Government invites bids for asset valuer for IDBI Bank disinvestment

Posted By: Ramesh Sharma Posted On: Sep 04, 2023
As of March 2023, LIC holds 49.24%, while the government holds 45.48% in IDBI Bank. Mint

The government has invited bids to engage an asset valuer for the strategic disinvestment of IDBI Bank.

The government and the LIC are selling about 61% stake in IDBI Bank and multiple expressions of interest (EoI) for the same have been received.

The Department of Investment & Public Asset Management (DIPAM), on behalf of the government and LIC, on Monday floated a request for proposal (RFP) to engage a “reputed Asset Valuer Entity -registered with Insolvency & Bankruptcy Board of India (IBBI), to act as the Asset Valuer for undertaking the IDBI Bank assets' valuation and provide requisite assistance in the process of strategic disinvestment of IDBI Bank, till the completion of the transaction."

“The contract (of asset valuer) in respect of the assignment shall be initially valid for a period of 3 (three) years from the date of issue of appointment letter and shall be extendable by 1 (one) more year on existing terms and conditions," the RFP said.

October 9 is the last date to submit bids.

In May 2021, the cabinet committee on economic affairs (CCEA) had approved strategic disinvestment of The government and LIC's equity, along with transfer of management control, in IDBI Bank.

The asset valuer would be required to value IDBI Bank's investments (including investments in subsidiaries and associates and joint ventures and affiliates, as applicable); loans & advances; fixed assets and other assets, said the RFP.

The asset valuer shall also have to work closely with transaction advisor and legal advisor appointed by DIPAM.

IDBI Bank's liabilities include deposits, borrowings and other liabilities and provisions.

In October 2022, DIPAM had invited EoIs for selling 30.48% stake in IDBI Bank, along with 30.24% stake of LIC.

DIPAM manages government holding in state-owned enterprises.

As of March 2023, LIC holds 49.24%, while the government holds 45.48% in IDBI Bank.

Post the strategic disinvestment of IDBI Bank, the government and LIC would own 15% and 19%, respectively in the bank, taking their total holding to 34%.

Source: Live Mint
Related Posts: IDBI BANK SALE,IDBI DISINVESTMENT,DIPAM,LIC,CCEA

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US economic growth

Posted By: Ramesh Sharma Posted On: Sep 30, 2023
S&P said the company doesn?t expect a short shutdown of a few weeks to result in credit pressures for US public finance issuers. (Representative Image)

A looming US government shutdown threatens the economy, but probably won’t challenge the country’s sovereign debt rating, said Joydeep Mukherji, managing director at S&P Global Ratings.

In contrast with the US government debt-ceiling impasse earlier this year, “a shutdown does not raise the risk of an event of default," said Mukherji in an email. “Such an outcome would affect economic activity but is not likely to have an impact on the sovereign rating." S&P released a report on the impact of the shutdown for the US public finance sector on Friday.

If a shutdown begins on Oct. 1, S&P expects “the federal government will continue to provide essential services and meet its spending commitments (including paying for debt service) that do not rely on annual budgetary appropriations from Congress," Mukherji said.

Also Read: S&P retains India's FY24 growth forecast at 6%, citing global economic slowdown, rising monsoon risks

In Friday's report, S&P said the company doesn't expect a short shutdown of a few weeks to result in credit pressures for US public finance issuers. The agency did warn that a lengthy furlough for the government “could introduce credit pressures as funding and reimbursement delays flow down to public finance entities that lack liquidity and other revenue sources."

In March as the latest debt ceiling tussle loomed, S&P Global Ratings said in a statement it “could lower the rating over the next two to three years if unexpected negative political developments weigh on the strength of American institutions and the effectiveness of long-term policymaking or jeopardize the dollar's status as the world's leading reserve currency."

Also Read: S&P Global downgrades Vedanta Resources to CCC, second rating cut this week after Moody's

At the time S&P affirmed its ‘AA ' long-term and ‘A-1 ' short-term unsolicited sovereign credit ratings on the US. The outlook on the long-term rating remained stable.

