News digest: ICICI Bank row, aviation industry, PF withdrawal, and more

ICICI Bank appoints Sandeep Bakhshi as COO, Chanda Kochhar goes on leave 

The board of ICICI Bank has appointed Sandeep Bakhshi whole-time director and chief operating officer (COO) to run the affairs of the private lender. Chanda Kochhar, managing director (MD) & chief executive officer (CEO) will be on leave, pending the probe.

The changes come amid allegations of a quid pro quo in transactions between Videocon Industries, Kochhar and her husband Deepak Kochhar’s company NuPower Renewables. READ MORE

Airlines on budget drive as rising fuel price, falling rupee start to pinch 

It is going to get hard to differentiate between a full-service carrier and a budget airline as the aviation industry goes on an economy drive. Threatened by rising fuel price and a falling rupee, airline companies are planning drastic measures ranging from freezing increments to cutting down on flights and in-flight luxuries to save and earn that extra penny.

State-owned Air India, reeling from a Rs 500-billion debt after a failed privatisation attempt, is at the forefront of cutting out the frills. Overtime pay, staff conveyance, travel expenses, and building maintenance costs are among the first casualties at Air India. The airline will also review purchase and lease of new vehicles while undertaking common contracts for transport of its pilots and cabin crew, sources said. READ MORE

Curbs on full PF withdrawal likely; move to create 'social security cover' 

You may be able to partially withdraw your Provident Fund (PF) savings even after losing your job, with the Employees’ Provident Fund Organisation (EPFO) proposing a move to create a ‘social security cover’ for formal sector workers.

Concerned with the high level of PF withdrawals, the EPFO has proposed that its subscribers — working in the private sector and counted as formal workers — be allowed to withdraw 60 per cent of their total savings, according to the proposal. However, legal experts believe the proposal may be embroiled in litigation. READ MORE

Urban power reforms: Slow start, steady pace but looming deadline
 

Urban power reforms, which aim at improving the quality of electricity supply and have the highest contribution in bettering the finances of state power utilities, are slowly picking up pace. 

Marred by a slow start, financial turmoil in power distribution companies (discoms) and the long-drawn process in starting execution, the Integrated Power Development Scheme (IPDS) is pushing states to innovate but within a tight deadline. READ MORE

Over half of 2018 IPOs trading below issue price on expensive valuations 

Several newly listed companies have seen a steep fall in their share prices in the last two months. Shares of 57 per cent of the companies listed in 2018 are currently trading below their issue price. Further, 14 of the 33 companies that listed last year, too, are trading at a discount to their initial public offering (IPO) price.

Weakness in the broader markets along with expensive valuations that these companies had commanded during their IPOs has led to this fall, say experts. The BSE MidCap index has fallen nearly 10 per cent in 2018 so far, while the large-cap Sensex is down 2 per cent. READ MORE