The seasonal returns chart highlights recurring trends in asset performance over specific months of the year, offering insights into potential price movements. Investors use seasonality to identify patterns and inform their decisions, but it's essential to remember that these patterns reflect past data and may not predict future performance. By analyzing the percentage of positive months and average gains or losses, traders can identify above-average tendencies. Caution is advised, however, as relying solel ...

Consolidation in Public Sector Banks - The government aims to accelerate consolidation in public sector banks to create larger, world-class banks by 2047, as stated by Finance Minister Nirmala Sitharaman [1][2] - Currently, there are 12 public sector banks, with only the State Bank of India (SBI) ranked among the global top 50 banks by assets, positioned at 43rd [2] Historical Context of Consolidation - The government has previously conducted two rounds of consolidation, reducing the number of public sector banks from 27 in 2017 to 12 in 2019 through major mergers [3][4] - Notable mergers include the consolidation of United Bank of India and Oriental Bank of Commerce with Punjab National Bank, and others involving Syndicate Bank, Allahabad Bank, and Andhra Bank [4][5] Financial Performance of Public Sector Banks - In the first half of FY25-26, the 12 public sector banks reported a net profit of ₹93,675 crore, a 10% increase from ₹85,520 crore in the same period of the previous fiscal year [7] - The net profit for public sector banks is projected to exceed ₹2 lakh crore by the end of FY26, following a record profit of ₹1.78 lakh crore in the previous financial year, which was a 26% increase from ₹1.41 lakh crore in FY24 [8] Foreign Investment Trends - The private sector banking space has seen significant foreign capital inflow, exemplified by Sumitomo Mitsui Banking Corporation acquiring a 20% stake in Yes Bank for ₹13,483 crore [9] - Emirates NBD Bank also announced plans to acquire a 60% stake in RBL Bank for ₹26,853 crore, indicating the attractiveness of India's financial institutions to foreign investors [10] Regulatory Developments in the Insurance Sector - The passage of the Sabka Bima Sabki Raksha Bill allows for 100% foreign direct investment in the insurance sector, which is expected to attract new capital and enhance competition [11][12] - The removal of the 18% GST rate on individual policy premiums has improved affordability and access to insurance products [12][13]

The Union Cabinet’s decision to raise the foreign direct investment (FDI) limit in the insurance sector to 100 per cent is unlikely to significantly boost foreign investment as distribution remains a critical factor, requiring overseas players to partner with Indian businesses, experts said.Illustration: Dominic Xavier/RediffInterest is expected to be higher in general and health insurance than in life insurance, which is far more dependent on distribution networks, they added. In addition, the proposed cha ...

Leading non-banking financial company (NBFC) Shriram Finance on Friday said Japan-based MUFG Bank would invest Rs 39,618 crore, or $4.4 billion, to acquire a 20 per cent stake on a fully diluted basis through a preferential issue of equity shares.Illustration: Uttam GhoshThis will be the largest foreign direct investment (FDI) ever in India’s financial services sector, which has seen a spate of large deals this year.The transaction will surpass Emirates NBD’s October deal to acquire a 60 per cent stake in R ...

India’s financial services companies including banks and non-banking finance companies (NBFCs) have seen record foreign direct investment (FDI) flowing in the current calendar year. businessline takes a re-look at some of the largest deals in 2025:Shriram Finance-MUFG dealOn December 19, India’s second largest NBFC Shriram Finance said it has entered into definitive agreement with Japan’s largest lender MUFG Bank wherein the latter will pick 20 per cent stake in the NBFC for ₹39,618 crore. This is the large ...

According to previous ET reports, Japan’s largest bank MUFG will acquire a 20% stake in The deal will value Shriram Finance at a market capitalisation of Rs 1.63 lakh crore, making it the second-largest non-banking finance company (NBFC) in India after The development comes after MUFG’s board cleared the proposal earlier this week in Tokyo, and Shriram Finance’s directors are expected to give it the go-ahead on Friday. The capital infusion will not involve any secondary sale of shares.Post-investment, MUFG ...

India’s Parliament has approved legislation that will raise the foreign direct investment (FDI) cap in the insurance sector from 74% to 100%. This amendment is part of the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Bill, 2025, which also grants new regulatory authority to the Insurance Regulatory and Development Authority of India (IRDAI) over matters such as commission payments. The bill was first proposed in December last year. While introducing the bill in the Lok Sabha, the lower house o ...

On October 1, ET had reported that MUFG was in advanced talks to take a 20% stake in India's second largest non-banking finance company (NBFC), Shriram Finance, for about ₹23,200 crore ($2.6 billion). If the deal fructifies, it would be the biggest strategic investment by an overseas lender in the Indian NBFC. However, valuations have since climbed as investors have poured money into the stock in anticipation of the deal. From ₹616 a piece at the end of September 30, the Shriram stock has risen more than ...

“By contrast, AI-related investment is still gaining momentum across all sectors. Western Europe remains well positioned here, with strong research and development capabilities and deep engineering talent pools, which continue to attract international companies seeking to establish advanced research, data and engineering hubs.”"Industrial projects in Western Europe are likely to continue decreasing, but the impact is now spreading to other activity types. Green tech and renewable-energy investments, which w ...

India’s parliament on Wednesday approved a bill to raise foreign direct investment in the insurance sector to 100% from 74%, a move that will help insure more people in the world’s most populous country.The increase in the FDI limit could boost investments and improve insurance penetration in the country, which stood at 3.8% of GDP in 2024, according to research firm Swiss Re Institute. “The amendments are expected to further strengthen job creation, skill development and formal employment,” Finance Ministe ...