BDM BUSINESS MAGAZINE FIRST YEAR/ FIRST ISSUE/ MARCH 2018



Nirav Modi Bribed PNB Official With Gold Coins, Diamond Jewellery, CBI Tells Court

 “CBI told the court that Yashwant Joshi, who worked in the forex department of PNB's Mumbai branch, admitted to having received two gold coins weighing 60 grams and a pair of gold and diamond earrings from Nirav Modi”

An official of Punjab National Bank received gold and diamond jewellery from a billionaire jeweller accused of being involved in a Rs. 12,600 crore bank fraud, the Central Bureau of Investigation (CBI) told a court on Saturday. The state lender in January uncovered the alleged fraud in which several bank officials were suspected of colluding with jeweller Nirav Modi and his uncle Mehul Choksi to issue fraudulent letters of undertakings (LoUs), for their companies to raise loans from overseas branches of mostly Indian banks.The CBI, which has arrested 14 people in the case, on Saturday for the first time said bribes were paid to at least one Punjab National Bank (PNB) official by Modi.The agency told the court that Yashwant Joshi, who worked as a manager in the forex department of the Mumbai branch that is at the centre of the fraud, admitted to having received two gold coins weighing 60 grams and a pair of gold and diamond earrings from Modi.The articles have been recovered from Joshi's house in the presence of independent witnesses, the CBI said."This indicates that he was in collusion with the beneficiary accused persons to cheat the bank," CBI Inspector D. Damodaran said in a court filing. "He also obtained illegal gratification from the beneficiary party for continuing issuance of fraudulent LoUs." Joshi, who was committed to judicial custody by the Mumbai court along with four other PNB officials and an associate of Modi, could not be contacted for comment.Modi and Choksi, who owns Gitanjali Gems Ltd, left India before the fraud came to light, but have said in letters and statements they were innocent.PNB, India's second-biggest state lender, has mainly accused two low-level employees of the Brady House branch of issuing the LoUs without making corresponding entries in the bank's main software, helping the fraud to go undetected for years.The CBI, however, has expanded its investigation and arrested two internal auditors of the branch, among others.Separately, TV channels reported that another Mumbai court on Saturday issued non-bailable warrants against Modi and Choksi following an appeal by the Enforcement Directorate (ED), an agency focused on foreign exchange and money laundering offences."Modi appears to be the prima donna in the whole saga of the fraud perpetrated on the PNB," the directorate said in a filing to the court seen by Reuters."The case involves a circuitous web of routes created by the said Modi and in such circumstances, the fraudulent transactions appear to be in the personal knowledge and exclusive domain of Nirav Modi".Modi has yet to be tracked by the authorities, but the ED said "reportedly, Modi is presently in Hong Kong". The agency has already seized various properties of Modi and Choksi, as banks assess the hit to them from the fraud. State Bank of India and two other state-run banks, Union Bank of India and Allahabad Bank, are lenders who had extended credit based on the LoUs issued by PNB that were later found to be fraudulent. Allahabad Bank said on Saturday it had a $366.87 million exposure to the case.


Uber co-founder to launch new cryptocurrency


Co-founder of peer-to-peer ridesharing, food delivery, and transportation network company Uber, Garrett Camp is launching his own cryptocurrency - Eco.Camp, who is also the founder of the accelerator fund Expa, wants Eco to be a digital global currency that can be used as a payment tool around the world for daily-use transactions. According to TechCrunch, there will be one trillion tokens for Eco issued initially, of which half will be given away to the first one billion verified humans that sign up. Out of the other half, 20 percent will go to the universities running trusted nodes, 10 percent will go to advisors, 10 percent will go to strategic partners, and 10 percent will go to a newly formed Eco Foundation which will be responsible for creating and maintaining the network. Camp and a small number of partners affiliated with Expa will also donate USD 10 million to seed the foundation with an operating budget. Eco's initial whitepaper states that it wants to improve on a few main issues common with cryptocurrencies. It wants to use only verified nodes for network support and transaction confirmations, meaning someone anonymous cannot run a node and confirm transactions like one could do on Bitcoin's network. While this essentially removes issues of 51 percent attacks or other acts of fraud, it also means that Eco won't be truly decentralised. Eco will also have a large token supply (one trillion, at least initially) and simple web and mobile apps. This is likely the project's attempt to be more user friendly. Similarly, the web and mobile app directive likely means that the platform wants to make wallets easily accessible to users, regardless of technical ability. The currency also wants to be energy-efficient when it comes to transaction verification and token generation.

