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The Reserve Bank of India (RBI) has barred Mumbai-based New India Co-operative Bank from issuing new loans and suspended deposit withdrawals for six months.

The central bank cited supervisory concerns and the lender's liquidity position issues over the unprecedented move. The RBI move prevents depositors from withdrawing funds as the bank faces liquidity issues.

Soon after the announcement, anxious customers were seen queuing outside various branches of New India Co-operative Bank. The RBI announced that effective from the close of business on February 13, 2025, New India Co-operative Bank is barred from granting or renewing any loans or advances.

It also cannot make any new investments or accept fresh deposits. It is also not allowed to disburse any payments. The bank is not allowed to dispose of any of its properties or make any investments or borrow funds.

The directions were necessary due to concerns arising from "recent material developments" at the bank, and to protect the interest of depositors, the RBI said. However, it did not elaborate on the specifics of these concerns.

The central bank added that eligible depositors are entitled to deposit insurance claims up to Rs 5 lakh, as per the deposit insurance scheme. Depositors have been asked to submit their claims with the bank.

At the end of March 2024, New India Co-op Bank had deposits worth Rs 2,436 crore and advances worth Rs 1,175 crore. It reported a loss of Rs 22.78 crore for FY24 and Rs 42.11 crore in FY23. In April 2024, in a similar move, the RBI had restricted Kotak Mahindra Bank from on-boarding new customers through its online and mobile banking channels and from issuing fresh credit cards.

However, on Wednesday, the RBI had lifted the curbs on Kotak Mahindra Bank following satisfactory compliance with regulatory requirements.

Adani Green Energy announced that it will withdraw from two planned wind power projects in Sri Lanka, according to a letter the company sent to a Sri Lankan government agency. 

“Adani Green Energy has conveyed its Board’s decision to respectfully withdraw from further engagement in the RE wind energy project and two transmission projects in Sri Lanka. However, we remain committed to Sri Lanka and are open to future collaboration if the Government of Sri Lanka so desires,” a Adani Group spokesperson said. 

Last month, the Sri Lankan government said it had started talks with the Adani Group to reduce the cost of electricity from the projects, which were estimated to cost a total of $1 billion. 

Under the deal with Sri Lanka, Adani Green was to build two wind power projects in Mannar town and Pooneryn village, both in the northern province of the country. Adani’s renewable energy division had earmarked a $442 million investment for wind power generation and transmission in Sri Lanka. 

The Adani Group is also involved in constructing a $700 million terminal project at Sri Lanka’s largest port in Colombo. 

Sri Lanka, which faced severe power blackouts and fuel shortages during its economic crisis in 2022, has been working to speed up renewable energy projects to reduce its reliance on expensive imported fuel. 

In May 2024, the former government in Sri Lanka had reached a deal to purchase electricity at a rate of $0.0826 per kilowatt from an Adani wind power facility planned for construction in the northwest region of the island. 

Opposition to the agreement came from activists who believed that smaller renewable energy projects were able to provide electricity at a significantly lower cost compared to Adani's proposal.

The Reserve Bank of India lifted the restrictions placed on Kotak Mahindra Bank on February 12, allowing the bank to onboard new customers through its online channels and issue new credit cards. The restrictions were originally imposed by the RBI on April 24, 2024, under Section 35A of the Banking Regulation Act, 1949.

The RBI said: "Subsequently, the bank initiated remedial measures to address the supervisory concerns and submitted compliances to the Reserve Bank. The bank also commissioned an external audit, with prior approval of RBI, to validate the compliances. Now, having satisfied itself based on the submissions, and remedial measures undertaken by the bank, the Reserve Bank, has decided to lift the restrictions placed on Kotak Mahindra Bank Limited."

The central bank imposed restrictions on the bank following an IT Examination by the Reserve Bank in 2022 and 2023, as well as the bank's ongoing failure to effectively and promptly address these concerns.

In its April 24 order, the central bank had directed the lender “to cease and desist, with immediate effect, from

(i) onboarding of new customers through its online and mobile banking channels and

(ii) issuing fresh credit cards. It had added that the bank shall, however, continue to provide services to its existing customers, including its credit card customers.

Following the restrictions, the bank implemented measures in response to concerns raised about specific aspects of its operations, particularly the IT infrastructure.

Kotak Mahindra Bank promptly addressed the RBI's concerns by implementing remedial actions and submitting required compliances. Additionally, the bank conducted an external audit, approved by the central bank, to verify compliance with regulations.

“We welcome the Reserve Bank of India’s (RBI) decision to lift the business restrictions on Kotak Mahindra Bank. This decision follows the Bank's successful implementation of remedial measures and compliance validation through an external audit. We will continue to work closely with the RBI to shortly resume digital onboarding of new customers and issuing fresh credit cards,” Kotak Mahindra Bank spokesperson said.

Shares of Kotak Mahindra Bank closed at Rs 1,943.30, up by 1.35% on 12 February.

Infosys, a leading IT services provider, is set to issue salary increment letters by the end of February, with hikes ranging from 5% to 8%. These increments will take effect in April 2025.

The company has also commenced issuing promotion letters in batches since December, indicating a strategic response to an anticipated increase in technology budgets for the coming fiscal year. 

This decision comes as the demand environment picks up, with Infosys positioning itself to capitalise on the expected rise in IT spending, Moneycontrol reported.

