General Awareness

BUSINESS AND ECONOMY - February 2017

Feb 2017

May 12, 2021

CCI Approves Internal Restructuring of IBM under Green Channel Route

The Competition Commission of India (CCI) has approved Kyndryl Holdings and Grand Ocean Managed Infrastructure Services' proposal for the internal restructuring of IBM Corporation under the green channel route.
Green channel is an automatic approval system, whereby a combination is deemed to have been approved by the CCI upon receiving the filing of the notice for the combination by the parties concerned.
International Business Machines Corporation (IBM Corporation/ Seller) plans to spin off its global MIS Business into a new public company, within the framework of an International corporate internal re-organization.
The MIS business is the business of infrastructure services unit of IBM Corporations Global Technology Services segment and includes security, regulatory, risk management services, identity management services offerings of the security services unit of IBM Corporation's Cloud and Cognitive software segment, but excludes the public cloud platform offering of the infrastructure services unit.

Google Pay Launches Global Money Transfers with Wise and Western Union

Alphabet Inc's Google has launched international money transfer partnerships with remittances firms Wise and Western Union Co for users of its U.S. payments app.
Google Pay users in the United States can now transfer money to app customers in India and Singapore, with plans to expand to the 80 countries available via Wise, and 200 via Western Union by the end of the year.
Google's foray in the $470 billion remittance market, marks a further step by the technology company to expand its financial services offering, ramping up competition in the digital payments sector.
London-based Wise was launched in 2011 with the aim of making international money transfers cheaper and easier, while Western Union remains a market leader in remittances, with a sprawling global network of physical locations.
Their partnership with Google Pay, which has 150 million users in 40 countries, comes as the COVID-19 pandemic has led to a boom in online payments, but an estimated drop in overall remittances flows. The money migrant workers sent home is projected to have declined 14% from 2019 due to worsening economic conditions and employment levels in migrant-hosting countries.

Bay Tree Cuts Stake in Yes Bank

Private equity firm Bay Tree India Holdings sold a 2.1% stake in India's Yes Bank, reducing its holding by almost a third.
Bay Tree cut its stake in the embattled lender that was the center of India's largest financial bailout last year. It now holds a 5.4% stake after multiple sales in the open market between Jan. 6 to May 6.
Bay Tree was the largest anchor investor in Yes Bank's $2 billion equity raising last year when it paid 22 billion rupees for about 55% of the investor portion. It's now the second-largest single shareholder after State Bank of India.

Ruchi Soya Acquires Patanjali's Biscuits Business

Ruchi Soya Industries announced the acquisition of biscuits business from Patanjali Natural Biscuits Pvt Ltd (PNBPL) in a slump sale at Rs. 60.02 crore.
The Board of Directors approved the signing of a Business Transfer Agreement (BTA) in this regard with the PNBPL.
The acquisition will be completed in the next two months
The transaction includes certain contract manufacturing agreements along with transfer of employees, assets (tangible and intangible), current assets and current liabilities, licenses and permits (excluding certain assets and liabilities of PNBPL as specified under the BTA).
As per Ruchi Soya Industries, this acquisition supports the company's ongoing strategy to consolidate its position as a leading FMCG player.

Infosys in Strategic Tie-up with Soft-drink Maker Britvic

IT services major Infosys selected by Britvic, one of the leading branded soft drinks businesses in Europe, as a strategic end-to-end partner to help them deliver their strategic transformation roadmap and operations, across applications, cloud infrastructure, service management and end user computing.
As Britvic's strategic partner, Infosys will provide end-to-end IT services and deliver a technology-driven approach to fulfill Britvic's business goals and strategic digital transformation roadmap. Infosys will also simplify and streamline its cloud infrastructure and operations leveraging Infosys Cobalt while improving service delivery through analytics, automation and process maturity.

May 11, 2021

Jose Kattoor Named RBI Executive Director

The Reserve Bank of India promoted Jose J. Kattoor as Executive Director (ED).
He will look after the Human Resource Management Department, Corporate Strategy and Budget Department and Rajbhasha Department.
Prior to this, Kattoor was the regional director for Karnataka, heading the Bengaluru regional office of the RBI.
In his last assignment in Mumbai, he was in charge of communication. In his career of three decades with the central bank, Kattoor has served in communication, human resource management, financial inclusion, supervision, currency management and other areas in the Reserve Bank. RBI has now 13 executive directors, including one chief financial officer.

