BASIC FINANCIAL MANAGEMENT (FIN302)

Submitted By:
Jameel Ahmad
Section: Q1815
Registration no.: 11813086

In partial fulfilment for the requirements of the award of the degree of

BACHELOR OF BUSINESS ADMINISTRATION (INFORMATION

TECHNOLOGY)

“Mittal School of Business”

LOVELY PROFESSIONAL UNIVERSITY

Phagwara, Punjab.
BUSINESS NEWS INTERPRETATION
NEWS NO:1
HEADLINE: Yes Bank extends bancassurance tie-up with Max Life Insurance
for 5 years
WEBLINK: https://economictimes.indiatimes.com/industry/banking/finance/banking/yes-bank-
extends-bancassurance-tie-up-with-max-life-insurance-for-5-years/articleshow/75119997.cms
SCREENSHOT:

ANALYSIS OF THE NEWS:

Private sector life insurer Max Life Insurance on Monday said Yes Bank has
extended the bancassurance partnership for next 5 years. Building on the 15-year
partnership, the two firms remain committed to offering their customers a broad
range of need-based products and services, deploying technology across the
customer value chain to further enhance efficiencies and leveraging existing
ecosystems to facilitate superior experiences for their customers. In the coming 5
years, both companies also plan to further enhance their business and make
investments in the area of technology, new product development, and customer
service to ensure to help the customers and realise their real value and financially
protect their future. For that companies thinking about taking new initiative and
investing in IOT technology for example speech recognition and other advance
technologies.

NEWS NO:2
HEADLINE: Bandhan Bank's FY20 deposits rise 32%; 60% jump in loans and
advances
WEBLINK: https://www.business-standard.com/article/finance/bandhan-bank-s-fy20-deposits-
rise-32-to-rs-50-073-cr-lcr-at-161-120041300290_1.html
SCREENSHOT:

ANALYSIS OF THE NEWS:

Bandhan Bank's total deposits grew by 32 per cent to Rs 50,073 crore during the
fiscal year that ended in March 2020. The bank had total deposits of Rs 43,232
crore at end of March 2019. Retail deposits formed the bulk of the total deposits at
78.4 per cent, which showed an increase of 34 per cent to Rs 44,760 crore as on
March 31, 2020, Bandhan Bank said in a regulatory filing. In October 2019, the
growth was aided as Ahmedabad-based Gruh Finance -- the affordable housing
finance arm of HDFC Ltd with a loan portfolio of Rs 17,700 crore -- merged with
the Kolkata-based lender. Loans and advances also jumped by 60 per cent to Rs
71,825 crore during 2019-20, from Rs 44,776 crore the year before. Deposits from
micro-banking customers continue to be strong and stable despite three-weeks of
lockdown. Shares of Bandhan Bank were trading at Rs 175.85 apiece on BSE,
down 8.55 per cent from their previous close.

NEWS NO:3
HEADLINE: China auto sales sink 48.4% in March as virus hurts demand
WEBLINK: https://economictimes.indiatimes.com/news/international/business/china-auto-sales-
sink-48-4-in-march-as-virus-hurts-demand/articleshow/75095855.cms
SCREENSHOT:

ANALYSIS OF THE NEWS:

China's auto sales sank 48.4% in March from a year ago as the economy reeled
from the coronavirus. Sales of SUVs, sedans and minivans totaled just over 1
million, the China Association of Automobile Manufacturers said. Total vehicle
sales, including trucks and buses, declined 43.3% to 1.4 million. The decline was
an improvement over February's record-setting 81.7% sales plunge after auto
dealerships and other businesses were shut down to fight the try to stop the virus's
spread. The ruling Communist Party started reopening factories, restaurants and
stores in March after declaring victory over the outbreak. But consumers who are
uneasy about potential job losses or a resurgence of the virus are reluctant to make
big purchases. But in other hand on the consumer side, since the epidemic has not
completely ended, some market demand is still being suppressed. Demand already
was weak due to consumer jitters about a tariff war with Washington, slower
economic growth and possible job losses. Sales fell 9.6% last year, their second
straight annual decline. EV sales for the first three months of the year were off
56.4% at 114,000. China is the biggest market for electrics, accounting for about
half of last year's global sales.

NEWS NO:4
HEADLINE: Covid-19 outbreak and lockdown impact income of 85% of NCR
households: NCAER survey

WEBLINK https://economictimes.indiatimes.com/news/economy/indicators/covid-19-outbreak-
and-lockdown-impact-income-of-85-of-ncr-households-ncaer-survey/articleshow/75120845.cms
SCREENSHOT:

ANALYSIS OF THE NEWS:

The data showed that casual labourers were disproportionately affected with nearly
75% stating their wages were severely affected. This figure was less than half, at
46.7% for salaried employees. The telephonic survey conducted between April 3-6,
included 1,750 participants covering both rural and urban areas of Delhi
NCR.Incomes of almost 85% of households in the national capital region (NCR)
have been impacted by the Covid-19 outbreak and the lockdown, according to a
survey released by the National Council for Applied Economic Research
(NCAER) on Sunday. The survey also found that nearly a third, or 29.3% of all
households were affected by a shortage of food, cooking, fuel and medical
supplies. The shortage of medical supplies is especially concerning as it could lead
to further complications considering 36% of respondents reported that members of
their households curtailed visiting a health facility for a medical condition owing to
social distancing norms.

