You can have a look at latest industry news from around the world here. We organize various activities and events which are highlighted here. We are regularly updating all the visitors on our website with latest news and events.
TCS net profit rose 3.4% to $1.1 bn in the Sept quarter from $1.08 bn in the preceding three months, while operating margin jumped 150 basis points to 26.5% from 25% in the April-June period
Tata Consultancy Services Ltd (TCS) kicked off the fiscal second-quarter earnings season by reporting its fastest sequential growth in over four years.
In constant currency terms, TCS's September quarter revenue rose 3.7% from the preceding three months. It grew 10% from a year earlier. Currency fluctuations, however, took some sheen off the company's growth as dollar revenue increased at a slower 3.2% pace to $5.21 billion in the quarter ended 30 September from the preceding three months.
Net profit rose 3.4% to $1.1 billion in the September quarter from $1.08 billion in the preceding three months, while operating margin jumped 150 basis points to 26.5% from 25% in the April-June period.
The six-member monetary policy committee led by Governor Urjit Patel voted 5-1 to keep the repo rate at 6.50%.
India's monetary policy committee surprised markets by keeping interest rates unchanged, as it awaits for greater clarity on the evolving growth-inflation scenario in the economy. The six-member panel, however, changed its stance from 'neutral' to 'calibrated tightening', suggesting more rate hikes lie ahead.
Separately and importantly, in a measure which seemed to be aimed at curbing currency volatility, the Reserve Bank of India proposed a 'voluntary retention scheme' for foreign portfolio investors. The scheme offers increased investment flexibility to investors who choose to retain a portion of their investments in India for a time period of their choosing.(Source : Bloomberg)
Chanda Kochhar has quit as CEO of ICICI Bank with immediate effect. The private lender has appointed Sandeep Bakhshi as managing director & chief executive officer for five years
Facing enquiry over charges of conflict of interest, ICICI Bank managing director and CEO Chanda Kochhar today quit the bank. India's third largest lender by assets, ICICI Bank Ltd, has appointed Sandeep Bakhshi as chief executive for a term of five years, replacing Chanda Kochhar, who sought early retirement, the bank said today. The former head of the bank's life insurance arm, Bakhshi took the helm on an interim basis in June, when Kochhar went on leave during an inquiry into an alleged conflict of interest that triggered months of controversy.
"The enquiry instituted by the board will remain unaffected by this and certain benefits will be subject to the outcome." the bank said in a statement after a board meeting. Kochhar, 56, who had headed ICICI Bank since May 2009, is also stepping down from the board of directors of its units, the bank added. Bakhshi will lead ICICI for five years, subject to regulatory approval, while other conditions of his appointment remain unchanged, the bank said. (Source : Mint)
The central bank placed some restrictions on Bandhan Bank Ltd's operations as one of India's youngest lenders failed to lower promoter holding within the cap prescribed by the regulator.
The Reserve Bank of India stopped Bandhan Bank from opening new branches unless it takes its approval each time, the microlender-turned-universal bank informed exchanges. The RBI also froze the remuneration to Managing Director and Chief Executive Officer Chandra Shekhar Ghosh at the current level till further notice.
Bandhan Bank was unable to bring down the shareholding of the non-operative financial holding company to 40 percent within three years of starting operations. The condition was mentioned in the RBI's February 2013 licensing guidelines. The bank was granted in-principle approval in April 2014 and began operations a few months later.
Moreover, it has to lower the holding company's stake to 20 percent within 10 years of starting the business and to 15 percent within 12 years.
Bandhan Bank is the second lender to face RBI action over promoter holding. The regulator last month rejected the tool used by the Kotak Mahindra Bank to reduce promoter Uday Kotak's stake within the RBI-mandated limits. The bank decided to issue perpetual non-cumulative preference shares to bring down his holding to 20 percent of the paid-up equity capital. Yet, the stake would have stayed at 30 percent of post-equity issue capital. The RBI has mandated Kotak to pare holding to 20 percent by December this year and 15 percent by March 2020.(Source : Bloomberg)
The Reserve Bank of India on Thursday allowed banks to dip further into statutory cash reserves in a bid to ease a liquidity squeeze afflicting the nation's money markets.
