Page 52 - Business Finance
Corporation Bank plans to raise Rs 5,000 cr in FY20
Public sector lender Corporation Bank plans to raise up to Rs 5,000 crore through issuance of fresh equity shares, debt instruments on private placement basis, rights issue or through QIP in the current fiscal. The bank will seek approval from shareholders at its meeting scheduled for June 29 for raising of capital by issuance of fresh equity shares or by issuance of additional tier I or tier II capital as per Basel III guidelines, Corporation Bank said in its annual report 2018-19. The bank said it will create such number of equity shares and/or debt instruments on a private placement/public issue for investors for an amount not exceeding Rs 5,000 crore in one or more tranches. On the intent of the capital raise plan, Corporation Bank said it may require additional capital from the market to support the projected business requirements and at the same time maintain healthy CRAR, in line with capital raising plan and as per reform agenda undertaken. Under Basel III norms, the bank is ..
Telecom tower firms seek more relief, priority lending
The telecom tower industry has urged the Finance Ministry to allow accelerated depreciation rate of 65 per cent on batteries, 20 per cent funding through External Commercial Borrowings (ECB) for the working capital and inclusion of telecom towers in the priority sector for lending by banks.
UKIBC urges govt to revisit FDI norms for multi-brand retail
The UK-India Business Council has urged the Narendra Modi-led government to revisit FDI norms in the politically sensitive multi-brand retail segment to attract more investments by foreign companies who have largely shied away from the sector. India permits foreign direct investment (FDI) in the multi-brand retail sector with a cap of 51 per cent ownership by overseas players. However, the FDI policy also imposes several conditions on foreign players related to mandatory sourcing of goods from MSMEs and investment in back-end infrastructure. So far, only one foreign player, UK-based Tesco, has received approval for opening stores under the multi-brand retail policy. The Congress-led UPA government had cleared the proposal. "The initial announcements on multi-brand retail were a step in the right direction. Obviously, politically they were circumscribed by conditionalities and to be frank, we have not seen a huge number of companies, if any, in multi-brand retail particularly in the ...
Aurobindo Pharma to spend $200 Mn on Capex in FY20
: Aurobindo Pharma Limited will invest up to USD 200 million on Capex and over five per cent of sale value on Research and Development (R&D) during the current financial year, a senior company official has said. "Around USD 200 million is what we are targeting (on capex in FY20)...Capex for biosimilar may not be a huge one for FY20. The majority of the CAPEX should be in terms of creating certain both finished dosage and API capacities," Managing Director of Aurobindo N Govindarajan said in a recently held earnings call. He said this included formulation facility for derma. Also, the company needs to expand API (Active Pharmaceutical Ingredients) capacity with the growing need, as well as bringing certain APIs needed for the future, he said. "So from that perspective it would be a combination of both finished dosage and API expansion," Govindarajan said. The city-based drug maker spent USD 225 million on capex last year and R&D expenditure was at Rs 872 crore or ..
NDA regime's continuity augers well for industry: ICRA
Though macro fundamentals of the Indian economy have taken an unfavourable turn in the past few quarters, the continuity of National Democratic Alliance (NDA) led by Prime Minister Narendra Modi after the general elections augers well for key sectors of the economy, investment information and credit rating agency ICRA said.Overall, the government will have to boost infrastructure investment and private consumption while maintaining fiscal discipline, it said in a research-based analysis.Port sector will certainly benefit from the new NDA regime and will be credit positive. Sustainability of major initiatives can be expected like Sagar Mala, reforms on the tariff side for major ports, new model concession agreement and several trade facilitation measures like the direct port delivery model and simplification of customs procedures.Fertiliser sector is grappling with severe liquidity crisis due to delayed subsidy payments, consequently higher working capital borrowings and slim bottom ...
IL&FS case: Independent directors, rating agencies, auditors under Sebi lens
A large number of individuals and entities, including independent directors, top management personnel, rating agencies and auditors formerly associated with crisis-hit IL&FS may soon face action by capital market regulator Sebi for their role in the alleged fraud at the group. Sebi has been conducting an in-depth investigation into the role of several entities and individuals, including for suspected violation of disclosure and corporate governance norms, and many of them would soon face stringent penal action for hurting the interest of minority shareholders and the overall capital markets with their fraudulent actions, senior officials said. Officials said the regulator is also looking into the role of some listed borrowers, who were allegedly given multiple fresh loans despite their earlier defaults. The Sebi probe had begun soon after the crisis came to light at IL&FS group last year, following huge defaults by various entities which together had a debt burden of over Rs ..
