FUNDING COSTS
MotoGP in Noida: UP Govt to fund 50% cost for hosting racing event for 3 years
The Uttar Pradesh government will contribute over 50% of the required funds for MotoGP Bharat, the premier motorcycle racing event, starting next year. The event, scheduled for March at the Buddh International Circuit near Greater Noida, requires a total of Rs 150 crore. The state government will contribute Rs 80 crore, facilitated through Invest UP, while the authorities of Noida, Greater Noida, and Yamuna Expressway will each contribute Rs 12.5 crore.
Tight liquidity forces banks to tap debt markets, shell out more
"To a certain extent, the year-on-year rise in the bank borrowing numbers is a reflection of the merger between HDFC and HDFC Bank. But apart from that, it is clearly a reflection of the tightness in the liquidity and that was, to a certain extent, exacerbated in the month of May because government spending was restricted during the Union election," said Soumyajit Niyogi, director at India Ratings & Research.
US automobile industry threatened by prospects of Chinese EVs entering the country through the Mexican border
The US automobile industry has been threatened by the prospects of low-cost Chinese Electric Vehicles (EVs) reaching the country through the Mexican border. The US-Mexico-Canada trade agreement provides for free movement of goods and services between the three countries. The average price of an EV manufactured in the US has been priced at $55,000 and the Chinese EVs are priced at half this rate.
Flying to Europe? This major airline is latest to introduce an environmental cost surcharge
Lufthansa has introduced an environmental charge on fares, aligning with EU regulations to reduce emissions. Surcharge of up to 72 euros to be applied on flights, offsetting costs of sustainable aviation fuel.
Sweet Profits, Bitter Reality: Who gains the most from the cocoa price surge?
The cocoa industry is facing significant shifts as cocoa prices soar, driven by poor harvests in West Africa. While prices have surged to record highs, small-scale producers in regulated countries like Ivory Coast and Ghana see limited benefits due to pre-set prices. Meanwhile, less regulated countries like Cameroon and Nigeria gain more from market trends. Major processors struggle with high costs and production slowdowns. Climate change, bean disease, and low farmer incomes exacerbate the situation, leading to child labor and land sales. Despite these challenges, major chocolate companies continue to report significant profits.
Loan interest rates in June 2024: These 6 banks have revised loan interest rates in June 2024
Latest loan interest rates: Banks regularly, usually on a monthly basis, assess their marginal cost of lending rates (MCLR) to account for variations in their financing costs and other pertinent aspects. Here are the top banks and their lending rates offered in June 2024, reflecting the changes in MCLR.
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Latest SBI loan interest rates June 2024: State Bank of India hikes interest rates on these loans
SBI loan interest rates June 2024: The State Bank of India (SBI) has hiked the marginal cost of funds-based lending rate (MCLR) on select tenures by 10 basis points (bps), making most consumer loans costlier for borrowers.
Flexible approach in managing liquidity to help money market rates
RBI Governor Shaktikanta Das announced the central bank's commitment to maintaining money market rates and borrowing costs through flexible liquidity management. The RBI will use various operations to manage liquidity, responding to foreign investment flows impacting Indian bond markets. Analysts predict significant foreign flows following inclusion in JPMorgan's bond index, potentially affecting rupee liquidity. Das highlighted the RBI's ability to handle liquidity impact and swiftly respond to banking system liquidity fluctuations.
BNPL startup Simpl undertakes another round of layoffs, rejigs senior leadership
Simpl, a Bengaluru-based consumer credit startup, laid off 30 employees after firing 160 executives. Senior executives Vatsal Jain, Ashwini Ravindranath, and Ramkumar Narayanan resigned. Earlier in April 2023, the BNPL startup let go 25% of its workforce or around 150 employees.
Startups’ new hiring strategies; unprecedented poll buzz online
Happy Thursday! While layoffs continue, startups are strategically refilling certain open positions with lower-salaried junior staff to cut costs. This in today’s ETtech Morning Dispatch.
NBFCs' funding costs to rise as banks cut back
The cost of funds for non-banks in Mumbai may rise by 200 to 300 basis points as banks reduce funding. Recent data shows a drop in bank funds to non-banks. RBI's actions have impacted bank loans to non-banking financial companies, leading to potential margin squeezes.
Pakistan inflation slows to 11.8% in May, lowest in 30 months
The lowest reading comes a week before the central bank meets to review the key rate which has remained at a historic high of 22% for seven straight policy meetings.
