With public sector banks losing share of current and savings account business, finance minister Nirmala Sitharaman has asked state-run bank chiefs to focus on innovative deposit instruments so that they can raise lower-cost resources to meet their financing requirements. The minister once again flagged the issue at a meeting with public sector bank chiefs on Saturday with sources saying that she wanted the lenders to focus on their "core activity". Some of the new generation private banks, for instance, are offering over 9% on certain tenures of term deposits.from Business News: Latest News on Business, Stock Markets, Financial News, India Business & World Business News https://ift.tt/G8neQZ1
While Reliance Industries, HDFC Bank, ICICI Bank, Hindustan Unilever, Bharti Airtel, ITC, State Bank of India and Life Insurance Corporation of India (LIC) were the gainers, Tata Consultancy Services (TCS) and Infosys were the laggards. The market valuation of HDFC Bank jumped Rs 29,828.84 crore to Rs 12,97,972.04 crore. Reliance Industries continued to retain the title of the most valued firm, followed by TCS, HDFC Bank, ICICI Bank, Infosys, Hindustan Unilever, Bharti Airtel, ITC, State Bank of India and LIC.
Mumbai recorded the best property sale registrations in 11 years, with total registrations of 127,139 real estate properties in 2023. The total value of stamp duty collected was Rs 10,889 crore, a 10-year high recording and a year-on-year growth of 22%. Residential units constituted 80% of the registered properties. Central and Western suburbs together constituted over 75% of the registrations. There was a 57% increase in high-value property registrations, and properties valued at Rs 1 crore and above were less impacted by increasing prices and policy repo rate.
India's foreign exchange reserves reached a 21-month high of $620.441 billion in the week ending December 22, 2023, with the Reserve Bank of India adding about $58 billion to its foreign exchange kitty in 2023. The country's foreign currency assets rose to $549.747 billion, while gold reserves declined to $474.74 billion. The decline in forex reserves since October 2021 can be attributed to a rise in imported goods' cost in 2022 and RBI's intervention to defend the rupee against the US dollar's surge.
AI & IP-led digital assurance and digital engineering services provider Cigniti Technologies has set up a new offshore delivery centre (ODC) in Hyderabad as part of its expansion drive. The new 40,000 sq ft facility, which has come up at the International Tech Park in the heart of Hyderabad’s IT hub of Madhapur, will have a capacity to accommodate around 400 techies and will take Cigniti’s total ODC footprint in Hyderabad to around 2.4 lakh sq ft.
The RBI has increased the capital requirements for SBI and HDFC Bank under its guidelines for systemically important banks as it sees higher contagion risks. The need for a higher capital buffer comes at a time when the central bank analysed how problems in one bank could affect others in its financial stability report. The report shows that if the most critical bank were to fail, it would now affect 3.6% of all banks’ tier-1 capital, up from 2.2% in March 2023.
The government has asked banks to be prepared for the risk of deepfake clips, where voices are cloned to deceive people. Banks need to include cyber risks in stress tests to assess their vulnerability. This is already being done by banks in Europe and Singapore. Financial services secretary Vivek Joshi emphasized the importance of upgrading tools to protect against emerging threats. He also highlighted the need for a new cycle of private investment. Joshi believes that the rupee will be the least volatile major currency in 2023.
India's tech companies, including Flipkart and FirstCry, continue to face significant losses. Flipkart Internet reported consolidated losses of Rs 4,026 crore in FY23, while Flipkart's B2B arm reported losses of Rs 4,897 crore. FirstCry's losses in FY23 reached Rs 486 crore, a sharp increase from Rs 78 crore in FY22. Despite the losses, both companies saw growth in revenue. Flipkart's revenue increased to Rs 14,845 crore in FY23, and FirstCry's revenues reached Rs 5,632 crore, a rise of nearly 135% year-on-year.
India and Russia have signed important agreements related to the construction of future power generating units at the Kudankulam nuclear power plant in Tamil Nadu during External Affairs Minister S Jaishankar's visit.
The ownership dispute between Baba Kalyani and Sugandha Hiremath in Hikal takes a new turn as Baba loses his board seat in a shareholder vote. He failed to secure the necessary votes needed to continue as Hikal's non-executive, non-independent director due to his age. Sugandha, with a significant stake in Hikal, voted against her brother's continuation as a director. The month-long postal ballot-cum-electronic voting process concluded with about 79% of Hikal shares voted. Hikal is also the center of a legal battle between the siblings.