Sitapati Steps Down as HUL's Executive Director

Sudhir Sitapati executive director of the foo¬ds and refreshment business at Hindustan Unilever (HUL), has stepped down from his position.
Srinandan Sundaram, currently executive director (customer development) at HUL, will succeed Sitapati effective July 1.
Sitapati joined HUL as a management trainee in 1999. He was appointed executive director, foods and refreshment in July 2018 and was involved in the merger of GSK Consumer's nutrition business into HUL. Prior to this, he was regional category vice president, refreshment (South Asia & Africa), Unilever.

RBI Modifies Norms for Undertaking Govt. Business by Private Banks

The Reserve Bank came out with modified guidelines that allow sound private sector banks to undertake government business, whether at the Centre or in states.
According to the modified norms, scheduled private sector banks, which are not under the Prompt Corrective Action (PCA) framework of the RBI, can undertake government business after executing an agreement with the central bank.
Scheduled private sector banks, not having agency banking agreement with RBI, but intend to handle government agency business, may be appointed as agents of RBI upon execution of an agreement with RBI.
This will be subject to the condition that the concerned bank is not under PCA framework or moratorium at the time of making the application or signing of the agreement with RBI.

Blackstone Buys Embassy Industrial Parks

In one of the largest logistics deals in the country in recent years, US-based private equity fund manager Blackstone Group has bought Embassy Industrial Parks from Warburg Pincus and Embassy Group. Though Blackstone did not disclose the deal value, sources in the industry pegged the transaction at an enterprise value of Rs. 5,250 crore.
Embassy Industrial Parks comprises 22 million square feet of modern logistics and warehousing facilities, as well as yet-to-be-built assets, located across Bengaluru, Delhi-NCR, Hyderabad, and Pune. These are leased to leading e-commerce and retail players.
Warburg Pincus had a 70 per cent stake in the $250-million joint venture (JV) set up in 2015, while Embassy had 30 per cent.
With the latest deal, Blackstone will have a portfolio of over 40 million sqft of developed and yet-to-be-developed assets with its partners Hiranandani and Allcargo.

IRDAI Fines SBI General Insurance Company

Regulator IRDAI has imposed a penalty of Rs. 30 lakh on SBI General Insurance Company for its failure to comply with the third-party motor insurance regulations.
The SBI General Insurance Company had failed to meet the minimum obligations under Motor Third Party business as specified in concerned IRDAI Regulations for 2018-19, the insurance regulator said in its order.
The regulator said that the charge was that the insurer did not comply with the MTP obligation for the fiscal year 2018-19. During 2018-19, SBI General Insurance Company had underwritten Rs. 316.36 crore as against the minimum obligatory MTP insurance business of Rs. 638.34 crore resulting in a shortfall of Rs. 321.98 crore. In percentage terms, the shortfall worked out to be around 50.44 per cent of MTP insurance obligation.

Govt. Names New Chairman of Privatisation-bound Bharat Petroleum Corporation

Government-headhunter PESB selected the next chairman and managing director of Bharat Petroleum Corporation Ltd (BPCL), in signs that the privatisation of the state-owned oil refining and marketing firm may be delayed.
The government had kept the position of chairman and managing director vacant after D Rajkumar retired in August last year. It was thought that the government wants the new management to be named after the new management takes over after the privatisation of BPCL.
The newly revamped Public Enterprise Selection Board (PESB) interviewed prospective candidates and selected Arun Kumar Singh for the position.
Singh is currently Director (Marketing) of BPCL.

May 09, 2021

Kotak Mahindra Bank to Extend Online Payments to Farmers & Traders

Kotak Mahindra Bank (KMBL) announced it has been selected as a digital payments partner by the National Agriculture Market (eNAM), a pan-India electronic trading portal for farm produce. KMBL will enable and facilitate online transactions for all stakeholders on the eNAM platform, including farmers, traders and farmer producer organisations (FPOs).
Under this initiative, Kotak will provide payment, clearing and settlement services on the eNAM platform to facilitate trade between a buyer and seller of agri produce. Kotak has integrated its payment system and portal directly with the payment interface of eNAM, to enable quick and safe transactions for agri participants who have joined the platform.

