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Thursday, June 6, 2019

economic news of india - world economic news - economics news for students - indian economy news

economic news of india - world economic news - economics news for students - indian economy news


Can RBI policy be the blueprint for world's central banks?

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By Daniel MossIndia is becoming the gold standard for monetary policy in Asia, if not the world. While global markets are giddy from hints that the Federal Reserve may cut interest rates, India's central bank has been easing since February. Just as important, the Reserve Bank of India has been very consistent in its message: Borrowing costs need to come down to juice growth. Passive inflation and the central bank's full tank of gas make the case to cut even stronger. After Thursday's trim, the benchmark rate is 5.75%.The RBI's approach is correct. There's no point targeting inflation if growth is waning and the very thing you're aiming at is dormant. Thursday's quarter-point reduction in the benchmark rate, the third in as many policy meetings, underscores the theme: "Growth impulses have weakened significantly,'' according to the central bank's statement. "A sharp slowdown in investment activity along with a continuing moderation in private consumption growth is a matter of concern.'' The RBI made clear that "global economic activity has been losing pace" & declared its stance to be "accommodative." Much focus is rightly given to Beijing's efforts to pull both fiscal and monetary levers; as big as India's economy is, China's is much larger. But the People's Bank of China tends to be opaque and is trying to thread the needle between buttressing the economy and fretting about financial stability. Japan, meanwhile, gets plenty of attention as a pioneer of unconventional policies – yet its economy remains a parable about how booms can end in tears. And remember back in February, the consensus was that the Fed had just paused before resuming hikes. Few serious observers believe that now.So give Governor Shaktikanta Das his due. The RBI's rate cut in February was risky – few economists anticipated it – but appropriate. The signaling power was immense. Officials followed that up with another reduction in April. The outlook has only deteriorated since then. Central banks in Malaysia, the Philippines, Australia and New Zealand concurred. India was, and still is, ahead of the curve – all the more remarkable given emerging markets tend to follow the Fed. Even the chaos surrounding the withdrawal of most banknotes from circulation in 2016 has slipped from the foreground.It's important to separate the manner of Das's arrival as chief and the job he's done since getting there. Prime Minister Narendra Modi's team clashed with Das's two immediate predecessors, which cast a whiff of politics over their exits. Das was drawn from the ranks of India's bureaucracy rather than the central bank. It was clear the government didn't want any freelancing.For a while there, it seemed like the RBI chief's office was a revolving door. Given Das's success in monetary-policy development and execution, India would do well to keep him around. Quite right, too, given all the predictions for the country's economic greatness. India needs this to succeed.

Sebi has a plan to keep rating cos in check

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Mumbai: Amid corporate delinquency, investor losses, and blame game, India's capital market regulator is examining a 'default probability' framework to keep credit rating agencies on their toes.The plan, which was recently discussed with large rating companies, involves the Securities & Exchange Board of India (Sebi) assigning probabilities to different baskets of rated debts.A default probability, for instance, of one per cent for A-rated debt papers, would mean that a rating company tracking 500 A-rated papers would be pulled up if the number of defaults exceed five in a year. The regulator would similarly set probabilities for various ratings — triple A, double A, triple B, double-B etc."Once implemented, India would probably be the only market to have such default probabilities fixed by the regulator," a person familiar with the matter told ET. "The impact of such a rule would be a reduction in the number of top-rated companies which may not be a bad thing. In fact, number of triple-A companies in India is far more than that in the US or some of the advanced markets," said a senior fund manager. An implicit sovereign guarantee for a large number of state-owned companies which regularly raise debt and the backing of business houses or groups to several companies result in higher ratings on securities issued or loans taken by these entities. 69682211 Since the IL&FS default that was followed by a spate of rating downgrades by several notches in quick succession, rating agencies have come under the lens of regulators as well as SFIO, the central investigative agency. IL&FS bonds were downgraded from 'triple A' (or, highest rating) to 'D' (or, default grade) in just 40 days. About 25,000 companies are rated in India, of which half are estimated to be below 'investment grade'.Inrecent years, rating agencies have become fiercely competitive. In the absence of any regulation on the fees they charge, there is often a wide variation in their fees. Some of the agencies have even deviated from the indicative fee laid down by the Reserve Bank of India (RBI) for rating of bank loans. The rating business has expanded after RBI's decision that banks would have to maintain higher capital for unrated loans.In reducing conflict of interest & make rating agencies more independent, one of the suggestions that has cropped up is compulsory rotation of rating agencies every five years — the kind of regulation that applies to auditors, some of whom have come under the glare of government enforcement agencies investigating the IL&FS fiasco. "This is being resisted by some of the large agencies on the grounds rotating agencies would disturb the long-term data on a bond issuer's rating movements. But does historical data really matters?," said a source.

