<\/p>\n\n\n
2018 was definitely a landmark year when it comes to\nfinancial events. There were a number of\nevents which shook the nation at the time, and importance of these cannot be\nunderstated. Let us take a look at some of the biggest\nevents this year, which has the potential\nto affect the landscape over the long\nterm. <\/p>\n\n\n
Recap\nBonds<\/strong><\/p>\n\n\n The government went through with\nthe plan it had conceived in October 2017\nand issued recap bonds worth Rs. 88000 crore at the start of 2018. This was the first instalment in a total of Rs.\n2.11 lakh crore and the government said\nthat it would move towards bank capitalisation by infusing at least Rs. 1.06\nlakh crore in issue bonds. <\/p>\n\n\n PNB Scam<\/strong><\/p>\n\n\n By far the biggest scandal to\nrock the financial landscape this year, the first quarter was rocked by the allegations regarding a massive\nfraud regarding Nirav Modi and the Punjab National Bank. The size of the scam\nwas alleged to be more than 14000 crores,\nand this meant that the bank had to request the RBI to spread the scam out over 4\nquarters, unlike the usual procedure. <\/p>\n\n\n FPI Debt\nInvestments<\/strong><\/p>\n\n\n One of the many bold decisions\nwhich the RBI took this year, this one saw the RBI lowering the mandatory\nholding period by foreign investors of government debt securities in the nation\nfrom the previous tenure of three years to one, and this happened in April. <\/p>\n\n\n Loan\nWaivers<\/strong><\/p>\n\n\n There was a huge number of loan waivers this year, with a huge amount of existing farming loans in states\nbeing waived off by the banks. It is to be noted\nthat seven out of the nine states where this occurred were scheduled to undergo\nelections this year. The total loan amount waived off by the banks amounted to\nRs. 1.72 lakh crore. <\/p>\n\n\n IL&FS<\/strong><\/p>\n\n\n IL&FS was the largest infrastructure company in the nation,\nand in 2018, it defaulted on a debt of Rs. 91000 crore it had racked up. This had a huge\nimpact on the balance sheets of many companies which worked with this organisation,\nand there was a massive tremor felt across the financial landscape in the\nnation. Even DSP Mutual Fund wrote down the investments it had in IL&FS to zero after this news was announced by the organisation. <\/p>\n\n\n Bank\nMergers<\/strong><\/p>\n\n\n This was a\nyear of Bank mergers, and many banks like Dena Bank, Vijaya Bank and the Bank\nof Baroda underwent mergers. LIC also increased the share it has in IDBI Bank\nfrom 11% to 51%. <\/p>\n\n\n Resignation<\/strong><\/p>\n\n\n After a long period of tussling\nwith the central government regarding the higher dividends and allowing eh\nbanks to lend more, RBI Governor Urjit Patel finally resigned from his position\nciting personal reasons. After a brief interim period, Shantikanta Das was appointed as the Governor of the Reserve\nBank of India. <\/p>\n\n\n These are only a few of the many\nfinancial upsets which took place this year. We must wait to see what 2019 has\nin store for us, and hope that it is not as shocking a year as 2018 was.<\/p>\n","protected":false},"excerpt":{"rendered":" 2018 was definitely a landmark year when it comes to financial events. There were a number of events which shook the nation at the time, and importance of these cannot be understated. Let us take a look at some of the biggest events this year, which has the potential to affect the landscape over the […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_mo_disable_npp":"","_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[22],"tags":[96,152],"class_list":["post-133640","post","type-post","status-publish","format-standard","hentry","category-finance","tag-investment-banking","tag-investment-banking-courses"],"acf":[],"aioseo_notices":[],"modified_by":"Imarticus Learning","_links":{"self":[{"href":"https:\/\/imarticus.org\/blog\/wp-json\/wp\/v2\/posts\/133640","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/imarticus.org\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/imarticus.org\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/imarticus.org\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/imarticus.org\/blog\/wp-json\/wp\/v2\/comments?post=133640"}],"version-history":[{"count":1,"href":"https:\/\/imarticus.org\/blog\/wp-json\/wp\/v2\/posts\/133640\/revisions"}],"predecessor-version":[{"id":263904,"href":"https:\/\/imarticus.org\/blog\/wp-json\/wp\/v2\/posts\/133640\/revisions\/263904"}],"wp:attachment":[{"href":"https:\/\/imarticus.org\/blog\/wp-json\/wp\/v2\/media?parent=133640"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/imarticus.org\/blog\/wp-json\/wp\/v2\/categories?post=133640"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/imarticus.org\/blog\/wp-json\/wp\/v2\/tags?post=133640"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}