urjit patel | rbi governor: from defence to defiance: … defence to... · on the chrome browser in...

Banking LATEST NEWS RBI may soon do away with MCLR

SECTIONS ET APPS ENGLISH E-PAPER ET PRIME SIGN-INFOLLOW US

Banking Finance Insure

Business News › Industry › Banking/Finance › Banking › From defence to defiance: The evolution of Urjit Patel

�-��

CHOOSELANGUAGE

સ�ેસ�ેસ

38,697 -25.70

િન�ટ 50

11,672 -19.00

સો�ુ ં(એમસીએ�સ) ( /1

30,160.00 -28.00

… �એુસડ/ભારતી

70.73 0.14

… ��

�� GUJ

11:07 AM | 30 AUG

MARKET STATS

LIVE

Search for News, Stock Quotes & NAV's

Home Industry Auto Banking/Finance Cons. Products Energy Ind'l Goods/Svs Healthcare/Biotech Services More

Urjit Patel | RBI Governor: From defence to defiance: The evolution of U... https://economictimes.indiatimes.com/industry/banking/finance/banking/...

1 of 12 8/30/2018, 11:18 AM

Most Read Most Shared Most Commented

In volte-face, IIT directors now say coaching not

bad

Reliance Jio inches closer to Bharti Airtel in terms of

revenue market share

Asia's richest banker may acquire rivals after RBI's

rebuff

Storm in a coffee mug: Starbucks vs Sardarbuksh

Google, Paytm Mall to invest Rs 3,500-4,000 crore

in Kishore Biyani's Future Retail

More »

Urjit Patel Jet Airways Starbucks vs Sardarbuksh

Power assets India's 1st Drone Policy SpiceJet

Airtel offers Netflix Subscription Johnson & Johnson

Airport security check Discarding medicines

Indian Railways Smart Coaches

By , , ET Bureau | Updated: Aug 29, 2018, 09.32 AM IST

Compared to his predecessor Rajan, the number of

public appearances may be next to nothing, but

whenever the situation warranted, Patel did not hesitate

to speak his mind.

From defence to defiance: The evolution ofUrjit Patel

The decision of Philip Pirrip, or Pip, to trade

the glamour and glitz of Regency London for

the humble forge in the marshes of Kent

marked the coming of age for one of the

world’s most well-known literary characters in

Great Expectations, underscoring his innate

righteousness and strength of character.

A non-negotiable central bank order this

February to stressed lenders on asset quality

proclaimed to the world of high finance the

coming of age of incumbent Governor Urjit

Patel who, mirroring the struggles of the

protagonist in the Charles Dickens

masterpiece, had to win multiple perception battles of his own to establish his upright and

unyielding credentials. For the man succeeding Raghuram Rajan as the Mint Street boss

in September 2016, the beginning of his innings was far from comfortable.

Patel’s effusive predecessor had earned the ‘rock star’ moniker for his robust

communication with market stakeholders; by contrast, there was widespread discontent

about the newcomer’s reticence. Not only did Patel shun the media, but he also put an end

to the customary pre-policy meetings with bankers and market economists. It was clear

that communicating regularly was not Patel’s immediate priority.

Spat after the PNB scam involving jeweller Nirav Modi

“Regulators have a very important function. Regulators ultimately

decide the rules of the game and regulators have to have a third-eye,

which is to be perpetually open. But unfortunately in the Indian system,

we politicians are accountable, the regulators are not.”

