Budget Highlights for Media interactions:

The government has proposed to allocate Rs 70,000 crore for PSU Bank recapitalisation which will
help to strengthen the banks and enhance their lending capacity. In FY18 and FY19 put together, the
government pumped in Rs. 1.96 lakh crore into public sector banks allowing six banks to exit RBI's
prompt corrective action (PCA) exercise.

To restore liquidity in the non-banking finance sector (NBFC) and push banks to buy assets from them
under the pool purchase programme, the government will provide a one-time six-month partial credit
guarantee to public sector banks (PSB) for the first loss of up to 10%

The finance minister today raised the disinvestment target to 1,05,000 crores. India will undertake
multiple measures to deepen the corporate bond market. There is also a proposal to increase
minimum public shareholding in companies to 35 per cent from 25 per cent.

Various SOPs given to Start-ups, such as, respite from tax scrutiny in respect of valuation of share
premium and proposed measures to carry forward and set off losses, will help build confidence of
current and upcoming start-ups, thus accelerating job creation in the sector.

The government has proposed additional income tax benefit of Rs 1.5 lakh on interest on loan taken
for electric vehicle purchase. This is a big boost for electronic vehicles. The government has already
moved the Goods and Services Tax (GST) council to lower the GST rate on electric vehicles from 12 per
cent to 5 per cent. These measures will boost demand and increase confidence in EV manufacturing
companies.

Budget has proposed a 100 percent foreign direct investment (FDI) in the insurance intermediaries in
the Union Budget 2019. The FDI limit is set at 49 percent currently. It is expected that the 100 percent
FDI will help in infusion of capital into the intermediaries segment.

The FM announced setting up of a social stock exchange under the Securities and Exchange Board of
India (SEBI) for listing of organisation s which work for social welfare. The move would help meet
various social welfare objectives related to inclusive growth and financial inclusion
This budget is a mixed bag of good and bad news for the markets. Among the good news is,
Recapitalisation of Rs. 70, 000 crores for PSU banks, higher disinvestment target of Rs. 1,05,000 crores,
Government willing to go offshore for funding with 100% FDI for insurance intermediaries, proposal
for social stock exchange etc. A greater push is given to start-ups, MSMEs and Electric Vehicles
industry etc. This will not only boost investments but will also have a significant role in boosting
employment. Amongst the announcements which might not go well with the markets are: Raising of
income tax up to 20% of their current level, to the highest income bracket individuals