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21:59 NSE to stop derivative trading in Fortis
Leading stock exchange NSE today said derivative trading in Fortis Healthcare would be stopped if the company fails to submit its financial results for last two quarters by March 1.
Fortis has failed to meet the deadlines for submission of its financial results for the September and December quarters.
The company, on February 13, had intimated to the stock exchanges that its board will consider the financial results of September and December quarters in its meeting to be held on February 28.
21:54 India to emerge as model for rest of world: Niti Aayog
Niti Aayog Vice Chairman Rajiv Kumar today said India will emerge as a model for the rest of the world once it completes economic, political and social transitions.
He was addressing the 46th Panjab University Colloquium-cum-3rd Shenmar Memorial Oration here today, according to a release of the Panjab University (PU). The theme was "New India@2022".
21:48 3 major state PSUs incurred loss of Rs 981 cr in 2016-17: CAG
Three major public sector units, including Karnataka Neeravari Nigam Limited, incurred loss of Rs 981 crore to the state exchequer during 2016-17, according to a Comptroller and Auditor General report.
The report, which was made public today, said the working state PSUs earned a profit of Rs 1,420.49 crore in the aggregate and incurred a loss of Rs 1,265.37 crore as per their latest finalised accounts at the end of September 2017.
The Karnataka Rural Infrastructure Development Corporation Limited made a profit of Rs 109.88 crore.
21:13 Rotomac owner Vikram Kothari arrested by CBI
The CBI today arrested Rotomac owner Vikram Kothari and his son Rahul, both directors in the company, for alleged default on loan repayments to the tune of Rs 3,695 crore, officials said here.
Kothari, who was called at the agency headquarters here for questioning, and Rahul were not cooperating in the investigation that led to their arrest, they said.
A consortium of seven nationalised banks has given bank loans worth Rs 2,919 crore from 2008 onwards Rotomac Global Pvt Limited from 2008 onwards, the CBI FIR has alleged.
20:37 PNB transfers 1,415 employees post scam
Punjab National Bank (PNB) has transferred 1,415 employees after the scam involving Rs 11,400 crore, using fake letters of undertakings (LoUs) to diamond jeweller Nirav Modi and associates, surfaced earlier this month.
Modi has allegedly cheated the country's second largest bank through issuance of LoUs in connivance with a few officials of the bank from one of its Mumbai branch. The bank filed a FIR in this regard on February 13.
19:53 Ikea to invest Rs 3,000 cr in Maharashtra for stores, experience zones
Swedish furniture retailer Ikea will invest Rs 3,000 crore in the state over the long-term to set up multi-format stores as well as experience centres.
"We will be investing close to Rs 3,000 crore over the long-term in the state to set up multi-format stores. We will also open experience centres in Mumbai going forward," said Patrik Antoni, deputy country manager, Ikea.
19:25 Sale of first batch of electoral bonds from Mar 1-10: FinMin
The sale of first batch of electoral bonds will take place from March 1-10 at designated branches of State Bank of India, the finance ministry said today.
The government had notified the Electoral Bond Scheme on January 2 this year. As per provisions of the scheme, a person, who is a citizen of India or an entity incorporated/ established in India can purchase electoral bonds.
19:17 Rupee tumbles on capital flight, hits 3 month low of 65.04
The rupee took another beating after a brief solace and plunged by a staggering 28 paise to end at a new three-month low of 65.04 against the US dollar even as importers rushed to cover unhedged positions amid fears over an imminent Fed rate hike.
This is the lowest closing of the Indian currency since November 20 last year.
18:08 Goa CM Manohar Parrikar presents Rs 17,123-crore Goa budget
Goa Chief Minister Manohar Parrikar today presented in the state assembly a Rs 17,123-crore budget for 2018-19, an increase of 6.84 per cent over the ongoing fiscal, with a stress on education and job creation.
Parrikar, who was undergoing treatment at a Mumbai hospital for a pancreatic ailment, returned here this afternoon.
The chief minister was present in the assembly complex for half an hour, during which he chaired a meeting of his Cabinet, tabled the budget and witnessed the passage of vote-on-account for five months.
17:53 Federal Bank acquires 26% stake in Equirus Capital
Private sector lender Federal Bank today made its foray into investment banking by acquiring a minority 26 per cent stake in Equirus Capital, a boutique investment bank.
Ganesh Sankaran, executive director, Federal Bank, said with a shift in client preferences, the bank's foray into investment banking will help it participate in opportunities and instruments beyond traditional banking products.
It would widen the product offerings to a spectrum of wholesale clients by offering comprehensive financial solutions for debt and equity capital markets, structured finance, capital market products and advisory, according to a release issued today.
17:00 Goldman Sachs sees an over 95% chance of a Fed rate hike in March
Goldman Sachs is all but certain the Federal Reserve will hike interest rates next month, reports CNBC. Strong economic growth and an uptick in inflation have boosted confidence among Federal Reserve policymakers that the US economy is ready for higher interest rates, according to an official account of the central bank's most recent meeting in late January.
The minutes appeared to reinforce investor expectations that the Fed would raise rates at its next meeting in March. Shortly after the meeting minutes were published Wednesday, Goldman Sachs upwardly revised its probability of a March rate hike to more than 95%. "The minutes from the January Federal Open Market Committee meeting indicated further improvement in the growth outlook and slightly more hawkish views on inflation," Goldman Sachs said in a research note.
16:49 Don’t want nukes, no sunset clause in nuclear deal, says Iran
Iran’s commitment to not seek nuclear weapons is permanent and there is no so-called sunset clause in the Iran nuclear deal, the country’s Deputy Foreign Minister Abbas Araqchi told Reuters. The United States wants flaws in what it calls sunset clauses in the 2015 Iranian nuclear deal to be reworked.
“There is no sunset clause in the JCPOA,” Araqchi said. “Although the US administration and Trump are talking about sunset clause and that JCPOA is just for 10 years, that is not true,” he said. “Iran’s commitment in the JCPOA not to go for the nuclear weapon is permanent.”
15:47 Rolls-Royce unveils 8th gen Phantom priced at Rs 9.5 cr
Luxury car maker Rolls-Royce introduced the eighth generation Phantom priced at Rs 9.5 crore, as part of plans to widen the product portfolio in the country, reports PTI.
To a question on the company's business performance last year, Rolls-Royce Motor Cars, Asia Pacific, Regional Director, Paul Harris said, India was bit of a strange market last year because of so many changes in "duties, GST and demonestisation."
"From the automotive perspective, definitely there was lack of stability last year. It has to stabilise somehow. You cannot keep tinkering a business area. It needs stability. Well mostly it is on various taxation issues, GST, demonetisation and many things had an impact," he noted.
15:30 RBI's new NPA norms may undermine bank earnings: Fitch
The Reserve Bank's new norms for overhauling the mechanism to deal with bad loans is aimed at speeding up the NPA resolution, but would undermine the banking sector earnings in the near-term, credit rating agency Fitch said today.
However, stronger regulatory efforts to clean-up bad loan problems, combined with planned recapitalisation of state banks, could help support a recovery in the sector over the medium term, the US-based agency said in a statement.
14:54 Uber CEO says no change in India business after SoftBank deal Uber Technologies does not expect any change in its India operations following an investment deal with Japan’s SoftBank Group, which also has a stake in the US firm’s India rival Ola, Uber’s chief executive told Reuters. India is one of Uber’s fastest-growing international markets and accounts for more than 10% of Uber’s trips globally, but it’s not making money yet, Dara Khosrowshahi said.