-Arun Jaitley, Finance Minister

“The RBI’s legal powers to supervise and regulate PSBs are also

constrained – it cannot remove PSB directors or management, who are

appointed by the Government of India, nor can it force a merger or

trigger the liquidation of a PSB; RBI has also limited legal authority to

hold PSB boards accountable regarding strategic direction, risk profi

les, assessment of management & compensation. Legal reforms are

thus highly desirable to empower RBI to fully exercise the same

responsibilities for PSBs as now apply to pvt banks & to ensure a level

playing fi eld in supervisory enforcement”

-Urjit Patel Governor, RBI

Atmadip Ray Gayatri Nayak

8Comments

Save

Are you an Advertising & Marketing Agency?Get Your Listing on Economic Times

CREATE FREE LISTING

Industry Top Trending Terms


2 of 12 8/30/2018, 11:18 AM


Foreign brokerages have done Modi’s poll maths for

2019: Here’s what they say

Beware! At its peak, RIL = D-Mart + Flipkart +

Bharti + a media firm

Smallcaps desi fund managers love & the ones they

bought after crash

12 stock ideas that analysts say can deliver solid

gains in 3 weeks

Bandhan Bank’s bid for PNB Housing a tactical

move; some analysts cautious

More »

Sensex Stock Market Stock Recommendations IPO

Upcoming IPO Gold Rate Top Gainers

Rupee vs Dollar Share Market Silver Price Nifty 50

Nifty Bank Budget 2018 Key Highlights Budget 2018

Infosys Share Price

How the Rs 11,000 crore Niravgate will affect Indian

diamantaires

Upcoming IPO Crude Oil Price

NEXT STORY

JSW Steel Stock JSW Steel JSW Steel Ltd Motilal Oswal

Bloomberg L.P.

Comments Add Your Comments

ET Bureau | Aug 30, 2018, 08.31 AM IST

Chandan Taparia, derivative analyst at

Motilal Oswal said the stock is likely to

stay above Rs 375 and can rise to Rs

425-Rs 430 level.

JSW Steel could rise 13% more: Analysts

Shares of JSW Steel could rise as much as 13 per cent in

the near term given the likely buying by index funds due to

its inclusion in the benchmark Nifty from September 28,

said analysts. Continuous rollover of long positions in JSW

Steel futures over the past few derivatives series shows

traders are bullish on the stock.

Shares of JSW Steel ended up 9 per cent at Rs 399 on the

BSE on Wednesday after hitting a lifetime high of Rs

405.40 during the session due the Nifty inclusion news.

The stock marked its biggest one-day gain in five years on

Wednesday. The total traded quantity of 1.5 crore shares was nearly 16 times its two-week

average traded quantity of shares, according to BSE.

Derivative analysts said traders are continuously carrying forward long positions in JSW

Steel. The inclusion in the index was expected for some time, and that is also likely to

have driven interest in the stock in the last few months.

“For the past four series we have seen good rollover of long positions, which suggests

upside. Index funds are likely to buy the stock as it is a newcomer in the index,” said Amit

Gupta, head of derivatives at ICICIdirect. “One can buy the stock near Rs 380. Traders

have started writing Rs 380 put option strike. The stock can move up to Rs 450,” said

Gupta.

Chandan Taparia, derivative analyst at Motilal Oswal said the stock is likely to stay above

Rs 375 and can rise to Rs 425-Rs 430 level.

Analysts tracking the company are not too gung ho about the stock’s prospects.

Bloomberg data showed that the consensus target price on the stock is Rs 367.45, which

is 8 per cent below the current market price of the stock. Prabhudas Lilladher has the

highest target price on the Street on JSW Steel at Rs 450.

0Comments

0Comments

Read more on

From Around The Web Sponsored by

Trending in Markets


3 of 12 8/30/2018, 11:18 AM


GO TO ET PRIME →

WhatsApp says backup messages on Google Drive

not encrypted

Why is Google closer to India than Facebook?

Supreme Court notices to WhatsApp, Indian

authorities

Binge-watchers don’t need data dieting any more

The fatal error internet companies are making

More »

WhatsApp backup WhatsApp Google Pay

WhatsApp payment Google for India Google India

App store tax Data Protection JioPhone 2

Cyber Crime Cryptocurrency Cybersecurity

NEXT STORY

ET Bureau | Aug 29, 2018, 07.25 AM IST

Google has capability to identify a user based on

activities on the device, even if the person accesses

internet on the chrome browser in an incognito mode.

