Owing to lack of visibility and an uncertain business environment, IT services companies, such as Infosys and Wipro, are refraining from giving revenue growth guidance. Banks have parked a record Rs 8.42 trillion of excess liquidity with the RBI.
Here are the top 10 business headlines on Wednesday morning:
Private equity players see new business opportunities in post-Covid world
The Indian private equity players are expecting a growing business opportunity post coronavirus epidemic in providing long-term credit lines to companies as banks and NBFCs are reluctant to offer loans. Read more here
Banks park Rs 8.42 trn of surplus funds with RBI, hinting lending pause
Banks have parked a record Rs 8.42 trillion of excess liquidity with the RBI, indicating little demand for credit or lenders reluctance to disburse, threatening the central bank’s balance sheet. Read more here
Harsh V Lodha reappointed as director in two MP Birla Group firms
Harsh V Lodha has been reappointed as director in two MP Birla Group firms, following a permission from Calcutta High Court to make public the decisions taken in annual general meetings. Lodha will be entitled to get part of their profits. Read more here
Centre misusing disaster laws to step on states’ rights, say experts
Constitutional and legal experts on Tuesday said the government is harming the “cooperative federalism” by issuing guidelines under Disaster Management Act regarding Covid-19 lockdown, making states compelled to cede power to the Centre. Read more here
Banks scout buyers for Future Retail stake after Biyani’s loan default
Banks with signifacant exposure to Future Retail want the company to go for an all stock merger with an retail player after promoter Kishore Biyani defaulted on loans, leading to collapse in its share price. Read more here.
Centre raises excise duty on petrol by Rs 10 per litre, diesel by Rs 13
The Centre on Tuesday announced one of the steepest hikes in duties on petrol and diesel in the recent past, by raising it by Rs 10 and Rs 13 per litre, respectively. Read more here
Revenue bites: IT firms go aggressive on cost-cutting amid Covid-19 crisis
In the quarter just ended, top Indian IT companies, such as Tata Consultancy Services, Infosys, and Wipro, have signalled taking aggressive cost take-out measures, including reduction in sub-contracting costs, travel expenses, freeze in salary hikes, and holding back variable payments, among others. Read more here
BofA Securities pegs PSBs recap requirement at Rs 52,990 cr – Rs 113,550 cr
Public sector banks will need between Rs 52,990 crore to Rs 113,550 crore in recapitalisation going ahead, which can be funded by the government despite the limited fiscal room, suggests a report from BofA Securities. Read more here
SC says cooperative banks on a par with other lenders under Sarfaesi Act
The Supreme Court on Tuesday brought cooperative banks under a stringent 2002 law that empowers lenders to seize and sell defaulters’ assets, in a boost for these institutions that play a vital role in financial inclusion across large swathes of India, the Livemint report said.
Legal experts point out liability concerns with the Aarogya Setu App
A clause limiting the government’s liability to user data for its Aarogya Setu app has made some legal experts question whether, in case of unauthorised access to the information, a legal recourse would be the only option available, especially since the app has been made mandatory for a significant section of citizens, the Economic Times reported.