News digest: ICICI Bank row, Opec raises output, Alok Industries, and more

Bankers have decided to unite and fight back against 'arbitrary arrests', 'harassment' by probe agencies, in a move that comes against the backdrop of the arrest of the CEO of BoM

Google plans global e-commerce debut from India market 

Sundar Pichai-led Google is seriously evaluating getting into e-commerce and India could be the first stop, it is learnt. The launch could coincide with Diwali later this year, a source said. The search giant, which was in talks to invest in Flipkart after Walmart’s $16-billion deal to buy 77 per cent in the Bengaluru firm, is now trying to enter the Indian e-commerce space on its own.

With such a move, Google could take on both Amazon and Flipkart in a sector pegged at around $38.5 billion and projected to grow to as much as $100 billion by 2020 in the country. While the American major was getting ready to invest at least $2 billion in Flipkart post the Walmart deal, it may have subsequently decided to opt for the route that Amazon had taken five years ago to launch solo in India, another source said. READ MORE 

ICICI Bank gets fresh whistleblower complaint on 31 loan accounts

India’s largest private sector lender ICICI Bank said another whistle-blower had accused it of having lax controls over operations. This is the third instance of such complaint. In the first two complaints, the bank’s Managing Director and Chief Executive Officer Chanda Kochhar is facing an inquiry by the board and is on leave till investigations are over. The latest complaint relates to the incorrect asset classification of 31 loan accounts, and alleges that interest income and recoveries from non-performing assets (NPA) have been accounted as fees.

It also alleges that the bank overstated the value of mortgages offered for getting corporate loans. READ MORE  

Indian oil companies to gain from higher Opec output

In a step that is beneficial to India, the Organization of Petroleum Exporting Countries (Opec) decided to raise its output at a meeting held in Vienna on Friday.
 

Though the producer group did not specify the increase, it may be in the range of 1 million barrels per day (bpd), or 1 per cent of the global supply.
 

According to media reports, the supply increase is likely to fall in the range of 600,000-800,000 bpd because only some producers like Saudi Arabia and the United Arab Emirates will be able to raise output further. READ MORE 

JM Financial, Reliance Industries set to buy Alok Industries for Rs 50 bn 

Lenders to bankrupt textile company Alok Industries have approved a joint resolution plan submitted by Reliance Industries (RIL) and JM Financial Asset Reconstruction Company (JMF ARC). According to the plan, the combine will acquire Alok Industries for Rs 50.50 billion, of which the lenders will receive Rs 40 billion.

The corporate debtor owes banks Rs 295 billion, which means they are taking a haircut of more than 86 per cent. READ MORE

Arrest of BoM brass: Bankers on the warpath, may meet govt on witch-hunt 

Bankers have decided to unite and fight back against “arbitrary arrests” and “harassment” by probe agencies, in a move that comes against the backdrop of the arrest of the CEO and other senior executives of state-run Bank of Maharashtra.

In an hour-long meeting on Friday, the Indian Banks’ Association (IBA), the apex banking lobby, decided to meet senior government officials next week and present its case. V G Kannan, CEO of the IBA, said the association would provide legal assistance to the embattled bankers even after their retirement. READ MORE