Why Bengal is still a challenge for Modi

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By Nilanjan MukhopadhyayFor much of the 20th century, Bengalis prided themselves on Gopal Krishna Gokhale's observation, 'What Bengal thinks today, India thinks tomorrow.'The Lok Sabha polls and subsequent developments in West Bengal demonstrate this being reversed to 'What India thought yesterday, Bengal thinks today'. This is borne by the surge in BJP's support in the state — 18 seats out of a total of 42 with a vote share of 40.25%. The party is now the primary opposition to Mamata Banerjee's ruling Trinamool Congress (TMC), and in line to form the next state government in 2021— or before.West Bengal, in many ways, was the 'final frontier' for the BJP, as well as its affiliates wedded to Hindu nationalism. The state, after all, was considered the 'crucible of modernity' via the Bengal Renaissance in the 19th century, providing early leadership to social reform & later national movements. Undivided Bengal witnessed major communalisation through the 1940s, eventually ending in the terrible 'Great Calcutta Killings' and riots of 1946-47.A Soft Fadeout… But after the initial post-Independence flourish, the Bharatiya Jan Sangh-Hindu Mahasabha combine became politically extinct, suggesting that in the subsequent decades, the people had ruled Hindutva, in any of its forms, to be politically incorrect and against the modernist spirit. Anger at the post-Independence dream going awry was expressed through radical politics of the Naxals and West Bengal remained, post-1960s, the perennially romanticised 'alternate utopia'.Even when people eventually voted the Left out after a 34-year period in 2011, social equations remained unchanged, criminalisation of public life continued unabated, and the state was left with little but its 'glorious past'. Yet, people stayed proud of their 'secular fabric' remaining intact, claiming they are Bengalis first, Hindus or Muslims later.During the Ram Janmabhoomi agitation in the early 1990s, VHP mobilisation was limited in the state. Consequently, BJP was identified in West Bengal as a party of the Hindi heartland and any occasional electoral success was chiefly due to tactical alliances. So, political acceptance in the state has been BJP's crowning glory in these elections. It would be unwise to conclude that the vote for BJP is symptomatic of the state being now on the brink of another communally polarised rupture.Yet, it would be naïve not to acknowledge that the vote for BJP indicates a significant 'coming out' of 'Hinduness' in the state. This is testimony that the Hindu vote continued to exist even after the death of Jan Sangh founder in the early 1950s but remained untapped. But in its success also lies the challenge ahead before BJP.The nationwide rise of BJP's vote share from 31.3% in 2014 to 37.4% in 2019 is principally on the back of major Hindu consolidation. The Centre for the Study of Developing Societies (CSDS) post-poll survey estimated that compared to 36% of all Hindu voters in 2014, this time BJP has secured 44% of their vote. When one factors the vote share of allies, the support for NDA among Hindus rose to 51%. But the growth within West Bengal is exponential: from 21% in 2014 to 57% today.This dramatic rise of 36-percentage point support among Hindus is matched by the corresponding growth of TMC support among Muslims. In 2014, the Muslim vote was divided between TMC (40%), Left Front (31%) and Congress (24%). In 2019, the support for TMC among Muslims has risen to 70%, suggesting that polarisation on religious lines has risen manifold. Chief minister Mamata Banerjee's statement — 'Jo humse takraega, woh choor choor ho jayega' (Those who cross our paths will be shattered into pieces) — on Wednesday during Eid celebrations, suggests that she remains committed to further consolidation of her Muslim vote base.…Or Was It? BJP can't respond to such provocative politics in the way it mostly does in other states since its stakes are higher in Bengal. If the party leadership allows BJP state leaders to respond in the same coin, the state could well be sucked into a cauldron of communal violence.This may be superficially beneficial, as it may open the window for central intervention. But it will negatively impact Modi's prime ministerial pursuit of his economic and international objectives. Social strife in a major state is the last issue that the PM wants to tackle when he wants to press ahead with job creation, reviving growth and increasing global clout.BJP's spectacular performance in Bengal, with the state's above-national average Muslim population, also shows the sufficiency of the Hindu vote. The redundancy of the Muslim vote raises the spectre of further alienation of the community. However, this verdict must not be read as just a Hindu vote in response to Banerjee's courtship of extreme elements within the Muslim community. The BJP votes cast was also due to the 'Modi factor' in which he was the Dada standing up to Didi.Banerjee once symbolised the middle-class working girl straight out of Ritwik Ghatak's 1960 classic film, Meghe Dhaka Tara (Cloud-Covered Sky). Today, many of West Bengal's Hindus have judged her as a failed deliverer. Aspirations, too, have changed, and in Modi, many in West Bengal, like in the rest of India, see the realisation of their dreams.Tempering anti-Muslim belligerence is Modi's big challenge. His project to secure vishwas (trust) of the minorities can be inaugurated in West Bengal. The final frontier will then be his first victory podium.

