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DELHI THE HINDU 18 BUSINESS WEDNESDAY, OCTOBER 23, 2019 EEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE

market watch Shares slump the most 22-10-2019 % CHANGE Sensex dddddddddddddddddddddd 38,964 ddddddddddddd-0.85 starts probe into CEO’s conduct US Dollardddddddddddddddddddd 70.94 ddddddddddddddd0.28 Gold ddddddddddddddddddddddddddd 38,810 ddddddddddddd-0.13 in more than six years Brent oil ddddddddddddddddddddd 59.52 ddddddddddddd-0.45 Law firm Shardul Amarchand Mangaldas & Co. to investigate ‘unethical practices’ of Parekh, CFO Roy Tank 16.21% in biggest single­day fall Special Correspondent make them look more profit­ deals with allegations relat­ NIFTY 50 able. One of Infosys’s board ing to the CEO’s internation­ SPECIAL CORRESPONDENT benchmark indices snap­ PRICE CHANGE Infosys has started an inde­ members received two ano­ al travels to the U.S. and MUMBAI ping their six­day gaining Adani Ports...... 420.75...... -0.95 pendent probe into alleged nymous complaints on Sep­ Mumbai. Shares of Infosys tanked streak. ...... 1780.20...... -36.55

Axis Bank ...... 712.75...... 3.20 unethical practices by its tember 30, 2019 — one dated “Although, we have not more than 16% on Tuesday, The 30­share Sensex lost ...... 3122.30...... 35.25 CEO Salil Parekh and CFO Ni­ September 20 titled ‘Dis­ been provided any of the a day after the company said 334.54 points, or 0.85%, to Bajaj Finserv...... 8008.85. .. -257.10 lanjan Roy. turbing unethical practices’ emails or voice recordings, that it received an anony­ close at 38,963.84. The ...... 4034.15. .. -103.50

Bharti Airtel ...... 374.10...... -9.40 The action follows com­ and the second undated with we will ensure that the gen­ mous whistle blower letter broader Nifty ended at BPCL...... 534.10...... 13.80 plaints from whistle­blowers the title ‘Whistleblower com­ eralised allegations are in­ alleging unethical practices 11,588.35, down 73.50 points Britannia Ind ...... 3248.05...... -4.30 about unethical practices. plaint’, Infosys said in a vestigated to the fullest ex­ by the top brass to boost or 0.63%. ...... 453.90...... 9.75

Coal ...... 208.80...... 2.85 On Monday, the Infosys statement. tent,” said Mr. Nilekani. short­term revenues and Market participants be­ Dr Reddys Lab ...... 2810.75...... 85.90 board’s audit committee re­ Post the board meeting of profits. lieve that the stock will be ...... 19978.85. .. -297.05 tained law firm Shardul Complaints with panel October 11, 2019 the audit Infosys was the biggest under selling pressure as in­ GAIL (India)...... 129.50...... -0.05 Amarchand Mangaldas & Co. As per the company’s whis­ committee began consulta­ loser among the Sensex vestors are typically wary of Grasim Ind ...... 756.05...... 9.55

HCL Tech...... 1064.45...... -31.05 to conduct an independent tle­blower policy, both the tions with independent in­ pack, shedding 16.21% or taking positions in compa­ HDFC ...... 2114.90...... 20.45 investigation. “The board, in complaints were placed be­ ternal auditors (Ernst & ₹124.45 to close at ₹643.30. nies facing such issues. HDFC Bank...... 1239.30...... 10.30 consultation with the audit fore the audit committee on Young) on terms of reference Earlier in the day, the shares “This equates to a corpo­ Hero MotoCorp ...... 2674.65...... 28.50

Hindalco ...... 185.75...... -1.65 committee, will take such Under a cloud: To ensure an independent probe, the CEO and October 10, 2019 and before for their prima facie touched a low of ₹638.30. rate governance issue,” said

Hind Unilever ...... 2127.35...... 20.50 steps as may be appropriate CFO have been recused from the matter. * SOMASHEKAR G. R. N. the non­executive members investigation. For the country's second­ Harit Shah, Research Ana­ ICICI Bank ...... 451.15...... 13.35 based on the outcome of the of the board on October 11, “This calls into severe largest software services lyst, Reliance Securities. IndusInd Bank ...... 1341.00...... -1.65

