Page 2522 - Business Finance
Govt to merge BoB, Dena Bank and Vijaya Bank
The government Monday said state-owned Bank of Baroda, Vijaya Bank and Dena Bank will be merged to create the country's third largest lender as part of efforts to revive credit and economic growth. The move follows top lender State Bank of India last year merging with itself five of its subsidiary banks and taking over Bharatiya Mahila Bank, catapulting it to be among top 50 global lenders. Announcing the plan, Finance Minister Arun Jaitley said consolidation was always part of the government's agenda and the merger of associate banks last year was a step in that direction. The decision taken by 'Alternative Mechanism' to amalgamate three banks would create a mega lender which will be stronger and sustainable. The envisaged amalgamation will be the first-ever three-way consolidation of banks in India, with a combined business of Rs 14.82 lakh crore, making it the third largest bank after SBI and ICICI Bank. Post this merger, the number of PSU banks will come down to 19. "The ...
Oi shareholders vote to approve new board
RIO DE JANEIRO (Reuters) - Shareholders of Brazilian mobile phone operator Oi on Monday gave a nod of approval to new board chairman Eleazar de Carvalho and the rest of the slate of new board members proposed by the company.
Trump claims US steel industry has revived; takes credit
President Donald Trump claimed Monday that America's steel industry has revived and attributed this to his economic policy and decisions. American Iron and Steel Institute (AISI), in its latest report, said that the US' steel mills operated above 80 per cent of their capacity last week. Its Chief Executive Officer Thomas J Gibson said that tariffs on foreign steel have been saving US jobs. Trump said in a tweet: "Our steel industry is the talk of the World. It has been given new life, and is thriving. Billions of dollars is being spent on new plants all around the country!" Trump had imposed steep tariffs on steel and aluminum imports from Canada, Mexico and the European Union on national security grounds. Gibson wrote in USA Today that "The president's actions are working. Steel imports fell 34 per cent from April to June, prompting job growth. US Steel has restarted facilities in Granite city, Illinois, which means 800 jobs". In an op-ed in The Washington Examiner, former CEO of ...
India to merge three state-owned banks to tackle bad loans
NEW DELHI (Reuters) - India plans to merge state-run Bank of Baroda, Dena Bank and Vijaya Bank, the financial services secretary said on Monday, as part of efforts to tackle a pile of bad loans plaguing the banking sector and revive credit growth.
Banks merger a progressive step: Ficci
Industry body Ficci Monday termed the government's decision to merge three state-owned banks as a progressive move, noting that it signifies the government's commitment to strengthen the banking sector. According to the chamber, the merger will lead to greater operational efficiencies and Dena Bank, Vijaya Bank and Bank of Baroda would benefit through a synergistic relationship that would leverage one another's network, customer base and access to low cost deposits. "This is a progressive move and signifies the government's determination to strengthen the banking sector in the country for a better performance and service delivery," said Rashesh Shah, President of Ficci. "A stronger banking sector is vital for the overall health of the economy and we hope to see more such measures in the times ahead," Shah added. The government said the three lenders will be merged to create the country's third largest bank after SBI and ICICI Bank as part of efforts to revive credit and economic ...
Centre announces merger of Dena Bank, Vijaya Bank, Bank of Baroda
The union government on Monday announced that it has decided to facilitate a merger of Dena Bank, Vijaya Bank and Bank of Baroda."Merger of the three banks will make this the third largest bank of the country," Department of Financial Services(DFS) Secretary Rajiv Kumar said during a media briefing here.The consolidation of the three banks is expected to create a strong globally competitive bank with economies of scale and enable realisation of wide-ranging synergies. Leveraging of networks, low-cost deposits and subsidiaries of the three banks has the potential of yielding significant synergies for positioning the consolidated entity for a substantial rise in customer base, market reach, operational efficiency, a wider bouquet of products and services, and improved access for customers.While the Provision Coverage Ratio (PCR) following the merger, is expected to be 67.5 per cent, which is well more than most Public Sector Banks (PSBs), the net Non-Performing Assets (NPA) ratio is ...
USISPF inducts S Jaishankar on board
The US-India Strategic Partnership Forum (USISPF) said it has taken India's former foreign secretary S Jaishankar on its board. "I'm looking forward to working with USISPF's Board of Directors to build upon the key relationship between India and the US. The Tata group has been at the forefront of US-India business ties, and USISPF will be an important platform to further develop this relationship," Jaishankar, who is currently serving as Group President for Global Corporate Affairs at Tata Sons, said in a statement issued by USISPF. Prior to his position as Indian Foreign Secretary from January 2015 to January 2018, Jaishankar held prominent roles in the Indian Foreign Service such as High Commissioner to Singapore, Ambassador to China, and Ambassador to the US. He is widely respected for playing a key role in negotiating the Indo-US civilian nuclear agreement. As one of the longest-serving foreign secretaries in India's history, Jaishankar is remembered for helping to negotiate a ...
Turkey's lira weakens, bank shares fall after Erdogan Isbank comments
ISTANBUL (Reuters) - Turkey's lira weakened 2 percent and banking shares fell on Monday after President Tayyip Erdogan was quoted as calling for an investigation into members of the opposition who serve on the board of the country's biggest lender.
