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☆ India's Modi lashes opposition as Adani allegations persist
▼ + stars: | 2023-02-08 | by ( Shivam Patel | ) www.reuters.com time to read: +3 min

Modi spent a nearly 90-minute speech to parliament mainly listing governments achievements and without naming the under-fire Adani Group. However, opposition lawmakers who are demanding an investigation into the business group interrupted him several times shouting slogans. "The blessings of 1.4 billion people in the country is my protective cover and you can't destroy it with lies and abuses," said Modi as opposition lawmakers chanted "Adani, Adani". Adani Transmission (ADAI.NS), Adani Power (ADAN.NS) and Adani Wilmar (ADAW.NS) rose 5% each, while Adani Green (ADNA.NS) and Adani Total Gas Ltd (ADAG.NS) fell 5% each. They have questioned investments made by state-run Life Insurance Corporation of India (LIFI.NS) and the State Bank of India (SBI.NS) in Adani Group companies.

Adani Group has denied the allegations, saying it complies with all laws and has made necessary disclosures over time. On Monday though, Adani Group said it will pre-pay $1.11 billion of loans on shares. Separately, JPMorgan on Tuesday said the group companies were still eligible for inclusion in the bank's bond indexes. The cumulative losses of Adani group's seven listed companies still stand at $109 billion despite Adani Ports and Special Economic Zone (APSE.NS) also gaining 2.6% on Tuesday and Adani Wilmar (ADAW.NS) adding 5%. Many Adani group companies report results this week.

☆ Indian banks' exposure to Adani group "insufficient" to pose credit risk - Fitch
▼ + stars: | 2023-02-07 | by ( ) www.reuters.com time to read: +3 min

MUMBAI, Feb 7 (Reuters) - The exposure of Indian banks to the embattled Adani Group is "insufficient in itself" to present a substantial risk to the credit profiles of these lenders, Fitch Ratings said in a note on Tuesday. Fitch estimated that loans to all Adani group entities generally account for 0.8%-1.2% of total lending for Indian banks rated by the agency, equivalent to 7%-13% of total equity. SBI's total exposure was 0.9% of its total loan book, or around 270 billion rupees, Chairman Dinesh Kumar Khara has said. Additionally, most of the bank's exposure to the Adani Group was secured by completed and cash-generating assets while the rest of the exposure was to on-schedule, under-construction projects, said CreditSights. Fitch, however, cautioned that Indian state banks could face pressure to provide refinancing for Adani entities if foreign banks scale back their exposure or investor appetite for the group's debt weakens in global markets.

☆ Indian shares set for muted start on rate fears, Adani uncertainty
▼ + stars: | 2023-02-06 | by ( ) www.reuters.com time to read: +2 min

Analysts said that the selloff in Adani stocks has created panic in Indian markets. Ratings agency Moody's warned that the tumble in Adani group stocks could hit the conglomerate's ability to raise capital. STOCKS TO WATCHState Bank of India (SBI.NS): India's largest lender reports a rise in net profit in the third quarter. read moreITC (ITC.NS): Co reports a higher-than-expected rise in net profit in December-quarter on strong cigarette sales and steady demand for packaged foods. read moreMarico (MRCO.NS): Co reports higher-than-expected rise in net profit in Q3 on higher demand for cooking products and hair oil.

But the market turmoil led its flagship Adani Enterprises (ADEL.NS) to abandon a $2.5 billion secondary share offering on Wednesday, prompting concerns at lenders. 1 lender, SBI says the bank has about 270 billion rupees ($3.3 billion) in loans to Adani Group. Bank debt forms 38% of the total debt of 2.1 trillion rupees at the top five Adani companies, according to a Jefferies report. Senior executives at six other Indian lenders, with exposure to Adani companies, told Reuters they had also decided to tighten the credit approval process for Adani. India's central bank has asked local banks for details of their exposure to Adani companies, Reuters reported on Thursday, citing government and banking sources.

☆ Exclusive: Indian refiners pay traders in dirhams for Russian oil
▼ + stars: | 2023-02-03 | by ( Nidhi Verma | ) www.reuters.com time to read: +3 min

Previous attempts by Indian refiners to pay traders for Russian crude in dirhams through Dubai banks failed, forcing them to switch back to the U.S. currency. Indian refiners typically buy Russian crude from traders at a price that includes delivery to India. An invoice for such a deal seen by Reuters showed traders asking for an average crude price including freight for Urals crude. Indian refiners mostly buy Russian crude from Dubai-based traders including Everest Energy and Litasco, a unit of Russian oil major Lukoil (LKOH.MM). India's oil secretary Pankaj Jain last month said Indian companies were not facing any problems in paying for Russian oil as the latest actions by the West do not impact the trade settlement mechanism.

