RBI’s playing aggressively in currency market in FY25
Latest data published by the RBI showed that in April and May, the central bank purchased dollars worth $8 billion and $23.6 billion, respectively, in the currency market, while making sales worth $11.7 billion and $19.4 billion.
Blow for cash-strapped telco: PFC-REC cuts Vodafone Idea’s borrowing call, wants extra cover
Both infra-focused government lenders, which specialise in power-related projects, have told the company that for any loan proposal to be considered, Vodafone Idea (Vi) will have to furnish an extra cover through corporate guarantees to shield these proposed commitments from any future default, top financial industry sources involved in the discussions told ET.
NBFC growth to be hit due to rising unsecured loan stress
Non-bank financial companies (NBFCs) will face stress from unsecured loans due to higher interest rates impacting borrowers’ repayment capacities this fiscal year, says rating agency ICRA. Growth in microfinance and other unsecured loans will slow significantly. As a result, NBFC profitability will be affected. Regulatory guidelines will also play a role in moderating credit growth.
HUL worries trigger selloff in FMCG companies
The Nifty FMCG Index plunged nearly 3%, its steepest single-day drop in 28 months after HUL’s second-quarter results missed expectations, disappointing investors. Analysts anticipate continued margin pressure for consumer companies in the near term due to rising raw material costs and weak urban demand.
IndusInd provides more for loan losses, Q2 net profit falls 39%
The lender posted a 5% growth in its net interest income to ₹5,347 crore. Meanwhile, the net interest margin for the quarter under review stood at 4.08%, down by 21 bps from 4.29% reported in the quarter last year.
Multi-asset funds have multiple points of appeal, inflows rise over two-fold
A section of wealth managers points out that there has been rapid growth in the mutual fund industry, with 9.7 million new investors coming in the last 12 months. As valuations in equities are no longer cheap and with many first-time investors moving from bank deposits, the need for low-volatility products has multiplied.
Kirloskar deed disclosure case referred back to Sebi
SAT earlier this week has disposed of appeals filed by Kirloskar Oil Engines, Kirloskar Ferrous Industries, Kirloskar Pneumatic, Kirloskar Industries, and GG Dandekar Properties, against Sebi’s October communications addressed to them to disclose the DFS within seven days from the receipt of those regulatory directives.
Costs a drag on ITC’s Q2, D-Street show may stay muted
Raw material cost inflation was the single biggest factor that hurt the margins. The raw material cost surged 29% year-on-year led by the rise in prices of leaf tobacco and wood. The raw material cost as a proportion of sales rose from 40.2% in the same quarter last year to 44.6% this year.