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Cost of FAME 3: Meet local sourcing norms or face penalty
Companies certifying vehicles for subsidies under FAME 3 - scheduled to be announced in the upcoming budget - will have to undergo a techno-commercial audit twice a year to ascertain they are meeting localisation guidelines. If they come up short, they will have to pay penalties.
Long-range EVs now cost less than the average new car in the US
The automotive industry in the US is experiencing a competitive phase in the electric vehicle market, leading to EVs with over 300 miles of range being cheaper than gas-powered cars for American buyers.
Sandip Agarwal's 4 top bets from IT sector for near term
I think now the attrition rates are under control. Margin should expand because margin is a direct factor of where your attrition is, utilisation is. So, I think the revenue growth I do not see will pick up very substantially immediately, because if at all the ECB rate cut has happened, now in US also we are expecting some cool off to happen on the rate front.
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.
Brazil, Canada, EU urge India to submit timely notifications on sugar subsidies in WTO
A group of WTO member countries, including Brazil, Canada and the European Union, have urged India to submit timely notifications on sugar subsidies in the World Trade Organisation, an official said. The issue came up for discussion during the meeting of the WTO's agriculture committee on May 23-24 in Geneva.
Amazon India gets funds; IT margins hit
Amazon has ploughed fresh funds in its Indian marketplace entity. This and more in today’s ETtech Top 5.
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Tighter regulations on personal loans and project finance may hurt banks in FY25
Indian banks had a strong fiscal 2024 but face challenges in the current year due to regulatory changes impacting credit growth and net interest margins. Return ratios and riskier lending are also areas of concern as the market adapts.
What's the new RBI proposal giving cold sweats to lenders?
The Reserve Bank of India (RBI) has proposed stringent new rules for project finance, aiming to minimize risks associated with long-gestation infrastructure projects. These regulations include higher provisioning during construction phases and classification of delayed projects as non-performing assets. However, banks and NBFCs fear these rules may hinder project viability and impede India's capital expenditure momentum.
Buses will see more traction in electric technology as compared to trucks: Vinod Aggarwal, VECV
It was basically recovering from the COVID period. And now, I would say you are right that the nominal GDP growth is 12%, 13%, the CV industry overall should grow better than that and we will see that happening I think in the future, it will happen.
Norms for swappable e-bus batteries; Avanse, Subko raise funds
The government is framing rules to enhance interoperability for batteries used in electric buses. This and more in today’s ETtech Top 5.
Tesla at the gates, India rolls out red carpet for global EV makers
Under the new EV policy, companies pledging to manufacture in India can import up to 8,000 EVs annually at a substantially reduced customs duty rate of 15%. The policy document stipulates the allowance for the carryover of any unused annual import quotas
Pitch to Tesla, India readies the red carpet for global majors with new EV policy
India introduced a scheme offering concessional tariffs to global EV players like Tesla. The policy aims to boost electric passenger car manufacturing by providing incentives for fresh investments and maintaining import duty regulations to encourage local production. Commenting on the move, Mahendra Nath Pandey, Union Minister for Heavy Industries said, “Companies setting up manufacturing facilities for EVs will be allowed a limited import of cars at lower custom duties.”
New lending landscape: Fintech powers banks to storm NBFC bastion
The lending landscape in India is undergoing a change with the spread of digitisation and the advent of fintechs. In the past, banks were hobbled by the lack of infrastructure and costs involved in expanding their geographic footprint into the hinterland. But fintechs and advancements in technology enabled banks to extend their reach without significant inflation in fixed costs.
The margin of safety: the ten-billion-dollar lesson from Amgen
A notable book that emphasized the importance of corporate culture by looking at successful companies (stock price performance as a guide) ranked Amgen prominently. Amgen's adeptness in "embracing a myriad of possible dangers" was a strategic manoeuvre that propelled the company to a superior standing.
Personal loan interest rate likely to rise up to 1.5%; loan eligibility norms to get tighter in 2024 with RBI new rule
Personal loan interest rates to go up in 2024: All lenders regulated by the RBI are required to hold capital in a certain proportion of the loan amount they lend. The riskier the loan, higher the capital a lender has to maintain. As a direct consequence of the RBI raising the risk weightage, lenders now have to maintain higher capital reserves for the riskier category. What changes for the lenders? Read on to know how much more you will have to pay for your next personal loan.