NEWS NO:5
HEADLINE: Domestic Passenger Vehicle Sales Down 51% In March: Industry
Body SIAM

WEBLINK https://www.ndtv.com/business/coronavirus-covid19-impact-on-car-sales-domestic-
passenger-vehicle-sales-down-51-in-march-siam-2210852

SCREENSHOT:

ANALYSIS OF THE NEWS:

The sales data comes as an already-battered auto sector struggles against weak
demand due to the fallout from the coronavirus pandemic. Domestic passenger
vehicle sales dropped 51 per cent last month, data from industry body SIAM or
Society of Indian Automobile Manufacturers showed on Monday. In its monthly
report, SIAM said passenger vehicle sales stood at 1,43,014 units last month, as
against 2,91,861 units in the corresponding period a year ago. The sales data comes
as an already-battered auto sector struggles against weak demand due to the fallout
from the coronavirus pandemic. Automobile industry witnessed one of its sharpest
decline in domestic sales in March 2020 due to subdued demand and consumer
sentiments which was further aggravated by the COVID-19 outbreak in the
country. Sales of commercial vehicles - light, medium and heavy carriers of
passengers and goods - declined by 88.05 per cent to 13,027 units in March 2020
compared to 109,022 units in March 2019.

NEWS NO:6
HEADLINE: What RBI Just Observed About COVID-19 Impact on Economy
WEBLINK https://www.ndtv.com/business/coronavirus-crisis-what-rbi-just-observed-about-covid-
19-impact-on-economy-march-mpc-meet-minutes-2210835

SCREENSHOT:

ANALYSIS OF THE NEWS:

The impact of the novel coronavirus outbreak on the economy would depend on
the depth, duration and diffusion of the crisis, the Reserve Bank of India said in the
minutes of its emergency Monetary Policy Committee (MPC) meeting in March.
There is an unprecedented uncertainty about the exact impact COVID-19 will have
on the near-term growth outlook. Though difficult to quantify, it is clear that
aggregate demand will weaken significantly in the near future, which will impact
the growth prospects for the year as a whole," wrote RBI executive director and
Monetary Policy Committee member Janak Raj. The main challenge for monetary
policy at this juncture is to ensure that the adverse impact of COVID-19 on
domestic demand is not amplified. Several analysts have cut their 2020-21 GDP
growth forecasts to 1.5-2 per cent, the lowest in decades, while the RBI has
officially refrained from providing any GDP projection on account of the rapidly
evolving situation. The COVID-19 pandemic is an invisible assassin which needs
to be contained quickly before it spreads and wreaks havoc on valuable human
lives and the macro economy.

NEWS NO:7
HEADLINE: Crude Prices To Continue To Fall In Coming Weeks, Historic
Deal Insufficient: Goldman Sachs

WEBLINK : https://www.ndtv.com/business/crude-oil-price-coronavirus-oil-to-continue-to-fall-
historic-deal-insufficient-says-goldman-sachs-2210791

SCREENSHOT:

ANALYSIS OF THE NEWS:

Goldman Sachs said on Sunday that oil prices would continue to fall in the coming
weeks, reasoning that a "historic yet insufficient" deal by major oil producers to cut
output is unlikely to offset a coronavirus-led demand rout. The Organization of the
Petroleum Exporting Countries (OPEC) and its allies, a grouping known as
OPEC+, said they had agreed to reduce output by 9.7 million barrels per day (bpd)
for May and June to stem a slump in prices. The bank saw downside risks to its
short-term oil price forecast of around $20 per barrel for Brent, but projected the
global crude benchmark would outperform US oil because OPEC+ producers'
exports would likely fall, freeing up floating storage space. risks surrounding its
2021 price outlook of $52.50 per barrel for Brent were "skewed squarely to the
upside", since the "violent market rebalancing" will be followed by a sharp
rebound once demand picks up again. Ultimately, this simply reflects that no
voluntary cuts could be large enough to offset the 19 million bpd average April-
May demand loss due to the coronavirus.
NEWS NO:8
HEADLINE: World Bank Forecasts Worst Economic Slump in South Asia in
40 Years
WEBLINK : https://www.ndtv.com/business/world-bank-forecast-on-coronavirus-pandemic-worst-
economic-slump-in-south-asia-in-40-years-2210322

SCREENSHOT:

ANALYSIS OF THE NEWS:

India and other South Asian countries are likely to record their worst growth
performance in four decades this year due to the coronavirus outbreak, the World
Bank said on Sunday. The South Asian region, comprising eight countries, is likely
to show economic growth of 1.8 per cent to 2.8 per cent this year, the World Bank
said in its South Asia Economic Focus report, well down from the 6.3 per cent it
projected six months ago. India's economy, the region's biggest, is expected to
grow 1.5 per cent to 2.8 per cent in the fiscal year that started on April 1. The
World Bank has estimated it will grow 4.8 per cent to 5 per cent in the fiscal year
that ended on March 31. Three countries - Pakistan, Afghanistan and the Maldives
- are expected to fall into recession, the World Bank said in the report, which was
based on country-level data available as of April 7. India's lockdown of 1.3 billion
people has also left millions out of work, disrupted big and small businesses and
forced an exodus of migrant workers from the cities to their homes in villages. To
minimize short-term economic pain, the Bank called for countries in the region to
announce more fiscal and monetary steps to support unemployed migrant workers,
as well as debt relief for businesses and individuals.

