Morning Buzz: Banks and NBFCs post rapid rises in assets under management; India's middle class to rise to 1 billion by 2047, and more
Credit growth was sustained by a rise in consumption and deposits also grew substantially
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India’s middle class to rise to 1 billion by 2047
India’s middle class is likely to rise to 715 million by 2031 from the current 432 million and 1 billion by 2047. Middle class is defined as anyone with an income at 2021 prices of between Rs5 lakh and Rs30 lakh. As income characteristics are transformed, those classified as destitute will fall from 14 percent in 2021 to 5 percent by 2031. These projections are based on the fact that India is likely to become a $7.1 trillion economy by 2031.(Economic Times, Hindu BusinessLine, Business Standard)
Ranjan Pai to buy 18 percent in Pharmeasy
Online pharmacy Pharmeasy plans a rights issue at a 90 percent discount to its peak stock price. The offering is being done to pay back a loan to Goldman Sachs and is likely to see Ranjan Pai, Temasek and TPG Growth put in money. Pai, with an 18 percent stake, will also be eligible for a board seat. The new stock will be issued at Rs5 a share compared to Rs50 a share in 2021.(Times of India, Economic Times)
Tata Steel fires 35 employees for breach of ethics code
Tata Steel got rid of 35 employees for various violations, including three for sexual misconduct. The company, which encourages employees to come forward with complaints, received 875 complaints in FY23 of which 158 were related to whistleblowers and 48 regarding safety. It is also committed to reaching a 40 million tonne production target in India by 2030.(Times of India)
Banks and NBFCs post strong credit, deposit growth
Numbers for the first quarter of FY24 showed banks and NBFCs posting rapid rises in AUM (assets under management). On average, the rise was 14 percent, while HDFC Bank and Bajaj Finance saw a rise of 16 percent and 32 percent, respectively. Credit growth was sustained by the rise in consumption. Deposits also saw a robust rise. Bandhan Bank and Yes Bank were particular laggards in both credit growth and deposits.(Hindu BusinessLine)