Trade minister talks to US, but still doesn't know if steel tariff applies to Australia


“Steve Ciobo unclear on whether Trump’s 25% tariff affects Australia after speaking to US trade secretary”
The Turnbull government still doesn’t know if the US steel tariffs will apply to Australia, as a decision has not yet been made by Donald Trump.The Australian trade minister, Steve Ciobo, revealed that he had spoken to the US trade secretary, Wilbur Ross, but was still unclear about whether the tariffs would apply to Australia.The statement is embarrassing for the Turnbull government because it believed that it had secured an assurance from the US in July that Australia would be exempt.Amid escalating protectionist rhetoric between Trump and Europe, Ciobo suggested Australia would combat dumping but was not inclined to retaliate with steel tariffs of its own. Although Ciobo did not rule out retaliation, the Australian prime minister Malcolm Turnbull said it was “absolutely clear” Australia wants more trade and open markets.On Friday Trump announced the US would this week impose impose tariffs of 25% on steel imports and 10% on imported aluminium, sparking concern from the Australian government, which believed it had negotiated an exemption from US protectionism on steel.On Sunday Ciobo told Sky News it was unclear whether Australia would be captured by the US policy because the reach of the tariff had “yet to be determined”.“What is clear is the US is still working through the detail with respect to this announcement so the extent to which Australia may be captured is yet to be confirmed,” he said.Ciobo referenced the assurance given to Australia but said it was up to Trump whether exemptions would apply. The trade minister said Australia had not been snubbed because Canada and the European Union were also unsure of the reach of the tariffs.Europe has warned Trump to expect retaliatory strikes against well-known American brands like Harley-Davidson, Levi’s jeans and Kentucky bourbon, if he kicks off a trade war by going ahead with with punitive tariffs.On Sunday morning Australian time Trump tweeted a warning to the EU that if they increased their trade barriers in retaliation the US “will simply apply a tax on their cars which freely pour into the US”.

Banking weekly wrap: SBI, ICICI hike loan rates, wallets suffer KYC jolt and PNB fraud helps pass Fugitive Bill


“Banking sector during the week continued to be embroiled in the Punjab National Bank fraud.”

 

