General Awareness

BUSINESS AND ECONOMY - October 2018

Oct 2018

Jul 19, 2019

SEBI Opposes Proposal to Transfer Surplus Money to CFI

Securities and Exchange Board of India (SEBI) strongly opposed the government's proposal to transfer surplus money to the Consolidated Fund of India (CFI).
The capital markets regulator felt that the proposal would result in compromising its autonomy and its ability to function effectively towards the progress and development of the Indian securities market.
The government had proposed an amendment to the SEBI Act, which states that the SEBI would constitute a reserve fund and 25% of the annual surplus of the general fund would be put in the reserve fund.
Further, the size of such reserve fund cannot exceed the total of annual expenditure of the preceding two financial years.
More importantly, the surplus of the general fund, after factoring in all the SEBI expenses and the transfer to the reserve fund, needs to be transferred to the CFI as per amendments proposed in the Finance Bill, 2019.

EU Fines Chipmaker Qualcomm

The EU hit US chip making giant Qualcomm with an antitrust fine of 242 million euros ($271 billion), in another blow against a tech titan that is fighting global competition battles.
The fine is the second mega penalty levelled against Qualcomm by Brussels, which already fined the chipmaker 997 million euros in January 2018.
Investigation found that Qualcomm abused (its market) dominance between mid-2009 and mid-2011 by engaging in predatory pricing.

Labour Ministry Rejects Move to Lower EPFO Rate of Interest

The labour ministry rejected the finance ministry's request to reduce the 8.65% interest rate offered in 2018-19 by the Employee Provident Fund Organisation, the government owned pension fund manager, in a move that should bring cheer to 46 million subscribers whose funds are managed by EPFO.
As per reports, the labour ministry is of the view that EPFO has sufficient surplus of over Rs. 3,150 crore, mainly earned from investments in exchange traded funds (ETFs).
EPFO interest rate is determined by the organisation's Central Board of Trustees (CBT), which does so after assessing the annual returns on the investments.
It is the duty of EPFO to pass on the rightful share of the subscribers.
EPFO does not take any money from the consolidated fund of the Government of India, and is not obliged to follow the finance ministry's suggestions.

Indiabulls' Insurance Foray

Indiabulls Group's foray into the insurance sector is likely to get delayed as the insurance regulator is scrutinising the merger proposal of its housing finance arm and Lakshmi Vilas Bank (LVB) to understand its implications on the capital position of the group.
Indiabulls Life Insurance as well as Indiabulls General Insurance have received the R1 approval — which is the first stage, in-principle approval — from the IRDAI.
However, since the LVB merger with Indiabulls Housing Finance was announced after the R1 licence, insurance regulatory sources said the entire proposal needs to be revisited in its wake.

World Bank Drops Plan to Lend Fund for Amravati Project

The World Bank has dropped its plan to extend a loan of $300 million (nearly Rs. 2,065 crore) to Andhra Pradesh for the construction of Amaravati, the new capital city of the state.
An indication to this effect was made on the World Bank's website.
The reason for the cancellation of the loan proposal is not known yet.
The newly-formed YSR Congress government headed by Chief Minister Y. S. Jagan Mohan Reddy had pushed the Amaravati capital works down in its list of priorities.

Jul 18, 2019

RBI Wants Audit Firm Partners Under Lens

Audit firm partners who are in the midst of any disciplinary proceedings will be barred from signing the balance sheet of any bank or even engage in the audit process.
This is the latest directive to banks from the Reserve Bank of India (RBI) which over the last one year has placed significant responsibility on statutory auditors of commercial banks.
Thus, even chartered accountant firms which face no ban either from the RBI or the court could be forced to pull out some of their senior partners from playing a role in any bank audit.
Amid divergence in asset quality of banks — resulting in higher provisioning numbers, shock waves to investors, and bad press — the central bank has put in place a system to exchange notes with auditors every quarter.
In the course of such meetings, RBI officials share their observations on provisioning and other issues which, if necessary, may be incorporated by the auditor in the financial results for the next quarter.

ICICI goes digital

ICICI Bank has taken to the mobile platform to expand its SME business offering to even non-customers, providing them the facility to get loans sanctioned through a mobile application.
The bank's new mobile application InstaBIZ offers current account holders an instant overdraft facility (up to Rs 15 lakh). It also takes applications for business loans, arranges for easy bulk collection and payment of funds through multiple digital modes.
The private sector bank has made use of technology to enable small business do an automatic bank reconciliation and undertake all remittances for export and import. ICICI Bank has a loan book of Rs18,500 crore in this segment.