Earlier this week, Moody's, the only remaining major rating agency to retain the US as a Triple A credit signaled that any shutdown “would underscore the weakness of US institutional and governance strength relative to other Aaa-rated sovereigns."

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Source: Live Mint
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Vivek Ramaswamy vows to end ‘birthright citizenship’ for immigrants

Posted By: Ajay Rawat Posted On: Sep 29, 2023
Vivek Ramaswamy vows to end ?birthright citizenship? for immigrants (REUTERS)

In another bombshell statement, Vivek Ramaswamy said that he would work towards ending birthright citizenship in the US if he becomes the President. A similar proposal was suggested by former President Donald Trump during his presidential campaign of 2015.

Univision host Ilia Calderón asked the Republican presidential candidate “what legal premise" he would use to expel undocumented immigrants and their American-born children from the country.

To this, Ramaswamy responded saying his opponents onstage “are on the right side of this issue" by supporting the militarization of the southern border, defunding “sanctuary cities," and an end to foreign aid to Mexico and Central America, but the candidate said he would go a “step further" by ending “birthright citizenship for the kids of illegal immigrants in this country."

“The 14th Amendment — which guarantees birthright citizenship to most people born in the United States — says “all persons born or naturalized in the United States and subject to the laws and jurisdiction thereof, are citizens," he said, as quoted by The Washington Post.

“The children of undocumented immigrants born in the United States should not be granted citizenship, because their parents broke of law to be in the country."

“As the father of two sons, it is hard for me to look them in the eye and say, ‘You have to follow the law,' when our own government fails to follow its own laws," The Post quoted Ramaswamy as saying.

Notably, birthright citizenship is a common target of Republican candidates on the campaign trail. In 2015, Trump proposed that Congress should end birthright citizenship for children born to undocumented immigrants in the United States.

In 2018, Donald Trump said he planned to issue an executive order that would end the automatic grant of citizenship to those born in this country to noncitizens, however, that order never came to fruition, the Washington post reported.

(With agency inputs)

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Source: Live Mint
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Diamond industry grapples with major slump in demand

Posted By: Jogendra Kumar Posted On: Sep 28, 2023
Nine out of 10 of the world?s rough diamonds are cut and polished in India. (Mint)

India’s diamond cutting and polishing trade is facing an unprecedented crisis amid falling demand, prompting trade bodies to ask members to halt the imports of rough stones for two months.

This is the “worst-ever demand crisis," said Anoop Vrajlal Mehta, president of Bharat Diamond Bourse (BDB), India's hub of diamond trading with the rest of the world. This is just the fifth time since the 1970s that trade associations have made such an appeal to members to halt imports.

The country cuts and polishes nine out of 10 of the world's rough diamonds, providing employment to two million Indians. So far this financial year, exports are down 30.27% from a year ago to $7.03 billion, the worst fall in at least five years.

Demand has collapsed in China, which is battling an economic slowdown after a property bubble burst. In the US, another key market, consumers are shunning luxury goods amid high inflation fuelled by an easy monetary policy during the pandemic. China accounts for 13% of polished diamond exports from India and the US 45-48%.

“Polished diamond prices have fallen by 15-20% from a year ago," said Mehta, who is also chairman and managing director of Mohit Diamonds, one of the 38 Indian sightholders of De Beers. Sightholders are companies authorized by De Beers to buy rough diamonds.

What's worrying is that the fall in demand seems to be structural, with prices for natural diamonds (as opposed to lab-grown diamonds) collapsing by 59% in the past three years, according to a report by Edahn Golan Diamond Research.

“In China, because of a general economic slowdown…offtake has completely ceased, and the US is seeing around 5-10% dent in demand because of tighter monetary conditions," said Vipul Shah, managing director and chief executive officer of Asian Star, another De Beers sightholder.

Shah said a recovery from this demand downturn “seems more difficult" compared to past instances.

Low demand has led to a pile-up of inventory, and thus the call to halt imports, added Shah. “That's why we need to balance the supply-demand dynamic and take a call on the evolving situation by November end."

