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Tata Power and Asian Development Bank (ADB) have partnered to explore financing options for Tata Power's strategic projects in India. The potential investment of $4.25 billion will support projects focused on renewable energy, power infrastructure enhancement, and energy transition initiatives. This collaboration aims to advance India's clean energy capacity and modernize its power infrastructure.from Business News: Business News, Business News Today, Latest Business News, Stock Markets, Financial News, India Business & World Business News https://ift.tt/GuOtATe
Goldman Sachs predicts India's economy will experience a cyclical slowdown, with GDP growth decelerating to 6.3 percent by 2025. Despite this, the country is expected to remain largely unaffected by potential US-China trade war disruptions. The Reserve Bank of India is anticipated to maintain a cautious monetary policy, with potential interest rate cuts totaling 50 basis points by mid-2025.
Gold prices in India soared by Rs 600 on Tuesday, reaching Rs 78,050 per 10 grams, fueled by strong global trends and wedding-season demand. Silver also saw a significant increase, rising by Rs 1,500 to Rs 93,500 per kg. Analysts attribute the surge to geopolitical tensions, a weaker dollar, and predictions of increased central bank gold purchases.
The Reserve Bank of India (RBI) has identified irregularities in gold loan disbursements. Lenders are now developing EMI options and term loan alternatives for gold-backed lending, moving away from the traditional bullet repayment method.
SBI Chairman CS Setty highlighted the shift in investment trends, attributing it to improved ease of business and digitalization. He acknowledged that banks haven't prioritized deposit mobilization adequately in recent years. Despite this, Setty expressed optimism about the future of bank deposits, anticipating their resurgence as income levels rise.
India's Finance Minister, Nirmala Sitharaman, emphasized the need for more affordable bank interest rates to stimulate economic growth. Her comments followed a surge in retail inflation driven by rising food prices, which impacted hopes for an interest rate cut by the Reserve Bank of India.
The Reserve Bank of India is launching a pilot program in 2025 to offer affordable data storage to financial institutions. This cloud platform, utilizing local IT firms, aims to provide a cost-effective alternative to foreign-dominated services and will be expanded in phases, focusing on smaller firms.
Finance Minister Nirmala Sitharaman announced the establishment of 500 new State Bank of India branches in 2025. She commended SBI's growth, highlighting its contribution to financial inclusion through initiatives like Jan Dhan Yojana and digital banking, serving a vast customer base exceeding the population of some countries.
The Reserve Bank of India suggests that municipal corporations can improve their financial health by charging appropriate user fees for services like water and waste management. This, along with transparent governance, can lead to better public services and improved urban infrastructure.
Canara Bank has classified accounts belonging to Reliance Communications and Reliance Telecom as "fraudulent." RCom, currently undergoing insolvency proceedings, stated that this classification is not expected to impact the company's resolution process, citing legal protections under the Insolvency and Bankruptcy Code.
A new report by Deutsche Bank has revealed that India's equity markets have surpassed China's since 2000, delivering one of the highest real equity returns globally. While both India and the US are trading near record-high CAPE ratios, the report suggests their strong growth outlooks and potential, particularly in technology and AI, could justify these valuations.
India's foreign exchange reserves have dipped to $675.65 billion, a decrease of $6.4 billion, as announced by the Reserve Bank of India. Despite this recent decline, India maintains its position as the fourth largest holder of foreign exchange reserves globally, trailing behind China, Japan, and Switzerland.
State Bank of India is seeking a $1.25 billion loan, potentially the largest from an Indian financial institution this year. The five-year loan, coordinated by international banks, will be used for general corporate purposes.
Commerce Minister Piyush Goyal called on the Reserve Bank of India to reduce interest rates. Goyal argued that using interest rates to control food price inflation was ineffective. RBI Governor Shaktikanta Das cautioned against assuming a rate cut. Das highlighted the risks of inflation increasing and economic growth slowing down.
India's wholesale price inflation accelerated to a four-month high of 2.36% in October, driven by surging food prices, particularly vegetables. While fuel and power costs declined, food inflation soared to 11.59%, impacting potatoes and onions significantly. This surge follows a similar trend in retail inflation, posing potential challenges for the Reserve Bank of India's monetary policy stance.
Indian public sector banks witnessed a surge in profitability during the September quarter, posting a combined net profit of Rs 45,545 crore, marking a 35.4% year-on-year increase. This impressive performance was largely attributed to improved asset quality and robust credit growth.