Ebix Acquires Yatra

Ebix Inc., a supplier of on-demand software and e-commerce services has acquired online travel portal Yatra Online Inc., for an enterprise value of $337.8 million, in an all-stock transaction.
However, Yatra will continue to be independently run and will retain its brand and status in India. Ebix makes software for the insurance, financial and healthcare industries.
Its Indian subsidiary, EbixCash, bought Mumbai-based Mercury Travels and Delhi-based Leisure Corp. in 2018, with an aim to create a travel division focused on luxury, events- and sports-related travellers.
Ebix first offered to buy Yatra in March for $337 million, in cash or by stock.
The deal marks Ebix's biggest acquisition till date in India.

GIC in Talks to Buy GVK Power's Stake in Hotel Venture with Taj

Government of Singapore Investment Corp (GIC) is in preliminary talks with GVK Power and Infrastructure to acquire its stake in Taj-GVK Hotels and Resorts as the sovereign investment vehicle of the South East Asian country is looking to consolidate its position in the Indian real estate and hospitality space.
GIC, which already has an investment platform with Indian Hotels, a Tata Group firm and owner of the Taj, is expected to mandate the Indian partner to run the operations. The Singaporean fund entered the fray after GVK's negotiations with Fairfax for the stake sale didn't gather pace.

Prime Day Sales Create Fresh Record for Amazon

Amazon's two-day extravaganza known as Prime Day was its biggest shopping event ever, with sales surpassing the two key holiday spending days combined.
The e-commerce leader said members of its Prime subscription service purchased more than 175 million items throughout the event across 18 countries.
Prime Day sales topped the combined total from the two big shopping days in the year-end holiday season, known as Black Friday and Cyber Monday.

Uniqlo to enter India

Japanese apparel retailer Uniqlo announced plans to enter the Indian market and open three stores in the Delhi-NCR region. It has appointed Tomohiko Sei as its first India CEO.
Before taking over the reins of India operations, Sei was the COO of Uniqlo's parent Fast Retailing's Singapore operations and has been with the company for 19 years.
This is the first time Uniqlo is setting up multiple stores in its launch market. Uniqlo is the largest of eight brands in the $19-billion Fast Retailing Group, one of the world's largest apparel retail companies.

India's Newest Tech Unicorn

Billionaire Azim Premji has helped create India's latest tech unicorn: a fast-rising software startup that symbolizes the growing investor interest in the Asian nation's enterprise technology space.
Icertis, which competes with SAP SE and Oracle Corp. to help businesses manage contracts in the cloud, has raised $115 million, propelling it to unicorn status as investors flock to enterprise software makers.
The advanced-stage funding round in Bellevue, Washington and Pune, India-based Icertis was co-led by Greycroft Partners Llc and Premji-Invest, the fund managed by the family office of Indian tech billionaire Premji.
Existing investors including B Capital Group, Eight Roads Ventures and Cross Creek Advisors participated. With this, Icertis has raised over $211 million.
The enterprise software segment is heating up as investors from Tiger Global Management to Sequoia and Accel scour the industry for India's next startup giants.
Many are expected to be business focused, as the country's talent pool shifts from information technology outsourcing services for global clients toward designing and providing online software.
Icertis said it now helps customers worldwide manage over 5.7 million contracts, from supply chain, procurement deals to employee agreements and non disclosure pacts, that have a total value of more than $1 trillion.

L&T Info Buys Lymbyc

L&T Infotech (LTI) has acquired Lymbyc, a Bengaluru firm with capabilities in the advanced analytics space. This is the company's fifth acquisition since going public in 2016.
This acquisition would enhance LTI's Mosiac platform with deep learning, natural language processing and visualisation capabilities.
This is in line with its five acquisitions entailing a total investment of over $50 million (plus earnouts).
The focus is on bringing in specific capabilities or market access, rather than adding to the topline.

Renault Invests for EV Venture in China

Renault SA will invest $144million for a 50% stake in a venture with Jiangling Motors to develop electric vehicles in China, part of a push by the French companyto make further inroads into the world's biggest car market.
The Chinese entity was created in 2015 and already holds certificationto manufacture battery-electric passenger cars.