Non-residents to be Taxed in India if Transaction Value Exceeds Rs. 2 crore

Non-residents undertaking transactions with Indian parties will trigger taxability under the domestic law in India even if they do not have physical presence in the country and operate digitised businesses.
The Central Board of Direct Taxes has notified new rules for operation of business by non-residents under which any transaction over Rs. 2 crore (apex $27,100) in respect of any goods, services or property carried out by them with any person in India, including provision of download of data or software in India, will attract tax in India.
The provisions of Significant Economic Presence (SEP) that become the base for taxability of non-residents in India will also apply if the number of users with whom systematic and continuous business activities are solicited (or who are engaged in interactions) exceeds 3 lakh.
The provisions of SEP were introduced in the legislation in 2018 with intent to tax non-residents operating digitised businesses which function without a physical presence. It meant that SEP of a non-resident in India shall constitute a 'business connection' in India.

India's Sovereign Rating to Remain at Current Level for Next 2 Years

S&P Global Ratings said that India's credit rating would be retained at the current level for the next two years, and the country will see a slightly faster pace of growth in the next couple of years that will support its sovereign rating.
S&P, which had in March seen the Indian economy growing by 11 per cent in the fiscal year to March 2022, saw GDP growth rate dropping to 9.8 per cent under the 'moderate' scenario, where infections peak in May, and falling to as low as 8.2 per cent in 'severe' scenario under which caseload would peak only in late June.

May 08, 2021

RBI Sets up Panel to Assist Regulatory Review Authority

The RBI said that an advisory group has been constituted to assist the second regulatory review authority (RRA 2.0) which was constituted by the central bank earlier this month to streamline regulations and reduce the compliance burden of regulated entities.
Headed by SBI managing director S. Janakiraman, the advisory group will assist the RRA by identifying regulations, guidelines, and returns that can be rationalised.
The RBI has set up the second regulatory review authority (RRA 2.0), initially for a period of one year from May 1, 2021, with a view to streamline regulations and reduce the compliance burden of regulated entities.
Reserve Bank Deputy Governor M Rajeshwar Rao was appointed as the Regulations Review Authority.

NDDB Signs MoU with EESL to Promote Efficient Renewable Technologies in the Dairy Industry

National Dairy Development Board signed an agreement with Energy Efficiency Services Ltd (EESL) to promote efficient renewable technologies in the dairy industry. The memorandum of understanding (MoU) was signed at Ananda, Gujarat by NDDB Executive Director Meenesh Shah and EESL Director (Projects) Venkatesh Dwivedi in the presence of senior officials.
As per the agreement, EESL will conceptualise, propose and design technically sound alternate energy generation solutions for plants in the dairy cooperative sector across the country.

India Offers to Lift Regular Saudi oil Volumes

Indian state refiners placed orders for regular supplies from Saudi Aramco for June, after reducing purchases this month, drawn by lower prices by the world's top oil exporter.
The refiners - Indian Oil Corp, Bharat Petroleum Corp, Hindustan Petroleum Corp and Mangalore Refinery and Petrochemicals Ltd - normally buy 14.8 million-15 million barrels of Saudi oil a month.
This time there is no direction from the ministry to cut imports in June and unlike last time they (Aramco) have reduced the prices as well.

RBI to Conduct First SLTRO for Small Finance Banks

The Reserve Bank of (RBI) will be conducting one special long term repo operation (SLTRO) for small finance banks (SFB) for each month, totalling Rs. 10,000 crore.
The first auction of Rs. 10,000 crore will take place on May 17, and the unutilised portion will be auctioned on June 15. Like this, the SLTROs will continue till October 14, or till the unutilised amount is fully utilised.
The SLTRO will be valid for three years. All SFBs will be eligible to participate in the scheme, which was announced by RBI Governor Shaktikanta Das to mitigate Covid related dislocations.
However, the SFBs will have to ensure that the amount borrowed from the RBI should at all times be let to the specified segments, namely small business units and other unorganised sectors impacted by the pandemic.

Govt. Gives Bidders Data Access for Bharat Petroleum Sale

As per reports, India has allowed bidders access to the financial data of Bharat Petroleum Corp. as the government moves ahead with plans to sell its entire stake in the country's second-biggest state refiner.
The data room has been open since the last week of April and some bidders have held meetings with BPCL management, said one of the people, who asked not to be identified as the talks are private.
The BPCL privatization, which could be the country's biggest, is crucial for India. The government needs to raise capital to make up the fall in tax revenues as the pandemic hit the economy. Finance Minister Nirmala Sitharaman said that last month the plan to raise about $23 billion from selling stakes in state-run companies, including BPCL, is still on course despite the fresh wave of coronavirus infections.