14:39 Bharat Dynamics, IREDA get Sebi's go-ahead for IPO
Two state-run companies - Bharat Dynamics and Indian Renewable Energy Development Agency (IREDA) - have received the go-ahead from market regulator Sebi to float their initial public offerings. Bharat Dynamics and IREDA had received ‘observations’ from the Securities and Exchange Board of India (Sebi) on February 15 and February 16, respectively, as per the latest update with the markets watchdog.
Bharat Dynamics was established in 1970 and is a manufacturer of guided missiles and allied defence equipment. IREDA, a public financial institution established in March 1987, is registered as a non-banking financial company with RBI. Since its inception, IREDA has played a pioneering role in supporting and facilitating the policies and programme of the Ministry of New and Renewable Energy.
14:36 59% candidates in Nagaland polls are crorepatis, says ADR
Fifty-nine percent of the candidates for the February 27 Assembly elections in Nagaland are crorepatis with JD(U) nominee Ramongo Lotha being the richest among them with a total wealth of Rs 38.92 crore, an analysis of the affidavits revealed. The Association of Democratic Reforms (ADR), which analysed the affidavits of 193 aspirants out of a total of 196 candidates, found out that 114 candidates are crorepatis, reports PTI. Lotha, a retired IAS officer, has movable assets worth Rs 22,81,960 and immovable assets at Rs 38,69,40,000 taking his total wealth to Rs 38.92 crore, the ADR analysis said.
14:27 RInfra bags Rs 3,647cr contract for thermal power project in TN
Reliance Infrastructure (RInfra) today said it has won a Rs 3,647 crore contract from Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO) for work related to Uppur Thermal power project. "RInfra has won a prestigious engineering, procurement and construction (EPC) contract for Rs 3,647 crore from TANGEDCO for balance of plant (BoP) package and allied civil works for 2 x 800 MW supercritical coal-based Uppur Thermal Power Project at Ramanathapuram District in Tamil Nadu," RInfra said in a statement.
The contract entails design, engineering, supply, erection, testing and commissioning of BoP package and allied civil works on EPC basis. The project is to be commissioned in 36 months. The infrastructure major said its EPC division has won the contract in international competitive bidding amidst competition from leading EPC players like BHEL, L&T, Tata Projects and BGR. With this contract, Reliance Infrastructure Limited's EPC order book now stands at over Rs 15,000 crore, it said.
Exclusive: Chinese govt subsidising electric bus makers to fight Indian prices, says Ashok Leyland
Government of China is providing ‘subsidy’ to electric bus manufacturers to price its products lower than Indian companies vying for state governments contracts, a top official from Ashok Leyland said. Speaking exclusively to Moneycontrol News’ Swaraj Baggonkar, Vinod Dasari, Managing Director, Ashok Leyland, said, “It will be difficult for us to compete when some other government is subsidising their company to come and compete in India. It seems like an unfair competition but we will do what we have to do.”
13:51 SC asks if Kerala HC was justified in annulling Hadiya's marriage
The Supreme Court asked if a roving inquiry could be ordered into the "issue of consent" between two adults who married at will and if the Kerala High Court order annulling the marriage of Hadiya, an alleged victim of 'love jihad', was justified, reports PTI. "What troubles us is that whether there can be a roving inquiry into the issue of consent between two adults who have agreed to marry," the bench said.
Whether the high court was justified in nullifying the marriage is a pure question of law, it added. "Marriage and investigation are two different things. As far as marriage is concerned, it does not warrant any investigation. Investigation has nothing to do with it. You can investigate any other thing," the court said. Hadiya, the 25-year-old woman who is at the centre of an alleged love jihad controversy, had on Tuesday filed an affidavit before the top court claiming that she willingly converted to Islam and wants to live with her husband Shafin Jahan.
13:47 Manohar Parrikar discharged from Mumbai hospital
Goa Chief Minister Manohar Parrikar was discharged from the Lilavati Hospital in Mumbai, where he was undergoing treatment for a pancreatic ailment, reports PTI. Parrikar has arrived in Goa after the discharge. Deputy Speaker of the Goa Legislative Assembly Michael Lobo confirmed this development. Parrikar was being treated in Mumbai for pancreatitis since February 15.
13:41 Adani Ent may sell stake in Carmichael Coal Mine amid funding delay
The battle to build one of the world’s biggest coal mines has suffered a fresh setback after Adani Enterprises conceded it would fail to meet a March deadline to arrange A$3 billion ($2.3 billion) in financing for the project, reports Bloomberg. The December decision by the Queensland government to veto Adani’s A$900 million funding bid for a rail line meant financing would require more time to be secured, an Adani Australia spokeswoman said.
The Indian conglomerate said it will also consider selling a minority stake in its Carmichael project without providing further details. The financing delay is the latest hurdle for Adani, adding pressure to its ambition to deliver the first coal production from the mine by 2020. In addition to the state government opposing a federal loan for the project, major lenders have pre-emptively excluded themselves from financing the Carmichael development because they oppose polluting fossil-fuel projects.
13:28 Glenmark ties up with SKorea's SCD for ophthalmic products Glenmark Pharmaceuticals has entered into an exclusive agreement with South Korea's Sam Chun Dang Pharm Co (SCD) to develop, manufacture and market a portfolio of ophthalmic products in the US and Canada. "Under this agreement, these products will be developed and manufactured by SCD in South Korea. Glenmark will seek all market authorisations and commercialise the products in North America," the company said in a BSE filing.
According to the pact, Glenmark and SCD will develop and commercialise six ophthalmic products in the US and Canada. "It is expected that Glenmark will file six abbreviated new drug applications (ANDAs) beginning in the first half of 2019 for the licensed SCD ophthalmic products," it added. Citing IMS sales figures, Glenmark said the US brand sales for the six products was approximately $1.7 billion for calendar year 2017.
13:25 India ranks 81st in global corruption perception index
India has been ranked 81st in the global corruption perception index for 2017, released by Transparency International, which named the country among the "worst offenders" in terms of graft and press freedom in the Asia Pacific region, reports PTI. The index, which ranks 180 countries and territories by their perceived levels of public sector corruption, placed India at the 81st place. In the 2016 India was in the 79th place among 176 countries.
The index uses a scale of 0 to 100, where 0 is highly corrupt and 100 is very clean. India's score in the latest ranking, however, remained unchanged at 40. In 2015, the score was 38. Transparency International said, "in some countries across the region (Asia Pacific), journalists, activists, opposition leaders and even staff of law enforcement or watchdog agencies are threatened, and in the worst cases, even murdered". "Philippines, India and the Maldives are among the worst regional offenders in this respect. These countries score high for corruption and have fewer press freedoms and higher numbers of journalist deaths," it added.
13:16 Bid for Bhushan Power rejected, Liberty House to approach NCLT
Reacting sharply to the rejection of its bid for Bhushan Steel & Power on Wednesday, Liberty House said it will approach the National Company Law Tribunal (NCLT) so that its proposal is considered, reports Moneycontrol News’ Prince Mathews Thomas. "Our bid was submitted before (other) bids were opened, so nothing unfair has happened," a spokesperson for Liberty House said.
The last date for submission for bids for the troubled steelmaker was February 8. The company spokesperson though said that while the 'creditors wanted to open our bid,' they were advised against it by the lawyers. "We will go to the NCLT and ask them to direct the RP (resolution professional) and Committee of Creditors to open our bid. The process is not supposed to deny creditors to recover more money on these bad debts, that would not be fair as this is public money," said the spokesperson.
Exclusive: Appraisal season may mean tough times for employees with inadequate skills
The 2017 bloodbath with respect to individuals with track record of poor performance and low skills is expected to see a repeat this appraisal season, Moneycontrol News’ M Saraswathy. Last year, about 65,000 employees across the banking, financial services and IT/ITeS sector alone were sacked and those numbers would continue this year too.
