Union Budget 2021-22 to be presented on February 1
The Union Budget for 2021-2022 will be presented on February 1. According to PTI, the Cabinet Committee on Parliamentary Affairs (CCPA) has said the Budget will be presented on February 1 and President Ram Nath Kovind will address a joint sitting of both the Houses of Parliament on January 29.
Telecom dept likely to issue a notice for spectrum auction this week
The Department of Telecom is expected to issue the notice for an upcoming spectrum auction this week that will have timelines and rules to bid for airwaves. The Union Cabinet approved a proposal for the auction of 2,251.25 Megahertz (MHz) of spectrum worth Rs 3.92 lakh crore at the base price on December 17, 2020.
The DoT was expected to issue the Notice Inviting Application (NIA) for the auction in December but due to an emergency engagement of a top authority, it got delayed.
RBI imposes a penalty on Bajaj Finance for rule violations on recovery practices
The Reserve Bank of India (RBI) on January 5 imposed a monetary penalty of Rs 2.50 crore on Bajaj Finance Limited for violation of rules pertaining to recovery and collection methods.
This penalty has been imposed in exercise of powers vested in RBI under the provisions of the Reserve Bank of India Act, 1934, taking into account the failure of the company to ensure that its recovery agents did not resort to harassment or intimidation of customers as part of its debt collection efforts and thereby failing to adhere to the aforesaid directions issued by RBI.
HDFC’s individual loan disbursements rise 26 pc in the December quarter
Mortgage firm HDFC Ltd on Monday said its disbursements in the individual loan category have grown by 26% during the third quarter ended December 2020. The individual loan business continued to see improvements during the December quarter, HDFC Ltd said in a regulatory filing. Disbursement growth over the corresponding quarter of the previous year was 26 percent. For the nine months ended December 31, 2020, individual loan disbursements stood at 86 percent of the levels in the corresponding period of the previous year.
IndusInd Bank posts 3.2% quarterly growth in net advances
Private lender IndusInd Bank has registered a 3.2% quarter-on-quarter (q-o-q) growth in the net advances in the December quarter, according to provisional data released by the bank on Tuesday. However, the loan growth remained flat during the quarter on a year-on-year (y-o-y) basis. The lender has also managed a 5% quarterly growth in deposits during the December quarter of the current fiscal. On a y-o-y basis, the deposits saw double-digit growth of 10.56% in the December quarter.
Brent oil rises to highest since February after Saudi Arabia output cut
Brent oil prices rose on Wednesday to the highest since February after Saudi Arabia agreed to make bigger cuts in output than expected during a meeting with allied producers, while industry data showed U.S. crude stockpiles fell last week.
Brent crude rose as much as 0.6% to $53.94 a barrel, the highest since Feb. 26, 2020. It was at $53.79 a barrel at 0147 GMT and gained 4.9% on Tuesday. The reductions agreed by Saudi Arabia were included in a deal to persuade other producers in the OPEC+ group to hold output steady.
With coronavirus infections spreading rapidly in many parts of the world producers are trying to support prices as demand takes a hit from new lockdowns being put in place.
Indian steelmakers have raised product prices effective 1 April to factor in rising raw material costs
State-run Steel Authority of India, world’s No. 8 Tata Steel, India’s No. 3 producer JSW Steel, Ispat Industries, and secondary steel maker Uttam Galva have all announced price increases for April.
The price hike is driven by cost on account of coke, iron ore and ferrous alloys.
Iron ore prices have surged more than two-fold in the last 12 months on strong demand from China and a recovery in Europe and the United States to near $160 a tonne.
Tata Steel to develop GreenPro Ecolabel to help steel sector reduce carbon emission
Tata Steel has embarked on developing a GreenPro framework, GreenPro Ecolabel, to manufacture steel rebars, a first of a kind initiative in India, that would help the steel sector reduce the carbon footprint while manufacturing steel products.
The company has joined hands with the CII green business center to develop the framework that offers the Ecolabel program, enabling end-users to buy steel having the lowest environmental impact.
The use of green or low carbon materials has the potential to reduce emissions due to the construction and dismantling of buildings by up to 50%- 70% by 2050.
From performance cars to SUVs and sedans, Audi lines up new cars for India comeback
Audi is looking to make a comeback and is lining up a series of cars – right from small SUVs and sedans, to sports cars and electrics as the company plans fresh investments and new models to gain back the luxury market share which it once dominated.
