India News

Infosys’ services cost GST Networks, backbone of goods and services tax, dear as tax dept slaps notice for evasion

GST Network (GSTN), the fledgling technology backbone for the goods and services tax, seems to have been caught in the crossfire of bureaucratic wars. While the CAG wants to audit GSTN for the reason that it spends substantially government funds, despite being incorporated as a private limited company in which Union and state governments hold 49%, the service tax department has now summoned its CEO for possible evasion of tax on some software services received from IT major Infosys.

Mahindra and Mahindra recovery seen in 2017: Motilal Oswal

3QFY17 volumes increased ~2% y-o-y (+7% q-o-q), driven by growth of 22% y-o-y (+24% q-o-q) in tractors but 8% y-o-y decline in automobile sales. Realisations declined 2.5% q-o-q (-1% y-o-y) to R536k (est. of R530k). Net revenues grew 16% y-o-y to R101.7b

M&Ms volume growth moderated to 2% y-o-y (+7% q-o-q). The robust 22% y-o-y (+24% q-o-q) growth in tractors was partially offset by weak automobile sales that fell 8% y-o-y. The impact of demonetisation led to weaker automobile sales, while tractor growth too moderated in December.

HDFC Bank, ICICI Bank, to YES Bank, higher provisioning eats into 16 private banks’ Q3 profit

The aggregate net profit of 16 private sector lenders for the December quarter fell 8.7% year-on-year (y-o-y) to R9,605.4 crore owing to higher provisions for non-performing assets, Capitaline data showed. According to the data, provisions of private banks in Q3 rose 71% y-o-y to R9,474 crore.

For instance, Axis Bank reported a 73% y-o-y fall in its December quarter net profit to R579.57 crore as its provisions rose more than five times over the same period last year. The bank’s gross non-performing assets (NPAs) for the quarter jumped 105 basis points (bps) sequentially to 5.22% of total advances. The bank’s watch list reduced 20% over the previous quarter and stood at R11,091 crore, leading to a rise in bad loans.

Bharat Petroleum plans to raise Rs 2,000 crore

State-run oil marketing company Bharat Petroleum Corporation Ltd (BPCL) on Friday said that it plans to raise up to Rs 2,000 crore through private placement of secured non-convertible debentures during the current financial year.

The company informed the Bombay Stock Exchange (BSE) that last year its shareholders had approved "private placement of non-convertible bonds/debentures and/or other debt securities".

Vodafone-Idea merger to be lead by Martin Pieters

Telecom giant Vodafone has brought in Martin Pieters — former managing director (MD) and chief executive officer (CEO) of its Indian arm — to work on the proposed merger of Vodafone India with Idea Cellular.

Group Chief Vittorio Colao is likely to brief all business heads of the Indian arm over a conference call next week about the merger. “Pieters has reached India to oversee the proposed merger of Vodafone India with Idea Cellular. Vittorio will brief all business heads of Vodafone India over a conference call on the merger on February 24,” said a source. Vodafone declined to comment.

Infosys row: Sebi says it will not spare anyone found guilty

Amid the IT giant Infosys coming under the scanner for alleged corporate governance malpractices, Sebi chairman on Friday said the regulator will not spare any violations irrespective of whether the entity found guilty is big or small.

"Any input that we receive from any source is taken to its logical end. Sebi does not believe that just because some allegations have been made, it is true," Sinha told reporters at the international conference of commodity derivatives.

FPI trades in HDFC Bank stock in limbo

In what could be a tricky situation, some trades of overseas investors in HDFC Bank may have to be reversed, as foreign investors’ prescribed investment limit of 74 per cent in the private sector lender was breached in Friday’s trades before the Reserve Bank of India (RBI) issued a circular banning further purchases in the counter.

HDFC Bank is a favourite stock of foreign portfolio investors (FPIs), and the foreign investment cap of 74 per cent of its equity is typically fully utilised. On Thursday evening, the central bank had lifted restrictions on fresh purchases by foreign investors, as their stake had dropped below the prescribed limit. On Friday, FPIs rushed to buy the stock and the limit was crossed.