A mid-sized IT services firm which has kicked off its appraisal discussions with the human resource team has already made it clear to everyone that there will no compromise on upskilling initiatives taken by employees. In other words, those who have not bothered to acquire additional skills will face tough questions.
The performance appraisal season that begins from end of February and ends by mid-March looks into the achievements of the individual employees in companies in comparison to how their peers have performed as well as how the business is functioning. “Companies do not have the cost advantage to go lax on employees who have not been performing as per the required matrix and will no longer be able to keep retaining them,” said the deputy HR head of an IT firm.
Exclusive: Former Corporate Affairs Secretary Tapan Ray in line to be next Irda chairman
Former Corporate Affairs Secretary Tapan Ray is said to be in race for the Insurance Regulatory and Development and Authority of India chairman’s post, sources told Moneycontrol News’ M Saraswathy. The insurance regulatory body’s chief post fell vacant on February 21 after TS Vijayan retired. Ray is a Gujarat cadre IAS officer who was also given the additional charge as interim Economic Affairs Secretary after Shantikanta Das had retired. He has also served as joint secretary in Department of Defence.
12:34 PNB fraud: ED seizes Rs 94cr assets, luxury cars of Nirav Modi, Choksi
The Enforcement Directorate said it has frozen mutual funds and shares worth Rs 94.52 crore of the Nirav Modi and Mehul Choksi groups in connection with a money laundering probe against them in the Rs 11,400-crore alleged fraud at the Punjab National Bank (PNB), reports PTI. It also seized nine high-end luxury cars of Modi as part of its investigation against him under the criminal provisions of the Prevention of Money Laundering Act (PMLA).
Agency officials said it froze mutual funds and shares worth Rs 86.72 crore belong to Choksi and his group, and the rest are owned by the Modi group. The central probe agency also seized nine costly cars of Modi, recovered by it during raids last week. These include a Rolls Royce Ghost, a Mercedes Benz, a Porsche Panamera, three Honda variants, a Toyota Fortuner and an Innova.
12:01 Pawan Hans disinvestment finds no takers, fresh bids in '2 to 3 months'
The government is likely to call for fresh bids for the disinvestment of Pawan Hans in the next "two to three months" after an attempt to sell its entire 51% stake in the chopper company didn't find many takers, reports PTI. Last year, the government had invited bids from private companies, including foreign ones, to buy out its stake along with management control in helicopter service operator Pawan Hans (PHL).
The chopper company is a 51:49 joint venture between the Civil Aviation Ministry and oil behemoth ONGC. Civil Aviation Minister Ashok Gajapathi Raju said that during the bidding process, there was effectively only one bid. "I understand there is only one entity that qualified, which is effectively a single tender," Raju said.
11:54 Pepperfry eyes first profit, Rs 2,000cr topline in 2019
Pepperfry.com, the country's largest furniture and home products marketplace, hopes to turn profitable next year with a gross merchandise value (GMV) of Rs 2,000 crore, as it plans an aggressive expansion in its offerings as well as in physical footprint, reports PTI. The six-year-old marketplace, which also sells other brands like Hometown, Godrej and Neelkamal among others, apart from its own private labels, has set a target of Rs 1,400 crore of GMV this year.
11:39 Goldman Sachs cuts price targets for PSU banks post fraud
Goldman Sachs has cut its earnings forecasts and price targets for three of India’s state-run lenders, post detection of the Rs 11,400 crore fraud at Punjab National Bank, reports Bloomberg. It has lowered FY18’s earnings estimate for State Bank of India by 1%, Bank of Baroda by 12% and PNB by 30%, even after taking into account the first tranche of Prime Minister Narendra Modi’s $33 billion recapitalisation plan in their forecasts. Estimates for 2019 and 2020 were also reduced by similar amounts.
Potential risk aversion and a greater focus on operational controls after the fraud may hamper growth in the near term, the analysts wrote in a note to clients on Wednesday. “We lower our EPS estimates for SBI/BoB largely on the back of share dilution,” they said. “On PNB, we see a larger EPS decline as we lower growth after baking in the full impact of the fraud-related liability.” Still, despite the cuts, Goldman sees upside for state-bank shareholders. Its new price targets offer upside of between 12% and 29%.
11:24 PNB scam effect: PSU banks start linking all processes to core banking solutions
Tremors of last week’s Rs 11,400 crore scam at Punjab National Bank seem to have trickled down to other banks as well. Top management of several public sector banks have begun conducting reviews, and taking steps to centralise all processes linking them to core banking solutions (CBS), reports Moneycontrol News’ Beena Parmar. This will help reduce the operational risks that led to the scam at PNB, said bankers of several public sector banks.
10:57 US students protest gun laws, Trump considers arming teachers
Students galvanised by the deadly mass shooting at a Florida high school confronted lawmakers on Wednesday with demands to restrict sales of assault rifles, while President Donald Trump suggested arming teachers as a way to stop more US rampages, reports Reuters.
The unprecedented lobbying effort by groups of teenagers and parents at the White House and at the Florida statehouse in Tallahassee played out as fellow students staged classroom walkouts and rallies in cities across the country. Trump, in an emotional hour-long meeting with students who survived the Florida shooting and a parent whose child did not, said arming teachers and other school staff could help prevent future mass shootings, voicing support for an idea backed by the powerful National Rifle Association gun lobby.
10:45 NPPA not to stop withdrawal of stents from market
Drug price regulator NPPA has decided not to stop any coronary stent manufacturer from withdrawing products from the Indian market, reports PTI. The National Pharmaceutical Pricing Authority (NPPA) said however that the companies will have to follow mandatory requirement of informing it six months in advance as prescribed under Drugs Prices Control Order (DPCO), 2013, while also following the ceiling price.
10:26 At last, a woman takes centre stage at Nasscom
In a sign of the times, the organisation that speaks for and champions India’s $167 billion IT services industry will soon get its first female head, reports Bloomberg. Intel Corp veteran Debjani Ghosh takes over as president of the National Association of Software and Services Companies (Nasscom) in April - three decades after its formation. After a two-decade career at the US chipmaker, most recently as managing director for South Asia, Ghosh will lead the trade body.
Ghosh promises to advocate for women in a workplace that remains male-dominated. Her appointment underscores how the local industry is waking up to a gender imbalance that plagues the global technology sector, starting with its epicentre of Silicon Valley, and has resulted in harassment and discrimination at all levels. Ghosh, also an angel investor in a number of startups, argued that changes in the executive suite and mindsets are needed for a level playing field.
10:20 FDI rises only 0.27% during Apr-Dec FY18
Foreign direct investment (FDI) in the country grew by a meagre 0.27% to $35.94 billion during the first nine months of the current fiscal, as per data from the Department of Industrial Policy and Promotion (DIPP). FDI inflows were $35.84 billion during the April-December period of last fiscal, 2016-17.
In rupee terms, however, FDI recorded a negative growth -- inflows dipped by 4% to Rs 231,457 crore. The major sectors which attracted overseas inflows during the period include services ($4.62 billion), telecommunications ($6.13 billion), computer software and hardware ($5.15 billion) and construction activities ($2.5 billion).
Bulk of the FDI came in from Singapore, Mauritius, the Netherlands and Japan. In the nine months period of the current financial year, India received a maximum of $13.34 billion investments from Mauritius. It was followed by Singapore ($9.21 billion) and Netherlands ($2.38 billion).
10:03 EPFO lowers int rate to 8.55% for FY18, workers threshold for coverage cut to 10
Retirement fund body EPFO has lowered the rate of interest on employees provident fund to 8.55% for its over six-crore subscribers for 2017-18, from 8.65% in the previous fiscal, reports PTI. Labour Minister Santosh Gangwar said after the Employees' Provident Fund Organisation's (EPFO) trustees meet on Wednesday said the EPFO has liquidated portion of its investments in the exchange traded funds (ETFs) to bridge the gap to provide 8.55% interest this fiscal.
