Business Current Affairs



25-Jul-2014
Business
RBI: Indian Banks will not be Allowed to Trade in Bonds for Infra Lending

Deputy Governor of the Reserve Bank of India, R. Gandhi said that the Indian banks will not be allowed to trade bonds issued by other lenders for infrastructure lending. Last week, the Central Bank exempted banks from holding each other’s bonds, while it allowed lenders to issue bonds for infrastructure lending. He also said, “Restriction on cross holding does apply to trading also. The idea is funds to come from outside the banking system”.

24-Jul-2014
Business
Cairn India grants loan to its parent Vedanta for $1.25 billion

Cairn India has granted a loan of $1.25 billion to its parent Vedanta for a term of two years as a part of Cairn’s treasury operations. Cairn had committed $800 million loan in the first quarter of 2014-15. As per the loan agreement, Cairn India will be getting the interest of 300 basis points above the benchmark London Interbank offered Rate. Sudhir Mathur, interim CEO of Cairn India, said that the company has a cash surplus and therefore it has decided to extend loan to its parent company.

24-Jul-2014
Business
TCS reaches new landmark as market cap hits Rs. 5 lakh crore

The most valued Indian company by market capitalisation, Tata Consultancy Services (TCS) has hit a new milestone after its market capitalisation crossed Rs. 5 lakh crore cap. The price of TCS shares rose to 2.21% and reached to Rs. 2,586.9. The total capital of the company soared Rs. 5,06,696 crore. As per market ranking, TCS is ahead of the runner-up Oil & Natural Gas Corp (ONGC) whose market-cap stood at Rs 3,46,582 crore. It is followed by Reliance Industries (RIL) (Rs 3,34,055 crore), ITC (Rs 2,80,454 crore) and Coal India (Rs 242,579 crore).

24-Jul-2014
Business
Microsoft launches Lumia 530 at low cost

Microsoft today declared on their official blog about the launch of Lumia 530. The retail price of the phone is estimated to be 85 euros (around Rs.6, 869) excluding taxes and subsidies and is likely to be rolled out in the market in August 2014. Lumia 530 will run on the latest version of Windows Phone 8.1 and has 15 GB free cloud storage on Microsoft OneDrive. In India, it is expected to be available at a price of around Rs. 8,000 to Rs. 9,000 after adding taxes and duties.

23-Jul-2014
Business
Infosys takes over operations of Daimler

Infosys has taken over the operations of the European data centers of the German auto major Daimler. Last year, both firms entered into a multi-year agreement. The second- largest IT firm of India will deliver its services from Bangalore for Daimler’s operations. Ruchir Budhwar, AVP and head of automotive European Infosys said, “Radically changing markets and customer demands are making manufacturers re-look at their technology backbones to seek solutions that enable rapid response at manageable costs and without disruption. Such solutions allow companies to react quickly, at low cost and without downtime".

 

22-Jul-2014
Business
HDFC Bank and HDFC likely to merge

As per media reports, HDFC Bank and Home financer HDFC are likely to merge to form the second largest bank in India. If the “economies of scale” prove beneficial to both the firms, the merger may result in the formation of the second largest bank after the State Bank of India (SBI) in terms of assets. As per the regulations of the RBI, a bank is required to keep aside 22.5% in government bonds and 4% of its deposit as cash reserve ratio. Therefore, if this merger will take place, HDFC would have to transfer its assets to the bank.

22-Jul-2014
Business
Walmart expands its business, added more funds to its India operations

Walmart Stores has added more funds to its India operations in the month of June to expand its network in the country. The total investment of the firm in India has reached nearly Rs. 2,000 crore. According to the resolution submitted by the company to the Registrar of Companies on July 16, funds amounting Rs. 623 crore were allotted by the parent company as share application money. As per Walmart, this latest infusion will be used in the expansion of the business. Krish Iyer, CEO of Walmart said, “The equity infusion is to fund our working capital and capex requirements of our cash-and-carry business in India”.

21-Jul-2014
Business
AirAsia launches Bangalore-Kochi flight with fare as low as Rs. 500

The domestic arm of AirAsia, AirAsia India has launched daily flight service between Kochi and Bangalore, adding Kochi to its network. The airline has started its service from Bangalore to Chennai, Goa and Kochi. For the Bangalore-Kochi route, it has offered promotional seats for Rs. 500, inclusive of all fares. Mittu Chandilya, India Chief Executive said, “We have done a complete analysis on our third destination and we are confident we will be able to reach out to more first-time fliers”.

20-Jul-2014
Business
Nasscom's proposal to set up incubation centre in WB receives warm welcome

Nasscom proposed to construct the first incubation centre for young and aspiring IT entrepreneurs in Kolkata which was welcomes by the West Bengal Chief Minister Mamata Banerjee.  She said that over the past week, there had been very positive developments in the IT, manufacturing and engineering sectors of the state. The government has offered 10,000 sq.ft. space for setting up of the centre. Keeping in mind the future needs provision for additional 10,000 sq.ft. space has also been made. Banerjee showed a hope that such developments in the state would create more jobs and opportunities in future for job seekers and entrepreneurs.

19-Jul-2014
Business
Export abilities must be found out to eradicate poverty in northeastern states

Speakers at a meet arranged by industry lobby Confederation of Indian Industry (CII) said that to remove poverty in the northeastern states, India must focus on the export abilities of these states to neighboring countries. Council member M.P. Bezbaruah expressed the need of studying the export ability of the north east state. The findings should then be matched with the demands in the markets of countries like Bangladesh, China and Myanmar. Government should also create export favorable conditions. Other members at the meet said that success in this regard can be achieved by solving the matter related to non-tariff barriers and connectivity.