Banking sector during the week continued to be embroiled in the Punjab National Bank fraud. However, a significant change that the sector witnessed was the increase in interest rates on loans by country’s biggest lender State Bank of India.State Bank of India (SBI), the country’s largest lender, on Thursday raised marginal cost-based lending rates (MCLR) by 10-25 basis points across most maturities, with immediate effect. This indicates a likelihood of a rise in the EMIs (equated monthly instalments) of home, auto and other loan borrowers. ICICI Bank also raised its MCLR, which is now at 7.95 percent for the overnight rate against the earlier 7.8 percent, a hike of 15 bps. The one-year MCLR rose by 10 bps from 8.2 percent to 8.30 percent with effect from March 1, 2018. Its 3-month MCLR has risen to 8 percent (from 7.85 percent) and 6-month MCLR was raised to 8.25 percent from 8.15 percent. Other banks are likely to follow suit as typically, a deposit rate hike is followed by a lending rate hike. This indicates that the interest in the economy has moved up even as the Reserve Bank of India (RBI) in February kept its policy rates unchanged for the third time. A day before the lending rate cut, on Wednesday, SBI had hiked its retail deposit rates by 10-50 basis points (bps) across various maturity baskets, a move that is likely to be followed by other banks.
KYC on wallets
In other news, almost Rs 12,000 crore, or 80 percent of online wallet transactions in the country are at risk of going back to cash, as online wallet players fear losing customers because of the Reserve Bank of India’s KYC rule. An RBI directive requires wallet companies like Paytm, Mobikwik, Ola Money, Amazon Pay and Sodexo to meet full KYC (know your customer) norms for all their customers on or before February 28.
Fugitive Economic Offenders Bill
To avoid a repeat of Nirav Modi and Vijay Mallya cases, the Union Cabinet on Thursday approved the Fugitive Economic Offenders Bill, 2017 that particularly seeks to protect the interest of lenders left high and dry by absconding corporate defaulters. Once voted into law, the new legislation will empower investigating agencies to confiscate, and vest with themselves, any property of the absconding offenders without encumbrances. Moneycontrol had in a February 26 exclusive news break revealed the government was readying a tough law that would enable speedier recovery of dues from Nirav Modi-type fugitives.
PNB fraud development
In the latest on the Rs 12,700 crore (previously Rs 11,400 crore) fraud at PNB, estimates suggest that the scam could negatively impact around 10,000 people working in the gems and jewellery sector as business woes of Gitanjali Group and Nirav Modi firms continue. On Monday late night, PNB revealed that the quantum of the fraud it reported a couple of weeks ago could increase by Rs 1,330 crore. The banking sector’s non-performing assets (NPAs) in the gems and jewellery sector may surge to 30 percent from the current 11 percent of loans disbursed in the troubled segment. Further, as a fallout of the scam, PNB said it had transferred around 1,400 employees. Bank unions have questioned this sudden mass transfer of its employees amid the 'NiMoNia' fraud blaming the senior management for the transfer decisions taken so far. Additionally, the final bill of the PNB fraud to the Indian banking system could well be in the vicinity of Rs 21,000 crore, if one were to account for the secured loans to the Nirav Modi group and the Gitanjali group of companies. With investigative agencies cracking down on both groups and attaching their assets, many other banks, in addition to PNB, may struggle to recover the money loaned to these groups. Chanda Kochhar-led ICICI Bank has informed that it has no exposure to Nirav Modi group of companies, but have given working capital loans along with a consortium to Gitanjali group. It has added that no LoUs have been issued to both the companies. Along with previous Managing Director and other general managers of PNB, ICICI Bank's Executive Director NS Kannan was questioned by the Central Bureau of Investigation (CBI) on Tuesday, in connection with the PNB scam.
Indian railways creates History; converts diesel loco into electric loco train
Indian Railways created history by converting the diesel loco into electric loco with indigenous technology under ‘Make In India’ initiative. This spectacular work is done by The Diesel Locomotive Works (DLW), a production unit of Indian Railways in Varanasi. The DLW authorities claimed that this is for the very first time in the world that any loco has been converted from diesel traction to electric traction.This is a great achievement and proud moment for all of the Indians. “It was a great challenge accomplished in a short span of time. The work on this project was started on December 22, 2017 and the locomotive was successfully rolled out on February 28, 2018,” said the chief public relation officer of DLW Nitin Mehrotra adding that the works are on for testing of unit’s safety and further improvement.
Diesel Locomotive Works :
DLW has turned out WAGC3 class of locomotive (Number 001). This 5,000 hp unit is one half of a 10,000 hp locomotive. What is remarkable about this new series is the concept on which it is based, wherein two diesel locomotives of WDG3A class are converted to one permanently coupled 12-axle, electric locomotive of 10,000 hp. A team consisting of engineers from Research Designs and Standards Organisation (RDSO), Chiitaranjan Locomotive Works (CLW), DLW and Bharat Heavy Electricals Ltd. (BHEL) worked under the leadership of DLW general manager Rashmi Goel and guidance of Railway Board member (traction) Ghansyam Singh. “For this audacious attempt the team set very hard targets for itself,” he said adding that it was decided that only those locomotives will be considered for conversion which are due for mid life rehabilitation (where the diesel locomotives are practically given new heart), retaining their chassis, bogies and traction motors.The team adventurously attempted to use the sidewalls and roof of the decommissioned WAM4 class electric locomotive. The work needed detailed system engineering as there were no precedent designs and experience available anywhere in the world. RDSO prepared equipment layout and DLW prepared the drawings for modification of the WDG3A chassis. The modifications were vetted by RDSO after detailed finite element analysis on standard load scenarios. Hard work pays off .
Railways waives extra charge on debit card tickets

In a move to boost cashless transactions in Railways, the national transport monolith has decided to waive Merchant Discount Rate (MDR) that is levied on tickets booked through debit cards. Directions have been issued to banks in this regard. The move will make rail tickets slightly cheaper for those who opt for booking  through debit cards. The MDR exemption is only applicable on tickets for a transaction value up to Rs 1 lakh. MDR is the charge to a merchant by a bank for accepting payment from their customers in credit and debit cards every time a card is used for payments in their stores. The Railways has also initiated printing ticket details in local languages on unreserved tickets. — TNS



TVS Motor Company launches its first 125cc scooter:TVS NTORQ 125
Loaded with Style, Performance and Technology!

