1. Kotak Mahindra Bank Pips SBI to Become India’s Second Most Valuable Bank
Shares of private lender Kotak Mahindra Bank Ltd on Monday, 16 April, beat India’s largest lender State Bank of India (SBI) for the first time to become the second most valued bank in the country.
Data from BSE showed that Kotak Mahindra Bank has a market capitalisation of Rs 2,22970.40 crore, after its shares closed 1.88 percent on Monday to record high of Rs 1170.05. Earlier in the day, Kotak Mahindra Bank shares climbed 2.22 percent to an all-time high of Rs1,174 apiece. So far this year it gained 16 percent.
SBI market capitalisation stood at Rs 2,22,043.74 crore. Its shares were trading at Rs248.80 on BSE, down 1 percent from its previous close. HDFC Bank Ltd remained country’s most valuable bank with a market capitalisation of Rs 5.04 trillion.
(Source: Livemint)
2. IMD Monsoon Forecast Showers Indian Economy with Cheer
Rainfall is likely to be normal during the June-to-September southwest monsoon season, the government’s weather office said on Monday, 16 April.
“For the third consecutive year, India will have a normal monsoon. There is very less probability of experiencing a deficit monsoon. We will come out with the next assessment on 15 May about the onset of monsoon over Kerala,” said KJ Ramesh, Director General of the India Meteorological Department (IMD).
The IMD will update its forecast in early June with details on month and region-wise distribution.
If indeed the IMD forecast does pan out, then it will have a salutary impact on the macroeconomic framework — especially with respect to food inflation —and mitigate some of the farm distress.
(Source: Livemint)
3. World Bank Forecasts 7.3% Growth for India in 2018
The World Bank on Monday, 16 April, forecast a growth rate of 7.3 percent for India this year and 7.5 percent for 2019 and 2020, and noted that the country's economy has recovered from the effects of demonetisation and the Goods and Services Tax.
"Growth is expected to accelerate from 6.7 in 2017 to 7.3 percent in 2018 and to subsequently stabilise supported by a sustained recovery in private investment and private consumption," the World Bank said in its twice-a-year South Asia Economic Focus.
(Source: PTI)
4. Air India Should Be Run by an Indian Firm, Says RSS Chief Mohan Bhagwat
Rashtriya Swayamsevak Sangh (RSS) chief Mohan Bhagwat said on Monday, 16 April, said Air India should be handed over to an Indian company and foreign investors should not be allowed to participate in the national carrier’s disinvestment.
“If the problem is that Air India has not been run properly, hand it over to someone who can do it and it should only be an Indian firm,” he said. He gave examples of countries like Germany, which protect their airline industry from foreign participation.
“No country would accept losing dominance over its skies,” he added.
(Source: Business Standard)
5. Supreme Court Stays NCLAT Order On RCom’s Tower Assets Sale to Jio
The Supreme Court stayed the National Company Law Appellate Tribunal's order allowing the sale of Anil Ambani-led Reliance Communications Ltd's tower assets to Mukesh Ambani’s Reliance Jio Infocomm Ltd.
The apex court on 16 April agreed to hear minority shareholder – HSBC Daisy Investments (Mauritius) Ltd’s plea challenging the sale of assets of RCom's tower unit Reliance Intratel Ltd. The HSBC unit, which owns a little over 4 percent in Reliance Infratel, had moved the apex court on April 9 against the NCLAT’s order that allowed bankers to sell mortgaged tower assets. The tribunal will hear the matter on 18 April, an RCom spokesperson said in a press release.
The claim of minority investors in the tower and fibre proceeds can be in the range of Rs 200-300 crore, the company added.
(Source: Bloomberg Quint)
6. Railways to Spend Rs 9,000 Crore in 3 Years on New Wagons
The Indian Railways will spend Rs 9,000 crore over the next three years to procure new wagons as it seeks to up its game in goods transportation.
A senior Railway Ministry official told ET that the national transporter aims to procure about 38,000 new wagons by 2020, a move that will bring joy to private sector wagon makers.
The railways had procured less than 8,000 wagons in the last financial year against the budgeted target of 12,000.
(Source: The Economic Times)
7. Fortis Healthcare Raises Rs 150 Cr Debt to Stave off Bankruptcy
Fortis Healthcare Ltd, which is weighing multiple takeover offers for its assets, has got a Rs 150 crore bridge loan from RattanIndia Finance to keep the struggling hospital operator afloat till it finds a buyer, amid a credit squeeze.
The non-banking financial company has provided the funding to help Fortis avert bankruptcy, two people close to the development said, requesting anonymity.
Fortis has been grappling with legal hurdles and liquidity crises for a while. The healthcare firm reported a consolidated loss of Rs 37 crore in the quarter ended 31 March 2017, the latest available financials of the company showed.
(Source: Livemint)
8. Government Sets Foreign Capital Requirements for Unregulated Financial Entities
The government on Monday, 16 April, set foreign capital requirement limits for financial services entities which are not regulated by any financial regulator.
The minimum foreign direct investment for fund-based activities falling under “other financial services” and those that aren’t regulated will be $20 million, the Finance Ministry said in a statement. The minimum FDI capital for non-fund based unregulated financial services providers stands at $2 million, the statement added.
(Source: Bloomberg Quint)
9. Insolvency: UltraTech Willing to Pay Rs 79.60 bn to Take Over Binani Cement
UltraTech Cement is now willing to pay Rs 79.60 billion, which is Rs 7 billion more than its earlier offer, to take over Binani Cement, a bankrupt firm. However, the revised offer has failed to impress many of the lenders to Binani Cement.
Sources close to UltraTech Cement said the matter relating to the hiked offer had been communicated to the resolution professional, Vijay Kumar Iyer, and the Committee of Creditors (CoC). The CoC has acceded to the Dalmia Bharat-led consortium’s (UltraTech Cement's rival) plan and issued a letter of intent, based on which it has received part of the payment in accordance with the approved plan.
(Source: Business Standard )
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