Manufacturing sector sees faster growth amid high inflation in Apr: PMI

 

India's assembling area exercises saw quicker development in April in the midst of faster expansions underway as well as manufacturing plant orders, and reestablished extension in worldwide deals, a month to month study said on Monday.

The occasionally changed S&P Global India Manufacturing Purchasing Managers' Index (PMI) rose from 54.0 in March to 54.7 in April, as a retreat of COVID-19 limitations kept on supporting interest.

The April PMI information highlighted an improvement in by and large working circumstances for the 10th consecutive month. In PMI speech, a print over 50 methods development, while a score under 50 signifies withdrawal.

"The Indian assembling PMI stayed well inside certain region during April, recuperating a portion of the ground lost in March. Industrial facilities kept on increasing creation at an above-pattern pace, with the continuous expansions in deals and info buying, recommending that development will be supported in the close term," said Pollyanna De Lima, Economics Associate Director at S&P Global......Know More

RBI allows domestic banks to sell NPAs abroad as one-time settlement

International News

The Reserve Bank of India (RBI) on Tuesday allowed domestic banks to directly sell their bad loans in manufacturing and infrastructure sectors to investors abroad as part of one-time settlement (OTS) exercises. The move will allow overseas investors to take direct loan exposure to Indian corporates.
The defaulters, or stressed borrowers, can sell their assets in accordance with the OTS scheme, in order to raise external commercial borrowing (ECB) from abroad to repay domestic loans, the RBI said in a statement.
At the same time, Indian corporates can raise long-term loans for working capital, ‘general corporate purposes’ and repaying domestic rupee loans, the statement said.
Apart from easing the non-performing asset (NPA) pressure on domestic banks, the RBI’s move can allow companies to raise cheap, long-term loans easily now. Part or all of that can be used to retire domestic loans.
The RBI notification said corporate borrowers can avail of ECB “for repayment of rupee loans availed domestically for capital expenditure in manufacturing and infrastructure sector and classified as SMA-2 or NPA, under any one-time settlement arrangement with lenders”. SMA is special mention account, in which SMA-2 is the loan not serviced between 60 days and 90 days.
If the loan is not serviced on the 91st day, it becomes NPA.

 “Lender banks are also permitted to sell, through assignment, such loans to eligible ECB lenders, except foreign branches/overseas subsidiaries of Indian banks, provided, the resultant external commercial borrowing complies with all-in-cost, minimum average maturity period and other relevant norms of the ECB framework,” the notification said...Read More