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FinMin initiates Budgetary exercise for 2024-25; seeks inputs from various ministries-Telangana Today

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The Finance Ministry has initiated the process to prepare the interim Budget for 2024-25 by inviting inputs on expenditure from different ministries and departments.

Published Date – 09:12 PM, Mon – 4 September 23


FinMin initiates Budgetary exercise for 2024-25; seeks inputs from various ministries

The Finance Ministry has initiated the process to prepare the interim Budget for 2024-25 by inviting inputs on expenditure from different ministries and departments.

New Delhi: The Finance Ministry has initiated the process to prepare the interim Budget for 2024-25 by inviting inputs on expenditure from different ministries and departments.

It will be an interim Budget as the elections for the Lok Sabha are due early next year. The full Budget for FY25 will be presented after the formation of the new government after the general elections.

“Pre-budget meetings chaired by Secretary (Expenditure) shall commence in the second week of October 2023…shall continue till around mid-November, 2023,” according to the Budget Circular (2024-25) of the Budget Division under the Department of Economic Affairs of the Finance Ministry.

According to the circular dated September 1, financial advisers should ensure that the necessary details required should be submitted by October 5, 2023.

The Budget Estimates for 2024-25 will be provisionally finalised after completion of pre-Budget meetings, it said.

During the pre-budget meetings, the requirement of funds for all categories of expenditures, along with receipts of ministries or departments, is discussed.

Besides, non-tax revenues, including arrears of non-tax revenue and indicative budget figures, will be discussed on a net basis.

All ministries or departments should submit details of autonomous bodies or implementing agencies for which a dedicated corpus fund has been created, the circular said, adding the reasons for their continuance and requirement of grant-in-aid support, and why the same should not be wound up, should be explained.

This will be the sixth Budget of Finance Minister Nirmala Sitharaman, who presented her first full Budget in July 2019.

The Budget for the current fiscal had projected a nominal growth rate of 10.5 per cent, while the fiscal deficit was pegged at 5.9 per cent of the gross domestic product (GDP).

The interim Budget 2024-25 is likely to be presented on February 1. Prime Minister Narendra Modi-led government scrapped a colonial-era tradition of presenting the Budget at February-end.

Former finance minister Arun Jaitley started the practice of presenting the annual Budget on February 1 in the year 2017. With the preponement of the Budget, ministries are now allocated their budgeted funds from the start of the financial year beginning in April.

This gives government departments more leeway to spend as well as allows companies time to adapt to business and taxation plans.

Previously, when the Budget was presented at the end of February, the three-stage Parliament approval process used to get completed sometime in mid-May, weeks ahead of the onset of monsoon rains. This meant government departments would start spending on projects only from August-end or September, after the monsoon season ended.

Business

Dunzo to now pay salaries ‘batch-wise’ after several delays-Telangana Today

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According to sources, the quick-grocery delivery provider once again failed to pay some of its employees as it was to start disbursing salaries from September 4.

Published Date – 10:21 PM, Mon – 4 September 23


Dunzo to now pay salaries ‘batch-wise’ after several delays



Bengaluru: Homegrown quick-grocery delivery provider Dunzo, which has been delaying salaries for its employees after being unable to raise funds, has further delayed paying its staff and will now do it “batch-wise”.

According to sources, the quick-grocery delivery provider once again failed to pay some of its employees as it was to start disbursing salaries from September 4.

“Due to certain procedural requirements, we have to do this batch-wise. It may take an additional day or two for us to facilitate this transfer for everyone,” Dunzo told employees in an email.

“Rest assured you will receive your August 2023 salary within this week without fail,” according to the email.

Last month, reports surfaced that Dunzo delayed salaries to the first week of October after being unable to raise funds. The startup previously committed to make payments on September 4, from the earlier July 20 date, Money Control had reported.

“We sincerely apologise for this delay. Ensuring that you receive your due compensation as early as possible is our top priority. Please be assured that we are doing everything to make this happen, and we are confident that there will be no further delays after this,” according to an earlier email from the startup.

It had also promised employees to pay an interest of 12 per cent per annum on the salary component that it held back from June.

