3.7-Trncovidvaccine
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SATURDAY, 28 MARCH 2020 NEW DELHI (CITY) ~10.00 THE MARKETS ON FRIDAY Chg# VOLUME VII NUMBER 35 18 pages in 2 sections Sensex 29,815.6 131.2 Nifty 8,660.3 18.8 WEEKEND SEPARATE SECTION COMPANIES P3 Nifty futures* 8,651.4 8.8 Dollar ~74.9 ~75.2** Euro ~82.5 ~82.4** THE LIFE AND TIMES TATA MOTORS TO CARVE OUT Brentcrude ($/bbl)## 24.4## 26.2** Gold (10 gm)### ~43,500.0 ~390.0 OF RANA KAPOOR CAR BIZ AS SEPARATE ENTITY *(April) Discount on Nifty Spot; **Previous close; # Over previous close; ## At 9 pm IST; ### Market rate exclusive of VAT; Source: IBJA PUBLISHED SIMULTANEOUSLY FROM AHMEDABAD, BENGALURU, BHUBANESWAR, CHANDIGARH, CHENNAI, HYDERABAD, KOCHI, KOLKATA, LUCKNOW, MUMBAI (ALSO PRINTED IN BHOPAL), NEW DELHI AND PUNE www.business-standard.com CORONAVIRUS IMPACT WE HAVE ENTERED RBI offers ~3.7-trn COVID vaccine RECESSION: IMF The coronavirus pandemic has driven the global REPO RATE CUT BY 75 BPS; CRR SLASHED 100 BPS; 3-MNTH economy into a downturn that will require SBIcutslending massive funding to help developing nations, International Monetary Fund (IMF) chief REVERSE REPO BY 90 BPS MORATORIUM ON TERM LOANS Kristalina Georgieva said on Friday. “It is clear rate by 75 bps that we have entered a recession” that will be ANUP ROY DAS CAPITAL worse than in 2009 following the global Mumbai, 27 March Deposit rates by 20-100 bps financial crisis, she said. With the worldwide | Fixed rate reverse repo rate | Moratorium on term loans for 3 months economic “sudden stop”, Georgieva said the he Reserve Bank of India (RBI) on Friday reduced by 90 bps to 4% LIKELY IMPACT: Debt servicing burden on consumers ABHIJIT LELE, SOMESH JHA & PTI cent earlier. The RLLR will Fund’s estimate “for the overall financial needs came out all guns blazing to arrest a poten- LIKELY IMPACT: Banks may use will reduce Mumbai/New Delhi, 27 March be 6.65 per cent, down of emerging markets is $2.5 trillion”. But she tial slowdown caused by coronavirus funds available with them for from 7.40 per cent. warned that estimate “is on the lower end”. T (COVID-19), lowering the policy repo rate | Deferment of interest on working capital facilities for Consequently, equated on-lending to various sectors ours after the Reserve 3 months MOODY’S CUTS 2020 INDIA GDP GROWTH TO 2.5% by 75 basis points to 4.4 per cent, and telling all H Bank of India (RBI) monthly instalments banks and housing finance companies not to take | RBI to conduct targeted LIKELY IMPACT: Reduced pressure on corporate reduced the repo rate by 75 (EMIs) on eligible home instalments on term loans for three months. long-term repos up to and no asset classification downgrade basis points (bps), the coun- loan accounts (linked to 3-year tenor India cases rise to 724, The RBI also pumped ~3.74 trillion of addition- | Permitting banks to deal in offshore try’s largest lender, State EBR/RLLR) get cheaper by al liquidity into the banking system through various LIKELY IMPACT: Greater Bank of India (SBI), on around ~52 per 1 lakh on a rupee NDF markets death toll touches 17 policy measures. investment in debt Friday said it would pass on 30-year loan, the bank said. The death toll due to COVID-19 rose to 17 “Given the COVID-19 stress, the six-member capital markets LIKELY IMPACT: Better the entire cut to its cus- The lending rates for in the country on Friday and the total monetary policy committee price discovery with the tomers, effective April 1. retail loans and SMEs are number of cases climbed to 724. The (MPC) advanced their March | CRR cut by 100 bps to 3% possibility of RBI SBI cut interest rates on linked to the external ministry stated that four deaths were 31-April 3 meetings to March VOLATILE LIKELY IMPACT: Liquidity to the intervening in the retail term deposits by benchmark, ensuring auto- reported from Maharashtra while Gujarat 24, 26 and 27, and voted 4:2 to REACTION tune of ~1.37 trillion will be markets through 20-50 bps. For bulk deposits, matic transmission. had registered three deaths. cut the policy repo rate to 4.4 Nifty50 released in the banking system banks the cut was steeper, by A decision on the mar- per cent,” said Reserve Bank 50-100 bps, due to huge liq- ginal cost of funds-based INDIA LOST TIME IN RACE TO KEEP HEALTH STAFF SAFE of India Governor RBI Governor Shaktikanta Das uidity in the system. lending rate (MCLR) will be Shaktikanta Das, who “Responding to the taken when the bank's BACKPAGE 10 > addressed the media through RBI’s extraordinary mone- asset liability committee video streaming. THE