Rural Growth Hits FMCG

The slowdown in fast-moving consumer goods (FMCG) continues to progress with value growth dropping to 10% in the second quarter (April-June, or Q2) of calendar 2019, precariously holding onto a double-digit number.
The value growth was 13.4% in the preceding quarter (Q12019) and 10.6% in the comparative quarter (Q2) of 2018.
While value growth has come off its peak from 16.2% in Q32018, volume growth, too, has shrunk in a similar manner.
Nielsen has also made a downward revision of its forecast. It said FMCG growth for the second half of 2019 stands at 12% as against a prediction of 13-14%.
The slowdown is marked by the rural growth decline that has spilled over to Q2 as well. Nielsen said the rural slowdown, which is across zones, is more pronounced in the northern region.
Rural India contributes 37% of overall FMCG spends and has historically been growing 3-5% points faster than urban on account of increasing affordability, availability and demand.
However, rural growth is slowing down at double the rate of urban in recent quarters. This has brought rural growth closer to urban growth in Q2 '19.

Allahabad Bank, Punjab & Sind Bank Report Frauds

Allahabad Bank Ltd reported a Rs. 689 crore fraud related to textile company SEL Manufacturing Ltd to the Reserve Bank of India (RBI).
The fraud is already being heard by the country's company law tribunal. The bank has made provisions for the bad loan.
Meanwhile, Punjab & Sind Bank also said it has reported a Rs.238 crore ($34.58 million) fraud to the Reserve Bank of India, relating to allegations of diversion of funds by the indebted Bhushan Power & Steel Ltd.
It has been observed that the company has misappropriated bank funds, manipulated books of accounts to raise funds from consortium lender banks.
The case is currently with the country's company law tribunal and the bank expects good recovery.
Earlier in July 2019, Allahabad Bank had flagged a $259 million fraud by bankrupt steelmaker Bhushan Power & Steel Ltd.
State-run Punjab National Bank Ltd and Punjab & Sind Bank Ltd have also reported similar frauds amounting to more than Rs. 4,000 crore by the steelmaker.

BoB-led Lenders, JBF Ind to Sign Inter-creditor Pact

Lenders led by Bank of Baroda have decided to sign an inter-creditor agreement with Kohlberg Kravis Roberts & Cobacked JBF Industries under a June 7, 2019 circular issued by the Reserve Bank of India.
Bank of Baroda had filed an insolvency resolution petition against the maker of polyester-based products at the Ahmedabad bench of the National Company Law Tribunal in September 2019.
However, the plea is yet to be admitted by the dedicated bankruptcy court. The tribunal posted the hearing for the case for August 27, 2019.
According to the RBI circular, lenders must enter an ICA during the review of the borrower account within 30 days of the first default to any lender.
The new framework lays down parameters to be included in the ICA, including decision-making by lenders holding 75% by the value of total outstanding facilities and 60% by number, and protection of dissenting lenders.
KKR agreed to invest $150 million for 20% in JBF Industries and its overseas arm JBF Global Pte in July 2015.
Subsequently, the company said in an exchange filing in August that KKR Jupiter Advisors, a unit of the PE's credit arm, would acquire 100% of JBF Petrochemicals.

Airtel, Jio Plan HUL Tie-up

Indian telecom giants Bharti Airtel and Reliance Jio are in talks with Hindustan Unilever (HUL) for tie-ups to offer localised discounts on the latter's home and personal care brands through neighbourhood stores.
Once finalised, the initiative could be a game changer for the two rival telcos as well as the consumer conglomerate.
The telcos will expand beyond time-bound tariff plan oriented content tie-ups to find expand customer base and push them towards higher tariff plans to boost average revenue per customer (ARPU).
At the same time, telemapping consumers will give HUL cloud-based analytics for better insight into consumer behavior.
The business model chalked out so far will be like this - an Airtel or Jio customer will get higher discount vouchers of HUL products on the mobile app if he/she moves up the tariff plan.
These vouchers will be used only in kirana stores and this in turn will help the consumer company to track the kind of products its customers are buying. Tying discounts to tariff plans will work for both parters.
For Bharti Airtel, tapping into the consumer goods space and tying up with kirana stores is a fresh initiative to boost customer stickiness and ARPUs, having mainly focussed on entertainment and sports related content so far. It will then take on Jio head on in terms of connecting to retail consumers.
Mukesh Ambani-led Jio has been tying up with kirana stores using point of sale (PoS) terminal, the PoS machine — or card swipe terminal. The company has been talking to other FMCG brands as well for possible tie-ups.
HUL has been investing to spot digital trends and drive agility at a time when disruptive technologies are challenging businesses.

