News digest: Corporate earnings, Jet board meeting, Assembly polls and more

Jet Airways board likely to consider multiple fundraising options today

Naresh Goyal-controlled Jet Airways at its board meeting on Monday is likely to consider multiple fundraising options to turn around the airline amid a tough operating environment and cash crunch.

“There will be a discussion on the way forward at the board meeting as financial re-energisation is the need of the hour,” a source privy to the development told Business Standard.

According to him, the board would explore the options the company has received so far and weigh each of them. Read more

Corporate earnings failed to keep pace with  growth in the past decade

Corporate earnings have failed to keep pace with the trajectory of nominal gross domestic product (GDP) over the past 10 years. The combined net profit of listed companies has grown at a compound annual growth rate (CAGR) of 4.1 per cent, against 12.9 per cent growth in India’s GDP at nominal prices during the period.

In rupee terms, companies’ combined net profit is up 50 per cent, from Rs 2.6 trillion in 2007-08 (FY08) to Rs 3.9 trillion at the end of 2017-18 (FY18). On the other hand, economic output, or GDP at nominal prices, is up 234 per cent, from Rs 50 trillion in FY08 to Rs 167 trillion last fiscal year, leading to a sharp fall in the ratio of corporate profits to underlying GDP. Read more 
 

Banking system needs to ensure liquidity in market, says Arun Jaitley

Finance Minister (FM) Arun Jaitley on Sunday called for an enabling environment to improve the credit ability of banks and provide liquidity to the market, at a time when the government has suggested a slew of measures from the Reserve Bank of India (RBI) to improve the cash flow in the economy.

“A strong banking system will be able to improve credit in those sectors which need credit. MSMEs (micro, small and medium enterprises) need credit. NBFCs (non-banking finance companies) need credit, as a large part of the lending is done by them and their ability to lend cannot be reduced,” Jaitley said, adding, “The strength of the banking system has to improve. Banks must be in a position to give credit, so that the liquidity of the market is maintained.” Read more

Five-state Assembly polls seen as bellwether for 2019 Lok Sabha elections

Polling for much-anticipated elections to five state legislatures is scheduled to kick-start on Monday, with the electorate in 18 of Chhattisgarh’s 90 seats scheduled to vote.

The counting of votes to elect new governments in Chhattisgarh, Mizoram, Telangana, Rajasthan, and Madhya Pradesh (MP) is scheduled for December 11. The results of these five Assembly polls would be a barometer of the public mood in the run-up to the 2019 Lok Sabha (LS) polls, but also crucially influence the complexion of politics until then. Read more 

Malaysia's IHH likely to get control of Fortis Healthcare this week

Malaysian healthcare major IHH Healthcare Berhad is likely to take formal control of Fortis Healthcare Ltd (FHL) this week, sources claim.

The country’s fair trade regulator, Competition Commission of India, gave the go-ahead to the deal in October-end, paving the way for IHH to acquire a 31 per cent stake in India’s second-largest hospital and diagnostic chain through a fund infusion of Rs 40 billion. Read more