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Tuesday, December 31, 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


Ratan Tata & Cyrus Mistry take their fight to the TCS boardroom

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MUMBAI: Tata Sons will move the Supreme Court to seek early interim relief from the tribunal order reinstating Cyrus Mistry ahead of the TCS board meeting scheduled for January 9 to consider Q3 results. The holding company is likely to file an appeal on January 2 although a hearing is possible only when the SC opens on January 6 after the winter break, said people with knowledge of the matter.Legal experts said the Mistry family-owned firms that hold stakes in Tata Sons can oppose an interim stay, which could force the Tatas to re-induct Cyrus Mistry pending a final order. The National Company Law Appellate Tribunal (NCLAT) ruled on December 19 that Mistry should be reinstated as director of Tata Sons and three group firms — TCS, Tata Industries and TTSL (Maharashtra). Mistry had been ousted as Tata Sons chairman in October 2016 and was eventually succeeded by N Chandrasekaran.Tata Sons and TCS declined to comment. The Shapoorji Pallonji Group also didn't comment."To the best of our knowledge, reinstatement of Cyrus Mistry as a director on Tata Sons and the other companies as per the NCLAT order has not been complied with and that itself is contempt of court," said a legal representative close to the Mistrys.Tata Sons may Avoid Board Meeting"They (Tatas) sought a stay on chairmanship, but reinstatement as director was (to be) 'forthwith'," said the legal representative close to the Mistrys.Listed companies generally have a window of 45 days to declare results after the end of each quarter, according to Sudip Mahapatra, partner at law firm S&R Associates. That gives TCS time until mid-February to obtain relief from the Supreme Court."In my view, it is unlikely that Tata Group will risk calling for a board meeting before getting any relief from the Supreme Court," said Mahapatra.The holding company will avoid holding a board meeting, said one of the persons. 73053299 "We do not wish to complicate issues at the moment by doing so," said one of them. "There is no emergency situation. It is a matter that will be pursued legally."Tata Global Beverages Ltd is the only Tata company that has held a board meeting — to announce a CEO — following the NCLAT decision, since there was no immediate legal impact on it.Tata Sons will have to seek an immediate stay on the entire order from the Supreme Court, said Ashish K Singh, managing partner of law firm Capstone Legal. Postponing a scheduled board meeting can look like a deliberate attempt at not complying with the order, he said."Cyrus Mistry can make an application before the NCLAT for seeking specific directions for compliance with the order passed in the upcoming board meeting," he said. "In any case, the matter is listed on an application filed by the ministry of corporate affairs on January 2, seeking modification of the order at NCLAT on a different legal issue. Nothing stops either of the parties to approach the appellate tribunal for clarification at that time."TATA SONS BOARD ASSURES CHANDRATata Sons board members have assured chairman N Chandrasekaran of their support through messages and calls, said executives aware of the matter. The chairman has held a meeting with group CEOs to apprise them of developments and allay concerns.Tata Trusts nominee Venu Srinivasan, Ajay Piramal and Farida Khambata were on the Tata Sons board at the time of Mistry's ouster. Since then, Chandrasekaran, Harish Manwani, Bhaskar Bhat, Ralph Speth and Saurabh Agrawal have joined the holding company's board. None of them responded to emails from ET."The NCLAT order hasn't dismissed the board, so the directors should continue to perform their duties," said Shriram Subramanium, founder and MD of InGovern Research. "However, they should avoid any big decisions that have significant impact as there is an element of uncertainty to the role of the executive chairman."The board should meet and discuss the impact and implications going ahead, said a corporate governance expert. There should be a continuity plan irrespective of what the SC decision could be, he added. A senior TCS executive said the order adds to uncertainty for the company, which may see its US business impacted by the upcoming presidential elections.The Registrar of Companies (RoC) has moved the NCLAT to implead itself in the case. The RoC, which is part of the corporate affairs ministry, has sought deletion of the words "illegal" and "with the help of the RoC" that were used by the tribunal in its order. The appellate tribunal is yet to hear the matter.

