News digest: ICICI Bank profit, Flipkart-Walmart deal, Rupee falls and more

This is the bank's first quarter after allegations of conflict of interest were reported between ICICI Bank Managing Director and Chief Executive Officer Chanda Kochhar and the Videocon group

1. ICICI Bank Q4 net profit halves to Rs 10.2 bn, bad loan provisions surge

ICICI Bank on Monday posted a net profit of Rs 10.2 billion for the quarter ended March 2018, against Rs 20.2 billion a year ago, due to a sharp rise in provision for bad loans. The bank’s profit was boosted by a one-time income arising from the sale of shares in its capital market arm, ICICI Securities, to the tune of Rs 33.20 billion.

Additionally, three loan accounts in the gems and jewellery sector with fund-based outstanding of Rs 7.95 billion were classified as fraud and non-performing, and during the fourth quarter, the bank made a provision of Rs 2.89 billion through its profit and loss account, and Rs 5.05 billion by debiting reserves and surplus as permitted by the Reserve Bank of India (RBI), ICICI Bank said in a statement. Read more...

2. Insolvency proceedings: Jaypee group makes fresh effort to keep realty arm

Jaypee group chairman Manoj Gaur made a fresh effort to gain back control of Jaypee Infratech — a real estate company for which another firm has already been named the highest bidder under the ongoing insolvency proceedings.

In its resolution plan, submitted to the committee of creditors (CoC) and the resolution professional, Gaur promised a marginal haircut to Jaypee Infratech lenders and minority shareholders and possession of homes by 2021. Lakshadweep Pvt Ltd — the firm CoC has chosen as the highest bidder — has offered to give possession to the homebuyers by 2024. Read more...

3. DSP parts ways with BlackRock, to buy 40% stake in MF venture

US-based BlackRock and Hemendra Kothari-led DSP group have ended their mutual fund (MF) joint venture DSP BlackRock Investment Managers. Under an agreement announced on Monday, the DSP Group will buy the 40 per cent stake held by BlackRock in the venture, which manages and markets a range of co-branded MFs in India.

“The sale is expected to complete, subject to regulatory approval, once naming transfers and investment scheme unit holder communications are finalised,” BlackRock said in a release. Read more...

4. Rupee plunges to 67 per dollar as crude oil spikes; Sensex at 3-month high

The rupee breached the 67 to a dollar mark on Monday as crude oil prices rose to their highest since Narendra Modi was sworn in as Prime Minister in May 2014. The currency closed at 67.14 to a dollar, down 0.40 per cent from Friday’s close.

Brent crude, the global benchmark, was trading at $75.71 by the time currency markets closed in India. Crude oil prices had fallen to $45.25 a barrel in 2015, helping the country in its fiscal math to a large extent. Even then, the Centre could not manage to keep the deficit within the planned range. Now with oil prices on the rise, those targets look difficult for India, which imports 70 per cent of the crude oil consumed. Read more...

5. Flipkart campus on a Walmart high; employees await stock option riches

Canteens and water coolers are often the best corners to catch employee mood at any organisation. More so, when the company is as young as Flipkart with most of its workforce in the 20s. The chatty breaks just got more animated as the biggest e-commerce company of the country has finalised a multi-billion dollar deal with America’s Walmart. The fact that employees’ stock options will go up in value, in sync with the mega deal, has only added an extra zing around the campus.  

Unlike in the case of many other mergers, the mood at the large pantries (quite a variation from the traditional canteen), break rooms and food courts in the sprawling Flipkart campus is upbeat. The new campus at Bengaluru’s Embassy Tech Village modelled on Silicon Valley structures houses more than 7,000 employees, with hardly any room for fear of tomorrow. Read more...