Welcome to Daily Banking Digest, your premier source for the latest news and insights on April 08, 2024, focusing on banking, the economy, and finance. Our platform offers a comprehensive overview of the day’s most critical financial stories, market trends, and economic developments. Whether you’re a professional in the financial sector, an investor monitoring market movement, or someone interested in staying informed about the economic landscape, Daily Banking Digest provides reliable, up-to-date information.

Join our Telegram Channel for Daily PDF in your Inbox – Click Here

E-Way Bill Generation Surges to Record High in March, Boosting April Collections

E-way bill generation reached an all-time high of 10.35 crore in March 2024, driven by fiscal year-end closing, improved compliance, and increased consumption. This surge is expected to positively impact GST collection in April.

Wooden letters GST and money coin stack on red table background, financial concept

Key Points

E-way Bill Generation – Reached an all-time high of 10.35 crore in March 2024. – Second time crossing 10 crore in a month since its introduction in 2018. – Has been consistently above 9 crore since August 2023.

Reasons for Higher Generation – Linkage with e-invoicing and enforcement by moving squads. – Increased consumption and economic activity. – Improved compliance due to technology-driven scrutiny.

Impact on GST Collection – Expected to boost GST collection in April. – Increased consumption directly relates to higher GST revenues. – Intrastate e-way bills will contribute more to GST revenue than IGST.

India’s Coal Imports Surge by 13% in February

India’s coal imports surged by 13% in February 2024, reaching 21.64 million tonnes. This increase was driven by buyers replenishing stocks ahead of the summer season. Non-coking coal imports saw a significant rise, while coking coal imports also increased slightly. Overall, coal imports for the April-February period of FY24 rose to 244.27 million tonnes, a 7% increase compared to the same period in FY23.

Key Points:

Coal Import Rise in February 2024: – Coal imports increased by 13% to 21.64 million tonnes. – Non-coking coal imports rose to 13.77 million tonnes. – Coking coal imports reached 4.56 million tonnes.

Coal Import Trend in April-February 2024: – Total coal imports reached 244.27 million tonnes, a 7% increase. – Non-coking coal imports increased to 160.63 million tonnes. – Coking coal imports rose to 51.87 million tonnes.

Reasons for Import Increase: – Buyers replenished stocks ahead of summer. – Softening of seaborne prices.

Domestic Coal Production: – India produced 880.72 million tonnes of coal in April-February 2024.

India’s Steel Import Surge: Transition to Net Importer in FY24

India has become a net importer of steel for the first time in several years, with imports exceeding exports by nearly 1 million tonnes in FY24. This shift is attributed to a surge in imports and a slower-than-expected increase in exports.

Key Points:

Imports:

Imports increased by 38% YoY to 8.3 mt in FY24.
Non-alloyed steel imports rose by 70% to 6.2 mt.
Alloy and stainless steel imports declined by 9% to 2.1 mt.

Exports:

Exports grew by 12% to 7.5 mt in FY24.
Non-alloyed steel exports increased by 50% to 7 mt.
Alloy and stainless steel exports fell by 68% to 0.7 mt.

Reasons for Shift:

Depressed steel exports due to duty levy in FY23.
High domestic demand for steel.
Loss of market share in key overseas markets like the Middle East.
Competition from Chinese steel, especially in value-added products.

Government Measures:

Negotiations for “melt and pour” to curb imports.
Implementation of product-specific rules of origin to ensure genuine manufacturers receive FTA benefits.

Consequences of Incorrect Tax Regime Selection for TDS on Salary: Avoid Higher Tax Liability in April

The old income tax laws will continue to apply in the financial year 2024-25. Salaried individuals must inform their employers of their preferred tax regime (old or new) in April 2024. Choosing the wrong tax regime can lead to higher taxes being deducted from salary income.

Key Points

Tax Laws for FY 2024-25 – Old income tax laws continue to apply. – No changes announced in the full budget yet.

Tax Regime Selection for Salaried Individuals – Salaried individuals must inform employers of their tax regime choice in April. – New tax regime is the default. – Not informing employers results in tax deduction based on new tax regime slabs.

