Category: Corporate

IT services giant Cognizant has announced salary hikes for around 80% of its eligible workforce, effective November 1, 2025. The long-awaited move brings clarity and assurance to employees after months of uncertainty over the company’s annual increment cycle.

The decision was confirmed during the company’s second-quarter earnings call, where Cognizant reiterated its commitment to awarding merit-based hikes to the vast majority of staff in the second half of the year. The hikes will apply to employees up to and including the Senior Associate level, with the quantum varying based on performance and location.

In India, consistent high performers can expect increases in the higher single-digit range, while top-rated employees are likely to receive the most significant raises. “Top performers will receive the highest increases,” a company spokesperson said, adding that earlier this year, most associates received their highest bonuses in three years, ranging from 85% to 115%.

Traditionally, Cognizant begins its increment cycle from August 1, but the decision was delayed this year due to global economic headwinds. Recent tariff actions by U.S. President Donald Trump have added to the uncertainty, particularly a 25% tariff on Indian goods effective August 7, and a similar penalty that was announced a day earlier, set to begin August 27 for purchasing Russian oil and arms.

These external pressures have led most Indian IT firms to tread cautiously, with Tata Consultancy Services (TCS) being one of the few to announce salary hikes from September 1.

Despite the challenging environment, Cognizant has remained focused on workforce expansion and retention. The Teaneck-headquartered firm added approximately 7,500 employees in the June quarter, pushing its total headcount to 343,800. Attrition also showed improvement, falling to 15.2% over the last 12 months.

Looking ahead, the company plans to hire between 15,000 and 20,000 freshers in 2025. CEO Ravi Kumar S noted that the June quarter marked one of the strongest periods for headcount growth, largely driven by fresher hiring in India.

India’s push for greener fuels could be hitting an unexpected speed bump — the insurance sector. Some insurers have warned they may reject claims if an engine fails after using E20 petrol in vehicles not designed for it.

The government’s ethanol blending programme, hailed by policymakers as a win-win for farmers, the environment, and energy security, is drawing resistance from both automakers and vehicle owners. While the Centre aims for nationwide availability of E20 — a blend of 80 percent petrol and 20 percent ethanol — by 2025–26, concerns are emerging over its compatibility with the bulk of India’s existing vehicle fleet.

A recent Moneycontrol report noted that many automakers have cautioned about the technical risks of using E20 in vehicles built for E10 — which contains just 10 percent ethanol. Those risks are now being echoed by insurers.

On August 8, motor insurer ACKO publicly stated that using the wrong fuel could void claims. Responding to a user query on X, ACKO clarified: “In case of engine failure due to incorrect fuel usage, the claim would not be admissible. This falls under gross negligence as per our policy terms.”

While Union ministers Hardeep Singh Puri and Nitin Gadkari have insisted there are no proven cases of E20 causing vehicle damage, anecdotal evidence from consumers and data from surveys point to a more complex picture. A LocalCircles survey found that petrol vehicles running on E20 reported mileage drops exceeding 10 percent.

One senior general insurance executive, speaking on condition of anonymity, explained that ethanol burns cleaner than petrol but produces less energy — pure ethanol has about 30 percent lower energy content. This, he said, inevitably impacts mileage. Over time, prolonged use in non-compliant engines can also cause mechanical damage.

Technical concerns include ethanol’s tendency to absorb moisture, leading to “phase separation” in fuel tanks, where water-laden ethanol settles at the bottom. This can corrode metal components, cause rust, and degrade rubber parts such as fuel lines, seals, and gaskets — especially in older, E10-compliant vehicles.

E20-compliant vehicles, in contrast, are built with ethanol-tolerant coatings and corrosion inhibitors, and their engines are calibrated for the correct air–fuel mix. Still, these models require periodic replacement of rubber parts to maintain performance.

For insurance customers, the critical issue is whether existing motor policies will cover damage caused by E20 in E10 vehicles. Even “Engine Protection Plus” add-ons, which cover failures due to water ingress or oil leakage, may not apply if incorrect fuel usage is deemed the root cause.

