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- Bit by Bit 30th Dec. || Banks likely to remain on a profitable path in 2023, too with robust credit growth ||Reliance's FMCG arm to acquire controlling stake in Lotus Chocolate for Rs 74 crore & More
Bit by Bit 30th Dec. || Banks likely to remain on a profitable path in 2023, too with robust credit growth ||Reliance's FMCG arm to acquire controlling stake in Lotus Chocolate for Rs 74 crore & More
Good Morning Readers!
Pele "the best" had gone a long way from the little boy living in the underprivileged outskirts of Brazil to become a three-time world cup champion. Pele began competing for Brazil at age 16 and won the 1958 World Cup in Sweden before turning 18 years old. He was adored and appreciated by millions of people and an inspiration to countless sportsmen. He offered hundreds of them the hope that they, too, might win the world championship and pursue careers in the sport they adored. Nelson Mandela once said, "To watch him play was to behold the happiness of a kid blended with the wonderful elegance of a man in full." This statement captures how amazing he was to watch. He also had a great record in club football, scoring an astounding 659 goals for Santos in just 643 appearances. The only thing lacking from his career is the fact that he never played for a European football team, which cost him the chance to play in the top leagues in front of millions of people. He was frequently compared to great athletes like Maradona, Cruyff, Messi, and Ronaldo, yet no one won as many world championships as he did. A guy who popularised football and inspired us to believe that we can succeed in everything we put our minds and bodies toward through the difficult times. Rest in peace, 'The King'.
Here are:
"5 amazing stories in 5 minutes to make you future ready"
Happy reading!
MARKET UPDATE
NIFTY 50 : ₹18,191.00 (+0.33%)
BSE SENSEX : ₹60,910.28 (-0.03%)
NIFTY BANK : ₹43,252.35 (+0.99%)
USD/INR : ₹82.763 (-0.08%)
BRENTOIL : $83.96 (-0.85%)
MCXGOLD : ₹54,336 (-0.38%)
FII Net Cashflow : - ₹873 crores
DII Net Cashflow : + ₹373 crores
(Market Data as of 11:00 PM on 29/12/2022)
BANKING
Key Facts:
David Solomon (CEO) said he will make job cuts in January.
The bank is reportedly considering cutting about 8% of its 49,000 employees (4,000 job losses).
The bank is also thought to be considering cuts to its bonus pool of up to 40%.
The Story:
Investment banks had enjoyed a boom year in 2021, as companies launched a huge wave of mergers and acquisitions after coronavirus pandemic lockdowns. Goldman Sachs and other banks expanded to take advantage, but the number of lucrative deals fell back in 2022 amid rising interest rates around the world.
After a bumpy year in 2022, teams working on mergers and takeovers are particularly at risk in the coming 12 months as interest rates rise, increasing the cost of borrowing the cash needed to fund new deals.
Completing job cuts would allow Goldman executives to present them to investors on 17 January, when the bank will report its full-year 2022 results. The bank is also approaching investors in February about a restructuring plan to improve its profitability.
FMCG
Reliance's FMCG arm to acquire controlling stake in Lotus Chocolate for Rs 74 crore
The Story:
Reliance Consumer products Ltd, the FMCG arm of Reliance Industries Ltd, will purchase 51 percent stake in Lotus Chocolate for Rs 74 crore and will lauch an open offer to buy another 26 percent.
The deal will help drive the growth and expansion of Lotus into a comprehensive confectionery, cocoa, chocolate derivatives and related products manufacturer across industrial and consumer market spectrum, Reliance said in a statement.
