Companies and Markets

Companies & Markets

Public sector banks spoil a promising earnings season

The third quarter earnings season ended on a sombre note, as PSU banks dragged down the overall numbers for a quarter that started on a promising note, with IT, FMCG and private banks giving encouraging signals.

Still, it is unmistakable that the earnings picture has gotten brighter, with the recovery expected to gather pace in FY19, brokerages said in their Q3 earnings review.

AI selloff: Govt to invite EoI in next few weeks

The first stage of the two-part bidding process for selling out national carrier Air India and its five subsidiaries is set to kick off in the next few weeks. An internal panel has already prepared the preliminary information guide for the prospective buyers. ”It should happen by this month-end. At most it will stretch up to first week of March. It will be the first part of the two-stage bidding process. As of now, the EoI (expression of interest) is very much on schedule,” a top official source told Financial Chronicle.

Construct of Modi-Choksi scam reveals 150 franchisees & 200 shell cos

A multi-disciplinary government team involving CBI, ED, DRI and SFIO and the department of income tax sleuths has discovered that the uncle-nephew duo of Mehul Choksi and Nirav Modi were running multiple dubious franchisee schemes through the instrumentality of as many as 150 franchisee companies spread all over India.

Sources close to developments revealed the architecture and construct of the humongous scam.

SBI to issue shares to govt for Rs 8,800 cr capital infusion

State Bank of India on Friday said it will issue equity shares to government at a price of Rs 300.82 a piece against a capital infusion of over Rs 8,799.99 crore.

The issue price is higher than the prevailing trading price on the stock exchanges.

The committee of directors for capital raising at a meeting held today approved the issue price.

"The committee of directors... Has accorded its approval to fix the issue price of Rs 300.82 per share of face value of Re 1 each, including premium of Rs 299.82 per share," SBI said in a regulatory filing.

Walmart in talks to buy over 40% of Flipkart: sources

Walmart Inc is in talks to buy a stake of more than 40 per cent in Indian e-commerce firm Flipkart, a direct challenge to Inc in Asia’s third-largest economy, two sources familiar with the matter said on Friday.

In what would be one of its biggest overseas deals, the US retailer is looking at buying new and existing shares in Flipkart and due diligence is likely to begin as early as next week, the sources said. They declined to be named as the talks were private.

Fraud-hit PNB looking to monetise assets: source

Fraud-hit Punjab National Bank is considering monetising its real estate assets, including a giant office space in New Delhi worth an estimated Rs 5,000 crore ($778.63 million), a bank source with direct knowledge of the matter told Reuters.

The bank was looking to expedite the process after it said this week it has been hit with a $1.77 billion loan fraud, the biggest bank scam in the country’s history.

Fraud shatters trust in PSBs

Once again the faith of millions of depositors in our ‘Sarkari banks’ has been shattered with the country’s largest corporate fraud of Rs 11,560 crore discovered at state-owned Punjab National Bank (PNB).

Already, depositors fear the controversial financial resolution and deposit insurance (FRDI) bill 2017 tabled in the Parliament in last August, which with its various provisions permits using depositors’ money to bail-in a bank if it fails.

How the cover was blown

After the retirement of deputy manager Gokulnath Shetty, the new official who took charge noticed the fraud and wrote to the CBI on January 29, naming two PNB officials (the other being single window operator Manoj Kharat). The details are revealed in a complaint by PNB. The letter by the PNB official to the CBI also said Modi had claimed to need the cash to pay his import bills, but the Rs 280 crore raised weren’t used for this purpose. But there were no more details available.

Choksi caught in maelstrom

The extent of the malfeasance in the Nirav Modi case may well be far larger and the malaise may have spread to many more banks.