18-Jul-2014
Business
United Bank to 'Name and Shame' its defaulters

In an effort to recover the dues, the United Bank of India will start a process to ‘name and shame’ its wilful defaulters. It will publish the photographs of the defaulters along with other related details in the newspapers. Deepak Narang, executive director of the bank said, “Since the Supreme Court has recently permitted banks to name and shame wilful defaulters. Now the bank would initiate process”. The bank has recently declared Vijay Mallya and other three directors of Kingfisher Airlines as wilful defaulters.  

18-Jul-2014
Business
RBI issues draft guidelines on payments and small banks

The Reserve Bank of India has issued draft guidelines for licencing of the small banks and payments banks. Views and comments are sought by the Central Bank regarding the draft guidelines from the general public and interested parties. Non-banking finance companies (NBFCs), mobile telephone companies, pre-paid instrument issuers (PPIs), real sector cooperatives are a few of the entities which are eligible for setting up a payment bank. Small bank can be set up by entities such as micro finance institutions, NBFCs and individuals with experience of ten years or more in banking finance.   

17-Jul-2014
Business
Volkswagen plans for cost cutting to lift sales in India

Volkswagen AG has decided to increase the quantity of the locally-made parts of its cars in India. The auto company has taken this step to cut costs in the making of the cars to boost its sales in the Indian market. Volkswagen entered the Indian market five years ago, but managed to get only 2.1% share in the auto market as its cars are relatively expensive. It plans to build engines and gearboxes locally and increase the local content level in its cars to about 90% from the current 65-70%.

17-Jul-2014
Business
Tata invests Rs. 470 crore in Shriram Properties

A private equity arm of Tata Group, Tata Capital has invested $80 million (Rs. 470 crore) in Shriram Properties. The investment is equal to about 15% stake in the company. Shriram Properties is a real estate unit of $12 billion conglomerate Shriram Group based in Bangalore. M. Murali, MD of Shriram Properties said “With Tata on board, it positions Shriram Properties favorably for an IPO in the near future". The firm has an excess cash reserves of Rs. 400 crore and is under no debt.

16-Jul-2014
Business
US-based Pharmalucence gets acquired by Sun Pharma

Sun Pharma, a drug major in the pharmaceutical industry has acquired Pharmalucence, a US-based pharmaceutical company. One of the subsidiaries of Sun Pharma has acquired Pharmalucence which is known for the sterile injectable capacity in the US. However, the details about the deal have not been disclosed by either side. Sun Pharma also acquired Ranbaxy Laboratories for USD 4 billion, earlier this year.

16-Jul-2014
Business
Sensex rises 80 points

A surge in the banking and capital goods stocks has resulted in a rise of 0.32 percent or 79.66 points in trading. Sensex at BSE opened at 25,322.17 points in the early session, which was 79.66 points above the previous day’s points that closed at 25,228.65 points. The Nifty was reported to be trading at 20.40 points in the early morning sessions.   

15-Jul-2014
Business
ITC proposes to establish paper unit in Telangana

ITC, a diversified and multi-business company, has shown its willingness to establish a paper manufacturing unit in Telangana. The project will be set up with total investment of Rs 3,500 crore. In a meeting, a delegation of top officials of ITC conveyed this to Telangana Chief Minister K. Chandrasekhar Rao. Chief Minister welcomed the decision and added that his government will provide the required land for the plant. ITC officials also expressed their eagerness to establish food processing and agro-based units. They wished to extend eucalyptus plantation to more than one lakh acres.    

 

14-Jul-2014
Business
Dip in consumer durable stocks, Sensex falls by 60 points

Capital goods and consumer durables stocks dipped on Monday which led to a fall in a benchmark index of Indian equities markets by 0.24%. It was trading at 60.16 points.  Capital goods, consumer durables and healthcare sectors saw a selling pressure whereas there was a slight good buying in auto stocks.  The highest point touched by the Sensex was at 25,095.76 and the lowest was at 24,955.56.

12-Jul-2014
Business
India's industrial output shows a growth of 4.7 per cent in May

India’s industrial output showed a sign of improvement and rose by 4.7 per cent in May. It is the best in the period of almost past two years. The Index of Industrial Production (IIP), a measurement of the cumulative growth in factory output, for the first two months of the present fiscal year is at 4 per cent. As per the data released by the Central Statistics Office (CSO), the manufacturing sector has grown by 4.8 per cent in the month of May. In the same month, mining showed a healthy growth of 2.7 per cent, whereas output in electricity increased by 6.3 per cent. 

11-Jul-2014
Business
Infosys net profit for Q1 up by 21.6 per cent

Indian IT major Infosys Ltd has announced its net profit which is Rs 2,866 crore for the first quarter (April-June) of the fiscal year 2014-15. Growth in year-on-year (YoY) profit is 21.6 per cent whereas sequential growth is 3.5 per cent. Infosys, in a regulatory filling to the Bombay Stock Exchange (BSE), stated an increase of 13.3 per cent in YoY and 0.8 per cent sequential growth. In the International Financial Reporting Standard (IFRS), software giant registered 15.3 per cent YoY and one per cent sequential growth.

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