QBiz: IDFC Bank-Capital First Merger; Uber India Brand Ambassador
Top business stories of the day.
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1. RBI Slaps Rs 5 Crore Penalty On Airtel Payments Bank
The Reserve Bank of India on Friday imposed a penalty of Rs 5 crore on Airtel Payments Bank for breaching operating guidelines and Know Your Customer norms.
The RBI had issued a show-cause notice to the payments bank on 15 January, asking it to explain why a penalty should not be imposed on it after a supervision report found the bank in contravention of these norms, the central bank said in a statement on its website. After taking into account the bank’s response, the central bank decided that the charges of non-compliance were substantiated and “warranted imposition of monetary penalty”.
In December 2017, the UIDAI had temporarily revoked permission for Airtel and Airtel Payments Bank to use Aadhaar numbers for verification, after allegations that the payment bank accounts of mobile consumers were opened without their informed consent.
(Source: BloombergQuint)
2. IndiGo Said to Plan Order for Upto 50 Airbus A330 Wide-Bodies
IndiGo, India’s biggest airline, plans to order as many as 50 Airbus SE A330 wide-body jets as it seeks to expand beyond short-haul flights, people with knowledge of the matter said.
The carrier aims to take the upgraded A330neo version of the plane, according the people, who asked not to be named as the discussions aren’t public. The deal would be worth $13 billion at list prices for the smaller of two variants, though some of the aircraft are likely to options to be confirmed later.
(Source: LiveMint)
3. IDFC Bank-Capital First Merger Gets CCI Approval
Capital First Ltd on Friday said that it has received approval from the Competition Commission of India (CCI) for its merger with IDFC Bank Ltd.
The merger is still subject to approval from the Reserve Bank of India, the non-banking finance company stated in a stock exchange notification.
The deal announced on 13 January will allow IDFC Bank to grow its retail book, which it has been unable to do in the last two-and-a-half years. As on 31 December, 2017, IDFC Bank’s current and savings account stood at 10.1% while for most established banks the number is over 30%.
(Source: LiveMint)
4. Before Nirav Modi Scam, PNB Lost Rs 28 Bn to Various Frauds in FY17
India's Punjab National Bank lost Rs 28 billion ($431 million) to various frauds last financial year, the government said on Friday, making it the biggest such loser among all state-owned banks even before it uncovered an alleged $2 billion fraud this year.
The country's second-biggest state-owned bank in February accused two high-profile jewellers and their companies of colluding with rogue bank employees to secure credit from overseas lenders using fraudulent guarantees between 2010 and 2017.
(Source: Business Standard)
5. Delhi Daredevils Has A New Co-Owner
Indian Premier League team Delhi Daredevils will now be co-owned by a unit of the $11 billion JSW Group after it announced a partnership with the team’s current owner, the GMR Group.
JSW Sports Pvt Ltd will acquire 50 percent stake in GMR Sports Pvt Ltd, a wholly owned subsidiary of the GMR Group, according to a media statement. The sale is subject to approval from the Board of Control for Cricket in India “and satisfaction of other customary conditions precedent”, the statement added.
GMR Sports was established in 2008 as a subsidiary of GMR Holdings for the purpose of owning and operating the Delhi IPL-franchise. Since then, it has also bought UP Yoddha, which is a Lucknow-based team competing in the Pro Kabaddi League.
(Source: BloombergQuint)
6. NITI Aayog to Finalise Mechanism for MSP Payment by March-End
The Central government might formalise a mechanism to ensure farmers get adequate price for their produce by March after making necessary changes to its own Market Assurance Scheme (MAS) or Madhya Pradesh’s Price Deficit Financing Programme (Bhawaantar Yojana) or procurement by private agencies based on suggestions made by states.
The mechanism is expected to be finalized by March-end, an official statement said after the first meeting between State governments and NITI Aayog.
The meeting was held as part of Finance Minister Arun Jaitley’s Budget announcement directing the Aayog to work out a ‘fool-proof’ mechanism to ensure that farmers get adequate price for their produce.
(Source: Business Standard)
7. Micromax Forays Into Refrigerator, Washing Machine Segments
Home grown firm Micromax, which is aiming to be a complete consumer electronics maker, has entered into refrigerator and washing machine segments and expects Rs 2,000 crore revenue from new categories, said a top company official.
The Gurugram-based firm, which is known for mobile handsets and LED TV panels, is expanding its portfolio in the consumer electronics segment, targeting the 'premium economy' consumers.
As part of its portfolio expansion, Micromax has plans to launch 12 models in refrigerators, 10 models in washing machines, 12 models in air conditioners and 17-18 models of air coolers.
(Source: PTI)
8. Virat Kohli is Uber India Brand Ambassador
Cab hailing app Uber on Friday announced the appointment of Indian cricket team captain Virat Kohli as its first brand ambassador in India. The company is currently working on a multi-media campaign featuring Kohli which is expected to be released in the next 2 to 3 months. The ad will target both driver partners and riders of the ride sharing app.
Apart from the multi-media campaign, the company said Kohli will also be actively involved in a series of marketing and customer experience initiatives to be rolled out by Uber India in 2018.
(Source: LiveMint)
9. Bharti Airtel Plans to Raise Up to Rs 3,000 Cr
Telecom major Bharti Airtel plans to raise up to Rs 3,000 crore through non-convertible debentures for refinancing debt and meeting spectrum liabilities.
A meeting of committee of directors is "scheduled on Tuesday, March 13, 2018 to inter-alia consider and subject to market and other conditions, issue listed, unsecured, rated, redeemable, non-convertible debentures (NCDs Series I and II) on private placement basis aggregating up to Rs 3,000 crore", the company said in a BSE filing.
Besides, the board will meet on Monday to consider fund raising opportunity for the company.
(Source: PTI)
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