CREDIT POLICY
India, take a deeptech breath
India's energy landscape is being reshaped by a surge in deeptech startups, fueled by government initiatives and robust investor confidence. These startups are driving innovation in green energy, advanced materials, and artificial intelligence, positioning India as a global innovation hub.
S&P Ratings says US allegations may renew questions on governance practices at Adani
S&P Global Ratings warns that the US indictment of Adani Group's founder Gautam Adani over bribery allegations could harm the conglomerate's reputation and financial standing. The indictment has already impacted Adani Group's stock and bond prices, leading to cancelled bond sales.
Business mentorship and financial inclusion ideas resonate at Jaipur edition of ET Make in India SME Regional Summit
These summits aim to unravel opportunities, tackle challenges and foster knowledge-sharing and networking to propel the next phase of growth for Indian MSMEs.
Goldman Sachs forecasts shallow RBI rate cut starting March 2025, lowers India's FY25 growth outlook to 6.4%
Goldman Sachs predicts the Reserve Bank of India will implement a modest rate cut of 50 basis points by June 2025, commencing in the March quarter. They also revised India's growth forecast to 6.4% for FY25, citing a cyclical slowdown and the impact of a strong dollar. Despite this, the bank maintains India's long-term growth potential remains positive.
Can a COP29 deal clean up scandal-ridden carbon offsets?
Countries are working towards a deal at the COP29 climate talks to establish a U.N.-backed carbon market. The aim is to drive investment in emissions-reduction projects, but concerns remain about the effectiveness and integrity of carbon credits after past scandals. While some see it as a key tool, others criticize it as a distraction from genuine emission cuts.
Bank credit to microfinance borrowers falls by a third
Loan disbursal to microfinance borrowers decreased by 29% in the second quarter. Banks reduced lending more than non-bank lenders. The microfinance market is experiencing stress due to previous over-supply of credit. The outstanding loan portfolio has also decreased. The sector is facing challenges like over-leveraging and inaccurate income assessments.
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Donald Trump's transition team aims to kill Joe Biden EV tax credit
President-elect Donald Trump's team is formulating plans to eliminate the $7,500 tax incentive for electric vehicle buyers. This move is part of a larger tax reform strategy. The energy transition team, led by figures like Harold Hamm, sees this as a straightforward measure likely to garner support in a Republican-controlled Congress.
Microfinance sees 29% fall in Q2 loan delivery as lenders avert risks
Loan disbursal to microfinance borrowers decreased by nearly a third in the second quarter. Banks reduced lending more than non-bank lenders. The overall microfinance market size also contracted for two consecutive quarters. The decline is attributed to a deliberate effort to control the overheated market after significant growth in the previous two years.
Credit deposit growth rate converging
The gap between credit and deposit growth is shrinking as both are seeing slower growth compared to last year. While credit growth is moderating due to factors like the HDFC merger and RBI measures, deposit growth is facing challenges from attractive alternative investments.
Indian firms go slow on overseas borrowing this year
Higher availability of domestic credit and the volatile currency that pushed up hedging costs prompted Indian firms to go slow on overseas borrowings.
US scrutinises Russia accounts UBS took over from Credit Suisse: Sources
The United States Office of Foreign Assets Control (OFAC) is investigating UBS over potential sanctions violations related to Russian clients inherited from its acquisition of Credit Suisse. UBS is cooperating with the inquiry and taking steps to mitigate potential penalties, including isolating and closing accounts deemed high-risk.
COP29 climate summit: Global carbon market set to be reality soon
The COP29 climate summit in Baku saw a significant development as negotiators agreed on rules for a UN-administered global carbon market. This market aims to drive emission reduction projects in developing nations. The agreement operationalizes Article 6.4 of the Paris Agreement. The decision, however, faced criticism for its expedited procedural approach, with some countries expressing concerns over limited consultation time.
India to push for accountability, fair financing, green credit at COP29: delegates
India is advocating for accountability, green credit, fair financing, and incremental goals at COP29 in Baku. The nation is urging developed countries to fulfill climate pledges and provide transparent climate finance. While pushing for an equitable energy transition, India is prioritizing the needs of its developing economy and vulnerable communities.
Trump Presidency set to benefit India, Asian countries due to US-China rivalry: Moody's Ratings
Moody's Ratings predicts that India and other Asian nations could benefit from US-China tensions and investment shifts under a potential Donald Trump presidency. Trump's protectionist trade policies, particularly towards China, are expected to redirect trade and investment flows, potentially benefiting India and ASEAN countries. However, these policies could also disrupt global supply chains and hinder global growth.
Old ways, new needs: Why banks need to change lending systems for exporters
MSMEs in India do not have any shortage of export orders but are unable to move forward as financing options have not kept up with the changes in a disruptive global market.