Industry associations such as the commerce ministry-sponsored Gem and Jewellery Export Promotion Council (GJEPC), BDB and Surat Diamond Bourse have called for a halt on imports of rough diamonds from 15 October to 15 December by their members. Previous instances of such import interruptions include Saudi Arabia's oil embargo in 1973, the 1992 balance of payments crisis in India, the 2008 global financial crisis and in 2019 due to a slowdown just months before the pandemic.

The outlook, too, is none too promising with order books for cutting and polishing down compared to a year ago.

“The domestic market is doing well, but wherever the economy is struggling, exports are not picking up," said Shah, who is also chairman of the GJEPC. Traditionally, gems and jewellery demand picks up ahead of the festive season, but that is not happening this year.

India imports rough diamonds from the likes of De Beers, Rio Tinto and Russia's Alrosa. The imports flow through BDB, from where they are shipped to Surat Diamond Bourse, where cutting and polishing happen before polished diamonds are re-routed to BDB, from where they are exported to the US, Hong Kong and Belgium.

Source: Live Mint
Related Posts: DIAMOND,ANOOP VRAJLAL MEHTA,BHARAT DIAMOND BOURSE,BDB,DIAMOND TRADING,ROUGH DIAMONDS,CHINA,INFLATION,MONETARY POLICY,POLISHED DIAMOND,EXPORTS,MOHIT DIAMONDS,DE BEERS

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India ready to share DPI ecosystem with global south

Posted By: Ramesh Sharma Posted On: Sep 22, 2023
DPIs facilitate innovation, and are effective for both public and private sector, especially for SMEs of emerging countries as well as developed economies.

New Delhi: India is ready to share technical capabilities and knowledge related to its Digital Public Infrastructure (DPI) ecosystem for financial inclusion efforts of the Global South, Ajay Seth, secretary, Department of Economic Affairs (DEA) said on Friday.

Speaking at the International Conference on Digital Public Infrastructure, Seth said that India has used ecosystems around DPI, which is an interoperable, scalable, open, and inclusive system, digitally empowering, to provide society wide services by public and private players.

"We developed a solution approach for delivering the best in the class services for the last mile and even the remotest parts of the country," Seth said adding that the country's achievements are well known in numbers.

The world's largest financial inclusion mission, the Pradhan Mantri Jan-Dhan Yojana (PMJDY), crossed the 500 million mark last month, nine years after it was launched with over ₹2 trillion worth of deposits. Over 55.5% of bank accounts belong to women, and 67% come from rural and semi-urban areas.

The average balance in these accounts is over ₹4,000. Our digital payment system, UPI, crossed 10 billion transactions in the month of August alone," Seth said. “Today, more than 5.5 crore Jan Dhan (Pradhan Mantri Jan Dhan Yojana) accounts are receiving direct benefit transfers and government schemes have already made savings of over $27 billion.

He said that DPI approaches are capable of solving societal problems at a scale even under crisis.

"DPIs facilitate innovation, and are effective for both public and private sector, especially for SMEs of emerging countries as well as developed economies," Seth said.

"In the backdrop of challenges, the need of the hour is to identify simple, scalable, tested and sustainable solutions that can transform our societies and economies by eradicating poverty and ensuring universal healthcare and education," he added.

Meanwhile, chief economic advisor, V. Anantha Nageswaran, present at the event, said that critical areas where countries can collaborate for financial inclusion and growth through the DPI approach include knowledge sharing, capacity building, and cross border linkages to help remittances.

Our first step should be to encourage and foster knowledge sharing on the design, development and operations of DPIs," Nageswaran said. “These collaborations will lead to refinements of DPIs in countries that have already implemented them.

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Source: Live Mint
Related Posts: DIGITAL PUBLIC INFRASTRUCTURE,FINANCIAL INCLUSION,GLOBAL SOUTH,PRADHAN MANTRI JAN-DHAN YOJANA,UPI,DIGITAL PAYMENTS

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Ukraine's Zelensky Arrives in Canada on Unannounced Visit Published 10 minutes ago

Posted By: Preeti Dabar Posted On: Sep 22, 2023

Ukrainian President Volodymyr Zelensky arrived in Canada Thursday night from the United States on an unannounced visit to rally support for his country as it fights the Russian invasion.

