1. Lakshmi Vilas Bank-Indiabulls Housing Finance Merger Plan Shot Down by RBI
The Reserve Bank of India (RBI) on Wednesday, 9 October, rejected the proposed merger between Lakshmi Vilas Bank and Indiabulls Housing Finance Ltd, scuppering the first ever attempt by a non-bank lender to merge with a bank in the country.
“This is to inform that RBI vide their letter dated 9 October, informed that the application for voluntary amalgamation of Indiabulls Housing Finance Ltd and Indiabulls Commercial Credit Ltd with The Lakshmi Vilas Bank Ltd cannot be approved," the bank said in a filing to stock exchanges.
Uncertainty around the banking regulator’s approval has been an overhang on the two stocks, with shares of Indiabulls Housing losing 73.45 per cent and Lakshmi Vilas Bank losing 71 per cent since the all-stock merger was announced in April.
(Source: Mint)
2. Amazon, Flipkart Generate Rs 19,000 Cr in Festive Sales, Flipkart Takes Lead
A report reveals the festive sales earned e-tailers a whooping $3 billion with a large chunk of customers from Tier-2 cities or Bharat.
As festive sales hosted by the e-commerce sector ended last week, the e-tailers in India achieved a record $3 billion (about Rs 19,000 crore) of Gross Merchandise Value (GMV) during the period (29 September- 4 October), as per a report by consulting firm RedSeer.
Massively led by Amazon and Flipkart, the e-tailers’ year-on-year growth during the six day sale was 30 per cent, said the report, which had predicted a 60-65 per cent growth with a $3.7 billion GMV.
(Source: The Economic Times)
3. RJio to Charge 6p/Min for Calls to Rival Networks
Reliance Jio has decided to withdraw its free voice call offer. It will now charge its customers 6 paise a minute to make calls to subscribers of other mobile operators.
The operator was offering all voice calls for free until now.
While calls within the RJio network and outgoing calls to landline phones will continue to be free, those made to users of other mobile operators, including Airtel and Vodafone Idea, will now be charged.
To soften the impact on its users, RJio is offering free data of 1GB to 10 GB bundled with new top-up vouchers for making voice calls to other mobile networks, valued between Rs 10 and Rs 100.
(Source: The Hindu BusinessLine)
4. Yes Bank Share Price Falls 10% After Lender Denies Reports of Investment by Microsoft
Yes Bank shares on Wednesday fell about 10 per cent after the lender denied the reports about strategic investment by Microsoft Corporation and two other tech firms for likely stake sale. The denial came a couple of days after a report said that Microsoft is among the three firms that are in talks with the private sector lender for stake sale.
The stock of the private lender tumbled 9.98 per cent intraday to Rs 41.05 as compared the previous closing price of 45.60. The stock was the top laggard on both NSE and BSE.
“Not aware of the source, which resulted in the news item and as a matter of policy, the bank would not like to comment on such article,” YES Bank said in an exchange filing. YES Bank shares were trading at Rs 44.10, down 1.55 points, or 3.40 per cent on NSE at the time of reporting.
(Source: Financial Express)
5. State Bank of India Cuts Lending Rates by 10bps Across Tenures
Less than a week after the Reserve Bank of India (RBI) lowered policy rates, the State Bank of India (SBI) on Wednesday, 9 October, cut lending and deposit rates citing adequate liquidity situation.
The country’s largest bank reduced the marginal cost of funds based lending rate (MCLR) by 10 basis points (bps) across tenures. The one-year MCLR, therefore, stands reduced to 8.05 er cent. The new rate may not be applicable to existing home loan borrowers immediately unless these loans are set for a one-year reset clause.
SBI also cut interest rates on its saving accounts for balance below Rs 1 lakh to a historic low of 3.25 per cent. The new interest rates on savings deposits will be effective from 1 November. The bank also reduced interest rates on retail term deposits and bulk term deposits by 10bps and 30bps, respectively, for 1 year to less than two years’ tenor. The new fixed deposit rates will be effective from 10 October.
(Source: Mint)
6. Jet Airways Headquarter Owner, Lenders Reach Settlement
The lenders of Jet Airways have approved the settlement with Luckystar Property Holding, the owner of the Siroya Centre, a building that once was headquarters for the grounded carrier.
Luckystar and the committee of creditors (CoC) were in talks since August, when the custodian of airways’ assets informed the National Company Law Tribunal (NCLT) that the airline was willing to vacate its headquarters and another office in Mumbai to resolve its disputes with Luckystar Property Holdings and mortgage lender HDFC Ltd.
“The CoC of Jet Airways has approved the consent terms with Luckystar Property Holding through a resolution on 4 October, where overwhelming 95.5 per cent of lenders were in favour of the settlement and the rest abstained from voting,” informed the counsel for the resolution professional in the court. “The lenders have reached an agreement to settle the dispute out-of-court on a commercial basis as Jet can now use its own vacant premises.”
(Source: The Economic Times)
7. India Slips 10 Places to 68th on Global Competitiveness Index
India has moved down 10 places to rank 68th on the annual global competitiveness index, largely due to improvements witnessed by several other economies. Singapore, meanwhile, has replaced the US as the world’s most competitive economy.
India, which was ranked 58th in the annual Global Competitiveness Index, compiled by the Geneva-based World Economic Forum (WEF), is among the worst-performing BRICS nations along with Brazil (ranked even lower than India at 71 this year).
Announcing its latest index, the WEF said on Wednesday India ranks high in terms of macroeconomic stability and market size, while its financial sector is relatively deep and stable despite the high delinquency rate, which contributes to weakening the soundness of its banking system.
(Source: The Hindu BusinessLine)
8. Air India Assets Holding Eyes Rs 7,000 Crore via NCDs
Air India Assets Holding (AIAHL), a special purpose vehicle formed by the government of India to acquire the non-core assets of Air India (AIL) and its subsidiaries among other things, is set to hit the non-convertible debentures (NCD) market on Thursday to raise upto Rs. 7,000 crore through 10-year paper, bond dealers said.
The proceeds of the NCDs will be used by AIAHL to refinance the loans availed by AIL. The issue will be open for bids on Thursday.
AIAHL was set up with the objective of acquiring the non-core assets of AIL, its subsidiaries, certain immovable properties and working capital loans and rights acquired amongst other objects.
The bonds proposed to be issued have been assigned a rating of “[ICRA] AAA(CE) (Stable)” by the ratings agency ICRA.
(Source: Financial Express)
9. Oil Prices Extend Slide to 3rd Straight Day, US-China Trade Doubts Grow
Oil prices slipped for a third consecutive session on Wednesday, 9 October, as the prospect of the United States and China striking a trade deal in talks this week dimmed, raising uncertainties for global economic growth and oil demand.
US industry data showing a bigger-than-expected rise in stockpiles at the world’s top oil producer also depressed prices: Brent crude futures fell 27 cents, or 0.5 per cent, to $57.97 a barrel by 0148 GMT, while US West Texas Intermediate crude was at $52.38, down 25 cents or 0.5 per cent.
Negotiators from the world’s top two economies will meet in Washington on Thursday and Friday in the latest effort to hammer out a deal aimed at ending a long-running trade dispute that has slowed global economic growth.
(Source: Financial Express)
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