The documents you'll need to clear NPR test

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NEW DELHI: The government will launch a drive instructing the "head of the family" to make available details of 21identifiers during enrolment in the National Population Register (NPR). These will include Aadhaar, driving licence, Permanent Account Number (PAN) and voter ID card, ET has learnt.The nationwide NPR is to be held from April 1 to September 30 to record the 'usual residents' of the country who have lived in an area for the previous six months or more, or persons who intend to stay there for the next six months or more, according to an official notification.Several state governments have stalled work on the NPR, alleging that it's the first step toward a National Register of Citizens (NRC), which will be used in conjunction with the Citizenship Amendment Act to disenfranchise Muslims.PM Narendra Modi has denied any such intent. Home minister Amit Shah says the NPR data will not be used for an NRC and that there has been no decision on conducting an NRC as of now.The questionnaire for NPR 2020 is likely to continue with the controversial column on "date and place of birth of parents" besides other fields. A senior government official explained to ET that this question didn't have any sinister connotations.Ensuring Data Security"These details were recorded during the previous NPR enumeration as part of a single question on parents," the government official said. "This time, we have a separate question on the place of birth to ascertain if they are staying with the children or not."Congress politician and former minister of state for home affairs Ajay Maken has criticised the government's move to modify the NPR form. "As MoS Home in 2010, I supervised the NPR! But Modi-Shah 2020 NPR is totally different," he tweeted on December 25. 73053355 Officials said the Registrar General of India (RGI) will further ensure that the data collected using mobile apps by enumerators and supervisors are secure. Only those with verified credentials can download the app using logins and passwords provided by the census commissioner, they said."The mobile IMEI number will help us to identify the enumerator who is using the app and recording the data," one of the officials said.NPR was first rolled out by the Congress-led United Progressive Alliance government along with the 2011 Census. In 2011, details such as name, date of birth, sex, marital status, educational qualification, occupational activity, father and mother's name, nationality (as declared) were among the questions asked of respondents.According to the home ministry, NPR data has been previously provided to the governments of Tamil Nadu, West Bengal and Manipur for the Sarvam scheme that tracks subsidies and the public distribution scheme (PDS). Rajasthan has been given NPR data for the Bhamashah women's empowerment scheme.In 2015-16, the NPR database was updated in all states and Union Territories, except Assam and Meghalaya."The electronic database of more than 1.19 billion usual residents of the country has already been created under NPR," said the official. "The number of questions were 14 then, but were subsequently increased to 21 during the 2019 pre-test that was held from April 12, 2019, to September 30, 2019. The pre-test was held in 74 districts during which demographic details of around 3 million individuals were collected."

India has a new CDS, but is he the real boss?

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New Delhi: The government has amended the charter of the defence secretary to specifically include making of "defence policy" alongside his primary responsibility of "defence of India", while carving out a new Department of Military Affairs (DMA) to be headed by the country's first Chief of Defence Staff.In a gazette order dated December 30, 2019, the government amended its relevant Rules of Business to remove four specific responsibilities from the Raksha Vibhag (Department of Defence), headed by the Defence Secretary, to bring them under the DMA but at the same time specified his primacy on policy matters and big ticket capital acquisition."Defence of India and every part thereof including defence policy and all such acts as as may be conducive in times of war to its prosecution and after its termination to effective demobilization," states Entry 1 of the amended charter for the Raksha Vibhaag.In effect, sources said, any files related to defence policy issues would still have to pass through the Defence Secretary, thus removing ambiguity in how the CDS would function with the Department of Defence.The other alteration is in the entry on defence purchases where the earlier formulation of "procurement exclusive to the defence services" has been replaced by "capital acquisition exclusive to the defence services". Other procurement has come under the CDS-led DMA. This essentially means that new big ticket weaponry purchase will still be within the ambit of the Defence Secretary.Further, the National Defence College and the Institute of Defence Studies and Analysis have been specifically brought under the Defence Secretary on grounds that their "remit is broader than military matters". At the same time, the order also amends the Transaction as well as Allocation of Rules of Business to include the DMA or the Sainya Karya Vibhag as the fifth new department in the Defence Ministry along with the departments of Defence, Defence Production, Defence Research and Development as well as Ex-Servicemen Welfare.Each of these departments are headed by a Secretary-ranked officer, except the DMA where the CDS will be of cabinet secretary rank just like the three service chiefs. They all will report directly to the Defence Minister.The four elements removed from the direct ambit of the Defence Secretary are the three armed services, their respective headquarters, the territorial army and works relating to the Army, Navy and Airforce.These make up for four of the eight key responsibilities of the CDS-led DMA. The fifth is non-capital purchases while the other three relate to promoting jointness in procurement, training and operations besides encouraging use of indigenous equipment.