Prime Minister Justin Trudeau greeted Zelensky as he stepped off his plane in Ottawa, as seen on Canadian TV, traveling from Washington for his first visit here since the war started in February 2022.

In Washington, Zelensky met with President Joe Biden and leaders of Congress.

Canada is home to a large Ukrainian community and Trudeau's government has pledged firm and lasting support for Ukraine as it battles Russian forces.

On Friday, Zelensky will hold formal talks with Trudeau and give a speech to the Canadian parliament.

He and Trudeau will also travel to Toronto to meet with business leaders and members of the community of Canadians of Ukrainian origin.

Source: News18
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Trai issues pre-consultation paper on inputs for National Broadcasting Policy

Posted By: Jogendra Kumar Posted On: Sep 21, 2023
A National Broadcasting Policy stipulating the vision, mission, strategies and the action points could set the tone for a planned development and growth of the broadcasting sector in the country. (File Photo: PTI)

New Delhi: The Telecom Regulatory Authority of India has issued a pre-consultation paper on inputs for formulation of a ‘National Broadcasting Policy.’ This July, the ministry of information and broadcasting had requested the regulatory authority to give its considered inputs under the TRAI Act, 1997, for formulation of the policy.

In its letter, the ministry said that the broadcast policy needs to identify the vision of a functional, vibrant and resilient broadcasting sector which can project India's diverse culture and rich heritage and help the country's transition to a digital and empowered economy. “In the light of the potentialities and intersection with national goals, a National Broadcasting Policy stipulating the vision, mission, strategies and the action points could set the tone for a planned development and growth of the broadcasting sector in the country in the era of new and emerging technologies," a statement from Trai said.

Hence, a pre-consultation is being done with all stakeholders to elicit the issues which are required to be considered for formulation of such a policy, Trai has said. Written comments from stakeholders have been invited by 10 October.

Last month, Trai had released a consultation paper on issues faced by the broadcasting sector, seeking responses to 32 questions, ranging from tariff, interconnection, and quality of service to financial disincentives.

The authority had sought response on whether the network capacity fee (NCF) of ₹130 should be reviewed and if distribution platform owners (DPOs) should be allowed to have variable NCF for different bouquets or plans within the same location.

Trai also sought views on whether it should revise the current provision that NCF for second TV connection and onwards in multi-TV homes should not be more than 40% of declared NCF per additional TV, and in case of such homes, whether the pay television channels for each additional TV connection be also made available at a discounted price.

Source: Live Mint
Related Posts: TRAI,BROADCASTING,TELECOM REGULATORY AUTHORITY OF INDIA,PRE-CONSULTATION PAPER,NATIONAL BROADCASTING POLICY,TRAI ACT,MINISTRY OF INFORMATION AND BROADCASTING

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Why Trai wants to cut the entry fees for various licences

Posted By: Vanshika Pathak Posted On: Sep 20, 2023
While some telecom service providers have called for entry fees to be abolished, the telecom regulator has suggested a 50% reduction (Photo: Pradeep Gaur/Mint)

New Delhi: The Telecom Regulatory Authority of India has proposed reducing the entry fee for various licenses and services and rationalising bank guarantees that service providers pay to the government. The entry fee is a one-time payment that companies must pay when entering the Indian telecom market, and varies with the type of service they offer. Bank guarantees act as backups or contingent payments that the government can encash in case a company fails to meet the licence conditions. Mint explains the development.

Why does Trai want to reduce the entry fee?

The entry fee is usually non-refundable and is part of a firm's startup costs. It varies with the type of service that the company wants to offer. For instance a unified license, which allows all services including mobile telephony, internet broadband and landline services, has a maximum entry fee of ₹15 crore, while a virtual network operator's entry fee is ₹7.5 crore.

