nsurance Stocks – CoNBFCs seek Priority Sector tag for 2 wheeler loans financed through Bank Credit
Two-wheelers play a crucial role in the rural economy as they help improve the standard of living, and bring about convenient and safer movement at affordable price. They also help increase earnings. The use of two-wheelers in the rural economy is not limited to self-riding but also for carrying and delivering milk, vegetables and other merchandise of day-to-day use. The penetration of two-wheelers is lower in India than in other developing countries. Considering the value and usage, Finance Industry Development Council ( FIDC) has made a request to authorities concerned to consider the financial assistance to purchase two-wheelers in the rural economy as priority sector lending.
India Rating & Research (Ind-Ra) is bullish on Indian Banks. The sector affected back to back due to Covid related challenges, according to Ind-Ra is expected to fair very well during the forthcoming fiscal. The Banking Sector credit growth in the country, it is estimated to hit double digits in eight years, supported by demand for loans from companies to augment rising capital expenditure. The Fitch arm expects credit growth to clock 10% in FY 23 (highest since FY 14 when it had grown by 14%). During the current fiscal the growth is pegged at 8.4% (down from earlier estimates of 8.9%. Comforting news for Banks, Bankers and Bank Investors !
The inflation reported in the country for January 2022 is 6.01%, breaching RBI’s upper tolerance limit of 6 per cent. While the headline number came as no surprise, given that the central bank had forecast the acceleration, the official data merit scrutiny. Provisional estimates show that the hinterland, with its greater proportion of poor, bore the brunt of rising food prices with rural price inflation climbing to 5.18% from December level of 3.39%. Though the RBI had been expected to start normalising its pandemic-era policy stance in this month’s monetary policy meeting and re-affirm the resolve to contain inflation, the central bank retained the status-quo expecting to aid economic growth. The RBI Governor has defended the projection for inflation to slow to 4.5% in FY 23, by citing the base effect as the cause for higher inflation this fiscal and predicted a similar base effect would help enable a downtrend in the months ahead. The central bank’s assumptions, however, could unravel if storm clouds on the horizon intensify. Uncertainty over the Ukraine-Russia tensions pushed global crude prices to seven year high now.
January inflation in transport and communications, which reflects retail fuel prices, slowed a bit from the December level, but was still at 9.36%. Pump prices remained static for a while, thanks to the assembly elections underway in different parts of the country. The Centre would soon have to allow oil marketers to pass on the global price increase to the consumers, which will spur inflation further. Add to this mix, the uneven economic recovery from the pandemic and the outlook gets even cloudier. Uncertainty around growth prospects stemmed from concerns about inflationary pressures.
TransUnion CIBIL partners with FICCI to help MSMEs
The partnership aims at empowering MSMEs with knowledge on how to build a good credit history and CIBIL Rank to avail easier and faster access to finance. Commenting on this partnership, the Chief Operating Officer of TransUnion CIBIL, Harshala Chandorkar, said, “The MSME sector forms the backbone of India’s economy and can act as a catalyst for growth. Insights show that only about one-third of MSMEs in India are served through the formal credit ecosystem, indicating significant opportunities for increasing credit penetration in this key sector. With the launch of this program, we aim to drive even greater awareness amongst MSMEs and empower them”.
SEBI Plans Tougher Disclosure Norms for New-Age Companies’ IPOs
Market regulator Securities and Exchange Board of India (SEBI) ) has proposed to tighten disclosure standards for new-age companies that plan to float initial public offerings (IPOs). According to a discussion paper floated by Sebi on Friday, such companies will have to disclose more details pertaining to how they arrived upon the offer price for their IPOs. This proposal aims to cover only those companies which don’t fulfil the three-year profitability track record, while the rules remain unchanged for others.
LIC’s $8 billion IPO to be launched on March 11, touted to be the biggest IPO in Indian history
A public offering of shares by India’s state-run Life Insurance Corp (LIC), set to be the country’s biggest ever at $8 billion, is expected to open for anchor investors on March 11, three sources with direct knowledge of the matter told Reuters. LIC’s initial public offering (IPO) is expected to obtain regulatory approval by the first week of March after which an indicative marketing price band will be set, said the sources, declining to be named as the deal discussions are private.
Juspay Launches Software to make Digital Wallets mutually compatible
RBI had, in May 2021, mandated that all prepaid cards and wallets that are fully KYC compliant, must be fully interoperable or mutually compatible, by March 31, 2022. And here is the solution from Juspay.
OiQ3 Earnings Slowest in six quarters gone by : What lies ahead for India Inc:
Fighting the third Covid wave and high base effect, India Inc continued to clock a healthy quarterly performance in Q3 of FY22. Trend analysis by global brokerage Jefferies points out that IT companies reported strong revenues growth with a positive margin trend, while private banks clocked sequential loan growth and improved asset quality.
Nandan Nilekani and Tanuj Bhojwani talks on “keeping calm in the digital world” – Very thought provoking conversation on very current topi
When the co-founder of Infosys and architect of the unique identity project, Aadhaar, Nandan Nilekani, talks about disconnecting from devices, it certainly seems a bit odd. But, while believing in the transformational power of technology, he says everyone must practice digital hygiene to be effective.
IT is gathering momentum : IT has beaten headwinds by moving up the value chain but digital innovation holds the key
The IT sector has proved many naysayers wrong by adapting to technological change. After a prolonged period of single-digit growth in industry revenue at 7-9 per cent, Nasscom has projected over 15 per cent growth in FY 2022 at $227 billion, the highest since 2011 and $30 billion up from FY21.
ICAI to explore use of Blockchain Technology in Auditing – Aiming at stricter compliance
Chartered accountants’ apex body ICAI will explore the use of blockchain technology in auditing, its new president Debashis Mitra said. Technology will be a major focus of the Institute of Chartered Accountants of India (ICAI) as it not only disrupts but will also creates opportunities, Mitra told PTI.