UP amends incentive policy to attract foreign investors
The Uttar Pradesh government has revised its investment policy to attract more foreign investment. The policy, now called 'Foreign Direct Investment, Foreign Capital Investment and Fortune Global 500 and Fortune India 500 Investment Promotion Policy 2023', will offer incentives to foreign firms investing through loans and equity. Previously, only equity investments were eligible.
India has entered cyclical growth slowdown, RBI's 7.2 pc estimate 'overly optimistic': Nomura
Nomura reports that the Indian economy is experiencing a cyclical growth slowdown, with urban consumption indicators weakening. The brokerage believes the Reserve Bank's GDP growth estimate of 7.2% for FY25 is overly optimistic, highlighting issues such as salary moderation and a decrease in personal loans and lending growth.
'Fair' and 'accurate' sovereign ratings: What Nirmala Sitharaman said to agencies at IMF meet
Union Finance Minister Nirmala Sitharaman urged for fair and accurate sovereign ratings for emerging markets and developing economies at the IMF's 2024 Annual Meeting. She emphasized that ratings should reflect economic fundamentals and improve access to capital. Sitharaman also called for governance reforms in global institutions and highlighted persistent global economic risks like geopolitical tensions and weak growth.
Higher rates, increasing credit costs to temper profits for micro finance cos says S&P
Rising delinquencies in India's microfinance sector will increase credit costs above 5% this fiscal, impacting profitability, S&P analysts say. Regulatory actions and higher borrowing costs pose risks, while expected policy rates reduction may offer some relief. RBI bans on certain NBFCs aim to improve compliance.
RBI move to slow down gold loan growth, lead to uptick in delinquencies: Crisil
The RBI's recent notification urging lenders to revise their gold loan practices may temporarily slow loan growth and increase asset quality stress, Crisil reports. Issues highlighted include improper monitoring of loan-to-value ratios and asset classification. Compliance may affect loan disbursements and taper growth for banks and NBFCs in the near term.
US dollar climbs to 10-week peak; euro, China's yuan fall
The U.S. dollar touched a 10-week high on Monday in thin trading, extending its weeks-long bullish run sparked by data showing a modestly slowing economy that lined up with bets for moderate interest rate cuts by the Federal Reserve.
If rate cut happens in Feb, it will come with significant downward revision of GDP: Union Bank report
The Reserve Bank of India (RBI) holds the repo rate unchanged, shifting its policy stance to neutral, signaling ongoing inflation concerns. The UBI report suggests no rate cut in December due to rising inflation, with a possible rate cut and GDP forecast revision in Q4-FY25.
Nearly 65% of self-employed women in Indian metros have not taken a business loan, shows survey
65% of self-employed women in Indian metros have not taken business loans, with 39% relying on personal savings. A DBS Bank India and CRISIL report highlights that they often use personal assets as collateral. Nearly 73% prefer digital payments and 52% have adopted sustainability policies. A DBS Foundation training program aims to boost financial literacy.
Cuts, cash, credit: China's latest bid to jumpstart flagging economy
China this week unveiled a bundle of new measures aimed at kickstarting its economy, which has been battered in recent years by unprecedented headwinds including a property sector crisis and sluggish spending. The raft of measures, including the cuts, are considered the boldest in years as Beijing aims to revive economic activity.
What should investors do with metal stocks? Aditya Welekar answers
?So, in the month of July, that was the three-month moving average of the property start was minus 20%. So, a real lead indicator for the steel demand is a pickup in the Chinese property starts, so that is where we have to keep focus on.
Kamala Harris owns a gun? Donald Trump wants to cap credit card rates? Party lines blur in campaign's last stretch
US Presidential Election 2024: In a competitive election, Kamala Harris and Donald Trump are adopting unconventional stances to attract broader support. Harris is appealing to Republicans with tough border security and gun ownership, while Trump is courting Democrats with credit card interest rate caps and IVF coverage. Both aim to expand their coalitions.
Government to begin farmer registration for Aadhaar-style IDs from October; targets 5 crore by March
The government will soon start registering farmers nationwide to provide them with a unique ID similar to Aadhaar. This initiative, part of the Rs 2,817-crore Digital Agriculture Mission, aims to register five crore farmers by March next year. The unique ID will streamline access to agricultural schemes and aid in policy planning.
Final guidelines on project loans likely in 2-3 months: RBI official
The final guidelines for project loans are expected to be announced in the next two to three months, according to a senior RBI official. The official added that the Expected Credit Loss-based provisioning norms are also in advanced stages of discussion. Up to 60 responses have been received on the draft guidelines, which are currently being reviewed.
Goldman Sachs cuts India¡¯s 2024 and 2025 GDP growth forecasts
Goldman Sachs lowered India's economic growth projection by 20 basis points for the next two years, highlighting a significant drop in government spending as a key factor. The new forecasts are 6.7% for 2024 and 6.4% for 2025. The Reserve Bank of India's stricter lending rules and fiscal constraints are expected to slow growth, despite potential easing of monetary policy.
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