Top headlines: UBS needs RBI nod for C-Suisse, windfall tax on oil slashed

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UBS needs RBI approval to operate Credit Suisse as a bank in India

Zurich-headquartered UBS, which is acquiring Credit Suisse in an all-share deal, will have to seek the Reserve Bank of India’s (RBI’s) approval to continue with Credit Suisse’s bank licence, informed sources familiar with the development.

This is because UBS surrendered its bank licence about a decade ago after the banking regulator denied its request to offer wealth management services.

Credit Suisse has a licence in India to operate as a foreign bank. Read more

UBS buy gives Credit Suisse India's employees a glimmer of hope

UBS stepping in to save Credit Suisse with a $3.2-billion acquisition has provided the beleaguered Swiss bank’s India employees a glimmer of hope. The surprise deal — engineered by the Swiss government — has triggered optimism of fewer job losses at Credit Suisse’s India unit and better synergies at key verticals, such as wealth management and investment banking. 

“UBS is a much stronger hand. Coming within its fold will give Credit Suisse’s wealth management and investment banking divisions a good home. We don’t expect further job cuts after the UBS deal,” said a Credit Suisse staffer. Read more

Windfall tax on crude oil slashed to Rs 3,500/tonne, duty on diesel hiked

The Centre, late on Monday, slashed the windfall tax on locally-produced crude oil to Rs 3,500 per tonne from Rs 4,400 per tonne earlier. However, it hiked the export duty on diesel from Rs 0.50 per litre to Rs 1 per litre.

Petrol and Aviation Turbine Fuel (ATF) have been exempted from the export levy. The new rates will be effective March 21. This is the second rate cut in March.

Earlier, on March 4, the Centre had slashed the windfall tax on the export of diesel to an all-time low of Rs 0.50 per litre. The levy on crude oil was hiked to Rs 4,400 per tonne from Rs 4,350 per tonne earlier. Read more

India's steadying economy shows early signs of weakening consumption

India’s economic activity held steady in February though there were early signs of slowing consumption amid concerns of future growth prospects and hawkish monetary policy.
 

The needle on a dial measuring the so-called animal spirits was unchanged from January when it moved left after picking up speed for the last month of 2022, signaling weakening domestic demand is becoming a concern. Eight high-frequency indicators tracked by Bloomberg showed moderating credit growth, weak tax revenues and a rising unemployment rate. Read more

DMRC-RInfra controversy shows potential glitches in framing PPP contracts

The cost of arbitration over the Delhi Airport Metro Express holds salutary lessons for government bodies setting up public private partnership (PPP) projects as India pushes ahead with an over Rs 100-trillion infrastructure agenda. The critical learning is how to share the risks from these projects.

Last week, the Delhi High Court ordered the Delhi Metro Rail Corporation (DMRC) to fully pay, within March, the Rs 8,009.38 crore due to a Reliance Infrastructure Ltd (RInfra) company arm that was running the Delhi Metro stretch to the airport up to 2013. DMRC, the court ruled, had lost the arbitration claim and must pay up promptly (of the total, 21 per cent has already been paid). The sum is several times the annual revenue of DMRC from its Delhi operations. Read more