Page 2612 - Business Finance
Tyre industry to face rubber shortage after Kerala floods
The Indian tyre industry is expected to be adversely hit due to estimated lower rubber output by 18-20 per cent following the Kerala floods, a report said on Thursday.
RBI refuses to relax norms for ARC to warehouse stressed power projects
The Reserve Bank has turned down the Power Ministry's request to give certain concessions for setting up of an Asset Reconstruction Company (ARC) for warehousing stressed assets to prevent distress sale of these plants, a senior official said Thursday. "An upfront valuation is required for taking assets into ARC. We have sought exemption from that. The ARC is required to make 15 per cent upfront payment to lenders. We were asking for exemption from that. These type of concession are not in the scheme of RBI," Power Secretary A K Bhalla told reporters here. About setting up of the ARC by state-run lender Rural Electrification Corporation (REC) with other lenders to power projects, Bhalla said, "The REC and lenders together will set up this ARC." A power sector expert said in the absence of the sought concessions from RBI, it would be a tight rope walk for the REC and other lenders to implement the proposal of setting up an ARC for the purpose. After setting up of the ARC, the stressed .
HC orders notice to TN govt on plea by BSNL on 'track rent'
The Madras High Court Thursday issued notice to the Tamil Nadu government on a petition moved by BSNL challenging a circular demanding annual "track rent" from the public sector firm for laying optical fibre cables along public roads. Admitting the plea, Justice R Mahadevan directed the Commissioner of Land Administration and the Revenue Department to file their reply by two weeks. Moving the plea on behalf of Bharat Sanchar Nigam Limited (BSNL), its deputy general manager at Erode submitted that BSNL was a central government enterprise and 100 per cent equity share of the company was held by the Union government. BSNL is also defined as 'state' within the meaning of Article 12 of the Constitution, he submitted. BSNL in Erode district alone is controlling over 120 telephone exchanges. "To fulfil the obligations of the Centre to develop telecom facility in rural areas under the new telecom policy, BSNL has already laid optical fibre cables (OFC) in public ways after duly paying ...
Sebi exempts Diageo Group from making fresh open offer to USL's shareholders
Markets regulator Sebi Thursday exempted Diageo Group from making a fresh open offer to the shareholders of United Spirits Ltd (USL). It was alleged in the show cause notice issued in May last year that the status of USL had changed from being an entity jointly controlled by the UB Group and the Diageo to a solely controlled entity of Diageo Group in November, 2015. The British spirits maker's group was allegedly required to make an open offer due to this. The USD 75-million sweetheart deal between its erstwhile promoter Vijay Mallya and new owner Diageo was also taken into account while Sebi issued show cause notice. In a 23-page order, Sebi Whole Time Member G Mahalingam said it is not appropriate "to direct an open offer against the noticees (Diageo Plc and Relay B V) as proposed in the SCN (show cause notice)". Relay B V is an indirect wholly-owned subsidiary of Diageo Plc. "In my view, in a case where one of the two promoters renounces his control over the target company (USL) ...
Crude pulls back on rising U.S. fuel stockpiles
NEW YORK (Reuters) - Crude futures reversed course, moving sharply lower on Thursday after U.S. data showed gasoline inventories rose unexpectedly last week, overshadowing a bullish drawdown in crude.
Religare Enterprises Q1 net loss widens to Rs 17 cr
Religare Enterprises has reported a standalone net loss of Rs 17.07 crore for the quarter ended June. The company had posted a loss of Rs 14.05 crore in the corresponding period of 2017-18. Total revenues fell to Rs 5.95 crore during the quarter under review as against Rs 18.02 crore in the year ago period, the company said in a regulatory filing Wednesday. Additionally, Religare Enterprises said the net worth of its subsidiary Religare Finvest (RFL) continues to decline. The RBI has also put restrictions on RFL regarding expansion of credit/investment portfolio and dividend outflow from the subsidiary company. "Further RFL has filed the petition before NCLT for recovery of dues from entities included in the unsecured corporate loan book of Rs 2036.70 crore and adjustment of fixed deposit of Rs 791.45 crore by RFL by Lakshmi Vilas Bank against the loans granted by LVB to RHC Holding and Ranchem Pvt Ltd, which is contested by RFL in Delhi High Court," it said. Both the matters are ...
Anshula Kant appointed SBI Managing Director
Anshula Kant was Thursday appointed as the Managing Director of State Bank of India (SBI), an official order said. She is at present the Deputy MD in the bank. The Appointments Committee of the Cabinet approved the appointment of Kant as the Managing Director (MD), SBI till the date of her superannuation i.e. September 30, 2020, the order issued by the Personnel Ministry said. Her name was recommended by the Bank Boards Bureau for the post. The post of MD, SBI fell vacant after the resignation of B Sriram, who took over as the MD and CEO of IDBI Bank.