RBI in a statement said banks could 'carve out' up to 15 per cent of holdings under the statutory liquidity reserves to meet their liquidity coverage ratio (LCR) requirements as compared to 13 per cent now.
This resulted from a rise in the facility to avail funds for LCR to 13 per cent from 11 per cent, effective October 1, RBI said in a statement.
The move by the central bank follows concerns over tight liquidity conditions and banks' unwillingness to lend to NBFCs.
RBI said it "stands ready to meet the durable liquidity requirements of the system through various available instruments depending on its dynamic assessment of the evolving liquidity and market conditions." (Source : Business Today)
India's largest state-run insurer, Life Insurance Corporation (LIC), will not allow the country's beleaguered Infrastructure Leasing & Financial Services (IL&FS) to collapse, LIC Chairman V.K. Sharma told reporters on Tuesday.
All options, including increasing LIC's stake in IL&FS, are open, Sharma said.
IL&FS has revealed a series of delays and defaults on its debt obligations and inter-corporate deposits in recent days. For the third time in a month, crippled infrastructure conglomerate IL&FS Financial Services Monday defaulted on interest payments on commercial papers, PTI reported on Monday.
The interest payment on the papers were due Monday, the company informed the exchanges. The company said it will not be able to access commercial papers market for up to six months from the date of repayment of this obligation. The company did not quantify the default amount.
Meanwhile, a finance ministry official said that cutting bank's cash reserve ratio (CRR), or the amount of funds they set aside with the central bank, are among options that the Reserve Bank of India (RBI) could look at to improve liquidity in the system.
The central bank could also consider buying more bonds from the open market and open a special window for mutual funds to inject liquidity, the official told reporters, declining to be identified as the discussions are not public. Presently, the CRR is at 4 percent of bank's total deposits.(Source : Mint)
Finance minister Arun Jaitley on Friday night announced a series of measures to boost market confidence, curb the widening current account deficit and stabilize the rupee after a marathon meeting with Prime Minister Narendra Modi to discuss the nation's economy.
Jaitley said five decisions have been taken to address the issue of the current account deficit, which touched 2.4% of gross domestic product in the June quarter. Mandatory hedging conditions for infrastructure loans through the external commercial borrowing (ECB) route will be reviewed and a 20% exposure limit on investments by foreign portfolio investors in debt to a single corporate group will be removed.
Government will permit the manufacturing sector to access ECBs up to $50 million with residual maturity of one year instead of three years. Masala bonds will be exempted from withholding tax this financial year and Indian banks will be allowed to become market makers in masala bonds including by underwriting.
In addition, "government will take efforts to reduce non-essential imports," Jaitley said against the backdrop of India's rising trade deficit which stood at $17.4 billion in August.(Source : Mint)
India's economy accelerated to 8.2% in the April-June quarter of 2018-19 due to a pick up in manufacturing activity, helped by a lower base during the same period a year ago. Economic growth had dipped to 5.6% in the June 2017 quarter due to destocking by companies ahead of the implementation of the Goods and Services Tax from July that year.
In an update to its World Economic Outlook (WEO), IMF trimmed India's growth projection for 2018-19 by 10 basis points to 7.3%, citing negative effects of higher crude oil prices on domestic demand and faster-than-anticipated monetary policy tightening due to higher-than expected inflation.
The Bank also said India's $2.6 trillion economy surpassed France's in 2017 to be the world's sixth largest, and it was not far before the UK.
GDP growth for the year ended 31 March at 6.7% was a tad higher than previously estimated by the Central Statistics Office but still slower than the 7.1% growth recorded in the previous year.
On Wednesday, the Reserve Bank of India said economic growth was expected to accelerate to 7.4% in the current fiscal, from 6.7% the previous one, despite risks posed by higher oil prices and global trade tensions.(Source : Mint).
India's largest insurer Life Insurance Corporation (LIC) of India Ltd will purchase 14.9 percent equity stake in IDBI Bank, as a first step towards taking majority ownership in the lender.
