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Compounded interest to be charged from borrowers during 3-month moratorium: IBA

The organisation of banks has urged borrowers to avail relaxations only if there is a disruption in cash flows or loss of income due to Covid-19.

By Ankur Mishra

Borrowers opting for the three-month moratorium granted by their lenders will have to pay compounded interest at the end of the period, Sunil Mehta, chief executive, Indian Banks’ Association (IBA), clarified in a frequently asked questions (FAQ) document reviewed by FE. Banks have individually started announcing Covid-19 regulatory package in a response to RBI’s announcement of three months moratorium on term loans including corporate, MSME, agriculture, retail, housing, auto and

Coronavirus lockdown: BSNL, MTNL extend prepaid validity till April 20, Airtel till April 17

More telcos are expected to join in soon. (Photo credit: Reuters)

State-run BSNL and MTNL are extending the prepaid pack validity for their subscribers till April 20 in line with sector regulator TRAI’s directive for all telecom operators in the wake of the novel coronavirus outbreak. This means subscribers can continue to receive incoming calls even after the validity of their prepaid plan is exhausted. BSNL and MTNL will also credit an additional Rs 10 worth of talk-time in their prepaid accounts so they can continue making phone calls or sending SMS even after zero balance.

Union telecom minister Ravi

Artha Venture Fund invests Rs 3.6 crore in Agnikul

Agnikul founders Srinath Ravichandran (L) and Moin SPM

Artha Venture Fund (AVF), an early-stage micro-VC fund, has announced an investment of $500,000 (Rs 3.6 crore) in space-tech company Agnikul in its Pre-Series A funding round. Agnikul is an aerospace startup incubated at IIT Madras’ incubation cell (NCCRD). It designs and manufactures launch vehicles capable of carrying up to 100 kg of weight to Lower Earth Orbits (LEO).

AVF, which is sector agnostic, decided to invest in Agnikul as it is doing significant amount of work in the launch of small satellites by reducing the wait time and has the ability

Payment norms for discoms relaxed: Power companies told to ensure uninterrupted supply

Tariffs on domestic consumers is on an average around 40% lower than that for industrial users of power.

To assure uninterrupted power supply in the middle of the country-wide lockdown to contain the coronavirus outbreak, the Union power ministry has relaxed payment norms for electricity distribution companies (discoms). The Central government has asked the state-run power generating companies such as NTPC and Power Grid Corporation of India Ltd (PGCIL) to not curtail supply to the states even if the discoms do not clear payments to them on time.

The lockdown in seen to take a toll on the finances of

COVID-19 relief: Lodha waives rentals for retailers in malls

“Given the situation will affect numerous retailers, we hope that with this waiver, retailers across our developments will be able to focus on rebuilding their business effectively once the lockdown ends,” said a company spokesperson.

The Lodha Group announced on Thursday that it has given a full waiver to its retail partners from paying rents since March 15 until the government permits reopening of retail operations, as the country reels under the impact of Covid-19 outbreak related lockdown.

Adhering to the closing of premises that have large public gatherings, retailers including malls (excluding essential services) are currently in distress as

Gross non-performing assets of banks may rise up to 9.6-9.9%: CARE

The data compiled by CARE showed that gross NPAs of banks showed a declining trend from 9.5% in the June quarter to 9.3% in the September as well as December quarters of financial year 2020.

The gross non-performing assets (GNPA) of banks likely to rise up to 9.6-9.9%, compared to 9.3% till the December quarter, given the impact of the Covid-19 outbreak, exposures to certain stressed sectors, moderation in the bank credit growth and muted demand scenario, according to a report by rating agency CARE on NPA movement.

The rating agency has done analysis of 38 banks, which showed the

Developed a way to reduce traffic on network by 25%: Netflix on easing pressure on infra

“Consumers should continue to get the quality that comes with their plan—whether its ultra-high, high or standard definition,” Ken Florance, vice-president, content delivery at Netflix said.

Netflix on Tuesday said it has developed a way to reduce traffic on telecommunications network by 25% while maintaining the quality of its service. The over-the-top (OTT) player will be deploying the technique in India for the next 30 days.

“Consumers should continue to get the quality that comes with their plan—whether its ultra-high, high or standard definition,” Ken Florance, vice-president, content delivery at Netflix said.

The move comes after the Cellular Operators’ Association

Telcos seeks more time from DoT to provide bank guarantees

The telcos have sought support for various other things due to the ongoing crisis.

The telecom operators have written to the department of telecommunications (DoT) seeking extension to provide bank guarantees (BGs) as banks are working with limited resources these days due to the rapid spread of coronavirus. Sources said industry body Cellular Operators Association of India (COAI) has written to the DoT on March 20 seeking relaxation in providing BGs.

Operators have to renew their BGs, primarily for deferred spectrum payments, and since the government has announced a two-year moratorium for spectrum payments, the incremental amount of many BGs

Data services: Telecom companies, OTTs quarrel over floor price

For instance, associations including IAMAI, Internet Society, CCAOI, Asia Internet Coalition (AIC) etc, which primarily cater to internet companies, are opposing the idea of setting a floor price

Telecom operators may be united in their demand for a floor price for mobile tariffs (data & voice), but various start-ups, associations of internet firms as also consumer groups are opposed to the idea.

This is understandable because the telecom operators who are currently providing below-costs services — per GB data rates are as low as Rs 4-5 — want to improve their realisations. However, start-ups or internet firms, etc are basically