May 07, 2021

Ola Electric Names Balachandar as Chief HR Officer

Ola Electric, the ride-hailing firm's electric vehicle arm, has hired N Balachandar as chief human resources officer. In his new role, Balachandar will accelerate Ola Electric's journey to becoming a world-class talent organization, with a focus on people and culture globally.
Balachandar is a HR veteran and brings global experience to the company. He has worked across India, Europe and Asia with GE Healthcare and GE Capital in several senior HR leadership and M&A (mergers and acquisitions) roles, with Strides Arcolab, with the Standard Chartered Bank and with Asian Paints early in his career. He was most recently as group director with the Coffee Day Group.
Balachandar's appointment comes close on the heels of Wayne Burgess who joined Ola Electric recently as Head of Vehicle Design.

CPP Investments Pays Rs. 1,005 cr for addl. Stake in IndInfravit Trust

Canada Pension Plan Investment Board (CPP Investments), the largest Canadian pension fund manager, bought an additional 15.9 per cent of the total units in IndInfravit Trust for Rs. 1,005 crore. The units were bought in two separate deals.
CPP Investments has acquired seven per cent of the units from Sadbhav Infrastructure Project and will acquire an additional 8.9 per cent from L&T IDPL, which, upon completion, will increase CPP Investments' stake in IndInfravit from 27.9 per cent to 43.8 per cent.
IndInfravit is an infrastructure investment trust (InvIT) sponsored by L&T Infrastructure Development Projects Limited. Launched in 2018, IndInfravit acquires and maintains stable brownfield road concessions in the country.
IndInfravit holds a portfolio of 13 operational road concessions across five states including Karnataka, Maharashtra, Rajasthan, Tamil Nadu and Telangana.

Muthoot Finance Partners with NIRA to Provide Personal Loans

The Muthoot Finance Limited announced its collaboration with fintech NIRA as part of its strategy to strengthen its digital footprint. Through this partnership, salaried customers can avail personal loan of up to Rs. 1 lakh from Muthoot by downloading the NIRA app from Google's Play store. NIRA is a Bengaluru-based fintech offering small ticket personal loans to salaried workers from India's middle class. They offer loans to borrowers starting at incomes as low as Rs. 12,000 per month. This partnership will help Muthoot Finance build its unsecured lending book.
NIRA is a Bangalore-based fintech that provides borrowers with small-ticket personal loans starting at Rs. 12,000 per month. Muthoot Finance will benefit from this relationship as it expands its unsecured lending portfolio.

Mahindra Group to Open MADE, a Design Centre for Mobility Products in UK

The Mahindra Group, which has interest in fields as diverse as farm equipment, aerospace, finance, IT and real estate, among others, will be setting up Mahindra Advanced Design Europe (MADE) in the West Midlands, UK.
The company said that it seeks to further sharpen its distinctive product designs and differentiated technology offerings and improvise its safe, thrilling, yet efficient connected car experiences.
Mahindra Group will be the second firm from India to set foot in the UK for designing cars and SUVs. In 2005, Tata Motors set up the European Technical Centre in Coventry. It is the centre of excellence for automotive design and engineering.

FinMin Releases Second Monthly Installment of Revenue Deficit Grant

The Finance Ministry released the second monthly installment of revenue deficit grant of Rs. 9,871 crore to 17 states.
With the release of the second installment, a total amount of Rs. 19,742 crore has been released in the first two months of the current financial year as Post Devolution Revenue Deficit Grant to the states.
The Centre provides the Post Devolution Revenue Deficit Grant to the states under Article 275 of the Constitution.
The grants are released as per the recommendations of the Finance Commission in monthly installments to meet the gap in revenue accounts of the states post-devolution.
The 15th Finance Commission has recommended Post Devolution Release Deficit grants to 17 states based on the gap between the assessment of revenue and expenditure of the state.

Delhi Falls to 32nd in Knight Frank's Global Prime Property Index

New Delhi's rank declined to 32nd among global cities in terms of prime residential properties.
Knight Frank, in its 'Prime Global Cities Index Q1 2021' report, also said that Bengaluru moved down four spots in the latest index at 40th rank in the first quarter of 2021. Against the 36th rank in Q4 2020, Bengaluru saw a decline of 2.7 per cent year-on-year (YoY) in prime residential prices, leading to the drop in its global position.
The Prime Global Cities Index is a valuation-based index tracking the movement in prime residential prices in local currency across over 45 cities worldwide using Knight Frank's global research network.

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