TVS Motor Company, a leading manufacturer of two-wheelers and three-wheelers in the world, unveiled its first 125cc scooter, TVS NTORQ 125.Designed for the youth, TVS NTORQ 125 has been developed based on the TVS Racing pedigree and comes with the state-of-the-art CVTi-REVV 3Valve engine.  The scooter also marks the launch of an exclusive technology platform – TVS SmartXonnect* - making it India’s first connected scooter. Commenting at the launch event, Rajeev Choudhary, National Sales Manager (East Zone), TVS Motor Company, said, “TVS NTORQ 125 is sporty, stylish,high performance and a technology loaded scooter.  This scooter has been concpetualized, designed, developed and engineered for the youth. Apart from being a fantastic ride and overall automotive offering, it is also India’s 1st Bluetooth connected scooter. TVS NTORQ 125 has all it takes in form style, performance,features and technology to deliver customer delight to the youth of India.”
Style
Taking a cue from the design of a stealth aircraftTVS NTORQ 125 embodies a sharp, aggressive style with a signature tail and LED tail lamps.  The well-placed sharp cuts of the scooter accentuate its appeal, lending it a tapering, sporty look.  Equipped with a sporty stub muffler, an aggressive headlamp cluster and textured floor board, it has diamond cut alloy wheels which make a distinct style statement.
Performance
TVS NTORQ 125 boasts of superior performance backed by TVS Racing Pedigree. The TVS Racing scooter team holds a winning record in the Indian Scooter Racing Championships for the past 4 years.  TVS NTORQ 125 gets the new generation CVTi-REVV 124.79cc, single-cylinder, 4-stroke, 3-valve, air-cooled SOHC engine that churns out 6.9kW@7500 rpm / 9.4 PS @7500 rpm and 10.5 Nm@5500 rpm.   The additional valve in the engine accentuates the performance of the scooter which boasts of a top speed of 95 kmph and an excellent acceleration.  TVS NTORQ 125 also has a unique exhaust note.
Connected Technology
TVS NTORQ 125 premieres the TVS SmartXonnect*, an innovative Bluetooth-enabled technology which is paired to an exclusive NTORQ mobile App which can be downloaded from google play store.  TVS SmartXonnect* enables a host of first-in-segment additions to the fully digital speedometer, which boasts of 55 features including navigation assist, top speed recorder, in-built lap-timer, phone-battery strength display, last parked location assist, service reminder, trip meter and multi-ride statistic modes such as Street and Sport.  
Comfort, Safety and Convenience
The ergonomics of TVS NTORQ 125 is developed with supreme focus on comfort and convenience of the rider.  The scooter gets wider 110x80x12 tubeless tyres along with telescopic suspension and least turning radius to facilitate travel across all kinds of terrains.  Features such as pass by switch, dual side steering lock, parking brakes and engine kill switch are focused on creating a fulfilling ride experience.  To facilitate convenience of use, TVS NTORQ 125 comes with external fuel fill, USB charger, large under-seat storage and TVS patented EZ center stand.  The scooter is presently available in Disc variant to ensure maximum rider safety.
Equipped with unique Daytime Running Lamps (DRL),TVS NTORQ 125 is available in the colour selection of Matte Yellow, Matte Green, Matte Red and Matte White. It is loaded with 30 industry-first features. The TVS NTORQ 125 will be available at an attractive price of Rs.58,900 (Ex-Showroom – Guwahati).