Bharti Infratel ...... 258.80...... -2.80 investigation. tive manner. At the It all started with a group, 2019. question board­level pro­ company, this was the big­ “Given that it is so widely Infosys ...... 643.55. .. -124.30 “Our statutory auditors, appropriate time, we will calling itself ‘ethical em­ Additionally, on October cesses at the IT major, given gest single­day fall in over six held, it is very likely that Indian OilCorp...... 146.45...... 0.85 Deloitte India, have also provide a summary of the in­ ployees’, filing a whistle­ 16, 2019 the company was that when founder Nandan years. It had lost over 21% on some investors will vote with ITC ...... 248.90...... 2.40

JSW Steel...... 219.70...... -3.65 been completely updated on vestigations results,” said blower statement with the made aware of a letter dated Nilekani was brought back April 12, 2013 after its reve­ their feet and sell at least Kotak Bank ...... 1628.85...... 13.60 this matter post the board Nandan Nilekani, chairman, Infosys board and the U.S. October 3, 2019 which was on the board, his specific fo­ nue growth forecast was some of their holdings ,” he L&T...... 1442.55...... -5.25 meeting of October 11, 2019. Infosys, in a statement. Securities and Exchange purportedly written to the cus was to ensure high cor­ much below industry added. Motilal Oswal Finan­ M&M ...... 595.80...... 2.50 “Because the investigation Mr. Nilekani said to ensure Commission, alleging that Office of Whistleblower Pro­ porate governance standards guidance. cial Services highlighted the ...... 7256.25...... -46.05

Nestle India Ltd...... 15020.00. .... 184.55 is ongoing, there will be no independence in the investi­ the company’s top execu­ tection Program, Washing­ post the Vishal Sikka fiasco,” Incidentally, the huge fact that Infosys has found it­ NTPC ...... 120.90...... -0.15 further comment so that in­ gations, the CEO and CFO tives were bending rules ton D.C. said Harit Shah, research losses in the index heavy­ self at the centre of whistle­ ONGC ...... 144.25...... 0.75 vestigation may be conduct­ have been recused from this with regard to accounting of “The undated whistle­ analyst with Reliance weight weighed on the en­ blower complaints five times PowerGrid Corp ...... 205.05...... 2.50

Reliance Ind ...... 1414.15...... -2.20 ed in a thorough and objec­ matter. revenue from large deals to blower complaint largely Securities. tire market as well with the in the last 10 years.

State Bank ...... 270.50...... 0.85

Sun Pharma ...... 405.45...... 3.80

Tata Motors ...... 131.75...... -5.10

Tata Steel ...... 354.50...... -5.10 TCS ...... 2051.40...... -5.95 ...... 717.65...... -16.55 posts ₹112 cr. net loss on tax adjustment Titan ...... 1329.45...... 28.85

UltraTech Cement...... 4249.30...... -46.00 UPL...... 597.00...... -2.00 Q2 profit rises 51% Lender’s slippages remain elevated; net interest margin at 3.51% is highest in last nine quarters Vedanta ...... 149.15...... -1.10

Wipro ...... 253.55...... 4.65 SPECIAL CORRESPONDENT tire DTA part of the balance quarter of the previous finan­ ...... 51.80...... 0.40 Savings, current account deposits up Mumbai Zee Entertainment ...... 250.45...... 0.25 sheet gets re­stated to 25%. cial year. Corporate slippages SPECIAL CORRESPONDENT account deposits grew by Private sector lender Axis That cuts down the asset size were at ₹2,862 crore. Provi­ Mumbai 20% while current account Bank has reported a ₹112 of the DTA book and that is sion for bad loans stood at EXCHANGE RATES Kotak Mahindra Bank post­ deposits grew by 22%, the crore net loss for the quarter ₹2,138 crore which we have ₹2,701 crore, compared with Indicative direct rates in rupees a unit except yen at 4 p.m. on October 22 ed a 51% increase in standa­ bank said. “Advances as on ended September 30 on one­ taken through the P&L this ₹2,686 crore in Q2 last year CURRENCY TT BUY TT SELL lone net profit for the se­ September 30, 2019 were up time tax impact. time,” said Jairam Sridharan, and ₹2,886 crore in Q1FY20.