While some telecom service providers have called for the entry fee to be abolished, the telecom regulator has suggested a 50% reduction, saying it could cause more companies to enter the market as service providers, enhancing competition. A reasonable entry fee would maintain a balance between deterring non-serious players and ensuring adequate competition.

Why now?

Trai has pointed out that providers of voice, video and data services have declined from around eight players in each licensed service area to five by 2018 and four at present – Reliance Jio, Bharti Airtel, Vodafone Idea and Bharat Sanchar Nigam Limited. Since reducing the entry fee would lower a company's start-up cost, it would encourage competition and improve the quality of service.

Have entry fees been reduced in the past?

Yes. In 2005 the Department of Telecommunications reduced the entry fee for the national long distance or NLD from ₹100 crore to ₹2.5 crore and for international long distance or ILD from ₹25 crore to ₹2.5 crore. The government at the time said the reduction would promote growth and enhance competition.

By how much does Trai want to reduce the entry fee and for which licenses?

Trai has suggested the entry fee for UL for access service should be reduced from ₹1 crore to ₹50 Lakh for each telecom circle or metro area, and from ₹50 lakh to ₹25 lakh for J&K and the North East. It says the fee for NLD and ILD should be reduced from ₹2.5 crore to ₹50 lakh. The fee for public mobile radio trunking service, a two-way mobile radio service, should be reduced from ₹50,000 to ₹20,000 for each telecom circle.

The fee for an ISP "B" licence or internet service provider for metro areas should be reduced from ₹2 lakh to ₹50,000 for each telecom circle and ₹25,000 for J&K and North-East each.

The fee for an ISP "A" licence, which covers all of India, should be reduced from ₹30 lakh to ₹10 lakh, says the regulator.

The fee for UL (VNO) authorizations for access service should be reduced from ₹50 lakh per telecom circle to ₹12.5 lakh. Trai has also suggested that there should be no entry fee when renewing licenses.

What kind of bank guarantees exist and how could they be rationalised?

Bank guarantees ensure that telecom service providers pay their dues on time and fulfill their obligations in the licence agreement. Financial bank guarantees cover the liabilities from the licence fee and other dues not otherwise securitised, whale performance bank guarantees cover the violation of license conditions. Trai has suggested merging the two on the grounds that it would encourage ease of doing business and encourage growth in the sector.

How much will licence holders need to pay up under the merged bank guarantees?

For a unified license, a total of ₹44 crore has been proposed for the first year. For subsequent years, the amount should be higher than in the initial year or 20% of the estimated sum payable. The merger of both types of bank guarantees has been proposed for mobile number portability licences as well. Trai has also recommended using electronic bank guarantees to enhance the ease of doing business.

Source: Live Mint
Related Posts: TRAI,TELECOM REGULATOR,TELECOM LICENCE FEES,INDIA TELECOM SECTOR,BANK GUARANTEES,ENTRY FEE,RELIANCE JIO,BHARTI AIRTEL,VODAFONE IDEA,BSNL,DEPARTMENT OF TELECOMMUNICATIONS

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Govt weighs PLI in wearables

Posted By: Tarun Kumar Posted On: Sep 20, 2023
The Indian market is dominated by local brands Fire-Boltt, Noise and boAt, which together make up for a 75% share in smartwatches (Mint)

New Delhi/ Mumbai: The Union government is weighing the introduction of a production-linked incentive (PLI) scheme for wearables, including hearing devices, to boost local production by both Indian and global companies.

“We're exploring whether there's a need for it. It's the fastest-growing category (for consumer goods). The Indian brands are doing very well,including designing and manufacturing, and they are quite competitive," a senior official in electronics and information technology ministry said seeking anonymity.

PLI schemes seek to encourage local production through incentives. Companies can supply locally produced goods to domestic and export markets. Several electronics manufacturing and services companies export smartphones and other electronic devices.

The government was evaluating the requirement of a scheme for wearables after PLIs were introduced for 14 sectors, starting with mobile phones in 2020, which led to soaring exports from leading manufacturers like Apple and Samsung. Other brands have also raised their local production capacities and value addition for goods made in India.