Apps push Cisco’s data centre business forward

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PUNE: Cisco's data centre technologies business is growing on the back of increased demand for applications across sectors in India, its country manager said.Many factors are responsible for the growth of apps, primarily a surge in digital transformation initiatives across industries in the country.This is driving the company's multi-cloud platform business, particularly its offerings for application modernisation and data centre network along with application centric infrastructure (ACI) for connecting the core to the edge, said Trideep Roy, country manager-data centre, Cisco."With workflows moving to the edge, as companies evolve in their digitisation journey, workloads are more distributed. The complexity of the overall journey is driving a lot of these applications," said Roy.In industries such as manufacturing and oil and gas, the growth of internet of things and sensors for collecting data is increasing the speed of adoption of apps, while a lot of traditional companies are also creating apps for employees as part of their digitisation process."The transformation is mainly in software to help companies adopt and application modifications are fundamental for any digital transformation, whether it's a traditional company, manufacturing or retail," he said.Data centre technologies is the second-largest business for the $52-billion technology firm globally as well as in India and contributes about 30% to total revenues."The last three years have been good for us and we expect to continue to grow in high double-digits going forward," he said.After the banking, financial sector and insurance (BFSI) space, the public sector is the fastest-growing unit for the company, driven by power and utility modernisation and smart city initiatives.The company expects more growth to come from both these segments, as well as smaller businesses."All the segments are growing, but at different rates. The challenge is the reach – how do we leverage partners to be able to reach all the SMEs in India," Roy said.