RBI eases credit concentration norms for NBFCs
In new directions effective immediately, exposures to state and central governments, security deposits of borrowers held as collateral and national credit guarantee schemes among others have been exempted from concentration limits allowing NBFCs to reduce their concentration risk.
What's in and what's out in 2024: Changes coming in workplace, travel, business and economy
In 2024, workplaces shift towards mandatory office presence, ending remote work era. Travel sees a rise in short trips to visa-free countries. Startups face funding challenges, emphasizing profitability. Hybrid cars dominate the auto industry, and premium experiences and personalised fitness gain traction in consumer trends.
Govt suspends newly formed Wrestling Federation of India
The Union sports ministry has suspended the Wrestling Federation of India (WFI) for disregarding legal and procedural norms and claiming that the newly-elected body appears to be in complete control of former office-bearers. The ministry requested the Indian Olympic Association (IOA) to form an ad-hoc committee to manage the affairs of the governing body.
RBI's vigilance: New consumer credit norms to bolster India's financial stability amidst surging loan growth
RBI loan ban: The Reserve Bank of India (RBI) has implemented stringent measures impacting banks and non-bank financial institutions to address burgeoning consumer credit risks. Fitch Ratings highlighted these changes as a credit-positive step. Concerns arose due to the surge in unsecured credit card and personal loan growth, prompting regulatory action.
Not much impact on margins after RBI hikes risk weight on unsecured lending: RBL Bank
"Our capital (CET 1 ratio) cost will go by 60 bps because of the RBI action, but the impact on our margin will be negligible at 1-2 bps only," the bank's chief executive and managing director R Subramaniakumar told reporters on the sidelines of the IBA-Ficci-organised national banking summit here on Wednesday.
Q2 is a transitory quarter because we have just been through an emission norms change: Kirloskar Oil Engines MD
“We have seen a reduction in volume in Q2 as compared to Q1 because there was a significant pre-buy in Q1 that happened because of the CPCB4 norm change. And because of that volume reduction, we have the operating leverage not kicking in and therefore a knock on margins per se in Q2. At the half year level though, we are well on track.”
Cross-border norms bring ePay companies directly under RBI watch
With regulatory clarity comes an opportunity to attract more venture money to tap into the burgeoning export-import market of a growing economy.
We have enough gas in our tank and even if there is turbulence, we will be very safe: V Vaidyanathan, IDFC First Bank
“The really good news for the bank is customer deposits are growing thick and strong for the bank, it is up like 44%. So, if not 44%, at least 40% is very much sustainable for the rest of the year. The route is very clear to us. As for ROA, there will be a year-on-year growth and it has moved out literally from 0 to 1 in four years.”
Should you buy Avenue Supermarts & Delta on dips? Hemang Jani answers
“Delta Corp is a small company and we do not have too many options when it comes to this entire category, the gaming and the casino and all that. Some people will find it quite attractive at this point, given that it has corrected almost about 25-30% from the high.”
TVS, Ather, Ola hike prices of electric two-wheelers as new subsidy norms kick in
In a statement, TVS Motor Company stated that in order to propel the electrification journey further in a sustainable manner after FAME II scheme revision, it has increased iQube's price between Rs 17,000 and Rs 22,000 depending on the variant. The iQube base and S trims were earlier priced at Rs 1,06,384 and Rs 1,16,886, respectively in Delhi.
Gold ETFs likely to become less attractive after government removes tax benefits
As the impact of removal of tax benefits on gold bonds and gold ETFs has to still play itself out, it could depend upon various factors such as investor sentiment, market conditions, and the demand for gold as an investment asset, he further said.
Brokers struggle with new client collateral norms
Some brokers are taking 15-20 minutes to set a limit for trading after fund transfers, while the limit for pledged shares is taking 45-90 minutes, said market participants. This is resulting in delay in immediate trade execution, they said.
Will Maruti Suzuki need more price hikes to normalise margins? Shashank Srivastava answers
“Maruti Suzuki's numbers for passenger vehicles are 1,47,000 against 1,29,000 last year. That is a growth of about 14.5% and we did add through our inventory because our retails were 1,02,000. That was expected because of the low inventories which we began the month with. . That was expected because of the low inventories which we began the month with.”
New peak margin norms bring uncertainty for traders, brokers
Brokers said traders are facing uncertainty over how much margins they must bring in at the time of initiating a trade in equity derivatives. This is because the new peak margin norms are leading to intra-day changes in upfront margin requirements, leading to non-compliance of rules in most cases and penalties for brokers.
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