Tax Regime Comparison – New Tax Regime: – Basic exemption limit: Rs 3 lakh – Standard deduction: Rs 50,000 – Zero tax up to Rs 7 lakh – Limited exemptions and deductions – Old Tax Regime: – Basic exemption limit varies with age – Standard deduction: Rs 50,000 – Zero tax up to Rs 5 lakh – Numerous exemptions and deductions

Choosing the Right Tax Regime – Estimate taxable income for 2024-25. – Calculate tax liability under both regimes. – Choose the regime with lower tax payable.

Consequences of Wrong Tax Regime Choice – Higher taxes deducted from salary income. – Reduced take-home pay. – Need to claim refund in subsequent financial year.

Other Considerations – Employers may not allow tax regime switches during the financial year. – Capital gains and dividends can affect tax liability. – Compare tax liability under both regimes at the time of filing ITR.

Wipro CEO Thierry Delaporte Resigns; Srini Pallia, Head of Americas, Appointed as Successor

Wipro’s first expatriate CEO, Thierry Delaporte, is stepping down after three years, with company veteran Srini Pallia taking over. Delaporte’s departure follows an exodus of senior leadership and criticism of Wipro’s underperformance. The company’s revenue and profitability have declined under Delaporte’s leadership, and it has lost market share to HCLTech. Pallia, who has been with Wipro for three decades, is expected to bring stability and insider knowledge to the role.

Key Points

Exodus of Senior Leadership – Wipro has seen an exodus of senior leadership in recent years, including its CFO and chief growth officer.

Metrics Slide – Wipro’s revenues and profitability have declined under Delaporte’s leadership, with its operating margin narrowing from 19% to 16%.

Underperformance – Wipro has been criticized for its underperformance compared to peers and has lost market share to HCLTech.

Leadership Changes – Wipro CEOs have had relatively short tenures in the past decade, with Delaporte leaving a year before his term’s end.

Insider Appointment – Srini Pallia, a company veteran of three decades, is taking over as CEO, bringing insider knowledge and stability to the role.

India Aims to Lure $100 Billion Annually in Foreign Direct Investment to Woo Investors Diversifying from China

India aims to attract $100 billion in foreign direct investment (FDI) annually over the next five years, targeting businesses seeking to diversify away from China. Despite India’s rapid economic growth, foreign investment has not kept pace with domestic manufacturing. The government plans to ease FDI rules and implement measures to address geopolitical concerns and risk perception.

Key Points:

Target of $100 Billion in FDI: – India aims to attract an average of $100 billion in FDI annually over the next five years. – This target exceeds the annual average of $70 billion in FDI over the past five years.

“China Plus One” Strategy: – India is appealing to businesses seeking to hedge against geopolitical tensions by diversifying operations. – Companies like Apple and Samsung have increased manufacturing in India under incentives offered by the government.

Challenges to Foreign Investment: – Higher inflation and interest rates in developed nations have impacted foreign investment. – Geopolitical conflicts and risk perception about emerging markets have also contributed to lower investment.

Growth Opportunities in India: – India offers significant market growth opportunities in sectors such as electric vehicles, electronic goods, and consumer goods. – Penetration levels for these products are lower in India compared to global averages.

Government Initiatives: – The government plans to ease FDI rules to attract more investment. – The production-linked incentive program has boosted manufacturing and reduced import dependence. – New industrial corridors are planned to further support manufacturing.

Addressing Visa Delays: – The government is working to address delays in granting visas to Chinese vendors and professionals needed for machinery installation. – Short-term visas will be provided to Chinese technicians to support manufacturing growth.

Byju’s Faces Arbitration from Ranjan Pai Over Unpaid $42 Million Loan

Edtech giant Byju’s has breached loan terms worth $42 million and has been ordered by an arbitrator not to sell shares of a group firm. This latest setback comes amid allegations of mismanagement and financial struggles for the company.

Key Points:

Loan Breach: – Byju’s breached terms of loans worth $42 million. – The loans were to be repaid through a transfer of shares in Aakash Education, a Byju’s group company.

Arbitration Proceedings: – MEMG Family Office initiated arbitration proceedings against Byju’s for non-repayment of loans. – An arbitrator ordered Byju’s not to dispose of 4 million shares of Aakash Education.

