- Monday, March 10, 2025
By: Shubham Ghosh
Here are news related to Indian economy and business for Wednesday, September 21, 2022:
Indian banks are likely to see a 90 basis points fall in gross non-performing assets (NPAs) to five per cent in this fiscal year to March and further improve to four per cent by end of March 2024, rating agency Crisil said on Wednesday, Reuters reported. The key indicator of banks’ asset quality is likely to improve, “riding on post-pandemic economic recovery and higher credit growth,” the agency said in a statement. Loans of Indian banks jumped 15.5% in the two weeks to Aug. 26 from a year earlier, while deposits rose 9.5 per cent, latest Reserve Bank of India data showed. The asset quality of the banking sector will also benefit from the proposed sale of NPAs to the National Asset Reconstruction Company Ltd, the agency said. “The steady improvement in corporate asset quality is clearly reflected in leading indicators such as the credit quality of bank exposures,” said Krishnan Sitaraman, senior direct and deputy chief ratings officer at Crisil Ratings.
The cabinet chaired by prime minister Narendra Modi on Wednesday approved the National Logistics Policy that seeks to reduce transportation costs and ensure seamless movement of goods in the country. The Policy lays down an overarching interdisciplinary, cross-sectoral, multi-jurisdictional and comprehensive policy framework for the logistics sector. The policy complements the PM GatiShakti National Master Plan, Indian information and broadcasting minister Anurag Thakur said at a media briefing after the cabinet meeting. While PM GatiShakti National Master Plan is aimed at integrated infrastructure development, the National Logistics Policy is envisaged to bring efficiency in logistics services, and human resources through streamlining processes, regulatory framework, skill development, mainstreaming logistics in higher education and adoption of suitable technologies.
The vision is to develop a technologically enabled, integrated, cost-efficient, resilient, sustainable and trusted logistics ecosystem for accelerated and inclusive growth, the minister said.
HDFC Capital, the private equity arm of mortgage lender HDFC, has launched a tech innovation challenge in the affordable housing space and will invest up to Rs 500 crore (£55.2 million) in three winning ideas, Press Trust of India reported. The third edition of the tech challenge will identify and award disruptive innovations in areas of construction, sales, fintech, and sustainability, the company said. The challenge is jointly being launched by HDFC Capital Advisors, the HDFC subsidiary that manages private equity funds focused on the real estate sector and has a $3 billion (£2.65 billion) real estate funding platform, along with the government-promoted Invest India. “We have already raised over Rs 500 crore from global investors as the first close of this property technology fund, which will focus on investments in startups that drive innovation and efficiencies within the affordable housing ecosystem. We are ready to invest this money into three winning solutions, Vipul Roongta, MD and CEO at HDFC Capital told PTI.
The Adani Group has pledged its entire stake worth $13 billion (£11.4 billion) in Ambuja Cements and ACC, days after completing its $6.5 billion (£5.74 billion) acquisition of the two companies, PTI reported. According to regulatory updates on Tuesday, billionaire Gautam Adani-led group has encumbered its 63.15 per cent stake in Ambuja Cements and 56.7 per cent stake in ACC (of which 50 per cent is held by Ambuja) to the Hong Kong Branch of Deutsche Bank AG. This is “for the benefit of certain lenders and other finance parties,” said Adani Group which has now chalked out plans to double the cement manufacturing capacity to 140 million tonne in next five years. Ambuja Cements shares closed at Rs 574.10 (£6.34) apiece on BSE on Tuesday and ACC Ltd’s stock settled at Rs 2,725.70 (£30).
IdeaForge Technology Pvt., India’s largest drone maker backed by Qualcomm Inc., is mulling an initial public offering in Mumbai that could raise about $125 million (£110.5 million), Bloomberg reported citing informed sources. The company is working with financial experts on the potential listing, which could take place in the first quarter of 2023, the sources added. The Mumbai-based firm is seeking a valuation of about $700 million (£618.8 million) in the share sale, which could consist of new shares mostly, they added. IdeaForge is looking to file a preliminary draft prospectus with the regulator by December, the sources said on the condition of anonymity.
Edmond Scanlon, Group CEO and executive director of Ireland-based global nutritional foods leader Kerry Group, said India is a critically important market for the group and it will be an even bigger market in the next 5-10 years. “It’s already one of our top five countries, globally,” the CEO told Asian News International in an exclusive interview. He is currently in India — his maiden visit after the Covid-19 pandemic broke out. Scanlon highlighted the purpose of his visit to India and said, “Firstly, I’d like to say that I am very delighted to be back in India as this is my first trip after Covid. Secondly, I would like to mention India is a huge market with tremendous opportunities. That’s my primary purpose for visiting. We are also looking at our next phase of investment in the country. Kerry has been in India since 2011.”
Mineral production in India increased by 6.1 per cent year-on-year in the April-July period of the current financial year, as per the government data released on Wednesday. However, mineral production in July 2022 was 3.3 per cent lower when compared with the same month last year. The index of mineral production of mining and quarrying sector for the month of July 2022 (Base: 2011-12=100) at 101.1, was 3.3 per cent lower as compared to the level in the month of July 2021, according to data released by the ministry of mines. As per the provisional statistics of the Indian Bureau of Mines, the cumulative growth for the period April- July, 2022-23 over the corresponding period of the previous year has increased 6.1 per cent.
