- FM announces major bank merger: Union Finance Minister Nirmala Sitharaman on Friday announced merger of 6 public sector banks (PSBs) with 4 better performing anchor banks. This comes as a mega banking realignment by the Narendra Modi government in order to streamline their operation and size. The following mergers will take place which will reduce the existing 27 PSUs into 12 banks pan India:
- The Oriental Bank of Commerce (OBC) and the United Bank of India (UBI) will be merged into the Punjab National Bank (PNB).
- The Syndicate Bank will be merged with the Canara Bank.
- Andhra Bank and Corporation Bank will be merged with Union Bank of India.
- Allahabad Bank will merge into the Indian Bank.
- Besides this, FM also announced the distribution of Rs55,250cr of the budgeted Rs70,000cr capital among select PSBs to spur lending. PNB will get the maximum of approximately Rs16,000cr.
- Tata Steel Ltd: The Tata group company said it would shut parts of its non-core businesses in the United Kingdom, a move that could cost about 400 jobs. The steelmaker proposed to close its loss-making Orb Electrical Steels site in South Wales, potentially affecting up to 380 jobs, as it was unable to find a way forward for the business, the company said in a filing to the stock exchanges on Monday.
- Coffee Day Enterprises Ltd: The company has decided to engage the services of Central Bureau of Investigation former DIG Ashok Kumar Malhotra to scrutinize the books of accounts of the company and its subsidiaries. Malhotra will also investigate the circumstances under which Coffee Day Enterprises late founder V G Siddhartha had written the purported letter dated July 27, alleging harassment by the income tax department. This assignment was earlier given to global audit firm EY. But it has now been reassigned owing to ‘certain conflict of interest’, the Bengaluru-based company said. The conglomerate with interests in coffee to IT services said Malhotra would be assisted by Agastya Legal, New Delhi, led by its senior partner M R Venkatesh.
- Maruti Suzuki Ltd: The country's largest carmaker Maruti Suzuki India on Sunday reported a 32.7% decline in sales at 1,06,413 units in August. Domestic sales declined by 34.3% at 97,061 units last month as against 1,47,700 units in August 2018. Exports in August were down by 10.8% at 9,352 units as against 10,489 units in the corresponding month last year, the company said. Given the existing auto sector slowdown, the car maker said it has cut its production by 33.99% in August, making it the seventh straight month that the it has reduced its output.
- Cox & Kings Ltd: Media reports suggest that the Indian travel company, is exploring a potential sale of European hospitality chain Meininger Hotels as it pursues debt reduction. The company is working with Lazard Ltd. to gauge interest from potential suitors for Berlin-based Meininger. Meininger operates 28 budget hotels in Germany and other parts of Europe, including recent openings in Brussels and Heidelberg, and has a pipeline of about 15 more locations.
- DHFL: The board approved the conversion of whole or part of debt into equity shares/other securities. The debt conversion may result in a change in the company's ownership. Besides this, the board also allowed the housing finance lender to increase the authorized share capital from Rs828cr to Rs1,090.39cr.
- Yes Bank: Private lender Yes Bank Ltd’s board, on Friday, proposed to increase the bank’s authorized share capital from Rs800 crore to Rs1,100 crore to be able to raise enough growth capital. Yes Bank, which raised around $270mn through a qualified institutional placement (QIP) recently, is attempting to raise more money, primarily in order to improve its capital adequacy ratio. Besides this, India Ratings has downgraded Yes Bank’s long-term issuer rating to ‘IND A+’ from ‘IND AA-.
- L&T Ltd: GVK group awarded the Navi Mumbai airport's engineering procurement and construction contract to Larsen & Toubro (L&T) Construction. The deal size and project completion deadline has not been disclosed by the GVK group in its announcement but media sources suggest that the deal value to be over Rs6,000cr.
- Biocon Ltd: Biocon Ltd.’s plan to launch its key diabetes drug in one of the biggest markets for most Indian drugmakers may be delayed after the company failed to receive an approval from the U.S. regulator. The Bengaluru based drug maker said that the US Food and Drug Administration (USFDA) has issued a Complete Response Letter for a new drug application for insulin glargine filed by the company's partner Mylan. The US drug regulator has also issued four observations after cGMP inspection of one of Biocon's biologics drug product facilities in Bengaluru. As per the USFDA, a Complete Response Letter is sent to an applicant if the agency determines that it will not approve the application or abbreviated application in its present form.
- CG Power Ltd: Avantha group unit CG Power Ltd as sacked Chief Financial Officer VR Venkatesh for his role in the financial irregularities and has commissioned a forensic investigation to look into the matter. Earlier, the board had sacked Gautam Thapar, Chairman and promoter of the company.
US stocks ended the week with a lackluster session on Friday as investors were cautious ahead of a holiday weekend in which a fresh round of US tariffs on Chinese imports were due to be levied. The Dow Jones Industrial Average remained subdued at close on Friday, ahead of the Labor Day holiday. The Dow Jones (IA) rose 41 points, or 0.16%, to close at 25,403.28. The S&P 500 remained flat to finish at 2,926.46 and the Nasdaq Composite slipped 10.51 points, or 0.13%, to close at 7,962.88. US stocks markets were shut for Labor Day on Monday.
US and China imposed new tariffs on each other's goods, reinforcing investors' worries over slowing global growth, with no clear end in sight for the trade war. Washington slapped 15% tariffs on a variety of Chinese goods on Sunday - including footwear, smart watches and flat-panel televisions - while Beijing imposed new duties on U.S. crude, the latest escalation in a bruising trade war. Although U.S. President Donald Trump has said the two countries will hold talks in September, there are doubts whether any such talks would lead to a breakthrough.