China expressed firm backing to Chinese businesses and promises consular protection for arrested Vivo-India executives in India in connection with a money laundering probe. The Chinese government came out in support of Chinese businesses to "safeguard lawful rights and interests". Chinese embassy and consulates in India will provide consular protection and assistance to the individuals concerned. Four arrests have been made in the case, including Vivo-India executives, Lava International's MD, a Chinese national, and chartered accountants.
This article discusses the initiatives by Amazon Web Services (AWS) in government departments in India, as shared by Shalini Kapoor, director and chief technologist of AWS India public sector business, during AWS re:Invent 2023. AWS has supported the Indian government in rolling out CoWin, DigiLocker, and DigiYatra, and is focused on building national digital platforms. They are also working with state governments and organizations to enable e-governance services and support the agriculture sector. CEO Adam Selipsky's announcements at the event can help develop a digital ecosystem in India.
China's raft of new measures limiting players' spending on video games sent ripples through stock markets globally. Prosus and Naspers slumped in Amsterdam and Johannesburg due to the regulator's draft rules, impacting their holdings in Tencent. The Nasdaq Golden Dragon China Index declined, with NetEase leading losses. Ubisoft and Unity Software also fell. China's gaming regulator published draft rules targeting practices that encourage excessive spending in online games, sparking fears of an industry crackdown. Prosus's sensitivity to factors beyond its control, such as its Tencent stake, is evident in its stock performance.
The Centre is set to miss its privatisation target for state-run companies this year due to stalled progress and limited appetite before elections. Roadblocks, including bureaucratic sloth, have hindered the process, affecting big-ticket enterprises like IDBI Bank. Stake sales in state-run banks and an insurance company recommended for privatisation by NITI Aayog have not moved forward. The privatisation of Pawan Hans has been scrapped, and the large public sector policy has not taken off. The disinvestment process is now awaiting the new government for a fresh start.
The IT industry is experiencing a sharp slowdown, leading to companies being selective about annual salary increments. Performance and tenure are now key factors in determining who receives hikes. Infosys, Wipro, and HCL have deferred their increments, with Infosys announcing hikes effective November 1. However, they have excluded certain employees. HCL has rolled out hikes for junior employees only, while Wipro has excluded top performers with high salaries. These changes in salary increment models are part of a larger strategy to maintain margins in a weak environment.
Sensex correction due to profit-taking and selling by speculators resulted in a 1,610 point crash from the day's high. Short selling and margin calls led to forced liquidation, contributing to the market slide. Crude oil prices spiked due to attacks on commercial ships in the Red Sea area. The rise in Covid infections and hike in margins for derivatives trades were additional factors. Market capitalisation decreased by Rs 9 lakh crore. Foreign funds sold Rs 1,322 crore while domestic funds bought Rs 4,754 crore.
Finance minister Nirmala Sitharaman informed Parliament that Google has removed 2,500 apps from the Play Store that offered fraudulent loans. Only apps approved by regulated entities can be hosted on the platform. The government and regulators, such as RBI, are actively working to control fraudulent loan apps. RBI issued digital lending guidelines and shared a whitelist with the government. The Indian Cyber Crime Coordination Centre has flagged certain apps. The government has also blocked funds siphoned off from bank accounts and is considering blocking phones used for frauds.
Remittances to India are estimated to rise over 11% to $125 billion in 2023, helping it retain the top spot ahead of Mexico and China. Flows to South Asia are estimated to have grown 7.2% in 2023 to reach $189 billion. Remittances from highly skilled Indians in the US, the UK, and Singapore account for 36% of total remittance flows to India. The UAE is the second-largest source of remittances to India after the US, accounting for 18% of the total.
Amid demands from European spirits and wine manufacturers to lower tariffs in India under the proposed free trade agreement (FTA), the Confederation of India Alcoholic Beverage Companies (CIABC) has sought better market access for the Indian products into the European Union. The lobby group has pointed to "non-tariff barriers" such as its definition of whisky and brandy to argue for their dismantling. For a product to be classified as "whisky" in the EU, it has to have a maturity period of three years or more, and one year to be categorized as "brandy".