☆ Adani’s battle with Hindenburg leaves investors sizing up exposure to the global banking sector
▼ + stars: | 2023-01-31 | by ( Seema Mody | ) www.cnbc.com time to read: +4 min

Indeed, Indian banks make up 0.6% of the group's sector loans, according to JPMorgan. This may seem low but the total exposure to the Adani Group is still around $9 billion, wrote Saurabh Kumar, an analyst at JPMorgan. Gautam Adani, chairman of Adani Group. Jefferies analyst Prakhar Sharma writes that, for now, the risk to Indian banks is low, saying, "we don't see material risk to the Indian banking sector." Of the seven companies operated by the Adani Group: Adani Green Energy, Adani Power and Adani Ports are sitting on the most net debt, according to analysts.

HONG KONG/MUMBAI, Jan 30 (Reuters Breakingviews) - Gautam Adani’s financing options are narrowing fast. That leaves it dependent on a safety net provided by Indian banks. Those concerns exploded after Hindenburg Research last week declared the Indian group was making extensive use of tax havens and “pulling the largest con in corporate history” – allegations Adani dismissed as “misinformation” and “stale, baseless and discredited”. Lending more to the group would protect the capital that banks already have at risk in projects under construction. Shares of Gautam Adani’s listed companies have lost a combined $48 billion in market capitalisation since Jan. 25.

MUMBAI, Jan 27 (Reuters) - Some of India's leading public sector banks said on Friday their exposure to the Adani Group was within the limits prescribed by the central bank, assuaging fears of default risks from their exposure to the conglomerate. Public sector banks in India have in the past been hit by massive corporate defaults. The board will take any decision on the bank's exposure to the group only after that, the official said. The Adani Group comprises the flagship Adani Enterprises Ltd (ADEL.NS), as well as Adani Ports and Special Economic Zone Ltd (APSE.NS), Adani Power Ltd (ADAN.NS), Adani Green Energy Ltd (ADNA.NS) and Adani Transmission Ltd (ADAI.NS). For public sector banks, the debt is at 0.7% of total loans and for private banks, it is at 0.3%.

☆ India is a true bright spot in the midst of a global downturn, top execs and policymakers say
▼ + stars: | 2023-01-27 | by ( Jenni Reid | ) www.cnbc.com time to read: +5 min

But India does shine out among the world's biggest economies, with Europe hovering on the brink of potential recession and U.S. growth slowing. "It's for the whole digital India, and creating a digital society in India," Ekholm told CNBC. watch nowIndia, he continued, "will very shortly have the best digital infrastructure outside of China," driven by telecoms juggernauts Bharti Airtel and Jio, he added. Strong tailwinds"We are very optimistic and very positive on India," the chief executive of Tata Consultancy Services, Rajesh Gopinathan, told CNBC. As Anish Shah, chief executive of Mahindra Group, told CNBC: "India will get impacted.

☆ SBI chair: Every country has the right to ensure their energy security
▼ + stars: | 2023-01-17 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailSBI chair: Every country has the right to ensure their energy securityDinesh Kumar Khara, chairman of State Bank of India, speaks to CNBC about the resilience of the Indian economy.

☆ Analysis: Fall in India nominal GDP growth in FY24 to challenge fiscal math
▼ + stars: | 2023-01-09 | by ( Ira Dugal | ) www.reuters.com time to read: +4 min

At least four leading economists expect nominal GDP growth to come in between 8% and 11% as inflation slows and real GDP growth eases from an estimated 7% this year, when pandemic-related distortions and pent-up demand pushed up growth rates. Das said he expects nominal GDP growth of 8%-9% in FY24, with inflation and real GDP growth seen declining. A growth of 8-9% would bring that number close to the 7.6% nominal growth seen in 2019/20, before the Covid crisis hit. State Bank of India and rating agency ICRA estimate the nominal GDP growth at around 10% for next financial year. "Higher-than-budgeted nominal GDP growth,(will help) to keep fiscal deficit as a percentage of GDP at 6.4%, with downside risks," it said.

MUMBAI, Jan 6 (Reuters) - Loss-making Indian telecom operator Vodafone Idea has sought at least 70 billion rupees ($846 million) in emergency funds from local banks, which are however reluctant to extend fresh loans, four sources familiar with the matter said. "Without that (capital injection) it looks difficult for the company to ...survive," said one top official at a state-owned bank. Vodafone Idea (VODA.NS), the telecom ministry, and State Bank of India (SBI.NS) - the country's largest lender which the company has approached for financing - did not immediately respond to Reuters requests for comment. A feasibility study shared by Vodafone Idea with its bankers suggested the business might need a radical restructuring in order to survive, several of the sources said. An equity conversion by the government would be expected to raise its stake in the company to beyond 30%.