He said the EPFO received 8% returns on its bond investments but it is able to pay 8.55% rate because it has sold some of its investments in ETFs. “The ETF investments have fetched a return of 20.65% so far, and in the months of January and February this year, the EPFO has sold Rs 3,700 crore ETFs which earned a return of Rs 1,011 crore.” The EPFO has invested around Rs 44,000 crore so far in the ETFs. It had started investing in ETFs in August 2015.
On the administrative charges, he said the EPFO's apex decision making body Central Board of Trustees has decided to reduce the administrative charges from 0.65% to 0.5% of total wages which are paid by employers. The minister also said the trust has also decided to reduce the workers threshold for coverage under the EPFO schemes to 10 from the existing 20.
09:47 Bajaj Finserv, Grasim, Titan to debut on Nifty50 from April 2 Bajaj Finserv, Grasim Industries and Titan will be added to the Nifty50 with effect from April 2. Likewise, the existing three stocks - Ambuja Cements, Aurobindo Pharma and Bosch - will be excluded from the benchmark with effect from April 2.
09:27 Govt should privatise national banks, says Adi Godrej Godrej Group Chairman Adi Godrej said the government should privatise public sector banks to ensure better management in the wake of PNB fraud case. The Godrej group patriarch also said privatisation should not be restricted to only banks but also include other public sector enterprises.
"First of all, I don't think so many banks (needed) in the public sector. I think, we are too big a public sector in our country and I believe that they should privatise it," Adi Godrej said. According to him, private banks are better managed and so far no big scams have come up so far in that sector. "I have not heard of any major scams by the private bank. There is always something wrong going in companies from time to time but it's always more controlled in the private sector if at all and much better managed," Godrej said.
09:20 Rotomac bank fraud: I-T attaches assets in Kanpur, Ahmedabad
The Income Tax Department on Wednesday said it has attached four immovable assets of the Rotomac Group and its promoters in connection with an alleged tax evasion probe against them, reports PTI. They said the properties, three in Kanpur and one in Ahmedabad, were provisionally attached.
09:16 CBI seals Nirav Modi's farmhouse in Alibaug
The Central Bureau of Investigation on Wednesday sealed a luxury property of billionaire Nirav Modi in Alibaug area near Mumbai, officials told PTI. The 1.5 acre farm house in the uber rich neighbourhood at a stone's throw distance from Arabian sea was purchased by Modi in 2004 for Rs 32 crore for hosting special parties for his clientele to show case his precious jewellery collection, they said. The "haut diamantaire's" expansive farm house, located about 100 km by road from Mumbai in Raigad district also has a 12,000 sq ft bungalow with five bedrooms, a large swimming pool, a movie theatre and a library, they said.
09:10 PNB fraud: ED raids shell firms; I-T attaches Rs 145cr assets
The Enforcement Directorate (ED) continued with its raids for the seventh day as it visited 17 locations across the country, including four shell companies in Mumbai, even as the I-T department attached assets worth Rs 145 crore in the alleged Rs 11,400-crore Punjab National Bank (PNB) fraud, reports PTI. While the ED seized assets worth Rs 10 crore on Wednesday, the tax department said it has attached a total of 141 bank accounts and fixed deposits worth Rs 145.74 crore of the Nirav Modi group.
The department said it has attached these assets to realise outstanding tax demands. With Wednesday's seizure, the total value of gems and gold jewellery seized by the ED stands at Rs 5,736 crore. The agency has said it is carrying out an "independent valuation" of these seized assets.
09:06 Maha dams have 52% water stock, worry looms over Vidarbha
Dams in Maharashtra have 52% water stock of their capacity, which is 2% higher compared to the corresponding period last year, a Water Resources department official said. "Dams in the state have 761 TMC water as on Wednesday, which is 52.83% (of their capacity). There are 3,246 dams of various size across the state that have a total water storage of 1,338 TMC (thousand million cubic feet)," he said.
The storage of water in dams was 74.47% at the end of September last year, the official said. The monsoon in Maharashtra generally gets over by September. "In February last year, the total water stock was 50%," the official said.
08:54 India successfully conducts night trial of Prithvi-II missile
India on Wednesday successfully conducted a night trial of its indigenously developed nuclear capable Prithvi-II missile with a strike range of 350 km, from a test range in Odisha, reports PTI. The surface-to-surface missile was test-fired from a mobile launcher from launch complex-3 of the Integrated Test Range at Chandipur around 8.30 pm, as part of a user trial by the Army, defence sources said.
The state-of-the-art Prithvi-II missile is capable of carrying 500 to 1,000 kg of warheads and is thrusted by liquid propulsion twin engines. The sophisticated missile, which has a strike range of 350 km, uses advanced inertial guidance system with manoeuvring trajectory to hit its target, they said.
08:34 Indian firms lost $500K to cyber attacks in 1.5 years, says Cisco
Cyber attacks in the country caused financial damages to the tune of about $500,000 to India companies in the last 12-18 months, says a study. "...more than half of all attacks resulted in financial damages of more than $500,000, including, but not limited to, lost revenue, customers, opportunities, and out-of-pocket costs," the technology firm Cisco 2018 Annual Cybersecurity report said. The report said that security is getting more complex and scope of breaches is expanding.
08:06 Kamal Haasan says his party will be "free of games of caste, religion"
Launching his political party, actor Kamal Haasan said his outfit was committed to politics free from "games of caste and religion" and would focus on good governance, reports PTI. In his launch address, Haasan touched upon key issues concerning Tamil Nadu including the Cauvery river water dispute, alleged corruption and vote for money.
Haasan christened his party "Makkal Needhi Mayyam," and unfurled its flag that symbolises the strength of unity. On the symbolism behind the flag, he said: "If you look closer you can find the map of south India map in it, the six hands refer to six southern states..the star at the centre refers to the people..."
The party's name roughly translates to "Centre for People's Justice." Outlining his party's policies, he said his outfit was committed to a politics free from "games of caste and religion," quality education for all sections of people and good governance sans corruption. He said ending corruption was the responsibility of all and not just his.
07:57 PNB fraud: Vipul Ambani and 5 others in CBI custody till Mar 5
A special court in Mumbai on Wednesday remanded Vipul Ambani, the president (finance) of Nirav Modi's Fire Star Diamond, and five others in CBI custody till March 5 in connection with the Rs 11,400 crore alleged fraud in Punjab National Bank (PNB). The six were arrested on Tuesday in connection with two FIRs registered by the CBI involving Modi and his uncle Mehul Choksi, the owner of Gitanjali Gems.
07:39 RBI panel warns on inflation as it monitors growth
Minutes from the Reserve Bank of India’s meeting this month showed monetary policy committee members expressing concerns about accelerating inflation, although that was also tempered by uncertainty about the strength of an economic recovery, reports Reuters. The MPC voted 5-1 at the meeting to keep the policy rate on hold at 6% and to retain its “neutral” monetary policy stance. RBI Executive Director Michael Patra was the sole member to vote for a 25 basic point hike.
The minutes released on Wednesday showed widespread concerns among the six MPC members about inflation, which accelerated to a 17-month high of 5.21% in December from a year earlier, driven higher by food and energy. Although data after the RBI meeting showed inflation easing to 5.07% in January, that remains well above the central bank’s 4% target.
