News digest: Ruias' plan to retain Essar, SBI cuts base rate, and more

From Ruias planning to pay interest to retain Essar Steel to SBI slashing base rate by 30 bps, BS brings you up to date with the latest news

Ruias plan to pay interest, penalty of Rs 35 bn to retain Essar Steel

The Ruias are considering bidding for Essar Steel, with the Lok Sabha passing amendments to the Insolvency and Bankruptcy Code. To make their bad loan accounts operational, the promoters of Essar Steel must pay banks overdue interest, including penalty, of Rs 30-35 billion, sources said. (Click here to read more)

What are shell companies? Govt to lay down guidelines by Jan-end

The government will come up with a proper definition of what a shell company is by the end of this month. According to sources, the Prime Minister’s Office (PMO) had in February last year constituted a special task force to tackle malpractices by shell companies. The task force will lay down specific guidelines to validate the clampdown on shell companies. (More details here)

SBI's New Year gift: base rate cut by 30 bps, home loan fee waiver extended

In a surprising move at the start of the year, State Bank of India (SBI) reduced its base rate and benchmark prime lending rates (BPLR) for existing customers by 30 basis points each effective from January 1. One basis point is a hundredth of a percentage point. (Full report)

Single-digit rise in sales: Why passenger vehicle firms saw no cheer in Dec

Domestic sales of passenger vehicles (cars, vans and utility vehicles) are estimated to have risen approximately six per cent in December. That came on the low base of December 2016, when sales had declined nearly 1.4 per cent after demonetisation. Hyundai, which is the second biggest player in the segment, reported flat growth, while Mahindra & Mahindra (M&M), the third biggest company, saw a seven per cent decline in sales. These are sales to dealerships. (Read more)