www.business-standard.com SUNDAY, 12 APRIL 2020 10 pages in 1 section WORLD P6 WORLD P6 NEW DELHI (CITY) ~10.00 FINALPORSCHE 911 OF A TRUMP: BIGGEST DECISION VOLUME XIV NUMBER 3 GENERATION TO BE SOLD I HAVE EVER HAD TO MAKE PUBLISHED SIMULTANEOUSLY FROM BENGALURU, KOLKATA, MUMBAI AND NEW DELHI COVID LED TO 4K-CR FRESH BAD LOANS ON OUR BOOKS: PNB MD PM hints at lockdown extension Punjab National Bank’s (PNB’s) integration Curbs likely till April 30; construction, farm, some industrial activity may begin with Oriental Bank of Commerce and United Stateswantupto Bank of India came at a time when the country was under lockdown. On the eve of ARCHIS MOHAN & RUCHIKA CHITRAVANSHI INDIA Total WORLD Total PNB’s 126th Foundation Day, the bank’s New Delhi, 11 April VIRUS 7,529 1,724,736 managing director and chief executive officer, TRACKER Active cases Deaths ~10-trnpackage S S MALLIKARJUNA RAO, tells naday India witnessed its largest num- Somesh Jha how coronavirus ber of new coronavirus cases, the central 6,634 104,938 has impacted customer government was set to extend on BS REPORTERS Recovered Deaths Note: Total cases include 1 migration; figures CMs’ outreach programmes related O Saturday the nationwide lockdown by as of 10:50 pm IST; sources: Ministry of Health; New Delhi, 11 April 652 242 to the amalgamation. another two weeks, until April 30. Johns Hopkins Coronavirus Resource Centre DEMANDS While a formal announcement was awaited, Implement ‘Kerala tates on Saturday demanded a package of up to BACK PAGE 10 > official sources said the second phase of the lock- model’, allow S ~10 trillion from the Centre and dues such as com- down was likely to be less comprehensive than movement within pensation on account of goods and services tax (GST), the first, and that agriculture, construction, and besides front-loading grants to local bodies. They also ECONOMY P4 districts with no or limited industrial activity would be permitted. negligible cases wanted the Reserve Bank of India (RBI) to go for deficit Health insurance Maharashtra, however, didn’t wait for the financing, which is printing notes, to help these packages. Centre’s announcement and said it would extend Allowstates to take During the virtual meeting with Prime Minister premiums setto rise the lockdown till at least April 30. Odisha and a call on intra-state Narendra Modi, West Bengal Chief Minister Mamata Health insurance premiums are set to rise Punjab have already announced the extension. movement Banerjee asked for a national economic relief package of as non-life insurance companies and Interacting with Provide relief ~10 trillion, which can be disbursed to the states. standalone health insurance firms scurry chief ministers via package, clear Funds from this can be used to fight the pandemic as The motto of to revamp their products to include the videoconferencing in MNREGA dues and well as support the states’ economies. modifications mandated by the insurance his third such meeting, the government Last month, Union Finance Minister Nirmala regulator, Insurance Regulatory and Prime Minister earlierwas other payments Sitharaman had announced a ~1.70 trillion central pack- Development Authority (IRDAI). The rise Narendra Modi hinted “jaan hai to Relax fiscal deficit limit age. However, Banerjee contended it was only 1 per cent in premiums could be in the range of at the need to strike a jahaan hai”, from 3% to 4.5-5% of national GDP and the Centre needed to spend more. 5-25 per cent, depending on the features balance between saving but nowit is Allow33% more “Globally we are seeing Japan, the US, and others that each insurance company adds. lives and reviving eco- “jaan bhi jahaan additional borrowing are spending much more in proportion to their GDP. nomic activity. bhi”, the PM said India needs to do the same thing,” she said. So far as her LICCUSTOMERS GET MORE TIME TO PAYPREMIUM P5 According to a gov- Give bonus to farmers state was concerned, Banerjee pressed for a ernment statement, the to incentivise ~25,000-crore special package. PM underlined that the motto of the government staggered/delayed She also asked the Centre to clear GST dues of ~2,393 CORONAVIRUS EFFECT P3 earlier was “jaan hai to jahaan hai” — or the world Prime Minister Narendra Modi interacts with chief ministers on the Covid-19 procurement of wheat crore for the last four months of FY20, apart from pend- NBFCs may face more exists if there is life. But it now is “jaan bhi jahaan lockdown via videoconferencing, on Saturday PHOTO:PTI Waive 3 months’ ing dues of ~36,000 crore and funds of ~11,219 crore for the liquidity challenge bhi”, he said. “Jaan bhi and jahan bhi — a future interest on crop loans state. “There is no earning but only burning (expenses) where