Sri Lankan President Ranil Wickremesinghe defends the IMF program as the only option to address the island nation's economic bankruptcy. He emphasizes the need for tough decisions and debt restructuring to correct past economic wrongs. Wickremesinghe highlights negotiations with India, China, and the Paris Club for debt concessions. He calls for credible alternative plans from critics and warns against misleading statements. The IMF reforms and high cost of living will impact the 2024 election year.
Facebook-owner Meta and China's TikTok restricted a record number of social media posts and accounts in Malaysia in the first six months of 2023, data published by the firms showed, amid a jump in government requests to remove content. Malaysia PM Anwar Ibrahim's administration, which came to power in November 2022 on a reformist platform, has faced accusations of backpedalling on its promises to protect freedom of speech amid increased scrutiny of online content in recent months.
India's ambition to march into `Amrit Kaal’ by 2047 is an important one but the current pace of growth is not enough to get us there as we will still remain a lower middle-income economy by then, former RBI governor Raghuram Rajan said here on Saturday. Speaking at an interactive session organised by Manthan, Rajan mooted a focus on high-value added services instead of manufacturing to productively harness the country’s demographic dividend and propel the country into 'Amrit Kaal' because if India does not grow faster, it would grow older demographically before it gets richer.
Former RBI governor warns that India will remain a lower middle-income country by 2047 if the growth rate remains at 6% annually without population rise. The country will reach the end of its demographic dividend and face the burden of an aging population. The per capita income will only quadruple to $10,000 if the current growth rate continues. Some southern states are experiencing a decline in fertility rate, leading to a slower population growth. The current pace of growth is insufficient to employ new labor force entrants and make the country richer before it gets older.
Irdai proposes new rules to protect policyholders' interests by increasing payouts for early policy surrender. Insurers face the dilemma of lower sales or lower profits. Higher payouts can be achieved by cutting commissions, but this may affect sales. Retaining commissions or paying higher can result in profit loss. The regulator aims to curb mis-selling and increase persistency. The proposed rules include a premium threshold for surrender charges and spreading out commissions. This is not the first time the regulator has addressed surrender charges.
The US Federal Reserve is expected to keep interest rates unchanged but signal a gradual shift towards monetary policy easing. Quarterly economic projections will likely include rate cuts by the end of next year. Fed Chief Jerome Powell will emphasize that any rate cuts are contingent on further improvement in inflation. Recent data on producer prices suggests inflation is dropping faster than expected. The Fed meeting will provide views on inflation, unemployment, and GDP in the coming years.
Finance minister Nirmala Sitharaman defends government's ban on export of certain products, such as onions, to protect the interest of domestic consumers. She prioritizes balancing the interests of farmers and consumers and highlights the need to remove supply-side constraints and increase purchases during price surges. Sitharaman asserts that the government procures from farmers at adequate prices and emphasizes the increased allocation for agriculture and stepped-up procurement. She also addresses the concerns about pending GST dues of states, stating that some states have not submitted necessary certificates for fund release.
Struggling SpiceJet receives Rs 2,250 crore from new investors like Elara India Opportunities Fund, Aries Opportunities Fund, Nexus Global Fund, and Prabhudas Lilladher. The funding aims to ease financial stress, pay employees, and settle statutory dues. The low-cost carrier has struggled to pay stakeholders, resulting in flight cancellations and a negative impact on on-time performance. SpiceJet's board has approved the fund-raising, which includes issuing equity shares to strengthen the airline's financial position and accelerate growth.
Retail inflation in November rose to a three-month high led by surging food prices, while industrial output growth in October soared to a 16-month high, driven by robust manufacturing, electricity, and mining sector expansion. Inflation, measured by the consumer price index (CPI), increased by 5.6% annually in November, surpassing October's 4.9% but slightly lower than November 2022's 5.9%. The food price index rose to 8.7% during the month, with vegetable prices soaring 17.7% and pulses shooting up 20.2%.
Bank of America promoted 334 employees to managing directors, including 75 investment bankers and 64 trading division employees. The cohort is 8% smaller than the previous year, but over half are women and people of color. Goldman Sachs will promote 608 executives to managing directors next year, fewer than two years ago. Bank of America CEO Brian Moynihan expects the bank to outperform rivals in investment banking fees for Q4. The industry-wide investment banking fee pool is expected to decline by 10% to 15%.