Breach of Loan Agreement: – The arbitrator found that Byju’s had breached the loan agreement. – Byju’s claimed it could not obtain necessary approvals to transfer the shares in time.

Financial Struggles: – Byju’s has been unable to pay staff due to a legal dispute with investors. – The company’s valuation has plummeted from $22 billion in 2022 to around $250 million.

Allegations of Mismanagement: – Byju’s has faced allegations of mismanagement, leading to calls for the CEO’s ouster. – The company denies any wrongdoing.

Chapter 11 Bankruptcy: – A US unit of Byju’s filed for Chapter 11 bankruptcy in February. – The company listed liabilities in the range of $1 billion to $10 billion.

Election Commission’s Affordable Campaign Menu: Samosas, Chai, and Thalis at Fixed Prices

The Election Commission of India has set strict spending limits and food rates for political parties campaigning in the Lok Sabha election. These costs include expenses for food, equipment, and advertising. The overall spending cannot exceed Rs 95 lakh per constituency.

Key Points:

Food Rates: – Samosas and tea: Rs 10 each – Coffee and cold drinks: Rs 15 each – Vegetarian thali: Rs 100 – Non-vegetarian thali: Rs 180

Equipment Rental: – Microphones: Rs 300 per day – Loudspeakers: Rs 600 per day – Vehicles: – Bikes: Rs 300 per day – E-rickshaws: Rs 600 per day – SUVs (Tata Safari, Honda City): Rs 3,000 per day – Larger SUVs (Toyota Innova, Toyota Fortuner, Mitsubishi Pajero): Rs 3,200 per day – Autos: Rs 850 per day – Autos with loudspeakers: Rs 1,350 per day

Advertising: – Digital advertisements in multiplexes: Rs 463 per second – Print advertisements in newspapers: Rs 50 to Rs 290 per square centimeter – Drone camera rental: Rs 16,000 for 15 minutes – Helipad rental: Rs 2.3 lakh

Other Expenses: – Kachori: Rs 15 – Sandwiches: Rs 25 – Jalebi: Rs 90 per kilogram – Biscuits and water bottles: MRP

Vodafone Idea Board Approves Fundraise of Rs. 2075 Crore from Aditya Birla Group

Vodafone Idea (Vi) has approved a preferential share issue to raise Rs 2075 crore from an Aditya Birla Group entity. This is part of a larger Rs 45,000 crore fundraising plan aimed at reviving the cash-strapped telecom operator. The funds will be used to repay vendors, enhance the 4G network, and launch 5G services.

Key Points:

Preferential Share Issue: Vi to raise Rs 2075 crore from Oriana Investments Pte. Ltd., an Aditya Birla Group entity.
Issue Price: Rs 14.87 per equity share, including a premium of Rs 4.87.
Authorized Share Capital Increase: From Rs 75,000 crore to Rs 1,00,000 crore.
Fundraising Plan: Total of Rs 45,000 crore through equity and debt.
Equity Target: Rs 20,000 crore by June end.
Debt Target: Around Rs 25,000 crore from lenders.
Fund Utilization: Repayment of vendors, 4G network enhancement, and 5G service launch.

PMO Directs Commerce Ministry to Review Draft Investment Treaty Text

The Prime Minister’s Office (PMO) has requested the commerce ministry to review the model text of India’s bilateral investment treaty (BIT) to enhance ease of doing business. The move comes after India lost two international arbitration cases due to retrospective tax levies, highlighting the importance of robust investment protection agreements. The commerce ministry will consult experts and lawyers to suggest modifications to the model text, which has faced reservations from developed nations.

Key Points:

1. PMO’s Request to Commerce Ministry: – PMO has asked the commerce ministry to examine the model text of the BIT and suggest improvements.

2. Significance of BITs: – BITs protect and promote investments between countries. – India has lost arbitration cases due to the absence of strong BITs.

3. Internal Discussion on Model Text: – The commerce ministry will hold an internal discussion on the model text with experts and lawyers.

4. BIT as a Sticking Point in Free Trade Agreements: – BIT is a key issue in ongoing free trade agreement negotiations with the UK and EFTA.