While plans for hearables and wearables may be in the early stages, industry stakeholders said the move could boost localization for Indian brands, which account for 75% of the overall wearable and audio products segment in India.

Right now, around 55% of all products for the category are made in India, and this is expected to reach 90% in the next three years, industry executives said.

Counterpoint Research estimates suggest that wearables and audio products could be an $11 billion industry in India by 2028, and a PLI scheme will help create a robust supply chain, besides easing pressure on the already-tight margins of popular brands.

“PLI for the sector does make sense since it would bring extra incentives for us to make more products here. This, in turn, will create more employment. Even if the direct beneficiaries of incentives will be contract manufacturers, local assembling will reduce our per-unit cost. Potentially, this can cut down import duties of components by up to 5%, which would further augment our margin," said a top executive from a leading wearables company.

The Indian market is dominated by local brands Fire-Boltt, Noise and boAt, which together make up for a 75% share in smartwatches. boAt, Boult Audio, OnePlus, Noise and Mivi are the top five brands in the true wireless stereo (TWS) segment. boAt was No.3 globally with a 6% share in TWS shipments as of June.

In the smartwatch segment, Indian brands increased their global market share to 34% as of June, up from 22% in June 2022. Noise has a 10% global market share in smartwatches, according to Counterpoint.

Tarun Pathak, research director at Counterpoint, said the wearables and hearables market in India crossed 100 million units shipment last year. In terms of value, it is around $4 billion, and by 2028 it is expected to grow to $11 billion, driven largely by a rise in demand and shipments, and not a major increase in the average selling price (ASP), he added.

Amit Khatri, co-founder of Noise, said the company makes “around 95% of its products in India, with over 1 million smartwatches every month."

Sameer Mehta, chief executive of boAt, said nearly 65% of the company's earwear products, and 90% of wearables, are assembled locally.

In terms of volumes, IDC projected 2023 to see 130-140 million wearables being shipped, out of which 70% is expected to be earwear. However, the value of these shipments will be lower, as the wearable category comes with an ASP that is a tenth of the smartphone market, said Navkendar Singh, associate vice-president, India, IDC.

According to reports, contract manufacturer Foxconn is planning to make Apple's Airpods in India, and is looking to set up a plant.

Analysts said the PLI scheme will further boost localization efforts. Given India's already robust supply chain for higher local assembly, it can also contribute to meeting export goals.

“If brands can begin manufacturing here at scale, then they may even start exporting locally assembled products. Brands such as Fire-Boltt are already exporting some products to Vietnam and the Philippines, but still importing parts from China. In such a scenario, it only makes sense to treat India as an export hub," Singh said.

The industry is expecting the wearable PLI scheme to come through soon. There wouldn't be a dearth of applicants for it, with Indian brands and manufacturers such as Dixon Technologies being the potential beneficiaries.

Source: Live Mint
Related Posts: WEARABLE,PLI,WEARABLE,POLICIES,UNION GOVERNMENT,PRODUCTION-LINKED INCENTIVE (PLI) SCHEME,WEARABLES,HEARING DEVICES,BOOST LOCAL PRODUCTION

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NBFCs relying more on bank loans

Posted By: Tarun Kumar Posted On: Sep 19, 2023
Reserve Bank of India headquarters, in Mumbai. (PTI)

Mumbai: Domestic non-banking financial companies (NBFCs), especially those in the upper-layer category, are increasingly relying on bank borrowings as their primary source of funding, according to an analysis in Reserve Bank of India (RBI)’s September bulletin.

RBI regulations classify the NBFCs into four layers based on the size, activity and perceived risks. The upper layer comprises prominent names like Tata Sons, LIC Housing Finance and Shriram Finance, according to a recent RBI notification.

NBFCs primarily finance their operations through a mix of market borrowing and bank loans, constituting around 75% of total borrowings. According to the analysis, the substantial reliance on banks makes them the largest net borrowers, thus intricately linking them to the broader financial system.

