The Delhi-based media professional paid for the merchandise with her Indian bank account’s international debit card, which offers four reward points for every Rs.200 spent overseas. Her expenditure of £186 should ideally have cost less than Rs.24,000, as £1 is usually equal to Rs.115-120, but Singh had to shell out over Rs.25,000 on account of her card’s foreign currency markup fee for international transactions.For overseas travellers, such leakages add to the already high costs. The past few years have se ...

A A weak labour market, low wages and 50% US tariffs on export sectors and MSMEs will remain a drag on the economy, which grew at a five-quarter high 7.8% in April-June.Economists anticipate growth of about 7% in the second quarter, helped by a spending surge that began September 22, when lower GST rates took effect. GDP numbers for July-September will be released on November 28. The economy grew 5.6% in the second quarter of FY25.Live EventsRosy October“Urban consumption, which had been on a weak footing ...

Core Insights - There is a renewed global interest in India's private banking sector, driven by significant foreign direct investment (FDI) inflows, which have exceeded $6 billion recently [1][13] - The current environment presents both short-term tactical opportunities and a compelling long-term structural growth outlook for the banking sector [1][5] Short-Term Perspective - The private banking sector had been underperforming due to concerns over slippages and rising credit costs, particularly in unsecured and micro-lending segments, leading to a sharp de-rating [2][13] - Recent results from private banks indicate declining slippages, moderating credit costs, and accelerating loan growth, making current valuations attractive [2][13] Long-Term Perspective - Structural factors such as expected consumption revival from GST rationalization, income-tax relief, and anticipated RBI rate cuts suggest a stronger long-term growth trajectory for the banking sector [5][11] - Early signs of revival in private capital expenditure (capex) further enhance the long-term growth potential for banks [5][8] Market Dynamics - The Nifty Bank index is trading at record levels, indicating increased confidence in the banking sector, while the broader Nifty index struggles to reach its previous peak [6][7] - The divergence between the Bank Nifty and the benchmark Nifty suggests a strong recovery and potential leadership role for banking stocks in the next market rally [6][13] Factors Supporting Growth - Positive trends include the overall trajectory for Net Interest Margins (NIMs) due to deposit repricing, declining slippages, and expected acceleration in credit growth as rate-cut transmission nears completion [7][8] - The revival in private capex is seen as a critical factor for credit growth, although investor confidence remains cautious due to past experiences with private investment cycles [9][10] Macro Environment - The macroeconomic backdrop appears supportive, with recent GST cuts and a revival in rural demand expected to boost private investments [11][13] - The value of new private project announcements nearly doubled in the second quarter of FY26, indicating a potential turnaround in private investments [10][11]

Core Insights - The low funding rate for new ventures in India is a significant concern, with only 40-50 out of approximately 1,000 startups receiving financing from venture capitalists, indicating a disturbing conversion rate and the likelihood of many viable ideas going unfunded [1][4]. Group 1: Funding Challenges - The current funding landscape is inadequate for the thriving startup ecosystem in India, necessitating an expansion of the capital base to support innovation and growth [2][4]. - There is a notable potential for disruption from startups emerging from campuses and tier-2 and -3 cities, highlighting the need for increased financial support [2][4]. Group 2: Recommendations for Capital Expansion - It is suggested that entities such as colleges, which are currently restricted from investing in venture capital funds due to their Section 8 (not-for-profit) status, should be allowed to invest to broaden the capital pool available for startups [3][4]. - The government has made progress in enhancing India's global image over the past decade, which could further support the startup ecosystem [3][4]. Group 3: Institutional Initiatives - IDFC First Bank is actively working on developing a technology stack aimed at catering to the needs of India's startups, indicating institutional efforts to bolster the startup ecosystem [4].

Core Insights - Listing in India is now considered more profitable and exciting than in any other global market, driven by the demand from a population of 1.4 billion people [1][9] - The transition from private funding to public scrutiny is a significant milestone for startups, with IPOs being viewed as a pit stop in a longer journey [3][9] - The Indian startup ecosystem is characterized by constant disruption, with new entrants challenging established players [4][9] Industry Trends - The fashion market in India is valued at $120 billion, with a significant influence from 400 million Gen Z consumers [5][9] - Startups are increasingly focusing on large market opportunities rather than viewing competitors as duopolies [5][9] - The recognition of startups through awards like the ET Startup Awards is crucial for validation and support in a challenging entrepreneurial landscape [7][10] Company Highlights - Urban Company was awarded Startup of the Year, reflecting its significant customer satisfaction and innovative business model [6][9] - Lenskart's founder is actively involved in the IPO process, showcasing the growing trend of public listings among Indian startups [9] - Qure.ai and Minfy Technologies received awards for their innovative approaches in healthcare and revenue growth without external funding, respectively [10]