Fed rate decision, trade scenario to set market trend: Analysts
Indian equities this week will be guided by factors like geopolitical developments, US-China trade negotiations and Fed interest rate decision amid lack of major domestic triggers, say analysts. Investors will also keep a track on the domestic trade situation following reports that India has decided to impose retaliatory tariffs on 29 US products with effect from June 16. The government had on June 21, 2018 decided to impose these duties in retaliation to the US decision of significantly hiking customs duties on certain steel and aluminium products. India had extended the deadline for imposition of duties multiple times in the hope that some solution would emerge. "Markets are currently dancing to the global tunes and we do not see this changing any time soon, in absence of any major local trigger," said Jayant Manglik, President - Retail Distribution, Religare Broking. Vinod Nair, Head of Research, Geojit Financial Services, said: "Ripple effect from a weak global market while ...
Now, US-India trade tension hangs over Indian capital markets
Indian equity markets could come under pressure over the fresh tension between the US and India over trade as India retaliated with tariffs on 29 American products.
Western Railway withdraws proposal for providing massage to passengers in trains
Western Railway on Saturday decided to withdraw the proposal of providing head, neck and foot massage to the passengers of trains originating from Indore."Proposal for the introduction of head or foot massage services to be provided in the trains originating from Indore was initiated by Ratlam Division of Western Railway. As soon as this proposal came to the notice of higher authorities of Western Railway, it has been decided to withdraw this proposal of starting massage services in trains," the Western Railway said in a statement.The Western Railway appreciated the suggestions of public representatives, railway consumers, and the public."However, other suggestions regarding the necessary passenger amenities have also been expressed by various representatives. Western Railway respects the suggestions given by its consumers and their appropriate suggestions are also implemented from time to time. Western Railway also appreciates the positive suggestions of public representatives, ...
J&K Bank to now come under RTI act, CVC guidelines
The board of directors of Jammu & Kashmir Bank on Saturday decided to bring the bank under the J&K RTI Act, 2009 and the CVC guidelines with effect from Monday.
India imposes higher customs duty on 28 US products
India on Saturday announced a hike in customs duties on as many as 28 US products, including almond, pulses and walnut, in response to higher tariffs imposed by Washington on Indian products like steel and aluminium. The increased customs duties will come into effect from Sunday, an official notification said. The move will hurt American exporters of these 28 items as they will have to pay higher duties, making those items costlier in the Indian market. Amending its June 30, 2017, notification, the Central Board of Indirect taxes and Customs (CBIC) said Saturday's notification will "implement the imposition of retaliatory duties on 28 specified goods originating in or exported from USA and preserving the existing MFN rate for all these goods for all countries other than USA". Earlier, the list included 29 goods but India has removed artemia, a kind of shrimp, from the list. The country would get about USD 217 million additional revenue from such imports. The government had on June 21,
JK Bank now under RTI, CVC
The Jammu and Kashmir Bank will now come under the purview of Right to Information Act and Central Vigilance Commission (CVC) guidelines, an official spokesman said Saturday. He said the decision was taken by the Board of Directors of the Jammu and Kashmir Bank. The move will ensure greater transparency and accountability, the spokesman said here. "J&K Bank Board of Directors today (Saturday) decided to bring the bank under the purview of CVC guidelines & J&K RTI Act-2009 to ensure greater transparency & accountability," he said. On June 11, Chief Secretary B V R Subrahmanyam had said the bank has no choice but to be under RTI as it is a government-owned bank. "It is registered under the companies act as a government company. By the end of June, the bank will be brought under the RTI and CVC guidelines," he said. The decision comes days after Parvez Ahmed was removed as the Chairman of the J&K Bank for alleged corruption, nepotism and favouritism.