Turmoil in the banking landscape: Year of Reckoning for PSU Banks

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For more than two decades, public sector banks managed to stave off competition due to inherent trust people had in them due to government backing. As the next generation comes in with different attitude, are they equipped to serve them? They need to reinvent to survive, say Saloni Shukla & Ashwin ManikandanFor half a century since bank nationalisation, public sector banks dominated the credit flow to the economy with more than four fifths of the share. In 2019, the golden jubilee year, private lenders accounted for Rs 69 of the every Rs 100 loan. The tables are turning.As the economy adjusts to the new reality like technology-driven financial services, a robust bankruptcy law, vanishing 'phone banking' and plethora of competition from unknown quarters, the Goliaths of Indian finance face the formidable task of remaining relevant — and surviving momentous change.It's not just the availability of capital that provides strength to give out loans, but the skills and attitude to face the digital world, where customer convenience trumps everything else, that would determine their survival. It would not be just deposits that flow because of the comfort of government backing, but also efficient lending that holds the key to their relevance. 73053818 The collapse of lending, lack of vision and risk aversion combine to present a muddy picture of state-run banks akin to other state-backed businesses, such as BSNL, Air India and BHEL, which failed to keep pace with advancements only to turn a pale shadow of their pasts."Unless government-owned banks put their house in order, they would see a much faster decline in the coming years and I highly doubt they will be able to face the onslaught of competition from new-age banks," said Kuntal Sur, partner, financial services, PwC.Data shows that government-owned banks' share of total credit outstanding fell to 60% at the end of March 2019 from 75% in 2012.State-run banks disbursed Rs 59.2 lakh crore at the end of March 2019, up 4% or Rs 57 lakh crore, from a year earlier, shows RBI data. By contrast, private sector peers loaned Rs 33.2 lakh crore in 2019, up nearly a fifth from Rs 26.6 lakh crore a year ago.CHANGING SCENARIOPublic sector banks remained the first port of call for anyone who sought banking services as they evoked trust and faith among people. The state-owned majority stakes in these banks led to the belief that every penny in those banks is safe.Furthermore, private sector banking services gained notoriety where hidden charges were slicing away customers' funds without them even realising. There was a belief that state-run banks did not indulge in such practices.But as the younger generation gets prominence and technology helps improve services, the millennial customer doesn't bother about whether a bank is stateowned or private."Public sector banks have to realise there is a new generation of consumers that expect a certain standard of service that perhaps these competitors are providing — be it in terms of the digital experience or technology or branch banking services," said K Cherian Varghese, former MD, Union Bank of India.That even the seniors are moving into the digital age reflects the surge in electronic payments. Of the total small-ticket retail transactions worth Rs 10.32 lakh crore in March 2019, the share of online deals has risen to 61%, up almost three time from 24% in March 2016.In the payment space, digital wallets and non-bank UPI players had a share of 14.7% in March 2019, up from 1.6% in the same period in 2016. Also, the key function of payments is being facilitated by the likes of Paytm and PhonePe reducing the reliance on bank platforms.TALENT TO COMPETEThe biggest differentiator has been the lack of specialised manpower at state-owned banks. The government recently announced its intent to fill middle-management positions at state-run banks and offer them a longer tenure. Nearly 70% of mid-management staff at PSU banks are over 50 years of age, suggesting their retirement isn't too far away."While the PSBs have all the necessary infrastructure in place such as the core banking systems and Internet banking solutions, it is the workforce that needs to be reoriented and retrained," said Varghese. "The attitude needs to change, there is a need for a groundlevel training exercise conducted by the government to bring the PSB staff and bankers in tune with the market best practices."State-owned banks are also constrained due to compensation they offer and senior PSU executives time and again have demanded they be allowed to hire a portion of their recruits the way private sector banks do, so that the best talent pools are also available to them."PSU banks need to change their people strategy, put more feet on the street, redeploy its current manpower, train them for specialised functions, initiate lateral hires for specific functions and every bank depending upon their strength needs to bring in a board-approved, marketlinked compensation," said Sur.LEGACY DRAGState-run banks, because of their ownership structure, were functioning more like a ward of the government rather than like businesses that are supposed to make profits. These lenders became tools for the governments to carry out their welfare agenda.Also, cronyism led to many decisions being influenced and led to unviable projects getting funded. The last two decades saw an enormous surge in funding private infrastructure projects that led to a huge pile up of bad loans.Data showed that PSU banks had a gross NPA ratio of 11.6% at the end of March 2019 and contributed nearly Rs 7.39 lakh crore to the total bad loan pile of Rs 9.36 lakh crore. Private banks on the other hand had a GNPA ratio of 5.3% with Rs 1.83 lakh crore as bad loans in value terms.As state-run lenders got hobbled by bad loans, private banks stepped on the gas to secure more deposits. Stateowned banks' total deposit base was at Rs 84.86 lakh crore at the end of March 2019, up from Rs 82.62 lakh crore a year ago. Private banks' deposits rose 25% to Rs 37.7 lakh crore.But public sector banks believe that weakening metrics are just temporary and that they could roar back."The RBI data on total loans take into consideration both retail and corporate, and if the latter grows we will be back to our market share of more than 70%," said Mrutyunjay Mahapatra, chief executive of Syndicate Bank. "There also has been a lot of cherry-picking in the consumer, LAP, MSME sector ... which is why you see this divergence. But, as the problems ease, the size and reach will help us to ride the growth."Meanwhile, private lenders are turning more efficient than their state-owned peers. The spreads for PSU banks were at 2.8% for 2019 and 2.5% for 2018, while private banks had a spread of 3.6% in both 2019 and 2018, RBI data showed. Their cost of funds and cost of deposits were almost identical.BABY STEPSPSU banks are also facing fierce competition from not only private peers but also from small finance banks, fintechs, non-bank lenders and micro-finance institutions. And the competition is only getting fierce.Small finance banks showed impressive growth with their total loans growing to Rs 59,491 crore versus Rs 34,879 crore, a growth of more than 70% in a year.Banks which own the customers and have their deposits saw their control in the overall transactional pie gradually reducing to 81% from 92.7% three years ago.As PSU banks realise that they could not do it on their own, they are looking to partner with these nimble firms in their catch-up act."Well, obviously we see competition from a host of entities that are trying to get a piece of PSUs' original hometurf, especially in rural and semiurban areas," says Mahapatra of Syndicate Bank. "Going forward, we see use of technology and collaboration as small finance banks, MFIs, non-banks are good at this, we see huge opportunities in coorigination."But these banks also face sudden distractions. Last year was significant in the sense that the government moved to consolidate many banks that would make them bigger, but not necessarily more efficient and competitive.The government decided to merge 10 state-run banks into four, including Oriental Bank of Commerce and United Bank of India with Punjab National Bank; Andhra Bank and Corporation Bank with Union Bank of India, opening up a new opportunity."Merger has given them a chance to redefine them," says PwC's Sur. "Today, all of them are copycats of each other; better and bigger banks will bring in more capital, talented workforce and the power of the combined entity."While the process could slow them down as not all of them are on the same technology platform, there's hope of revival."With mergers playing out in 2020, the professionalisation of state-run banks will accelerate," said Mahapatra. "For the rank and file, it will be business as usual, it will be time consuming for the top management. But you will see staterun banks bearing the benefits of this merger in the times to come."This year would also see two private sector banks, ICICI Bank and Axis Bank, which where dragged down by bad loans, make up for the lost time.Mergers and government's investment of nearly Rs 3 lakh crore as capital in the past few years have ensured that they don't sink. But the field has gotten a lot more competitive that would force staterun banks to come up with new ways to survive."India is in the classic Darwinian mode of what I call survival of the fittest," said Uday Kotak, founder of Kotak Mahindra Bank.