Google collects more data from users viaandroid, says study

BENGALURU: Google gathers more personal

information from users on its Android platform

than consumers know, a study by Vanderbilt

University says.

The study by Prof Douglas Schimdt of

Vanderbit University released earlier this

month points that Google collects more data

of a user on an Android device as against an

iPhone device. Google also has capability to

identify a user based on activities on the

device, even if the person accesses internet

on the chrome browser in an incognito mode.

“Google counts a large percentage of the world’s population as its direct customers, with

multiple products leading their markets globally and many surpassing 1 billion monthly

active users. These products are able to collect user data through a variety of techniques

that may not be easily graspable by a general user,” Schimdt wrote in the report published

on August 15.

A major part of Google’s data collection occurs while a user is not directly engaged with

any of its products, it said. Google is the world’s largest internet firm with over 2 billion

users globally accessing its products such as search, Android phone and applications

such as Gmail, You-Tube, Photos, Keep and calendar. In the US, Android OS, owned by

Google had 53% market share as on January. In India, Google is the dominant platform

with nine out of 10 smartphones using Android-based phones. It has also built India-

specific applications that has massive user adoption in the country.

The study said that both Android and Chrome send data to Google even in the absence of

any user interaction. “Our experiments show that a dormant, stationary Android phone

(with Chrome active in the background) communicated location information to Google 340

times during a 24 hour period, or at an average of 14 data communications per hour. In

fact, location information constituted 35% of all the data samples sent to Google,” it said.

In contrast, “a similar experiment showed that on an iOS Apple device with Safari (where

neither Android nor Chrome were used), Google could not collect any appreciable data

(location or otherwise) in the absence of a user interaction with the device.”

It also claimed that Google could de-anonymize data that could help in targeting

individuals. Google in a statement dismissed the study as misleading and blamed the

author as a witness in an ongoing litigation with Oracle. “This report is commissioned by a

0Comments

Tech Top Trending Terms


4 of 12 8/30/2018, 11:18 AM


GO TO ET PRIME →


bad




rebuff




More »






NEXT STORY

By , ET Bureau | Updated: Aug 28, 2018, 03.26 PM IST

In photo: Sanjeev Bijli Joint MD,PVR & Ajay Bijli, CMD,

PVR

A look into PVR's two-decade magical runand the challenges that lies ahead

Ajay Bijli confesses it took him six years to get

married. “I continued the dialogue hoping she

would say yes someday,” quips PVR’s swash-

buckling chairman cum managing director.

“It’s the same with M&As. You keep engaged

till the seller is emotionally ready.” If

successful mergers are like courtships and

marriages, an interplay of patience and

chemistry, then Bijli took it to heart for almost

four years while wooing the Reddy brothers –

Kiran and Swaroop, his counterparts at SPI

Cinemas – before finally acquiring their

thriving multiplex business a fortnight ago.

The years of intermittent negotiations have been fraught with political bullying and rivals

waiting for the opportune moments to counter. But Bijli’s relentless perseverance, honed

after a similarly long negotiations with the DLF family for DT Cinemas, finally paid off. It’s

no less than a box office bonanza. PVR — already India’s largest multiplex operator — will

get control over the most admired and profitable regional cinema exhibitors in the southern

market — the highest per capita movie consumer in India.

Arijit Barman

0Comments


CREATE FREE LISTING



5 of 12 8/30/2018, 11:18 AM







bought after crash


gains in 3 weeks



More »





Infosys Share Price


diamantaires


NEXT STORY

Rupee Reuters Rising Production Opec Forex

Rupee Vs Dollar Dollar

Also Read

ETMarkets.com | Updated: Aug 29, 2018, 12.41 PM IST

Read this article in :Hindi

Rupee hits record low of 70.52 against USdollar

NEW DELHI: The rupee on Wednesday plunged to an all-

time low of 70.52 against the US dollar. The domestic unit

has emerged as the worst performing Asian currency in

2018, with a fall of 9.82 per cent YTD.

It had opened 22 paise lower at 70.32 against the US

dollar.