EBay Invests in Paytm Mall

US-based online marketplace eBay is picking up a 5.5% stake in Paytm Mall for an undisclosed amount.
This marks its third bet on India's e-commerce market over the last decade after backing Snapdeal in 2014 and Flipkart in 2017. The company had entered India by acquiring Baazee back in 2004 for $50 million.
The deal size is pegged at a little over $150 million and will value the Noida-based company, backed by China's online commerce giant Alibaba and Japan's SoftBank, at close to $3 billion.
The deal with Paytm Mall will help merchants on eBay from across the world sell to consumers in India, helping it start the cross-border trade it had attempted when it sold the India business to Flipkart.
But when Walmart acquired 77% stake in Flipkart, eBay launched an India website again, which will continue to function independently after this deal.
The cross-border business being driven with eBay could account for 15-20% of Paytm Mall's gross sales in the coming years.

Jalan Panel Moots Transfer of Surplus by RBI in Stages

The Bimal Jalan panel set up to review the economic capital framework of the Reserve Bank of India (RBI) has decided to recommend transfer of excess reserves to the government in a staggered manner over a period of three to five years based on a predetermined formula.
The official said the recommendation of the panel for transfer of excess reserves involved both contingency fund as well as revaluation fund.
While the currency and gold revaluation reserves of the RBI have more than tripled from Rs. 1.99 lakh crore in FY09 to Rs. 6.92 lakh crore in FY18, the contingency fund has grown 50% during the same period from Rs. 1.53 lakh crore to Rs. 2.32 lakh crore.
The government believes the RBI is being too conservative and is sitting on huge reserves and hence part of it should be transferred to the government for more productive use. After things came to a head late in 2018, the RBI set up a committee to review its capital framework.
The government has budgeted to receive Rs. 1.06 lakh crore in FY20 from the RBI through dividend even though the central bank has already paid an interim dividend of Rs. 28,000 crore in February 2019.
In December 2018, the RBI had set up the Jalan panel. Former deputy governor Rakesh Mohan is the vice-chairman of the panel.
Other members include RBI central board directors Bharat Doshi and Sudhir Mankad; deputy governor NS Vishwanathan; and finance secretary Subhash Chandra Garg. The panel later got extensions as it could not resolve differences among members.
The committee was mandated to also suggest an adequate level of risk provisioning that the RBI needs to maintain.
That apart, any other related matter, including treatment of surplus reserves created out of realized gains, was also come within the ambit of this committee.

Jul 17, 2019

Coca-Cola Announces Leadership Changes

Beverage major Coca-Cola announced leadership changes for its India and South West Asia business unit
The company appointed Sarvita Sethi as Vice-President– M&A and New Ventures. She was earlier the Vice President-Finance, India & South West Asia.
Harsh Bhutani would take over the position of Vice President – Finance (CFO), Coca-Cola India & South West Asia, effective August 1, 2019.
He currently heads the Finance and Business Services verticals for Hindustan Coca-Cola Beverages Pvt Ltd as Executive Director & Chief Financial Officer for over three years.

Nayara Licenses UNIPOL PP Process Technology for Refinery

As part of its $850 million investment in its Vadinar Refinery towards expansion in petrochemicals, Nayara Energy has licensed UNIPOL PP Process Technology from W. R. Grace & Co to produce a broad range of phthalate-free products from the 20 metric million tonnes per annum (MMTPA) refinery.
As part of the expansion, Nayara plans to set up up a 4.5 lakh-tonnes a year polypropylene plant.

Suzlon Defaults on Bonds

In a sign of stress widening across India's credit market, Suzlon Energy defaulted on redemption of its foreign currency convertible bonds (FCCBs) worth $172 million, or Rs. 1,200 crore.
Suzlon asked bondholders to hold on till the company completes its one-time settlement with banks.
However, its settlement with the banks depends upon its plans to sell stake to Canadian investor Brookfield, a move that may see promoters, with 19.8% stake, ceding management control.
The company has not made the payment of the principal amount of the outstanding bonds, being $ 172,000,000, which was due on July 16, 2019 in accordance with the terms and conditions of the bonds.
The company is working on a holistic solution for its debt and that it continued to be in discussions with various stakeholders in relation to outstanding debt (including the bonds).
Brookfield is eyeing a majority stake in the company and discussions are on for a one-time settlement plan with creditors to restructure outstanding bank loans.
The firm has an outstanding debt of Rs. 7,761 crore, including FCCBs and working capital debt of Rs. 3,380 crore.

