Blackstone Group plans to set up an ARC in India

Source: The Hindu Business Line, July 23, 2017

Mumbai: Global private equity firm Blackstone Group is exploring setting up an asset reconstruction company (ARC) in India to tap the opportunity thrown up by bad loans approaching Rs10 trillion, two people aware of the development said.

“Blackstone is keen on the stressed assets space in India. They have been assessing the opportunity for some time and now they are looking to set up an ARC to tap into the growing opportunity and are in talks with experts in the field for the same,” said one of the two people cited above, requesting anonymity as the talks are private.

“As a matter of policy, Blackstone does not comment on media/market speculation,” a Blackstone spokesperson said in an email response to a query.

Read the rest of this entry »

Cabinet approves alternative mechanism for ETF

Source: The Hindu Business Line, July 19, 2017

New Delhi: In a boost to the Centre’s disinvestment policy, the Cabinet on Monday approved an alternative mechanism that will decide on stake sales in State-owned banks and creation and launch of exchange-traded funds (ETFs).

“It will decide on disinvestment of public sector banks, listed public sector financial institutions and public sector insurance companies through ETF or other methods, subject to the government retaining 52 per cent stake,” said an official statement.

The new mechanism will also work out the ETF for public sector units, subject to the government retaining majority stake.

Read the rest of this entry »

Govt will invest Rs 8.5 lakh cr in railways in 5 yrs, says Suresh Prabhu

download.jpgSource: Business Standard, July 17, 2017

Mumbai: Railway Minister Suresh Prabhu today said the Railways is in an overhauling phase and its network will be transformed completely in next five years.

“With the stress on ‘Rail Badhhega- Desh Badhhega’, we launched several reformative and passengers friendly initiatives including an ambitious plan to induct about 40,000 coaches with improved interiors and upgraded facilities,” Prabhu said.

Read the rest of this entry »

Franklin Templeton shakes up Bond Street with Rs 9,000 crore bulk buy

Source: The Economic Times, July 13, 2017

MUMBAI:Franklin Templeton bought Indian government bonds aggregating Rs 9,000 crore in the second-highest bulk purchase by an overseas investor as Indian yields remain the highest among emerging Asian economies in Asia amid improving macro-economic outlook.

Four people familiar with the transaction said that the fund bought bonds worth about Rs 7,500 crore on Tuesday and Rs 1,500 crore the day before. This is on top of the Rs 15,000-17,000 crore worth of sovereign bonds it bought in March-April.

“The latest reform measures including GST has lifted confidence among overseas investors,” said Shashikant Rathi, head of treasury at Axis Bank. “India would continue to see fresh bout of fund inflows as many global institutions are convinced about the country’s economic prospects.”

Read the rest of this entry »

Foreign exchange reserves go up $4 billion, reach a record high

Source: The Economic Times, July 07, 2017

MUMBAI: India’s foreign exchange reserves rose $4billion to reach a record high of $386.5 billion for the week ended June 30, said the Reserve Bank of India on Friday.

This comes on the back of a continuing rise in forex reserves as the RBI is reported to be mopping up dollar reserves, utilising the suitable market conditions.

“Inflows had been very strong throughout the month of June which might be reflecting in the strong gain in foreign exchange reserves,” said Harihar Krishnamoorthy, head fixed income currency and commodities at FirstRand Bank. “Also the jump could be attributed to Euro and Sterling going up causing revaluation of the reserves held by the central bank as well.”

Read the rest of this entry »

FPI inflows hit 3 month high of Rs 29,000 crore in June

Source: Financial Express, Jul 02, 2017

New Delhi: Foreign investors have pumped over Rs 29,000 crore in the country’s capital market in June, making it the highest inflow in three months, enthused by the GST and forecast of a normal monsoon. This also marks the fifth consecutive monthly inflow by overseas investors. Read the rest of this entry »

ADB proposes $10-bn loan for India over next 5 years

download.pngSource: Business Standard, June 30, 2017

The Asian Development Bank (ADB) has proposed additional loan support to India of $10 billion, over the next five years.

In the country on a three-day trip, ADB President Takehiko Nakao on Thursday told the media that the ADB was looking to increase its footprint in India. Half the loan amount would be for the development of the East Coast Economic Corridor.

Read the rest of this entry »