June - Current Affairs - Economy

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Bihar Topped in Gross  State  Domestic  Product With  13.1  Percent  Growth  In 2012

Acoording to data released by Ministry of statistics of India on 1 June 2012, Bihar emerged as the state with highest economic growth rate in the country.

No-Penality On Pre-Closure of Home Loan

The reserve bank of India (RBI) on 5 June said that banks would not be permitted to charge force closure of charges/pre-payment penalities on home loans on floating interest rate basis,with immediate effect.

CII Spells Out 10-Point Agenda For Economic Revival

The confederation of Indian industry on 5 June announced a 10-poit agenda foe economic revival and out linked key areas of concern.

points are

• Cut repo rate by 100 basis points
• Cut CRR by 100 bps
• Alow accelerated depreciation for investmebts in plant & machinery.
• 25% weightted tax deduction on expenditure on companies going green.
• Increase FDI limits in civil aviatioin and defence: allow FDI in multi brand retail.
• provide interest subvention of 2% to export credit for six months .
• Clear 50 large projects in next 30 days .
• Announce clean plan for fiscal consolidation.
• Allow direct access to inporters to stockly items for their forex requirement.

World Bank projected Indian Economy to grow by 6.9 Per Cent in the Financial Year 2012-13

The World Bank in its report named Global Economic Prospects released on 12 June 2012, projected Indian economy to grow by 6.9% in the financial year 2012-13. The World Bank report predicted India’s growth increasing to 6.9 per cent, 7.2 per cent and 7.4 per cent in fiscal years 2012-13, 2013-14 and 2014-15, respectively.

SBH Cuts Interest On Retail Loans By Upto 175 bps

SBH has reduced interest rates on retail loans by upto 175 bps with effect from 17 June 2012 for housing loans, the interest rate was reduced by 25 points to 11-11.50 percent .which on car loans it would be 11.50 percent against exisiting 12.25 percent.

SBI Cuts Lending Rates by 50-350 bps For Small Units, Farm Sector

Country’s largest public sector lender SBI has cut lending rates any 50 to 350 bps for SMEs (Small & medium enterprises) and agricultural segments.

Multi Level TDS on Software To Go From July 1

The Finance Ministry has done away the Tax deduction at source obligation at each of the software distribution chain a TDs level of 10 percent was applicable at each level of the software distribution chain.The TDs exemption would be available only when the software is acquired in subsequent transfer, without any modification.This could mean that the benefit of TDS exemption will not be available for un branded software (or) customized software.

India Ranks 55th On Foreign Money In Swiss Banks

Indians’ money in Swiss banks may have risen for the first time in five years, but they account for a meagre 0.14 per cent of total foreign wealth deposited there — putting India at 55th place globally for such funds.The total overseas funds in Switzerland’s banking system stood at 1.53 trillion Swiss francs (about Rs. 90 trillion) at the end of 2011, which included 2.18 billion Swiss francs (Rs. 12,700 crore) belonging to Indian individuals and entities.While India accounted for only 0.14 per cent of total foreign money in Swiss banks, the U.K. accounted for the largest share of little over 20 per cent, followed closely by the U.S. with about 18 per cent.

SBI TO Risk Up To $2 b via Overseas Bond Sale

The country;s largest lender state bank of indi will raise up to $2 billion through an overseason bond sale ion the nect three months.

Credit Rating Agency Fitch Downgraded India’s Credit Outlook Rating

“International credit rating agency Fitch revised the credit outlook of India to negative on 18 June 2012.The rating agency, however, maintained the India’s sovereign rating at ‘BBB-’.Fitch also downgraded the credit outlook of seven PSUs namely NTPC, SAIL, IOC, PFC, GAIL, REC and NHPC. The agency downgraded the credit outlook after considering a broad range of factors, such as, macro economic policy, economy, public finances. Negative credit rating means that over the next 12-24 months there is a possibility that India’s rating could be downgraded.”

14 More services Come Under Tax- Exempt Negative List

The Government on 20 June,Included 14  more services in the ‘Negative list’ to exempt that from the payment of service tax under the new dispensation that will come into effect on July 1.Among the new services that would now be exempted from the negative list-bared system of tax on services are advocate providing services to entities with a turnover of up to Rs.10 lakh,companies engaged in construction of metro projects, law firms & entities provideing public conveniences.

Moody’s Cut Rating Of 15 Top Global Banks

Rating agency Moody’s downgrades 15 of the world’s biggest banks on 21 June lowering credit rating by one to three notches ti reflect the risk they faced from volatile capital market activists. Margan staley, Bank of America corp & citi group, Goldman sochs group, swizerland’s central bank e.t.c are in this list.

RBI Hiked Foreign Investment Limit In Government Bonds By 5Million Dollars

In a moved aimed at arresting the unrelenting fall of Indian rupee,India’s central bank ‘the Reserve Bank of India’ on 25 June 2012 hiked the limit of foreign investment in government bonds by 5 million dollar to 20 billion dollar.The bank also raised the limit of external commercial borrowing (ECB)to 10 billion dollar.

E-Voting Made Mandatory By SEBI For Top 500 Listed Companies Of BSE ANSE

The capital market regulator Securities and Exchange Board of India (SEBI)on 26June 2012 made it mandatory for top 500 listed companies to hold e-voting with an objective ti widen share holder participation in key decisions.

India’s Fiscal Deficit For April -May Period Stood At 1.41 Lakh Core Rupees.

As Per the latest data released ny the controller General of Accounts (CGA), india’s fiscal deficit during the April- May, the first of the fiscal year 2012-13 stood at 1.41 lakh croer rupees,27%of the budget estimates.

IRDA Fined 1.47 Crore Rupees On HDFC Life Insurance

The Insurance Regulatory and Development Authority(IRDA) on 28 June 2012 fined 1.47crore rupees on HDFC Life insurance against disobedience of number of regulatory provisions.It was the highest five on any insurer.IRDA tested HDFC Life Insurance from 26 July 2010 to 30 July 2010.  Before HDFC Life, IRDA had dined on ICICI prudential Life Insurance of Rs.1.18 crore for violations that include paying agents and broker’s commissions exceeding the permissible limits on May 2012.ICICI prudential penalty is the second highest impared penalty by the regulator after HDFC Life.