NEWS, P20 MARKETS, P7 COMPANIES, P4 PARIS OLYMPICS 2024 EYE ON ASSET MANAGEMENT SPACE EV CHARGING STATION INFO TOO The Games are here, all eyes on opening ceremony today India a key talent provider for Citi’s global growth strategy: CEO Khullar Now navigate narrow roads and flyovers with Google Maps BENGALURU, FRIDAY, JULY 26, 2024 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL NO. XXXVII 82, 24 PAGES, `12.00 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: 80,039.80 ▼ 109.08 NIFTY: 24,406.10 ▼ 7.40 NIKKEI 225: 37,869.51 ▼ 1,285.34 HANG SENG: 17,004.97 ▼ 306.08 `/$: 83.71 ▲ 0.01 `/€: 90.83 ▼ 0.08 BRENT: $80.50 ▼ $1.21 GOLD: `67,984 ▼ `934 Promoters, PEs to pay N E W S Mankind to buy retro tax on OFS gains ADVENT EXITS BIOPHARMA FIRM IN THE Bharat Serums for `13,630 cr HIGHWAYS TARGET FOR FY25 IS 15% BELOW FY24 THE GOVERNMENT HAS set a provisional target of constructing 10,421 km of national highways this fiscal, which is 15% lower than what was achieved last year, reports Mukesh Jagota. ■ PAGE 2 FE BUREAU New Delhi, July 25 OLA SUSPENDS EV PROJECTTO FOCUS ON E-SCOOTERS IPO-BOUND OLA ELECTRIC has suspended its electric car launch plans as it wants to focus on its e-scooter business, sources said, reports Reuters. ■ PAGE 4 RBI AIMS TO FIRM UP BANKS’ LIQUIDITY RESILIENCE THE RBI HAS released draft norms aimed at bolstering the liquidity resilience of banks, reports fe Bureau. An additional 5% run-off factor to be assigned for retail deposits. ■ PAGE 7 What Budget has for individual taxpayers ■ PAGE 9 ■ Mankind enters ■ Advent into a definitive agreement to acquire 100% stake in BSVfromAdvent had acquired a majority stake in BSVin 2019 ■ Adventwas looking to exit & return liquidity to investors for over a year ■ Deal positions Mankind Pharma as a leader in India’s women health and fertility drug market that cover more than 70 countries, as well as subsidiaries in Germany, the Philippines and the US, according to its website. FE BUREAU New Delhi, July 25 PROMOTERS AND PRIVATE equity(PE)investorswhofailed to pay capital gains tax when they sold their shares via the offer for sale (OFS) in initial public offerings (IPOs) will have to cough up the amount following an amendment to tax laws in the FY25 Budget. Taxpayers, in some cases, werenotpayingcapitalgainstax citing the absence of an express provision to determine the fair market value (FMV) of the equity shares since these were originally unlisted, although securities transaction tax (STT) hadbeenpaidonthem.Thenew rulescomeintoeffectretrospectively from February 18, 2018. As such, all sales post this date will come under the ambit of RULE BOOK ■ The new rules come into effect retrospectively from February 18, 2018 ■ All sales post this date will come under the ambit of the changed provisions ■ Many promoters felt ■ The amended they were not liable to pay capital gains tax because fair market value of equity shares was indeterminable ■ The govt has no estimate on the quantum of tax that could be recovered yet I-TAct provisions define fair market value, leaving no ambiguity on the matter the changed provisions. Revenue secretary Sanjay Malhotra told FE the government was yet to fully estimate the quantum of tax that could be recovered. “We are yet to work thatoutbutweneededto plug this gap,”Malhotra said. As Vivek Gupta, partner, Deloitte India, observed that many promoters were taking a view theywere not liable to pay anycapitalgainstaxbecausethe fair market value was indeterminable.