(1) TCS bets on Digital Banking for Growth:
The largest software exporter Tata Consultancy Services, has come out with their latest quarter results with a profit of 11.2 per cent, from the previous year quarter, which stood at Rs. 6,778 crores. The main contribution for the growth was through digital services. The Company’s CEO informs that the strength of their operating system was responsible for improvement in their quarterly results. The other reasons attributed for growth of TCS is said to be :
- Being able to meet expectations in a volatile business environment
- Adoptability to technology changes and the political climate in USA
- The positive approach of BFSI (Banking Financial Services and Insurance Division) sector.
- Future expected raise in US economy is likely to pave way for the company’s growth.
(2) Bank of Baroda Declares 200 people as Wilful Defaulters.
Including Surya Vinayak and Sai Infosystems, around 200 entities have been declared by BOB, as wilful defaulters. Who is a wilful defaulter?
i) A wilful defaulter is one who has not repaid despite capacity to do so.
ii) Also, diversion of funds could be a factor for deciding a person a wilful defaulter.
iii) PSBs burdened with a pool of bad loans have started initiating action to recover dues.
RBI had issued guidelines in July 2015 on tackling wilful defaulters. The actions proposed for such defaulters are:
- Restricting additional facilities,
- Criminal action,
- Removal of Directors of such companies from board and
- Changing the management.
Parliament Standing committee on finance had in February last year, made recommendations that banks should disclose the names of wilful defaulters with due changes in laws and regulations.