Forbes Top 10 Billionaires List For 2018 Is Out. A Look At The World's Richest
The Forbes Top 10 Billionaires List for 2018 features the likes of Amazon chief Jeff Bezos, Microsoft co-founder Bill Gates, famed investor Warren Buffet, Facebook CEO Mark Zukerberg among others. A record 2,208 billionaires have made to the Forbes' 32 annual ranking of the world's billionaires this year. India has 121 billionaires this year- 19 more than last year, says Forbes. Reliance Industries Chairman Mukesh Ambani, who is the richest man in India, moved up to the 19th global rank on the list of  billionaires worldwide. In 2017, he ranked 33rd with $23.2 billion.

1. Amazon chief Jeff Bezos tops the 
Forbes list of the World Billionaire. His net worth is $112 billion. He founded the e-commerce company at a garage in Seattle in 1994. Mr Bezos studied at Princeton University and quit his job to sell books online. The 54-year-old is interested in space travel and his aerospace company, Blue Origin, is developing a reusable rocket that will carry passengers. He purchased The Washington Post in 2013 for $250 million.

2. At number 2 of Forbes Top 10 Billionaires 
List is Bill Gates, who is the co-founder of Bill and Melinda Gates Foundation which works towards improving global health. He founded Microsoft with Paul Allen in 1975. The 62-year-old sold much of his stake in Microsoft and now owns just over one per cent of shares. His net worth is $91.2 billion.

3. At number 3 of Forbes Top 10 Billionaires list is Warren Buffet with net worth of $87.7 billion. Known as the "Oracle of Omaha," Warren Buffett is one of the most successful investors of all time. He first bought stock at age 11 and first filed taxes at age 13. With Bill Gates, the 87-year-old launched The Giving Pledge in 2010, asking billionaires to donate half their wealth towards charitable causes.

4. Bernard Arnault and family is at number 4 with net worth $74.7 billion. He oversees an empire of 70 brands including Louis Vuitton and Sephora. He bought Christian Dior in 1985.

5. With a net worth of $72.4 billion, Facebook CEO Mark Zukerberg is at number 5 of the Forbes Top 10 Billionaires list. A Harvard dropout, he founded Facebook in 2004 at the age of 19. He and his wife, Priscilla Chan, have pledged to give away 99 per cent of their Facebook stake over their lifetimes.
6. Europe's richest man Amancio Ortega has a net worth of $65.9 billion. In 1975, he co-founded Inditex, known for its Zara fashion chain, with his ex-wife Rosalia Mera in 1975. The 81-year-old father of three earns more than $400 million in dividends a year. He is at number 6 in the Forbes Top 10 Billionaires list.
7. At number 7 in the list is Mexico's Carlos Slim Helu and family with a net worth of $68.7 billion. The 78-year-old is the Honorary Chairman of America Movil which is Latin America's biggest mobile telecom firm. Telmex, Mexico's only phone company, is also part of his company. He also owns stakes in Mexican construction, consumer goods, mining and real estate companies and 17 per cent of The New York Times. He has six children.


8. Charles Koch, CEO of Koch Industries, which is America's second largest private company since 1967. His net worth is $60.8 billion. An advocate of criminal justice reform, Charles' Koch Industries doesn't ask for a criminal history on initial job applications. The 82-year-old comes from Kansas and has two children. He is at number 8 in the Forbes Top 10 list of Billionaires.
9. At ninth spot is Executive Vice President of Koch Industries, David Koch, who shares majority control of Koch Industries, US' second largest private firm, with his brother Charles Koch. A well-known philanthropist, David is a donor to New York's Lincoln Center and Memorial-Sloan Kettering Cancer Center. The 77-year old lives in New York and has 3 children.
10. Larry Ellison, CTO and Founder of Oracle, features at number 10 of the Forbes top 10 list of billionaire for 2018. He gave up the Oracle CEO role in 2014 but still serves as the chairman of the board and chief technology officer. In 2016, the 73-year-old pledged to give $200 million to the University of Southern California for a cancer treatment center.


