Morning Buzz: BlackRock to form JV with Jio Financial Services, Mahindra buys 3.47 percent stake in RBL Bank, and more
Here are the top business headlines this morning, to get your day started
Jio Financial Services plans to get into a joint venture (JV) with BlackRock, the world’s largest asset manager.
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BlackRock to form joint venture with Jio Financial Services
Jio Financial Services plans to get into a joint venture (JV) with BlackRock, the world’s largest asset manager. The move will mark a re-entry into the domestic market for BlackRock, which earlier had a JV with the DSP Group. The plan is to offer affordable investment solutions for Indians, the two firms said in a joint press release. The move comes after Jio Financial was spun out last week from the parent Reliance Industries at a market cap of Rs 1,66,000 crore.(Economic Times, Mint, Business Standard, BusinessLine)
Mahindra and Mahindra buys 3.47 percent stake in RBL Bank
Mahindra and Mahindra has acquired a 3.47 percent stake in RBL Bank at a price of Rs 417 crore. The company plans to continue to acquire a higher stake, but under no circumstances will it exceed 9.9 percent. As of now there is no consensus on granting business houses a banking licence and the Reserve Bank of India caps promoter shareholding, except that of the government, at 10 percent. RBL shares jumped 7.1 percent to close at a 52-week high of Rs 242.(Economic Times, Mint, Business Standard)
GST Council to meet on August 2 to take a call on gaming levy
The GST Council plans to meet virtually on August 2 to clear the law needed to implement 28 percent GST on online gaming bets. As of now there is no plan to go back on the decision to implement 28 percent GST on online gaming, casinos and horse racing. State GST laws will have to be amended in time to implement the tax and hence the meeting is being convened virtually to give enough time for the levy to be also passed by Parliament.(Mint)
Bajaj Finance troubled by rapid growth of personal loans
Bajaj Finance is taking pre-emptive steps to stay out of trouble on account of the pace of growth in personal loans. “The amount of personal loan growth is troubling us,” said Rajeev Jain in a results conference call. Even the business-to-consumer segment is seeing an increase in leverage. Outside of this, all other parts of the company portfolio are in good health and there is no cause for worry.(Mint)