Most vehicles sold in India before 2023 — such as the 2018 Maruti Suzuki Swift or 2019 Hyundai i20 — are E10-compliant. Examples of E20-ready models include the 2024 Honda City and 2023 Toyota Hyryder.

India’s ethanol blending programme began in 2006 with 5 percent ethanol. The original target of 20 percent by 2017 was missed due to supply and infrastructure challenges. The revised 2025–26 goal now appears within reach — but unless the insurance and auto sectors align with the government’s environmental ambitions, the road to greener fuels may get bumpier.

New Delhi:  ICICI Bank has rolled back part of its recent hike in minimum average balance (MAB) requirements for new customers in urban areas, following widespread criticism both online and offline. The bank had faced strong pushback after increasing the MAB from ₹10,000 to ₹50,000 last week. Now, the MAB has been revised down to ₹15,000 which is still higher than the original, but significantly lower than the controversial hike.

In a statement released Wednesday, the bank acknowledged the pushback: “We had introduced new requirements for the monthly average balance for new savings accounts opened from August 1, 2025. Following valuable feedback from our customers, we have revised these requirements to better reflect their expectations and preferences.”

The revised minimum balance requirements stand as follows:

• Metro and urban locations: ₹15,000
   
• Semi-urban locations: ₹7,500
   
• Rural areas: ₹2,500
   

Pensioners below 60 and students from 1,200 select institutions will continue to be exempt from maintaining a minimum monthly average balance.

It was just last week, on August 9, ICICI Bank had announced a steep hike, raising the MAB for metro and urban customers from ₹10,000 to ₹50,000, semi-urban from ₹5,000 to ₹25,000, and rural areas from ₹2,500 to ₹10,000. Customers failing to meet these requirements faced penalties of ₹500 or 6% of the shortfall, whichever was lower.

The move was widely condemned as anti-consumer and disconnected from the realities of the average Indian saver. Indian National Congress spokesperson Shama Mohamed called it “a blow to the middle class.”

RBI Governor Sanjay Malhotra clarified that the central bank does not regulate minimum balance requirements for savings accounts. “It’s up to individual banks to decide. Some have set it at ₹10,000, some at ₹2,000, and others have waived it. It’s not within the RBI’s regulatory domain,” he said.

As a result of this change, the ICICI Bank’s stock value dipped slightly by 0.07% to ₹1,421.15 on the BSE, even as the benchmark Sensex climbed 0.38% to close at 80,539.91.

The partial rollback signals a course correction by the country’s second-largest private bank, which now aims to keep the rates in line to match the financial behavior and expectations of its new-age customers.

Vishal Mega Mart’s shares surged by upto 8% after the company posted a strong financial performance for the first quarter of the current fiscal year. The retail chain reported a 37% year-on-year jump in net profit, driven by robust sales growth, improved operational efficiency, and expanding store footprint.

For the quarter ended June 30, Profit After Tax (PAT) rose 37.2% to Rs 206.10 crore from Rs 150.10 crore in the same quarter last year, with the PAT margin improving to 6.6% from 5.8%. Revenue from operations grew 21% YoY to Rs 3,140.30 crore, compared to Rs 2,596.30 crore in Q1FY25. Gross profit stood at Rs 891.30 crore, up 21.6% from Rs 733.10 crore a year ago, translating to a gross profit margin of 28.4%. 

Management attributed the performance to a combination of factors, including targeted promotional campaigns, strategic inventory management, and a sharper focus on high-margin categories such as apparel and home essentials. The company also benefited from operational cost optimization, which helped improve EBITDA margins by 80 basis points to 9.2%.

Vishal Mega Mart continued its aggressive expansion strategy during the quarter, adding 24 new stores, bringing the total count to 670 outlets across India. The company aims to cross the 750-store mark by the end of the current fiscal year, focusing on Tier-II and Tier-III cities to tap into the growing middle-class population.

Digital initiatives also played a role in driving growth. Vishal Mega Mart has been scaling its omni-channel capabilities, integrating its online and offline platforms to provide a seamless shopping experience. The company has expanded its click-and-collect services and partnered with delivery platforms to cater to customers in smaller towns.

