Top News: Moody's downgrades PNB, Nipah virus, Karnataka elections and more

Nipah virus killed 9 in Kerala, Karnataka MLA said the audio tapes alleging poaching by BJP were fake; Vishal Mega Mart would see ownership change, Moody's downgraded PNB. Catch latest updates here

Global rating agency Moody's on Monday downgraded public-sector lender Punjab National Bank's rating to “Ba1’’ from “Baa3’’ due to the negative impact of fraudulent transactions on capital position and asset quality.

Meanwhile, reports suggest that as many as nine people might have lost their lives because of the Nipah virus outbreak in Kerala's Kozhikode district. The Kerala government has assured that all arrangements are in place and there is no need to panic.
 

In Karnataka, the political drama since the state Assembly election threw up a fractured mandate doesn't seem to get over. Congress MLA Shivram Hebbar dismissed as 'fake' the audio clip released by his party alleging that the Bharatiya Janata Party (BJP) was trying to poach its MLAs. The Congress and JD(S) have come together to form a coalition government in the state and the latter's H D Kumaraswamy is to be sworn in as the state's new chief minister on Wednesday.

In business, meanwhile, investors Partners Group and Kedaara Capital have said they will acquire the retail chain Vishal Mega Mart from private equity firm TPG. The deal size haas not been revealed.
 

1) Moody's downgrades PNB's rating due to Rs 144 bn-Nirav Modi fraud: Rating agency Moody's downgraded PNB's rating to  “Ba1’’ from “Baa3’’ because of the negative impact of the Rs 144 billion scam, Nirav Modi scam. 

As the fraudulent transactions remained undetected for a number of years, PNB's downslide also reflects the weak internal controls and processes of the bank,

These actions complete Moody's review of the bank's ratings initiated on 20 February 2018, following the discovery of some fraudulent and unauthorized transactions -– Nirav Modi controlled firms-- amounting to Rs 14.4 billion ($2.2 billion) in February and March 2018.

2) Nipah virus outbreak: Named after a region in Malaysia, Nipah virus has claimed nine lives in Kerala's Kozhikode district. The World Health Organization (WHO) describes Nipah virus (NiV) infection as a "newly emerging zoonosis that causes severe disease in both animals and humans". Kerala government has sanctioned an emergency fund of Rs 2 million and urged people not to panic.

3) MLA dismisses audio alleging BJP's poaching bid as fake: Congress MLA Shivram Hebbar left the party red-faced when he claimed that the audio clip that alleged that the BJP was trying to offer money to Congress MLAs was 'fake'.

Out of the three tapes that the Congress released one tape had a conversation between Hebbar's wife and BJP leaders, who allegedly offered money and ministerial post to woo him to vote for the BJP.

4) Partners Group, Kedaara Capital Fund to buy Vishal Mega Mart: Days after the biggest deal in the online space between Walmart and home-grown e-tailer Flipkart, Partners group and Kedaara Capital Fund announced that they would acquire the value retail chain Vishal Mega Mart.

Partners group said that the existing team, led by former Reliance Fresh CEO Gunender Kapur, will continue with the support of investors. The transaction is subject to regulatory approval and is expected to close later this year.

4) Moody's downgrades PNB's rating due to Rs 144 bn-Nirav Modi fraud: Rating agency Moody's downgraded PNB's rating to  “Ba1’’ from “Baa3’’ because of the negative impact of the Rs 144 billion scam, Nirav Modi scam. 

As the fraudulent transactions remained undetected for a number of years, PNB's downslide also reflects the weak internal controls and processes of the bank,

These actions complete Moody's review of the bank's ratings initiated on 20 February 2018, following the discovery of some fraudulent and unauthorized transactions -– Nirav Modi controlled firms-- amounting to Rs 14.4 billion ($2.2 billion) in February and March 2018.