Paytm founder Vijay Shekhar Sharma youngest Indian billionaire

“Sharma, ranked 1,394th on the list with a fortune of USD 1.7 billion, is the only Indian billionaire in the under-40 league.” 
Paytm founder Vijay Shekhar Sharma, 39, is the youngest Indian billionaire, while 92-year-old Samprada Singh, chairman emeritus of Alkem Laboratories, is the oldest, according to Forbes. 
Sharma, ranked 1,394th on the list with a fortune of USD 1.7 billion, is the only Indian billionaire in the under-40 league. Sharma founded fast-rising mobile wallet Paytm in 2011. He has also created Paytm Mall, an e-commerce business business and Paytm Payments Bank. "One of the biggest beneficiaries of India's demonetisation, Paytm has notched up 250 million registered users and 7 million transactions daily. Sharma owns 16 per cent of Paytm, which is now valued at USD 9.4 billion," Forbes said. Of the 2,208 billionaires in Forbes' 2018 list of the world's richest, just 63 are under the age of 40 and more than half (34) are self-made entrepreneurs.  In all, the 63 youngest billionaires in the world are worth a collective USD 265 billion, up  from USD 208 billion last year. 



India seeks collaboration with other nations on 5G, says Telecom Minister Manoj Sinha

India is keen to collaborate with other nations on 5G to cement its position as a "leader" in refinement and adoption of this emerging and important technology, Telecom Minister Manoj Sinha said today. 
Speaking at Convergence India 2018, Sinha termed 5G "one of the most important, emerging" areas and said the country has taken steps to set up a test bed for this technology. "We are keen to collaborate with other nations that are engaged in this endeavour, so we are a leader not a follower in assessment, refinement and adoption of 5G technology," Sinha said. He noted that the 5G push will act as a "catalyst" for India's flagship Digital India mission. 
Recently, Bharti Airtel Chairman Sunil Mittal said that the commercial roll out of 5G services in India will be in sync with other parts of the world. "India will be in step with the world, as world starts to roll out 5G technology in commercial sense, most likely in 2020 is the time," Mittal told reporters here. He was replying to a question on Indian telecom industry's readiness and timeline for 5G services roll out.
"I would say real 5G allocation of spectrum is year and half away. We can start with some (spectrum) bands which are there today but eventually the eco-system will develop on the band which gets decided in Sharm el Sheikh in 2019," Mittal said. Global body International Telecommunications Union, part of United Nations, freezes spectrum for technologies.
The World Radiocommunication Conference of ITU is scheduled to be held in 2019 to freeze spectrum for 5G technology. Mittal said industry readiness for buying spectrum for 5G services will depend on the price that government fixes for it. When asked about the timeline that Indian telecom operators want for auctions, Mittal said: "I will not give any date. They (government) can decide on their own. We will take spectrum when we need." 



Swaraj Tractors forays into high power segment; rolls out new products

Swaraj Tractors, a part of the $ 19 billion Mahindra Group, today launched high power category of tractors ranging from 60 HP to 75 HP. The Swaraj 963 FE will be available in Punjab, AP, Telangana, Tamil Nadu and Chhattisgarh to begin with and will be rolled out pan India by the end of 2018 in a phased manner.  “Swaraj as a brand stands for world-class quality and product excellence. Today’s launch will further strengthen the brand and help build a much stronger portfolio of tractors that will cater to a wide range of farming applications and geographical markets.” Dr Pawan Goenka, managing director, Mahindra & Mahindra said at the launch. Tractors based on this platform will be introduced over a period of time, beginning with the launch of the Swaraj 963FE. The Swaraj 963FE will be available across Swaraj’s wide network of 875 dealers, at a starting price of Rs 7.40 lakh ex showroom.  The tractor has been designed indigenously by Swaraj’s in-house R&D team and is suited for a wide range of applications starting from land preparation to post harvest operations. It is compatible with rotary tillers, MB plough, TMCH, Potato Planter, Dozers, Balers, Banana Mulchers, etc. The Swaraj 963 FE will be available in both 2 wheel and 4 wheel drive options, catering to the diverse requirements of its wide farmer base.  Rajesh Jejurikar, President Farm Equipment Sector, Mahindra & Mahindra said that most of the engineers working at Swaraj come from a farming background. The Swaraj 963FE is a testimony to the belief that Swaraj tractors are made by farmers, for farmers. It is based on unique farming insight that our employees bring with them, he added.  “The tractor has been designed especially for farmers who have specialised needs and large farms. With its new styling, 12+2 speeds, 2200 Kg lift and many new features, it is a class defining product,” Viren Popli, Chief Operating Officer, Swaraj Division, a division of Mahindra & Mahindra Ltd. Said. 







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