News and Updates - March 03, 2015

Pact binds RBI to inflation target

The Centre and the Reserve Bank of India signed an agreement under which the central bank will prioritise controlling price rise above the other objectives of the monetary policy — interest rates and the foreign exchange rate. The agreement formalised a policy the Reserve Bank had been following since January 2014, which is a significant development in monetary policy formulation championed by Governor Raghuram Rajan. The Reserve Bank is committed to bringing inflation below 6 per cent by January 2016. The consumer inflation target has been set at 4 per cent, with a band of plus or minus 2 percentage points, for the financial year 2016-17. Under the agreement, the central bank will be deemed to have missed its target if consumer inflation remains above the 6 per cent level for three consecutive quarters during 2015-16 or if it remains below 2 per cent for three consecutive quarters during the year 2016-17. The bank will have to explain to the government the causes, and what steps it intends to take to steer inflation back within a given time if it misses the target.

RBI report calls for raising foreign banks’ priority sector lending target

The Reserve Bank of India (RBI) released a report on revisiting priority sector lending (PSL) norms, which proposes an increase in the PSL target for foreign banks, while introducing new sectors into the definition of priority sector. As part of the suggestions, the working group says the PSL target for all banks, including foreign banks, should be at 40% of adjusted net bank credit. While domestic banks already lend 40% of credit to priority sectors, foreign banks lend 32%. Though the group has increased the PSL obligations for foreign banks, they have been given time to achieve the new targets. “Foreign banks with 20 and above branches may be given time up to March 2018 in terms of extant guidelines and submit their revised action plans. Other foreign banks with less than 20 branches, may be given time up to March 2020 to comply with the revised targets as per action plans submitted by them and approved by Reserve Bank,” the report said. The group also suggests that new sectors be added to the priority sector category, including exports and renewable energy.

Sun Pharma buys GSK’s Opiates business in Australia

India’s largest drugmaker Sun Pharmaceutical Industries Ltd signed an agreement with GlaxoSmithKline Plc (GSK) to purchase its Opiates business in Australia for an undisclosed amount. GSK Opiates business including related manufacturing sites in Latrobe (Tasmania) and Port Fairy (Victoria) and its portfolio products along with inventory will transfer to a subsidiary of Sun Pharma, the companies said in a joint statement. The product portfolio consists of poppy-derived opiate raw materials that are primarily used in manufacture of analgesics for the treatment of moderate to severe pain. All employees from both sites will also be offered employment by Sun Pharma with the Opiates business.

Namibian President Hifikepunye Pohamba wins Mo Ibrahim prize for African leadership 2014

Hifikepunye Pohamba, outgoing Namibian President has won the world’s most valuable individual award- Mo Ibrahim prize for African leadership for year 2014. Pohamba was born in 1935 in Namibia and was a former rebel who fought for his country’s independence. He has served as Namibian President two terms. For first time he was elected in 2004 and again in 2009. Now, he is due to be succeeded by elected President Hage Geingob.

Ola acquires TaxiForSure in $200-mn deal

Ola Cabs has acquired its smaller rival in the taxi aggregator space, TaxiForSure, in a $200-million (Rs 1,200 crore) cash and equity arrangement. This is the first major acquisition in the taxi-aggregator space in India. Ola, already a leader in the personal transportation market with a valuation exceeding $1 billion (Rs 6,000 crore) and over 100,000 vehicles on its platform, will become a stronger entity through TaxiForSure’s operator-led model. The latter operates in 47 cities, with at least 15,000 vehicles on its platform.

Jagmohan Dalmiya becomes BCCI President

Jagmohan Dalmiya has unanimously been elected President of the Board of Control for Cricket in India today. He became the BCCI president for the second term. He has previously served as President of the International Cricket Council for the three years from 1997 to 2000. Anurag Thakur, who was joint-secretary before has become the new secretary after edging out Sanjay Patel 15-14.

Ranjan Dhawan takes additional charge as MD & CEO of BOB

Ranjan Dhawan, the senior most executive director of the bank has been given additional charge of Managing Director and Chief Executive officer of Bank of Baroda. He will serve as the MD & CEO for three months. The post of full-time Managing Director and CEO has been vacant since July, when the then Chairman and Managing Director S S Mundra was appointed RBI Deputy Governor.

World’s first electric satellites successfully lifted off by SpaceX rocket

World’s first electric satellites were successfully lifted off by a Space Exploration (SpaceX) Technologies rocket from Cape Canaveral Air Force Station, United States. The rocket was carrying two all-electric commercial satellites built by Boeing. The satellites are owned by the French satellite provider Eutelsat and Asia Broadcast Satellite (ABS). Eutelsat’s satellite is part of its 35-member commercial network. It will provide services like mobile, internet, video and other communications services to expand its reach into the Americas. While, ABS new satellite will serve its customers in Africa, Europe and the Middle East.

Jagmohan Dalmiya becomes BCCI President

Jagmohan Dalmiya has unanimously been elected President of the Board of Control for Cricket in India today. He became the BCCI president for the second term.  He has previously served as President of the International Cricket Council for the three years from 1997 to 2000. Anurag Thakur, who was joint-secretary before has become the new secretary after edging out Sanjay Patel 15-14.

Arun Singh named as new Indian Ambassador to US

Senior IFS officer, Arun Singh has been named as new Indian Ambassador to US. Prior to this announcement he was serving as India’s Ambassador of France. Arun Singh will replace S Jaishankar, who was appointed as Foreign Secretary.

Chelsea lifted English League Cup

English Premier League leaders Chelsea defeated Tottenham Hotspurs by 2-0 in the final to lift the English League Cup trophy. With this win, Chelsea won five League Cups, matching Aston Villa for second-most behind Liverpool's eight.

Nadal lifts 2015 Argentina Open title

Rafael Nadal defeated Juan Monaco by 6-4, 6-1 to win the Argentina Open, lifting his first title of 2015. With this win, Nadal has won 65 titles in his career and has become the fifth player in the world in terms of number of titles won. He now stands behind Jimmy Connors (109), Ivan Lendl (94), Roger Federer (84) and John McEnroe (77).

Mufti Mohammad Sayeed sworn in as Chief Minister of Jammu & Kashmir

Mufti Mohammad Sayeed on 1 March 2015 was sworn-in as Chief Minister of Peoples Democratic Party-Bhartiya Janta Party (PDP-BJP) coalition government of Jammu & Kashmir. As a person he became 9th Chief Minister of J&K and 12th Chief Minister as tenure wise. While Nirmal Singh of BJP has been appointed as the Deputy Chief Minister of the state.