QBiz: Yes Bank Board to Meet; ITR Deadline Extended Till 15 Oct
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1. Yes Bank Board to Meet Today to Decide on New MD & CEO
The board of directors of private sector lender YES Bank will meet on Tuesday, 25 September, to appoint a successor to its Managing Director and CEO, Rana Kapoor.
“The bank and its MD and CEO will be fully guided by its board of directors, the Reserve Bank of India and other relevant stakeholders. The bank’s management remains committed to protect the interests of all of its stakeholders,” YES Bank said in a statement on Monday, adding that it has demonstrated a track record of consistent delivery of business and financial outcomes over the last 14 years.
“The bank has remained in profit and this is just a phase of transition,” said a person familiar with the development.
(Source: Business Line)
2. India Plans Raising $2.8 Billion by Merging Power Firms
India is planning to sell its stake in SJVN Ltd and Power Finance Corp to other government-controlled companies in deals that may fetch the federal government about 200 billion rupees ($2.8 billion), helping it to rein in the fiscal deficit amid growing risks of a slippage, people with knowledge of the matter said.
The government plans to sell its 63.8 percent stake in hydropower producer SJVN to NTPC Ltd., the nation’s largest thermal power producer, to garner about 80 billion rupees, the people said, asking not to be named as the information isn’t public. The other deal being considered will see Rural Electrification Corp Ltd buying the federal government’s 65.6 percent ownership in Power Finance Corp Ltd, they said.
(Source: BloombergQuint)
3. Department Puts Aadhaar-Based Face Authentication on Hold
The telecom department has put Aadhaar-based face authentication on hold pending the Supreme Court judgement on petitions challenging the issuance of new mobile connections and re-verification through the use of the unique identity.
The Department of Telecom (DoT), in a letter dated 19 September 2018 to the UIDAI CEO, said that the judgement on petition filed in the apex court challenging Aadhaar based e-KYC process is expected to be delivered this month and it may require re-look on the the whole e-KYC process for issuance of new mobile connections.
“… it has been decided by the department that the instructions for implementation of face authentication in Aadhaar based e-KYC (know your customer) process including amendments in consumer application form/database formats may be issued by DoT to TSPs after procurement of final judgement on Aadhaar by Hon’ble Supreme Court after comprehensive re-look on the whole Aadhaar based e-KYC process,” the letter said.
(Source: Financial Express)
4. Govt Extends Deadline for Filing Income Tax Return, Audit Report Till 15 Oct
The government on Monday, 24 September, extended the deadline for filing income tax returns and the audit report for financial year 2017-18 to 15 Oct. The CBDT had received representations from stakeholders seeking extension of the last date for filing of returns by taxpayers whose accounts have to be audited.
The Central Board of Direct Taxes extends the due date for filing of ITRs as well as reports of audit, which were needed to be filed by the said specified date, from 30 Sept 2018 to 15 Oct, 2018 in respect of the said categories of taxpayers, the CBDT said in a statement.
(Source: BloombergQuint)
5. Sebi Said to Review DHFL, Yes Bank for Trading Irregularities
India’s market regulator—the Securities and Exchange Board of India (Sebi)—is examining Friday’s sharp moves in shares of Dewan Housing Finance Corp. Ltd (DHFL), Yes Bank Ltd. and other lenders for possible trading irregularities, people with knowledge of the matter said.
Sebi is looking into whether brokers and investors colluded during the sharp sell-off and subsequent recovery in financial shares, the people said, asking not to be identified due to the sensitivity of the matter. The rout, which deepened on Monday, 24 September has erased about $13 billion from the value of a gauge of financials.
(Source: Livemint)
6. Tried to Settle Loans, Ed Resisted My Efforts: Vijay Mallya to PMLA Court
Embattled liquor baron Vijay Mallya told a special court here Monday, 24 September that the Enforcement Directorate (ED) "resisted" his efforts to settle his loans with public sector banks.
Mallya, who is currently in the United Kingdom, has been charged by the ED of defaulting on bank loans to the tune of Rs 90 billion.
Mallya, through his counsel, was replying in the PMLA court of Judge M S Azmi to an ED application seeking that he be declared a fugitive under the Fugitive Economic Offenders Act.
(Source: Business Standard)
7. Sensex, Nifty Set to Experience a More Painful Bear Hug
Attempts to talk markets up—through a joint statement by the banking and markets regulators, as well as by finance minister Arun Jaitley—failed to pacify skittish investors. They continued to shun financial stocks, sending the benchmark Sensex down 536 points on Monday, 24 September. Markets, clearly, have a mind of their own.
BSE’s 30-share Sensex shed 1.46% to 36,305.02 points, while National Stock Exchange’s 50-share Nifty fell 1.58%. These indexes have now dropped below their 100-day moving average, indicating the market continues to be bearish. It’s also the lowest close since 11 July and 19 July for both these indexes. Overall, the Sensex has eroded 4.69% in the past five sessions.
(Source: Livemint)
8. Dena Bank Approves Merger With Bank of Baroda Along With Vijaya Bank
The board of state-run Dena Bank on Monday, 24 September, approved its merger with Bank of Baroda along with another state-run lender Vijaya Bank. Last week, government had announced merger of Bank of Baroda, Vijaya Bank and Dena Bank to create the country’s second largest lender by assets and branches.
“The board meeting has decided to recommend for amalgamation of our bank with Bank of Baroda and Vijaya Bank,” Dena Bank said in a filing to exchanges. Consolidation would enable creation of a bank with business scale comparable to global banks and capable of competing effectively in the country and globally, it said
(Source: Financial Express)
9. Aavas Financiers IPO Opens Today Amid NBFC Mayhem
Aavas Financiers Ltd’s initial public offering (IPO) to raise up to Rs 1,734 crore opens on Tuesday, 25 September, amid the mayhem in the non-banking finance companies (NBFCs) space. The stretched valuations make the Aavas IPO look affordable largely from a long-term perspective and, given the recent meltdown in the NBFC pack, investors could be a bit cautious on the offer.
Aavas, earlier known as AU Housing Finance, was the mortgage lending business of Jaipur-based small finance bank AU Small Finance Bank Ltd. In February 2016, Partners Group and Kedaara Capital had acquired it for Rs 900-1,000 crore.
Aavas has fixed its price band at Rs 818-821, aiming to raise up to Rs 1,734 crore at the upper end of the price band.
(Source: Livemint)
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