The domestic currency on Tuesday bounced back in tepid

fashion from record closing low, gaining 6 paise to end at

70.10, largely tracking bearish dollar cues overseas.

Official data showed foreign direct investment in India grew by 23 per cent to $12.75 billion

during the April-June quarter of 2018-19. A report said that the foreign fund inflows would

help finance the current account deficit (CAD) which is expected to widen to 2.8 per cent of

the GDP in 2018-19, PTI reported.

Commenting on the rupee rout, HDFC Bank said the currency may hit 71 against the US

dollarin the near - medium term.

Recently, Soumya Kanti Ghosh, the Group economic advisor of the State Bank of India

(SBI) said that any sudden appreciation or depreciation of the rupee was not good as it

adds volatility in the market. The rupee had experienced an orderly depreciation as it

moved from Rs 64 to a dollar to Rs 70 over a span of five to six months. Whether the

rupee touches Rs 72, it hardly matters, he said.

On the global front, oil markets were stable on Wednesday, buoyed by falling supplies from

Iran ahead of US sanctions but held in check by rising production outside the OPEC

countries, Reuters reported.

Asian share markets were left in limbo as optimism over the US-Mexico trade deal was

quickly replaced by caution ahead of a looming deadline on tariffs with China.

0Comments

Rupee hits record low against US

dollar, moves closer to 70.50 mark

0Comments

Read more on

Trending in Markets


6 of 12 8/30/2018, 11:18 AM



bad




rebuff

Storm in a coffee mug: Starbucks versus

Sardarbuksh



More »

Nirav Modi Jet Airways new flights

Starbucks vs Sardarbuksh Amazon

India's 1st Drone Policy Anil Ambani

IIT JEE, NEET free coaching Bharat Serums



NEXT STORY

By , , ET Bureau | Updated: Aug 29, 2018, 11.16 AM IST

In India, it was the Maharashtra FDA that first asked J&J

to find the patients and refer them for revision surgery.

Maharashtra FDA ex-chief accuses DCGI ofdelaying action against J&J

Former Maharashtra Food & Drug

Administration Commissioner Mahesh

Zagade, who first initiated investigations into

Johnson & Johnson’s faulty hip implants in

2011, has accused the office of the Drug

Controller General of India (DCGI) of dragging

its feet in taking action against the company

despite enough evidence.

In a telephonic interview to ET, Zagade also

questioned the basis on which the drug

controller’s office re-issued the import licence

for the articular surface replacement (ASR)

hip implants even though the company had voluntarily recalled the product in 2010.

Documents on the drug controller’s website show the DCGI’s office issued a recall notice

in India in December 2013, three years after the official withdrawal by the company.

The former Maharashtra FDA commissioner’s assertion comes when the health ministry

said it is “deliberating” findings of an expert committee, which found J&J had provided

misleading information about faults of its hip replacement products.

“If the product was recalled all over the world, how did the licensing authorities give the

import licence for the product in India? The government machinery was also responsible,”

said Zagade.

During several consultative meetings in 2012 and 2013, Zagade explained to the then

DCGI, GN Singh, both informally and formally, about the seriousness of the matter, which

had already led J&J to pay compensation to patients who experienced adverse effects

after the replacement.

“I told the DCGI at least patients here should be found and sent for re-surgery. But the

DIVYA RAJAGOPAL Prabha Raghavan

0Comments


CREATE FREE LISTING



7 of 12 8/30/2018, 11:18 AM







bought after crash


gains in 3 weeks



More »





Infosys Share Price


diamantaires


NEXT STORY

By , ET Bureau | Updated: Aug 29, 2018, 10.18 AM IST

Although the market is trading at a

record high level, the cash turnover on

the exchanges has been consistently

coming down since January.

Related

Heavy-lifters of Nifty may continue

to gain wealth

Rs 15 lakh crore wealth created in

40 sessions on D-Street; look who

fuelled the rally

Retail investors’ portfolios often don’t reflectthe bull run highs

ET Intelligence Group: Although the market is scaling new

peaks every other day, a persistent murmur among retail

investors is that their portfolio returns do not mirror the

unprecedented rise in the benchmark indices. Retail

investors hold 7.1 per cent of shares in the BSE 200

companies and their holding value dropped to $130 billion

in June 2018 quarter from $140 billion in December 2017.