07:29 Fed policymakers show rising confidence on inflation, economic outlook
The Federal Reserve’s rate-setting committee showed more confidence in the need to keep raising interest rates at its last policy meeting, with most believing that inflation would perk up, reports Reuters. The more upbeat take on inflation in the minutes of the Janurary 30-31 meeting released on Wednesday will likely further cement expectations that new Fed chief Jerome Powell will lead his colleagues in raising interest rates next month.
“Members agreed that the strengthening in the near-term economic outlook increased the likelihood that a gradual upward trajectory of the federal funds rate would be appropriate,” the Fed said in the minutes. It added that recent information on inflation received by voting members “along with prospects for a continued solid pace of economic activity provided support for the view that inflation...would likely move up in 2018.”
07:10 PNB adopts strict SWIFT controls after mega fraud
Punjab National Bank has stepped up its controls on the use of global payments network SWIFT following an alleged $1.77 billion fraud, according to memos issued this month and seen by Reuters. The new measures mean only PNB officers will be able to initiate messages on SWIFT, taking away the authority of clerks to do so. Several new limits have been placed on the amount that officers can generate depending on their seniority in the bank hierarchy.
The note sent by the bank’s head office in New Delhi to all regional offices on February 17 also stated any SWIFT message will have to be created, verified and authorised by three different officers, starting Thursday. Previously only two individuals were needed for the process. “In continuation of efforts to strengthen SWIFT operation and deploy additional measures to ensure more effective control, it has been decided to set up SWIFT user base limits,” the note went on to say.
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NSE to stop derivative trading in Fortis
Leading stock exchange NSE today said derivative trading in Fortis Healthcare would be stopped if the company fails to submit its financial results for last two quarters by March 1.
Fortis has failed to meet the deadlines for submission of its financial results for the September and December quarters.
The company, on February 13, had intimated to the stock exchanges that its board will consider the financial results of September and December quarters in its meeting to be held on February 28.
India to emerge as model for rest of world: Niti Aayog
Niti Aayog Vice Chairman Rajiv Kumar today said India will emerge as a model for the rest of the world once it completes economic, political and social transitions.
He was addressing the 46th Panjab University Colloquium-cum-3rd Shenmar Memorial Oration here today, according to a release of the Panjab University (PU). The theme was "New India@2022".
3 major state PSUs incurred loss of Rs 981 cr in 2016-17: CAG
Three major public sector units, including Karnataka Neeravari Nigam Limited, incurred loss of Rs 981 crore to the state exchequer during 2016-17, according to a Comptroller and Auditor General report.
The report, which was made public today, said the working state PSUs earned a profit of Rs 1,420.49 crore in the aggregate and incurred a loss of Rs 1,265.37 crore as per their latest finalised accounts at the end of September 2017.
The Karnataka Rural Infrastructure Development Corporation Limited made a profit of Rs 109.88 crore.
Rotomac owner Vikram Kothari arrested by CBI
The CBI today arrested Rotomac owner Vikram Kothari and his son Rahul, both directors in the company, for alleged default on loan repayments to the tune of Rs 3,695 crore, officials said here.
Kothari, who was called at the agency headquarters here for questioning, and Rahul were not cooperating in the investigation that led to their arrest, they said.
A consortium of seven nationalised banks has given bank loans worth Rs 2,919 crore from 2008 onwards Rotomac Global Pvt Limited from 2008 onwards, the CBI FIR has alleged.
PNB transfers 1,415 employees post scam
Punjab National Bank (PNB) has transferred 1,415 employees after the scam involving Rs 11,400 crore, using fake letters of undertakings (LoUs) to diamond jeweller Nirav Modi and associates, surfaced earlier this month.
Modi has allegedly cheated the country's second largest bank through issuance of LoUs in connivance with a few officials of the bank from one of its Mumbai branch. The bank filed a FIR in this regard on February 13.
Ikea to invest Rs 3,000 cr in Maharashtra for stores, experience zones
Swedish furniture retailer Ikea will invest Rs 3,000 crore in the state over the long-term to set up multi-format stores as well as experience centres.
"We will be investing close to Rs 3,000 crore over the long-term in the state to set up multi-format stores. We will also open experience centres in Mumbai going forward," said Patrik Antoni, deputy country manager, Ikea.
Sale of first batch of electoral bonds from Mar 1-10: FinMin
The sale of first batch of electoral bonds will take place from March 1-10 at designated branches of State Bank of India, the finance ministry said today.
The government had notified the Electoral Bond Scheme on January 2 this year. As per provisions of the scheme, a person, who is a citizen of India or an entity incorporated/ established in India can purchase electoral bonds.
Rupee tumbles on capital flight, hits 3 month low of 65.04
The rupee took another beating after a brief solace and plunged by a staggering 28 paise to end at a new three-month low of 65.04 against the US dollar even as importers rushed to cover unhedged positions amid fears over an imminent Fed rate hike.
This is the lowest closing of the Indian currency since November 20 last year.
Goa CM Manohar Parrikar presents Rs 17,123-crore Goa budget
Goa Chief Minister Manohar Parrikar today presented in the state assembly a Rs 17,123-crore budget for 2018-19, an increase of 6.84 per cent over the ongoing fiscal, with a stress on education and job creation.
Parrikar, who was undergoing treatment at a Mumbai hospital for a pancreatic ailment, returned here this afternoon.
The chief minister was present in the assembly complex for half an hour, during which he chaired a meeting of his Cabinet, tabled the budget and witnessed the passage of vote-on-account for five months.
Federal Bank acquires 26% stake in Equirus Capital
Private sector lender Federal Bank today made its foray into investment banking by acquiring a minority 26 per cent stake in Equirus Capital, a boutique investment bank.
Ganesh Sankaran, executive director, Federal Bank, said with a shift in client preferences, the bank's foray into investment banking will help it participate in opportunities and instruments beyond traditional banking products.
It would widen the product offerings to a spectrum of wholesale clients by offering comprehensive financial solutions for debt and equity capital markets, structured finance, capital market products and advisory, according to a release issued today.
Goldman Sachs sees an over 95% chance of a Fed rate hike in March
Goldman Sachs is all but certain the Federal Reserve will hike interest rates next month, reports CNBC. Strong economic growth and an uptick in inflation have boosted confidence among Federal Reserve policymakers that the US economy is ready for higher interest rates, according to an official account of the central bank's most recent meeting in late January.
The minutes appeared to reinforce investor expectations that the Fed would raise rates at its next meeting in March. Shortly after the meeting minutes were published Wednesday, Goldman Sachs upwardly revised its probability of a March rate hike to more than 95%. "The minutes from the January Federal Open Market Committee meeting indicated further improvement in the growth outlook and slightly more hawkish views on inflation," Goldman Sachs said in a research note.
Don’t want nukes, no sunset clause in nuclear deal, says Iran
Iran’s commitment to not seek nuclear weapons is permanent and there is no so-called sunset clause in the Iran nuclear deal, the country’s Deputy Foreign Minister Abbas Araqchi told Reuters. The United States wants flaws in what it calls sunset clauses in the 2015 Iranian nuclear deal to be reworked.
“There is no sunset clause in the JCPOA,” Araqchi said. “Although the US administration and Trump are talking about sunset clause and that JCPOA is just for 10 years, that is not true,” he said. “Iran’s commitment in the JCPOA not to go for the nuclear weapon is permanent.”
Rolls-Royce unveils 8th gen Phantom priced at Rs 9.5 cr
Luxury car maker Rolls-Royce introduced the eighth generation Phantom priced at Rs 9.5 crore, as part of plans to widen the product portfolio in the country, reports PTI.
To a question on the company's business performance last year, Rolls-Royce Motor Cars, Asia Pacific, Regional Director, Paul Harris said, India was bit of a strange market last year because of so many changes in "duties, GST and demonestisation."