Analysts remain optimistic about the company’s outlook, citing its strong presence in value retail, continued expansion in underserved markets, and ability to manage costs effectively. However, they also cautioned that inflationary pressures and potential supply chain disruptions could pose short-term challenges.

The retail sector in India has seen a revival in demand post-pandemic, aided by festive spending, increasing urbanization, and rising disposable incomes. Vishal Mega Mart’s focus on affordable fashion, household goods, and everyday essentials positions it well to capitalize on these trends. The company has reiterated its guidance for double-digit revenue growth and margin expansion for the full fiscal year, supported by store additions, improved product mix, and operational efficiencies.

With strong quarterly results, a clear expansion roadmap, and growing brand loyalty, Vishal Mega Mart is expected to maintain its momentum in the competitive retail landscape.

Acer, the Taiwanese electronics giant, inaugurated its new state-of-the-art manufacturing facility in Puducherry on August 13, 2025, marking a significant expansion in India's technology production landscape and promising to create hundreds of high-skill jobs in the coastal union territory.

The facility, developed in partnership with Plumage Solutions, will produce 300,000 laptops annually alongside computer monitors, All-in-One desktops, servers, workstations, and power adapters. This is Acer's strategic plan so as to reduce import dependency and cater to the growing IT hardware demand in India.

"India is not just a key market for Acer, it's a strategic pillar for our future growth. This facility will play a crucial role in ensuring faster go-to-market, maintaining quality excellence, and supporting India's vision of becoming a global manufacturing hub." said Harish Kohli, President, and Managing Director of Acer India, in the inauguration ceremony.

Local Impact and Investment

Puducherry, prominantly famous for its French colonial heritage rather than high-tech manufacturing, the facility will bring about economic transformation. Local officials estimate over 500 direct jobs within the first year, with additional opportunities in logistics and support services.

"This is exactly the kind of high-skill employment our youth need," said a Puducherry government representative. "Young engineers who might have migrated to Bangalore or Chennai can now stay closer to home."

Plumage Group has committed  to invest ₹50 crore over the next three to four years to scale operations. "This partnership is more than a commercial arrangement, it is a shared commitment to building a sustainable and globally competitive manufacturing ecosystem. We aim to set new benchmarks for quality, efficiency, and innovation.” said Mukesh Gupta, Managing Director of Plumage Group. 

Strategic Alignment

The facility matches with the Government of India's 'Make in India' and 'Vocal for Local' initiatives, aimed to establish global manufacturing standards to India. The domestic impact is surely there, the plant is focused to make a significant contribution to India's electronics exports, to meet the country's expected target of $300 billion in electronics production by 2026.

Industry analysts further suggest Acer's commitment could influence other manufacturers' location decisions, as global companies always look for supply chain diversification. This  facility joins a growing list of international technology firms establishing operations in India, reflecting the country's improving infrastructure and skilled workforce.

New Delhi: India’s retail inflation cooled to just 1.55% in July 2025, its lowest level in nearly eight years, thanks to a steep drop in food prices. The last time inflation was this low was back in June 2017, when it stood at 1.46%.

This marks the ninth straight month of easing inflation, as per the latest Consumer Price Index (CPI) data released by the Ministry of Statistics and Programme Implementation on Tuesday (August 12).

The fall was largely led by a deflation in food and beverage prices, which dropped by 0.8% in July—sharper than the 0.2% decline in June, and a dramatic turnaround from 5.1% inflation in July 2024.

Key food items such as vegetables, pulses, spices, and meat saw prices fall significantly. Vegetable prices dropped by 21%, while pulses fell 14%, driven by both a high base effect and softening prices in the market.

“Food inflation is expected to remain under control, thanks to healthy monsoon progress, strong sowing in the kharif season, and good reservoir levels,” mentioned Rajani Sinha, Chief Economist at CareEdge Ratings.

Even core inflation excluding food and fuel eased to 4.1% in July from 4.4% in June, inching closer to the Reserve Bank of India’s (RBI) target of 4%.