“However, this point hasnowbeenclarifiedbythetax authorities who have made it abundantly clear that capital gains tax is payable,” he said. The amended provisions of the Income Tax Act, 1961, define what fair market value means, leaving no ambiguity on the matter. Continued on Page 6 THE GOVERNMENT IS not open to reviewing the long-term capital gains regime for sale of property, which has ignited a debate,SanjayMalhotra,secretary, department of revenue, told Priyansh Verma. “For most sellers, the new regime will result in reduced tax incidence.Only for some,it will lead to an increase,” he said,adding that the cut inTDS rates may be taken up. ■ Page 2 ‘Plan to privatise 2 PSBs still under consideration’ PUBLIC SECTOR BANKS will develop their inhouse capability to assess MSMEs’ creditworthiness byfactoring in their digital footprint and EPF deposits, rather than insist on balance sheets for extending loans,financial services secretaryVivek Joshi told Prasanta Sahu. The FY22 Budget proposal to privatise two PSBs is still under consideration, he said. ■ Page 2 Continued on Page 6 Rural market driving FMCG growth Volume growth MAT (%) Mar 2025 4.4 6.1 Mar 2024 THE US ECONOMY grew faster-than-expected 2.8% in Q2, but inflation subsided, leaving intact expectations of a September rate cut from the Federal Reserve, reports Reuters. ■ PAGE 3 EXPLAINER MANKIND PHARMA HAS entered into a definitive agreement to acquire a 100% stake in Bharat Serums andVaccines (BSV) from private equity major AdventInternationalforanenterprise value of `13,630 crore, subject to closing related adjustments. “This strategic move marks a significant leap for Mankind Pharma,positioningitasamarket leader in the Indian women’s health and fertility drug market alongside access to otherhigh-entrybarrierproducts in critical care with established complexR&Dtechplatforms,”Mankind said in a late evening press release. Advent,which acquired a majority stake in BSV in 2019, was looking to exit and return liquidity to investors for over a year now. Founded in 1971, biopharmaceutical company BSV has a research and development centre in Mumbai with over 100 scientists and operations 4.2 4.2 US Q2 GDP GROWS 2.8%, KEEPS RATE CUT HOPES ALIVE PHARMATALK Budget clarifies on LTCG payable for such sales ‘No review of capital gains tax for real estate’ Urban Rural 5 4 Overall* MAT: Moving annual total calculated over 12 months *Overall FMCG growth includes urban+rural growth Source: Kantar Worldpanel PA G E 2 0 More urban homes join Parle, Britannia q-comm bandwagon top brand picks RESULTS CORNER Nestle India misses estimates in Q1 NESTLE INDIA ON Thursday missed Street estimates on both the net profit and revenue fronts for Q1 amid inflationary pressures in coffee and cocoa, reports Viveat Susan Pinto. ■ PAGE 4 Tech Mahindra Q1 profit jumps 30% EMPOWERING WINGS OF LIFE'S ANGELS TECH MAHINDRA HAS reported a net profit of `851 crore in the April-June quarter, up 30% quarter-onquarter, reports Padmini Dhruvaraj. Its revenue was `13,005 crore. ■ PAGE 10 SC: States to tax mineral rights ARUNIMA BHARADWAJ New Delhi, July 25 have powers to tax mineral rights and mineral-bearing lands over and above royalty UNAUDITED (REVIEWED) FINANCIAL RESULTS (STANDALONE & CONSOLIDATED) FOR THE QUARTER ENDED 30th JUNE 2024 Global Business ₹ 23,10,350 Cr. Up by 11.07% Global Deposits ₹ Sl. No. 9,75,183 Cr. Up by 9.86% Retail Credit ₹ 1,75,794 Cr. Up by 23.54% ₹ 3,905 Cr. Up by 10.47% Return on Assets POST RATIONALISATION OF ROYALTY RATES: ■ Odisha’s earnings have surged by 860% ■ Chhattisgarh’s earnings have jumped by 620% CONSOLIDATED Year Ended Quarter Ended Year Ended 30.06.2024 31.03.2024 30.06.2023 31.03.2024 30.06.2024 31.03.2024 30.06.2023 