5. India’s Treaty Cancellation History: – India has canceled 77 BITs due to misalignment with its interests.

6. Restrictive 2016 Model BIT: – India is renegotiating BITs using the restrictive 2016 Model BIT, which has faced criticism.

7. Arbitration Provisions: – The model BIT requires investors to seek local solutions for five years before arbitration, making it challenging for other countries.

8. Finance Minister’s Statement: – Finance Minister Nirmala Sitharaman has announced that India is negotiating BITs with various countries.

IRDAI Expresses Concerns Regarding Hinduja Group’s Bid for Reliance Capital

IRDAI has raised concerns over IndusInd International Holdings’ (IIHL) resolution plan for Reliance Capital, particularly regarding equity capital, debt financing, and FDI implications. The regulator has sought clarifications on these aspects to ensure compliance with insurance regulations and protect policyholder interests.

Key Points:

Equity Capital: – IRDAI has expressed reservations about the amount of equity capital IIHL is willing to invest in Reliance Capital. – The regulator believes that promoters should invest their own capital in insurance companies due to the sensitive nature of policyholder funds.

Debt Financing: – IRDAI has sought clarifications on the structure of IIHL’s borrowing plans, including interest rates, instruments, and subscribers. – The regulator is concerned about the potential impact of debt on Reliance Capital’s financial stability.

FDI Implications: – IRDAI has raised concerns about the potential for excessive foreign direct investment (FDI) following the transfer of Reliance Capital’s stake to IIHL. – The regulator has requested confirmation that the proposed FDI is permissible under existing laws.

Other Concerns: – IRDAI has also sought information on the proposed structure for acquiring Reliance Capital’s insurance subsidiaries. – The regulator has expressed apprehension about IIHL’s ability to meet future capital requirements of the insurance ventures.

Coworking Spaces Lease 3.1 Million Square Feet of Office Space in Q1 2023

Co-working center operators leased 31 lakh square feet of office space in nine major Indian cities during the January-March period, a 7% increase from the previous year. This growth is driven by the rising demand for flexible workspaces from corporates. Co-working operators have become the second largest contributor to the total gross demand for office spaces, taking up 22% of the total leasing during the quarter.

Key Points:

Growth in Co-working Space Leasing: – Co-working center operators leased 31 lakh square feet of office space during January-March, a 7% increase from the previous year.

Contribution to Gross Demand: – Co-working operators became the second largest contributor to the total gross demand for office spaces, taking up 22% of the total leasing during the quarter.

Preferred Cities: – Delhi-NCR, Chennai, and Bengaluru were the most preferred cities for co-working operators.

Major Demand Generator: – Technology companies directly taking space from builders were the biggest demand generator, with a share of 26%.

Emergence of Co-working Operators: – Co-working operators have emerged as a prominent force in the Indian office leasing ecosystem, consistently securing a share exceeding 15% in the past five years.

Future Outlook: – The demand for flexible spaces is expected to continue growing due to the popularity of hybrid work models.

Overall Office Space Absorption: – The gross absorption of office spaces stood at 144 lakh square feet during January-March across the 9 cities, a marginal decline of 3% annually.

Industry Outlook: – The office sector is expected to continue witnessing growth in 2024, driven by occupiers’ sentiments and pent-up demand.

Adani Group’s Ambitious Investment Plan: Rs 2.3 Trillion for Renewable Energy and Manufacturing Expansion

Adani Group plans to invest Rs 2.3 trillion in renewable energy expansion and manufacturing capacity by 2030, despite facing allegations from Hindenburg Research. The group aims to increase its renewable energy capacity to 45 GW by 2030, with 30 GW coming from a single project in Khavda, Gujarat. Adani New Industries Ltd will invest in expanding solar cell and wind turbine manufacturing capacity at Mundra.