India's Finance Minister, Nirmala Sitharaman, hinted at the possibility of reducing certain import tariffs to support domestic industries reliant on imported materials. While acknowledging the concerns of global organizations like the IMF and World Bank regarding India's tariff rates, Sitharaman emphasized the government's commitment to safeguarding domestic production.
Indian stock markets closed lower on Tuesday, with the Nifty50 and Sensex declining over 1% each. Heavy selling by foreign investors and weak global cues dampened investor sentiment. Despite a brief morning rally, indices succumbed to selling pressure, dragged down by losses in major stocks like NTPC and HDFC Bank.
India's retail inflation surged to 6.21 percent in October, exceeding the Reserve Bank of India's target range for the first time in over a year. Driven by a sharp increase in vegetable prices, food inflation rose to 10.87 percent. While some food categories saw price declines, economists predict inflation will remain above 5 percent in the near future.
MTNL has defaulted on a Rs 1,000 crore loan from Bank of India, leading the bank to set aside Rs 200 crore to cover potential losses. This comes after SBI categorized its loans to MTNL as sub-standard. Despite the default, lenders are optimistic about recovery as MTNL is government-owned and some loans are backed by government guarantees.
The Reserve Bank of India announced a new option for foreign portfolio investors exceeding the 10 per cent investment limit. They can now divest their holdings or reclassify them as foreign direct investment, subject to government and company approvals. This framework, effective immediately, prohibits reclassification in sectors where FDI is restricted.
The State Bank of India predicts the Indian Rupee might weaken against the US dollar if Donald Trump returns to power, potentially reaching between Rs 87 to Rs 92. However, the bank assures this depreciation would be short-lived, with the rupee eventually strengthening. While a weaker rupee could benefit exports, it might also slightly increase inflation and import costs.
A State Bank of India report suggests that Donald Trump's second term as US President could bring about shifts in foreign direct investment (FDI) to India. While Trump's policies during his first term aimed to attract investments back to the US, India has been diversifying its FDI sources and focusing on emerging sectors to mitigate potential declines.
SBI Chairman C.S. Setty predicts the Reserve Bank of India will hold off on cutting interest rates until February 2025, despite acknowledging that deposit rates have peaked. Setty anticipates a moderate 25 basis point reduction at that time. This projection comes amidst persistent inflation concerns and RBI's cautious monetary policy stance.
India's stock market witnessed a mixed performance last week, with six of the top ten companies experiencing a combined market value decline of ₹1.56 lakh crore. Reliance Industries took the biggest hit, while TCS and Infosys emerged as gainers. Despite the fluctuations, Reliance Industries retained its top position, followed by TCS and HDFC Bank.
Finance Minister Nirmala Sitharaman raised the lending target for public sector banks to MSMEs by nearly 35% for this financial year. She set a new target of Rs 5.7 lakh crore, emphasizing that no small business should be denied funding. Sitharaman urged public sector banks to take the lead in lending to MSMEs, aiming for greater growth in the sector.
State Bank of India (SBI) recorded its highest-ever net profit of Rs 18,331 crore in the September quarter, marking a 28% surge. This achievement was fueled by substantial growth in both interest and non-interest income, coupled with controlled operating expenses. SBI also celebrated reaching a milestone of Rs 50 lakh crore in deposits during this period.
India's foreign exchange reserves have decreased for the fifth consecutive week, now standing at $682.130 billion. This decline follows a record high last month, attributed to the Reserve Bank of India's intervention to stabilize the Rupee. Despite the recent dip, India boasts substantial reserves, enough to cover approximately one year of imports.
State Bank of India reported a net profit of Rs 18,331 crore in the second quarter of FY25, marking a 27.92% increase. Net interest income also saw a rise of 5.37%, reaching Rs 41,620 crore. The bank's credit grew by 14.93% year-on-year, reaching Rs 39.21 lakh crore, with significant growth in domestic advances, SME, and retail personal loans.
Following Donald Trump's re-election, Federal Reserve Chair Jerome Powell affirmed the central bank's independence, stating that he would not resign if asked and emphasizing that the president lacks the authority to remove him. Powell's firm stance signals a potential power struggle over interest rate policy, with Trump having previously criticized the Fed's decisions.
India's Solar Energy Corporation of India (SECI) has banned Reliance Power and its subsidiaries from bidding on its contracts for three years. SECI alleges that Reliance Power submitted a fake bank guarantee as part of a bid for a battery energy storage system project. Reliance Power maintains it was the victim of fraud and plans to challenge the ban.
