Top headlines: FM says recovery patch; after LVB crisis at Dhanlaxmi Bank

From patchy economic recovery to crisis deepening at Dhanlaxmi Bank, here top headlines this morning

Recovery patchy; stimulus at appropriate time: FM Nirmala Sitharaman

Finance Minister Nirmala Sitharaman has said that the economic recovery in the second quarter has been “patchy” so far and it is difficult to say with any degree of certainty whether the upswing would hold going forward. Dismissing criticism that the government is unwilling to provide fiscal support to revive demand and consumer spending Sitharaman said the government has an open mind on the issue and a decision on when to spend and how much to spend will be taken at the appropriate time. Read More

After LVB, Dhanlaxmi Bank shareholders oust chief executive Sunil Gurbaxani

Shareholders of Thrissur-based Dhanlaxmi Bank on Wednesday ousted managing director and CEO Sunil Gurbaxani at the bank’s annual general meeting (AGM). This is the second such ouster of a private Bank chief executive in less than a week. Last week in a coup of sorts, around 60 per cent of the shareholders at Lakshmi Vilas Bank had voted against seven directors including MD & CEO S Sundar. Read More

Unlock 5.0: Govt allows most activities; cinemas to reopen on October 15

India took a decisive step towards unlocking almost everything, with the Ministry of Home Affairs (MHA) on Wednesday lifting restrictions on cinema halls, schools, and swimming pools as part of its fifth tranche of guidelines to revive business and other activities. Cinema halls, theaters, and multiplexes have been permitted to reopen from October 15, the MHA said. Read More

Centre keeps borrowing programme unaltered at Rs 4.34 trillion in H2

In a relief to the bond market, the government has kept its full-year borrowing limit unchanged at Rs 12 trillion. It believes that revenue pick-up will compensate for its expenditure, even if it has to announce a stimulus package. Read More

Lakshmi Vilas Bank crisis: Working on a back-up plan, says Shakti Sinha

Ailing private lender Lakshmi Vilas Bank is in urgent need of capital. A clear picture on the amalgamation proposal of Clix Capital group will emerge in two weeks, Shakti Sinha, director on board of LVB, told Abhijit Lele in an interview. Sinha is part of the three-member committee of directors which would exercise the discretionary powers of the MD & CEO of the bank. Read More

Covid-19 impact: Low-interest loans likely for vaccine companies

As Indian vaccine candidates inch closer towards Phase 3 trials in December, talks on the government likely to facilitate low interest loans to these players to help scale up production are gaining ground. Multiple sources within the vaccine industry in India said while there has been no commitment from the government on the procurement of vaccines, initial volumes, or distribution plans. Read More

Indian unicorns diversifying to newer biz segments ahead of mega-IPO plans

Top Indian internet-based companies, including e-commerce firm Flipkart, ed-tech start-up Byju’s, food-delivery company Zomato and ride-hailing firm Ola, are gearing up for initial public offerings (IPOs) in two or three years that are expected to unlock a total valuation of $100 billion for these firms. Read More

Repurposing capacity for Covid-19 vaccine, say Indian pharma firms

As clinical trials for a Covid-19 vaccine get underway, Indian pharma companies are either repurposing existing capacity or sacrificing capacity for new vaccine products under development. Speaking at the Confederation of Indian Industry’s Life Science Conclave 2020, Suresh Jadhav, executive director of the Serum Institute of India (SII), said the biotechnology company has already put in place an expansion plan for new products in the pipeline. Read More

We are converting crisis into opportunity, says FM Nirmala Sitharaman

All eyes are now on the second tranche of stimulus measures from the government. Finance Minister Nirmala Sitharaman tells Indivjal Dhasmana & Shyamal Majumdar that the government is willing to spend but is yet to take a call on the timing and quantum. She does not agree with the allegations that the relation between the Centre and states has deteriorated during the second stint of the Narendra Modi government. Read More