As part of the share purchase agreement,Reliance Consumer proposes to acquire 77 percent of the paid-up share capital of Lotus Chocolate through a "secondary purchase" from promoters Prakash Pai and Ananth Peraje Pai, followed by an open offer
In its regulatory filing, Lotus Chocolate said a shareholders agreement (SHA) has been executed between RCPL and members of the promoter and promoter group, namely Prakash Peraje Pai, Ananth Peraje Pai, Poornima Pai, Nivedita Pai, Ashwini Pai, Abhijeet Pai, Aman Pai and and Aditya Pai.Lotus Chocolate said its board approved the execution of SHA which would come into effect from the closing date as mentioned in the share purchase agreement (SPA) entered between RCPL and the promoters, namely Prakash Peraje Pai and Ananth Peraje Pai.
AUTOMOTIVE
The Story :
India aims to double the size of its automobile industry to Rs 15 lakh crore by the end of 2024, making it one of the world's top countries in this sector, Union Road Transport and Highways Minister Nitin Gadkari said on Wednesday. Gadkari also said that his ministry would carry out project works worth Rs 5 lakh crore next year, of which Rs 2 lakh crore will come from the government and the rest will be raised from the capital market.
"Currently, our automobile industry is Rs 7.5 lakh crore, and we want to take it to Rs 15 lakh crore by the end of 2024, making it one of the largest automakers in the world, creating huge job opportunities," Gadkari said at a virtual session of Merchants' Chamber of Commerce and Industry.
"We are also developing alternative, clean and green fuels like bio-ethanol, bio-CNG, bio-LNG and green hydrogen," he said, adding that green hydrogen is the fuel of the future. The minister also spoke about his focus on reducing the cost of construction with improved quality with greater use of recycled materials like plastics, rubber and others.
TECH
Predictable,progressive taxes key to make India global gaming hub: Experts.
The Story:
According to experts, India's goal of making the AVGC (Animation, Visual Effects, Gaming, and Comics) sector a high-growth industry requires a straightforward and uniform approach to personal taxation. They claimed that a high incidence of Tax Deducted at Source (TDS) on gaming profits, amounting to 30%, is encouraging the growth of offshore platforms in India, which are exempt from regulatory requirements and taxation.
Online skill-based gaming (OSG), which is expected to generate $20 billion in revenue by 2030, is currently a $2 billion market with a CAGR of over 38%.
Because the borders between countries for digital transactions are so porous, gamers can access worldwide online gambling platforms that are illegal, outside of any tax net, and where they are not required to pay any taxes, unlike stock market participants.
Supreme Court Senior Counsel Rohan Shah stated that it is necessary to align tax laws from the 1970s with the new-age business of 2022 in order to develop a worldwide gaming sector and affiliated industries.
We ought to research how other nations are addressing this issue. Gaming income is classified as regular income in the US, and you can deduct it. In the UK, winnings are not subjected to any income tax at all," Shah said, adding, a predictable and progressive tax regime is needed to make India a global gaming hub.
Anything Interesting
Public sector banks have reduced their bad loans and reported record profits this fiscal year, making them appear out of the woods. This trend is anticipated to continue in 2023 as well. Strong credit demand and a high-interest rate environment brought on by the world's challenging monetary conditions are also anticipated to boost bank profitability. Consolidation continued to be popular in the private banking sector, as evidenced by parent company HDFC Ltd's decision to merge with HDFC Bank and Axis Bank's announcement that it would acquire Citibank's retail business. The expected completion date for these two transactions is 2023.
Uday Kotak, the managing director of Kotak Mahindra Bank, claims that the Reserve Bank of India (RBI) may increase interest rates one more time to 6.5 percent from the current 6.25 percent. Twelve Public Sector Banks (PSBs), representing about 60% of the market in terms of total business, reported a 32% increase in cumulative net profit at Rs. 40,991 crores during the first half of the current fiscal year.
The government's efforts to reduce bad loans and improve the financial health of the banks by injecting capital totaling about Rs 3 lakh crore over the past five years are bearing fruit, according to Finance Minister Nirmala Sitharaman. A well-capitalized banking system that saw an increase in credit disbursement to the retail, industry, and services segments has ably supported the banks' strong performance in the first half of the current fiscal year.
