Bank credit to infra sector grows 18.5% in FY19: RBI data

Source: LiveMint.com, May 20, 2019

MUMBAI: Bank credit to infrastructure sector grew by 18.5 per cent to ₹10.55 lakh crore as of 2018-19, the highest since 2012-13 fiscal, RBI data showed.

Outstanding bank credit to the sector was ₹8.91 lakh crore as at March 2018.

In the fiscal year ended March 2013, loans to infrastructure sector had grown by 15.83 per cent to ₹7.29 lakh crore.

In FY18 and FY17, growth in bank credit to the sector was negative at 1.7 per cent and 6.1 per cent, respectively.

“Just because banks are sitting on pile of bad loans from the infrastructure sector, we cannot completely stop lending to the sector. There are couple of companies in the sector that are doing well,” said the head of a public sector bank.

Since the growth in the manufacturing sector is subdued, banks are also willing to lend to the infrastructure segment, he said. Read the rest of this entry »

Not taxing e-transmissions costs India $500m annually

Source: The Economic Times, May 20, 2019

India’s potential loss of revenue by not taxing electronic transmissions is around $500 million every year, a research paper by the United Nations Conference on Trade and Development (UNCTAD) has said.

Of the total $8 billion of potential tax losses projected for 58 developing countries, Mexico, Thailand, Nigeria, India, China and Pakistan are the top countries to face the highest losses, the paper revealed.

The study is based on 49 “digitizable products” or those which are traded both in the physical form as well as ‘online’— downloaded from the internet such as music, ebooks and software. Read the rest of this entry »

RBI releases payments systems roadmap for a ‘cash-lite’ India

Source: The Economic Times, May 16, 2019

Mumbai: A four-fold increase in digital payments, reduction in paper-based transactions, improved pricing, better customer grievance redressal mechanisms and establishment of new payment system operators (PSO) are among the list of twelve objectives the Reserve Bank of India seeks to achieve in the next three years.

The Payments Systems Vision 2022 document published by the central bank on Wednesday has laid out a comprehensive roadmap of initiatives to be undertaken by all stakeholders and governing bodies to ensure the successful completion of these objectives in this time.

“While the pursuit towards a ‘less cash’ society continues, accompanied by the ambition to have a lesscard India as well, the endeavour is to also ensure increased efficiency, uninterrupted availability of safe, secure, accessible and affordable payment systems as also to serve segments of the population which are hitherto untouched by the payment systems,” the Reserve Bank said. The Reserve Bank has identified four broad areas for targeted policy intervention to improve the existing payments system — competition, cost, convenience and confidence. Read the rest of this entry »

Infra sector has PE/VC inflows jumping 79% in Apr at US$ 4.4 b

Source: IBEF.org, May 10, 2019

Mumbai: Private equity (PE) and venture capital (VC) inflows rose to USD 4.4 billion in April, a clipping at a healthy 79 percent growth over USD 2.4 billion in same month last year, but down 41 percent on a month-on- month basis, says a report.

In the reporting month, there were 11 large deals, with value of USD 100 million each aggregating to USD 2.9 billion compared to eight large deals worth USD 1.9 billion in the year-ago month, according to the deal data compiled by consultancy EY.

The number of deals announced in the month were the highest ever at 102 for any month, compared to 75 in the same period last year and 92 deals in March.

Infrastructure was the top sector for the second consecutive month with USD 1 billion inflows on account of the USD 929-million ADIA, NIIF-GVK deal, the report said. Read the rest of this entry »

BigBasket gets $150 million in funding, becomes the latest unicorn

Source: Business Standard, May 06, 2019

New Delhi: Mirae Asset-Naver Asia Growth Fund (Mirae-Naver), a leading investor operating in global growth markets, the UK Government’s development finance institution,CDC Group, and Alibaba Group said on Monday they have led a $150-million round of fundraising for Supermarket Grocery Supplies (SGSPL), which owns the Bigbasket brand.

The round values Bigbasket at over $1 billion, according to the company, making it the newest Unicorn out of India. Business Standard first reported the deal on March 28.

The financing round, which Mirae-Naver has led through one of its funds, marks the group’s largest investment in India. Mirae Asset-Naver Asia Growth Fund is a joint venture between Seoul-based Mirae Financial Group and Naver Corporation, South Korea’s leading internet company. Alibaba Group, which had previously led the Series E round at SGSPL in 2017, participated in the current financing round as well. The Jack Ma-led group aims to enable the growth of local Indian companies like SGSPL, as more users come online in the country. Read the rest of this entry »

Mastercard to invest $1 bn in India, plans to make country global tech node

Source: Business Standard, May 06, 2019

New Delhi: Global card payments major MasterCard Monday said it will invest USD 1 billion (about Rs 7,000 crore) in

India in the next five years and plans to make the country a global technology node for its platforms.

The company has already invested USD 1 billion in the Indian market in the last five years.

“Over the last five years, we invested about USD 1 billion in India. Given our increasing confidence in the Indian economy, where it is likely to be over the coming decade, we are stepping up on our investment commitment in India. We are committing another USD 1 billion into India (for next five years),” Ari Sarker, co-president, Asia Pacific, MasterCard said in an interaction here.

The most crucial thing about this investment is that Mastercard is building India as a global technology node for its global platforms, he said.

This investment will help foster innovation and increase Mastercard’s speed-to-market capabilities and value-added services. Read the rest of this entry »

ADB to fund Delhi-Meerut rapid rail link, 4 metro projects

Source: The Hindu Business Line, May 01, 2019

Nadi: The Asian Development Bank (ADB) has given in-principle nod for financing four metro rail projects and a ₹30,000-crore rapid rail corridor between Delhi and Meerut as part of its efforts to improve urban transport system in India.

Simultaneous discussions are going on with other multi-lateral funding agencies for co-financing of these large urban transport projects including Bhopal and Indore Metro projects, ADB Director-General (South Asia) Hun Kim said on Wednesday.

In addition, other projects especially expansion of Chennai and Bengaluru Metro are also under consideration, he said at the Annual Meet of ADB here. Read the rest of this entry »