RBI likely to keep interest rate unchanged as inflation still high: Experts
The Reserve Bank is likely to maintain status quo on policy rates for the fourth time in a row at its bi-monthly monetary policy review meeting early next month, as retail inflation continues to remain high and the US Federal Reserve has decided to keep a hawkish stance for some more time, according to experts.

FM meets G20 expert group on strengthening of Multilateral Development Banks
Finance Minister Nirmala Sitharaman on Saturday met the G20 Independent Expert Group on strengthening of Multilateral Development Banks (MDBs).

HDFC Bank plans to launch new mobile app, site by Mar
Mumbai: HDFC Bank Ltd, India’s largest private lender, plans to launch a revamped mobile app and an internet banking website by March, over five years after an upgraded app faced glitches and had to be rolled back in a week.

Turnaround in sight at private banks, now is the time to bet

Investors looking for a thematic bet in their equity portfolios with a margin of safety can consider an allocation to the Nifty Private Bank ETF. A sharp improvement in return ratios, expected economic growth, reasonable valuations, and recent underperformance compared to the PSU banks make this a good bet for investors with a high appetite for risk, wealth managers said.

Karnataka Bank eyes second round of equity infusion in the next six months
 

SBI raises Rs 10,000 crore at 7.49 per cent coupon rate
 

Spotlight: ‘Universal banks will do better than standalone boutique wealth management firms’
Nitin Chengappa, MD and Head, Affluent, Private Bank and Branch Network, and Pankaj Walia, Head of Private Banking, Standard Chartered Bank, India explain why India is a key private banking market.

Edited excerpts:

Sundaram Home eyes South consolidation with expansion in Telangana, Karnataka
Sundaram Home Finance is looking to consolidate its strong presence in the southern market given brighter growth prospects driven by infrastructure and real estate growth. In addition to expanding in its traditional stronghold of Tamil Nadu, the Chennai-headquartered lender is also looking to strengthen its presence in Karnataka and Telangana this year.

Parent may infuse capital in first half of 2024 in Shriram Housing
Shriram Housing Finance (Shriram Housing) will likely receive a capital infusion from its parent by the first two quarters of 2024, said Managing Director and Chief Executive Officer Ravi Subramanian.

G20 Independent Expert Group's road map for multilateral banks to come out in October
New Delhi: The G20 Independent Expert Group on strengthening multilateral development banks (MDBs) will next month come out with a roadmap and a detailned plan to reform these institutions including the World Bank and Asia Development Bank.

SIDBI, DALI sign MoU to promote fintech sector
 

NARCL pays Srei lenders promised upfront cash

National Asset Reconstruction Company (NARCL), the winning bidder to take over the bankrupt Srei non-bank lenders has distributed ₹2,580 crore of cash accumulated in the company to creditors in the first step to implementing its resolution plan.

Majority of lenders of IL&FS Tamil Nadu Power Company seal loan recast deal

A majority of the lenders have signed an agreement to restructure the ₹9,000-crore debt of IL&FS Tamil Nadu Power Company (ITPCL), allowing them to distribute the ₹3,134 crore cash in the company as early as next week after the board of the debt-laden financial and infrastructure conglomerate gave its approval, people familiar with the process said.

AIFs may be allowed to issue P-notes from IFSC
The International Financial Services Centres Authority (IFSCA) is mulling allowing alternative investment funds (AIFs) to issue offshore derivative instruments (ODIs) or participatory notes from GIFT IFSC, said two people familiar with the matter. P-notes allow overseas investors to take indirect exposure to Indian securities without registering with the country’s market regulator.

How can banks embark on the next frontier of digital transformation
Banks need to embrace digital innovation and AI at scale to stay relevant and competitive in this new world. Gartner predicts that the global expenditure on IT for banking and investment services is projected to reach $652.1 billion in 2023. Banks are opting to enhance their IT investments, particularly in technologies that bring about substantially higher business outcomes, such as AI and Machine Learning (ML). By deploying AI and ML capabilities, banks can streamline their corporate operations, meet legal requirements, detect fraud, and enhance customer-facing services.

PhonePe announces Indus Appstore for Android developers to take on Google
Akash Dongre, Co-Founder of Indus Appstore rued that app developers are forced to work with only one app store - Google Play Store - for distributing their apps, and vowed that the new offering will be a credible alternative, more localised, with better app discovery and consumer engagement.
 