Earlier in August, it was reportedly in advanced talks to raise between $80-100 million in its series G round from its existing investors, including Lightbox and Lightrock. The funding round “mostly comprises equity funding and can have a small debt element”, according to reports.

Business

FSIB recommends Vinay Tonse for MD position in SBI-Telangana Today

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Tonse is currently serving as deputy managing director at SBI.

Published Date – 11:47 PM, Mon – 4 September 23


FSIB recommends Vinay Tonse for MD position in SBI



New Delhi: FSIB, the headhunter for directors of state-owned banks and financial institutions, on Monday recommended Vinay M Tonse for the post of Managing Director of State Bank of India (SBI).

The post fell vacant after the appointment of Swaminathan Janakiraman as Deputy Governor of the Reserve Bank.

Tonse is currently serving as deputy managing director at SBI.

The country’s largest lender has four managing directors and one chairman.

Declaring the result of the selection process, the Financial Services Institutions Bureau (FSIB) in a statement said the bureau interviewed 13 candidates on August 30 and September 4.

“Keeping in view their performance in the interface, their overall experience and the extant parameters, the Bureau recommends Vinay M Tonse for the position of MD in SBI,” it said.

The final decision on the FSIB recommendation would be taken by the Appointments Committee of the Cabinet headed by Prime Minister Narendra Modi.
FSIB is headed by Bhanu Pratap Sharma, former secretary in the Department of Personnel and Training (DoPT).

Other members of the headhunter are Animesh Chauhan, former chairman and MD of erstwhile Oriental Bank of Commerce, RBI’s ex-executive director Deepak Singhal, and Shailendra Bhandari, former MD of erstwhile ING Vysya Bank.

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Rupee falls 13 paise to 82.84 against US dollar in early trade-Telangana Today

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Positive sentiment in the equity markets failed to provide support to the Indian currency facing pressure due to the elevated level of greenback

Published Date – 09:55 AM, Tue – 5 September 23


Rupee falls 13 paise to 82.84 against US dollar in early trade



Mumbai: The rupee depreciated 13 paise to 82.84 against the US dollar in early trade on Tuesday amid the withdrawal of foreign funds from domestic equities and firm crude oil prices.

Positive sentiment in the equity markets failed to provide support to the Indian currency facing pressure due to the elevated level of greenback, forex traders said.

At the interbank foreign exchange, the domestic unit opened at 82.78, then touched the lowest level of 82.84 against the American currency, registering a decline of 13 paise over its last close.

On Monday, the rupee had settled at 82.71 against the dollar.

Gaurang Somaiya, forex and bullion analyst at Motilal Oswal Financial Services, said, “Volatility in rupee remained low following lack of cues on the domestic as well as global front.” In the next couple of sessions, services PMI number from major economies will likely trigger a move for the rupee.

“Today, the focus will be on the services PMI number that will be released from the Euro zone and the UK. The better-than-expected economic number could lift the major crosses higher. We expect the USDINR (Spot) to trade sideways with a negative bias and quote in the range of 82.30 and 82.80,” Somaiya said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell marginally by 0.01 per cent to 104.23.

Brent crude futures, the global oil benchmark, was trading 0.04 per cent lower to USD 88.96 per barrel.

In the domestic equity market, the 30-share BSE Sensex was trading 43.46 points or 0.07 per cent higher at 65,671.60. The broader NSE Nifty advanced 17.85 points or 0.09 per cent to 19,546.65.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Monday as they offloaded shares worth Rs 3,367.67 crore, according to exchange data.

Business

Indian stocks extend gains with all sectoral indices in green-Telangana Today

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Indian stock indices continue to remain firm, with most sectoral indices tracking in the green on Tuesday early trade

Published Date – 11:10 AM, Tue – 5 September 23


Indian stocks extend gains with all sectoral indices in green



New Delhi: Indian stock indices continue to remain firm, with most sectoral indices tracking in the green on Tuesday early trade. Benchmark indices Sensex and Nifty were at 65,775.44 and 19,579.00, up 0.2-0.3 per cent from their previous day’s closing.

