Banking Sector Overview
Recent data from the Reserve Bank of India (RBI) indicated a slowdown in bank credit growth, dropping to 7.3% in September. Meanwhile, Bank of Baroda reported
a 8% decrease in profit for the second quarter, reaching ₹4,809 Cr, which was also reflected in the Q2 results. These numbers indicate a dynamic landscape within the banking sector. The RBI is closely monitoring these developments, conducting surveys to gather input for monetary policy decisions. The banking sector's performance is further shaped by regulatory changes. For example, the GST council has introduced a three-year time limit for GST returns starting November. Also, BLS E-Services was empanelled by the Bank of Maharashtra.
Fiscal and Financial Data
The fiscal deficit, as reported by the Controller General of Accounts (CGA), reached 36.5% of the target. This points towards the fiscal health of the government. In the corporate sector, Mahindra Holidays saw a profit jump of 47% to reach ₹17 Cr in Q2, while Mahindra Lifespace and Tata Projects collaborated on a construction Memorandum of Understanding (MoU). Other financial activities include Jubilant Pharmova, recording a 17% increase in profit during Q2, and Aptus Value Housing, seeing a 24% rise in net profit.
Market Dynamics & Investment
The Sensex experienced a decline of 466 points, likely due to profit booking and global market cues. In the IPO market, Orkla India's IPO was oversubscribed 48.73 times. Basic Home Loan is targeting 3x revenue growth and planning an IPO. Also, Studds Accessories' IPO was oversubscribed 5x on Day 2. The office market in India shows strong demand, valued at USD 186 billion, with further growth anticipated.
Trade, Exports & Policy
India's exports showed growth in non-US markets. Discussions around a Free Trade Agreement (FTA) with the US are ongoing to diversify exports. India is pushing for discussions on digital infrastructure for e-commerce within the WTO. The Business Reform Plan 2025 aims to empower collectors. The government is focusing on policy reforms to create an environment conducive to business growth and international trade.
Infrastructure Initiatives
The partnership between DMRC and Mappls MapmyIndia aims to provide metro app information. The Kolkata Port is set for a ₹1,000cr investment. Tuticorin Port is anticipating an investment of ₹1.27 lakh crore. Titagarh Rail secured a ₹2,481 crore Mumbai Metro order, marking significant infrastructure development. The focus is on upgrading and expanding transportation and logistics infrastructure.