That’s IT, over to you folks: Premji on retirement

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Bengaluru: Chairman Azim Premji led by example, and for Wipro employees, he was a professional who backed his staff to take the decisions that would go on to make the IT services provider what it is today.In fact, Premji credited the thousands of Wipro employees who had shaped and built a successful, ethical and socially-responsible organisation in the letter announcing his retirement.The company may have faced obstacles, but Premji trusted his colleagues and backed them as long as they had done enough homework."The first thing is his intensity. He has a never-say-die attitude. I have never seen anything like that," said Dilip Ranjekar, CEO of Azim Premji Foundation, who has worked with Premji for over 43 years. "The second thing is his professionalism. He is a proprietor, yet extremely professional. He ran the organisation on merit and facts."Ranjekar added: "The other thing is his extremely middle-class values. There is no flashiness, no flaunting. He knows that what he does or doesn't do affects the organisation. He always ran a tight ship at Wipro."Wipro created the largest number of executives who went on to become successful managers across the IT industry. "The freedom he gave helped us to become better decision makers," says a former CEO, who had worked in Wipro.KK Natarajan, the chairman of Mindtree, who was a Wipro campus hire in 1981, said Premji's rigour and attention to detail was a great lesson that he applied in his journey as a manager. "He also gave space to his people. There is nothing you cannot disagree with Mr Premji. You can disagree with him in a public forum, and once a decision is taken, he doesn't carry anything into a future interaction," Natarajan, who quit Wipro to help cofound Mindtree, said.Premji also inspired him to be more philanthropic, Natarajan said, which meant not just writing a cheque, but addressing the most difficult problems, such as primary education, and delivering results."What stands out about Azim Premji is that he is a very humane person. He never asked us to do anything which we would ever be ashamed of," said Sudip Banerjee, Independent Director of LTI, who spent nearly 25 years with the company and last served as president of its enterprise solutions business. "It was a real privilege to work with him when the IT services industry started taking off from India. I always admired his sense of integrity and fairness."Banerjee recalled how Premji had once driven him half-way home and had hailed a cab for the rest of his journey. "I said, do not embarrass me anymore.""Azim Premji's extraordinary leadership of Wipro for over 50 years, his pioneering role in the global IT industry, and his unique contribution by demonstrating that businesses can be successful while being committed to integrity, have made him a legend," Abidali Z Neemuchwala, CEO of Wipro, wrote in a letter. He said, one of the "greatest privileges of my life has been to work with Azim Premji." 69683961

Vying for steel assets: Did Arcelor really pay more for Essar Steel?