DHFL Presents Debt Recast Plan

Stressed housing finance major Dewan Housing Finance Company (DHFL) has shared its resolution plan with bankers and company sources claim that the lenders are in sync with the plan.
The plan will be formally presented to the banks later in July 2019 and to bond-holders on July 25, 2019.
In its resolution plan, the housing finance company has proposed that its debt be recast. The cash-strapped lender has a cumulative debt of Rs. 1 lakh crore, of which it owes Rs. 38,000 crore to banks and Rs 34,000 crore to bondholders.
As far as repayment to retail investors is concerned, the resolution plan seeks to utilise monthly cashflows of Rs. 2,300 crore it receives in the form of EMIs from consumers to repay the retail investors upon maturity.
Lenders have to give their blessing to this proposal. Nearly Rs. 5,000 crore worth of bonds (institutional and retail) are maturing between August and September 2019.
Extension of maturity may be sought from institutional bondholders. If bankers agree, the surplus money from this Rs. 2,300 crore could be used to restart lending operations, after the mortgage major has repaid retail investors.
DHFL has also sought a moratorium on payments till its cash flows stabilise and operations resume.
While it is seeking a moratorium on some part of its debt, it is also asking lenders to allow it to defer payment of the principal.
The plan envisages that lenders will maintain the same interest rate on loans at which they were disbursed.

Jul 16, 2019

Private Carriers Make Hay

After the closure of Jet Airways, the international segment continues to offer huge opportunity for Indian airlines, mainly private carriers, as Air India is shying away from aggressive capacity expansion.
According to a report by ICICI Securities Ltd, Air India could manage to increase its international capacity by only 1% in the first two months of FY20.
While IndiGo could increase its international capacity share from 15% in the first two months of FY19 to 19% in the first two months of FY20, SpiceJet managed to grow it from 22% to 24% in the same time period.
GoAir has been able to take its international capacity share to 10%, ICICI Securities said in a note.

Exports Contract

India's merchandise exports contracted for the first time in nine months in June 2019 while imports shrank first time in four months, signalling that rising protectionism and trade tensions between the US and China are impacting India's trade prospects as well.
Data released by the commerce ministry showed exports in June 2019 fell 9.71% to $25.01 billion, while imports dipped 9.06% to $40.29 billion, leaving behind a trade deficit of $15.28 billion during the month.
Comparatively, China's exports in June 2019 fell 1.3%, while imports shrank 7.3%, leading to a trade surplus of $50.98 billion, significantly higher than what analysts projected.
Commerce secretary Anup Wadhawan said the temporary shutdown of ONGC Mangalore Petrochemical Ltd and Jamnagar refinery for maintenance in June 2019 adversely impacted exports of petroleum products.

RBI Fines Banks for Flouting Norms

The Reserve Bank of India (RBI) penalised State Bank of India and Union Bank of India for violating certain regulatory guidelines.
SBI was fined Rs. 7 crore for non-compliance with the directions issued by the RBI on Income Recognition and Asset Classification (IRAC) norms, code of conduct for opening and operating current accounts and reporting of data on Central Repository of Information on Large Credits (CRILC), and fraud risk management and classification and reporting of frauds.
RBI said that the statutory inspection of the bank with reference to its financial position as on March 31, 2017 revealed that the lender had violated those norms.
The central bank also imposed a Rs. 10-lakh fine on Union Bank for non-compliance with the directions on the cyber security framework in banks issued by the RBI.
In 2016, the RBI carried out an examination of the cyber security framework after reports of generation of seven fraudulent messages worth $171 million through the SWIFT system of the bank.