☆ India’s Vodafone stress test may have ugly results
▼ + stars: | 2023-01-06 | by ( Una Galani | ) www.reuters.com time to read: +4 min

Investors cheered, and many customers in its now-234 million-and shrinking subscriber base breathed a sigh of relief. Vodafone, meanwhile, is now calling on the banks for fresh loans, per the Economic Times. That may not have been sufficient, but there was no disclosure by the company stating that the swap was conditional on the existing owners’ financial commitment. India’s politicians are careful to avoid situations where they might be accused of being too generous to foreign multinationals. With so much stress, though, other creditors might find a reason to pull the rug from under the company’s feet sooner.

☆ Indian shares dip on weak global cues; autos, FMCG stocks slide
▼ + stars: | 2022-12-20 | by ( ) www.reuters.com time to read: +1 min

BENGALURU, Dec 20 (Reuters) - Indian shares opened lower on Tuesday on fears of a recession in the U.S. and a surge in COVID-19 cases in China, which has offset optimism over loosening strict pandemic restrictions. Barring Adani Enterprises (ADEL.NS) and State Bank of India (SBI.NS), all the other 48 constituents in Nifty 50 logged losses. All the major sectoral indices declined with auto (.NIFTYAUTO), FMCG (.NIFTYFMCG), information technology (.NIFTYIT) and metal (.NIFTYMET) stocks shedding over 0.5%. Asian markets declined on weak cues, such as a surge in new COVID-19 infections in China and weak macroeconomic indicators, with MSCI Asia ex Japan (.MIAPJ0000PUS) falling 0.54%. ($1 = 82.7200 Indian rupees)Reporting by Bharath Rajeswaran in Bengaluru; Editing by Janane VenkatramanOur Standards: The Thomson Reuters Trust Principles.

☆ 'Global contenders': BofA names stocks with earnings momentum that look cheap
▼ + stars: | 2022-12-13 | by ( Weizhen Tan | ) www.cnbc.com time to read: +2 min

Looking ahead, however, BofA expects "defender" stocks with falling earnings momentum to underperform the MSCI AC World Index. Stocks that are 'global contenders' Against this backdrop, BofA identified stocks that are "inexpensive" but have strong earnings momentum and price momentum. "Our back-testing and subsequent performance show that stocks with above-average earnings momentum tended to outperform, stocks with above-average price momentum tended to outperform, but stocks with both the characteristics tended to perform even better," it wrote. These stocks have outperformed the MSCI AC World Index by 6.9% year-to-date, the bank said. The bank's "global contenders" screen contains 30 stocks including: U.S.: Gaming company Electronic Arts , energy tech firm Enphase Energy , health care company Jazz Pharma , and beauty firm Ulta Beauty .

☆ Mukesh Ambani will take credit where it’s due
▼ + stars: | 2022-12-06 | by ( Shritama Bose | ) www.reuters.com time to read: +5 min

Boss Mukesh Ambani might do precisely that to fund a push by his $220 billion Reliance Industries (RELI.NS) conglomerate into consumer lending. The company is spinning off and listing its little-noticed non-bank financial company. More than rivals, Ambani is sitting on a treasure trove of data to assess the credit worthiness of borrowers. As a home-grown tycoon, Ambani has a better chance of success than other late entrants to financial services. On Oct. 21, Reliance revealed plans to spin off Reliance Strategic and rename it Jio Financial Services.

The private lender raised 150 billion rupees ($1.85 billion) through 10-year Tier-II bonds at an annual coupon of 7.86%, for which it had received bids worth 240.80 billion rupees, according to merchant bankers. A large state-run insurance company and a big provident fund house invested an aggregate of 90 billion rupees in this issue, merchant bankers said. HDFC Bank completes its debt sale a day ahead of State Bank of India's bond issue. HDFC Bank is set to be merged with parent Housing Development Finance Corp (HDFC.NS) in the coming months, and both entities have been on a fundraising spree this financial year. While HDFC Bank has raised 30 billion rupees, excluding the latest issue, HDFC has raised around 550 billion rupees through bond issuance.

