1.Banks May Cut Rates After FM’s Push - TOI
Banks are expected to reduce interest rates in the days ahead after finance minister Arun Jaitley prodded them to ease rates to ensure that there was a better transmission of RBI’s rate cuts.
The Union finance minister Arun Jaitley asked the chief executive officers (CEOs) of both the public sector banks (PSBs) and private sector banks that why the banking system, in response to RBI’s rate cut of 75 basis points since January 2015, effected a corresponding rate cut of only 25 basis points.
– Statement from the finance ministry said after Jaitley’s meeting with bank chiefs.
The finance ministry is keen to ensure that the growth engines roar again and rate cuts would help drive investment and consumption.
2.TCS, Infy Among Top Global Cos With Dividend Payout Higher Than Capex - TOI
Two Indian firms, Tata Consultancy Services (TCS) and Infosys, are among the top 50 companies from around the world that are highly profitable, capex-light and returning more money to shareholders than they are using for themselves. The Indian IT services majors have been listed along with global brands like Apple, Oracle, Coke and McDonald’s in Citigroup’s World’s Biggest Cash Cow list.
3.April IIP at 4.1%; May CPI Inflation at 5.01% - BS
The consumer price inflation edged up to 5.01% in May, while annual industrial output growth accelerated to a two-month high of 4.1% in April, according to the data released today by the Ministry of Statistics and Programme Implementation.
4.PVR to Raise Rs 350 cr -PTI
Film exhibition firm PVR Ltd will be raising Rs 350 crore from Indian private equity firm Multiple Alternate Asset Management, which will pick up 10.7 per cent stake in the company. The company’s board approved issuing the equity shares at a price of Rs 700 a piece on a preferential basis.
PVR has signed definitive agreements with funds managed by Multiple Alternate Asset Management (Multiples), under which the PE firm through its funds would subscribe 50 lakh equity shares of the multiplex chain operator for a 10.7 per cent fully diluted stake,
– Company Statement.
5.US Opens Probe Against TCS, Infosys for H1-B Visa Violations - PTI
The US government has opened an investigation against two of the biggest Indian outsourcing companies for possible violations of H1-B visa rules, according to a media report.
The Department of Labour has opened the investigation against Tata Consultancy Services and Infosys for “possible violations of rules for visas for foreign technology workers under contracts they held with an electric utility Southern California Edison,” the New York Times said.
The move by the Labour Department comes days after the NYT had reported that hundreds of employees at entertainment giant Walt Disney were laid off and replaced with Indians holding H1-B visas.
6.Reliance to Launch Jio by Dec, Set to Kick off Pricing War - BS
Mukesh Ambani is set to launch his much-delayed telecom business under the brand name Reliance Jio by December. In what could cause some anxiety to Jio’s competitors, the Reliance Industries Ltd (RIL) chairman & managing director said the price of the 4G smartphones could be less than Rs 4,000, and voice and data services could be offered for as low as Rs 300-500 a month.
Jio was well positioned to become a global Tier-I telecom operator, Ambani said at RIL’s 41st annual general meeting in Mumbai on Friday, describing it as “one of the largest transformational greenfield (new) digital initiatives anywhere in the world.”
All of this would be accompanied by a suite of digital music, payments, news and cloud storage services, including access to high-definition television and Bollywood movies.
7.HC Refuses Relief to Nestle - BS
The high court (HC) has refused to grant interim relief to Nestlé India in the Maggi recall case. The court directed the Food Safety and Standards Authority of India (FSSAI), Food and Drug Administration (FDA) in Maharashtra, and the state government to file replies to the company’s petition in two weeks. The next hearing is on June 30.
Nestlé India had moved court on Thursday against the Indian food regulator and the Maharashtra body. The Indian subsidiary of the Swiss food major had sought a stay on the order to recall its Maggi noodles from outlets across India, as well as to stop its production.
The company is fighting for “natural justice”, terming the move by FSSAI “arbitrary” and “illegal”.
8.ITC to Invest Rs 8,000 crore in Telangana, Plans Hyderabad Hotel - PTI
Business conglomerate ITC Ltd will invest Rs 8,000 crore in Telangana for expanding its paper plant capacity and setting up of a new hotel, company chairman Y C Deveshwar said on Friday.
As a commitment from ITC we assure you that we will be investing Rs 8,000 crore in the state of Telangana. We will expand our paper plant capacity and set up a new hotel in Hyderabad.
– Deveshwar said during the launch of Telangana’s new Industrial policy.
9. Srinivasan Resigns as Director of India Cements Capital - PTI
N Srinivasan has resigned from the board of financial services firm, ICCL, a part of India Cements group.
In a BSE filing, India Cements Capital Ltd (ICCL) said: “N Srinivasan and T S Raghupathy have resigned as directors of the company with effect from March 30, 2015.”
According to ICCL’s website, it is part of Chennai-based business house of India Cements with Srinivasan serving as the Chairman. Srinivasan is also the Managing Director of India Cements, as per website.
(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.)