Novartis plans to divest its Indian eyecare portfolio to JB Chemicals, adding to the list of MNCs reducing exposure to the Indian market. The move aligns with Novartis' strategy to capitalize on ophthalmic therapy while offering JB Chemicals entry into a growing business segment. Global Big Pharma has been divesting branded generics to Indian companies, while Indian players are diversifying from the US generics market. The deal is expected to be announced soon. The demand for eyecare is increasing due to the ageing population and greater access, driven by the use of tablets and mobile devices.
Power consumption in India has increased by nearly nine per cent from April to November this fiscal year, indicating a surge in economic activities. The power consumption during this period was 1,099.90 billion units (BU), higher than the 1,010.20 BU recorded in the same period last year. The growth in power consumption is seen as a sign of buoyancy in the economy. The Union Power Minister stated that the power demand has increased by 50.8 per cent in energy terms from 2013-14 to 2022-23, and attributed the increase to the addition of 194 GW of capacity between 2014 to 2023.
US health regulator issues warning letter to Intas Pharmaceuticals CEO and MD Nimish Chudgar for manufacturing lapses and violation of CGMP regulations at the Matoda-Sanand facility in Ahmedabad. The USFDA found various manufacturing lapses and inadequate oversight in the company's Quality Assurance and production departments. Specifically, the investigation revealed manipulation of defect counts on visual inspection records to avoid rejection limits. The company also failed to thoroughly investigate discrepancies and establish written procedures for production controls and prevention of microbiological contamination.
Finance minister Nirmala Sitharaman asserts that the Indian economy is strong and maintaining its growth momentum. India's second quarter growth is the highest in the world, while Japan and Germany have contracted. All sectors are growing significantly, including exports, direct tax collections, and GST collections. Growth is driven by both urban and rural areas. The government has implemented new schemes that have made a huge difference to the lives of the common man. Steps taken by the government have helped cool down prices.
Tesla's Dojo supercomputer project lead Ganesh Venkataramanan has left the company, Bloomberg News reported on Thursday citing people familiar with the matter. Peter Bannon, a former Apple executive and director at Tesla for the last seven years, is now leading the project, the report said. The Dojo supercomputer was designed to process vast amounts of data and video from Tesla cars to train the automaker's autonomous-driving software. The company did not immediately respond to a Reuters request for comment.
Sensex and Nifty reached new all-time highs fueled by strong gains in stocks and increased foreign fund buying. The market rally, which began on Friday with expectations of a strong showing by the BJP-led coalition, continued on Monday and extended further on Tuesday. Falling US gilt yields, stable crude oil prices, and strong GDP growth data also boosted investor sentiment. Despite cautiousness among global peers, foreign funds net bought stocks worth Rs 5,224 crore.
ZestMoney, a Buy Now Pay Later (BNPL) startup, is shutting down its operations, affecting around 150 employees. The decision follows unsuccessful acquisition attempts by PhonePe, a larger peer, earlier this year. PhonePe's due diligence process did not meet its standards, leading to the deal's cancellation. Despite Walmart-owned PhonePe hiring some of ZestMoney's employees, the startup's co-founders stepped down, and a new leadership team was appointed. ZestMoney faced financial challenges, with losses increasing from Rs 125.83 crore in FY21 to about Rs 398.82 crore in FY22.
BSE-listed companies' market capitalization reaches all-time high of Rs 343.48 lakh crore after BJP's victory in assembly polls, making investors richer by Rs 5.81 lakh crore. Sensex jumps 1,383.93 points to close at lifetime high of 68,865.12. Market valuation of BSE-listed firms rises to Rs 343.48 lakh crore from Rs 337.67 lakh crore. Investors' wealth increases by Rs 14.76 lakh crore in the last five trading sessions. ICICI Bank and SBI lead with maximum gains on Sensex.
Inox Wind Ltd shares surged to a 52-week high, closing with gains of over 15%. The company's promoter, Inox Wind Energy, infused Rs 800 crore to reduce debt. Inox Wind Energy Ltd shares also surged by 9%. The subsidiary company will utilize the funds to clear a portion of its outstanding debt. INOXGFL Group operates in chemicals and renewable energy sectors and has four listed entities, including Inox Wind Ltd and Inox Wind Energy Ltd.