Core Insights - The microfinance sector is slowly recovering from two years of stress, with improvements in bad loans and collections, but profitability remains challenging and growth is slow due to uneven recovery across states and lenders [15] Company-Specific Insights - Bandhan Bank is experiencing steady improvement in its microfinance portfolio, with a 30-day-plus delinquency ratio of 3.8%, below the industry average of 5.1%, and 90-day-plus delinquencies improved to 2.04% compared to 3% for the sector [2] - Bandhan Bank is cautious in expanding its microfinance portfolio, focusing on reducing concentration risk and increasing secured loans, with its emerging entrepreneurs business portfolio contracting 13% annually to ₹51,730 crore [2][3] - The secured loan book at Bandhan Bank currently makes up about 55% of total advances, expected to rise to 57-58% over the next 18 months [3] - IDFC First Bank anticipates stabilization of stress in its microfinance portfolio within the next six months, with gross slippages in the MFI book falling 9% sequentially in the September quarter [4] - IDFC First Bank's MFI business declined 42% annually to ₹7,306 crore, impacting income, but is expected to stabilize in the second half of the year [5] Industry Trends - The microfinance sector has seen most large players shrink their books by 25-50% over the past two years, primarily through write-offs, which has been termed cautious deleveraging [7] - CreditAccess Grameen reported accelerated write-offs of ₹554 crore related to overdue loans, indicating a need to clean up legacy stress [6] - Policy reforms have capped the number of lenders per borrower and restricted total indebtedness, which has reduced over-leverage but also slowed fresh lending [8][9] - Analysts expect collection efficiency to improve as disbursements rise, but near-term pressure is expected to persist due to erratic monsoon patterns affecting rural borrowers [10] - The upcoming state elections in Bihar raise concerns over potential political interference and debt waivers, although Bandhan Bank does not foresee a repeat of past disruptions [12][13] - Overall, analysts predict that larger banks and MFIs will recover first, with a slow and gradual journey towards normalcy expected for the sector [14]

Equity benchmark indices witnessed a volatile trading session after a steady start on Friday amid lack of positive triggers. Sensex witnessed over 660 points intraday fall and Nifty 50 declined nearly 190 points. Sensex traded 191.44 points or 0.23 per cent lower at 84,213.02 at 1.05 pm, and Nifty 50 dropped by 66.65 points or 0.26 per cent to 25,811.20.Both the midcap and smallcap indices ended the session on a flat note. Among sectoral indices, most traded in negative territory, with notable weakness in m ...

HONG KONG SAR - Media OutReach Newswire - 31 October 2025 - Shanghai Commercial Bank today announced a partnership with HashKey Exchange, Hong Kong's largest licensed digital asset exchange to jointly explore new avenues for integrating traditional finance with digital assets. This collaboration marks a significant step forward in advancing Hong Kong's fintech infrastructure, accelerating the city's shift from conceptual digital finance innovations to large-scale implementation. Mr. Wallace LAM Wing-ted, ...

Core Viewpoint - First Interstate BancSystem is under pressure from activist investor HoldCo Asset Management, which has made several demands regarding the bank's capital management and strategic direction, but the bank has not fully committed to these demands [1][5][10]. Company Strategy - First Interstate's management has stated that they are not focused on mergers and acquisitions, opting instead to use excess capital for share buybacks [2][3]. - The bank's President and CEO, Jim Reuter, emphasized the importance of executing their strategic plan and expressed confidence in the bank's future success [3][9]. - The bank is transitioning towards relationship banking and has exited non-core businesses, including indirect auto lending [9]. Financial Performance - For the third quarter, First Interstate reported a net income of $71.4 million, representing a 28.6% increase year-over-year, with earnings per share of $0.69, exceeding the consensus estimate of $0.62 [13]. - Average loans decreased to $16.4 billion, a 12% year-over-year decline, attributed to the run-off of non-core relationships and recent branch sales [14]. Capital Management - HoldCo has requested that First Interstate publicly declare a goal to reduce its Common Equity Tier 1 (CET1) ratio target to 10.3%, significantly lower than the current ratio of 13.9% [5]. - The bank's CFO indicated that they would align their CET1 ratio more closely with peers in the near term, but no specific commitments were made regarding HoldCo's demands [5][11]. Market Reaction - First Interstate's stock price fell by 0.73% on the day of the news, and it has seen a decline of approximately 3% year-to-date [15].

These partnerships would provide the smaller lenders, hitherto dragged down by balance sheet limitations, with the capital strength and scale needed to capture market share from established private and public sector giants, analysts said."This is a big positive for smaller lenders as it addresses their main impediments to scalability - including access to capital, market stature, which helps lower the cost of deposits and borrowings, and access to world-class systems, processes, and governance frameworks," ...