LIC has given "in principle approval for subscription of the equity shares on preferential basis subject to their total exposure not exceeding 14.90 percent of post issue capital of IDBI Bank at any point of time...", the bank said in a stock exchange notification on Tuesday. The state-owned lender will approach its shareholders for an approval on this deal on August 31, the notification said.
According to B Sriram, managing director of IDBI Bank, this is the first tranche of the deal between LIC and IDBI Bank.
The government had earlier approved a transfer of 51 percent majority ownership in IDBI Bank to LIC. However, for LIC to increase stake in the bank beyond 15 percent, approvals are needed from the insurance regulator. Also the Reserve Bank of India's approval is needed for the transfer of majority ownership to LIC. (Source : Bloomberg).
Public sector banks may end up taking a 60-70% haircut on loans given to power companies.
The Allahabad High Court on Monday refused to grant interim relief to power companies, which had filed pleas against the Reserve Bank of India (RBI) regulations on stressed assets, CNBC-TV18 reported. Public sector banks may end up taking a haircut of 60-70% on loans given to power companies.
The Reserve Bank of India (RBI), in its 12 February circular, tightened norms for settling bad debt by setting timelines for resolving non-performing assets (NPAs). It allowed lenders to initiate insolvency proceedings against defaulting companies. Although banks were given several options to arrive at a resolution plan, they had 180 days to do so. The central bank also introduced the concept of a one-day default under which banks have to identify incipient stress even when repayments are overdue by a day.
The Allahabad High Court had earlier ordered lenders to avoid acting against power producers after they sought relief against the RBI's new stress resolution norms. Also, in a relief to power producers, the Supreme Court had refused to stop Allahabad High Court from hearing these petitions.(Source : Mint).
The National Company Law Appellate Tribunal today declined to pass an interim order on Cyrus Mistry's plea against the conversion of Tata Sons Ltd. to a private limited company.
But the two-judge bench headed by NCLAT Chairperson Justice SJ Mukhopadhyay asked Tata Sons not to take steps on the sale of minority shareholders stake until the appellate tribunal decided on Mistry's plea alleging oppression by the group holding company.
The NCLAT will start hearing arguments on Mistry's appeal against the National Company Law Tribunal order that removed him as Chairman of Tata Sons on Sept. 24.
Mistry was represented by Senior Advocate CA Sundaram who had argued that there was no urgent reason for this conversion and it should be stopped until Mistry's plea against his removal is decided by the NCLAT.
Senior Advocate Abhishek Manu Singhvi, who represented Tata Sons, had informed the court that the Registrar of Companies had recognised Tata Sons as a private limited company on Aug. 6.(Source : Bloomberg).
Anil Ambani-led Reliance Communications Ltd clinched the approval of its overseas bondholders to ease the carrier's debt burden, putting the company a step closer to averting bankruptcy. The operator, which defaulted last year on a $300-million bond, got 83% of bondholders to approve the plan, the company said in an exchange filing.
"Reliance Communications bondholders approved the tender and exchange offer of $300 million bonds with an overwhelming majority of over 83%, at their meeting held today, 24 August 2018, in London. "RCom said in a statement. Following the offer, bondholders will receive cash proceeds of up to $118 million. "Bondholders will also get $55 million bonds to be issued by Global Cloud Xchange Ltd (holding company of GCX), a foreign subsidiary of RCom." the statement added. The Global Cloud Xchange bonds will be unsecured and will carry a coupon of 0.1% with maturity of four years, it added (Source : Mint)
L&T will buy back up to 60 million shares, at a premium of more than 13% over Tuesday's share price, aggregating up to 4.29% of paid-up equity capital.
Larsen & Toubro Ltd. will buy back as much as Rs 9,000 crore of its shares, in a first for the country's largest construction and engineering company.
The company will repurchase 6 crore shares (or 4.3 percent of equity) at Rs 1,500 a piece, according to its stock exchange notification today. The price is higher than the stock's all-time high of Rs 1,470 it clocked on Feb. 01. (Source : Bloomberg)
Jet Airways India Ltd., the carrier that deferred earnings this month pending endorsement of its books by auditors, said it's unaware of any probe initiated by government authorities after a report said the company is under scrutiny for alleged embezzlement of funds.
