1. In a Sharp Rebuke, RBI Tells Yes Bank It Misrepresented Risk Assessment Report
Twenty four hours after Yes Bank stated, publicly, that the Reserve Bank of India had not found any divergence in its non-performing asset recognition for 2017-18, the bank informed exchanges that the regulator has reprimanded it for non-disclosure of “lapses and regulatory breaches.”
In a first-of-its-kind rebuke, the RBI told Yes Bank that the risk assessment report was intended to a be a “confidential” document and that disclosures made by the lender was viewed by the regulator as a “deliberate attempt to mislead.”
(Source: BloombergQuint)
2. NBCC, Suraksha Bid to Acquire Bankruptcy-Bound Jaypee Infratech
State-owned NBCC (India) Ltd. and Mumbai-based Suraksha Group have submitted bids to take over bankruptcy-bound Jaypee Infratech and complete stalled housing projects in Noida, sources said.
The value of the bids could not be immediately ascertained. NBCC Chairman and Managing Director Anoop Kumar Mittal said the company is “keen to acquire” Jaypee Infratech and complete over 20,000 pending housing units.
Mittal declined to share the bid value but said the resolution plan submitted by the company is beneficial for all stakeholders, including banks, homebuyers and NBCC.
(Source: BloombergQuint)
3. Jet Airways Plans to Raise About Rs 2,500 Crore Through Rights Issue
Cash-starved Jet Airways plans to raise about Rs 2,500 crore through a rights issue. Its lenders are also looking at a debt-to-equity conversion.
While lenders may convert Rs 1,000 crore of debt into equity, they will also participate in the equity infusion through a rights issue as part of the deal. Additionally, promoter Naresh Goyal and Etihad Airways, which owns a 24 percent stake in the airline, will infuse around Rs 2,000 crore into the airline, sources aware of the development said.
(Source: Business Standard)
4. IndiGo Says 30 Flights to Be Cancelled Daily, Denies 130 Called off Friday
Budget carrier IndiGo on Friday said scheduled cancellations of 30 flights every day would continue till 31 March and denied that 130 flights were being cancelled on Friday.
IndiGo's statement came a day after media reports said the airline would cancel 130 flights on Friday. The carrier also said that out of the listed 130 flights, it was operating 120 flights, "as scheduled, with more than 20,000 travelling passengers."
In a statement, IndiGo said it was maintaining its position "regarding scheduled cancellations of 30 flights per day until 31 March, 2019".
(Source: Business Standard)
5. Tax Receipts From Digital Economy Surge to Rs 712 Crore in FY19, Shows Data
The market for online advertisements hosted by offshore digital services firms aimed at Indian viewers has increased by 21% so far in FY19 from a year ago, signalling the digital economy’s rapid growth and the promise it yields to the exchequer.
Data available with the income tax department showed that the market for online advertisements on which it levies a 6 percent equalisation levy has grown from Rs 9,800 crore in FY18 to Rs 11,870 crore till mid-February this fiscal year, going by the tax collected from these transactions.
(Source: Livemint)
6. Ex-Cognizant Execs Accused of Bribing Indian Officials
The Justice Department alleges that two former executives for Cognizant Technology Solutions paid about 2 million dollar in bribes to Indian officials to build a new office campus in the country.
Prosecutors said Friday that the information technology giant's former president, Gordon Coburn, and ex-chief legal officer, Steven Schwartz, were charged in a 12-count indictment unsealed in New Jersey.
They allege Coburn and Schwartz authorised the bribes and concealed it by having a third-party construction company make the payment. Prosecutors say Cognizant repaid the money through phony construction invoices.
(Source: Livemint)
7. CBDT Issues Guidelines for Defending Cases at CIT (Appeals)
The Central Board of Direct Taxes (CBDT) has issued guidelines for the department to properly defend cases at the CIT (appeals) level, since a recourse would not be available for a further appeal in the tribunal in case of a loss, given the threshold for the revenue consideration has been raised to Rs 20 lakh by the government last year.
In a bid to unclog judicial forums of pending tax cases, the government last year raised the monetary threshold for further appeals in tax cases. The department can now appeal in tribunal against a CIT(A) order only if the revenue consideration is above Rs 20 lakh. It was earlier Rs 10 lakh.
(Source: Financial Express)
8. India’s Oil Imports From Iran Plunged 45% in January
India’s oil imports from Iran fell by 45 percent in January to 2,70,500 barrels per day oil (bpd), ship tracking data reviewed by Reuters showed, below the estimated 3,00,000 bpd for the month as some cargoes were delayed.
The United States introduced sanctions aimed at crippling Iran’s oil revenue-dependent economy in November but gave a six-month waiver to eight nations, including India, which allowed them to import some Iranian oil.
India is restricted to buying 1.25 million tonne per month, some 3,00,000 bpd. January imports from Iran were 10.4 percent lower than December, the tanker arrival data showed.
(Source: Financial Express)
9. Farm Distress Worsens as Credit Growth Stagnates, Agri Loan NPAs Surge
The Indian agriculture sector has been reeling under distress. The disconcerting condition of farmers has made them resort to practices such as protests or suicides in the recent past. Against this backdrop, the RBI report on “Sectoral Deployment of Bank Credit” sheds light on the probable causes of such a denouement.
While the non-performing assets (NPAs) have surged by over 40 percent in the agricultural sector, the share of the sector in non-food credit off-take has remained stagnant and the bank’s exposure has declined, said the RBI report.
(Source: Financial Express)
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