First India Newspaper 31 August 2019

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JAIPUR l SATURDAY, AUGUST 31, 2019 l Pages 14 l 3.00

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RNI NO. RAJENG/2019/01082 l Vol 1 l Issue No. 85

CAROLINE WOZNIACKI RALLIED BACK TO BEAT AMERICAN COLLINS TO SECURE A SPOT IN THIRD ROUND OF US OPEN

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MEGA MOVE TAKEN TO BOOST SLUGGISH ECONOMY

BANKING ON MERGERS Announcing a positive growth in the banking system, Finance Minister Nirmala Sitharaman stressed that the gross bad loans of public sector banks have come down to `7.9 lakh crore from `8.65 lakh crore at December-end 2018 WHAT WILL CHANGE

New Delhi: Finance Minister Nirmala Sitharaman Friday announced the merging of a number of Public Sector Banks (PSB) in order to revive and revitalise the banking sector with the objective of achieving the $5-trillion economy target. The development comes a week after the government announced a slew of measures to revive growth in the Indian economy, bringing down their total number to 12 from 27 in 2017, a move aimed at making state-owned lenders global sized banks. In what is one of the biggest mergers since the integration of SBI with five associate banks, Sitharaman announced the merger of Punjab National Bank (PNB), Oriental Bank of Commerce (OBC) and United Bank of India with a business of Rs 17.95 lakh crore and a network of 11,437 branches, making it the second-largest PSB in the country. Sitharaman also announced the consolidation of Canara bank with Syndicate Bank to form the thirdlargest PSB with a business of Rs 15.20 lakh crore. The merger of Union Bank with Andhra Bank and Corporation Bank will form the fourthlargest PSB with 9,609 branches. The government also announced the merger of

We are giving these bank enough capital reserve to function without worry. Enough instructions have been given at branch level to make sure credit availability, liquidity will not suffer Nirmala Sitharaman, Finance Minister

 New cheque book and debit/credit cards will be issued  Your account number and customer IDs, as well as the associated IFSC codes may change  You will have to update IFSC and other details with the income tax department, insurance providers etc  Fresh bank mandate will be needed for EMIs and systematic investment plan (SIP)  Fresh standing instructions for bill payments will have to be issued  Your bank branch may move closer or farther  Savings account interest rate may change

THE BANKS THAT BECAME 1 PNB, OBC AND UNITED BANK (PNB: Anchor bank)

CANARA BANK AND SYNDICATE BANK

UBI, ANDHRA BANK AND CORPORATION BANK

INDIAN BANK AND ALLAHABAD BANK

DOWN TO 12 FROM 27  After the mega PSU bank

consolidation, there will be 12 public sector banks in the system instead of 27

 Last year, the government had

approved the merger of Vijaya Bank and Dena Bank with Bank of Baroda (BoB). In 2017, the State Bank of India absorbed five of its associates and the Bharatiya Mahila Bank

Indian Bank with Allahabad bank with a business of Rs 8.08 lakh crore, 1.9 times of Indian Bank and covering south, north and eastern sectors. Meanwhile, the Bank of India and Central Bank of India will continue as central banks with a national presence. To strengthen the regional pres-

ence, Sitharaman announced that Indian Overseas Bank will continue its operations in the south, Uco Bank will keep operation in east and the Punjab and Sindh bank will continue with 1.71 lakh crore business in the north. The Indian economy which is currently at $2.65 trillion is facing a

downward spiral with the government infusing fresh capital in the banking system. “We are giving these bank enough capital reserve to function without worry. Enough instructions have been given at branch level to make sure credit availability, liquidity will not suffer,” Sitharaman said. Announcing a posi-

tive growth in the banking system, the finance minister stressed that the gross bad loans of public sector banks have come down to Rs 7.9 lakh crore from Rs 8.65 lakh crore at December-end 2018. Sitharaman, addressing the press conference, said that partial credit guarantee scheme for NBFCs has

WHAT WILL NOT CHANGE  Fixed deposit rates will remain unchanged for now  If you are locked into a fixed deposit, you can continue till maturity on the same interest rate even if the deposit rates of the merged entity are higher or lower  Loan rates will remain unchanged  In case of MCLRbased loans, the interest would be reset at the end of the reset period selected by the borrower

GDP SHOCKER Slowest growth logged in 6 years

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ndia’s growth rate for AprilJune 2019 slipped to 5 per cent compared to 8 per cent in the corresponding period last year, as per the latest data from the Central Statistic Office (CSO) released on Friday. The growth slowest in 25 quarters is being attributed to a sharp deceleration in the manufacturing sector and sluggish agriculture output. On August 8, the Reserve Bank of India had pegged the economy to grow in the range of 5.8-6.6 per cent in the first half (April-September), down from its June forecast of 6.4-6.7%. “Real GDP growth for 2019-20 is revised downwards from 7 per cent in the June policy to 6.9 per cent – in the range of 5.8-6.6 per cent for firs half of 2019-20 and 7.3-7.5

per cent for the second half – with risks somewhat tilted to the downside,” RBI had said in the monetary policy statement. The growth rate had slipped to a fiveyear low of 5.8 per cent in January-March 2018-19, owing to poor performance in the agriculture and manufacturing sectors. This was the lowest growth rate in 20 quarters and puts India behind China after almost two years. The rate was lower than this at 5.3 per cent in the last quarter of UPA II or January-March 2013-14. The growth in gross domestic product during the 2018-19 fiscal stood at 6.8 per cent, lower than 7.2 per cent in the previous financial year. The GDP growth was slowest since 201415 as the previous low was 6.4 per cent in 2013-14.

been executed since the last announcements and Rs 3,300 cr liquidity support has been given, while Rs 30,000 crore is in pipeline. “We need to lay a strong foundation for finance sector by strengthening the banks and giving them a good governance module,” Sitharaman added.

HOW THE FISCAL COOKIE CRUMBLED

Nation reeling under undeclared economic emergency: Gehlot Naresh Sharma Jaipur: Chief Minister Ashok Gehlot reached the Pradesh Congress Committee on Friday morning to pay respects to the Congress stalwart late Nathuram Mirdha on his death anniversary. After offering a floral tribute, Gehlot met various Congress leaders, who were also present on the occasion. He then addressed the media and took on the Union Government.

Gehlot in his address, said that there is an undeclared emergency in the country and the Centre has intimidated the entire nation through Enforcement Directorate, CBI and the Income Tax Department. “Those who win elections should work with a big heart. Everyone should work together. Is Modi’s government doing it? They have frightened the entire country through Enforcement Directorate, Income

Tax Department and CBI be it industrialists, businessmen, bureaucrats or anyone else,” Gehlot told reporters at the Congress State Headquarters. The Chief Minister claimed that the people of the country are living in fear. “There is an atmosphere of an undeclared emergency in the country. The new generation has to understand this,” he said. Gehlot claimed that the country is going

CM Ashok Gehlot paying floral tribute to ex-Rajasthan PCC president Nathuram Mirdha on Friday.

through a recession and the Centre is not doing enough to tackle it. “There is a period of severe recession in the entire country. People are committing suicides. Earlier, only farmers used to commit suicide. Now businessmen, industrialists, small and big ones, have started committing suicide,” he said. “One million people in the automobile sector have lost their jobs. A well-known company in the country making bis-

cuits has fired 10,000 people due to the imposition of GST,” he said. “This Central Government does not understand anything. The exemptions which were announced recently, are not enough. They are late and they are not enough. So they have to think about how to get the economy back on track,” he added. The CM also claimed that the law and order situation is deteriorating due to people losing their jobs. Turn to P4


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