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In an exclusive interview with ET, Sajjan Jindal, chairman of JSW Steel, the largest Indian steelmaker by market capitalization, said that his budget for the alloy-maker may have been just about half of what the European steelmaker is paying.Going by that valuation yardstick, it might not be incorrect to say that even JSW Steel could be overpaying for Bhushan's assets.ArcelorMittal's bid for Essar Steel's 10 million tonne (MT) asset values it at Rs 50,000 crore. JSW Steel has offered almost Rs 20,000 crore for Bhushan Power's 3 MT capacity. Tata Steel paid Rs 35,200 crore for Bhushan Steel and Power's 5.2 MT capacity.Analysts believe that all the bidders may have ended up paying more. The steel cycle has reversed over the past few months and this could stretch the balance sheets of the acquirers. Steel prices have corrected more than 15% from their peaks of 2018 and are expected to further fall. According to analysts, fair valuation, given the industry situation and falling earnings, would be 5.5 to 6.5 times EV/EBIDTA, depending on the assets.As Essar Steel is unlisted, its financials are not publicly available. However, analysts estimate that while acquiring its assets, EBIDTA/ tonne of Rs 7,000- Rs 7,500 must have been assumed. The products are low-value (hot rolled coil) and the iron ore mines are not close to the plants.Of Essar's 10 MT, 8.5 MT is fully operational and the remaining 1.5 MT may need some capex. Assuming these calculations, ArcelorMittal has paid 7.8 times EV/EBIDTA, which is expensive in a downcycle. ArcelorMittal's earnings have dropped to less than a third in just three quarters to $537 million in March.But analysts also believe that this acquisition would give Arcelor the much-needed meaningful entry into India, justifying the premium. The capacity gives Arcelor a 10% market share.Tatas considered EBIDTA/tonne of Rs 10,000 for Bhushan, analysts said. This acquisition was valued at 6.8 times EV/EBIDTA, which too appears steep. Bhushan has higher value-added products, mainly for cars. However, it has been affected due to slowdown in auto demand.JSW Steel may be able to achieve Rs 8,000 per tonne EBIDTA, given proximity of iron ore mines for the 3 MT acquired capacity. Valuation in this case comes to 7.7 times EV/ EBIDTA. However, JSW has also got large land parcels, which it could use to expand into the north.

Telcos seek auction of 26GHz, 28GHz bands for 5G usage

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KOLKATA: Phone companies want the government to auction spectrum in the 26 GHz and 28 GHz bands for 5G services in the upcoming sale, and suggested that the telecom department (DoT) urgently seek the sector regulator's views on pricing these premium airwaves.The Cellular Operators Association of India (COAI), in a recent letter to telecom secretary Aruna Sundararajan, said India must emulate the US, South Korea, Japan and Hong Kong, who have already auctioned 28 GHz spectrum and started deployments without waiting for the International Telecom Union (ITU) to identify the band, given the increasing ecosystem around this millimeter wave spectrum. Such a scenario, it said, would enable India to leverage "the concerted global 5G ecosystem developments around this band," which is considered ideal for ultra-fast wireless broadband services.The COAI, which represents Vodafone Idea, Bharti Airtel and Reliance Jio Infocomm, has also urged secretary Sundararajan to send an early "reference to the Telecom Regulatory Authority of India (Trai) to include the 28 GHz band along with 26 GHz in the latter's upcoming discussion paper on pricing of 5G spectrum bands" in the run-up to the next auction.Earlier this week, new telecom minister Ravi Shankar Prasad set a 100-day deadline to start 5G trials, and said the next spectrum auction, which would include 5G airwaves, would be held within calendar 2019.COAI's director general Rajan Mathews said India "must particularly recognise the importance of the 28 GHz 5G frontier band and push for its early adoption as it can transform local manufacturing opportunities".

Despite RBI rate cut, market looks for more growth impetus

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Kolkata: Economic expansion and inflation forecasts for the current fiscal have been written down by the Reserve Bank of India after growth rate fell to a five year low, but a modest quarter point policy rate reduction raised skepticism whether the action is enough to lift investments.With monetary transmission remained less than half for the first two rate cuts this year amid weakening investment and falling consumption demand, the market is now looking for some more impetus for growth."A 25 bps repo rate cut along with the change in policy stance to accommodative may mean that over a period of two months we might get a total of 50 bps cut including the current one," said B Prasanna, group head for global markets at ICICI Bank. "Besides, if RBI decides to keep liquidity positive then that would act as a catalyst for animal spirits in the economy. This would prompt banks in aggressively buying assets with the surplus money leading to better transmission in money market rates fuelling higher corporate investment."The benchmark 10-year bond yield closed lower at 6.93% from an intra-day high of 7.012% following RBI signals. HDFC Bank chief economist Abheek Barua said the announcement of a committee to review the liquidity framework could trigger the movement towards 6.8% in the short-term. "Global growth worries, increasing expectations of a rate cut from the US Federal Reserve, and decline in the oil prices could also support the momentum trade towards 6.8% in our view," he said.State Bank of India chairman Rajnish Kumar said the decision to lower the Basel III leverage ratio would augment the lendable resources of the banks. Besides rate cuts, the RBI will also be focusing on ensuring higher monetary transmission to revive growth.This is the first time this year that all the Monetary Policy Committee members voted in favour of 25 basis point rate, and also for a change in the policy stance to accommodative from neutral, in a reflection that the falling investment have cast a bigger shadow on the economy.The MPC observed that growth impulses have weakened significantly as reflected in a further widening of the output gap compared to the April 2019 policy. "A sharp slowdown in investment activity along with a continuing moderation in private consumption growth is a matter of concern," RBI said.The central bank has lowered its GDP projection for 2019-20 20 basis points to 7% while the path of CPI inflation is revised upwards to 3.0-3.1% for first half of the fiscal from 2.9-3% and revised downwards for the second half to 3.4-3.7% from 3.5-3.8% projected earlier."Although headline inflation is expected to remain contained in first half, we expect it to harden in the second half. Further, we believe that real GDP growth will weaken further to about 6.5% in FY20," said Nikhil Gupta, chief economist at Motilal Oswal Financial Services.