Apple, Amazon lead Wall Street lower as tariffs loom
(Reuters) - A slide in Apple and Amazon led the S&P 500 and Nasdaq indexes lower on Monday on expectations that President Donald Trump was about to go ahead with new tariffs on $200 billion of Chinese goods and that Beijing would retaliate.
Global Markets: New U.S. tariff threat on Chinese goods hits stocks, dollar
NEW YORK (Reuters) - A gauge of global equity markets eased and the dollar slipped on Monday as investors took a dim view of an expected new round of tariffs from Washington on Chinese goods, which would escalate a simmering U.S.-Sino dispute over trade.
Saudi's PIF invests over $1 billion in electric carmaker Lucid Motors
DUBAI (Reuters) - Saudi Arabia's Public Investment Fund said on Monday it had agreed to invest more than $1 billion in Silicon Valley-based Lucid Motors to produce electric vehicles.
Petrol nears Rs 90/litre in Mumbai, over Rs 82 in Delhi
Domestic fuel prices continued to scale new heights on Monday, with the price of petrol nearing the psychological Rs 90 a litre-mark in Mumbai with the fuel selling at Rs 89.44 under the dynamic pricing regime.
RBI rejects Maha Bank request to set off Rs 2,543 cr losses against share premium amount
The Reserve Bank has rejected Bank of Maharashtra request to set off over Rs 2,543-crore losses against the balance in its share premium account. The Reserve Bank of India vide its letter dated September 11, 2018 has intimated about its inability to accede to the request made by the bank for setting off the accumulated losses against the balance lying in share premium account of the bank, Maharashtra Bank said in a regulatory filing Monday. The Pune-headquartered state sector lender had got approval of board and shareholders to set off the accumulated loss of the bank as on March 31, 2018 in its annual general meeting held on June 21, subject to regulatory approvals. The bank had Rs 5,293.72 crore in its share premium account by the end of fiscal ended March 2018. A share premium account reflects amount in a company's balance sheet accrued from additional amount paid by shareholders that is in excess of the par value of shares issued to them. The bank had wanted to utilise the ...
Merger of Dena Bank, Vijaya Bank, Bank of Baroda announced
In a reform measure aimed at further consolidation, the government on Monday announced the merger of three state-run banks--Dena Bank, Vijaya Bank and the Bank of Baroda--that will make it the country's third largest bank with a combined business of Rs.14.82 lakh crore.
Centre exempts tax for interest income on select off-shore rupee denominated bonds
The union government on Monday announced that interest payable by an Indian company or a business trust to a non-resident, including a foreign company, in respect to rupee denominated bonds issued outside India before July 1, 2020, would be liable for a concessional tax rate of five per cent.An official communication from the Central Board of Direct Taxes (CBDT) stated that no tax shall be deducted on the payment of interest in respect of the said bond under Section 194LC of the Income-tax Act, 1961 (the Act).The announcement comes less than a week after a review of the economy was conducted by Prime Minister Narendra Modi, after which Finance Minister Arun Jaitley announced a multi-pronged strategy to contain the Current Account Deficit (CAD) and augment the foreign exchange inflow.In the wake of the same, low cost foreign borrowings through off-shore rupee denominated bond have been further incentivised to increase the foreign exchange inflow.It was therefore decided that interest ..
Second CBI charge-sheet soon against Mallya, to name officials
The CBI will name some bank officials in its second charge-sheet to be filed soon against fugitive businessman Vijay Mallya in a Rs 9,000-crore loan default case against him and his now-defunct Kingfisher Airlines, informed sources said.
62 cars sold in auction of Pakistan PM House vehicles
The Pakistan government on Monday sold for Rs 180 million as many as 62 vehicles in the first batch of bulletproof cars' auction as part of Prime Minister Imran Khan's austerity drive, the media reported.
Jaguar Land Rover to cut output at UK car plant after warnings on Brexit, diesel
LONDON (Reuters) - Britain's biggest carmaker Jaguar Land Rover said it will go down to a three-day week at its Castle Bromwich plant in central England just days after its boss warned about the impact of Brexit and diesel policy on manufacturing.
Sebi orders attachment of bank, demat accounts of DMC Education, 2 directors
Capital markets regulator Sebi has ordered attachment of bank and demat accounts along with mutual fund holdings of DMC Education and two former directors of the entity to recover dues of nearly Rs 15.5 lakh. In three separate orders, the regulator said there is sufficient reason to believe that the entities may dispose of the proceeds and securities in the respective bank, demat accounts and the realisation of amount due would in consequence be "delayed or obstructed." Accordingly, the Securities and Exchange Board of India (Sebi) has directed the banks to attach all the accounts, including lockers, held by the entities. Also, the depositories -- NSDL and CDSL -- and all the mutual funds have been asked to attach their demat accounts and folios. The recovery proceedings were initiated as the entities failed to pay the due amount within the stipulated time. In October 2017, Sebi had imposed a total fine of Rs 14 lakh on the entities for making false disclosures regarding shareholding .
Markets, rupee falling due to global factors: Arun Jaitley
As the rupee weakened against the US dollar and markets closed deep in the red on Monday despite a series of measures announced by the government over the weekend, Finance Minister Arun Jaitley said it was due to global phenomena occurring owing to squeeze on oil production and the US-China trade war.