BQuick On Nov. 18: Top 10 Stories In Under 10 Minutes
Here is a roundup of the day’s top stories in brief.
1. From Yes Bank To Lakshmi Vilas Bank, Lessons From Bank Failures
While bank failures are neither new nor unique to India, the quick succession in which we have seen lenders of material size fall is worrying, writes Ira Dugal.
Over the last two years or so, we have seen IL&FS, DHFL, Yes Bank, PMC Bank, and now Lakshmi Vilas Bank go under.
IDBI Bank, which was thought to be on the brink, was saved via an infusion of capital by LIC.
If you exclude IDBI, lenders with a cumulative asset size of about Rs 5.5 lakh crore have gone under since 2018.
These cases, together and separately, throw up some important lessons for the Reserve Bank of India and the country’s financial sector.
2. Pfizer, BioNTech Vaccine Proves 95% Effective
Pfizer Inc. said a final analysis of clinical-trial data showed its Covid-19 vaccine was 95% effective, paving the way for the company to apply for the first U.S. regulatory authorization for a coronavirus shot within days.
The U.S. drugmaker and partner BioNTech SE said their vaccine protected people of all ages and ethnicities, with no significant safety problems so far in a trial that includes almost 44,000 participants.
The update is the latest in a string of promising developments on the vaccine front in recent days.
3. Vaccine Distribution: Two Key Challenges
While at least three potential Covid-19 vaccines have shown encouraging trial results, Snowman Logistics Ltd. sees two key hurdles.
“The challenge that we have at hand is not only of the vaccine, but logistics is going to be quite complex,” Sunil Nair, chief executive at the cold-storage service provider, told BloombergQuint in an interview.
Two things are very critical: the volume to be distributed and the time constraint to provide the shots, he said.
Nair said India is prepared to face the challenge, provided there is clarity on the volume and timelines, and with private players pitching in.
The company wants to be part of the government’s immunisation programme and distribution process.
Also read: Will Covid-19 Vaccines Be The Gift Of 2021?
4. Nifty Stone’s Throw Away From 13,000; Bitcoin Breaches 18,000
Indian stocks ended the day with gains after a volatile trading session as investors continued to snap up shares on expectations of a domestic economic recovery.
The S&P BSE Sensex closed up 0.5% at 44,180.05 after falling as much as 0.4%, while the NSE Nifty 50 Index also climbed by a similar magnitude.
Both gauges closed at all-time highs.
Sensex is trading at a 12-month price-to-estimated earnings multiple of about 22 times -- a record high and more than two standard deviations higher than its 10-year average.
Follow the day’s trading action here.