“A significant trend in the market is the strength in IT index which is up 4.2 per cent in a week. Mid-cap IT has been doing well and now large-caps like HCL Tech, Infosys and Wipro have joined the rally. The order pipeline of IT companies is expected to improve on the back of the expected soft landing of the US economy,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Indian stock markets finally ended a five-week losing streak and gained nearly a per cent last week.

The Indian economy witnessing a firm GDP growth rate of 7.8 per cent in the first quarter (April-June) of 2023-24 is likely to have improved investors sentiment lately. With a GDP growth of 7.8 per cent, India continues to be the fastest-growing major economy.

Against this backdrop, Morgan Stanley has upwardly revised their economic growth forecast for India for fiscal year 2024 after April-June quarter data showed it grew at its quickest pace in a year. The multinational investment bank raised its growth forecast to 6.4 per cent from its earlier estimate of 6.2 per cent.

Also, foreign portfolio investors (FPIs) have remained net buyers in Indian stock markets for the sixth straight month till August, a positive for markets, according to data from the National Securities Depository (NSDL). So far in 2023, they have bought equity assets worth Rs 1.38 lakh crore on a cumulative basis.

However, there remains a concern as the rise in inflation lately has led to some uneasiness among investors. The benchmark Sensex is now hovering at its off-high, with June and July inflation figures relatively having depressed the market sentiments. Retail inflation in India rose sharply in July to 7.44 per cent, in the process breached RBI’s 6 per cent upper tolerance target, largely due to a sharp spurt in vegetable, fruit, and pulses prices.

“Amid all, we reiterate our view to focus on stock selection and preferring auto, IT and metal for long trades,” said  Ajit Mishra, SVP – Technical Research, Religare Broking.

Business

Automobile retail sales see 9 pc growth in August: FADA-Telangana Today

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Automobile retail sales in India rose by 9 per cent in August aided by sales growth in all segments, including passenger vehicles and two wheelers

Published Date – 11:30 AM, Tue – 5 September 23


Automobile retail sales see 9 pc growth in August: FADA

Representational Image

New Delhi: Automobile retail sales in India rose by 9 per cent in August aided by sales growth in all segments, including passenger vehicles and two wheelers, dealers’ body FADA said on Tuesday.

The total retail sales across segments rose to 18,18,647 units last month, up 9 per cent, from 16,74,162 units in August 2022.

Passenger vehicle registrations increased by 7 per cent to 3,15,153 units last month from 2,95,842 units in August 2022.

“In the passenger vehicle segment, improved vehicle supply, bolstered by expanded customer schemes, has maintained positive market dynamics,” the Federation of Automobile Dealers Associations (FADA) President Manish Raj Singhania said in a statement.

Similarly, two-wheeler sales saw a jump of 6 per cent to 12,54,444 units as compared with 11,80,230 units in the same month last year.

“Despite positive growth, consumer sentiment remained ambivalent, impacting conversion rates and intensifying competition among key players,” Singhania noted.

Commercial vehicle registrations increased by 3 per cent to 75,294 units last month from 72,940 units in the same month last year.

Tractor sales jumped 14 per cent to 73,849 units in August as against 65,018 units in the year-ago period.

Three-wheeler retail sales saw a jump of 66 per cent to 99,907 units in August from 60,132 units in August 2022.

“As the Indian automobile industry enters September, the outlook remains cautiously optimistic, shaped by a multitude of factors that vary across vehicle segments,” Singhania said.

The onset of the festive season, beginning with Onam, has uplifted market mood, improved liquidity and eased earlier bottlenecks in the supply chain across all categories, he added.

Lack of sufficient rainfall could precipitate a rise in inflation, adversely affecting consumer purchasing power and diminishing demand, Singhania stated.

This meteorological shortfall would not only jeopardise the yield of the ongoing kharif crops but also cast a shadow on the subsequent sowing season for rabi crops, he added.

“Such developments would be particularly inopportune as they would coincide with the peak of India’s festive season, notably Navratri and Deepawali, traditionally periods of heightened consumer activity,” Singhania said.

