MC Insider: Buybacks with ulterior motives, headhunt for M&A chief, execs poached by PE, loans for bathroom, and more

We have seen a number of share buyback announcements recently. Most buybacks happen because companies want to distribute excess cash to shareholders. It is a reward that shareholders eagerly await. However, chatter on the Street is that some of the recent buybacks have an ulterior motive: to arrest the panic selling in their shares. One such player, according to a few market watchers, seems to be a communications company. It is likely to announce the buyback record date very soon. Buzz is that promoters are using the company’s cash to attract investors and prop up the share price that had fallen by about three-fourths from the peak. It remains to be seen how successful they will be in doing so. Until then, shareholders are the real winners.

Shifting focus now to Deal Street where we have three titbits from the world of executive movements and the industrials segment. For starters, we hear the search is on for an M&A head at one of the leading diversified business groups of the country. Next up, buzz around domestic buyouts in this segment has been strong in the past few months, but lo and behold don't be surprised if an outbound one is being pursued quietly!

Of late, we hear that a certain private equity firm has been tapping executives specifically for bets in the public market -- something which was not exactly on their radar earlier. One of these executives is from a leading mutual fund player and the other from an insurance firm and these two have already moved on we are told. Hmm...

Competition drives banks crazy. It also forces them to keep innovating products. Now, this one is about loans. We all know banks offer home loans, auto loans, education loans, and loans to businesses, and consumption loans to individuals. Now you better know that banks also offer bathroom loans. Yes, you heard it right! Recently an advertisement from one of the large private banks evoked a lot of interest on social media. The advertisement said the bank has a product called 'bathroom loans' or loans to "spruce up your bathroom into a spa". The advertisement pitches low interest rates, up to 15 year tenure, and easy EMIs. Tempted yet?!

India’s health minister is known for showing extra care towards what he eats and his love for fitness. He, however, now wants others in the government, mainly bureaucrats, to adopt some of the healthy habits. Peeved that the Centre’s “Eat Right, India” campaign has not gained much momentum, the ministry is mulling writing letters to other ministries on what are the healthy lifestyle and food habits that are important to avert the growing menace of hypertension and diabetes. “He is hopeful that the emotional appeal in the letter would work and strike a chord with the recipients!” said an aide.

With the end of the quarter near, there are murmurs that the treasury department at a large state-owned lender has been offloading part of its holdings in large cap stocks and equity-oriented mutual funds to offset some of the losses in its bond portfolio and avoid reporting a mark-to-market loss. The lender, however, has been accumulating units of Nifty 50 and BSE-Sensex ETFs (exchange traded funds) with a view to avoiding market volatility. The lender still remains positive on the Indian stock market and sees the ongoing profit-booking exercise as a temporary phenomenon.

A corporate with presence in banking and mutual funds has adopted a unique retention strategy for its key leadership team. The last two C-suite employees who expressed an intent to quit were given major promotions -- one received a group level promotion while the other was recently made CEO of another vertical. The common thread being that news of both resignations was buzzing in the market.. just enough to twist the arm of the top boss. Time for all of us to step up our negotiation skills!

Recently, a private bank issued a business loan to a company that is into the making of robots. The company was so happy with finally getting the much-needed financial assistance that it sent one of the robots created by the firm to collect the loan cheque. The lady robot, clad in a traditional saree, graciously accepted the cheque from the bank's chairman at the lender's headquarters. There were all smiles around.