NEWS NO:9
HEADLINE: SBI Cards slips 13%, hits new low; stock down 32% from issue
price
WEBLINK https://www.business-standard.com/article/markets/sbi-cards-slips-13-hit-new-low-
since-listing-down-32-against-issue-price-120041300344_1.html

SCREENSHOT:

ANALYSIS OF THE NEWS:

Shares of SBI Cards and Payment Services slipped 13 per cent to Rs 516 on the
BSE on Monday amid the buzz of lockdown being extended beyond April 14. The
non-banking finance company's stock was trading at its lowest level since listing
on March 16, 2020. With today’s fall, the stock has now fallen 32 per cent below
its issue price of Rs 755 per share. SBI Cards saw a weak debut due to prevailing
market condition as the uncertainty regarding the effect of the coronavirus
epidemic kept investor sentiment in check. SBI Cards is the second largest credit
card issuer in India. It offers various types of credit cards considering the need of
retail clients (viz. Lifestyle Cards, Rewards, Shopping, Travel and Fuel). It also
offers corporate cards and is the largest co-brand credit card issuer in India. It also
issues card in partnership with smaller or regional banks. Meanwhile, domestic
mutual funds and foreign portfolio investors (FPIs) have increased their stake in
SBI Cards post its listing. Total holding of institutional investors rose by 1.78 per
centage points to 7.86 per cent as on March 31, 2020. They held 6.08 per cent
stake as on March 16, 2020, the shareholding pattern data shows. Mutual funds
holding in SBI Cards increased to 3.04 per cent from 1.6 per cent and of FPIs to
4.07 per cent from 3.53 per cent. Individual shareholders, however, reduced their
stake in the company to 5.57 per cent from 7.33 per cent, data shows.

NEWS NO:10
HEADLINE: Agricultural equipment market in slow lane amid coronavirus
lockdown
WEBLINK : https://www.business-standard.com/article/companies/agricultural-equipment-
market-in-slow-lane-amid-coronavirus-lockdown-120041300022_1.html

SCREENSHOT:

ANALYSIS OF THE NEWS:

The lockdown imposed by the Centre to curb Covid-19 pandemic is weighing on
the demand for tractors and other agricultural equipment, say manufacturers. An
acute shortage of labour is prompting farmers to take to mechanisation. But with
tractor dealers shuttered and banks and financial institutions snapping the credit
lines for purchases, the world’s biggest market for farm equipment is in disarray.
Close to 95 per cent of tractors in India are bought on credit. While the government
has exempted the Agri-machinery and spares from lockdown, the sale of tractor
remains locked out as they do not fall within the essential category, said Shenu
Agarwal, chief executive at Escorts Agri Machinery. Local deliveries of tractors at
M&M fell 27 per cent to 13,418 units in March over the same period a year ago. At
Escorts, the fall was sharper — its domestic sales dropped 54.8 per cent to 5,288
units over a year ago. banks having completely stopped lending for tractors,
farmers are highly unlikely to buy even when outlets are allowed to open, said
Agarwal of Escorts. He attributed it to a recent circular by the Reserve Bank that
makes it mandatory for the banks to take a physical signature of the borrower and
undertake a field inspection before lending. The lockdown has completely
disrupted the supply chain. Fearing police harassment and scared of the unknown,
several truck drivers and migrant labourers have left for their native places. As a
result, there is an acute shortage of driver in the road transportation sector, which
has led to an increase in freight rates.
 Conclusion
Throughout history, a pandemic has had a negative impact on business across all
levels. The 1918 influenza pandemic also called the Spanish flu had a devastating
impact on the businesses across the US and Europe. Although the exact amount of
the total loss remains unavailable, researchers estimated that the overall economic
loss to US-based businesses revenue was in double digits percentage drop among
others. The sectors impacted the worst were service providers and entertainment.
In 2020, the coronavirus pandemic has created a similar ripple effect in the global
economy, where the total loss from the impact is estimated to be $1Tn.
In India and around the world, the impact of the coronavirus pandemic is not
limited to a few sectors but is evident across all stakeholders of the economy. For
instance, the venture capital activity in the Indian ecosystem has witnessed a
slowdown as social distancing and self-isolation is hampering investor meetings.
Similarly, a negative impact is evident across both the white-collar and the blue-
collar sector.

SOURCES:
https://economictimes.indiatimes.com/
https://www.business-standard.com/
https://www.ndtv.com/