OPINION, P8 ECONOMY, P2 SUCCESSFUL SURGERY EDITORIAL Can’t expect a big hike in capex for at least 2-3 years With 11 of 21 PSBs facing RBI curbs, it is time Modi seriously relooked his strategy INTERNATIONAL, P14 TRADE TENSIONS Jaitley to take break from finance after kidney transplant In about-face, Trump vows to save tech jobs at Chinese firm MUMBAI, TUESDAY, MAY 15, 2018 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOLUME XXXXXV NO. 358, 18 PAGES, `7.00 P U B L I S H E D F R O M : A H M E D A B A D , B E N G A L U R U , C H A N D I G A R H , C H E N N A I , H Y D E R A B A D , K O C H I , K O L K ATA , L U C K N O W, M U M B A I , N E W D E L H I , P U N E SENSEX: 35,556.71 ▲ 20.92 NIFTY: 10,806.60 ▲ 0.10 NIKKEI 225: 22,865.86 ▲ 107.38 HANG SENG: 31,541.08 ▲ 419.02 `/$: 67.52 ▼ 0.18 `/€: 80.91 ▼ 0.55 BRENT: $77.62 ▲ $0.50 GOLD: `31,427.00 ▲ `48.00 IN THE NEWS Manipal further sweetens Fortis offer THE MANIPAL-TPG combine on Monday revised the offer for Fortis Healthcare (FHL) by committing to invest in the cash-strapped firm at `180 per share, thus increasing the valuation to `9,403 crore, reports PTI. In a regulatory filing, FHL said it has received a revised offer from Manipal and TPG with a proposal to invest in the company, while making public a letter sent by Manipal Health Enterprises (MHEPL) to the Fortis board. Having lost out to the MunjalBurmans combine last week, Manipal-TPG, which was the first to make an offer to Fortis Healthcare, said that for purposes of the merger, a value of `9,403 crore would be attributed to FHL under its revised offer. On the other hand, a value of `6,070 crore would be attributed to MHEPL as had been originally determined by independent valuers for the purpose of the transaction, it said in the letter. "The preferential allotment shall be undertaken at a price of `180 per share. For purposes of the merger, a value of `9,403 crore shall be attributed to FHL and a value of `6,070 crore shall be attributed to MHEPL as had been originally determined by the independent valuers of for the purpose of the transaction,” it said. PNB FRAUD CASE Govt seeks ouster of top bankers Action against Allahabad Bank CEO and two PNB EDs after CBI files first charges We confirm that there were substantial lapses (at PNB) and have initiated action...but be rest assured that we won't take action against any (PSB) management on just hearsay FE BUREAU New Delhi, May 14 IN A MAJOR crackdown against high-profile bankers following the filing of the first charge sheet by the Central Bureau of Investigation over the $2-billion fraud at Punjab National Bank (PNB), the finance ministry on Monday directed the board of Allahabad Bank to divest all powers of its chief executive and managingdirectorUshaAnan- — RAJEEV KUMAR FINANCIAL SERVICES SECRETARY thasubramanian, who was at the helm of affairs at PNB until last year. Financial services secretary Rajeev Kumar saidtheministryalsoaskedthe PNB board to strip two of its executive directors (KV Brah- Banks to face SWIFT action THE FINANCE MINISTRY will act on any public sector bankthatfailstolinkitscore banking solution with the SWIFTinterbankmessaging mechanism by April 30, reports Banikinkar Pattanayak in New Delhi.“Any bank that has failed to com- ply has to make a written submission, giving very strong reasons as to why it couldn’tsticktothedeadline. Laxity in fixing systems won’t be tolerated,”a senior financeministryofficialsaid. Detailed report on Page 10 maji Rao and Sanjiv Sharan) of their powers. The move compounds problems at Allahabad Bank, which has already been struggling with massive bad debts and asked by the central bank to curb lending until its finances are fixed, and could prompt public-sector bankers in general to go slow on lending, albeit temporarily, said some analysts. However, to allay fears of honest bankers who could avoid taking tough business calls fearing action in future, the financial services secretary said action won’t be initiated on just hearsay. Continued on Page 2 ● UNDER SCANNER RBI asks Allahabad Bank to lend less FE BUREAU Mumbai, May 14 ALLAHABAD BANK ON Monday said the Reserve Bank of India (RBI) has advised the lender to restrict expansion of risk-weighted assets (RWA). Moreover,the central bank has asked the Kolkata-headquarteredlendertoreduceexposure to high-risk loans and restrict accessing or renewing wholesale deposits,the bank said. RWA is a measure of the minimumcapitalrequirement for a specific asset; typically, a loan backed by collateral attracts a lower risk weight than loans that are unsecured. Allahabad Bank was placed undertheRBI’spromptcorrective action (PCA) scheme in January.The lender reported a net loss of `3,510 crore in the March quarter of 2017-18. While the bank’s net non-performing assets fell 93 basis points sequentially to 8.04%, its return on assets stood at a negative 5.77% in Q4FY18. Last week,the central bank had also imposed a lending ban on Dena Bank which was also placed under PCA some months ago. Continued on Page 2 JIL INSOLVENCY Lakshadweep offers raised bid but CoC may await SC order SURYA SARATHI RAY New Delhi, May 14 LAKSHADWEEP,AJOINTventure between Sudhir Valia-led SurakshaARCandDostiRealty, will look at “improving” its bid for Jaiprakash Infrastructure (JIL) if an opportunity is afforded to it, sources close to the development told FE. The firm has already conveyed its intent to the resolution professional and the lenders to the troubled real estate company, the sources added. Lakshadweep’s bid, which hademergedasthehighest,was rejected by the committee of creditors (CoC) to JIL last week saying it was“too low”, triggering speculations that the firm was on itswayto liquidation. Continued on Page 2 Aug 9, 2017 Aug 23 Sep 4 Sep 5 Sep 11 May 9, 2018 May 12 NCLT admits IDBI's plea, appoints Anuj Jain as RP SC stays NCLT order; buyers allowed to file/pursue cases in consumer fora IDBI Bank moves SC for restoration of NCLT order SC revives NCLT order; asks RP to take over Jaypee Infratech Lenders reject H1 bidder's offer as it was "too low" The 270-day corporate insolvency resolution process ends Home-buyers move SC, want forensic audit of Jaypee Infra and JAL Price pressure FE BUREAU Inflation rises in April Retail inflation inched up to 4.58% in April, against 4.28% in March, as core inflation jumped. Higher crude oil prices could cause CPI inflation to exceed MPC forecast of 4.7-5.1% for H1FY19. Core at 44-month high Inflation moves up (% rise, y-o-y) 6 5 3.85 4 3 2 1 2.99 0 Apr 2017 CPI 4.58 (% rise, y-o-y) 7 4.5 CPI core 5 3 WPI 3.18 Apr 2018 1 2.8 0.61 CPI food -1 -3 5.9 Apr 2017 Apr 2018 ■ Report on Page 2 BRANDWAGON On a fast lane to capture corporate customers
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