Inflation in pan, tobacco, and intoxicants remained unchanged at 2.4%, while the clothing and footwear segment saw a marginal dip to 2.5%. Housing inflation held steady at 3.2%, and prices in the fuel and light category edged up slightly to 2.7%, compared to 2.5% in June. Other categories within the Consumer Price Index (CPI) showed little movement in July. 

Dipanwita Mazumdar, Economist at Bank of Baroda, expects inflation to stay low through the rest of the year due to a statistical high base and easing global commodity prices. She stated. “While global attention is on tariff-related inflation, India is benefiting from favourable conditions. The weakness in global growth is helping keep commodity prices in check, which offsets some of the impact of higher tariffs.”

However, she cautioned that if India is forced to stop importing oil from Russia due to pressure from U.S. President Donald Trump, turning to countries like Kuwait and Iraq could help soften the impact.

With inflation staying well below the RBI’s comfort range of 2–6%, everyone will be watching closely to see how the central bank acts in its upcoming policy decisions.

The Securities and Exchange Board of India (SEBI) has imposed market bans of up to five years and monetary penalties totalling ₹120 crore on six former executives of Dewan Housing Finance Corporation Ltd (DHFL), including its promoters Kapil and Dheeraj Wadhawan, for their involvement in a massive loan diversion scheme.

In a final order issued Tuesday, SEBI found that DHFL, under the leadership of the Wadhawan family and senior management, ran an elaborate fraud from 2006 to 2019. The company extended unsecured loans to a network of shell entities, dubbed “Bandra Book Entities” (BBEs), which were linked to the promoters. These loans, totalling ₹14,040.50 crore by March 2019, were falsely recorded as retail housing loans, bypassing standard due diligence.

Kapil and Dheeraj Wadhawan, who served as CMD and Director, respectively, have each been fined ₹27 crore and banned from accessing the securities market or holding key roles in listed or fundraising companies for five years. Rakesh and Sarang Wadhawan, who held non-executive positions on DHFL’s board, face four-year bans and fines of ₹20.75 crore each. Former JMD and CEO Harshil Mehta and ex-CFO Santosh Sharma have been barred for three years, with fines of ₹11.75 crore and ₹12.75 crore each.

SEBI’s 181-page order describes how DHFL disguised inter-corporate loans as retail credit, using fake loan accounts, a fictitious "Bandra branch," and multiple accounting systems to conceal the diversion. Despite receiving no repayments from BBEs, DHFL continued to book interest income, creating the illusion of profitability and misleading shareholders and the public between FY 2007-08 and FY 2015-16.

Investigators found that ₹5,662.44 crore was disbursed to 39 BBEs, and 40% of that was routed to 48 other promoter-linked entities. SEBI concluded that the fraud was masterminded by Kapil and Dheeraj Wadhawan and enabled by the remaining executives.

The regulator had issued interim restrictions in September 2020. The final order concludes a long-running investigation into one of India’s largest financial scandals in the housing finance sector, marking a strong regulatory response to corporate misconduct.

Adani Digital Labs (ADL), the technology wing of Adani Airport Holdings, unveiled a suite of integrated digital services on Wednesday, August 13,  aimed at revolutionizing the travel experience across its network of airports in India. At the heart of this launch is Adani Rewards, India’s first loyalty program designed specifically for domestic airport passengers.

Value-added and innovative royalty program

This digital initiative is available through the revamped Adani OneApp, and it introduces a seamless ecosystem where travelers can earn and redeem rewards across a wide range of services, such as food and beverage outlets, retail stores, duty-free shopping, parking, and meet-and-greet services within all Adani-managed airports.

Unlike the traditional airline loyalty programs that usually focus on flight miles and ticket classes, Adani Rewards is accessible to all passengers, regardless of their carrier or class of travel, and is uniquely positioned to enhance every aspect of the on-ground airport experience.

“The new ADL is about bringing fresh energy, innovation, and deep digital expertise to the aviation space. We aim to deliver a digital-first experience that reduces passenger stress and makes travel simpler, smarter, and more enjoyable,” said Srushti Adani, Director of Adani Digital Labs. 