FADA said it collated vehicle data for August from 1,352 out of 1,438 RTOs (regional transport offices) across the country.

Business

Paytm disburses Rs 5,517 crore loans in August, deploys 87 lakh devices for offline payments-Telangana Today

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Paytm said it disbursed USD 667 million (Rs 5,517 crore) loans through its platform and deployed 87 lakh devices for offline payments

Published Date – 12:05 PM, Tue – 5 September 23


Paytm disburses Rs 5,517 crore loans in August, deploys 87 lakh devices for offline payments



New Delhi: Fintech major Paytm on Tuesday said it disbursed USD 667 million (Rs 5,517 crore) loans through its platform and deployed 87 lakh devices for offline payments in August.

The Vijay Shekhar Sharma-led fintech platform said in a regulatory filing that on an average 9.4 crore users transacted through Paytm monthly during July and August this year, which was 20 per cent higher than the average number of users recorded during the same period last year.

“Our loan distribution business (in partnership with our lender partners) continues to gain scale with disbursements of Rs 10,710 cr (USD 1.3 billion, y-o-y growth of 137 per cent) and 88 lakh loans (y-o-y growth of 47 per cent) disbursed in quarter to date for the month of July and August 2023 combined, through the Paytm platform,” the company shared in its operating performance report for August.

The number of merchants paying subscription for payment devices stood at 87 lakh as of August 2023, which is an increase of 42 lakh devices year-on-year, Paytm added.

Merchant Payment Volumes (GMV) for the Antfin-backed firm stood at Rs 3 lakh crore (USD 36.3 billion) during July and August, registering an on-year growth of 43 per cent.

Business

FM asks financial entities to ensure customers nominate heirs-Telangana Today

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Union Finance Minister Nirmala Sitharaman on Tuesday asked banks and financial institutions to ensure that their customers nominate heirs

Published Date – 12:30 PM, Tue – 5 September 23


FM asks financial entities to ensure customers nominate heirs



Mumbai: Union Finance Minister Nirmala Sitharaman on Tuesday asked banks and financial institutions to ensure that their customers nominate heirs, which can help reduce the quantum of unclaimed money.

“I want banking system, the financial ecosystem (including) the mutual funds, stock markets… everybody to keep in mind that when someone deals with his (customer’s) money, the organisations will have to think about the future and ensure that they (customers) nominate their heir, give the name and address,” Sitharaman said at the Global Fintech Fest (GFF) here.

As per a report, the banking system alone has over Rs 35,000 crore of unclaimed deposits, while the overall quantum of the unclaimed money is said to be more than Rs 1 lakh crore.

The finance minister also said that it is essential to build a responsible financial ecosystem, and added that one laggard can cause a disruption.

Sitharaman also said that tax havens and round tripping of money are a threat to responsible financial ecosystem.
She asked fintech companies to invest in cybersecurity and said that trust is very important.

Business

India’s services sector activity moderates in Aug; exports expand at series record pace-Telangana Today

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India’s services sector activity eased in August but growth rates for new orders remain elevated, as services firms indicated the sharpest upturn

Published Date – 01:00 PM, Tue – 5 September 23


India’s services sector activity moderates in Aug; exports expand at series record pace

Representational image

New Delhi: India’s services sector activity eased in August but growth rates for new orders remain elevated, as services firms indicated the sharpest upturn in new export business which acted as a catalyst for firms to expand their workforces as well as output, a monthly survey said on Tuesday.

Despite falling from 62.3 in July to 60.1 in August, the seasonally adjusted S&P Global India Services PMI Business Activity Index indicated one of the strongest increases in output seen since mid-2010.

For the 25th straight month, the headline figure was above the neutral 50 threshold. In Purchasing Managers’ Index (PMI) parlance, a print above 50 means expansion while a score below 50 denotes contraction.

“Indian services companies achieved a remarkable milestone in August, as they welcomed a series record surge in new export business. Several regions contributed to the upturn, including Asia Pacific, Europe, North America and the Middle East,” Pollyanna De Lima, Economics Associate Director at S&P Global Market Intelligence, said.