It is planning to localize certain models, such as the Q2 mini SUV. Also on cards is the much-anticipated eTron electric SUV (and other electric derivatives) which will be priced upwards of Rs 1 crore. Inline are also the Q3, Q5, and Q7 SUVs, the RS5 and S5 performance cars, and the A3 entry sedan.
Rising demand for an owned mode of transport, coupled with decadal low auto loan rates, has resulted in the return of a waitlist for car buyers for up to 10 months.
Dealers said the inventory pipeline has been wiped clean with December being a good month. Hence, because of a gap in the demand and supply, the current situation will take several weeks more to ease out.
Passenger vehicles original equipment manufacturers dispatched 18% more vehicles year-on-year in December. At 2,76,500 units, which was the highest December sales in the last decade.
Bharat Earth Movers Limited bagged an order for the supply of High Mobility Vehicles from the ministry of Defence with an approximate value of Rs 758 Cr. These High Mobility vehicles would play a key role in the logistics management of the Indian Army.
Indian Bond Market:
Indian firms raised a record Rs 7.67 lakh cr in local bond sales
Record low-interest rates prompted many large companies to prefer the local market to that overseas. Excess liquidity in the system paved the way for the record high local bond sales in a single calendar year.
|Year||Funds Raised (Rs. in Crs)|
Covid-19: Boris Johnson announces new national lockdown in UK for 6 weeks
UK Prime Minister Boris Johnson on Monday announced a six-week lockdown for England’s 56 million people, including the closure of schools, after a surge in coronavirus cases brought warnings that hospitals could soon face collapse.
Britain, one of the worst-affected countries by the global health crisis, with over 75,000 deaths has been pinning its hopes on the mass vaccination drive. But more than 50,000 positive cases were recorded across Britain every day for the last week.
With the new lockdown, all non-essential shops will be shut across England, along with bars, restaurants, and other hospitality and entertainment venues.
FII and DII data
Foreign institutional investors (FIIs) net bought shares worth Rs 986.3 crore, whereas domestic institutional investors (DIIs) net sold shares worth Rs 490.03 crore in the Indian equity market on January 5, as per provisional data available on the NSE.
The drastic changes that we have seen in the world economy due to the global spread of COVID-19 need no introduction. You would have already witnessed the volatility of the market. As we all have seen in news reports, around 25% of the workforce have lost their jobs and many others have witnessed pay cuts. Country Lockdown has caused some small businesses to shut down permanently and others have witnessed a fall in business. All this has led you to have an indepth look at your own investment portfolio.
As coronavirus continues to spread and there is no vaccine that is being invented yet to cure this disease, it is crucial that we take steps to keep our personal finances in place. You might be having a question as to how we need to do it? In this blog, we will discuss all those important steps that you need to take, to make sure you are securing yourself for the coming months and also for the years to come.
Let us discuss these steps in detail.
1. Manage your cash flow – First and most important step is to revisit your cash flow. When I say cash flow, I mean income and expenses. You need to review your current income and also estimate your future income for at least 2 years. Put some thought on how the lockdown has impacted your current income and till when this effect will last.
It is suggested that you try to explore more sources of income. For example, if you are good in maths, you can start teaching maths to students. Explore your talents and start monetising it. It is always good to have more sources of income rather than depending on just one. Apart from income, put some serious efforts in reducing your expenses, if possible to the extent of a pay cut, if any.
2. Create an Emergency Fund – Next step would be to create an emergency fund. It is important to be prepared for any uncertainty which may come. If you had an emergency fund and you used it already during current lockdown owing to pay cut or job loss then refill it at the earliest.
The amount in the Emergency fund should be equal to 6 to 12 months looking at current uncertain times. This fund can be created by utilising the money from non performing funds. Also, you can utilise your vacation fund for this purpose.
3. Protect yourself and family from this novel Coronavirus – Another important aspect of financial planning is having adequate health insurance policy. If you already have one, check if that amount is adequate if anyone or all the family members become COVID-19 positive. While selecting a health insurance plan, it is important to check inclusions and exclusions in the policy.
