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Morning Buzz: Walmart stake in Flipkart hits 80 percent; business loans pick up in Q1, and more

Here are the top business headlines this morning, to get your day started

Samar Srivastava
Published: Aug 1, 2023 10:05:16 AM IST
Updated: Aug 1, 2023 10:06:49 AM IST

Morning Buzz: Walmart stake in Flipkart hits 80 percent; business loans pick up in Q1, and more(File photo)The company logo is shown on the front of a shopping cart at a Walmart store on May 18, 2023, in Chicago, Illinois. Image: Scott Olson/Getty Images via AFP

Business loans pick up in Q1 after trailing retail credit  

Incremental bank loans to businesses have outpaced retail loans in the first quarter of FY24. The share of incremental bank loans to industry stood at 51 percent compared to 46 percent in the same quarter last year. This shift to the industry is likely to continue as public sector banks have sanctioned amounts under the PLI scheme, and those would be dispersed in the second half of the year. Data also shows that infrastructure received the largest portion of loans under the industry category.
(Times of India)

Kotak Bank denies receiving RBI communication on CEO

Kotak Mahindra Bank has denied receiving any communication from the Reserve Bank, either formally or informally, regarding the succession of its CEO Uday Kotak. Kotak’s term expires on December 31, 2023, and the bank is expected to send its recommendations to the RBI by August 31, 2023. Earlier, a report by Jefferies said that the Reserve Bank had been nudging the bank and its board to pick an outsider.
(Economic Times, Business Standard, Times of India)     

Yes Bank evaluating Spandana acquisition to enter microfinance space

Yes Bank and Kedaara Capital have entered into talks to explore a deal for microfinance lender Spandana Sphoorty. The talks haven’t been confirmed by the parties, and negotiations on the price are said to be ongoing. The lender currently trades at 1.9 times FY24 price to book value, and Spandana is expecting a 30-40 percent premium to that price. Yes Bank will look to retain the existing team at Spandana.
(BusinessLine)

Walmart stake in Flipkart hits 80 percent

Walmart has bought out stakes by co-founder Benny Bansal as well as Tiger Global to take its stake to 80.5 percent. The current transaction values Flipkart at $35 billion. Sachin Bansal divested his entire holding for about $1 billion in 2018. Binny, who is based in Singapore, had partially sold a stake in 2021 to Tencent for $200-250 million. Walmart confirmed they had acquired the shares from Tiger Global.
(Economic Times)

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