Key Points:

Investment Plans: – Rs 2.3 trillion investment in renewable energy by 2030

Adani Green Energy Ltd (AGEL): – Rs 1.5 trillion investment in expanding renewable energy capacity to 45 GW by 2030 – 30 GW of capacity to be developed at Khavda, Gujarat – 6-7 GW of additional projects elsewhere in India

Adani New Industries Ltd (ANIL): – Rs 30,000 crore investment in expanding solar cell and wind turbine manufacturing capacity at Mundra – Solar cell and module manufacturing capacity to increase to 10 GW by 2026-27 – Windmill manufacturing capacity to double to 5 GW in three-and-a-half years

Khavda Renewable Energy Project: – World’s largest renewable energy project – Spread over 538 square kilometers – Will generate 81 billion units of electricity at peak – Can power entire nations like Belgium, Chile, and Switzerland

AGEL’s Existing Portfolio: – 10,934 MW of operating renewable energy capacity – Comprises 7,393 MW solar, 1,401 MW wind, and 2,140 MW wind-solar hybrid capacity – Powers over 5.8 million homes and avoids 21 million tonnes of carbon dioxide emissions annually

Response to Hindenburg Allegations: – Adani Group has refuted all allegations – Slowed some investment plans, paid down debt, and sold stakes to outside backers – Now back to rapid expansion plans.

RBI’s Economic Survey Signals Positive Growth Prospects

The Reserve Bank of India’s forward-looking surveys indicate improving macroeconomic sentiments across various sectors. Services, infrastructure, and industrial sectors anticipate further growth in business, employment, and demand. Bankers remain optimistic about loan demand, while professional forecasters predict real GDP growth of 6.5-6.9% for the next two years. Consumer confidence has also improved, with households expecting higher income and discretionary spending.

Key Points

Services Sector Outlook – Improved overall business situation, job landscape, and turnover in Q4 2023-24. – Higher cost pressures from input costs, but moderation in salary and finance costs. – Upbeat outlook for business situation, turnover, and employment in April-June 2024. – Positive sentiment on availability of finance.

Infrastructure Outlook – Optimism about business situation, turnover, and employment in Q1 2024-25. – High expectations for demand and employment till Q3 2024-25. – Anticipated rise in input costs and selling prices till end-2024.

Banking Outlook – Sustained loan demand across major sectors in Q4 2023-24. – Continued optimism on loan demand in Q1 2024-25, albeit slightly lower than the previous quarter. – Upbeat outlook on loan demand across major sectors up to end 2024.

Macroeconomic Forecast – Professional forecasters assign highest probability of real GDP growth in the range of 6.5-6.9% for 2024-25 and 2025-26. – Expected growth in real private final consumption expenditure (PFCE) and real gross fixed capital formation (GFCF) for 2024-25 at 6.0% and 8.4%, respectively.

Industrial Outlook – Improved demand conditions in Q4 2023-24, with optimism for Q1 2024-25. – Lower optimism compared to the previous quarter, which was partly seasonal.

Inflation Expectations – Moderation in inflation expectations for both three months and one year ahead. – Perception of current inflation remains unchanged. – Reduced share of households expecting price increases over the next three months and one year.

Consumer Confidence – Notable improvement in consumer confidence for the year ahead. – Higher optimism in all CCS parameters, leading to a rise in the future expectations index (FEI). – Improved sentiments on economic situation, employment prospects, and discretionary spending.

SBI Targets Operating Profit of Over ₹1 Lakh Crore by FY25

State Bank of India (SBI) aims to achieve an operating profit of ₹1 lakh crore in FY25. The bank has identified key execution priorities, including customer-centricity, focus on under-penetrated segments, and cost optimization. SBI projects a 14% growth in domestic deposits and advances for FY25. The bank targets a net interest margin of 3.35% for the whole bank and 3.58% for domestic operations. SBI aims to maintain gross non-performing assets (GNPAs) and net NPAs below 2% and 0.60%, respectively.

Key Points:

Operating Profit Target: – SBI aims to surpass ₹1 lakh crore in operating profit by FY25.

Execution Priorities: – Customer centricity and ease of banking – Focus on under-penetrated segments, new generation customers, and emerging sectors – Mobilization of low-cost deposits – Adherence to robust underwriting standards – Boosting non-interest income – Optimizing costs

Growth Projections: – Domestic deposits and advances projected to grow by 14% and 14.65%, respectively, in FY25. – Overall deposits and advances (including overseas operations) expected to grow by 13.50% and 14%, respectively.

