259

Stage Seems Set For Intensification Of Consolidation Attempts At Public Sector Bank

New Delhi: Although it isn't clear on who will make the first move, but the stage is set for intensification of attempts at public sector bank consolidation after a presentation by State Bank of India (SBI) chairman Rajnish Kumar at a recent meeting of bankers.

Bankers and government officials said that Kumar made a detailed presentation on SBI's experience with the merger of five associate banks, pointing out how there were some initial niggles during the first few months, along with heightened anxiety. But things have settled down smoothly and the positive impact is now visible. The presentation talked about how there were apprehensions about the impact on stock of bad debt, integration and staff issues. SBI, however, saw it as a move to gain size, something that has eluded Indian banks.

233

Nearly 25-30 Per Cent Companies WithZero Turnovers May Lose Their Registration

New Delhi: The ministry of corporate affairs (MCA) is planning to use provisions of Section 248 of the Companies Act to proceed against these "dormant companies" which remained passive for two consecutive years, even though they complied with the requirement to file returns. Nearly 25-30 per cent Indian companies - those with zero turnover during the last two years - may lose their registration as part of the Union government's latest offensive against so called shell companies.

"The law empowers the government to strike off the name of a company under specific provisions and not having any turnover for two years is sufficient ground. If you haven't undertaken business in two years then there is some issue," said a source, who did not wish to be identified.

The law requires the government to serve a notice on the dormant companies and its directors to respond within 30 days.

206

India Tells OPEC For Responsible Pricing In The Interest Of Producers And Consumers Alike

New Delhi: Union Petroleum Minister Dharmendra Pradhan has conveyed India's concerns when he met ambassadors of OPEC countries in India. Voicing its concern, India on Thursday expressed concern over high international oil prices with oil producers cartel OPEC and nudged it to move to responsible pricing that balances interests of both producers and consumers.

"The meeting comes at a crucial time when the global crude oil prices are at the highest since the peak of 2014," it said.

India is 80 per cent dependent on imports to meet its oil needs and eight of its top suppliers are from the Organisation of Petroleum Exporting Countries (OPEC). The block accounted for about 83 per cent of India's total crude oil imports, 98 per cent of its LPG imports and 74 per cent of its LNG imports during the last financial year ended March 31, 2018.

181

Debt-Ridden Reliance Communication Reduces Job By Around 94 Per Cent

New Delhi:Reliance Communications said that the total number of jobs at the company have been reduced by about 94% to 3,400 at present from its peak level of 52,000. The Reliance Communication is forced to do all this as it is in debt trap.

“Total number of people in the RCom group: from its peak of approximately 52,000 to current 3,400, a reduction of approximately 94%,” RCom said on Wednesday in a BSE filing.

The company is estimated to be at peak in around 2008-10. RCom, which is reeling under debt of around Rs 45,000 crore, closed its mobile services business in January this year and continues to provide business-to-business (B2B) telecom services.The company in the filing said that its B2B unit is insulated from ongoing tariff war in the industry.

164

Government Now Plans To Sell 100 Per Cent Stake Of Air India

New Delhi:  The government is planning to sell the Air India completely by doing away with the clause to retain a minority stake in the debt-ridden airline after having failed to attract the buyers under the current guidelines.

According to a report by Bloomberg, the Union government is ready to "re-examine" its privatisation process and may not insist on keeping 24 percent of the company.

In a major setback to the Air India disinvestment process, the government had on May 31 said no initial bids were received for the proposed stake sale of Air India. The Ministry of Civil Aviation received close to 160 queries from potential buyers of Air India.