The anomaly can be attributed to the narrowing depth in

terms of trading volume and rising concentration as

reflected in the lesser number of stocks participating in the

rally.

According to Credit Suisse, the current rally in the Nifty

has been the most concentrated performance since 2015

with the top 10 contributing stocks comprising of 218 per

cent of the index performance while the bottom 10 took

away 95 per cent. The rally is turning out to be more concentrated due to investors’ quality

preference amidst lowest global appetite for equity risk since 2011.

The five index heavyweight stocks such as Reliance Industries, HDFC Bank, HDFC, TCS

and Infosys have contributed nearly 60 per cent to the Sensex gain of 14.2 per cent so far

in 2018.

A concentrated rally has added to the woes of mutual fund (MF) managers who were

underweight on these stocks. The concentration risk of institutional investors can be

gauged from the fact that despite 2,732 traded securities on the BSE, the top 40 stocks

held by foreign portfolio investors (FPIs), MFs and LIC account for 74 per cent, 63 per cent

and 83 per cent of their respective portfolios in that order.

The combined delivery volumes on the BSE and the NSE in August dropped to 33 per

Ashutosh Shyam

0Comments

Trending in Markets


8 of 12 8/30/2018, 11:18 AM


GO TO ET PRIME →

WhatsApp says backup messages on Google Drive

not encrypted

Why is Google closer to India than Facebook?

Supreme Court notices to WhatsApp, Indian

authorities

Binge-watchers don’t need data dieting any more

The fatal error internet companies are making

More »

WhatsApp backup WhatsApp Google Pay

WhatsApp payment Google for India Google India

App store tax Data Protection JioPhone 2

Cyber Crime Cryptocurrency Cybersecurity

NEXT STORY

ET Bureau | Updated: Aug 28, 2018, 09.06 AM IST

Supreme Court notices to WhatsApp, Indianauthorities

NEW DELHI: The Supreme Court on Monday

issued notices to WhatsApp and Indian

authorities, seeking their responses over a

petition questioning the way the messaging

service functions and its move to launch a

payments platform while not having a physical

presence in the country.

A bench comprising Justices RF Nariman and

Indu Malhotra issued notices to the ministries

of law, home affairs, electronics and IT,

finance and the Telecom Regulatory Authority

of India, along with the US company.

The petition said the telecom ministry was treating WhatsApp only as an OTT (over the

top) service, whereas for all practical purposes it was functioning like a telecom service

provider. Therefore, it said, the company must follow all conditions mandated for telecom

operators, including having a grievance redressal system and data localisation.

Both Facebook, which owns WhatsApp, and Google have appointed grievance redressal

officers, but they are based outside India, it said. The petition said this was important in the

runup to the 2019 elections when political parties would hire cyber warriors to influence

results in the 48-hour no-campaigning period.

‘MUST STORE DATA IN INDIAN SERVERS’

WhatsApp has admitted it can use artificial intelligence to prevent fake accounts and stop

a lot of the problematic content from being created, the petition said. This means the

company has the means to stop inappropriate content and therefore must be held liable for

transmission of such material on the platform, it said.

This process must start with the appointment of a grievance officer, said the PIL, filed by

Centre for Accountability and Systemic Change through lawyer Archana Pathak Dave.

Lawyer Virag Gupta argued the case for the NGO. The petition urged the court to restrain

the company from going ahead with the payments service it began testing in February,

since it did not have an India office as mandated by the Information Technology

(Intermediaries Guidelines) Rules, 2011.