☆ India annual GDP growth to slow in Sept quarter as COVID effect fades
▼ + stars: | 2022-11-29 | by ( Aftab Ahmed | ) www.reuters.com time to read: +2 min

NEW DELHI, Nov 30 (Reuters) - Annual growth in the Indian economy likely slowed in the July-September quarter as COVID distortions faded, economists said ahead of GDP data due on Wednesday that will provide clues about its resilience in the face of global economic turmoil. Asia's third-largest economy is expected to post annual growth of 6.2% in the three months to Sept. 31, according to a Reuters poll, down from explosive growth of 13.5% in the previous quarter, which was inflated by comparison with weak activity during COVID-19 lockdowns. Ghosh, however, said annual GDP growth in the period could be slightly slower than the consensus expectation of over 6% as companies have seen a decline in margins and industrial production increased at an annual pace of only 1.5% on average last quarter, its weakest in two years. Consumption has also improved, which suggests that momentum on a non-seasonally adjusted basis is likely to be stronger in the July-September quarter than in the previous three months, economists said. "On a sequential (non seasonally adjusted) basis, July-September GDP is likely to increase, reversing the contraction seen in the prior three months," said Rahul Bajoria, chief India economist at Barclays.

MUMBAI, Nov 28 (Reuters) - Jet Airways' (JET.NS) creditors and its new owners are deadlocked over a resolution plan to lift the Indian airline out of bankruptcy, putting its future in limbo, four sources said. It was taken to bankruptcy court by creditors owed about 180 billion rupees ($2 billion). A spokesperson for Jet's owners said in a statement on Monday that the resolution plan was binding upon all involved parties and was approved by the bankruptcy court. "We are "working closely" with the erstwhile lenders of Jet to implement this plan, and remain "fully committed" to getting Jet Airways off the ground," it added. By not implementing the resolution plan, creditors are causing unnecessary delays, the source close to Jet said adding that the consortium has already invested more than 1 billion rupees in the airline.

SummarySummary Companies Coal miners struggling to fund expansion plansThermal coal costs more than coking coal after price surgeMost Western bankers pulling back from coal industryLONDON, Nov 24 (Reuters) - It's the best of times, it's the worst of times. At least when it comes to mining coal. With funding hard to come by from Western banks, coal miners outside China have turned more to equity markets this year. "With regard to thermal coal mining, any transaction in coal mining requires an enhanced environmental risk review," a Deutsche spokesperson said, adding that the bank was updating its coal policy. Bens Creek listed shares partly because of the lack of appetite from banks to support any expansion of coal mining, chief executive Wilson said.

☆ Rise in Indian corporate lending signals new investment cycle
▼ + stars: | 2022-11-21 | by ( Ira Dugal | ) www.reuters.com time to read: +5 min

Private investment in India was constrained for years by heavy indebtedness of companies and banks and by weak demand. SBI expects its stock of corporate loans to rise by between 14% and 15% this year and by 12% a year on average in 2023 and 2024. read moreAcross India's banking sector, lending has been rising steadily. Muralikrishna, chief general manager for large corporate lending at Bank of Baroda (BOB.NS), India's second-largest state-owned lender. Dixon Technologies (DIXO.NS), an electronics manufacturer with annual revenue of about 150 billion rupees ($1.85 billion), will receive incentives under the scheme for setting up facilities in five sectors, including electronics. Already, October exports were lower than a year earlier, and Nomura economists cautioned in a note this week that India's investment cycles were closely linked to its export cycles.

Apparel retailers, restaurants, banks, construction companies all saw a rise in sales and orders, as the country geared up for the first pandemic-free festive season in two years. Reuters Graphics"There is definitely a festive boost which cannot be denied and which is reflected in earnings performance," said Vivek Kumar, economist at Mumbai-based QuantEco Research. "There was also some comfort on input prices moderating in the quarter, and a boost from pent-up demand. read moreNair said he expects sales in the festive quarter to top pre-pandemic levels. State Bank of India (SBI) (SBI.NS), the country's largest lender, reported record quarterly profit and forecast credit growth to remain in double-digits.

☆ Indian bank stocks' record rally to continue as balance sheets strengthen
▼ + stars: | 2022-11-10 | by ( Nupur Anand | ) www.reuters.com time to read: +3 min

[1/2] A man checks his mobile phones in front of State Bank of India (SBI) branch in Kolkata, India, February 9, 2018. This comes at a time when credit growth is at a multi-year high and bad loans across lenders have reduced significantly. The brokerage said private and state-owned lenders that remained better placed to grow include ICICI Bank Ltd (ICBK.NS), HDFC Bank Ltd (HDBK.NS), Axis Bank Ltd (AXBK.NS), IndusInd Bank Ltd (INBK.NS), Bank of Baroda Ltd (BOB.NS) and State Bank of India (SBI) (SBI.NS). Credit growth is at a multi-year high, with an uptick both in retail and corporate loans. "One key concern going ahead remains how the rising interest rate scenario will impact credit growth."

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