Adani group shares extended gains following state poll results, pushing the total market valuation of group companies to the Rs 12 lakh crore mark. Adani Green Energy, Ambuja Cements, Adani Enterprises, ACC, Adani Ports and Special Economic Zone (APSEZ), Adani Power, Adani Energy Solutions, Adani Total Gas, NDTV, and Adani Wilmar all saw significant increases in their share prices. The combined market capitalisation of all Adani group firms hit Rs 12 lakh crore, the first time since facing a slump earlier this year.
The GoAir revival saga may soon come to an end as the Committee of Creditors (CoC) decides whether to opt for liquidation or invite a second round of expression of interest (EOI). The airline, owned by the Wadia Group, stopped flying in May 2023 and filed for voluntary insolvency. With the 270-day deadline approaching, the chances of a second round of EOI seem unlikely. The fate of the aircraft and engines, excluded from assets under the Insolvency and Bankruptcy Code, is yet to be decided by the courts.
Bitcoin surpasses $40,000 as interest-rate reductions and demand from exchange-traded funds drive the rebound. The token's 2023 jump reaches 142%. The TerraUSD stablecoin collapse and subsequent crypto sector rout occurred before Bitcoin last reached $40,000. The Federal Reserve's expected rate cuts and the potential approval of US spot Bitcoin ETFs by January support the optimism around Bitcoin. The upcoming Bitcoin halving in 2024, along with a maturing industry and widening investor base, contribute to the positive market mood.
India reduced its GDP emission intensity by 33 per cent between 2005 and 2019, achieving the target 11 years in advance, according to a government report. The report also said India's GDP grew at a cumulative annual growth rate of 7 per cent but its emissions rose by only 4 per cent per year during this period. The report called 'The Third National Communication to the United Nations Framework Convention on Climate Change' will be submitted to the UN climate change body during the ongoing climate talks in Dubai, officials said.
IT firm Comviva has been fined Rs 1 lakh for the delay in transferring unspent corporate social responsibility obligation to the Prime Minister's National Relief Fund, according to a regulatory filing. The Ministry of Corporate Affairs' Regional Director for the Northern Region ruled against Comviva's appeal and upheld the penalty. The delay was due to technical reasons, and Comviva is in the process of depositing the penalty amount with the Ministry of Corporate Affairs.
November GST collections rose 15.1% to Rs 1,67,929 crore, driven by strong domestic demand during the festival season and greater compliance. Integrated GST on imports grew 1.5% to Rs 39,198 crore, indicating a slowdown in goods shipment. Overall, IGST collections rose 12.8% to Rs 87,000 crore, driven by inter-state transactions. Central GST grew 18.5% to Rs 30,420 crore, while state GST swelled 17.1% to Rs 38,226 crore.
The average long-term US mortgage rate fell for the fifth week in a row, benefiting prospective homebuyers in an unaffordable housing market. According to Freddie Mac, the average rate on a 30-year mortgage decreased to 7.22%, the lowest in 10 weeks. The decline in rates is encouraging for potential buyers, with purchase application activity rising. However, rates remain significantly higher than two years ago, limiting affordability for many Americans.
The Union cabinet has recommended setting up of the 16th Finance Commission to decide on sharing of taxes between the Centre and the states, setting off speculation on the chairman and members of the Constitutionally mandated panel, whose award would be effective for five years, starting April 2026. The panel, which will be constituted by the President over the next few days, is proposed to be given a simple mandate, instead of expanding it to include issues, such as, GST or ease of doing business, as was the case in the past.
The unemployment rate in urban areas for 15 years and above slowed in the July-September quarter compared to the same year ago period but remained at the same level as in the previous April-June quarter, data showed on Wednesday. Data released by the ministry of statistics and programme implementation showed the joblessness rate slowed to 6.6% in the three months to July-September, lower than the 7.2% recorded in the same year earlier period. In the April-June quarter of the current fiscal year it was at 6.6%
The government is considering deploying a series of measures to curb the growing menace of cyber frauds in the financial sector, including blocking the IMEI, the unique number of mobile devices, and restricting withdrawals from suspicious accounts to prevent its use in future incidents. Besides, a proposal to "whitelist" digital lending apps was among options discussed at a meeting in the finance ministry, amid an unprecedented rise in cyber frauds.