Aditya Birla Fashion Buys Stake in Finesse

Aditya Birla Fashion and Retail Ltd (ABFRL), which owns brands such as Louis Philippe, Peter England and Van Heusen, acquired a 51% stake in Finesse International Design that retails bespoke ceremonial wear and contemporary apparel for men and women under the Shantanu and Nikhil brand for Rs. 60 crore.
The acquisition comes a month after ABFRL acquired ethnic apparel and lifestyle retailer Jaypore for Rs. 110 crore.
The latest acquisition would help ABFRL expand its presence in the branded ethnic apparel and accessories market covering both bespoke ceremonial wear and prêt lines.
The acquisition is a combination of primary equity infusion and secondary share purchase.
ABFRL would not only grow the brand's existing couture business but also launch new ready-to-wear collections to extend the reach of the brand across more consumer and market segments.
Finesse was set up in 2007 and runs five stores selling bespoke ethnic wear and contemporary Indian designs by Nikhil Mehra and Shantanu.
It owns the brand Shantanu and Nikhil under which it also sells apparel, footwear and accessories.

IL&FS Invites Bids to Sell Office Space

Infrastructure Leasing and Financial Services (IL&FS) invited expression of interest from potential buyers to sell its commercial office space in Gujarat International Finance Tec-City (GIFT City). It expects Rs. 480 crore from the sale of two towers at GIFT City.
The 9,600 sq. m of office space in the buildings, known as GIFT One and GIFT Two, are held by Sabarmati Capital One Limited and Sabarmati Capital Two Limited, wholly owned subsidiaries of IL&FS Township & Urban Assets Limited, which, in turn, is a wholly owned subsidiary of IL&FS.
Separately, IL&FS entered into an agreement with secured lenders of three group entities that have a debt of Rs. 5,071 crore, as part of the resolution process.
A binding term sheet was signed with secured lenders of three entities — Moradabad Bareilly Expressway Ltd., Jharkhand Road Projects, and West Gujarat Expressway Ltd.
The company said that total debt across these three entities is around Rs. 5,071 crore, of which Rs. 3,242 crore is from secured lenders and Rs. 1,829 from unsecured lenders.
The revised proposal involves certain concessions and modification of terms of financial debt availed by these entities from lenders.

DHFL Needs Equity Infusion to Survive

Mortgage lender Dewan Housing Finance Corp. Ltd (DHFL) needs between Rs. 2,500 crore and Rs. 3,000 crore of fresh equity investments to sustain lending operations.
DHFL, which declared its worst quarterly loss of Rs. 2,224 crore, said in its notes to accounts that the National Housing Bank has restated the company's FY18 capital adequacy ratio, which measures a bank's capital in relation to its risk-weighted assets, at 10.24%, lower than its own assessment of 15.29% and the regulatory minimum of 12%.
The company, however, said it does not concur with the housing finance regulator's observation and would provide an appropriate response.
Yet, DHFL's survival hinges on additional capital inflows. Unless it finds fresh money, many lenders, especially banks, would be reluctant to give fresh loans.
These loans would enable DHFL to on-lend to some committed but unfinished projects, which would then fetch interest income.
The mortgage lender was the worst hit by the liquidity crisis triggered by defaults at Infrastructure Leasing and Financial Services Ltd (IL&FS) that dried up access to funds for many non-banks.

Jul 14, 2019

Sachin Bansal Invests in Piramal Debt

Flipkart co-founder and tech entrepreneur Sachin Bansal has invested Rs. 200 crore in debt paper issued by Piramal Enterprises Ltd.
Bansal subscribed to non-convertible debentures (NCDs) issued by Piramal Enterprises, which has business interests in pharmaceutical and financial services.
Bansal's loan to Piramal Enterprises follows investments by him in debt deals worth more than $100 million.
In February, 2019, the co-founder of e-commerce major Flipkart has invested Rs. 250 crore each, via debt, in non-banking financial companies (NBFCs) Altico Capital India Ltd and IndoStar Capital Finance Ltd.
The investment was made through BAC Acquisitions Pvt. Ltd, the holding company Bansal started with investment banker Ankit Agarwal.
The debt investments in Altico and IndoStar marked a broad basing of Bansal's investment strategy, who had till then largely invested his billion-dollar fortune in technology start-ups.

Allahabad Bank Reports Fraud

The Allahabad Bank became the second Indian state-owned bank to report a major alleged fraud by bankrupt steelmaker Bhushan Power & Steel Ltd in July 2019.
Allahabad Bank said that it had told the Reserve Bank of India (RBI) that it had identified a fraud worth $259 million in Bhushan's accounts.
Earlier in July 2019, state-run Punjab National Bank (PNB) had reported an alleged fraud of $554.6 million in the steelmaker's accounts.

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