CHANGING RATES THE RBI HAS TAKEN APPRECIATE THE RBI tary policy measures to (ALCO) meets next month. External members 7.2 GIANT STEPS GOVERNOR’S support the wider econo- The impact of recent RBI Oil plunges more than Chetan Ghate and Pami Dua Reporate Reversereporate TO SAFEGUARD REASSURING WORDS my, the bank passes on the policy measures and voted for a 50-basis-point cut, 6.25 CRR (in%) entire 75 bps repo rate cut reduction in the bank’s 6.00 5% despite stimulus 6.00 5.9 OUR ECONOMY ON FINANCIAL 5.75 while others, including Das, 5.75 to its borrowers availing deposit rates will be reflect- 5.50 5.40 STABILITY… 5.15 FROM THE 5.15 5.15 Oil prices plunged more than 5 per cent on favoured 75 basis points. 5.15 loans linked to the exter- ed in the next review of 4.90 4.90 Friday and were on track for a fifth straight Its stance was kept 4.90 4.6 IMPACT OF INTEREST RATE nal benchmark-linked MCLR, SBI said. weekly loss as demand destruction caused accommodative. 4.40 lending rate (EBR) as well Other lenders are likely 4.0 4.00 CORONAVIRUS NEEDS QUICK by coronavirus outweighed stimulus efforts At the same time, the reverse repo rate, which is as the repo-linked lending to follow suit, and rate cuts 3.3 Narendra TRANSMISSION by policymakers around the world. Brent the rate at which banks keep their excess funds with 3.0 rate (RLLR),” the bank said could be between 75 and crude was down $2.03, or 7.7 per cent, at the RBI, was lowered by 90 basis points to “make it Modi, Nirmala in a statement. 100 bps across different $24.31 a barrel at 9:33 pm IST. US crude was relatively unattractive for banks to passively deposit 2.0 Prime Sitharaman, The EBR will stand types of loans. The revision Finance Minister down $1.29, or 5.7 per cent, at $21.31. REUTERS funds with the Reserve Bank and instead, to use Feb 7Apr 4Jun 6Aug 8Oct 4Dec 5Feb 6Mar 27 Minister reduced to 7.05 per in loan rates will be effec- these funds for on-lending to productive sectors of 2019 2020 cent per annum tive from April in the case the economy”, the governor said. Turn to Page 8 > Source: Bloomberg Compiled by BS Research Bureau from 7.80 per of most banks. Turn to Page 8 > ON COLUMNS BANKSINNDFMAYSTEM BOOSTINGRESILIENCEAGAINSTTHE GOVTNEEDSTO RECAPITALISE BANKERS’ TRUST:ABITLATE,BUTRBIMANAGESTO RBI PACKAGE CORPORATEBONDSGET MARKETSDUCK MORATORIUMAGOODOPTION SATURDAY VOLATILITYUSHATHORAT P5 4CsSAUGATA BHATTACHARYA P5 BANKSPRONABSEN P8 SURPRISETHEMARKET TAMALBANDYOPADHYAY P4 ~1-TRILLIONRELIEF P4 RBI’SBAZOOKA P8 FORTHECASH-STARVED P5 SPECIALS WEEKEND RUMINATIONS What a crisis lays bare 7 > Cognizant staff to get India did not create the problem. But if it had a better functioning government system, it would have been able to deal with it at lower cost to its citizens. T N NINAN writes 25% extra pay in Apr NATIONALINTEREST T E NARASIMHAN “Prime Minister Narendra EASING Because, tomorrow Chennai, 27 March Modi has imposed a nation- always comes 7 > wide 21-day lockdown in an HARD TIMES There are many scary scenarios about how Information technology serv- attempt to contain the spread badly we Indians may be affected or how ices firm Cognizant has of the coronavirus. The Move to benefit many killed by COVID-19. But they presume announced it will pay its Philippines is under a state of employees up to 1.36 billion people will do nothing to employees who are at the national emergency. We sup- associate level in influence their fates, writes SHEKHAR GUPTA associate level or below an port these and other efforts India and the additional 25 per cent of their by governments across the Philippines base salary in April in recog- world to ‘flatten the curve’ This will Artist Satish Gujral nition of their “extraordinary and contain the spread of continuity-of-service efforts” COVID-19,” said Brian covermore than passes away at 94 amid the COVID-19 outbreak. Humphries, chief executive two-thirds of the Satish Gujral, one of India’s best-known The policy, which the officer of Cognizant, in a letter India workforce artists and architects, died in his Delhi company will review on a to employees. The company home, aged 94. Gujral, who monthly basis, will benefit “While the pandemic will has around had been awarded the over two-thirds of its Indian likely dampen industry 200,000 Padma Vibhushan, died on workforce. The company had demand, we know the Thursday night because of 203,700 employees across 13 requirement for fulfillment employees across age-related ailments. He locations in India as on remains critical,” he added. 13 locations in India was an architect, December 31, 2019.