QBiz: ED Arrests Yes Bank Founder; 3 Infosys Employees Held
Catch all the top business headlines here.
1. Crackdown Begins: ED Arrests Yes Bank Founder, CBI Joins Probe
The arrest of Yes Bank Ltd co-founder Rana Kapoor by the Enforcement Directorate (ED) on Sunday lends credence to allegations of kickbacks and round-tripping of funds by Kapoor.
The primary allegation against Kapoor is related to Doit Urban Ventures, a company belonging to his family. The company received ₹600 crore from Dewan Housing Finance Corp Ltd (DHFL) allegedly in return for Yes Bank not labelling loans to DHFL as non-performing assets (NPAs).
2. Indian Banks Have Adequate Capital, No Reason for Worry: CEA
As the Yes Bank crisis weighs on investor sentiment, becoming a major reason of concern for the bank's depositors, Chief Economic Adviser (CEA) Krishnamurthy Subramanian on Sunday said there is no reason to worry as India's banks have adequate capital.
He also noted that ratio of deposit to M-CAP (market capitalisation) is not the correct instrument for assessing the safety of banks and Capital-to-Risk (Weighted) Assets Ratio (CRAR) should be used instead.
3. Govt to Restructure SFIO; Increase Manpower to 350 at Probe Agency
The government is set to more than double the manpower at the Serious Fraud Investigation Office (SFIO) to nearly 350 as it continues efforts to curb corporate wrongdoings.
Corporate Affairs Secretary Injeti Srinivas said the process was on to further professionalise and streamline the SFIO.
(Source: The Economic Times)
4. Global Crude Oil War Brings Good Tidings for India as Prices Hit $45 per Barrel
Major oil buyers such as India are set to gain following Russia’s refusal to back broader cuts in crude oil production by the Organization of the Petroleum Exporting Countries (Opec).
Crude prices are on a tailspin after Russia did not agree to Opec’s proposal for an additional production cut of 1.5 million barrels per day (mbpd), amid a slump in demand following the Covid-19 outbreak.
5. Indiabulls Housing Finance Says Yes Bank Owes It ₹662 Crore via At-1 Bonds
Indiabulls Housing Finance on Sunday said Yes Bank owes ₹662 crore in the form of bonds to the company and it has no term loans outstanding from the lender.
"We wish to inform that Yes Bank owes to Indiabulls Housing Finance ₹662 crore via additional tier 1 (AT-1) bonds," it said in a regulatory filing. The investments in AT-1 bonds of Yes Bank were made in 2017, as part of its treasury management of over ₹20,000 crore of cash and when the bank was worth over $10 billion in value, it said.
6. Three Infosys Employees Held for Taking Bribes From Taxpayers
Three Infosys employees, attached to the Income Tax department's Centralised Processing Centre here, were arrested for allegedly taking bribes from taxpayers for speedy processing of their refund, police said on Sunday.
According to police, the key accused among the three was attached to the CPC's data division and had demanded and collected money through his friends from some major taxpayers with whom he had contact over phone for processing their I-T refund claims at the earliest.
7. $5 Trillion Economy: Rajnath Singh Wants Private Sector to Play Bigger Role; Sets Defence Export Target
To achieve the government’s $5 trillion economy target by 2024, Defence Minister Rajnath Singh sees the private sector playing a critical role.
The minister speaking at the Global Business Summit on Saturday urged for increased participation of the private sector in defence manufacturing for India to become the $5 trillion economy, the Defence Ministry said in a statement.
(Source: The Financial Express)
8. SBI to Acquire 245 Crore Shares in Yes Bank at Rs 10 Apiece
State Bank of India (SBI) will acquire a 49 per cent stake in the reconstructed Yes Bank by acquiring 245 crore shares in Yes Bank at a price of Rs 10 each for Rs 2,450 crore.
Under the scheme of reconstruction of Yes Bank, SBI will be issued 245 crore shares at a price of Rs 10 per share for Rs 2,450 crore. This will be 49 per cent of the share capital of the reconstructed bank.
9. Yes Bank Crisis: Petrol PUMP Owners Struggle to Pay Oil Companies
Petrol Pump owners who have accounts in Yes Bank are struggling to make payments to oil companies after the Reserve Bank of India, on Thursday, placed a moratorium on Yes Bank that restricted withdrawals to Rs 50,000 per account for a month.
Petrol Pump owners typically have current accounts and each owner makes a daily payment of Rs 30-40 lakh to the oil company.
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