Morning Buzz: Yes Bank puts more bad loans for sale, investor firm Omidyar to exit India, and more
Here are the top business headlines this morning, to get your day started
Private lender Yes Bank has put an additional Rs4,200 crore worth of bad loans for sale.
Image: Niharika Kulkarni/NurPhoto via Getty ImagesIndia’s retail inflation surges to a three-month high in November
Annual retail inflation for the country, according to the CPI index, rose to 5.5 percent for November 2023, its highest pace of growth, raising concerns that the Reserve Bank of India is unlikely to start lowering interest rates soon. The central bank has kept rates on hold for five consecutive meetings—at 6.5 percent—the last decision being on December 9 last week. Food inflation, a majority of the consumer price basket, was 8.7 percent in November, up from 6.61 percent in October 2023.
(Economic Times, The Times of India, Reuters India)
Nearly 80 percent employers to sustain or expand their workforce in H2FY24
Nearly 80 percent of India’s employers in the corporate world are planning to either sustain or increase their workforce in the second half of FY24, according to a TeamLease report. The boost to government policies and fostering a conducive business environment, implementation of PLI schemes and other employment initiatives from the government have been cited as the reasons to start hiring more.
(Business Standard)
Investor firm Omidyar to exit India
Impact investor firm Omidyar Network India plans to exit the India market. The group will not make new investments and plans to phase out from the market by the end of 2024. It has cumulative assets worth around $675 million in India. There is increased competition due to the rise in philanthropy and venture capital funds in the past decade or more. Also returns on investments for Omidyar might not be as expected, experts say, forcing the decision to wind down India operations.
(The Hindu Businessline, Entrackr, The Times of India, NDTV)
Yes Bank puts more bad loans for sale
Private lender Yes Bank has put an additional Rs4,200 crore worth of bad loans for sale. This comes nearly a year after it successfully sold Rs48,000 crore worth of NPAs to asset reconstruction company JC Flowers. The bank has been trying to lower its overall debt position which has improved to Rs78,505 crore in FY23 from Rs1,14,077 crore in FY20. Its overall Gross NPAs have also fallen to 2.0 percent (of gross advances) for Q2FY24 compared to 12.9 percent for the same period, a year earlier. The stock has risen by 30 percent to Rs 21.4 at the BSE in the past six months.
(Economic Times, Moneycontrol)