Net Interest Margin: – SBI targets a net interest margin of 3.35% for the whole bank and 3.58% for domestic operations.

Asset Quality: – SBI aims to maintain GNPAs and net NPAs below 2% and 0.60%, respectively.

RBI Considers Guidelines for Small Finance Banks’ Transition to Universal Banks

The Reserve Bank of India (RBI) is expected to issue guidelines outlining the requirements for small finance banks (SFBs) to convert into universal banks. Currently, SFBs can apply for conversion after five years of operation, but there is no formal application process. The RBI’s move aims to address this issue and provide clarity on the upgradation process.

Key Points

Upgradation Requirements

Asset quality
Asset composition
Branch network
Corporate governance adherence
Leadership quality
Information technology capabilities

Current Licensing Norms

SFBs can apply for universal bank status after five years of operation.
No additional requirements or conditions are specified in the current licensing norms.

Dilemma on Application Process

Some SFBs are unsure whether a fresh application is required or if they should approach the RBI directly.
The lack of a formal process has stalled conversion applications.

Expected Circular

The RBI’s circular is expected to provide a clear application format and guidelines.
It will end the logjam and facilitate the conversion process.

Apprehensions from SFB Executives

Some SFB executives express concern that additional requirements may go against the spirit of the licensing norms.

SFBs Intending to Convert

Equitas SFB, AU SFB, Ujjivan SFB, and Jana SFB have indicated their intention to elevate to universal banks.
Informal discussions with the RBI have been ongoing for the past one to two years.

Labour Reforms to Feature Prominently in New Government’s Initial Agenda

The Bharatiya Janata Party (BJP) plans to prioritize the implementation of streamlined labor codes within its first 100 days in office. The codes aim to enhance worker protection, including unorganized workers, by introducing living wages, social security, and measures to increase women’s workforce participation.

Key Points:

1. Implementation Timeline: – Labor codes to be rolled out from April 1, 2025, to align with the business cycle.

2. Challenges and Monitoring: – Government working on addressing potential challenges and monitoring implementation. – Social security organizations under the labor ministry preparing for changes under the codes.

3. Slow Progress by States: – Codes on Wages, Social Security, Industrial Relations, and Occupational Safety passed by Parliament but implementation delayed due to slow progress by states.

4. Focus Areas: – Promoting female workforce participation through employer advisory and stakeholder discussions. – Transitioning from minimum wages to living wages in collaboration with the International Labour Organization. – Extending social security to unorganized workers through the e-Shram portal.

5. Role in Economic Growth: – Labor reforms seen as crucial for attracting investments in manufacturing and achieving the vision of Aatmanirbhar Bharat.

Tata Steel Secures Rs 2,675 Crore Loan from ICICI Bank for Three Years

ICICI Bank has extended a ₹2,675 crore loan to Tata Steel to refinance existing debt. Tata Steel has also raised ₹2,700 crore through unsecured bonds at 7.79%. The company aims to repay its debt obligations by H1FY24 and expand its steel production capacity to 40 mtpa by FY30. Tata Steel’s liquidity is supported by strong cash accruals and on-balance sheet liquidity. The restructuring of its UK operations is expected to improve its financial profile.

Key Points:

Loan from ICICI Bank: – ICICI Bank has provided a ₹2,675 crore loan to Tata Steel for a term of three years. – The loan will be used to repay existing debt.

Bond Issuance: – Tata Steel has raised ₹2,700 crore through unsecured fixed-rate bonds at 7.79%. – The bonds will mature on March 27, 2027.

Debt Refinancing: – Tata Steel has refinanced around 60% of its debt obligations for FY24. – The company expects to complete another tranche of refinancing by H1FY24.

Capacity Expansion: – Tata Steel aims to expand its total steel production capacity to 40 mtpa by FY30. – A large part of the balance capacity is likely to be brownfield.

Liquidity: – Tata Steel’s liquidity is supported by strong cash accruals and on-balance sheet liquidity of ₹10,800 crore. – The company has scheduled annual consolidated repayments of ₹16,000 crore in FY25.