"From the automotive perspective, definitely there was lack of stability last year. It has to stabilise somehow. You cannot keep tinkering a business area. It needs stability. Well mostly it is on various taxation issues, GST, demonetisation and many things had an impact," he noted.
RBI's new NPA norms may undermine bank earnings: Fitch
The Reserve Bank's new norms for overhauling the mechanism to deal with bad loans is aimed at speeding up the NPA resolution, but would undermine the banking sector earnings in the near-term, credit rating agency Fitch said today.
However, stronger regulatory efforts to clean-up bad loan problems, combined with planned recapitalisation of state banks, could help support a recovery in the sector over the medium term, the US-based agency said in a statement.
Uber CEO says no change in India business after SoftBank deal
Uber Technologies does not expect any change in its India operations following an investment deal with Japan’s SoftBank Group, which also has a stake in the US firm’s India rival Ola, Uber’s chief executive told Reuters. India is one of Uber’s fastest-growing international markets and accounts for more than 10% of Uber’s trips globally, but it’s not making money yet, Dara Khosrowshahi said.
Bharat Dynamics, IREDA get Sebi go-ahead for IPO
Two state-run companies - Bharat Dynamics and Indian Renewable Energy Development Agency (IREDA) - have received the go-ahead from market regulator Sebi to float their initial public offerings. Bharat Dynamics and IREDA had received ‘observations’ from the Securities and Exchange Board of India (Sebi) on February 15 and February 16, respectively, as per the latest update with the markets watchdog.
Bharat Dynamics was established in 1970 and is a manufacturer of guided missiles and allied defence equipment. IREDA, a public financial institution established in March 1987, is registered as a non-banking financial company with RBI. Since its inception, IREDA has played a pioneering role in supporting and facilitating the policies and programme of the Ministry of New and Renewable Energy.
59% candidates in Nagaland polls are crorepatis, says ADR
Fifty-nine percent of the candidates for the February 27 Assembly elections in Nagaland are crorepatis with JD(U) nominee Ramongo Lotha being the richest among them with a total wealth of Rs 38.92 crore, an analysis of the affidavits revealed. The Association of Democratic Reforms (ADR), which analysed the affidavits of 193 aspirants out of a total of 196 candidates, found out that 114 candidates are crorepatis, reports PTI. Lotha, a retired IAS officer, has movable assets worth Rs 22,81,960 and immovable assets at Rs 38,69,40,000 taking his total wealth to Rs 38.92 crore, the ADR analysis said.
RInfra bags Rs 3,647cr contract for thermal power project in TN
Reliance Infrastructure (RInfra) today said it has won a Rs 3,647 crore contract from Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO) for work related to Uppur Thermal power project. "RInfra has won a prestigious engineering, procurement and construction (EPC) contract for Rs 3,647 crore from TANGEDCO for balance of plant (BoP) package and allied civil works for 2 x 800 MW supercritical coal-based Uppur Thermal Power Project at Ramanathapuram District in Tamil Nadu," RInfra said in a statement.
The contract entails design, engineering, supply, erection, testing and commissioning of BoP package and allied civil works on EPC basis. The project is to be commissioned in 36 months. The infrastructure major said its EPC division has won the contract in international competitive bidding amidst competition from leading EPC players like BHEL, L&T, Tata Projects and BGR. With this contract, Reliance Infrastructure Limited's EPC order book now stands at over Rs 15,000 crore, it said.
Exclusive: Chinese govt subsidising electric bus makers to fight Indian prices, says Ashok Leyland
Government of China is providing ‘subsidy’ to electric bus manufacturers to price its products lower than Indian companies vying for state governments contracts, a top official from Ashok Leyland said. Speaking exclusively to Moneycontrol News’ Swaraj Baggonkar, Vinod Dasari, Managing Director, Ashok Leyland, said, “It will be difficult for us to compete when some other government is subsidising their company to come and compete in India. It seems like an unfair competition but we will do what we have to do.”
SC asks if Kerala HC was justified in annulling Hadiya's marriage
The Supreme Court asked if a roving inquiry could be ordered into the "issue of consent" between two adults who married at will and if the Kerala High Court order annulling the marriage of Hadiya, an alleged victim of 'love jihad', was justified, reports PTI. "What troubles us is that whether there can be a roving inquiry into the issue of consent between two adults who have agreed to marry," the bench said.
Whether the high court was justified in nullifying the marriage is a pure question of law, it added. "Marriage and investigation are two different things. As far as marriage is concerned, it does not warrant any investigation. Investigation has nothing to do with it. You can investigate any other thing," the court said. Hadiya, the 25-year-old woman who is at the centre of an alleged love jihad controversy, had on Tuesday filed an affidavit before the top court claiming that she willingly converted to Islam and wants to live with her husband Shafin Jahan.
Manohar Parrikar discharged from Mumbai hospital
Goa Chief Minister Manohar Parrikar was discharged from the Lilavati Hospital in Mumbai, where he was undergoing treatment for a pancreatic ailment, reports PTI. Parrikar has arrived in Goa after the discharge. Deputy Speaker of the Goa Legislative Assembly Michael Lobo confirmed this development. Parrikar was being treated in Mumbai for pancreatitis since February 15.
Adani Ent may sell stake in Carmichael Coal Mine amid funding delay
The battle to build one of the world’s biggest coal mines has suffered a fresh setback after Adani Enterprises conceded it would fail to meet a March deadline to arrange A$3 billion ($2.3 billion) in financing for the project, reports Bloomberg. The December decision by the Queensland government to veto Adani’s A$900 million funding bid for a rail line meant financing would require more time to be secured, an Adani Australia spokeswoman said.
The Indian conglomerate said it will also consider selling a minority stake in its Carmichael project without providing further details. The financing delay is the latest hurdle for Adani, adding pressure to its ambition to deliver the first coal production from the mine by 2020. In addition to the state government opposing a federal loan for the project, major lenders have pre-emptively excluded themselves from financing the Carmichael development because they oppose polluting fossil-fuel projects.
Glenmark ties up with SKorea's SCD for ophthalmic products
Glenmark Pharmaceuticals has entered into an exclusive agreement with South Korea's Sam Chun Dang Pharm Co (SCD) to develop, manufacture and market a portfolio of ophthalmic products in the US and Canada. "Under this agreement, these products will be developed and manufactured by SCD in South Korea. Glenmark will seek all market authorisations and commercialise the products in North America," the company said in a BSE filing.
According to the pact, Glenmark and SCD will develop and commercialise six ophthalmic products in the US and Canada. "It is expected that Glenmark will file six abbreviated new drug applications (ANDAs) beginning in the first half of 2019 for the licensed SCD ophthalmic products," it added. Citing IMS sales figures, Glenmark said the US brand sales for the six products was approximately $1.7 billion for calendar year 2017.
India ranks 81st in global corruption perception index
India has been ranked 81st in the global corruption perception index for 2017, released by Transparency International, which named the country among the "worst offenders" in terms of graft and press freedom in the Asia Pacific region, reports PTI. The index, which ranks 180 countries and territories by their perceived levels of public sector corruption, placed India at the 81st place. In the 2016 India was in the 79th place among 176 countries.
The index uses a scale of 0 to 100, where 0 is highly corrupt and 100 is very clean. India's score in the latest ranking, however, remained unchanged at 40. In 2015, the score was 38. Transparency International said, "in some countries across the region (Asia Pacific), journalists, activists, opposition leaders and even staff of law enforcement or watchdog agencies are threatened, and in the worst cases, even murdered". "Philippines, India and the Maldives are among the worst regional offenders in this respect. These countries score high for corruption and have fewer press freedoms and higher numbers of journalist deaths," it added.
