News digest: ICICI Bank, RBI firm on NPA rules, Modi in London, and more

From ICICI Bank chairman's meet with MF heads to PM Modi's UK visit, BS brings you up to date with the latest news

ICICI Bank chairman meets MF heads over succession plan, if Kochhar quits

With investments of over Rs 300 billion riding on the stock, heads of mutual fund (MF) houses met ICICI Bank Chairman M K Sharma over the succession plan at the private sector lender. It is learnt that Sharma met top MF executives to provide clarifications on the Videocon loan controversy. 

Sources said the Rs 21-trillion MF industry raised questions over the bank’s “back-up” or succession plan in case Chief Executive Officer and Managing Director (CEO & MD) Chanda Kochhar steps down. Read more

Govt to probe suspected hoarding of Rs 2,000 notes, cash withdrawal spike

The government has launched a probe into suspected hoarding of Rs 2,000 notes and a spike in cash withdrawals over the last fortnight.

“The Department of Revenue will establish the reason for possible hoarding of Rs 2,000 notes. There has also been a sudden increase in cash withdrawals, especially in the last 15 days, which will also be looked into,” a senior finance ministry official said on Wednesday, on condition of anonymity. Read more

RBI firm on new NPA rules, says cos should not take loan contract casually

Reserve Bank of India (RBI) deputy governor N S Vishwanathan strongly defended its new rules on debt resolution, including the one-day default norm, stating that banks should get into action before any such default takes place and that companies should not take the covenants of a loan contract casually. 

“The debt contract embedded in bank loans has been continuously losing its sanctity, especially where the borrowing is large. There is a need to change this and restore sanctity of the debt contract, lest bank debt becomes subordinate even to equity,” said Vishwanathan at the National Institute of Bank Management, Pune. Read more

Damper for private oil firms as govt decides to retain higher profit share

In what is likely to impact investment decisions of oil and gas companies in the exploration and production segment, such as Reliance Industries (RIL) and Vedanta Cairn, the Ministry of Petroleum and Natural Gas is insisting on a new clause in the work programme for 2018-19 that protects its profit share. Read more

PM Modi, May discuss economic offender issue, tech partnership post-Brexit

India and the United Kingdom on Wednesday committed themselves to a stronger bilateral trade relationship after the UK exits the European Union.

Prime Minister Narendra Modi held discussions with the UK PM, Theresa May, in London in the morning. According to a press statement from the UK PM’s office, the two leaders “also discussed cooperation between the two countries on legal matters”. Read more