News Updates: May 12, 2020

• Nippon Life is learned to have initiated talks to buy stake in IndusInd Bank.
• Union minister Mr. Nitin Gadkari said that a relief package for the Indian industry is expected to be announced in 2-3 days.
• The government has decided against lowering returns of regulated power assets. Last week government was said to be considering a proposal to ask central utility companies like NTPC, PGCIL to forego half of their ROE which is 15.50% at present in order to help ailing distribution companies.
• Bond yields have spiked by around 20 bps, after government announced significantly higher borrowing plan.
• Rupee on Monday declined by 19 bps to close at one week low of 75.73 against USD.
• Banks are likely to transfer bad loans worth Rs. 60,000 Crore to an ARC or bad bank to clean their balance sheet. Government is likely to infuse 50% of the capital amounting to about Rs. 10,000 Crore.