UK Operations Restructuring: – The restructuring of Tata Steel’s UK operations is expected to improve its financial profile. – The UK government has agreed to fund up to GBP500 million of the planned capex. – Fixed cost overheads are expected to reduce from FY26, resulting in positive cash accruals in the UK business.

India Lags Behind Neighbors in Shifting Workforce to Non-Agricultural Sectors

India has lagged its South Asian neighbors in shifting its workforce away from agriculture. Despite a decline in the share of working-age Indians employed in agriculture, India’s employment ratio remains higher than most of its peers. The country has also experienced a divergent gender trend, with women’s employment ratio increasing while men’s has declined.

Key Points:

1. India’s Agricultural Employment Ratio – India’s share of working-age population employed in agriculture has declined from 63.9% in 2000 to 53.8% in 2019. – This decline is lower than that of Bangladesh, Bhutan, Sri Lanka, and Nepal.

2. South Asia’s Employment Trends – South Asian countries have experienced rising productivity but declining employment ratios since 2000. – India, Bhutan, Maldives, and Nepal have seen a decline in employment ratios, while Bangladesh, Pakistan, and Sri Lanka have seen an improvement.

3. Gender Trends in Employment – India and Bangladesh have experienced a divergent gender trend in employment. – Women’s employment ratio has increased in India, while men’s has declined. – This is attributed to factors such as the growth of the garment industry in Bangladesh and rising self-employment among women in India.

4. Impact of Economic Distress – The increase in self-employment and agriculture in India is seen as an indication of economic distress. – Increased competition and lower earnings have resulted from more women entering the self-employed sector.

5. Decline in Men’s Employment Ratio – India’s employment ratio for men has declined by 9.6 percentage points between 2000 and 2023. – This is the lowest decline after Nepal and Bhutan.

Unclaimed Shares in Public-Sector Banks: Potential Transfer to Investor Education and Protection Fund (IEPF)

The Finance Ministry is considering amending the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, to allow public sector banks (PSBs) to transfer unclaimed shares to the Investor Education and Protection Fund (IEPF) after seven consecutive years. This amendment aims to align the provisions of the Act with the Companies Act, 2013, and enhance transparency and accountability in managing unclaimed funds.

Key Points:

Proposed Amendment:
The Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, may be amended to allow PSBs to transfer unclaimed shares to the IEPF.
IEPF:
IEPF was established to promote investor awareness and protect their interests.
Unclaimed dividends and shares transferred to IEPF can be claimed by investors upon submission of required documents and verification.
Current Practice:
Private companies, including private banks, already transfer both unclaimed dividends and shares to IEPF.
Objective of Amendment:
To align the provisions of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980, with the Companies Act, 2013.
To ease business and reduce compliance burdens for businesses.
Consistency in Regulatory Practices:
The amendment seeks to bridge the gap and ensure consistency in regulatory practices across different statutes governing financial institutions.
Enhanced Transparency and Accountability:
The transfer of unclaimed shares to IEPF enhances transparency and accountability in managing unclaimed funds.
Seven-Year Period:
The seven-year period for the transfer of unclaimed dividends and shares is consistent with established legal principles, such as those outlined in Section 108 of the Indian Evidence Act, 1872.

Indian Railways Accelerates Electrification Drive, Aiming for 100% Completion by 2025

Indian Railways aims to complete the electrification of its broad-gauge network by the end of the current financial year, with 95% of the network already electrified. This initiative is part of the government’s goal to make Indian Railways the largest green railway network globally.

Key Points:

Target: – Indian Railways plans to electrify 100% of its broad-gauge network by the end of the financial year.

Progress: – 95% of the broad-gauge network has been electrified as of March 2023. – 7,188 km of tracks were electrified in FY2023-24, the highest in the history of Indian Railways.

Benefits of Electrification: – Reduced line haul cost compared to diesel traction. – Increased capacity for freight and passenger trains. – Reduced delays due to traction change.

Strategic Importance: – Electrification reduces the need for diesel imports, enhancing energy security. – It aligns with India’s climate action plan to become net carbon zero by 2030.

Challenges: – Electrification alone does not make the railway network green, as it relies on electricity generated from fossil fuels. – Indian Railways needs to shift to renewable energy sources to reduce its carbon emissions.