What is it? The number of basis points by which the State Bank of India (SBI) has cut the interest rate on savings accounts up to Rs 1 crore to 3.5% from 4% on Monday.
Why is it important? The rates are now at a six-year low, which would impact nearly 90% of the nearly $150 billion in its savings accounts. This is the first cut by India’s largest lender since May 2011 and is to protect its net interest margin after the bank saw a large inflow of deposits following the government’s demonetisation move in November. The rate cut is a bit unusual as it comes ahead of the central bank’s policy meeting on Wednesday when it is widely expected to cut the repo rate by 25 basis points.
Tell me more: The benchmark BSE Sensex and the broader NSE Nifty ended the day at record highs on Monday led by the SBI.
Rs 150 crore
What is it? The gross profit Snapdeal would clock in the next 12 months, according to the firm’s founders, Kunal Bahl and Rohit Bansal.
Why is it important? Snapdeal, which was negotiating its sale to Flipkart, announced on Monday that it was calling off the deal and that it would operate independently. While this has disappointed its 25-plus institutional investors who do not have an immediate option to exit from an investment that has turned bad, it is good news for the founders, Kunal Bahl and Rohit Bansal, who were against the sale from the beginning. This is a blow to SoftBank Group, Snapdeal’s biggest investor, which was trying engineer the deal and also, get a sizeable stake in Flipkart. India’s largest homegrown e-commerce firm would now be deprived of a possible cash infusion from the former that would have helped in its battle against cash-rich Amazon.
Tell me more: Snapdeal is reportedly planning to lay off 1,000 of its 1,200 employees. The e-commerce major, which has raised around $2 billion cumulatively, was in talks with its bigger rival Flipkart for a $850-million sale.
What is it? The cumulative decrease in workforce at Tata Consultancy Services, Infosys and Tech Mahindra at the end of June quarter this year.
Why is it important? For the first time, three of the five largest IT firms have seen their workforce shrink. With increased automationand newer business models relying more on intelligent systems than people and protectionist policies of the US that favour employing locals than foreign talent, it remains to be seen if the Indian IT firms would be able to meet Nasscom’s target of adding a minimum of 150,000 people by the end of this year.
Tell me more: Meanwhile, Wipro and HCL Technologies added 3,117 employees in the June quarter with a net addition of 1,821 at the five largest IT companies in India.
What is it? The price quoted by Shanghai Fosun Pharmaceutical Group Co.’s to buy controlling stake in Gland Pharma, a domestic generic drugs maker.
Why is it important? This would have been the biggest Chinese acquisition in India, but the Cabinet Committee on Economic Affairs is unlikely to clear the deal, given the geopolitical tension brewing between the two countries, along the Himalayas.
Tell me more: Acquiring Gland Pharma, which makes and sells injectable generics for the US market, will help Fosun to get a foothold in the $300 billion market for injectables.
What is it? The proposed monthly price increase of Liquefied Petroleum Gas (LPG) supplied for domestic use.
Why is it important? The gradual price increase will eliminate subsidy on LPG, around Rs 86 per cylinder in Delhi. Government is hoping to replicate the success of eliminating diesel subsidy by increasing prices by Rs 0.5 every month. Softening of gas prices has helped bring down subsidy component even as suppliers have increased prices gradually.
Tell me more: The maximum subsidy per cylinder of Rs 530.2 was given in financial year 2013-14, almost equivalent to current non-subsidised price of LPG cylinder in Delhi.