Bid for Bhushan Power rejected, Liberty House to approach NCLT
Reacting sharply to the rejection of its bid for Bhushan Steel & Power on Wednesday, Liberty House said it will approach the National Company Law Tribunal (NCLT) so that its proposal is considered, reports Moneycontrol News’ Prince Mathews Thomas. "Our bid was submitted before (other) bids were opened, so nothing unfair has happened," a spokesperson for Liberty House said.
The last date for submission for bids for the troubled steelmaker was February 8. The company spokesperson though said that while the 'creditors wanted to open our bid,' they were advised against it by the lawyers. "We will go to the NCLT and ask them to direct the RP (resolution professional) and Committee of Creditors to open our bid. The process is not supposed to deny creditors to recover more money on these bad debts, that would not be fair as this is public money," said the spokesperson.
Exclusive: Appraisal season may mean tough times for employees with inadequate skills
The 2017 bloodbath with respect to individuals with track record of poor performance and low skills is expected to see a repeat this appraisal season,MoneycontrolNews’ MSaraswathy. Last year, about 65,000 employees across the banking, financial services and IT/ITeSsector alone were sacked and those numbers would continue this year too.
A mid-sized IT services firm which has kicked off its appraisal discussions with the human resource team has already made it clear to everyone that there will no compromise onupskillinginitiatives taken by employees. In other words, those who have not bothered to acquire additional skills will face tough questions.
The performance appraisal season that begins from end of February and ends by mid-March looks into the achievements of the individual employees in companies in comparison to how their peers have performed as well as how the business is functioning. “Companies do not have the cost advantage to go lax on employees who have not been performing as per the required matrix and will no longer be able to keep retaining them,” said the deputy HR head of an IT firm.
Exclusive: Former Corporate Affairs Secretary Tapan Ray in line to be next Irda chairman
Former Corporate Affairs Secretary Tapan Ray is said to be in race for the Insurance Regulatory and Development and Authority of India chairman’s post, sources told Moneycontrol News’ M Saraswathy. The insurance regulatory body’s chief post fell vacant on February 21 after TS Vijayan retired. Ray is a Gujarat cadre IAS officer who was also given the additional charge as interim Economic Affairs Secretary after Shantikanta Das had retired. He has also served as joint secretary in Department of Defence.
PNB fraud: ED seizes Rs 94cr assets, luxury cars of Nirav Modi, Choksi
The Enforcement Directorate said it has frozen mutual funds and shares worth Rs 94.52 crore of the Nirav Modi and Mehul Choksi groups in connection with a money laundering probe against them in the Rs 11,400-crore alleged fraud at the Punjab National Bank (PNB), reports PTI. It also seized nine high-end luxury cars of Modi as part of its investigation against him under the criminal provisions of the Prevention of Money Laundering Act (PMLA).
Agency officials said it froze mutual funds and shares worth Rs 86.72 crore belong to Choksi and his group, and the rest are owned by the Modi group. The central probe agency also seized nine costly cars of Modi, recovered by it during raids last week. These include a Rolls Royce Ghost, a Mercedes Benz, a Porsche Panamera, three Honda variants, a Toyota Fortuner and an Innova.
Pawan Hans disinvestment finds no takers, fresh bids in '2 to 3 months'
The government is likely to call for fresh bids for the disinvestment of Pawan Hans in the next "two to three months" after an attempt to sell its entire 51% stake in the chopper company didn't find many takers, reports PTI. Last year, the government had invited bids from private companies, including foreign ones, to buy out its stake along with management control in helicopter service operator Pawan Hans (PHL).
The chopper company is a 51:49 joint venture between the Civil Aviation Ministry and oil behemoth ONGC. Civil Aviation Minister Ashok Gajapathi Raju said that during the bidding process, there was effectively only one bid. "I understand there is only one entity that qualified, which is effectively a single tender," Raju said.
Pepperfry eyes first profit, Rs 2,000cr topline in 2019
Pepperfry.com, the country's largest furniture and home products marketplace, hopes to turn profitable next year with a gross merchandise value (GMV) of Rs 2,000 crore, as it plans an aggressive expansion in its offerings as well as in physical footprint, reports PTI. The six-year-old marketplace, which also sells other brands like Hometown, Godrej and Neelkamal among others, apart from its own private labels, has set a target of Rs 1,400 crore of GMV this year.
Goldman Sachs cuts price targets for PSU banks post fraud
Goldman Sachs has cut its earnings forecasts and price targets for three of India’s state-run lenders, post detection of the Rs 11,400 crore fraud at Punjab National Bank, reports Bloomberg. It has lowered FY18’s earnings estimate for State Bank of India by 1%, Bank of Baroda by 12% and PNB by 30%, even after taking into account the first tranche of Prime Minister Narendra Modi’s $33 billion recapitalisation plan in their forecasts. Estimates for 2019 and 2020 were also reduced by similar amounts.
Potential risk aversion and a greater focus on operational controls after the fraud may hamper growth in the near term, the analysts wrote in a note to clients on Wednesday. “We lower our EPS estimates for SBI/BoB largely on the back of share dilution,” they said. “On PNB, we see a larger EPS decline as we lower growth after baking in the full impact of the fraud-related liability.” Still, despite the cuts, Goldman sees upside for state-bank shareholders. Its new price targets offer upside of between 12% and 29%.
PNB scam effect: PSU banks start linking all processes to core banking solutions
Tremors of last week’s Rs 11,400 crore scam at Punjab National Bank seem to have trickled down to other banks as well. Top management of several public sector banks have begun conducting reviews, and taking steps to centralise all processes linking them to core banking solutions (CBS), reports Moneycontrol News’ Beena Parmar. This will help reduce the operational risks that led to the scam at PNB, said bankers of several public sector banks.
US students protest gun laws, Trump considers arming teachers
Students galvanised by the deadly mass shooting at a Florida high school confronted lawmakers on Wednesday with demands to restrict sales of assault rifles, while President Donald Trump suggested arming teachers as a way to stop more US rampages, reports Reuters.
The unprecedented lobbying effort by groups of teenagers and parents at the White House and at the Florida statehouse in Tallahassee played out as fellow students staged classroom walkouts and rallies in cities across the country. Trump, in an emotional hour-long meeting with students who survived the Florida shooting and a parent whose child did not, said arming teachers and other school staff could help prevent future mass shootings, voicing support for an idea backed by the powerful National Rifle Association gun lobby.
NPPA not to stop withdrawal of stents from market
Drug price regulator NPPA has decided not to stop any coronary stent manufacturer from withdrawing products from the Indian market, reports PTI. The National Pharmaceutical Pricing Authority (NPPA) said however that the companies will have to follow mandatory requirement of informing it six months in advance as prescribed under Drugs Prices Control Order (DPCO), 2013, while also following the ceiling price.
At last, a woman takes centre stage at Nasscom
In a sign of the times, the organisation that speaks for and champions India’s $167 billion IT services industry will soon get its first female head, reports Bloomberg. Intel Corp veteran Debjani Ghosh takes over as president of the National Association of Software and Services Companies (Nasscom) in April - three decades after its formation. After a two-decade career at the US chipmaker, most recently as managing director for South Asia, Ghosh will lead the trade body.
Ghosh promises to advocate for women in a workplace that remains male-dominated. Her appointment underscores how the local industry is waking up to a gender imbalance that plagues the global technology sector, starting with its epicentre of Silicon Valley, and has resulted in harassment and discrimination at all levels. Ghosh, also an angel investor in a number of startups, argued that changes in the executive suite and mindsets are needed for a level playing field.
