The actual recovery of loans by banks under the Insolvency and Bankruptcy Code (IBC) may turn out to be very low with haircuts touching as high as 90 per cent in some cases, causing enormous losses to lenders.
Companies and Markets
Companies & Markets
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 Inc is in talks to buy a stake of more than 40 per cent in Indian e-commerce firm Flipkart, a direct challenge to Amazon.com 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 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.
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.
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.
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.
As a multi-agency probe continues against Nirav Modi for allegedly masterminding India's biggest-ever banking fraud, the stock market dealings of his relative and close associate Mehul Choksi has come under the scanner of markets regulator Sebi and stock exchanges.
The Securities and Exchange Board of India (Sebi) and the stock exchanges have begun analysing the stock market trade details of all entities associated with Modi including Choksi, who has already been under scanner for various cases including a brokerage default incident, a senior official said.
Scam-hit PNB on Thursday said Nirav Modi, who allegedly defrauded the bank of about Rs 11,400 crore, has come up with "some vague offers" to repay the amount, even as the Enforcement Directorate continued raids at properties connected with the jeweller designer.
The country's second largest PSU bank has detected a $1.77 billion (about Rs 11,400 crore) scam where billionaire jeweller Nirav Modi allegedly acquired fraudulent letters of undertaking (LoU) from a branch in Mumbai to secure overseas credit from other Indian lenders.
Iconic Italian sports carmaker Lamborghini is mulling an investment in Maharashtra to aid its electric vehicles plans, a senior state government official said in Mumbai on Thursday.
Maharashtra Industrial Development Corporation chief executive officer Sanjay Sethi said the world-famous manufacturer of luxury supercars, sports cars and SUVs is planning an investment in the state.