1. UIDAI Begins Probe on Breach of Aadhaar Database, Initiates FIR
The Unique Identification Authority of India has begun investigations into a report that claimed access to its database of identity details of more than a billion citizens was being sold for just Rs 500 on social media.
The report in The Tribune had said the paper was able to buy login credentials to the Aadhaar database, allowing it to access information such as the names, telephone numbers and addresses of millions of people. The paper said it bought access from someone on a WhatsApp group.
The authority said the case appeared to be an instance of misuse of the grievance redress search facility. “Legal action, including lodging of FIR against the persons involved in the case, is being pursued,” the UIDAI said, while ensuring there had not been any breach of the biometric database.
Source: Business Standard
2. Dow Jones Breaks Above 25,000 for the First Time
The Dow Jones Industrial Average broke above the 25,000 level for the first time on Thursday and other major indexes scaled new heights after strong US private jobs data added to upbeat sentiment following indications of robust growth globally.
The 30-member blue-chip index crossed five 1,000-point marks in 2017, driven partly by President Donald Trump's pro-growth agenda and solid corporate earnings.
The momentum carried into 2018, with the benchmark S&P index closing above 2,700 for the first time on Wednesday and the Nasdaq settling above 7,000 a day earlier.
Source: Economic Times
3. You May Have to Pay up to 13% More to Fly
Flyers in India should brace for a fare hike this year. Rising fuel prices and an increase in cost of operations due to the Goods and Services Tax could result in airlines raising fares by about 13 percent.
The cost of operations for carriers has gone up 27 percent after GST was introduced in July. Jet fuel is currently out of the purview of GST.
India's aviation market, the fastest growing in the world, has boomed primarily on the back of low fares and capacity added by airlines including Indigo, SpiceJet, Jet Airways and Air India. The likely fare increase would mainly be on tickets bought at the last minute.
Source: Economic Times
4. Idea Cellular Looks to Raise Rs 6,750 Crore Before Merger With Vodafone India
Promoters of Idea Cellular Ltd will invest Rs 3,250 crore and the company plans to raise a similar amount to strengthen its balance sheet amid intense competition and before a planned merger with Vodafone India Ltd.
The board constituted a panel to evaluate ways to raise an additional Rs 3,500 crore, a company statement said on Thursday. Following the equity infusion by Idea’s promoters, their stake in India’s third largest telecom operator will rise to 47.2% from 42.4% now. Vodafone India’s parent also plans to invest nearly Rs 9,350 crore as part of the merger conditions.
The proposed capital raising by Idea, the sale of its standalone towers to American Tower Corp. and the potential sale of its 11.15% stake in Indus Towers Ltd will augment the firm’s long-term capital resources, Idea said in the statement.
Source: Livemint
5. IOB To Wipe Out Nearly Rs 7,000 Crore In Accumulated Losses
Indian Overseas Bank, which has seen more than a fifth of its loans go bad, has decided to wipe out its accumulated losses as it tries to make a fresh start.
In a notice to the stock exchanges, IOB said that its board has approved the utilisation of “the balance available in the share premium account amounting to Rs 7,650.06 crore as at 31.3.2017 to write off accumulated losses of the bank aggregating to Rs 6,978.94 crore ...” This, the bank added, would help present a true and fair picture of the bank’s accounts.
The board decision will now be put to vote at an extraordinary general meeting on Jan. 30.
After rapid growth between 2010-2013, IOB has seen bad loans and losses surge. As of the end of the September 2017 quarter, the bank had a gross non-performing ratio of 22.73 percent. For the second quarter of the current financial year, the bank reported a loss of Rs 1,222 crore. The bank has been under the Reserve Bank of India’s Prompt Corrective Action Framework since the October 2015 quarter.
Source: BloombergQuint
6. Govt to Launch New Savings Bonds With 7.75% Interest
The government on Thursday announced the launch of new savings bonds, which will bear an interest of 7.75% and mature in seven years.
Eligible investors such as individual and Hindu Undivided Families can buy 7.75% Savings (Taxable) Bonds, 2018 from 10 January, a government release said. There is no maximum ceiling for investment into these bonds. The minimum issuance amount for these bonds is Rs 1,000. Accordingly, the cumulative value of the Rs 1,000 investment will be Rs 1,703 at the end of seven years.
The interest of 7.75% per annum will be paid semi-annually.
Interest on these bonds will be taxable under the Income Tax Act, 1961. However, bonds will be exempted from wealth tax.
Source: Livemint
7. Ola, Uber to Come Under CCI Scanner for Surge Pricing
After investigating the alleged unfair practices adopted by private health care providers and the pharmaceutical sector, the Competition Commission of India (CCI) is set to bring cab aggregators under its scanner over surge pricing.
Taxi-hailing apps like Ola and Uber introduced surge pricing to adjust the prices of rides to match driver supply to rider demand at any given time.
Officials from the Ministry of Corporate Affairs told Business Standard a study was being planned on surge pricing in the cab aggregator industry.
The government felt there were serious competition issues on pricing by these cab aggregators, the officials said, adding that India’s two major cab operators might be abusing their dominant position.
Source: Business Standard
8. Three Public Sector Banks Get Nod to Raise Rs 2,348 Crore From Govt
State-run lenders Bank of Maharashtra, Central Bank of India and UCO Bank on Wednesday got board approvals to raise a total of Rs 2,348 crore by selling shares to the government, exchange filings by these banks showed.
This comes after the government informed each of these banks on 28 December that it has allocated capital to them. According to an executive director of a state-run bank, who spoke under condition of anonymity, this allocation is under the 2015 Indradhanush plan, for which the government has made budgetary allocation of Rs 20,000 crore in bank recapitalisation over this fiscal year and the next.
Banks, especially state-owned lenders, are in need of capital to not only meet regulatory requirements under the so-called Basel III norms, which will be fully implemented from April 2019, but also to clean up their stressed balance sheets. Indian banks are sitting on stressed asset pool of over Rs 10 trillion.
Source: Livemint
9. ED Summons Karti Chidambaram In INX PMLA Case
The ED has summoned Karti Chidambaram, son of senior Congress leader P Chidambaram, for questioning in connection with its money laundering probe in the INX media case.
Official sources said Karti has been called to New Delhi on 11 January. The investigating officer of the case will record his statement in the case, they said. The central probe agency had registered a case against Karti Chidambaram and others in May this year.
It had registered an Enforcement Case Information Report, Enforcement Directorate's equivalent of a police FIR, against the accused named in the CBI complaint, including Karti Chidambaram, INX media and its directors, Peter and Indrani Mukerjea.
The ECIR was registered under the provisions of the Prevention of Money Laundering Act. The sources said that the ED will probe the alleged "proceeds of crime" generated in this case.
Source: PTI