FDI rises only 0.27% during Apr-Dec FY18
Foreign direct investment (FDI) in the country grew by a meagre 0.27% to $35.94 billion during the first nine months of the current fiscal, as per data from the Department of Industrial Policy and Promotion (DIPP). FDI inflows were $35.84 billion during the April-December period of last fiscal, 2016-17.
In rupee terms, however, FDI recorded a negative growth -- inflows dipped by 4% to Rs 231,457 crore. The major sectors which attracted overseas inflows during the period include services ($4.62 billion), telecommunications ($6.13 billion), computer software and hardware ($5.15 billion) and construction activities ($2.5 billion).
Bulk of the FDI came in from Singapore, Mauritius, the Netherlands and Japan. In the nine months period of the current financial year, India received a maximum of $13.34 billion investments from Mauritius. It was followed by Singapore ($9.21 billion) and Netherlands ($2.38 billion).
EPFO lowers int rate to 8.55% for FY18, workers threshold for coverage cut to 10
Retirement fund body EPFO has lowered the rate of interest on employees provident fund to 8.55% for its over six-crore subscribers for 2017-18, from 8.65% in the previous fiscal, reports PTI. Labour Minister Santosh Gangwar said after the Employees' Provident Fund Organisation's (EPFO) trustees meet on Wednesday said the EPFO has liquidated portion of its investments in the exchange traded funds (ETFs) to bridge the gap to provide 8.55% interest this fiscal.
He said the EPFO received 8% returns on its bond investments but it is able to pay 8.55% rate because it has sold some of its investments in ETFs. “The ETF investments have fetched a return of 20.65% so far, and in the months of January and February this year, the EPFO has sold Rs 3,700 crore ETFs which earned a return of Rs 1,011 crore.” The EPFO has invested around Rs 44,000 crore so far in the ETFs. It had started investing in ETFs in August 2015.
On the administrative charges, he said the EPFO's apex decision making body Central Board of Trustees has decided to reduce the administrative charges from 0.65% to 0.5% of total wages which are paid by employers. The minister also said the trust has also decided to reduce the workers threshold for coverage under the EPFO schemes to 10 from the existing 20.
Bajaj Finserv, Grasim, Titan to debut on Nifty50 from April 2
Bajaj Finserv, Grasim Industries and Titan will be added to the Nifty50 with effect from April 2. Likewise, the existing three stocks - Ambuja Cements, Aurobindo Pharma and Bosch - will be excluded from the benchmark with effect from April 2.
Govt should privatise national banks, says Adi Godrej
Godrej Group Chairman Adi Godrej said the government should privatise public sector banks to ensure better management in the wake of PNB fraud case. The Godrej group patriarch also said privatisation should not be restricted to only banks but also include other public sector enterprises.
"First of all, I don't think so many banks (needed) in the public sector. I think, we are too big a public sector in our country and I believe that they should privatise it," Adi Godrej said. According to him, private banks are better managed and so far no big scams have come up so far in that sector. "I have not heard of any major scams by the private bank. There is always something wrong going in companies from time to time but it's always more controlled in the private sector if at all and much better managed," Godrej said.
Rotomac bank fraud: I-T attaches assets in Kanpur, Ahmedabad
The Income Tax Department on Wednesday said it has attached four immovable assets of the Rotomac Group and its promoters in connection with an alleged tax evasion probe against them, reports PTI. They said the properties, three in Kanpur and one in Ahmedabad, were provisionally attached.
CBI seals Nirav Modi's farmhouse in Alibaug
The Central Bureau of Investigation on Wednesday sealed a luxury property of billionaire Nirav Modi in Alibaug area near Mumbai, officials told PTI. The 1.5 acre farm house in the uber rich neighbourhood at a stone's throw distance from Arabian sea was purchased by Modi in 2004 for Rs 32 crore for hosting special parties for his clientele to show case his precious jewellery collection, they said. The "haut diamantaire's" expansive farm house, located about 100 km by road from Mumbai in Raigad district also has a 12,000 sq ft bungalow with five bedrooms, a large swimming pool, a movie theatre and a library, they said.
PNB fraud: ED raids shell firms; I-T attaches Rs 145cr assets
The Enforcement Directorate (ED) continued with its raids for the seventh day as it visited 17 locations across the country, including four shell companies in Mumbai, even as the I-T department attached assets worth Rs 145 crore in the alleged Rs 11,400-crore Punjab National Bank (PNB) fraud, reports PTI.
While the ED seized assets worth Rs 10 crore on Wednesday, the tax department said it has attached a total of 141 bank accounts and fixed deposits worth Rs 145.74 crore of the Nirav Modi group. The department said it has attached these assets to realise outstanding tax demands. With Wednesday's seizure, the total value of gems and gold jewellery seized by the ED stands at Rs 5,736 crore. The agency has said it is carrying out an "independent valuation" of these seized assets.
Maha dams have 52% water stock, worry looms over Vidarbha
Dams in Maharashtra have 52% water stock of their capacity, which is 2% higher compared to the corresponding period last year, a Water Resources department official said. "Dams in the state have 761 TMC water as on Wednesday, which is 52.83% (of their capacity). There are 3,246 dams of various size across the state that have a total water storage of 1,338 TMC (thousand million cubic feet)," he said.
The storage of water in dams was 74.47% at the end of September last year, the official said. The monsoon in Maharashtra generally gets over by September. "In February last year, the total water stock was 50%," the official said.
India successfully conducts night trial of Prithvi-II missile
India on Wednesday successfully conducted a night trial of its indigenously developed nuclear capable Prithvi-II missile with a strike range of 350 km, from a test range in Odisha, reports PTI. The surface-to-surface missile was test-fired from a mobile launcher from launch complex-3 of the Integrated Test Range at Chandipur around 8.30 pm, as part of a user trial by the Army, defence sources said.
The state-of-the-art Prithvi-II missile is capable of carrying 500 to 1,000 kg of warheads and is thrusted by liquid propulsion twin engines. The sophisticated missile, which has a strike range of 350 km, uses advanced inertial guidance system with manoeuvring trajectory to hit its target, they said.
Indian firms lost $500K to cyber attacks in 1.5 years, says Cisco
Cyber attacks in the country caused financial damages to the tune of about $500,000 to India companies in the last 12-18 months, says a study. "...more than half of all attacks resulted in financial damages of more than $500,000, including, but not limited to, lost revenue, customers, opportunities, and out-of-pocket costs," the technology firm Cisco 2018 Annual Cybersecurity report said. The report said that security is getting more complex and scope of breaches is expanding.
Kamal
Haasansays his party will be "free of games of caste, religion"Launching his political party, actor Kamal Haasan said his outfit was committed to politics free from "games of caste and religion" and would focus on good governance, reports PTI. In his launch address, Haasan touched upon key issues concerning Tamil Nadu including the Cauvery river water dispute, alleged corruption and vote for money.
Haasan christened his party "Makkal Needhi Mayyam," and unfurled its flag that symbolises the strength of unity. On the symbolism behind the flag, he said: "If you look closer you can find the map of south India map in it, the six hands refer to six southern states..the star at the centre refers to the people..."
The party's name roughly translates to "Centre for People's Justice." Outlining his party's policies, he said his outfit was committed to a politics free from "games of caste and religion," quality education for all sections of people and good governance sans corruption. He said ending corruption was the responsibility of all and not just his.
PNB fraud: Vipul Ambani and 5 others in CBI custody till Mar 5
A special court in Mumbai on Wednesday remanded Vipul Ambani, the president (finance) of Nirav Modi's Fire Star Diamond, and five others in CBI custody till March 5 in connection with the Rs 11,400 crore alleged fraud in Punjab National Bank (PNB). The six were arrested on Tuesday in connection with two FIRs registered by the CBI involving Modi and his uncle Mehul Choksi, the owner of Gitanjali Gems.
