QBiz: SBI to Acquire 49% of YES Bank; Coronavirus Weakens Bulls

Catch all the top business headlines here.

Here are all your questions about the Yes Bank mess, answered.

(Photo: The Quint)

1. RBI Plan May See SBI Put ₹2,450 Cr Into Yes Bank

The Reserve Bank of India (RBI) has proposed a restructuring plan aimed at rescuing Yes Bank that will entail equity investment by the State Bank of India (SBI) that would keep the entities separate, leaving scope for the state-run lender to exit the lender when it turns profitable.

While deposits and jobs will be protected, the plan also involves wiping out about Rs 8,400 crore invested by bond holders.

The state-run lender will invest as much as Rs 2,450 crore for a 49 percent stake and could explore the possibility of issuing more shares sooner than later to make Yes Bank financially stronger, said people familiar with the matter.

(Source: The Economic Times)

2. Weakened by Viral Attack, Bulls Tumble Over Yes Woes

The stock market tumbled on Friday, 6 March, closing at a five-month low, as uncertainty over Yes Bank added to heightening worries about the effect of the coronavirus outbreak on the economy.

Overseas investors stepped up selling of Indian stocks on Friday as the rupee dropped to a 16-month low against the dollar amid the ongoing global shift to assets that are considered safer.

The number of coronavirus cases globally exceeded 100,000, resulting in investors fleeing Wall Street on Friday.

(Source: The Economic Times)

3. Petrol, Diesel to Get Costlier by ₹1 in Maharashtra

The Maha Vikas Aghadi presented its maiden budget on Friday,6 March, where it announced sops for farmers, some relief to the beleaguered housing industry in the state with a 1 percent concession reduction for the next two years in the ready reckoner rates and announced measures to boost employment.

The budget would raise diesel and petrol by Rs 1 in the state by raising the Value Added Tax (VAT). The budget also seems to have the stamp of both the Shiv Sena and Nationalist Congress Party as projects pushed by the two parties got sizeable allocations.

(Source: The Economic Times)

3. AGR Payment: Vodafone Idea Claims its Dues Stand at Rs 21,533 Crore

Vodafone Idea, which has the highest adjusted gross revenue (AGR) dues but so far has paid the least, on Friday, 6 March, self-assessed its dues at Rs 21,533 crore – less than half of what the department of telecommunications (DoT) has estimated (Rs 53,039 crore).

Of the Rs 21,533 crore liability disclosed by the company, the principal amount is Rs 6,854 crore for the period from FY 2006-07 to FY 2018-19 and interest up to February 2020. It has paid only Rs 3,500 crore so far.

(Source: The Financial Express)

5. Wheat Crop Yield Unaffected Despite Unseasonable Rainfall

The current spell of rain lashing many parts of India in the last two days has not damaged winter crops, according to initial reports from states.

However, prolonged rainfall along with strong wind may lower yield as crops like wheat, mustard and chana are about to be harvested. The government’s second advance estimates released last month have pegged wheat output at 106.21 million tonne for 2019-20 crop year (July-June), up by 2.5 percent from a year earlier.

Rainfall at this stage may not cause any damage to standing wheat crop, but any downpour with high-velocity winds and hailstorms can definitely be a concern, officials said.

(Source: The Financial Express)

6. IndusInd Bank Promoters to Buy Shares from Open Market

Promoters of IndusInd Bank on Friday, 6 March, said they are planning to acquire additional shares from the open market. During the December quarter, promoters held 14.38 percent stake in IndusInd Bank.

IndusInd International Holdings holds 10.59 percent stake and IndusInd holds 3.79 percent in the bank. Shares of the private lender have fallen by 24 percent over the last one month and 34 percent over the last one year.

IndusInd International Holdings and IndusInd will acquire shares “within the overall prescribed promoter equity holding cap for private sector banks,” the company said.

(Source: The Financial Express)

7. HDFC Bank in Talks with Goldman Sachs Group's Harit Talwar for CEO role

Harit Talwar, the head of Goldman Sachs Group’s consumer-banking business, is in the running for one of India’s top banking jobs.

HDFC Bank, India’s largest private-sector lender, has held talks with Talwar for the top role, according to people with knowledge of the matter. The bank has been looking for a new leader to replace Aditya Puri, one of the longest-serving banking chiefs in India, whose term ends in October.

The Mumbai-based lender has a market capitalisation of about $86 billion, giving it a bigger standing than major US banks like Goldman and Morgan Stanley. A spokesman for HDFC Bank declined to comment and Goldman representatives didn’t immediately respond to an emailed request for comment.

(Source: Business Standard)

8. Gold Zooms by Rs 2,000 in a Week on Coronavirus; Silver Up Marginally

The yellow metal witnessed a rally at Mumbai’s physical market on Friday, 6 March with standard gold (995) closing over 2.4 percent at Rs 44,237 per 10 gram, which is Rs 1,236 higher than Thursday’s rate. The yellow metal has seen a Rs 2, 000 jump this week and over Rs 3,000 surge in the last two weeks.

After the 3 per centgoods and services tax (GST), price of the yellow metal crossed the Rs 45,000-mark on Friday. Silver went up over 2 per cent to close at Rs 47,125 per kg. Gold has also been unshaken internationally by the coronavirus outbreak, with prices heading towards a multi-year highs.

(Source: Business Standard)

9. Burmans of Dabur hold 9.26% in Eveready After Second Stake Hike in a Month

The Burmans of Dabur have increased their holding by another 3.34 percent in Eveready Industries in the past two days. After the transaction, the Burman family’s holding in India’s largest battery maker stands at 9.26 percent.

The investment in Eveready has been furthered via Guardian Advisors. This portfolio management firm, owned by Arjun Lamba and others, manages investment for the Burmans and other families. Sources said this investment in Eveready was on behalf of the Burman family.

(Source: Business Standard)