Air India to seek clarity from state govt on its Nariman Point building

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MUMBAI: State-run carrier Air India will request the new Maharashtra government to clarify whether it is still interested in taking over its iconic building in posh Nariman Point, after the previous government had expressed interest to buy the property outright when it was put up for sale in December 2018.Air India had put the sale plan on hold following the move, but has ended up losing rent of about Rs 45 lakh per month on about 13,000 square feet, or one floor, in the 23-storey building. The rest of the space is occupied by various government and private enterprises. "We could not lease the space earlier as the Maharashtra government was supposed to take over the building. With the new government in place, we don't have any clarity yet, so it is better to rent out the space on short-term lease. A few tenants have shown interest and we will approach the new government for clarity and then lease the space," said an Air India official.The Enforcement Directorate and Reserve Bank of India were in talks to take up the space, but a final call will be taken by the civil aviation ministry.Officials said that a sale could fetch Rs 2,000 crore at current market rates. The airline is earning Rs 100 crore in rent annually for the entire building.The national carrier had taken the land on lease from state government and constructed the building, which has two basements, in 1970. Seventeen floors have been leased out to various firms and government departments including Bank of India, India Tourism, Income Tax, Service Tax and IT services provider TCS."The civil aviation ministry and Maharashtra government will decide on the sale part, but there has been co communication since the new government has taken over," said another Air India official.

Jeswani lists out sectors where you can get rich and stay rich

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The only four sectors where you can get rich and stay rich is consumer, financials, consumer tech, consumer pharma. Just be in these four sectors, says Amit Jeswani, CIO, Stallion Asset. Excerpts from an interview with ETNOW. Let us first talk about that connection between the macros and micros or rather the lack of it because for 2019, the one trend that that one could really spot was the fact that GDP growth really slowed down in India, but the market still managed to post double digit gains in 2019. So there is a sharp disconnect. How are you reading into this?Amit Jeswani: This is not a surprise. We are going through the largest consolidation ever. If there were 100 real estate builders in every city, we would be left with three or four real estate builders only. We had 16 telecom players four-five years back. Today, we have three telecom players. It is the same story in banks as well. So, India is not a growth market. It is more of a consolidation phase and that is the phase that we are going through. The stronger players are getting a lot more stronger. The midcap index has not done well. A few large companies are gaining market share from other players. Look at every industry, hotels. One hotel chain Oyo now owns 50% of your rooms. One airline company IndiGo has 50% share of the aviation market. The same trend is seen in every industry. Technology gets scale and big is getting better and that is theme. In a 4-5% GDP growth environment, it is very difficult for small players to gain market share from larger players. 2020 is going to be a year of consolidation where GDP growth will struggle unless the government comes out with strong measures and you will see this consolidation trend continuing. 73044782 Five NBFCs are lending in the market out of 50 in the game. So, these five NBFCs get disproportionate benefits. The same is happening with general insurance. Public sector general insurance companies are busy with crop insurance. If you can bet on these 15-20-30 stocks, my bet is you will do fine in 2020 as well. Of course, if the government comes with some TARP (Troubled Asset Relief Programme) like in the US, then you might see large midcap and smallcap rallies. But a large portion of your portfolio needs to be allocated till the growth is pretty high. For now, it is in those 20-25 names. Do you believe that the government has actually taken reins of sections of the market that will perform? First, we had the corporate tax rate cuts and now we are expecting a big boost for the NBFC space in Budget 2020. Today, government announced a Rs 100 lakh crore infrastructure pipeline. So, is it going to be a government-led market rally?I have burnt my hands being in B2G businesses. It is very difficult to make money in infrastructure companies. It is very difficult to make and retain money in infrastructure stocks. Nobody knows who is the largest infrastructure company in the US or in China or any country for that matter. The business model is such that you cannot get rich and stay rich. The only four sectors where you can get rich and stay rich is consumer financials, consumer tech, consumer pharma. Just be in these four sectors. This is what we do. 90% of our portfolio are in these four sectors. Financials have 45% weight, consumer tech has 20% weight and consumer pharma and consumer stocks have 15% each. These stocks will keep making money for you in the Indian market. You do not have to go anywhere. The government came up with Bharatmala also and there was so much hype about it. But what happened? In May 2018 Infrastructure Minister Nitin Gadkari announced a Rs 5-lakh-crore Bharatmala project. But in 2019, only Rs 20,000-crore orders came. In the first 7-8 months, only Rs 10,000 crore of orders have come. So the sector is very volatile for investors like us. We need predictable growth as that is where money is made. It is very difficult making and then holding on to your gains in infrastructure stocks. For me it is a very strong avoid. In an interview, you had said that the next bull rally is going to be a very clean one. While for the last decade or a bit more, we have been focussed on growth, the next one is going to be led by companies that have clean corporate governance practices and quality management among other things. Do you believe that could take leadership in the next bull rally?Auto was the leader of the previous bull market. Stocks like Eicher, Maruti made a fortune for investors. We rode that trend. Typically you do not buy the leader of the previous bull market. The previous bull market was led by autos and wholesale NBFCs. Today their performance is subdued. We do not see growth in autos happening very soon. The consumer sentiment is not so good. We would prefer buying other kind of consumer stocks. Auto is not on our priority list right now but we do not believe that the India opportunity is over. It is a good business going through a downcycle. We will wait for some signs of growth coming in before we buy the auto or auto ancillary pack. Now, we have zero positions to the best of my knowledge in any auto or auto ancillary companies. That is what we are betting on today.

