1. Govt to Infuse ₹11,300 Crore in PNB, Four Other Banks
The government will infuse more than ₹11,300 crore into five state-run banks in the next few days as it looks to provide capital support to ailing banks, a person familiar with the development said.
Of these five, Allahabad Bank, Corporation Bank and Indian Overseas Bank have been placed under Reserve Bank of India’s (RBI’s) prompt corrective action (PCA) framework. The other two banks – Punjab National Bank(PNB) and Andhra Bank – also have the PCA threat looming over them due to weak capital adequacy ratios and high levels of bad debt.
(Source: Livemint)
2. IDBI Bank Seeks Government Nod to Bring LIC on Board as Promoter
IDBI Bank is considering bringing Life Insurance Corporation of India on board in the role of a promoter, the bank said after a board meeting today. The lender will, however, await the government’s decision in the matter, it said.
In a notification to stock exchanges, the bank said that it had received communication from LIC expressing interest in acquiring “51 percent controlling stake in IDBI Bank, as a promoter through preferential allotment of shares/open offer.”
The Bank’s Board in its meeting held today, i.e. 17 July, 2018 has considered the above letter and decided to seek Government of India’s decision in this regard.
(Source: BloombergQuint)
3. Amazon Prime Day Sale: E-Commerce Firm Suffers Tech Crash, Strikes
Amazon.com Inc kicked off its big Prime Day sales promotion with technical glitches on its website and app, threatening its 36-hour sales extravaganza.
Trouble on the site spiked just as the event began at 3pm Eastern time on Monday, but declined significantly within a couple of hours, according to Downdetector.com, which monitors web trouble. Shoppers were expected to spend $3.4 billion on Amazon during the promotion, up more than 40% from last year’s Prime Day, according to Coresight Research.
“Some customers are having difficulty shopping, and we’re working to resolve this issue quickly,” Amazon said Monday on Twitter, adding that “many are shopping successfully.” The company’s stock closed at $1,822.49, but slid about 1.5% in extended trading in New York.
(Source: Livemint)
4. Boost for Textile Sector With Import Duty on Over 50 Products Doubled
In a major relief to the domestic textile industry, the government has doubled the import duty on over 50 textile products – from fibre to apparels.
The import duty on apparels such as coat and pants, jackets, and ladies garments, which earlier was 10 percent, will now be 20 percent, according to the notification issued by Central Board of Indirect Taxes and Custom. Similar rates will be applicable to clothes made from jute or paper yarn, different varieties of carpets, laminated fibre and sheets made from fibres, and so on.
On some items, the rates will be 20 percent or ₹38 per sq metre whichever is higher. According to the board, there have been 45 changes, including in specific and ad valorem rates.
(Source: Hindu Business Line)
5. HDFC AMC’s Rs 2,800-Crore IPO Opens Next Week
Housing Development Finance Corporation Ltd will raise upto Rs 945.2 crore by selling 4.08 percent stake in its asset management arm through an initial public offering. The Rs 2,800-crore IPO will also see its joint-venture partner Standard Life offload stake.
The price band of the HDFC Asset Management Company Ltd’s public offer has been fixed at Rs 1,095-1,100 apiece, parent HDFC said in an exchange filing today. The minimum bid lot has been fixed at 13 equity shares and applications may be made in its multiples, the filing said.
The IPO will open for anchor subscription on 24 July and for the public between 25 July and 27 July. HDFC will offload up to 85.9 lakh shares through the maiden offer. This is in-line with its last year’s plan to reduce stake to at least 50 percent in the subsidiary.
(Source: BloombergQuint)
6. RBI Approves Appointment of Girish Chandra Chaturvedi as ICICI Bank Non-Exec Chairman
ICICI BankNSE 2.78 % today said RBI has approved the appointment of Girish Chandra Chaturvedi as non-executive (part time) Chairman of the bank till 30 June, 2021.
The private lender had appointed the former petroleum secretary as the company's non-executive chairman on 29 June.
"We wish to inform you that RBI has approved the appointment of Girish Chandra Chaturvedi as Non-executive (part time) Chairman of the bank effective today till June 30, 2021," ICICI Bank said in a regulatory filing.
ICICI Bank is under the scanner of various regulatory agencies for alleged conflict of interest involving its CEO Chanda Kochhar and her family members in extending loans to some corporates, including the Videocon Group.
(Source: The Economic Times)
7. Japan, European Union Sign Free Trade Deal to Defy Trump Protectionism
Japan and the European Union signed a wide-ranging free trade deal on Tuesday that both sides hope will act as a counterweight to the protectionist forces unleashed by US President Donald Trump.
The ambitious trade pact, which creates the world’s largest open economic area, comes amid fears that a trade war between the United States and China will diminish the role of free trade in the global economic order.
"There are rising concerns about protectionism, but I want Japan and the EU to lead the world by bearing the flag of free trade,” Prime Minister Shinzo Abe said at a news conference after the signing ceremony.
(Source: Business Standard)
8. Big Decision After 35 Years! Modi Govt Increases Load Carrying Capacity of Trucks
The load carrying capacities of heavy vehicles, including trucks, have been increased by 20-25 percent at par with global standards, and it would help in reducing logistics costs, Road Transport Minister Nitin Gadkari said on Tuesday.
Besides, the requirement for annual fitness certificates for trucks have been done away with and these certificates need to be only renewed every two years.
The government has made changes to regulations governing “axle loads”. Prior to this, the changes were last notified in 1983.
After 35 years, the government has decided to increase the axle loads after taking into consideration the qualitative and quantitative changes in National Highways as well as reforms in heavy automobiles, Gadkari said.
(Source: Financial Express)
9. Tendulkar-Backed Smaaash Entertainment Looks to Raise ₹500 Crore in IPO
Sachin Tendulkar-backed Indian virtual sports and entertainment company, Smaaash Entertainment Pvt Ltd, is planning to launch its initial public offering (IPO) to raise ₹500 crore from the market, said two people aware of the development.
“Smaaash will be raising close to ₹500 crore through the IPO. The company has appointed a few investment bankers. It is likely to happen by December 2018,” said one of the people aware of the development, requesting anonymity. When contacted, Smaaash Entertainment declined to comment on the development.
Founded in 2012 by businessman Shripal Morakhia, Smaaash is also endorsed by Virat Kohli, the captain of the Indian cricket team.
(Source: Livemint)
(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.)