SIAM elects Mahindra & Mahindra's Rajan Wadhera as new president
Automobile industry body SIAM announced Thursday election of Mahindra and Mahindra President Automotive Sector, Rajan Wadhera as its new President. The executive committee of the Society of Indian Automobile Manufacturers (SIAM) also elected Maruti Suzuki India MD and CEO Kenichi Ayukawa, as Vice President, SIAM said in a statement. Wadhera succeeds Abhay Firodia, Chairman, Force Motors Ltd, it said, adding that he has been SIAM's Vice President till now. "The election for new office bearers was conducted during the Executive Committee Meeting, which was held after SIAM's Annual General Meeting today," the statement added. SIAM further said Vinod Aggarwal, MD & CEO, Volvo Eicher Commercial Vehicles (VECV) has been elected as Treasurer of SIAM. He replaces Ayukawa.
HGS sets up customer service centre in Florida, to create 500 new jobs
Hinduja Global Solutions (HGS) Thursday said it is setting up a customer experience centre in Florida, US that will create 500 new job opportunities. "The centre, located in Jacksonville, FL, will bring more than 350 new career opportunities in the first phase of expansion, starting in September, with a total of 500 new job opportunities over time," HGS said in a statement. This expansion is due to continued growth of the company's domestic business, driven by a combination of providing additional services to existing clients and recent new business wins, it added. HGS has been aggressively growing its onshore presence across industries, growing its North American employee base by more than 40 per cent in the last 12 months. "We are excited to bring economic growth and job opportunities to the region and look forward to welcoming highly talented customer service people to the HGS team," Tim Schuh, HGS President, North America said.
Bhushan Power lenders allowed JSW to change parameters of bids: Tata Steel
Tata Steel Thursday submitted before the NCLAT that the lenders of the debt ridden firm Bhushan Power & Steel permitted rival JSW Steel to change the basic parameters of its bids after submission. Senior advocate Abhishek Manu Singhvi, appearing on behalf of Tata Steel, submitted before the appellate tribunal that it was against the interim order passed by NCLAT on August 6. While, Tata Steel following NCLAT (National Company Law Appellate Tribunal) order of the appellate tribunal August 6 order, has filed one additional plan. Passing an order on August 6 order, the NCLAT had allowed all three contenders -- Tata Steel, Liberty House and JSW - to file additional unconditional 'resolution plans' by August 13, 2018, improving their financial offer without compromising the basic parameters of the 'resolution plans' already submitted by them. However, the Committee of Creditors allowed JSW to change basic parameters of its resolution plans. A two-member NCLAT bench headed by ...
Opposition calls nationwide protests to take on Modi over fuel prices
NEW DELHI (Reuters) - India's opposition will launch nationwide strikes and protests next week over record-high fuel prices, looking to tap rising public anger to hit back at Prime Minister Narendra Modi ahead of a series of elections.
SC allows Corporation Bank to move NCLT for claims against Amrapali Group
The Supreme Court Thursday allowed the Corporation Bank, which has led a consortium of banks to lend loans to the Amrapali Group, to move the National Company Law Tribunal (NCLT). A bench of Justices Arun Mishra and U U Lalit, however, restrained the NCLT from proceeding ahead in the matter without any express direction from the court. Attorney General K K Venugopal, appearing for the Corporation Bank said the bank has lend Rs 270 crore to the Amrapali Group and if it was not allowed to move NCLT, its claim from the real estate firm will become time barred. He said the claim of the bank will become time barred by November 30. The bench said "permission is granted" to the bank to move to NCLT so that its claim did not become time barred, but the tribunal will not proceed ahead unless "express permission" was granted by the court. The apex court also identified 16 properties of the Amrapali Group for auctioning, preferably by the National Buildings Construction Corporation India Ltd ...
EU guidelines on fintech to include 'sandbox' design recommendations
LONDON (Reuters) - The European Union's banking watchdog said guidelines being drawn up for nurturing cross-border fintech companies will include recommendations for the core design of a "sandbox" and innovation hub.
Banks may refer GMR, Prayagraj, SKS, 8 other power cos to NCLT
Failing to find resolutions for stressed power sector companies, lenders have decided to refer 11 companies, including Prayagraj Power Generation, GMR Chhattisgarh Energy and Jaiprakash Power Venture, to the National Company Law Tribunal (NCLT), banking sources said. The other companies are SKS Ispat Power, Meenakshi Energy, Athena Chhattisgarh Power Jhabua Power, KSK Mahanandi, Coastal Energen and Jindal India Thermal Power, among others. The Reserve Bank of India (RBI) in its February 12 circular had asked banks to identify projects over Rs 2,000 crore with even a day's default as stressed assets, and conclude resolution proceedings in 180 days. The circular came into effect on March 1 and the 180-day deadline ended on August 27. "There are in total 11 stressed power assets that banks have decided to take to NCLT," a public sector bank official said. After crossing the August 27 deadline, banks have 15 days time to refer all stressed accounts to NCLT. "RBI has advised .