The article pertains to the sector's performance during the 2022-23 period, up to Q3.

Although there were 9,443 RBI-registered NBFCs as of 31 March, the analysis is based on a sample of 205 firms that regularly submitted returns for all quarters from December 2020 to December 2022. “During the assessment period, NBFCs' reliance on banks increased steadily due to (the) low interest environment and lag monetary policy transmission," the article said.

The banks' share in aggregate NBFC borrowings rose to 35.1% last December, against 29.7% in December 2020, the data cited showed.

While the article was written by RBI officials, it had the usual disclaimer that the views expressed are those of authors and do not reflect the views of the organization. “A deeper analysis highlights the banks' preference in lending to NBFCs in the upper layer."

Direct bank borrowings by the upper-layer NBFCs grew steadily in recent quarters, accounting for nearly half of the total borrowings at the end of December 2022. Those in the middle layer relied more on debentures, although their bank borrowings also grew in recent times. Besides, upper-layer NBFCs seem to be more successful in raising short-term debt through commercial papers (CP), it said.

According to the analysis, banks are also key subscribers of the debenture and commercial paper issuances by NBFCs. Therefore, the exposure to the NBFC sector is higher than the quantum indicated by direct lending, it said. “Banks' exposure to NBFC-UL (upper layer) in particular has been steadily rising, primarily due to a steep growth in their direct lending to these NBFCs in 2022-23 (up to December 2022). Bank subscription to debenture and CP issuances of NBFC-UL are also growing at a robust pace, and reflect banks' preference for instruments of bigger NBFCs, which in general have strong parentage and are under enhanced regulation."

The debenture issuances of NBFCs are also subscribed by other market participants such as mutual funds, insurers, retail investors and pension funds. “Going forward, NBFCs need to diversify their funding sources, to reduce excessive reliance on bank borrowings," the article said.

“They need to develop strong governance and risk management standards and be more vigilant about cybercrimes, as the growing digital lending space offers huge opportunities, but also presents novel challenges," it added.

A scale-based analysis of the credit allocation by the authors of the article found NBFCs in the upper layer provide a major chunk of their loans to retail borrowers, while those in the middle layer provided a large chunk to the industry. Government NBFCs that fall in the middle layer are large providers of credit to the infrastructure segment of industries, it said.

Source: Live Mint
Related Posts: RBI,NBFCS,SHRIRAM FINANCE,TATA SONS,LIC HOUSING FINANCE,SEPTEMBER BULLETIN