Lima further noted that this spike in international demand supported one of the best sales performances recorded over the past 13 years, and acted as a catalyst for firms to expand their workforces as well as output.

“Demand strength also fostered a heightened sense of optimism regarding the outlook, boding well for economic growth prospects,” Lima said.

On August 10, the Reserve Bank of India (RBI) left its key interest rates unchanged for a third straight meeting but signalled tighter policy if food prices drive inflation higher.

The next meeting of the RBI Monetary Policy Committee (MPC) is scheduled for October 4-6.

On the prices front, buoyant demand for services meanwhile aided a further upward revision to selling prices. The rate of charge inflation quickened to the joint-fastest in over six years, while input costs rose to a lesser extent.

“… Favourable demand trends also led to the joint-fastest increase in prices charged for Indian services in over six years, which may prompt attention from policymakers and potentially delay cuts to the benchmark repo rate,” Lima added.

On the jobs front, hiring activity across India’s service economy continued to expand. The rate of job creation was moderate, but the strongest seen since last November.

Going ahead, monitored companies firmly believed that output would remain on an upward growth path over the course of the coming 12 months.

Advertising, demand strength, plans to price competitively and a healthy number of client enquiries all boosted optimism in August.

Meanwhile, there was a mild slowdown in the growth of private sector activity across India during August.

The S&P Global India Composite PMI Output Index — which measures combined services and manufacturing output — fell from 61.9 in July to 60.9 in August. Despite the fall, the S&P Global India Composite PMI Output Index was indicative of a sharp rate of expansion that was among the strongest in over 12 years, the survey said.

The S&P Global India Services PMI is compiled by S&P Global from responses to questionnaires sent to a panel of around 400 service sector companies. The panel is stratified by detailed sector and company workforce size, based on contributions to GDP. Data collection began in December 2005.

Business

NCLT asks SpiceJet to settle disputes with lessors in ongoing insolvency cases-Telangana Today

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NCLT on Tuesday asked SpiceJet to work towards resolving disputes with the lessors who have initiated insolvency proceedings against the airline

Published Date – 01:20 PM, Tue – 5 September 23


NCLT asks SpiceJet to settle disputes with lessors in ongoing insolvency cases



New Delhi: The National Company Law Tribunal (NCLT) on Tuesday asked SpiceJet to work towards resolving disputes with the lessors who have initiated insolvency proceedings against the airline.

This came during an insolvency plea filed by one of the lessors — Celestial Aviation Services Limited — against the low-cost airline. The NCLT noted that all insolvency petitions against SpiceJet have been brought forward by lessors rather than banks or financial institutions. Consequently, the tribunal encouraged the airline to consider settling with the lessors, stressing that this could be in its best interest.

In May, lessors had requested the Directorate General of Civil Aviation (DGCA) to deregister one aircraft each from Wilmington Trust SP Services, Sabarmati Aviation Leasing, and Falgu Aviation leasing with the airline. Celestial Aviation Services Limited’s insolvency plea marks the fifth such case against SpiceJet. Other lessors, including Willis Lease Finance, Aircastle, and Wilmington, have also filed petitions.

The pleas are scheduled for a hearing on September 15. Recently SpiceJet entered into a settlement agreement with Nordic Aviation Capital (NAC), a major lessor for its Q400 aircraft, a spokesperson had said. “The agreement settles all past liabilities for the Q400s leased by NAC to SpiceJet. The airline presently operates five Q400 aircraft from NAC in its fleet,” the airline had claimed.

The SpiceJet spokesperson had said that separately, the airline will be inducting three additional Q400 aircraft from NAC back into its fleet. “These three planes had been repossessed by the lessor. The induction of the three planes in addition to the fleet revival and restoration program launched by the airline would result in a substantial addition of planes in the SpiceJet fleet in the coming weeks,” it was told.

Earlier, the DGCA had said that SpiceJet has been removed from the enhanced surveillance regime. The decision came after the airline, which has faced several challenges, was placed under close monitoring by the aviation watchdog.