people care about both the aspects, follow and defer recovery by now,” she said. Additionally, she sought special relief Non-banking financial companies (NBFCs), their duties and abide by the directions of the gov- MINISTERS, SENIOR OFFICERS TO WHO WARNS measures like a loan-repayment moratorium. commercial banks which are cash-strapped, are bracing for ernment — will be important for India’s prosper- ABOUT DANGERS Telangana Chief Minister K Chandrasekhara Rao the challenge of repayments to banks in the ous and healthy future,” the PM said, who was RESUME NORMAL WORK OF PREMATURE Waive interest and urged the prime minister to announce a big economic absence of clarity on moratorium from the seen wearing a cotton scarf as a face cover, as were All central ministers have been asked to resume LIFTING OF penalties on package for the states. For this, he suggested the RBI do Reserve Bank of India (RBI). Banks are some of the chief ministers. work in ministries from Monday and put together RESTRICTIONS P6 industrial loans for deficit financing by way of quantitative easing or print- offering fresh credit at above 8 per cent Modi said there seemed to be a consensus plans for the post-lockdown period to kick-start the six months to enable ing currency notes to the extent of 5 per cent of GDP. while borrowing funds from the RBI comes among the states on the extension of the lock- economy. Also, joint secretary and above rank officers MODI ASKS STATES industry to meet He asked the Centre to increase the states’ borrowing at 4.4 per cent. NBFCs and housing finance down by another two weeks. The chief ministers will resume work in respective departments, sources TO ALTER MANDI urgent costs limit (FRBM) limit to 5 per cent from the present 3 per companies have to give three-month demanded a relief package, besides more financial, said, adding that one-third of the essential staff cent. Citing the revenue loss, the chief minister asked the RULES FOR DIRECT Economic package moratorium to their consumers. fiscal and medial support from the Centre. members in every ministry need to be present. PTI DELIVERY P5 Union government to facilitate deferring loan instal- for MSMEs Turn to Page 4 > ments of states by at least six weeks. Turn to Page 4 > COMPANIES P2 Bengal Chemicals starts MARKET THOMSON REUTERS/ production of HCQ How Covid crisis MOVEMENT CORE COMMODITYINDEX Highway work Bengal Chemicals & Pharmaceuticals (BCPL), The fall of the Sensex has been Commodityfutures have India’s oldest pharmaceuticals company, too sharp and sudden this year tumbled amid oil volatility said it had again obtained a licence from the is different from in safe zones Directorate of Drugs Control, West Bengal, to THEN NOW THEN NOW manufacture hydroxychloroquine (HCQ). Founded in 1892, BCPL had ceased 2008 meltdown likely to be producing HCQ decades ago because of cash constraints and labour issues. United States President Donald Trump had It’s been a sudden slump in economic exempted touted HCQ, an anti-malarial drug, as a game-changer in the fight against Covid-19. activity, as against a slow burn then MEGHA MANCHANDA New Delhi, 11 April KRISHNA KANT COMPANIES P2 Mumbai, 11 April RUPEE vs DOLLAR GROWTH IN BANK'S Construction of highways is likely to be exempted Wipro to startearnings The domestic currency has NON-FOOD CREDIT even as the country gears up for another two weeks of season forIT industry The decline in economic activity because of the Covid-19 lock- not declined as much as it Growth had been declining in lockdown. The decision is being taken after several dis- down is unprecedented in India’s history. Its impact on the real did in 2008 the recent past, has fallen further tricts asked the central government to allow con- Wipro will kick-start the earnings season or productive sectors of the economy is worse than what was struction of roads as it’s essential for any economy, for the information technology industry witnessed in the aftermath of the 2008 Lehman crisis, THEN (Inverted scale) NOW (Inverted scale) THEN (YoY chg %) NOW (YoY chg %) according to officials. next week. This had so far been done by its which had reached its peak in the month of “Some districts have said that areas which are away larger peers — Tata Consultancy Services September 2008. from urban centres and where there have been min- 29.0 25.8 25.9 and Infosys. Wipro will announce its fourth The collapse may appear similar in both 26.0 imal to zero Covid-19 cases may be exempted from the quarter results and annual financial cases, but the reality is different. The 2008 23.1 lockdown and construction activity should be statements on April 15. economic crisis was a slow burn, and events, allowed,” a person in the know told Business Standard.