Reliance Jio, 7 others to list CPs worth Rs 35,585 crore on BSE

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New Delhi: The BSE on Tuesday said eight companies have filed applications with the bourse to list their commercial papers for a total issue size of Rs 35,585 crore.The firms that have made the applications with the stock exchange are Reliance Jio Infocomm, Bajaj Housing Finance, Redington (India), ICICI Securities Primary Dealership, Motilal Oswal Financial Services, Hinduja Leyland Finance, CEAT and ICICI Home Finance Company, the BSE said in a release.After the process, the effective date for listing of commercial papers (CPs) with the exchange will be January 1, 2020, it added.The issue size is Rs 29,650 crore for Reliance Jio Infocomm, Rs 3,350 crore for Bajaj Housing Finance, Rs 950 crore for Redington (India) and Rs 700 crore for ICICI Securities Primary Dealership, the exchange said.Besides, Motilal Oswal Financial Services' issue size is Rs 600 crore, Hinduja Leyland Finance's issue size is Rs 235 crore and CEAT and ICICI Home Finance Company made applications for the issue size of Rs 50 crore each."Till date, 50 issuers have done 258 issuances of commercial papers and have successfully listed CPs of Rs 1,05,795 crores on the BSE. The weighted average yield of these issuances is 6.09 per cent with an average tenor of 138 days," the exchange said.CP is an unsecured money market instrument issued in the form of promissory notes that enables highly rated corporate borrowers to diversify their sources of short-term borrowing and provides an additional instrument to investors.Such instruments can be issued for maturities between a minimum of 7 days and a maximum of one year from the date of issue.CPs are usually issued at a discount from face value and reflect prevailing market interest rates.

Apps push Cisco’s data centre business forward

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PUNE: Cisco's data centre technologies business is growing on the back of increased demand for applications across sectors in India, its country manager said.Many factors are responsible for the growth of apps, primarily a surge in digital transformation initiatives across industries in the country.This is driving the company's multi-cloud platform business, particularly its offerings for application modernisation and data centre network along with application centric infrastructure (ACI) for connecting the core to the edge, said Trideep Roy, country manager-data centre, Cisco."With workflows moving to the edge, as companies evolve in their digitisation journey, workloads are more distributed. The complexity of the overall journey is driving a lot of these applications," said Roy.In industries such as manufacturing and oil and gas, the growth of internet of things and sensors for collecting data is increasing the speed of adoption of apps, while a lot of traditional companies are also creating apps for employees as part of their digitisation process."The transformation is mainly in software to help companies adopt and application modifications are fundamental for any digital transformation, whether it's a traditional company, manufacturing or retail," he said.Data centre technologies is the second-largest business for the $52-billion technology firm globally as well as in India and contributes about 30% to total revenues."The last three years have been good for us and we expect to continue to grow in high double-digits going forward," he said.After the banking, financial sector and insurance (BFSI) space, the public sector is the fastest-growing unit for the company, driven by power and utility modernisation and smart city initiatives.The company expects more growth to come from both these segments, as well as smaller businesses."All the segments are growing, but at different rates. The challenge is the reach – how do we leverage partners to be able to reach all the SMEs in India," Roy said.

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