Commercial banks have turned cautious in lending to smaller microfinance institutions (MFIs), which has compelled the latter to borrow from non-banking financial companies (NBFCs) at much higher rates. Recently Reserve Bank of India (RBI) Deputy Governor M Rajeshwar Rao slammed micro lenders for increasing their margins “disproportionately” and said these lenders were quick to pass on the increased cost to the borrowers but reluctant to pass on the benefits under the new regime, where margins are not capped.
Posts tagged Rediff
LIC’s residual stake value surges in top groups (08-07-2024)
Life Insurance Corporation of India (LIC) has made the most of the stock market boom by reducing stakes in all its top conglomerates during the financial year 2023-2024 (FY24). However, even after reducing exposure, the value of its remaining stake has gone up substantially across all groups, according to data collated from stock exchange filings.
EMPS 2024: Only 3.6% vehicle sales target met (08-07-2024)
The Rs 500-crore Electric Mobility Promotion Scheme (EMPS) 2024, introduced by the Centre to provide incentives to the electric mobility industry, will conclude on July 31 with barely 3.6 per cent of the targeted vehicle sales achieved so far. This is in stark contrast to the earlier flagship Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme, which exceeded its sales targets. According to data from the Ministry of Heavy Industry (MHI), only 13,499 of the 372,215 targeted vehicles have been sold under the EMPS scheme.
Can the ‘new’ HDFC Bank reclaim its old glory? (08-07-2024)
For over a decade, HDFC Bank consistently outperformed industry growth rates in both deposits and advances, maintaining impeccable asset quality. Amid a landscape where other banks struggled with soaring non-performing assets (NPAs), HDFC Bank thrived, eventually surpassing ICICI Bank to become the largest private sector lender in India. Its net interest margin (NIM) remained stable in the range of 4.1-4.4 per cent.
Sensex ends down 36 points in lacklustre trade (08-07-2024)
Among the Sensex pack, Titan, Adani Ports, Tata Steel, JSW Steel, UltraTech Cement, Asian Paints, Mahindra and Mahindra and Bajaj Finserv were the biggest laggards. ITC, Hindustan Unilever, Nestle, HCL Technologies and Tata Motors were among the gainers.
Earnings boost for Dr Reddy’s Lab post Haleon deal (08-07-2024)
Dr Reddy’s Laboratories (DRL) is set to acquire Haleon’s global portfolio of consumer healthcare brands in the nicotine replacement therapy (NRT) category outside of the US. DRL will pay a total consideration of £500 million, including an upfront cash consideration of £458 million and contingent cash payments up to £42 million based on performances in CY25 and CY26. DRL will acquire the portfolio through the purchase of shares of Northstar Switzerland SARL, a Haleon group firm.
Why Adani Solar Sought Visas For Chinese (08-07-2024)
In seeking visa approvals for engineers from China, the company has reasoned that India lacks the expertise to set up such a solar facility.
Budget 2024: Wishlist of the pharma industry (07-07-2024)
There is a need to incentivise R and D investments, offer corporate tax concessions and establish an effective intellectual property rights regime in order to push the growth of domestic pharmaceutical industry, as per the industry bodies. Outlining the sector’s wish list for the upcoming Union Budget, Organisation of Pharmaceutical Producers of India (OPPI) Director General Anil Matai urged the government to explore methods to incentivise R and D investments, such as deductions on R and D expenses, research-linked incentives for MNCs, and corporate tax concessions.
Budget: What hospitality sector wants from Nirmalaji (07-07-2024)
Hospitality players want the government to accord infrastructure status to hotels to make investments on new properties more attractive rather than categorising them as luxury or even ‘sin goods’ in the upcoming Union Budget considering the sector’s potential to play a key role in India’s growth. They also want the government to consider incentives in the form of tax breaks or subsidies for adopting sustainable and eco-friendly practices, while asserting that the upcoming budget must accelerate the tourism agenda saying it is an opportunity to make Indian hospitality the emerging engine for GDP growth and employment generation.
New twist to Hindenberg-Adani drama (07-07-2024)
US short-seller Hindenburg Research had shared an advance copy of its damning report against Adani group with New York-based hedge fund manager Mark Kingdon about two months before publishing it and profited from a deal to share spoils from share price movement, according to market regulator Sebi. The Securities and Exchange Board of India (Sebi), in its 46-page show cause notice to Hindenburg, detailed how the US short seller, the New York hedge fund and a broker tied to Kotak Mahindra Bank benefited from the over USD 150 billion routs in the market value of Adani group’s 10 listed firms post-publication of the report.