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MORNING BANKING & FINANCIAL NEWS UPDATES
ISSUE: 090 2022 29 November 2022
BANK CREDIT GROWS TO 17.2 RBI KEY RATES
PER CENT IN SEPTEMBER, Repo Rate: 5.90%
REVEALS RBI DATA: Reserve SDF: 5.65%
Bank of India on Monday released MSF & Bank Rate: 6.15%
quarterly statistics on deposits and CRR: 4.50%
credit highlighting bank credit growth to SLR: 18.00%
17.2 per cent on an annual basis in Fixed Reverse Repo: 3.35%
September from 14.2 per cent a quarter FOREX (RBI REF. RATE)
ago. A year ago, the bank credit growth INR / 1 USD : 81.7545
stood at 7.0 per cent. "Aggregate INR / 1 GBP : 98.6880
deposits growth (y-o-y), which INR / 1 EUR : 84.7881
remained in the close range of 9.5-10.2 INR /100 JPY : 59.1300
per cent since June 2021, stood at 9.8 EQUITY MARKET
per cent in September 2022; since Sensex: 62504.80 (+211.16)
December 2020, bank branches in NIFTY : 18562.80 (+50.00)
metropolitan centres have been Bnk NIFTY: 43020.40 (+36.50)
recording higher annual growth than
those in rural, semi-urban and urban
areas," stated the press release. The Get all consolidated monthly
private sector banks have been financial news, RBI
outpacing public sector banks, foreign guidelines and all Banking
banks and regional rural banks in updates at one place in our
deposit mobilisation. All-India credit- monthly e-magazine
deposit (C-D) ratio increased further to “The Banking &
74.8 per cent in September 2022 from Financial Updates’’
73.5 per cent a quarter ago and 70.0
per cent a year ago. C-D ratio for CLICK TO SUBSCRIBE &
metropolitan bank branches, stood GET LAST 6 MONTHS
much higher at 87.6 per cent in ISSUES WITHOUT COST
September 2022.
(Economic Times)
GDP MAY PRINT AT 5.8% IN Q2: SBI RESEARCH: Citing a weak
manufacturing sector coupled with the steep margin compression, SBI
Research has pencilled in the country's GDP growth for the second quarter
at 5.8 per cent, down 30 basis points from average estimates. The
government will release the official numbers on November 30.
(Moneycontrol)
MORGAN STANLEY SEES SENSEX AT 80,000 BY DECEMBER
2023: Foreign brokerage firm Morgan Stanley sees Sensex hitting 80,000
by December 2023, if India is included in global bond indices which can
result in $20 billion of inflows over the subsequent 12 months. India's
inclusion in global bond indices has already been pushed back. Morgan
Stanley had first anticipated it in early 2022, but a Reuters report in
September stated that the wait might be longer. According to the news
agency, bond settlement rules and tax complexities need to be resolved
before the inclusion takes place. Other factors, as per Morgan Stanley,
which can propel Sensex to 80,000 include commodity prices like oil and
fertiliser correcting sharply, and earnings growth compounding at the rate of
25 percent annually over FY2022-25.
(Moneycontrol)
AMAZON INDIA SHUTTERS B2B DISTRIBUTION ARM, THIRD
BUSINESS CLOSURE IN A WEEK: Amazon has shuttered its third
business in India in a week, with the company now closing down its B2B
distribution business Amazon Distribution. This comes after the company
announced it was closing down edtech arm of Amazon Academy and the
food delivery service Amazon Food. “As part of our annual operating
planning review process, we have made the decision to discontinue
Amazon Distribution, our wholesale e-commerce website for small
neighborhood stores around Bengaluru, Mysore & Hubli,” the spokesperson
said.
(Moneycontrol)
S&P CUTS INDIA'S GROWTH FORECAST TO 7 PER CENT FOR
FY23: S&P Global Ratings on Monday cut India's economic growth
forecast for current fiscal year to 7 per cent, but said the domestic demand-
led economy will be less impacted by the global slowdown.
(Business Line)
STRONG BANK LOAN GROWTH IN FY23 DESPITE HIGHER
INTEREST RATES: FITCH RATINGS: Fitch Ratings said India’s bank
credit will see strong growth in current financial year despite effects of
higher interest rates. “We see bank credit expanding by around 13 per cent
in FY23, up from 11.5 per cent in FY22.
(Financial Express)
REGULATORY FORBEARANCE OFFERED TO IDBI BANK
BUYER: The government’s residual 15% stake in IDBI Bank post the
strategic disinvestment of the lender will likely be considered as ‘public
shareholding’ and a reasonable period may be given to the potential buyer
to comply with minimum public shareholding (MPS) norm, the finance
ministry said on Sunday. IDBI Bank will continue to operate as an ‘Indian
private sector bank’ after its strategic sale, it added. The department of
investment and public asset management (Dipam) also said that the
winning bidder will have no restriction on undertaking a corporate
restructuring of the subsidiaries of the bank. It also said that certain asset
sizes and timing thresholds related to asset stripping would be provided to
give flexibility in operations to the successful bidder.