US Dollar...... 70.73...... 71.05 cond quarter of the current 15% to ₹213,299 crore.” But for this, profit could chief financial officer, Axis “Including provisions for Euro ...... 78.78...... 79.14 financial year to ₹1,724 Gross NPAs as at Septem­ have grown 157%, the bank Bank during a media standard assets and other British Pound...... 91.56...... 91.99 said on Tuesday. interaction. provisions, total provisions Japanese Yen (100) . .. . 65.11...... 65.42 crore. Net interest income ber 30 was 2.32% compared Chinese Yuan ...... 9.99...... 10.04 (NII) for the quarter in­ with 2.15% a year ago and “Over the course of the stood at ₹3,518 crore,” the Swiss Franc ...... 71.51...... 71.87 creased 25% to ₹3,350 crore 2.19% at the end of the pre­ last multiple years as we have Operating profit up 45% bank said. Singapore Dollar ...... 51.91...... 52.15 made provisions, we have Operating profit for the quar­ “We need to improve in Canadian Dollar...... 53.96...... 54.23 while net interest margin for vious quarter. Malaysian Ringitt ...... 16.89...... 16.97 Q2FY20 at 4.61% was up “As on September 30, been accumulating deferred ter grew 45% year­on­year to couple of areas. The bank’s Source: from 4.19% in Q2FY19. 2019, SMA2 outstanding was tax asset (DTA). That number ₹5,952 crore. Net interest in­ slippage numbers have re­ The bank’s current and ₹431 crore or 0.2% of net ad­ was ₹7,770 crore at the end of come grew 17% to ₹6,102 mained elevated this quar­ savings account deposits, as vances,” the bank said. first quarter of the financial crore while net interest mar­ ter,” said Amitabh Chaudhry, BULLION RATES CHENNAI a proportion of total depo­ SMA2 are those loans year. So, we have been ac­ gin was 3.51%, the highest in MD & CEO of Axis Bank. October 22 rates in rupees with pre- cumulating that at the rate of last nine quarters. with 5.96% a year ago. Ho­ quarter compared with “Casa [current and savings vious rates in parentheses sits, stood at 53.6% as at end where interest or principal September compared with is due for more than 60 days 35%. But now, with the tax The gross NPAs of the wever, slippages stayed ele­ ₹4,798 crore in Q1FY20 and account ] is another area we Retail Silver (1g) ...... 49.3...... (49) 22 ct gold (1 g) ...... 3652...... (3657) 50.2% a year ago. Savings but less than 90 days. rate reduced to 25%, that en­ bank was 5.03% compared vated at ₹4,983 crore in the ₹2,777 crore of the same need to do better,” he said. Asian Paints net up 67.5% at ₹823.41 cr. IRDAI imposes Bajaj Finance Q2 profit Two­wheelers ₹1.01 crore boost profit of Decorative segment sees high double­digit volume growth fine on insurer highest ever, rises 63% Rane Brake Special Correspondent The automotive Board okays raising ₹8,500 cr. capital MUMBAI <> Special Correspondent Special Correspondent coatings business HYDERABAD SPECIAL CORRESPONDENT CHENNAI Asian Paints reported a continued to be hit Gross 67.5% rise in its second quar­ The Regulatory Mumbai <> Rane Brake Lining Ltd., by the slowdown non-performing ter consolidated net profit to and Development Authori­ Non­banking financial ser­ (RBL), a leading manufac­ in the automobile asset (NPAs) and ₹823.41 crore. ty of India (IRDAI) has im­ vices company Bajaj Finance net NPA ratios turer of brake linings, disc The profits came on the industry posed penalties totalling reported 63% increase in the pads and clutch facings, were at 1.61% and back of a 9.4% rise in reve­ ₹1.01 crore on Cholaman­ consolidated profit after tax posted a 40.5% increase in nues to ₹5,050.66 crore, led struction space,” Mr. Anand dalam MS GIC. for the second quarter of the 0.65% its net profit to ₹7.46 crore by high double digit growth added. One of them, for ₹1 financial year to ₹1,506 core BHFL, which recorded a for the second quarter end­ volume in the decorative bu­ The company’s board has crore, is for violation of as compared to ₹923 crore growth of 141% over the AUM ed September 2019, aided siness segment in India. approved the payment of an norms