Sebi tweaks framework for clearing corps on liquid assets; issues prudential norms for exposure
May 30 (PTI) Capital markets regulator Sebi has tweaked guidelines for accepting liquid assets as collateral by clearing corporations (CCs) and put in place prudential norms for exposure of such entities in a bid to strengthen the risk management framework.
ET Mutual Funds explains: 5 key differences between index funds and index ETFs in India
Index funds and Index ETFs vary in investment requirements and cost structures, with ETFs requiring a demat account and having lower expense ratios compared to index funds.
Top features of personal loans and the factors to consider before getting one
All you need to know about personal loans and what you should keep in mind before opting for one.
Indian fund managers embrace Warren Buffett's advice: The rise of index funds in India
Indian fund managers are embracing Warren Buffett's advice by turning to index funds, which offer simplicity, low cost, and stability. The rise of index funds in India has revolutionized the investment landscape globally and locally.
Flying to the UAE? Dubai, Abu Dhabi increase checks to prevent misuse of tourist visas
Stricter immigration checks at Dubai and Abu Dhabi airports now require visitors to show proof of ₹60,000 in their bank account or a credit card and return ticket. First-time travelers from Tamil Nadu and Kerala are under scrutiny.
Valuations of large private banks oblivious to improved earnings outlook: Santanu Chakrabarti, BNP Paribas
Analyst Santanu Chakrabarti from BNP Paribas highlights undervaluation in large private banks despite positive surprises. Despite a strong FY24, largecap private bank stock price performances were mostly muted. The FY26 look-through on earnings growth is expected to be rosier. HDFC Bank is recommended with a target price of Rs 2,470.
Liquidity deficit surges to four-month high
The shortfall of funds has pushed up the weighted average call rate (WACR), which represents banks' overnight cost of borrowing and functions as a determinant of other borrowing costs in the economy too. On Wednesday, the WACR closed at 6.75%, the same rate as the RBI's Marginal Standing Facility (MSF).
Growth to come from MSME, affordable housing: Rajesh Sharma, Capri Global
Even the current risk rate have been increased, cost of fund is going up. The NBFC is only one option to pass on that cost to the customer
Cash flow struggles, access to finance continue to be major barriers for India’s small businesses: CPA Australia survey
On access to finance, the survey revealed that 42% of respondents said it was easy to seek funds in 2023, a sharp decline from 69% in 2022.
Investing in ELSS mutual funds: 6 things to know
Equity-linked savings schemes (ELSS) serve a dual purpose, offering potential for wealth growth, while providing tax-saving benefit under Section 80C.
Govt ready to fund 50% cost of creating 10,000 GPU capacity in India: Meity secy S Krishnan
The Centre is willing to spend up to half of the cost of creating computing capacity of up to 10,000 graphic processing units (GPUs) in a push to the National Artificial Intelligence (AI) mission, funding can be done either through viability gap funding or a voucher based system
Indian economy projected to expand at 6.6% in FY25, says Moody's
The agency highlighted that strong credit demand, fueled by robust economic growth, will bolster the profitability of the Non-Banking Financial Company (NBFC) sector.
NBFCs' profitability to moderate on higher borrowing costs: Moody’s
“ We expect loans at NBFCs to grow about 15% in the next 12-18 months, driven by various types of lending, including infrastructure financing by large government-owned NBFCs and loans to small and medium-sized enterprises” Moody’s said in a report. “We also expect the sector’s credit costs to increase from cyclically low levels, especially as unsecured loans mature”.
Akshaya Tritiya today: Gold ETF AUM doubles in 3 years to Rs 33,000 crore
Gold ETFs have seen exponential growth, with assets doubling to Rs 33,000 crore in three years. In the last one year, gold ETFs have offered an average return of 15.47%.
Suryoday Small Finance Bank Q4 Results: Net profit soars 56% YoY to Rs 61 crore
The bank's net interest margin for the quarter was 10.1% against 10.4% in the same quarter last year, although it rose sequentially from 9.8%. Operating profit was 25.5% higher at Rs 128 crore against Rs 102 crore. Provisions and contingencies were a ltad lower at Rs 48 crore against Rs 51.5 crore.
Piramal Enterprises back in the black on large tax write-back
On an annual basis, PEL swung to a loss of 1,684 crore from a profit of 9,969 crore, due to the impact of AIF provisions during the fiscal.
Muthoot Microfin looking to raise $50 million in ECB
Muthoot Microfin, headquartered in Ernakulam and part of the Muthoot Pappachan group, aims to secure $50 million through external commercial borrowing (ECB) to diversify its funding sources and extend liability duration. The CEO anticipates a syndicated deal at a lower cost than the current average cost of funds.
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