Govt to inject INR48,239cr in 12 PSBs. RCom requests urgent approval of INR260cr from lenders. Only Reliance Jio, BSNL add users in December; Vodafone Idea, Airtel lose out, as per a TRAI report.
Now to Today's Top Business News Stories in Our End Of Day Wrap Up:
Govt to inject INR48,239cr in 12 PSBs.
Incoming Funds: The government on Wednesday announced an injection of INR48,239cr in 12 PSBs including Allahabad Bank, Corporation Bank, PNB and UBI in a bid to help them meet their capital requirements and accelerate lending.
The plan will help the government meet the INR1.06tr revised target of bank recapitalisation this fiscal.
What’s The Plan: Corporation Bank will get the highest capital infusion of INR9,086cr, followed by Allahabad Bank, which will get INR6,896cr. Among the other lenders, Punjab National Bank will get INR5,908cr, Union Bank of India INR4,112cr, Andhra Bank INR3,256cr and Syndicate Bank INR1,603cr.
Fly High: Shares of PSU banks rallied on back of the news. Corporation Bank closed at INR30.20 (+19.84%), Punjab National Bank at INR73 (+ 2.67%), Bank of India at INR83.05 (+1.47%).
View Nifty PSU Banks Index Performance chart here.
RCom requests urgent approval of INR260cr from lenders.
In Dire Need: Reliance Communications Chairman Anil Ambani has sought an urgent approval of INR260cr of income tax refund directly from its lenders, to be directed to Swedish telecom equipment maker Ericsson.
The move comes a day after the SC held Anil Ambani and two of its Directors guilty of contempt of court on applications filed by Ericsson, for not clearing dues worth INR550cr.
SC has asked RCom and Ambani to pay Ericsson INR453cr, in addition to the INR118cr already deposited with the court, failing which he may have to serve three months of jail term.
Brotherly Love: Click here to read how RCom’s doom may be partially attributed to elder brother Mukesh Ambani's refusal to step up and bail it out.
IT sector grows to three year high at 9.2% in FY19. Tech Mahindra announces first ever share buyback.
IT Sector Rallies: IT sector grows to three year high at 9.2% in FY19 against the forecast of 7-9%, as per NASSCOM.
The growth is in particular attributed to the increasing digital transformation and automation in the sector.
First Ever: Tech Mahindra has approved its first ever share buyback plan of INR1,956cr (2.05 crore shares at INR950)
This implies a premium of 16.9% from yesterday’s closing price of INR812.40.
Only Reliance Jio, BSNL add users in December; Vodafone Idea, Airtel lose out, as per a TRAI report.
Connecting India: As per a TRAI report, Telecom subscribers in the country grew marginally to 119.7 crore in December with only two operators, Reliance Jio and BSNL, reporting an addition in their user base.
Reliance Jio added 85.64 lakh users and BSNL 5.56 lakh customers to their networks, taking their subscriber base to 28 crore and 11.4 crore respectively in December.
While Some Gain, Some Lose Out: Vodafone Idea, the biggest telecom operator with total subscriber base of 42 crore lost the highest number of subscribers at 23.3 lakh. Bharti Airtel reported a loss of 15 lakh subscribers, taking its customer base down to 34 crore.
Lyft to file for IPO next month. Thermo Fisher Scientific ceases sale of genetic sequencers in Xinjiang.
Ride-hailing company Lyft is planning to file for an IPO on NASDAQ next month, possibly in a bid to take on its rival Uber which is also expected to go public this year.
Zoom Out: Lyft was last valued at more than $15bn, while competitor Uber is valued north of $100bn.
Also This: American biotechnology product development company Thermo Fisher Scientific reported that it will no longer be selling or servicing genetic sequencers in Xinjiang, on back of mounting criticism that its products were used for state surveillance of citizens.
Chinese companies rely on US suppliers for high-tech DNA sequencers as well as microchips and other components needed to build AI equipment used for state surveillance.
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