Byju's reports earnings after an 18-month delay, loss widens nearly 20 times. India's largest bank SBI raises rates ahead of RBI meeting later in September. Tech titans deem moonlighting illegal, Rishaad Premji calls it cheating, IBM India head echoes the sentiment. In global news, fund managers are fleeing from equities as recession risks rise and cash becomes king in portfolio once again.
This is the Daily Edit from the economic times your quick capsule of daily business news. It is September 15. And here is what we are tracking.
Edtech giant Byju's reported earnings after an 18 month delay. The company reported rupees 4500 Crore loss in financial year 2021 nearly 17 times the rupees 262 Crore loss in the previous year, India's most valued startup reported audited revenue of rupees 2280 crore for financial year 2021 against rupees 4400 crore in financial year 2020. Et reports that the last part of the delay due to auditor Deloitte seeking changes on two fronts, one the nature of revenue recognition and the other change related to interest paid by Byju's to partners that provide loans to customers to buy courses. This interest has been accounted for under revenue, moving it out of finance costs since the loans are in the nature of payments to customers. This is as per people familiar with the issue. Deloitte, India, however, didn't respond to queries. The country's largest lender State Bank of India raised the benchmark prime lending rate by 70 basis points to 13.45% On Wednesday, the announcement would make loan repayments linked to BPL are costlier. The current BPL are rate is 12.75%. It was revised last June. The increase in the benchmark lending rates comes weeks ahead of the RBIs monetary policy meeting, which is again expected to hike rates to tame inflation according to the shedule. The next three day monetary policy meeting will be held from September 28 to September 30. Recession risks are making investors flee from equities. A recent global fund managers A survey conducted by Bank of America showed a historically high 52 percentage of respondents being underweight equities. 62 percentage are overweight cash as the number of investors expecting a recession has reached the highest since May 2020.
Global tech major IBM which employs over a lakh individuals in India has joined the chorus dumbing moonlighting and unethical practice. Tech players in India are expressing varied opinions on moonlighting or side hustles where an employee undertakes some other work for extra income Infosys as well want employees moonlighting could lead to termination in an email sent on September 12. As another tech titan weigh pros Chairman Rishad Premji termed such behavior by employees cheating.
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ET Play/opinion the daily edit/news capsule september 15 2022