The Registrar of Companies, which is under the Ministry of Corporate Affairs, has started an initial inquiry into potential wrongdoings such as diversion of cash, and will also look at the role of auditors, people familiar with the matter said, asking not to be identified citing government rules. The examination is only preliminary, and it may turn into a formal probe upon any evidence, one of them said.
Jet Airways "has not received any communication from the Ministry of Corporate Affairs in this regard," it said in a statement to the stock exchange Tuesday.
In a letter sent to ONGC last week, the government did not state how much of ONGC Videsh stake should be offered to outside investors.
The government has asked its biggest state-owned firm Oil and Natural Gas Corp. Ltd (ONGC) to list its overseas unit ONGC Videsh Ltd, according to a letter seen by Reuters. The move to float the unit which has investments in 11 producing assets in countries including Russia, Brazil and Iran is part of a government push to sell state-assets to raise funds.
A listing would also help unlock value in the unit by improving its corporate governance and efficiency, the letter from the Department of Investment and Public Asset Management to ONGC said. The letter, sent last week, did not state how much of ONGC should be offered to outside investors.The letter said any state-owned firm with a positive net worth and no accumulated loss should be listed to unlock value. The listing would help the government meet its divestment targets and make up for a failed plan earlier this year to sell a stake in Air India.(Source : Mint).
The Securities and Exchange Board of India (Sebi) is planning to limit investor's exposure to shares and equity derivatives in line with their net worth, said three people with knowledge of the development. The move is aimed at preventing individuals from going overboard on equity investments, considered riskier than bonds.
The proposal is similar to the concept of accredited investors in some developed markets. An accredited investor is one who meets requirements regarding income, net worth, asset size, governance status or professional experience. The US regulator has adopted requirements for accredited investors to protect those who may be unable to sustain the economic risk of investing in unregistered securities. The proposal, if implemented, could impact a number of equity investors. (Source : Economic Times)
Paresh Sukthankar, deputy managing director and a member of the founding team at HDFC Bank Ltd, has resigned.
In a notification to stock exchanges, the bank said that Sukthankar has tendered his resignation as Deputy Managing Director, to be effective 90 days from the close of business hours on Friday.
Sukthankar's resignation comes as a surprise as he was considered one of the front-runners to succeed MD and chief executive officer (CEO) Aditya Puri, who is set to retire in October 2020.
The Securities and Exchange Board of India (Sebi) on Friday said its new guidelines do not bar investors from holding shares in the physical form even after December 5. The clarification comes after the market regulator received several calls concerning the applicability of its directive. The regulator had said in July that the transfer of shares of listed companies had to be in the dematerialised mode from December 5.
"The new amendment does not prohibit investors from holding shares in the physical form. Investors have the option of holding shares in the physical form even after December 5, 2018." Sebi said in a statement. The new rule does not apply to transfer of title of shares by way of inheritance or succession and interchanging of the order of the name of shareholders.
Besides, the regulator said any investor desirous of transferring shares held in the physical form after December 5 can do so only after the shares are dematerialised. Shares in the demat form will help in having a transparent record of shareholding at companies amid rising concerns over beneficial ownership of entities.(Source : Mint)
India's biggest IT services company TCS has announced 18 August, 2018, as the record date for buyback of shares. TCS shareholders will be able to participate in the buyback, if they holds shares in their demat accounts as on the record date.
A buyback is a mechanism through which a company repurchases a specific amount of its outstanding shares. Buybacks help to improve the earnings per share and return on equity. "We would like to inform you that the promoter and promoter group of the company have communicated their intention to participate in the proposed buyback" TCS had said in a BSE filing.
The buyback will take place through the tender route, in which TCS will accept shares on a proportionate basis during the buyback period. According to Sebi's mandate, companies have to reserve 15% of any buyback for small shareholders with holdings of less than Rs 2 lakh. This will increase the acceptance ratio for TCS retail investors who want to participate in the buyback offer.(Source : Mint)