(Financial Express)
HSBC ACQUIRES L&T MF; SCHEMES TO BE TRANSFERRED
OR MERGED WITH HSBC SCHEMES: HSBC Asset Management
(India) has said that it has completed the acquisition of L&T Investment
Management for a consideration of US$ 425 million, subject to closing
adjustments. L&T Investment Management is a wholly-owned subsidiary of
L&T Finance Holdings and the investment manager of L&T Mutual Fund.
(Economic Times)
JET AIRWAYS RESOLUTION PLAN TOTTERS ON
DISAGREEMENT WITH CREDITORS: Jet Airways' creditors and its
new owners are deadlocked over a resolution plan to lift the Indian airline
out of bankruptcy, putting its future in limbo, four sources said. Creditors
may approach India's aviation ministry to seek approval to liquidate Jet's
assets if there is no resolution on Tuesday in a critical court hearing, a
senior banker said. "There are concerns the resolution plan may fall apart
so we are looking to see if we can at least get something out of this deal via
the liquidation route," the banker, who has direct knowledge of the matter,
told Reuters on Monday.
(Business Standard)
C4D PARTNERS GETS SEBI'S NOD TO LAUNCH FUND TO
INVEST IN INDIAN STARTUPS: Netherland-based C4D Partners gets
SEBi's approval to launch its USD 50 million (about Rs 408 crore) fund for
investments in Indian startups. "The company has recently received the nod
from SEBI for its debut India fund worth USD 50 million and expects to
achieve the first close of the fund by the mid of next year," C4D Partners
said in a statement. With the launch of the C4D Bharat Shubharambh Fund,
C4D Partners will continue to focus on sustainable business models with
solid ESG (environment, social, and governance) scoring, it added.
(Business Standard)
UNION FINANCE MINISTER CONCLUDES PRE-BUDGET
MEETINGS FOR FORTHCOMING UNION BUDGET 2023-24:
Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman
chaired the pre-budget consultation meetings for Budget 2023-24 held in
virtual mode from 21st to 28th November, 2022. More than 110 invitees
representing 7 stakeholder groups participated in 8 meetings scheduled
during this period. The representatives of the stakeholder groups made a
number of suggestions that included mechanism for green certification to
help MSMEs , urban employment guarantee programme to boost
employment generation in urban areas, rationalization of income tax,
creation of innovation clusters, schemes for improving domestic supply
chains, reduction of taxes on electric vehicle, introduction of EV
policy, measures to promote India as a hub for Green Hydrogen, National
Regulatory Authority for Water and Sanitation, coverage of unorganised
workers under ESIC, continuation of Public Capex, fiscal consolidation and
lower customs duties, among others.
(PiB, Govt. of India)
SEBI REVISES FRAMEWORK FOR APPROVING CHANGES IN
CONTROL OF STOCK BROKERS: SEBI has put in place a revised
framework for seeking its prior approval for changes in control of stock
brokers, depository participants and other market intermediaries. The
framework will be applicable for stock broker/clearing member, depository
participant, investment adviser, research analyst or research entity, registrar
to an issue and share transfer agent and KYC Registration Agencies
(KRAs). Under the provisions, which will be effective from December 1, an
intermediary should apply online for Sebi's prior approval and along with the
application, the entity concerned has to submit various details, including the
current and proposed shareholding pattern of the applicant. "The prior
approval granted by Sebi shall be valid for a period of six months from the
date of such approval within which the applicant shall file application for
fresh registration pursuant to change in control," it said.
(Business Standard)
JAPAN TRADE BODY PRAISES PM GATI SHAKTI PLAN AS A
'GAME CHANGER' FOR BIZ: PM Gati Shakti, Prime Minister Narendra
Modi's ambitious multi-trillion infrastructure project focusing on easing
logistics will be a game changer for businesses and will attract foreign
investments, Kazuya Nakajo, Executive Vice President, Japan External
Trade Organisation (JETRO) said.
(Business Standard)
FINANCIAL TERMINOLOGY/CONCEPTS
OPEN BOOK MANAGEMENT
Open book management (OBM) is defined as empowering every
employee of an organisation with required knowledge about the
processes, adequate training and powers to make decisions which
would help them in running a business. It is all about team work and
moving forward collectively.
Open book management is defined as one of the most dynamic
approaches in running a business. It involves keeping complete
transparency with employees, sharing data, training employees to
embrace leadership roles as well as sharing financial statements.
Research has shown that when companies share distinct details about
the organisation with the employees, this process helps them grow
faster. Most of the companies where this concept is followed generally
figure among the top 10% of the companies.
When a company shares sensitive information with employees, it leads
to better employee-employer relationship, helps build trust and boosts
the morale of employees. Open book management approach is about
showing employees' the financial statement data and making them
believe that every effort of theirs is getting reflected in the overall
numbers of the company. This facilitates in building the trust as well as
enables companies in retaining employees.
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