Of bad loans and insolvency

7.2%

 

What is it? The projected growth rate of the Indian economy in current financial year 2017-18, according to International Monetary Fund (IMF).

Why is it important? This represents reversal in growth slowdown following demonetisation introduced in November- December last year. World’s sixth largest economy grew at 8% in 2015-16, before slowing down to 7.1% in 2016-17. IMF has attributed growth revival to revision in national income accounting and government spending.

Tell me more: Global economy is expected to grow at 3.5% this year, as compared to 3.2% in 2016.

 

 

1.24%

 

What is it? The gross non-performing assets of HDFC Bank, India’s largest private sector bank in market capitalisation, for the three months ended June 2017.

Why is it important? This is the highest in seven years, and bad loans increased by 23% in one quarter. And 60% of the increase was from farm loans portfolio. Slew of farm loan waivers announced by state governments like Uttar Pradesh and Maharashtra is likely to impact farm loan repayment, and increase bad loans for banks.

Tell me more: Banks have disclosed weakening of microfinance asset quality following demonetisation during January- March 2017. HDFC Bank says microfinance loans have not deteriorated further.

 

 

56

 

What is it? The number of applications filed by debtors to declare insolvency.

Why is it important? This is more than a third of cases approved by the National Company Law Tribunal (NCLT) under the Insolvency and Bankruptcy Code, 2016 in the last one year. It also shows companies are seeing insolvency proceedings as a chance to reset their business in a time bound manner.

Tell me more: Under the new bankruptcy code, cases have to be resolved within 6 months, with an extension for another 3 months. Alternatively, NCLT appoints an interim administrator who will try to sell the assets of the company to a new owner within 18 months.

 

 

770 mm

 

What is it? Rainfall received at Mount Abu, a hill station in Rajasthan, in 24 hours.

Why is it important? This is the highest ever rainfall received by Mount Abu ever since rainfall data was collected. Extreme rainfall events like these in a desert state is attributed to increase in temperature and its impact on monsoon.

Tell me more: Mumbai received 944 mm of rainfall in July 26, 2005 that killed 1,094 people. In 2015, Chennai and two adjoining districts received 1,049 mm of rainfall.

 

 

24

 

What is it? The number of protected monuments that have disappeared due to encroachment.

Why is it important? Shows laxity in protecting the historical monuments. Archaeological Survey of India is empowered to issue show cause notice to encroachers, and can also direct district authorities to remove encroachments.

Tell me more: 11 out of 24 lost monuments were from Uttar Pradesh. Government has spent Rs 301.7 crore in protecting monuments in 2016-17.

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News in Numbers, Feb 27, 2017: Back in stock: Nokia 3310 📲

~Rs 3,500

What is it? The estimated price of the Nokia feature phone redux, the popular 3310.

Why is it important? Nokia, once the most popular mobile brand, is plotting a comeback with a slew of new phones and one relaunch by its current owners, a subsidiary of Foxconn. HMD Global has lined up four phones, including the redesigned feature phone, 3310, for global shipments. Between its launch in 2000 and 2005, the 3310 had sold 120 million units. In India, especially, it could create a stir as more than 55% of mobiles phones are still feature phones.

Tell me more: The new smartphones are priced between Rs 9,000 and Rs 21,000.

 

6.1-6.4%

What is it? The estimates of GDP growth for the third quarter of fiscal 2016-17, when demonetisation was in the full swing.

Why is it important? Surveys of economists by Mint and Reuterspoint to the slowdown caused by demonetisation. The last estimate from the Central Statistics Office of the full fiscal at 7.1% kept the cash-ban effect out of reckoning.

Tell me more: In the July-September quarter, GDP growth rose by 7.3%. International Monetary Fund recently projected 6.6% GDP growth rate for India in 2016-17.

 

9

What is it? People killed in the boat capsize in Tamil Nadu.

Why is it important? Another boat capsize in a little over a month since the Bihar tragedy. Avoidable deaths recur given India’s lax enforcement of water safety measures, mostly when boats not suited for the purpose are used and absence of life jackets onboard. In this case, while the cause remains undetermined, it is being reported that many died trapped in the fishing net inside the vessel, taking them on a joyride off Tuticorin, when it overturned. The boat was not meant for too many passengers.

Tell me more: Tamil Nadu had seen 22 persons killed in another capsize in 2011.

 

630

What is it? The number of generic drugs the US Food and Drug Administration (USFDA) approved in 2016.

Why is it important? The US is one of the largest pharmaceutical markets in the world and generic or unbranded drugs saved its healthcare system $1.68 trillion in the last 10 years. An increase in approvals would give a boost to its healthcare system. But more significantly, nearly 80% of the generic drugs originate or get made in countries like India and China. So, it would also spell a larger market for such drug manufacturers based in these countries. USFDA Approvals are up from 580 in 2015 and 146 in 2014.

Tell me more: India, of course, will have do better to gain from it, as many of the drug manufacturers ran into trouble due to their production units failing the USFDA standards.

 

6

What is it? The number of Academy Awards or the Oscars that La La Land won, out of 14 categories it had been nominated in.

Why is it important? The movie was in the running for matching/breaking the record of the most number of Oscars won by a movie, ie. 11 or more (Ben Hur, Titanic and The Lord of the Rings: The Return of the King. However, with a vocal critic base the movie was not able to do so.

Tell me more: For a brief moment, the movie was declared the ‘Best Movie’, the ultimate prize at the Oscars and what would have been the movie’s seventh award of the evening. But it was the presenter’s mistake.

