Credit rating agency ICRA on Thursday cautioned that if the Government divests majority stake in the Public Sector Banks (PSBs) that were left out of the PSBs consolidation exercise announced by Government of India (GoI) last year, it will be credit negative for them.

The agency expects the deposit franchise for these banks to be monitorable as these deposits could be highly sensitive to their ownership.

Bank of India, Central Bank of India, Bank of Maharashtra, UCO Bank, Indian Overseas Bank and Punjab & Sind Bank were the PSBs that were left out of the consolidation exercise.

GoI owns 83-96 per cent stake in these six banks with a market value of around ₹58,000 crore as on end July 2020.

The agency observed that while the stake sale could result in the GoI to meet part of its divestment targets, it will also save it from the potential future liabilities

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By Gwladys Fouche and Simon Jessop

OSLO/LONDON, Aug 24 (Reuters)Storebrand STB.OL, Norway’s largest private asset manager, has divested from ExxonMobil XOM.N, Chevron CVX.N, Rio Tinto RIO.LRIO.AX and BASF BASFn.DE citing their lobbying practices regarding climate.

The stakes were small compared to Storebrand’s $91 billion in assets under management but their sale marks an escalation from the company’s historical preference to engage with companies over such issues.

The move comes amid growing concern about trade groups lobbying to soften green finance rules in Europe.

“If you have corporates that are spending a lot of resources and energy to try to avoid that regulation that is required, that is clearly not supportive and not in the long-term interest of anybody, if you want to reach the climate goals or the (United Nations’) sustainable development goals,” Storebrand Asset Management CEO Jan Erik Saugestad told Reuters.


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a truck driving down a dirt road: Photograph: AFP/Getty Images

© Provided by The Guardian
Photograph: AFP/Getty Images

At this point in history, time does not appear to have been especially kind to the views of the famed economist Milton Friedman.

He may be one of the few recipients of the Nobel memorial prize in economic sciences that non-dismal scientists can actually name (others might be Friedrich Hayek, Joseph Stiglitz, Paul Krugman and, ahem, President Josiah Bartlet from The West Wing) but one of his most famous ideas is looking somewhat dated.

In 1970, Friedman memorably wrote in a New York Times article that businesses existed purely to make money for shareholders, and that executives drivelling on about being “socially responsible” were “preaching pure and unadulterated socialism”. It was powerful stuff, which basically set the tone for US capitalism for 50 years.

a truck driving down a dirt road: BHP’s operation in Pilbara, Australia. The Nest pension fund sold its last share in the FTSE 100 company earlier this month.

© Photograph: AFP/Getty Images
BHP’s operation in Pilbara, Australia. The Nest pension fund sold its last share

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