RBI’s 3rd rate cut shows growth slowdown is real, say St experts

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The Reserve Bank of India on Thursday cut interest rates by 25 basis points in a widely expected move, while also changing its monetary policy stance to "accommodative" after the economy grew at its slowest in over four years, Reuters reported.Repo is the rate at which the central bank lends to commercial lenders, and the cut signalled a drop in cost of funds for corporates and individual borrowers though domestic banks have not been very efficient in quickly passing on the benefits of past rate cuts to their customers. This was third rate cut in a row by the central bank, and the move was largely in line with Street expectations. Here's how Dalal Street analysts and economists reacted to the third straight rate cut:Naveen Kulkarni, Head of Research, Reliance SecuritiesWhile the rate cut of 25 basis points was in line with our expectations, concerns over growth and challenges regarding liquidity continue to linger. The market is not necessarily cheering the rate cut as it had already factored in and something more was expected.Ajay Bodke, CEO, PMS at Prabhudas LilladherNo specific measure has been announced that would provide immediate relief to the much-troubled NBFC sector. In the presser RBI Governor did reiterate multiple times that RBI will do whatever it takes to ensure financial stability of the system. Jittery markets are facing a crisis of confidence with respect to the precariously perched NBFC (including HFCs) & fixed-income mutual fund sectors. It looks highly unlikely that these broad, motherhood statements will assuage market concerns. Specific & targeted solutions to rescue these besieged sectors alone can stem the panic and stop a further contagion. Inadequately forceful response to the ILFS bankruptcy has already created fear psychosis among market participants which is getting compounded by an almost blaśe regulatory treatment towards other troubled groups like DHFL, Essel, ADAG etcRupa Rege Nitsure, Chief Economist, L&T Financial HoldingsToday's policy actions are perfect and give a clear signal that the RBI will continue with easy monetary conditions until it sees a definite improvement in growth-inflation mix. Transmission will happen meaningfully if the banking system witnesses surplus liquidity conditions for a sizeable period and if the RBI undertakes confidence boosting measures for the NBFC sector.Devendra Pant, Chief Economist, India RatingsBy changing its stance, the RBI has communicated to the market that the growth slowdown is real. A working group on liquidity is a welcome step. With system liquidity in surplus mode in the past few days, lending rates should come down. The forthcoming budget is the real test for the government. The government has to find money for social spending and undertake some hard reforms to improve tax collection and adhere to the fiscal consolidation trajectory. Garima Kapoor, Economist, Elara CapitalDrawing comfort from consistent softness in inflation trajectory, MPC cut policy repo rate for the third time this year to support benign growth conditions. A shift in the stance to accommodative is welcome as it will pave way for transmission to lending rates, which so far have been inadequate. We expect MPC to cut rates by an additional 50 bps through the year while continuing to fine tune liquidity support through a combination of OMO purchases, forex swap and CRR cut.Romesh Tiwari, Head of Research, CapitalAim The downward revision of GDP growth reflects concern over slowdown and supports shifting of RBI stance to accommodating policy. We expect banking shares to remain strong in the midterm while NBFCs may further correct before consolidating. Largely market will not be driven by this news. Current valuations do not justify Nifty and Sensex and are due for a correction soon. Now all the eyes will be on the Budget session which may bring some big measures for revitalizing the economy. Short term target for Nifty is 11,880 and breaking below that may take the Nifty 11,660 levels in the medium term.Shishir Baijal, Chairman & Managing Director, Knight Frank IndiaThe first rate cut in the newly elected government regime is certainly a welcome step, especially for the real estate sector.The cash-crunched NBFCs will definitely benefit from inflow of capital which will in turn benefit developers as well as home-buyers. NBFCs have been facing a liquidity crisis and this has negatively impacted their loans to real estate, including construction finance. Besides capital infusion into this important financier segment, this rate cut will also improve the home-buyers affordability and stimulate housing demand at this critical juncture.Anagha Deodhar - Economist, ICICI SecuritiesPurely from 'inflation-targeting' perspective, the MPC has enough room to cut rates. Moreover, the GDP numbers show that growth is faltering. Given the challenging domestic and global environment, growth is likely to remain weak in H2FY20. Although supporting growth is not the MPC's primary mandate, in the current environment it has assumed greater significance. Given the lower growth and inflation expectations, it was apt to change the stance to 'accommodative'. It indicates that more rate cuts are on the table – possibly in the next policy itself.Deepthi Mathew, Economist, Geojit Financial ServicesIt was not a surprising move, as there was a lot of pressure on the RBI for a rate cut, with the GDP growth registering one of the lowest rates in the last quarter of FY 2018-19. The market has even expected a rate cut by 50 basis points. The Central Bank has also revised the CPI inflation to 3.0-3.1 percent from the earlier 2.9-3 percent for H1FY20. The rising food prices are one of the major factors for the upward revisions in the CPI inflation rate. Food and beverages registered a growth rate of 1.38 percent in April, with vegetables prices registering a growth rate of 2.87 percent in April from a negative growth rate of 1.49 percent in March.Anuj Puri, Chairman - ANAROCK Property ConsultantsFor the housing sector, this rate cut may only send out positive notional signals -- its real gain can be realised only if banks pass on the benefits to actual homebuyer borrowers. The apex bank will need to ensure that this actually happens at the ground level since there has been little evidence of such transmissions in the recent past. In the current scenario bereft with rising NPAs and the ongoing NBFC crisis, things look quite bleak at the moment. The reason why most banks are not really able to pass on the benefits of RBI's rate cuts is that their deposit rates are still very high. This ultimately makes reducing interest rates to borrowers unfeasible Joseph Thomas, Head Research, Emkay Wealth ManagementThe RBI policy is exactly on the lines expected by most of the market participants. The repo rate cut of 0.25% and the change of stance from 'neutral' to 'accommodative' is key to supporting the sagging economic growth. The projected growth has been lowered to 7%. The policy also has broad indications of more actions on the liquidity front from the RBI in the coming days. This also confirms the commitment of the central bank to better transmission of the rate-cut effects through liquidity.Mustafa Nadeem, CEO, Epic ResearchThe RBI is now keen on looking to improve growth trajectory since the ongoing liquidity crisis has hurt the cost of borrowings, and further stressed the system. The distress in rural demand and near-monsoon prediction has also put some stress since it can push inflation a bit higher. The trajectory stated by RBI is at 3 - 3.1%. The accommodative stance is now focused on the liquidity and concerns over it. The cost of borrowing is now one concern that needs to be stressed and banks would /should likely to pass the benefit to end consumer. RBI has also put a stance further that it may take necessary actions that will help to keep financial stability. (With inputs from Reuters)

