State_Bank_of_India_Jaffna_Branch

For Indian Lenders, Dominoes Have Started Falling

Rs 842.15 crore

What is it? The alleged defrauding of a consortium of lenders, led by the State Bank of India, by Kanishk Gold, a Chennai-based jewellery chain. A case has been reportedly registered by the Central Bureau of Investigation (CBI).

Why is it important? The modus operandi seems to be similar to that of other cases that have surfaced recently: the accused fleeing the country to escape prosecution after failing to repay bank loans. The promoters and directors of Kanishk Gold, Bhoopesh Kumar Jain and his wife Neeta, Jain are believed to be in Mauritius currently.

Tell me more: The firm first defaulted on interest payments to eight banks in March 2017; by next month, no payments were made to all 14 lenders. Along with interest, the firm’s total dues to banks would be over Rs 1,000 crore.

3 to 4

What is it? The number of times the US central bank expects to increase interest rates in 2018.

Why is it important? On Wednesday, the US Federal Reserve, meeting for the first time under new chairman Jerome Powell, raised the benchmark lending rate a quarter-point, signaling a continuity of the direction laid out by his predecessor Janet Yellen. The rate will now hover in a band of 1.50% to 1.75%, against 1.25% to 1.5% previously, and forecast a steeper path of hikes in 2019 and 2020.

Tell me more: US central bankers have projected a median federal funds rate of 2.9% by end-2019 and 3.4% by 2020.

Rs 24,000 crore

What is it? The accumulated losses of Flipkart as of March 2017, up from Rs 10,000 crore a year ago.

Why is it important? This is about half the total amount it has raised so far (nearly Rs 40,000 crore or $6.1 billion), which shows how much it cost Flipkarts to keep up with deep-pocketed Amazon India and the new entrant in the two-horse race, Alibaba Holdings-backed Paytm Mall. Walmart is reportedly planning to buy a third of Flipkart for $7 billion, which would mean a renewed fight between the US retail giant and Amazon in India.

Tell me more: Flipkart’s revenue growth slowed down in the year ending March 2017 to 29% (to Rs 19,855 crore), against 50% growth in the previous year. It also recently asked its sellers to deal with 60% of discounts during sales.

3

What is it? The number of political parties—BJP, Congress and JD(U)—that Ovleno Business Intelligence has claimed to have worked with. Ovleno has a joint venture called SCL India with London-based SCL Group, which is the parent of Cambridge Analytica.

Why is it important? Cambridge Analytica, a British data analytics firm, is in the eye of a storm in three countries—India, the US and UK—for reportedly harvesting data of 50 million Facebook users beginning in 2014. BJP and Congress are accusing each other of having availed the services of the controversial firm during various elections.

Tell me more: The LinkedIn profile of Ovleno’s former directorclaims to have helped BJP “achieve target of Mission 272+”, a reference to its stunning victory in 2014 General Elections. Interestingly, the website of Ovleno was suspended as of Wednesday evening.

5

What is it? The number of runs by which Scotland were trailing West Indies under the run-rate system in the ICC World Cup Qualifiers when rains terminated the match.

Why is it important? As a result, West Indies were declared winners, and they booked one of the two spots for the 2019 World Cup in England. When the match was called off, Scotland needed 75 from 14.4 overs, with five wickets in hand.

Tell me more: Who joins West Indies in Sunday’s final and to 2019 will be determined by the remaining two matches in the Super Six phase. Three teams are in contention: Zimbabwe, Ireland and Afghanistan—.

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