RBI Takes IDBI Bank Out Of Corrective Action List, India Braces For Fight With Cairn Energy

IDBI Bank is out of prompt corrective action (PCA) after improving its finances and credit profile, the Reserve Bank of India said. India’s telecom regulator suspended for a week new rules to check spam messages after their adoption sparked chaos. Scania, a Swedish truck brand, paid bribes to win bus contracts in India in seven different states between 2013 and 2016, media reports said. Here is more on what happened this week.

• The Reserve Bank of India said it will take IDBI Bank out of its prompt corrective action list after it found the lender was not in breach of its rules on regulatory capital, bad loans and leverage ratio. The step sets the stage for the government to sell its 45.48% stake in the bank.

• Scania, Volkswagen AG’s Swedish truck brand, paid bribes to win bus contracts in India in seven different states between 2013 and 2016, according to multiple reports. Bribes of as much as 65,000 euro ($77,300) were allegedly paid to officials at state bus companies in India in at least 19 cases, a German public broadcaster reported.

• India is confident that it can defend its interests if Cairn Energy starts proceedings to enforce a $1.4 billion arbitration award it has won against the country, government sources told Business Standard, reacting after the UK company told New Delhi it is identifying for seizure the Indian government’s foreign assets.

• India’s telecom regulator suspended for a week new rules to check spam messages after their adoption Monday sparked chaos at banks and e-commerce services. Users failed to receive text messages, including one-time passwords, for online transactions.

• The Parikh family will sell its 80% stake in bulk drug company ZCL Chemicals for Rs 1,600 crore. Private equity company Advent International will pay Rs 2,000 crore to buy ZCL from Parikhs and other investors. Morgan Stanley, which holds a little over 19% in the firm, will make Rs 390 crore from the deal.

• Tata Sons is the only company confirmed to be bidding for Air India after a clique of the national carrier's employees and Kolkata-based businessman Pawan Ruia were disqualified for the second round of sale.

• The brand value of the Indian Premier League (IPL) fell for the first time in seven years: declining 8.7% in dollar terms in 2020 as the as Covid-19 hit the cricket tournament's revenues, said a report. The T20 tournament was played exclusively for a TV and digital audience this time.