related to payment reported in the same period as on September 30, 2018. by higher sales from the “The decorative business interim dividend of ₹3.35 per of commission. of the previous year, the Gross non­performing as­ two­wheeler segment. segment in India registered a share. “The authority imposes company said. This is the sets (NPA) and Net NPA ra­ During the period, total high, double­digit volume The firm’s nternational operations did better than in the The company distributed a penalty of ₹1 crore for highest quarterly profit tios were at 1.61% and 0.65% net revenue declined 7.6% growth, though lower than previous quarter with improvement in Nepal and Egypt. an interim dividend of ₹2.85 violation of Clause 15 of made by the company. respectively, as at end to ₹112 crore. that witnessed in the first per share for FY2018­19. To­ schedule I of IRDA (Health “This includes the impact September. “The volume drop in Q2 quarter. Automotive coat­ from the benign raw mate­ “International operations tal dividend of ₹10.50 per Insurance) Regulations, of a lower corporate tax rate. The board of Bajaj Fi­ was more pronounced ings JV (PPG­AP) business rial price environment,” said performed better than the share was distributed for 2013 which clearly speci­ BFL intends to exercise the nance has approved raising than Q1. RBL managed to continued to be impacted by K.B.S. Anand, managing di­ previous quarter with im­ FY2018­19. The dividend fies that no commission option to compute corpo­ capital of ₹8,500 crore control major cost ele­ the slowdown in the auto­ rector and CEO, Asian Paints provement in the key units payout ratio was 56.8% for shall be payable to any in­ rate tax at lower rate through a qualified institu­ ments and post good mar­ mobile industry and even Limited. of Nepal and Egypt. FY 2018­19. termediary on the accep­ (25.17%),” Bajaj Finance said. tional placement. gin. ln the near term, maxi­ the Industrial Coatings JV The company’s profit be­ “Both the segments in the The firm’s shares on BSE tance of a ported policy,” The assets under manage­ The capital to be raised mising sales opportunities (AP­PPG) business was im­ fore depreciation, interest, Home Improvement catego­ closed down 2.03% at the order issued by IRDAI ment (AUM) increased 38% during the quarter is meant and controlling cost re­ pacted by demand slow­ tax and other income ry viz. the Kitchen (Sleek) ₹1,779.80 in a weak Mumbai chairman Subhash C. to ₹135,533 crore as on Sep­ to support the growth of the main top priorities to navi­ down. (PBIDT) for the quarter and Bath (Ess Ess) business, market on Tuesday. The re­ Khuntia said. The other pe­ tember 30, which includes business over the next few gate the tough market envi­ The entire coatings busi­ jumped 13% to ₹954.82 were impacted by the slow­ sults were announced after nalty of ₹1 lakh pertained AUM of ₹25,714 crore of its years, Bajaj Finance Limited ronment,” said L. Ganesh, ness, however, benefited crore. down in the real estate con­ closure of market hours. to motor insurance. housing finance subsidiary, said. chairman, Rane Group. Shanthi Gears BoM Q2 profit jumps Grasim to form JV with German Coromandel Q2 net drops on higher cost over fourfold to ₹115 cr. company to produce insulators International net up 38% Bad loans provision falls to ₹404 crore Profit rises due to lower tax provision Special Correspondent Composite hollow core insulators are used in power industry CHENNAI SPECIAL CORRESPONDENT Special Correspondent The standalone net profit Mumbai Special Correspondent quirements of Indian and HYDERABAD of Shanthi Gears Ltd., State­owned Bank of Maha­ MUMBAI global OEMs in the power Fertiliser­maker Coroman­ (SGL) a subsidiary of Tube rashtra reported a net profit Limited equipment industry, helping del International has report­ Investments of India Ltd. of ₹114.66 crore for the se­ (Grasim) has signed a defini­ them to enhance their pro­ ed a consolidated net profit (TII), for the second quar­ cond quarter, mainly due to tive