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Bussiness The price of gold marginally dropped on Thursday, with the cost of 1 gram of 22 carat gold declining to ₹5,495 from yesterday's ₹5,505, as per the figures released by Goodreturns. Accordingly, the price of 8 grams of 22 carat gold also decreased to ₹43,960 from the previous figure of ₹44,040, marking a p
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Bussiness Reliance Industries Ltd, India's most valuable company, has sought shareholder's approval to give Mukesh Ambani another five-year term as chairman and managing director of the company till 2029 -- a period during which he has opted to draw nil salary.
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Bussiness In order to settle the pending contractual disputes of government and government undertakings, the finance ministry has launched the ‘Vivad se Vishwas II – (Contractual Disputes)' scheme, according to an official statement released on Wednesday. Finance Minister Nirmala Sitharam announced th
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Bussiness IT electronics refurbishing firm NewJaisa Technologies's initial public offering (IPO) will be open for subscription on Monday, i.e September 25. The company aims to raise ₹39.93 crore through its IPO. The issue will close for subscription on September 27. The company's IPO had opened for anchor investors on Friday. The fresh issue size is of 84,96,000 equity shares at face value of ₹5 each.
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Bussiness The Reserve Bank of India (RBI) has announced the launch of the Pilot Project for Public Tech Platform for Frictionless Credit by Reserve Bank Innovation Hub (RBIH), a wholly-owned subsidiary of the RBI. The Reserve Bank of India (RBI) has announced the launch of the Pilot Project for Public Tech Platform for Frictionless Credit by Reserve Bank Innovation Hub (RBIH), a wholly-owned subsidiary of the RBI.
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Bussiness India's foreign exchange reserves jumped $708 million to $602.161 billion for the week ended August 11, the Reserve Bank of India (RBI) said on Friday. This is the first increase in the kitty after declining for three consecutive weeks. In the previous reporting week, the overall reserves had declined $2.417 billion to $601.453 billion.
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Bussiness Gogoro In, a global technology leader in battery-swapping ecosystems that enable sustainable mobility solutions for cities, today announced a vehicle partnership with Swiggy, India’s leading on-demand convenience delivery platform. Gogoro In, a global technology leader in battery-swapping ecosystems that enable sustainable mobility solutions for cities, today announced a vehicle partnership with Swiggy, India’s leading on-demand convenience delivery platform.
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World Ukrainian President Volodymyr Zelensky arrived in the Netherlands on Sunday aiming to strengthen his country's air power, a day after a “heinous" Russian missile strike killed seven people and wounded 148 in Chernihiv. Ukrainian President Volodymyr Zelensky arrived in the Netherlands on Sunday aiming to strengthen his country's air power, a day after a “heinous" Russian missile strike killed seven people and wounded 148 in Chernihiv.
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Latest News NEW DELHI: Union minister Jitendra Singh on Saturday said, BRICS (Brazil, Russia, India, China and South Africa) should continue to hold global significance for being the most populated marketplace, driven by the knowledge, creativity and innovation economy.
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Latest News The incident took place on Sunday at the Hawthorne Race Course in Illinois. The incident took place on Sunday at the Hawthorne Race Course in Illinois. The incident took place on Sunday at the Hawthorne Race Course in Illinois. The incident took place on Sunday at the Hawthorne Race Course in Illinois.
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Technology The approach of Digital Public Infrastructure, which has gained global prominence, can also help in the area of climate adaptation and mitigation going forward, Chairman and Co-Founder of Infosys and the founding Chairman of UIDAI, Nandan Nilekani said on Sunday.
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Latest News Sunny Deol's Gadar 2 craze has truly gripped the nation with fans thronging to cinema halls in large numbers. The Anil Sharma directorial also managed to collect around Rs 39 crore on the day of the release, making it the second highest grosser of the year after Pathaan. Celebrating this tremendous res
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Life Style Disha Patani went out for a dinner date with her friends last night. The actor got clicked by the paparazzi outside a restaurant in Mumbai. Known for embracing risqué fashion statements, Disha slayed another look for the outing. She wore a golden mini dress featuring intricately-placed cut-outs. Sc
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World China has released a new documentary about the army's preparation to attack Taiwan and showcasing soldiers pledging to give up their lives if needed as Beijing continues to ramp up its rhetoric against the self-ruled island. China has released a new documentary about the army's preparation to attac
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Politics Pakistan's caretaker Prime Minister Anwaarul Haq Kakar's 18 member cabinet took oath on Thursday. The cabinet will see Pakistan through their upcoming elections at a time the country has been hit with economic and political crisis, considering former Prime Minister Imran Khan has also been arrested.
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Latest News If you think you are a hawk-eyed person who is skillful at spotting animals or birds camouflaged in plain sight, then here is an image that will leave you entertained. This picture shows a snake hidden in a pile of dry leaves. Do you think you can spot the reptile in a few seconds?
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Latest News Harry's, a prominent American brand known for men's grooming products, has found itself at the center of a heated debate after teaming up with trans man and digital creator Luke Wesley Pearson for a Pride-centered promotion. Pearson's Instagram reel unveiling the collaboration garnered both prai
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Entertainment Dulquer Salmaan is getting rave reviews for his new series Guns and Gulaabs. During a recent interview with BeerBiceps' YouTube channel, the actor recalled an incident in which he was inappropriately touched by an ‘older woman'. Dulquer said that after she grabbed his a***, the actor was in pain. He called the experience 'awkward and very bizarre'. Also read: Dulquer Salmaan leaves fans worried as he writes ‘I haven't slept in a while,' deletes it later