South Indian Bank to raise Rs 500 Cr via debt
South Indian Bank Saturday said it will raise Rs 500 crore through issuance of debt securities on private placement basis in domestic and overseas markets. The board approved a proposal of raising of funds in Indian/ foreign currency by way of issuance of debt securities including but not limited to non-convertible debentures, bonds, of up to Rs 500 crores in domestic and/ or overseas market, on a private placement basis and/ or for making offers and/or invitations, the bank said in a BSE filing. According to the filing, the board in its meeting held on Saturday also approved the proposal to raise funds by issuing up to 30 crore share of face value of Rupee one each. South Indian Bank board also decided to amend its memorandum of association.
Karnataka wants GST compensation extended beyond 2022
Karnataka on Saturday sought extension of the Compensation Act beyond 2022 to bridge the revenue gap likely to arise out of a shortfall in the collection of the Goods and Services Tax (GST).
2nd edition of India International Mega Trade Fair begins
Second edition of the India International Mega Trade fair (IIMTF) has begun here to promote business and trade around the region, besides encouraging joint ventures, tie-ups and investment in the country, organisers said on Saturday. Participants of Bangladesh, Thailand, Turkey, Pakistan, Afghanistan and India have set up pavilions in the fair that was inaugurated at Salt Lake on Friday. Jointly organised by the Bengal Chamber of Commerce and Industry (BCC&I) and G S Marketing, the 10-day-long event will continue till June 23. The fair will work as a platform to promote Indian brands for international markets, besides inviting visitors, buyers, suppliers and consultants from various parts of the country, the organisers said.
"NITI Aayog has not played much expected role of facilitator"
Kerala Chief Minister Pinarayi Vijayan Saturday said that NITI Aayog has not "played the much expected role of a facilitator" in the last four years and perhaps was not a substitute for the erstwhile Planning Commission. Vijayan,in his speech at the 5th Governing Council meeting of NITI Aayog here, said that after doing away with the plans at the national level, states have lost the Gadgil formula, grants which they used to get asplan assistance earlier. Besides, states now have also to bear a higher share -- 40 per cent --instead of the earlier average 25 per cent in many centrally sponsored schemes, resulting in shrinking the State governments' fiscal space, he said. He said transformation of the Planning Commission to NITI Aayog has adversely affected states like Kerala, which had lost a source of funding forits Five Year Plans. "I hope that my colleague Chief Ministers would agree with me that NITI Aayog in the present form has not played the much expected role of a .
Ratings upgrade: Standard procedures to detect default for accurate guidance
Uniform procedures to track defaults along with increased disclosures on liquidity factors will aid credit rating agencies to provide grater insights into companies, industry insiders said.
WR drops controversial 'head-foot' massage proposal
Under fire from various quarters, the Western Railway (WR) on Saturday dropped its proposal for providing 'head and foot' massage services to passengers on trains originating from Indore, an official said here.
Goa tourist taxi operators to protest against app-service
Over 30,000 tourist taxi operators will protest here next week against the Goa Tourism Development Corporation's app-based service 'Goa Miles', Congress MLA Aleixo Reginaldo Lourenco said Saturday. Taxi drivers have been opposing Goa Miles and several operators of the app-service have been attacked by the former recently, leading to chief minister Pramod Sawant issuing a warning against such incidents. "Over 30,000 tourist taxi operators will hold a silent protest in Panaji next week. The app-service is being run by a private company. The state government is supporting a private firm at the cost of traditional taxi operators," Lourenco claimed.
J-K bank case: ACB files FIR against Srinagar Dy mayor
The Anti-Corruption Bureau has registered a case against the city's Deputy Mayor Sheikh Imran and officials of the Jammu and Kashmir Bank for alleged illegal appropriation of crores of rupees from the state exchequer, a spokesman said Saturday. Imran, the businessman-turned-politician, is the Deputy Mayor of Srinagar Municipal Corporation (SMC). During investigation, it was revealed that Imran, who is director of the Kehwa Group of Companies, submitted a proposal to the J&K Bank for establishment of controlled atmosphere (CA) storage under the name of Kehwa Square Pvt. Ltd. in Pulwama, the spokesman said. A joint inspection team of various experts and government officials conducted an inspection of the site and the assessed cost of the project to Rs 33.00 crore, he said. The subsidy component was calculated at Rs 16.50 crore -- 50 per cent of the estimated project cost (EPC) -- purportedly as per norms of Horticulture Mission for North East & Himalayan (HMNEH) states, he ...