1. Infosys: Vishal Sikka, Narayana Murthy Factions Headed For All-Out War
Infosys Ltd appears to be headed for an all-out war between two warring factions, one jointly led by chief executive officer Vishal Sikka and chairman R Seshasayee, and the other led by founder NR Narayana Murthy as the board holds a press conference in Mumbai on Monday.
Sikka and Seshasayee, along with board members, will hold a press conference, in a show of strength, after Murthy publicly expressed his displeasure with some of the decisions taken by Seshasayee.
The two are also expected to show letters of support from large investors having confidence in the current management and board, after Murthy questioned some of the decisions taken by the board in the last 10 months, terming them corporate governance lapses.
(Source: Livemint)
2. Andhra Bank ‘Duped’ of Rs 71 Crore: CBI Files Case Against Chennai Firm
Based on a complaint from Andhra Bank, the Central Bureau of Investigation (CBI) has registered a cheating case against electrical equipment manufacturer Best and Crompton Engineering Projects Ltd. The CBI FIR alleges that the firm has cheated the bank to the tune of Rs 71 crore.
The FIR names the Chennai-based company and its five directors, including managing director Kakulamarri Srinivas Kalyan Rao and has slapped charges under IPC sections pertaining to criminal conspiracy, cheating and forgery, among others.
(Source: The Indian Express)
3. New Aviation Player: Zoom Air to Start Commercial Operations From 15 February
Zoom Air, which received the schedule operating permit from the Directorate General of Civil Aviation on 3 February, launched its inaugural flight from Delhi to Durgapur on Sunday. The company which is currently operating with one 50-seater regional jet Bombardier CRJ-200LR, plans to add four more planes by May.
The airline will start daily scheduled operations from 15 February on Delhi-Kolkata-Durgapur-Delhi route, which will be extended to Amritsar in the afternoon. A Delhi-Surat-Bhavnagar-Delhi flight will start in a couple of months.
The airline has been funded with Rs 20 crores paid up equity. We plan to put in another Rs 20 crores during the year to expand operations. It’s a debt free company.Koustav M Dhar, CEO and director, Zoom Air
(Source: The Indian Express)
4. Jugnoo Launches Taxi Service
SoCoMo Technologies Pvt Ltd, which runs online autorickshaw aggregator Jugnoo, launched cab services on Sunday, entering a segment dominated by companies such as Ola (ANI Technologies Pvt Ltd) and Uber Technologies Inc.
The service, Jugnoo Cabs, is currently available in Gurgaon, and will be expanded to other cities, the company said.
Jugnoo’s entry into the online taxi-hailing space was anticipated after it acquired cab booking platform BookMyCab in July 2015. Before its takeover, BookMyCab operated a fleet of 2,000 cabs in Delhi, Mumbai and Kolkata.
(Source: Livemint)
5. RBI Governor Urjit Patel Nudges Banks to Reduce Lending Rates
The Reserve Bank of India (RBI) governor Urjit Patel on Saturday exhorted banks to reduce their lending rates to push credit demand in laggard segments, saying banks have benefited from influx of low-cost deposits and its previous repo rate cuts.
He also signalled that further rate cuts will depend on bringing down retail inflation on a durable basis, especially the non-food and non-fuel inflation.
(Source: Livemint)
6. Pay More to Fly! Airfares Set to Soar on Costlier Jet Fuel
India’s delicately balanced current account wouldn’t be the only major casualty of costlier crude oil: Local travelers now have to pay more to fly within the country as expensive jet fuel propels airlines to raise domestic fares that had tracked global energy prices to plunge to record lows last year.
Higher consumer fares in January reflect the persistent rise in aviation-fuel prices, which increased 8 percent on-month in November at the New Delhi airport, the country’s busiest. After a brief lull in December, prices firmed in January and February, breaching the levels of 2015 when the cycle of declines began.
(Source: Economic Times)
7. Chidambaram Asks Jaitley to Cut Indirect Taxes Immediately
Former finance minister P Chidambaram, who feels the Union Budget for 2017-18 is "aimless and directionless", says the government should immediately cut indirect taxes across the board to revive the sagging economy.
Demonetisation, he said, damaged India's GDP growth in 2016-17 and fears that its shadow will fall on 2017-18 and some parts of 2018-19.
He also said lack of creation of jobs for the youth is a powder keg and a small spark can lead to a large explosion. Resentment may not be visible but it can be a "silent killer".
(Source: Economic Times)
8. ONGC’s $2.4-bn Mozambique Deal Under Oil Ministry Scanner
ONGC’s USD 2.475 billion purchase of Videocon Group’s 10 percent stake in a giant Mozambique gas field has come under the Oil Ministry’s scanner following allegations that the PSU may have overpaid about US$ 200 million, charges that the company vehemently denied.
ONGC Videsh Ltd, the overseas arm of state-owned Oil and Natural Gas Corp (ONGC), had in June 2013 bought 10 per cent stake in the Offshore Area 1 from Videocon Group for US$ 2.475 billion. This stake was later divided between OVL and Oil India Ltd in 60:40 ratio.
The deal has now come under Oil Ministry’s scanner following allegations that OVL might have overpaid Videocon.
Government officials said the ministry has over the past few months asked the company to provide several details of the deal including the basis of the valuation.
(Source: The Hindu Business Line)
9. Corporate Bond Trades Hit Record Rs 12 Lakh crore in April-January
Trading in corporate debt at stock exchanges hit a record Rs. 11.70 lakh crore during the first 10 months of the current fiscal.
The amount during the first nine months of fiscal 2016-17 is 40 per cent more than debt transactions witnessed in the same period year-ago and is the highest for the given period in nine years (since 2007-08), said latest data released by the Securities and Exchange Board of India (SEBI).
NSE represented the largest share of trading in corporate bonds at about 81 per cent during the first 10 months of the current fiscal.
Bonds worth Rs. 9.46 lakh crore were traded on the exchange, compared to Rs. 6.57 lakh in the same period last fiscal. Bonds amounting to Rs. 2.24 lakh crore were traded on the BSE, as against Rs. 1.75 lakh crore in the preceding year.
(Source: The Hindu Business Line)
(At The Quint, we are answerable only to our audience. Play an active role in shaping our journalism by becoming a member. Because the truth is worth it.)