NSE plans longer F&O trading hours
Source Credit: Nishanth Vasudevan, The Times of India

Can the post-G-20 roadmap for Indian Crypto Asset Regulation achieve greater financial inclusion?
“The widespread adoption of crypto assets could threaten the effectiveness of monetary policy,” noted the Synthesis Paper developed by the International Monetary Fund (IMF) and Financial Stability Board (FSB) at the request of the Indian G20 Presidency. The risks of crypto-assets or virtual digital assets (VDA) assuming the status of a “shadow” currency has also been a key concern articulated by the Reserve Bank of India (RBI), prompting the Indian financial services regulator to push for a complete ban on crypto-assets.

Deadline to add nominees for MFs, demat accounts ends on Sept 30
New Delhi: All individual demat account holders and mutual fund investors have time till September 30, to nominate a beneficiary or opt out of it by submitting a declaration form, failing which their demat accounts and folios will be frozen, and they will not be able to redeem their investments. This mandate applies to both new as well as existing investors, according to the Securities and Exchange Board of India (Sebi). The move is aimed at helping investors to secure their assets and pass them on to their legal heirs. “This will ensure smooth and hassle-free transfer of securities to the legal heirs of the investors in case of any unfortunate event,” Tejas Khoday, co-founder and CEO at FYERS, said.

MFs hungry for bigger slice of banking pie amid growing investor inflows
Source Credit: Abhishek Kumar, Business Standard

Mumbai: Amid growing investor inflows, mutual funds (MFs) are eyeing a larger slice of the banking sector.

‘There’s opportunity for strong earnings growth for many years’
New Delhi : Domestic markets are not far ahead of fundamentals, and there is opportunity for strong earnings growth for several years, Nirav Sheth, chief executive officer, institutional equities at Emkay Global Financial Services Ltd, said in an interview. Barring consumer staples and commodities, he is positive about most sectors including banks, but with varying levels of confidence. Edited excerpts:

Trifecta Capital raises 3rd venture debt fund
Mumbai: Trifecta Capital has hit the final close of its third debt fund at ₹1,777 crore (around $213 million), Rahul Khanna, co-founder and managing partner, Trifecta, said

FPIs outflow in equities crosses Rs 10,000 cr mark in September on rising US interest rates
Foreign Portfolio Investors (FPIs) have pulled out over Rs 10,000 crore from Indian equities in the first three weeks of September, primarily due to rising US interest rates, recessionary fears, and overvalued domestic stocks. Before the outflow, FPIs were incessantly buying Indian equities in the last six months from March to August and brought in Rs 1.74 lakh crore during the period. Mayank Mehra, smallcase, manager and principal partner at Craving Alpha,believes that strong economic growth prospects, attractive valuations, and government reforms could support foreign investment flows in the next month.

Investors want Bloomberg Barclays to bond with India
Mumbai: Top US funds have urged managers of the Bloomberg Barclays Emerging Markets bond index to advance a scheduled review to early October so that a decision on India, now featuring on the competing JP Morgan gauge, can be brought forward by a quarter to give bulge-bracket investors tracking the benchmark an option to incrementally buy about $25 billion of bonds issued by one of the least indebted major economies.
 

Bond inflows: Get ready for a trilemma re-tweak
India’s answer to the Impossible Trinity constitutes a peculiarly fine balance. In theory, we cannot have capital flowing freely in and out, control of the rupee’s exchange rate, and also full autonomy over monetary policy. It’s an economic trilemma. In practice, our post-1991 reform transition spelt a mix of slowly easing capital controls, a decreasingly managed float for the currency, and a central bank increasingly empowered to keep a lid on inflation. Flows from overseas into Indian assets have starred in this story of our calibrated embrace of global capital. News that JPMorgan Chase will include a clutch of government bonds in a key suite of its Government Bond Index for Emerging Markets (GBI-EM) starting in mid-2024, with their weightage likely to rise over 10 months to 10% (a la China), signals the opening of another sluice gate. As with other such indices (like Bloomberg Barclays and FTSE Russell), the GBI-EM guides the allocatory calls of major institutional investors that invest in sovereign debt. By most estimates, next year’s inclusion will draw at least an annual $20 billion extra into government paper. With domestic savings in a slump, exports flagging and import bills looking heavy, that’s clearly good news. We need all the inflows we can get.

JP Morgan adds Indian bonds to its global index

New Delhi:  In a significant move that will set the stage for billions of dollars of foreign fund flows to India, global financial firm JP Morgan has decided to include Indian government bonds into its widely tracked emerging market debt index. 

Vedanta Resources' bond restructuring plan faces resistance from investors seeking better terms

Mumbai: Vedanta Resources' (VRL) bond restructuring plan has met with some resistance from investors seeking better terms. The proposed plan suggests making a 50% upfront payment for the $1 billion January 2024 bond, a 15% payment for the August 2024 bond, and a 10% upfront payment for the March 2025 bonds, with the remaining amounts to be restructured.