agreement to form a duct proposition for the T&D of ₹503.90 crore for the ter ended September 2019 fall in provisioning, as com­ joint venture company (JVC) utilities worldwide. quarter ended September, fell to ₹8.36 crore from the pared to ₹27 crore reported in India with Maschinenfa­ Composite hollow core in­ an almost 38% increase ₹9 crore registered during during the same period of brik Reinhausen GmbH (MR) sulators is the fastest grow­ compared to the ₹365.57 the corresponding period the previous year. of Germany for manufacture ing segment of insulators, crore it had posted in the last year due to an increase Provision for bad loans and sale of Composite Hol­ and improves the perfor­ year­earlier period. in material cost. fell sharply to ₹404 crore for low Core Insulators (CHCI) mance as well as safety of Net profit rose even as the The gear and gear­pro­ the quarter, as compared to to serve the power transmis­ power equipment. consolidated total income An above normal monsoon duct maker reported a ₹942 crore reported in the sion and distribution (T&D) Kumar Mangalam Birla Kalyan Ram Madabhushi, declined by 3% to ₹4,867.48 in most markets, helped 12.77% increase in its reve­ same period the previous of RBI guidelines, and the industry globally. CEO – Global Chemicals and crore. The rise in profit is improved crop sowing and nue from operations to year. bank held 100% provision in The JVC, Aditya Birla Pow­ unit of MR), the second lar­ Group Business Head — Fer­ largely due to a significantly agri­input consumption. ₹70.9 crore. Asset quality of the bank respect of such advances. er Composites Limited gest hollow composite insu­ tilisers and Insulators, Adi­ lower tax provision of The company made improved, with gross non­ “In respect of certain (ABPCL), in which Grasim lator player globally, with ov­ tya Birla Group said, “As an ₹110.99 crore compared to an above normal south west good strides in the replace­ performing assets (NPAs) loan accounts, there is sig­ will hold 51% stake, will set er five decades of combined insulating solutions provider ₹194.42 crore in the same monsoon in most of the ad­ ment market. Growth­led coming down to 16.86% of nificant erosion of securities up a CHCI manufacturing experience in the insulator to the power industry for ov­ period last year. dressable markets, which strategies of enhancing effi­ the gross advances from and/or chances of recovery plant at Halol in Gujarat, at a industry,” Grasim said in a er 50 years, this venture is a Describing the perfor­ improved crop sowing and ciencies, exploring new 18.64% a year ago. are bleak. Therefore, bank cost of ₹100 crore. statement. natural next step for Grasim mance as strong, MD Sa­ agri­input consumption,” he markets and enlarging cus­ The bank said that during has made 100% provision in “This joint venture brings ABPCL will build a fully to expand into the compo­ meer Goel said it was driven said. The second phosphor­ tomer base has helped the the quarter ended Septem­ respect of 17 accounts for together Aditya Birla Insula­ integrated CHCI plant at Ha­ site hollow insulator seg­ by superior sales mix, effi­ ic acid plant at Visakhapat­ company to remain fo­ ber 30, 2019, loans and ad­ the half year ended Septem­ tors (a unit of Grasim), the lol, bringing the latest tech­ ment and we are happy to cient manufacturing, im­ nam was commissioned cussed on a path to steady vances amounting to ber 30, 2019. Total provision third largest global porcelain nology for composite hollow partner with the global qual­ proved marketing capabili­ during the quarter, in line growth, said the company ₹2,224.49 crore had been against these accounts is insulator player and Rein­ insulators from Europe. It ity leader in this segment, ties and effective sourcing. with the plan and commer­ in a regulatory filing. classified as fraud, in terms ₹1,606.15 crore,” it said. hausen Power Composites (a will serve the insulator re­ MR.” “This was well supported by cial production had started. CM M ND-NDE YK