by Elton Gomes
Tesla fans might be in for a treat. The electric vehicles company CEO Elon Musk might be visiting India next year. That gives us reason to hope that Tesla cars might soon be visible on Indian roads. In other news, Chinese telecommunications company ZTE is likely to be breathing a sigh of relief after the IS lifted its ban. Here are five important business stories that you may have missed from last week.
Fraud-hit Punjab National Bank eyes comeback
State-run Punjab National Bank (PNB) saw a large chunk of its earnings wiped out due to the Nirav Modi scam. But now the bank might report the biggest bank profit in India by selling some assets, as per people knowledgeable of the matter. The bank’s earnings have been boosted by asset sales and bad-loan recoveries, and it is targeting a net income of more than 50 billion rupees for the three months through September 30, the people added. A significant portion of the earnings is said to come from a planned sale of PNB’s stake in its housing finance unit, the people, who did not wish to be named on account of privacy, told Bloomberg Quint. In the January-March quarter, PNB registered a net loss of Rs 5,367, compared with a measly profit of Rs. 307 crore for the financial year before.
SEBI plans to tighten rules for auditors, valuers
Seeking to put an end to scams and frauds, the Securities and Exchange Board of India (SEBI) proposes amendments to tighten laws governing auditors and third party persons hired by listed companies for the purpose of auditing financial results. The Kotak Committee suggested that SEBI should have well-defined powers to act against auditors and third party persons holding statutory duties. SEBI plans on giving the board of directors of the company the authority to take appropriate action after a probe is conducted against an individual or firm found in violation of any regulations. Once effective, the new rules will bring the activities of such entities under SEBI’s purview. The securities regulator has issued a consultation paper in this regard, and has sought feedback from market players within a month.
US lifts ban on companies selling to Chinese telecom company ZTE
The US Department of Commerce lifted a ban on companies selling products to telecom company ZTE, thereby allowing the Chinese firm to resume business. As part of the settlement reached in June, the ban was lifted after ZTE deposited $400 million in a US bank escrow account. The settlement also involved a penalty of $1 billion that ZTE paid to the US Treasury in June. President Trump was of the opinion that the ban could lead to the loss of several jobs and urged the Commerce Department to work out a deal. After the Pentagon banned ZTE phones claiming they were a security threat, the Chinese firm was struggling for survival, with China’s economy staring at significant uncertainty.
SpaceX founder Elon Musk might visit India next year
Elon Musk was asked on Twitter whether he plans to visit India. His reply: Probably early next year. Wonder if it is to launch Tesla in India or accept the Modi government’s proposal to Make in India.
Musk has shown interest in launching Tesla’s electric vehicles in India, and wanted to bring his brand here in 2017. But Indian regulations and policies have not been very generous. Musk tweeted in May: Would love to be in India. Some challenging government regulations, unfortunately. Musk added, Deepak Ahuja, our CFO, is from India. Tesla will be there as soon as he believes we should, Hindustan Times reported.
Andhra Pradesh tops ease of doing business list, Telangana in second spot
Andhra Pradesh topped the list of states and union territories ranked as per ease of doing business, as revealed by data recorded by the World Bank and the Department of Industrial Planning and Promotion. Andhra Pradesh retained its top spot, while Telangana came in second. Haryana, Jharkhand, and Gujarat occupied third, fourth, and fifth places respectively. Andhra Pradesh scored a total of 98.42 percent, with a host of factors contributing to its top position. A high rate of implementation of reforms has facilitated businesses in the state. In addition, Andhra Pradesh has in place several reforms to make government data readily available, thereby making the system transparent. These and other factors have propelled Andhra Pradesh to the top.
Elton Gomes is a staff writer at Qrius