1. Anshu Jain Quits as Deutsche Bank CEO - TOI
Jaipur-born Anshu Jain, who was heading Deutsche Bank, has put in his papers under pressure from large investors and bank unions which hold exceptional clout at the bank’s board. The bank has appointed John Cryan, a former UBS banker who was president for Europe at Temasek--Singapore government’s investment arm-as the new CEO with effect from July.
Sources close to Jain said the decision to step down was not a sudden one and had been in the air for some time. Jain’s next move might not necessarily be in banking, considering that he has been playing adviser to governments including the UK, as told to TOI.
Read the rest of the Times of India article here.
2. Reliance Group Upbeat About Rs 10k-cr Power Deal in Bangladesh – ET
The Anil Ambani-led Reliance Group is upbeat as its infrastructure arm will bag a Rs. 10,000-crore contract for the $3 billion power-cum-LNG Bangladesh project backed by a power purchase pact with a statutory body, while the group plans to enter commercial coal mining as well as the defence sector in a big way.
Read the rest of the Economic Times article here.
3. Wadias to Exit Textile Manufacturing Biz – ET
Competition has forced Bombay Dyeing to sell its Pune unit on a slump sale to Oasis for Rs 230 cr. Bombay Dyeing & Manufacturing Company, is selling the last of its textile manufacturing units, as competition from the unorganised sector and growing imports from Taiwan, China and Bangladesh have rendered its factory nonviable.
Bombay Dyeing has struggled with the textile business for almost two decades, and for the Wadia Group, biscuit maker Britannia is now the crown jewel, along with the real estate business of Bombay Dyeing and budget airline GoAir.
Read the rest of the Economic Times article here.
4.Sahara Seals Rs 5,500-cr Debt Deal For Foreign Hotels: Report - PTI
In a major deal for Saharas, billionaire brothers David and Simon Reuben have acquired control of the crisis-hit Indian group’s iconic Grosvenor House hotel here and the two US properties -- Plaza and Dream Downtown -- in a $ 850 million (Rs 5,500 crore) debt refinance deal, as per a media report.
Sahara Group has been trying to raise funds to secure release of its chief Subrata Roy, who has been lodged in Tihar Jail for over a year, through monetisation of its various assets including the three overseas hotels.
5. India Inc Staring at Huge Losses in Foreign Arms – BS
Many Indian companies are staring at huge losses on their mega investments abroad, prompting a few to write off their investments or to sell assets in distress. Coal, steel, mining and energy sectors top the list of ‘wealth-destroying’ sectors.
Take Coal India for example. The company invested close to Rs 500 crore in Mozambique and said it found no coal worth extracting from the two blocks. It might have to write off the entire investment, say analysts. It’s not Africa alone. The investments by GVK group ($1.26 billion in Hancock), Lanco ($600 million in Griffin) and Adani Enterprises ($1 billion) in the Australian coal sector in 2011 remain in the red.
Analysts say the return on these investments will continue to be negative in coming years as well, as coal prices remain at record lows. The Adani family has also invested an additional $2 billion in Australia’s Abbot Point port, which is making losses.
Read the rest of the Business Standard article here.
6. Flows Into Equity Mutual Funds Remain Robust - BS
Investors poured Rs 10,000 crore into equity mutual funds (MFs) for a second straight month in May. This was despite the sharp correction in the market on lacklustre earnings. MF equity schemes have now witnessed net inflows for 12 months. Since May 2014, about Rs 91,000 crore has flown into MF schemes, which many see as a counterbalance to foreign portfolio investment.
Sector experts said retail investors were using the correction as a buying opportunity. The market, which has rallied since August 2013, is currently 10 per cent off its peak. Several stocks in the broader market have fallen more than 30 per cent. And, Morgan Stanley said domestic flows into the equity market are set to grow six-fold in the next 10 years.
Read the rest of the Business Standard article here.
7. Monsoon in India: Rain Deficit to Hit Several Crops – FE
Government officials and industry executives say if the India Meteorological Department’s (IMD’s) predictions of seasonal rainfall at just 88% of a long-period average (LPA) for 2015 is proved correct, a broad range of crops, including grains, oilseeds, cotton and sugarcane, would be hit.
It would not just spoil chances of a higher farm-sector growth in 2015-16 from a paltry 0.2% expansion in 2014-15 (a deficient monsoon season as well) but also weigh on rural wage growth, which has already been languishing at below 6% since January from the average annual growth of 15% during the 2007-13 period.
And, according to the latest data, water reserves across 91 reservoirs in the country were 92% of last year’s storage as of June 4, although it was still better than the benchmark 10-year average.
Read the rest of the Financial Express article here.
8. Acquisitions to Rake in $1.5-bn Revenues: Infosys - PTI
Infosys expects acquisitions to bring in additional revenues of about $1.5 billion (Rs 9,600 crore) as the IT services behemoth aims to achieve an aspirational revenue goal of $20 billion (Rs 13,600 crore) by 2020.The country’s second largest software services firm is also aiming to bring attrition levels down to the lowest in the industry in the same time frame.
9. Yes Bank to Raise Over Rs 16,000 cr Through Equity, Bonds – PTI
Private sector lender YES Bank said that it will raise $ 1 billion (about Rs 6,400 crore) by fresh equity and Rs 10,000 crore through Non Convertible Debentures (NCDs) and bonds.
The bank’s shareholders, at its Annual General Meeting (AGM) yesterday, also approved an increase in its borrowing limit to Rs 50,000 crore, as also hiking the combined investment limit for FPIs and FIIs to 74 per cent. The shareholders also approved the resolutions for re-appointment of Rana Kapoor as the Managing Director and CEO for a period of three years, the bank said.
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