“In order to provide payment services, WhatsApp must be directed to store data in Indian

servers as mandated by the RBI, and pay taxes on income caused due to its operations in

India,” it said. Kartik Ganapathy, partner at IndusLaw, said the petition “merely makes

0Comments

Supreme Court issues notice to Centre accusing

Whatsapp of violating rules

Tech Top Trending Terms


9 of 12 8/30/2018, 11:18 AM







bought after crash


gains in 3 weeks



More »





Infosys Share Price


diamantaires


NEXT STORY

ETMarkets.com | Updated: Aug 28, 2018, 03.28 PM IST

Berkshire confirms investment in Paytm;Buffett not involved

US-based Berkshire Hathaway on Monday

confirmed that it has made an investment in

Paytm’s parent firm One97 Communications,

ETNow reported.

The company led by legendary investor

Warren Buffett confirmed to the channel that

the investment has been made. Berkshire,

however, clarified that it was not a transaction

in which Warren Buffett was involved.

ET had reported this morning that Berkshire

was in talks to invest about Rs 2,000-2,500

crore in the Paytm parent firm, in what could be the first direct investment in India by the

legendary investor.

The development comes as Paytm is diversifying its business across financial services

and offline payments.

Paytm also counts Alibaba Group Holdings and SoftBank as major backers.

Todd Combs, one of Berkshire’s key fund managers and who is also seen as a potential

chief investment officer at the firm, is said to have led the transaction, ET reported.

0Comments

Berkshire invests Rs 2500 crore in Paytm; Buffett not

involved directly

Trending in Markets


10 of 12 8/30/2018, 11:18 AM



bad




rebuff




More »






NEXT STORY

By , , ET Bureau | Aug 30, 2018, 07.34 AM IST

Royal Enfield is today the most profitable two-wheeler

maker in India with ebitda margins of over 30% and it

has a market share of 90% in the 200-500 cc space, led

by the Classic 350 model.

Royal Enfield plans range of superbikes,codenamed J, P, Q and K, to take on Harley,Triumph

MUMBAI: Global superbike makers Harley

Davidson and Triumph have announced new,

low-displacement bikes for emerging markets

that will directly aim at the portfolio of Royal

Enfield. So the Indian company that produced

Bullet has chosen to respond by making its

own range of big bikes, codenamed J, P, Q

and K.

Royal Enfield is today the most profitable two-

wheeler maker in India with ebitda margins of

over 30% and it has a market share of 90% in

the 200-500 cc space, led by the Classic 350

model. Unsurprisingly, the global majors are

targeting the mid-size segment of 250-700 cc. This will be the biggest product launch by

Royal Enfield under the ownership of Eicher Motors.

A dozen models are planned over next three to five years, offering a range of new bikes

from 350 cc to 650 cc and above. Work is going on at the company’s UK development

centre, with critical feedback from India.

Five people in the know of Royal Enfield's plans spoke to ETfor this story, all off the record.

Company spokespersons declined comment on specific plans. While the J architecture is

aimed at protecting its domestic turf against the ensuing competition with the new

generation BS-VI version of Classic, Thunderbird, Bullet, and Himalayan, the P

architecture will produce the twin cylinder bikes Continental 650 cc and Interceptor 650 cc

to help the company compete strongly against Harley and Triumph in global markets.

ACQUIRING TOP TALENT

Bigger bikes will be made on the Q and K platform post 2020-2021. The Q architecture is

aimed at Triumph Thruxton, whereas the K platform will come out with even bigger bikes

above 600-700 cc. Royal Enfield is aiming to take its market leadership in the mid-size

motorcycle space from India to the global stage. Both improved production facilities and

acquiring top talent are in focus. Shubranshu Singh was recently hired as head of global

brands. He comes with extensive experience from consumer and entertainment industries.

Enfield is also talking to Vimal Sumbly, the former head of Triumph brand in India, to lead

its Asia-Pacific business, which the company believes has the potential to be a big volume

contributor in the future. It first hired the services of ex-Harley Davidson man Rod Copes a

few years back to lead Enfield’s North American operations.

Ketan Thakkar Ashutosh R Shyam

0Comments


CREATE FREE LISTING



11 of 12 8/30/2018, 11:18 AM