4. Protect your family’s expenses from future uncertainties – Not only health Insurance but also you should have an ideal life insurance cover. This is because your family’s goal like children’s education should not be affected in your absence. There are multiple types of life insurance policies, you should choose the one that suits your needs the best. If you have a limited budget, then term insurance would be the best bet.
5. Debt Management – If you have too many loans and most of your income is going towards your EMIs, then now is the time to streamline your debt. Do not take any more loans until and unless it is the only option left. Start creating a plan to pay off your high interest loans.
6. Short term Goals – After doing all of the above, you should be focussing on short term goals first which are critical. For e.g, if your child’s education is 2-3 years down the line then you should be focussing on how to create that fund or refill that fund before jumping in for long term goals. It is highly recommended that you review all of your short term investments.
7. Delay Discretionary goals– It is suggested that you keep all your discretionary goals at hold for some time till this COVID-19 situation eases out. Postpone your goals like buying a second home, vacations, buying a Car etc. Instead, if you have already invested some amount towards these goals, you can utilise this corpus either towards emergency corpus or short term goals.
8. Long term Goals – Long term goals will be the last to review. You should also know that the investment you made for these goals are long term in nature so no need to worry about short term volatility. You can get help from a financial advisor to get your portfolio reviewed.
9. Organise your finances – Last but not the least, you should organise your paperwork. You may update nominee details in banks, insurance plans, Mutual fund investments etc. If you have not linked your aadhaar with PAN, you may do it now. It is further suggested to switch to digital platforms wherever possible so that your time is saved.
Read More :- Importance of Insurance amid COVID-19
So these were some of the pointers that you should keep in mind while doing your Financial Planning amid this pandemic. If you are one of those who make active decisions to review their investments, there’s something you definitely need to double-check based on the above points. You can always consult a financial planner to make this process easier for you.
Given the widespread outbreak of the coronavirus (COVID-19) around the world, radical actions are being taken by the governments and authorities. Country lockdown owing to this pandemic has caused widespread impacts on employment, supply chains, capital markets and more. It is now a necessity for the businesses to take actions. This is required to mitigate risks, tackle immediate priorities and ensure business continuity and stability.
Situations like this made us realise how important it is to have a contingency plan in place to deal with such extreme circumstances. Contingency planning is having a plan B to keep you afloat. A contingency plan is a proactive strategy that describes the course of actions or steps the management and staff of an organization need to take in an unforeseen event that could happen in the future. It plays a significant role in business continuity, risk management and disaster recovery.
Given below is a checklist for you to set up a contingency plan for your business:
- Set up a cross-functional Task Force: Establish a task-force that reports directly to the CEO regarding all the business spread across world wide and about every department including HR, IT etc. This team will assess the impact of the disaster on the business, check if the business is compliant to the government guidelines and of course cashflow planning, including business continuity and workforce management.
- Protect your Employees: Monitor the WHO guidelines to safeguard your employees from this virus. The employer need not only look after the employee in terms of health but also look after him in good faith which is owed to the worker. The employer can also provide for the necessary equipment for safety and offer flexible working hours.
- Supply Chain Disruptions: The supply chain and the logistics of any business are bound to get hampered. Therefore one has to evaluate and make corrective plan for the potential supply chain disruptions and factory/warehouse closures. You should consider short-term changes to supply chain and logistics models.
- Financing Needs: Ensure the availability of liquid cash to storm the weather and implement proactive cash management measures. You can also check if you are eligible for any subsidies or other financial support from the government or central bank with regard to financial losses incurred due to COVID-19.
- Customer Handling: Companies need to update customers about delays and adjust customer allocations to optimize profits on near-term revenue or to meet contractual terms.
- Insurance: As far as your insurance is concerned you will have to take care of the following:
- Review insurance policies to assess potential recoveries for any business disruption.
- Ensure notifications to insurers are made as required under existing policies.
- Review and clarify needs for additional insurance coverage as the situation develops.
- Data Privacy: Start by identifying the potential data privacy/leakage risks due to disruption of business-critical functions. Then update technical and organizational measures ensuring a hundred percent assurance to the customers, vendors and employees regarding the safety of their private data.
Given these difficult times, the business functions can take a serious toll, but you can curb the impact by undertaking these emergency measures.
Note: This checklist is for general information purposes only and should not be construed as legal advice or any other advice on any specific facts or circumstances.