RBI set to dump its soft approach, will now play hardball over Rs 8 lakh crore bad loans
The Economic Times
Emboldened by the Banking Regulation (Amendment) Ordinance, the RBI is expected to push for resolution of bad loans worth around Rs 8 lakh crore by March 2019, a move that could bring down the NPAs and improve the financial health of banks, a study by Assocham said. "So, it should be safe to assume that the non-performing assets (NPAs) mess would largely be resolved by the first quarter of financial year 2019-20," Assocham study titled 'NPAs Resolution: Light at the end of tunnel by March 2019’ said. Read morehere.
Amazon has pumped in Rs130 crore into its payments entity, Amazon Pay India, as it looks to expand its operations in the country and compete head-on with the likes of Flipkart’s PhonePe and Alibaba-backed Paytm. Amazon Corporate Holdings and Amazon.com have invested Rs130 crore in fresh capital in the Amazon Pay India, according to documents submitted to the corporate affairs ministry. The resolution was approved on 28 June, it added. Read more here.
Google Inc. has acquired Halli Labs, a four-month old start-up out of Bengaluru that is developing artificial intelligence and machine learning solutions. Halli Labs announced the acquisition late Wednesday. “We will be joining Google’s Next Billion Users team to help get more technology and information into more people’s hands around the world,” the company said in blog post on Medium.com. Read more here.
ICICI Lombard IPO: Fairfax, ICICI Bank to sell at least 20% stake
The initial public offering (IPO) of ICICI Lombard General Insurance Co. Ltd will see its founders ICICI Bank Ltd and Prem Watsa’s Fairfax Financial Holdings Ltd collectively dilute a stake of at least 20%, said two people aware of the development. ICICI Lombard’s IPO will be the first public offering by a general insurance company. Read more here.
Amazon gets govt nod to invest in food retail in India
Armed with the government’s approval to retail food products in India, e-commerce giant Amazon.com Inc. can now potentially invest in building out a full-fledged food retail business and sell food products through its wholly owned subsidiary in India. This will provide a serious challenge to existing online grocery stores such as BigBasket and Grofers, according to two executives with direct knowledge of the matter. Read more here.
Consumer goods firms hold off on price hikes despite GST impact
Consumer packaged goods companies are unlikely to raise prices in the next three months for products such as personal care items, hair colours and shampoos even though tax rates have increased under the goods and services tax (GST), company executives say. They cited reasons ranging from muted consumer demand and waiting to see how bigger rivals react to the new GST rates. Read more here.
IndiGo plans low-cost, long-haul international flights
InterGlobe Aviation Ltd’s IndiGo will expand internationally, following the same low-cost business model that has worked for it in India, irrespective of whether it succeeds in its bid for Air India or not, the company’s co-founder said in an analyst call, explaining the logic behind the company’s articulated intent to bid for the state-run airline. Read more here.
Droom raises $20 million from Integrated Asset Management, others
Automobiles marketplace Droom said on Wednesday it has raised $20 million from investors led by Integrated Asset Management Asia Ltd, a Hong Kong-based private investment office, in a Series C funding round.Existing investors Digital Garage, Lightbox, Beenext and Beenos Partners too, participated, the firm said, taking the total capital raised by the company to $65 million. Read more here.
Snapdeal rejects Flipkart’s $700-750 million buyout offer
The board of struggling online marketplace Snapdeal has rejected an offer of roughly $700-750 million from larger rival Flipkart, creating a new hurdle in a proposed deal that has attracted criticism from some Snapdeal shareholders, said three people familiar with the matter. After completing due diligence on Snapdeal (Jasper Infotech Pvt. Ltd), Flipkart made the new offer late last week, said the people cited above. That offer, which is significantly lower than Flipkart’s opening bid of roughly $1 billion, has been rejected by Snapdeal, they said on condition of anonymity. Read more here.
GST implementation brings textile industry to a standstill
Apparel makers and wholesalers say the implementation of the goods and services tax has brought business to a standstill as their unregistered suppliers and customers try to stay out of the ambit of the new tax regime. “There are about 25% of dealers who don’t pay tax at all,” said Suresh Chhatwani, owner of Mumbai-based Surkan International which makes, supplies and exports readymade women’s garments. About “10-20% of my business comes from unregistered dealers, who only want to deal in cash. What happens to my business if they refuse to comply with GST?” Read more here.