IFC, part of the World Bank Group, has pledged $400 million to Bajaj Finance Ltd. This funding will broaden financing options for customers purchasing electric vehicles and energy-efficient appliances in India. The initiative aims to bolster India's climate goals, promote financial inclusion, and encourage the adoption of sustainable technologies.
The Indian rupee experienced its most significant drop in over four months, closing at 84.28 against the US dollar due to Trump's victory. Despite this decline, the Reserve Bank of India (RBI) intervened to curb further depreciation. Global currencies also faced significant losses against a strengthening dollar, fueled by anxieties surrounding potential trade barriers. The Mexican peso, euro, Chinese yuan, and South African rand were among the most affected.
Chhath puja 2024 bank holidays: Multiple states in India will observe bank holidays for Chhath Puja celebrations from November 7-10, 2024. November will see numerous bank holidays due to various festivals including Diwali Amavasya, Guru Nanak Jayanti, and Kannada Rajyothsava, as per the RBI.
Retail-loan defaults are increasing in India. This is impacting the stock market. Analysts are concerned about the impact on the economy. Lenders are reporting stress in unsecured loans. Personal loan growth is slowing down. The Reserve Bank of India had tightened lending norms. Demand for big-ticket items is also slowing down.
Bank Fixed Deposits (FDs) are offering attractive interest rates, making it a favorable time for investors to lock in high returns before potential rate cuts by the Reserve Bank of India (RBI). The ET Intelligence Group has identified the top-performing bank FDs across various tenures, providing investors with insights to maximize their returns in a potentially declining interest rate environment.
Bank Holidays November 2024: Indian banks will observe 13 holidays in November 2024, impacting various states due to Diwali, Chhath Puja, Guru Nanak Jayanti, and regional festivals. Despite the closures, customers can utilize online and mobile banking services for uninterrupted access to their accounts.
Maruti Suzuki expects strong retail sales momentum in November, driven by a significant number of planned marriages across the country. The company achieved its highest-ever October retail sales with 2,02,402 units and aims to maintain a 4-5% growth forecast for the fiscal year.
Swiggy has received enthusiastic investor interest for its $1.4-billion IPO in India, with bids from big investors like Norges Bank and Fidelity exceeding $15 billion. The IPO, launching next week, has seen its valuation reduced to $11.3 billion due to a recent market correction.
HDB Financial Services, a subsidiary of HDFC Bank, has filed draft documents with Sebi to raise Rs 12,500 crore via an IPO, comprising Rs 2,500 crore in fresh shares and Rs 10,000 crore through an OFS by HDFC Bank. The funds will bolster its Tier-I capital and support business expansion.
The US economy grew at an annual rate of 2.8% from July to September, driven by strong consumer spending despite high interest rates. The Federal Reserve's favored inflation gauge dropped to its lowest in four years. The GDP data signals a resilient economy with moderating inflation, benefiting the central bank's policies.
Diwali 2024 bank holidays full list: Bank holidays for Diwali in 2024 vary across Indian states. Diwali, also known as Deepavali, is a Hindu festival that celebrates the triumph of light over darkness, good over evil, and knowledge over ignorance.
India's gold reserves, managed by the Reserve Bank of India, total 854.73 metric tonnes, with 510.46 metric tonnes stored domestically and 324.01 metric tonnes internationally. Gold’s share in India's foreign exchange reserves increased to 9.32% by September 2024, from 8.15% in March 2024, reflecting its rising importance amid global economic fluctuations.
The Reserve Bank of India has transported another 102 tonnes of gold from the Bank of England to secure locations within the country, bringing the total to 510.5 tonnes held domestically out of 855 tonnes by the end of September. This move is part of efforts to secure holdings amid global geopolitical tensions, with further shipments possible.
Jairam Ramesh highlights that thousands of tribals in Jharkhand struggle to access their bank funds due to stringent KYC norms. He urges the Reserve Bank of India to review these procedures, citing surveys where 60% of households in Latehar and Lohardaga have frozen bank accounts, affecting access to MGNREGA wages and government cash transfers.
Bargain hunting after a five-day slide boosted Sensex by 603 points to 80,005 on Monday, led by ICICI Bank's strong quarterly numbers. Limited gains were made due to foreign fund selling, but reduced crude prices strengthened the rupee. Nifty also rose 158 points, reversing its losing streak.
Indian stock markets broke a five-day losing streak on Monday, with the BSE Sensex rising 0.76% to close at 80,005.04 and Nifty50 up 0.65% to 24,339.15. Gains were driven by strong quarterly results from ICICI Bank and other lenders. The rupee remained stable at 84.0775 against the US dollar.