31.03.2024 (Unaudited) (Audited) (Unaudited) (Audited) (Unaudited) (Audited) (Unaudited) (Audited) Net Profit / (Loss) for the period (before Tax, Exceptional and / or Extraordinary items) 3 Net Profit / (Loss) for the period before tax (after Exceptional and /or Extraordinary items) 4 Net Profit / (Loss) for the period after tax (after Exceptional and / or Extraordinary items) 5 Total Comprehensive Income for the period [Comprising Profit / (Loss) for the period (after tax) and Other Comprehensive Income (after tax)] Net Pro t mineral-rich states like Jharkhand, Odisha, Chhattisgarh and West Bengal Quarter Ended Particulars No. 13,35,167 Cr. Gross Advances ₹ ■ Theverdict clarifies states ■ Theverdict to be a boon for (` in Crore) STANDALONE Up by 11.97% DEEP MINING THE SUPREME COURT’S ruling on Thursday that states have legislative powers to tax mineral rights and mineralbearing lands over and above “royalty” could potentially inflate the already-high tax burden on the employmentintensive sector, analysts and industry executives said. A possible rise in prices of minerals, ranging from coal and iron ore to deep-seated base metals, could trigger an inflationary spiral across user industries, including white goods, automobiles and electronics. Besides, the apex court's majority 8:1 ruling couldimpactahostofpetitions being considered by various high courts where mining companies challenged the levy of goods and services tax (GST) and service tax on mineral royalties. If the petitions are resolved in the government's favour,the industrywould face hefty tax liabilities. Mineral-rich states like Jharkhand, Odisha, Chhattisgarh, Karnataka, West Bengal, and Rajasthan may stand to gain from the order, and they may also opt to bring in new Women’s Savings Bank Account 1.05% 6 Refer Note 2 Refer Note 2 Reserves (excluding Revaluation Reserve) 8 Refer Note 2 Refer Note 2 Refer Note 2 Refer Note 2 Refer Note 2 Paid up Equity Share Capital 7 Refer Note 2 Securities 76,036.15 81,200.60 Up by 6 bps CET-1 10 Paid up Debt Capital / Outstanding Debt 12.05% Up by 55 bps PCR 89.22% 13 Earnings Per Share (of `2/- each) - Refer Note 3 (For continuing and discontinued operations) Up by 118 bps Credit Cost 0.90% Down by 20 bps ■ Jharkhand from 2015-16 to saw 425% rise; Karnataka 316% 2022-23 Gross NPA taxes. However, the reduced mining volumes and value additionwhichinvestorapathy could create could offset the revenue gains. Net NPA 4.14% Down by 101 bps 1.24 % Down by 33 bps Y-o-Y 16 Debt Service Coverage Ratio 17 Interest Service Coverage Ratio Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Notes: 1. The above is an extract of the detailed format of Quarterly / Yearly Financial Results filed with the Stock Exchanges under Regulation 33 and Regulation 52 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The full format of the Quarterly / Yearly Financial Results are available on the Stock Exchange websites (BSE: www.bseindia.com and NSE: www.nseindia.com) and Bank’s website (www.canarabank.com) 2. Information relating to Total Comprehensive Income and Other Comprehensive Income is not furnished as Ind AS is not yet made applicable to the Bank. 3. Figures for quarter ended June 2023 and quarter & year ended March 2024 is on Face Value of Rs.10/- per share whereas figures for June 2024 quarter is on Face Value of Rs.2/- per share. Place : Bengaluru BHAVENDRA KUMAR Date : 25.07.2024 Executive Director HARDEEP SINGH AHLUWALIA Executive Director ASHOK CHANDRA Executive Director DEBASHISH MUKHERJEE Executive Director K. SATYANARAYANA RAJU MD & CEO Continued on Page 6 BENGALURU