News digest: Banking reforms, LTCG tax, Bhushan Steel bids, and more

New reforms for weak banks to Infosys and TCS joining global tech-reskilling drive, BS brings you top stories to keep up with the latest news

Weak banks to get lion's share of Rs 881-bn recapitalisation bonds

 

The Centre on Wednesday announced a reform-oriented Rs 881 billion capital infusion in 20 public sector banks (PSBs), with a major chunk flowing into the weaker banks to meet their capital adequacy requirements.

 

The government has set strict terms for issuing the recapitalisation bonds to PSBs. The terms include creating a stressed asset management vertical, tying up with agencies for specialised monitoring of loans above Rs 2.5 billion, strict surveillance on big loan defaulters, and appointing a whole-time director for monitoring reforms every quarter, among others. Read more

 

Former SBI chief Arundhati Bhattacharya named BS Banker of the Year

 

Arundhati Bhattacharya, former chairman of State Bank of India (SBI), is the Business Standard Banker of the Year for 2016-17.

 

She was selected by a five-member jury, headed by former economic affairs secretary C M Vasudev, for the bank’s deft handling of the demonetisation rush, battling bad debts but remaining profitable, pushing the financial inclusion agenda through a wide network of its rural and semi-urban branches and, at the same time, catering to tech-savvy customers through cutting-edge digital banking products. Read more

 

Bhushan Steel bids may touch double of liquidation value of Rs 150 bn

 

Lenders to Bhushan Steel are expecting Anil Agarwal-owned Vedanta Ltd and Sajjan Jindal’s JSW Steel to make the most aggressive bids — almost double the liquidation value of Rs 150 billion — for the beleaguered company.

 

According to lenders, cash-rich Vedanta, which wants to break into the steel industry, has changed the bidding dynamics, with the company pooling in all its resources to make the bids, which might close soon after the Budget next week. Read more

 

Overseas investors demand status-quo on LTCG tax from Budget 2018

 

The Asia Securities Industry and Financial Markets Association (Asifma), a lobby for overseas investors, met with finance ministry officials last week amid buzz that the holding period to avail long-term capital gains (LTCG) in equities could be raised in the Union Budget.

 

Sources said foreign portfolio investors (FPIs) urged the government not to take such a decision as it would further escalate the cost of transaction and impact incremental flows into domestic equities. Read more

 

Infosys, TCS join global tech-reskilling drive for 1 million workers

 

Indian information technology giants TCS and Infosys have joined a global drive for tech reskilling of one million workers in the first such IT industry initiative. The exercise, whose founding partners also include Accenture, CA Technologies, Cisco, Cognizant, Hewlett Packard Enterprise (HPE), Pegasystems, PwC, Salesforce, and SAP, aims to bring competitive training content on one platform to serve the greater good. Read more