A Customized Airport Services Experience 

This service launch also marks the opening of ADL’s new 150-seat technology hub in Ahmedabad. This center will spearhead the development of future digital products focused on solving major pain points faced by passengers, such as difficulty navigating terminals, locating services, and managing queues.

Beyond loyalty, the upgraded Adani OneApp offers features like lounge booking, online ordering from airport outlets with gate delivery, and real-time parking reservations, bringing multiple touchpoints of the travel journey into one intuitive platform.

This rollout is the first phase of ADL’s long-term digital transformation strategy for India’s airport ecosystem, with plans to further expand personalization, automation, and AI-driven services in the months ahead.

A recent Bank of America (BofA) survey shows India has tumbled from the top to the bottom of Asia’s equity investment ranking within three months, with global fund managers turning cautious amid renewed tariff threats from U.S. President Donald Trump.

In the most recent survey, conducted among 99 portfolio managers managing approximately $183 billion, 30% reported being underweight on India, while just 10% said the same for Malaysia and 20% for Thailand. This marks a sharp reversal from May when India displaced Japan as Asia’s favorite, backed by 42% of fund managers overweight on it.

The sudden shift is being driven by Trump’s announcement of 50% tariffs on Indian imports, imposed as part of U.S. pressure over India’s continued procurement of Russian oil. These levies have revived concerns over global trade friction, casting a shadow over India’s export and growth outlook. Strategists at BofA note that India is suffering disproportionately from these escalations, while China and Japan benefit from investor optimism.

Other contributing factors include high domestic equity valuations, weak corporate earnings, and a slumping rupee, all of which have sapped foreign investor confidence. Indeed, foreign institutional investors (FIIs) have ramped up bearish bets via derivatives to a two-year high, and overall sentiment toward Indian equities is the most negative in over 24 months.

India’s position contrasts sharply with regional peers like Taiwan and South Korea, which attract investments linked to the booming global semiconductor cycle. BofA’s survey points out that India’s IT services sector, once a favorite among foreign investors, is in decline and trading at a 20-month low on sentiment indices.

Domestically, sluggish Q1 earnings have compounded investor worries. At least 141 companies reported year-on-year drops in both sales and profits, including major names like Tata Motors and Hero MotoCorp.

Despite the negative backdrop, market analysts see a silver lining. With the Indian equity market caught in a prolonged consolidation, a low long-short ratio suggests limited downside risk, which may offer room for a rebound. Furthermore, experts assert that domestic fundamentals remain strong, supported by structural reforms, healthy consumption demand, and effective policy frameworks.

BofA strategists caution, however, that until trade tensions subside and earnings show signs of recovery, India will likely remain out of favor with global investors.

Weaver Services has officially completed its ₹267 crore acquisition of Capital India Home Loans Limited (CIHL). The deal, which was backed by investors like Premji Invest and Gaja Capital, has received all necessary regulatory approvals, marking Weaver's formal entry into India's affordable housing finance sector.

The move, first announced in October 2024, is a significant step in Weaver's strategy to build a tech-driven platform aimed at financial inclusion. The company plans to specifically target self-employed borrowers in Tier 2 and Tier 3 towns who often struggle to get loans from traditional lenders. With the 100 per cent acquisition, Weaver enters the affordable housing finance segment.

Benefit for Underserved Communities

With the deal closed, Weaver will launch a new digital platform to serve these communities, with a particular emphasis on women borrowers, who are frequently excluded from traditional credit channels.

According to Satrajit Bhattacharya, Promoter of Weaver Services, "Closing this acquisition transforms our intent into action. We can now focus on building a fair, fast, and accessible housing finance platform for those historically excluded from the system."

Keshav Porwal, Managing Director of Capital India Finance Limited, also expressed his confidence in the handover, stating, "Weaver brings the right vision and capabilities to accelerate growth and deliver meaningful impact in the housing finance space."

Weaver’s strategy centres around using technology and hyperlocal insight to offer affordable credit solutions to the underserved, particularly informal sector workers who lack access to formal financial systems. With the acquisition of CIHL, Weaver is now primed to scale operations and reshape India’s affordable housing finance landscape.