NAB files corruption reference against former Pakistan PM Gilani
Pakistan's anti-graft body, the National Accountability Bureau (NAB), on Thursday filed a corruption reference against former Prime Minister Yousaf Raza Gilani and others for allegedly misusing their authority in an illegal publicity campaign which caused a huge loss to the national exchequer.
Jet Airways' pilots warn of 'non-cooperation' over delay in salary payment
With crisis-hit Jet Airways delaying their salary payment for the second straight month, pilots have warned the management of "non-cooperation", according to a communication. The Naresh Goyal-promoted full service carrier, in which Gulf airline Etihad holds 24 per cent stake, is grappling with acute financial crunch after two back-to-back quarterly losses. "Withholding salaries, that too without prior notice, is a serious matter and the management will bear sole responsibility for any repercussions," Jet Airways' pilots said in a communication to the management earlier this week. "We would like to advice that failure to address the above points and not paying the salaries on time would lead to non-cooperation by pilots," they warned. The salaries for the month of August have been delayed. In a statement, a Jet Airways' spokesperson said the management is in dialogue with the pilots and other members of its team to resolve some issues, including disbursement of salaries. Significantly,
City of London Corporation to work with cross-party group to boost India-UK relations
The City of London Corporation on Thursday announced its sponsorship of the Indo-British All-Party Parliamentary Group (APPG), a cross-party informal group working to strengthen bilateral ties, to promote closer India-UK relations in the field of financial and professional services. The APPG, chaired by veteran Indian-origin Labour party MP Virendra Sharma and made up of members of both Houses of Parliament in the UK, aims to promote understanding and cooperation between Indian and British parliamentarians. The City of London Corporation's sponsorship, which involves an annual fee of 3,000 pounds, falls under the umbrella of its wider Asia programme. Catherine McGuinness, Policy Chairman of the City of London Corporation, said support of the "highly influential group" marked a logical next step for the Corporation, which provides local government and policing services for the financial and commercial heart of Britain, known as the Square Mile of London. "Since we opened our office in .
L&T Technology Services to acquire Graphene for Rs 93 crore
L&T Technology Services (LTTS) said Thursday it has signed an agreement to acquire 100 per cent stake in Bengaluru-based Graphene Semiconductor Services in an all-cash deal for Rs 93 crore. The transaction is expected to be completed by October 2018, LTTS said in a statement. "Graphene's strong offshore presence, coupled with expertise in complete VLSI Chip Design & Embedded Software will be a force multiplier for LTTS and will enhance our capabilities in the Semiconductor & Product OEM space," Keshab Panda, CEO & MD, L&T Technology Services Ltd, said. LTTS will conclude the deal in two tranches of Rs 70 crore upfront and Rs 23 crore payment in the form of earn-outs and retention pay spread over period of three years. Graphene is one of the fastest growing companies in the semiconductor services domain with a presence in India, Singapore, Taiwan, and Malaysia. The company provides chip design, embedded software and other solutions. The company had a revenue of Rs ..
Airtel Payments Bank offers card-less cash withdrawal facility at select ATMs
Airtel Payments Bank customers can now make card-less cash withdrawals at select ATMs across the country using instant money transfer technology, the company said Thursday. "IMT is the largest interoperable card-less cash ATM network in the world, built and run by Empays Payment Systems India Pvt Ltd. "The facility is currently available for Airtel Payments Bank account holders at over 20,000 IMT enabled ATMs in India and will cover more than 100,000 ATMs by the end of this year," Airtel said in a statement. Airtel Payments Bank has tied up with Empays to enable its savings account holders to withdraw cash using just their mobile phone through the card-less cash technology of Empays, called IMT (Instant Money Transfer). "The technology can be used for self-withdrawal or for sending money to an intended recipient for ATM cash withdrawal," the statement said. Over 1 lakh ATMs belonging to some of the largest banks in the country such as State Bank of India, Axis Bank and Punjab National
Indian Overseas Bank gets RBI nod for call option on bonds worth Rs 655 cr
Indian Overseas Bank (IOB) has received RBI nod to exercise call option on bonds worth Rs 655.30 crore, the bank said Thursday. "The Reserve Bank has accorded approval for exercise of call option on the bonds aggregating to Rs 655.30 crore as per the terms of the issue," the bank said in a regulatory filing. The call option is scheduled to be exercised on September 17. In a call option, the issuer of the bond can redeem the instruments before its maturity. Earlier, the bank had said that it will pay interest on the bonds and not exercise call option but upon subsequent consultations with the RBI, it decided to exercise it owing to impact on capital adequacy. Shares of IOB closed 0.67 per cent up at Rs 15 apiece on BSE.