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News in Numbers – September 7, 2015

News In Numbers: September 7, 2015

 

27%

The extent by which India’s gross domestic product (GDP) would expand if India were to have as many women workers as men workers, according to International Monetary Fund estimates. Speaking at the launch of W20, a gathering of women leaders from the world’s largest economies, including India, IMF chief Christine Lagarde said the equivalent numbers for US and Japan were just 5% and 9%, respectively. Though women account for 48.5% of India’s population, gender inequality exists in most dimensions. However, recently, India has managed to bring down gender parity in schools, where the girls-to-boy ratio in primary classes is 1.02 and 0.94 in secondary schools. Overall, India ranks a poor 127 in the United Nations Gender Inequality Index for 2013.

 

25%

Percentage of respondents in a survey by industry body Ficci that are likely to plan capacity addition in manufacturing in the next six months. The current subdued investment in manufacturing is mainly attributed to delay in clearances, poor demand and high interest rates. The respondents were from 386 manufacturing units of all sizes. The survey also says that hiring will remain muted, with 79% of respondents not planning to add workers in the next three months. The number of jobs created in manufacturing declined by 4% in 2012-13, over 2011-12, according to Assocham Economic Research Bureau.  Although the growth of Indian manufacturing has been sluggish, it is the only country (besides Vietnam) that has showed expansion in August from the previous month among emerging market Asian economies.

 

10%

The percentage increase in entry-level salaries of engineering graduates who will join TCS and Cognizant Technology next year. This is the first time IT companies have increased salaries of entry-level engineers in about seven years, which was stagnant at about Rs 3 lakh per year. Brokerage firm Kotak Institutional Equities estimates that this would impact the companies’ profit margins by 0.25 percentage points in 2016-17 and their earnings per share by 1-2%. IT industry grouping Nasscom estimates technology majors will hire only 30,000 people in 2015-16, 13% fewer than 2014-15. With IT companies looking at automation and other ways to reduce cost, the excess supply of engineering graduates is likely to remain a problem.

 

Rs 37.22 crore

The amount Prime Minister Narendra Modi’s overseas trips have cost the exchequer, between June 2014 and June 2015. Although Modi visited 20 countries, expenses related to 16 countries were provided to an RTI (Right to Information) application. About 40% of this amount was spent on two trips: Australia and the US. In his first year as Prime Minister, Modi allocated 14.5% of his tenure to visit 17 countries, while his predecessor Manmohan Singh spent 12.9% of his tenure to visit 12 countries in his first year. Of the total inflow of foreign investment in 2014-15, India received about 26.1% foreign direct investment from 12 countries visited by Modi in the same period. Indian companies invested over 53% of the total outflow of foreign investment in 2014-15 in these 12 countries.

 

12,000-14,000

The estimated number of leopards in India, according the first ever census of the country’s leopards. The census did not cover Gujarat, parts of Rajasthan, and eastern and northeastern parts. Leopards were counted using the same methods as those employed for estimating India’s tiger population: camera-trapping and gathering other evidence of their presence. Madhya Pradesh has the highest estimate of leopards (1,817), followed by Karnataka (1,129) and Maharashtra (905). The lead scientist of the tiger census, who presented the leopard figures last week, said there was no way of knowing whether their numbers have increased or decreased. A recent study by three wildlife scientists estimated a 70-80% decline in the leopard population in the last 100 years.

 

 

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News In Numbers – July 29

News In Numbers: July 29

 

3.5 years

The last reign of Japan’s Toyota as the world’s largest automaker by sales. On Wednesday, this ended when the numbers for the first half of 2015 were released, and Volkswagen leapfrogged Toyota to the top slot. Toyota was also number one from 2008 to 2010, before ceding it for a year to General Motors in 2011. In India, however, none of the top three global makers dominate the pecking order, which is led by Suzuki (global ranking of 9 in 2014) and Hyundai (global ranking of 4 in 2014).

 

1.5

The interest coverage ratio, a measure of the ability of companies to pay interest on their loans, of 4,797 companies from India — the lowest among countries surveyed by the International Monetary Fund. This effectively means the debt levels are at risk and could deteriorate further. Indian companies fared the worst in a recent stress test conducted by the IMF, indicating that borrowing costs and earnings would worsen if the dollar continues to appreciate. Elsewhere in the Indian economy, the total stressed advances at all banks in India increased to 11.1% of total advances in March 2015; as of December 2014, the infrastructure sector had the highest share in this.

 

28.5 years

The average age of startup founders in Bengaluru, according to a report by a San Francisco-based research firm. Thus, the city, sometimes termed “India’s Silicon Valley”, has the youngest entrepreneurs in the world, with an average age that is eight years less than that in Silicon Valley. Bangalore is the only Indian city to figure in this list of top 20 startup ecosystems in the world. Although Silicon Valley beat Bangalore in almost all aspects such as fund raised, number of women founders, number of employees with startup experience, the Indian city has a higher percentage of startups with at least one tech founder than the former.

 

Rs 32,239 crore

The loss to the government in 2014 due to counterfeiting and illicit trade in seven industries — tobacco, alcoholic beverages, auto components, computer hardware, FMCG and mobile phones — according to a FICCI report. The grey market in the tobacco industry accounted for the maximum revenue loss, nearly a quarter of the total amount mentioned above. This marks an increase of nearly 50% from 2012. Due to illicit trade, the estimated loss to these sectors increased by over 44% to Rs 1,05,381 crore in 2013-14, from Rs 72,969 crore in 2011-12.

 

27

Number of people who died in Gujarat due to incessant rains in the 48-hour period up to 4 pm on Tuesday. Banaskantha district was the worst affected, accounting for eight deaths. The National Disaster Response Force has shifted around 1,000 people to safer locations. Gujarat has received over half its average annual rainfall, of which 25% was reported in just five days till Tuesday. Last month, around 50 people reportedly lost their lives due to heavy rains in the state, with the Saurashtra region being the worst affected.

 

 

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