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QBiz: Yes Bank Nears Stake Sale; Essel Clears Some Dues

1. With Stake Sales, Yes Bank Is Now Poised for a Makeover

Yes Bank’s shareholding structure may witness a major churn by the year-end as founder Rana Kapoor has initiated talks to sell a part of his holding to One97 Communications Ltd, the parent of Paytm and Paytm Payments Bank.

Independently, a Reuters story on Tuesday cited Yes Bank CEO Ravneet Gill as saying that the bank is close to selling a minority stake to a global tech company as part of its capital-raising exercise. Although the bank subsequently denied these reports, Mint has independently verified that such talks might have indeed progressed somewhat.

(Source: Livemint)

2. EPFO Seeks First Right to Assets in Bankruptcies

The Employees’ Provident Fund Organisation (EPFO) may gain the first right to assets of a company that goes bankrupt, according to an amendment proposed by the labour ministry.

The move comes as the pension fund struggles to recover nearly Rs 1,800 crore of its subscribers’ money from companies including crisis-ridden shadow lender Infrastructure Leasing and Financial Services Ltd (IL&FS) and troubled mortgage lender Dewan Housing Finance Corp Ltd (DHFL).

(Source: Livemint)

Also Read: Millennials' choice for Ola-Uber, Metro hit auto sector: FM

3. Essel Clears Some Dues With First Tranche of Zee Stake Sale Funds

Subhash Chandra-led Essel group has received the first instalment of money from its stake sale in flagship firm Zee Entertainment Enterprises Ltd (ZEEL), as it races to meet a month-end payment deadline.

In July, Essel group announced the sale of 11 percent stake in ZEEL to Invesco Oppenheimer Developing Markets Fund for Rs 4,224 crore. Of this, the sale of 8.7 percent stake has now been successfully concluded, the group said in a statement. The exact amount received was not disclosed.

(Source: Livemint)

4. CG Power Fraud: CEO KN Neelkant Resigns From Subsidiary Companies

Fraud-hit CG Power & Industrial Solutions Ltd's Chief Executive Officer KN Neelkant has quit from all subsidiaries of the company as investors mounted pressure for his ouster for alleged irregularities happening under his watch.

Neelkant confirmed resigning from the subsidiaries but said he believed that investors and lenders would not want him to step down from CG Power in the “best interest” of the company.

On 29 August, the board of CG Power & Industrial Solutions removed founder Gautam Thapar as chairman after an investigation revealed that the power equipment maker understated its liabilities and advances made to related and unrelated parties, among other financial irregularities.

(Source: BloombergQuint)

Also Read: Twitter to FM: Why Are Truck Sales Down if Millennials Prefer Ola?

5. RBI Panel Suggests Separate Regulations for Mortgage-Backed Securities

A committee set up by the Reserve Bank of India to look into ways to boost the market for securitisation of housing loans has suggested that a separate set of regulations be clearly outlined for mortgage-backed securities. These rules, which would differ from those applicable to other asset-backed securities, could offer more liberal requirements such as a reduced minimum holding period, the committee said.

The committee also recommends that home loans should be linked to an external benchmark, which is publicly disclosed by lenders.

(Source: BloombergQuint)

6. Govt Will Respond to Automobile Industry's Demand, Says FM Sitharaman

Finance Minister Nirmala Sitharaman on Tuesday said the government would respond to the demands of the automobile industry, which is facing the worst slump in two decades. Sitharaman’s assurance to the auto industry came ahead of the GST Council meeting, slated for 20 September.

The FM, while speaking to the media here on 100 days of the Modi government 2.0, said, “We are conscious that we need to respond.” When asked about a possible rate cut on cars, Sitharaman said that call would be taken by the GST Council at its meeting in Goa next week. She, however, added that some of the industry suggestions had already been considered.

(Source: Business Standard)

Also Read: Auto, manufacturing firms shed one-third share value in a year

7. Rs. 12.5 Lk Cr of Investors' Wealth Gone In 100 Days Of Government

Investors' wealth worth Rs. 12.5 lakh crore has been wiped out in the first 100 days since the second term of Prime Minister Narendra Modi's government started on May 30. At yesterday's closing, the market capitalisation or market value of companies listed on BSE stood Rs.1,41,15,316.39 crore as against market capitalisation ofRs. 1,53,62,936.40 crore a day before PM Modi's government came to power.

The Sensex has slumped 5.96 per cent or 2,357 points and the NSE Nifty 50 index has dropped 7.23 per cent or 858 points since 30 May.

(Source: NDTV)

8. RBI External Benchmark for Bank Loans Credit Negative: Moody's

Moody's Investor Service on Tuesday said the RBI's mandate on aligning commercial bank floating loan rates to the external benchmark from next month is credit negative for Indian banks.

"Currently, banks' floating rate loans are benchmarked to the Marginal Cost of Funds-based Lending Rates (MCLR). With changes in lending rates aligned to changes in the cost of funding, banks are able to mitigate their interest rate risk.

(Source: NDTV)

Also Read: ‘Auto Industry Had Its Good Times Two Years Ago’: FM Sitharaman 

9. IRDAI Warns Reliance Nippon Life Over Expenditure Surging Past Limit

Reliance Nippon Life Insurance (RNLIC) has been rapped by the Insurance Regulatory and Development Authority of India (IRDAI) for excessive expenses — nearly Rs 600 crore above the prescribed limit —, a copy of the insurance regulator’s order issued in July shows.

IRDAI let off RNLIC with a warning as it was observed that the expenses had not affected policy holders, the order says.

(Source: The Hindu Business Line)

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