"Broadly, the comp (annual salary increment) that we are expecting is 6-8% in India, and the overseas comps will be in line with the earlier comp reviews," Infosys’ Chief Financial Officer Jayesh Sanghrajka said while addressing the press after the Q3FY25 results.

In a contrasting development, Infosys has faced backlash after laying off nearly 700 freshers from its Mysuru campus.

These employees, who had only been with the company for a few months since their onboarding in September 2024, were reportedly dismissed in what has been described as "a shocking and unethical move" by Harpreet Singh Saluja, the president of the IT employees' union NITES. 

The union alleged that "bouncers and security personnel" were deployed during the termination process, which has drawn significant criticism. The layoffs have sparked widespread outrage on social media, with users expressing sympathy and anger over the sudden job losses. 

One user described the situation as "truly heartbreaking," highlighting that many freshers had waited over two years after graduation to join Infosys, only to be laid off after six months. Another post referred to the scene as "the most devastating photo in recent times," underscoring the emotional impact on the affected individuals who had trusted one of India's largest IT firms for their career beginnings. 

Delays in onboarding processes have become a notable issue across the Indian IT sector, with several companies struggling to align hiring with fluctuating market demands. This has resulted in protracted waits for new hires, exacerbating the uncertainty faced by fresh graduates.

Maaza – a mango-based drink popular among millions of Indians for decades – has joined the elite club of brands that boasts of billion dollar revenues. Conceptualised and developed in India, now owned by the US behemoth Coca-Cola, Maaza has turned into a “billion dollar brand”, a top executive said today.

According to James Quincey, Chief Executive Officer of The Coca-Cola Company (Coke), Maaza emerged as a new billion dollar brand for it in 2024. “Maaza is now our 30th billion dollar brand. In 2024, our system added approximately 440,000 outlets by digital customer platforms in India, which provides more opportunities to better tailor our product, price and packaging offerings,” Quincey told the stakeholders in a post-earnings call on Tuesday.

Maaza’s emergence as a priced possession for Coke is no mean a feat. Born in 1976 in India, Maaza finds its association close with India’s then de-facto Cola King Ramesh Chauhan of Parle (now Bisleri International). Over the years since its launch Maaza, along with its sister brands like Gold Spot, Limca, Citra and Thums Up, had already established itself as a widely popular choice among Indian consumers. However, by 1995 Maaza found itself a new owner, arriving among the first sets of US multinationals post-liberalisation, Coca-Cola.

Over the last three decades Maaza’s growth held steady against the influx of competing fruit-based beverage brands both from Coke’s rivals in the market and its own stable. “Despite a flurry of fruit-based drinks in the market now, Maaza has curved out a space for itself that is not easy to steal. Its presence in consumer mindset transcends generations,” says a senior FMCG executive who had led the expansion of Maaza in the past.

According to him, Maaza proves the strength of Indian brands that, if done right, then can withstand global competition and the test of time. The only other Indian beverages brand that boost of a billion dollar or more in sales is Thums Up, which despite challenges from global fizzy drinks giants like Coca-Cola and Pepsi Cola, among others.

“In India, our business rebounded nicely during the quarter and we grew volume. We recruited consumers with innovative marketing campaigns that linked Coca Cola with music, Sprite with travel and Thumbs Up with movies,” Quincey further adds.

The Securities and Exchange Board of India (Sebi) on Tuesday barred textile firm LS Industries from the securities market for alleged stock price manipulation and fraudulent practices. The markets regulator noted that LS Industries had a market capitalisation of Rs 22,700 crore at the peak.

LS Industries, despite having a market capitalisation of Rs 5,768 crore, reported minimal revenue in the past three fiscal years. An investigation by Sebi revealed that in October 2022, former director Suet Meng Chay transferred his entire 12.12% stake in the company to Dubai-based NRI Jehangir Panikkaveettil Perumbarambathu in an off-market deal, news reports stated.

Although the shares transferred were valued at approximately Rs 154 crore based on a share price of Rs 15 each, the transaction took place at a significantly lower price of Rs 75 or $1 per share. Sebi's inquiry uncovered suspicious buy orders placed by multiple entities at the upper circuit limits at 9 am, leading to a significant increase in the share price. These actions resulted in an 11-fold increase in the share price within a short span of two months.

The regulatory body has issued a temporary order prohibiting LS Industries (LSIL), , along with its promoters and key individuals, from engaging in the trading of its shares and participating in the securities market until further notice, due to allegations of manipulating stock prices.

This action follows an investigation by SEBI into LSIL, a textile company that has reported minimal revenue. Despite recording no sales in two quarters of FY25, LSIL's stock price experienced a significant surge from Rs 22.50 in July 2024 to Rs 267.50 in September—an increase of 11 times—before plummeting to Rs 42.39 in November.

SEBI's investigations uncovered a suspected pump-and-dump scheme involving a group of traders, including Multiplier Share & Stock Advisors Pvt. Ltd. and Setu Securities Pvt. Ltd. These entities were found to have placed buy orders at upper circuit limits early on, leading to an artificial inflation of the stock's price. Subsequently, they proceeded to dump shares, resulting in a significant drop in the stock's value.

The Sebi is set to conduct a thorough investigation by May 15. Meanwhile, Sebi has instructed the NRI to furnish a comprehensive list of his assets, investments, and bank accounts, as well as to freeze any withdrawals from his accounts.