Such a long journey: Azim premji and Wipro

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1945 Wipro incorporated as a cooking oil company Western India Vegetable Products Ltd in Amalner, Maharashtra.1946 Company went public1966 After his father, MH Hassam Premji's death, Azim Premji, when he was 21, came back from Stanford University and took charge as the company's chairman1981 Wipro changed focus and concentrated on booming technology industry.1982 Entry into IT products business.1989 Established a joint venture with GE.1990 Entered into third party R&D and IT services business.1995 Premji starts taking correspondence classes to complete his engineering degree from Stanford2000 Lists on NYSE and enters into2002 Company becomes fastest wealth creator in five years (1997-2002 BPO business)2004 Achieves $1 billion in revenue.69684128 2008 Company appoints Girish Paranjpe and Suresh Vaswani as co-CEOs.2011 Experiment with co-CEOs fails; TK Kurien elevated as CEO.2013 Demerges its Diversified Business into a separate company as Wipro Enterprises Ltd. Wipro Ltd to focus exclusively on IT Business.2015 Introduces Wipro Digital having key capabilities acquired through DesignIt and Appirio2016 Abidali Neemuchwala takes over as CEO, Kurien retires2016 Acquires HealthPlan Services, a technology and business process as a service provider in the US health insurance market69684134 2016 Ranked 755th on the Forbes Global 2000 list2017 Launches new brand identity2018 Loses the tag of third-largest IT services firm to rival HCL Technologies2019 Azim Premji announces his decision to step down as Chairman and MD.