20 nov

NewsWala aaya, taaza khabre laya! Good morning!
 

BUSINESS

Cashquake alert for BoB

What happened

In a financial sprint that could make Usain Bolt jealous, Bank of Baroda (BoB) hit the headlines on November 18. The bank cheerfully announced to the stock exchanges that its capital raising committee is gearing up to raise a whopping ₹15,000 crore .

Picture this: ₹5,000 crore will come from tier-II debt bonds, and the rest, a cool ₹10,000 crore, will flow in through infrastructure bonds. The decision to embark on this financial adventure was sealed during a committee meeting held earlier that day, as revealed in the bank's regulatory filing.

Why it matters

This financial feat comes just over a month after BoB's board gave a thumbs-up to a ₹10,000 crore fundraising proposal. What's the money for, you ask? Affordable housing and infrastructure projects, making this bank not just about numbers but also about making a positive impact.

• Talking about numbers, BoB reported a net profit of ₹4,253 crore in the quarter ending September 2023, showing off a robust 28 percent increase from ₹4,001 crore in the same period last year. 

• The bank's total income did some gymnastics too, jumping to ₹32,033 crore in the second quarter, up from ₹23,080 crore in the previous fiscal period.

Zoom out

As BoB gears up for this financial marathon, the banking world is buzzing with anticipation. Will this sprint to raise ₹15,000 crore be a victory lap or a hurdles race? The past months have been a low for BoB after it was involved in the scandal process of signing up customers for its Internet banking app.

BIG MONEY MOVES

Honda's Indian-made Elevate heads to Japan

Honda is set to export its India-made mid-sized SUV, Elevate , to Japan in Spring 2024, marking the first instance of a product from Honda Cars India Ltd being introduced to the Japanese market. The SUV is manufactured in HCIL's Tapukara facility in Rajasthan, showcasing India's manufacturing prowess. This strategic move aligns with Honda's vision to establish India as a key export hub.

SBI's Yono goes global

India's State Bank (SBI) is set to unveil its Yono Global banking app in Singapore and the US, providing digitalized remittance services. The leadership expressed SBI's commitment to enhancing customer experience at the Singapore Fintech Festival. The app is already operational in nine countries, with SBI's foreign operations holding a total balance sheet of USD 78 billion . In Singapore, Yono Global is integrating with PayNow for a comprehensive offering.

BUSINESS

JSW's ₹4,119 Cr Karnataka Voyage

What happened

JSW Infrastructure Ltd clinched the rights to develop a greenfield port in Karnataka. The Keni port project boasts an initial capacity of 30 million tonnes per annum (mtpa) and is slated for completion within the next five years. JSW Infrastructure emerged victorious with a bid of ₹4,119 crore for the all-weather, deep-water port, secured through a public-private partnership. The company is set to operate the project for a robust 30-year period.

Why it matters

JSW's acquisition of the Keni port is set to address the escalating import and export trade momentum in the region. The port is strategically located to serve the industries in the north Karnataka region, covering areas like Bellary, Hosapete, Hubballi, Kalaburagi, and south Maharashtra. With modern, eco-friendly mechanized facilities for handling cape-size vessels, the port aligns with Karnataka's Maritime Perspective Plan, projecting a cargo potential of 44 mtpa, expected to soar to 117 mtpa by 2035.

JSW Infra's commitment to pay royalties and a 30-year concession period underscores the long-term impact of this deal. The proposed rail connectivity and strategic positioning between two major ports further highlight the project's significance for the transportation of coal, coke, steel, cement, and power plant materials.

Conclusion: JSW's Expansion Strategy and Future Outlook

JSW Infrastructure's foray into the Keni port project aligns with its broader vision. The company not only eyes a significant role in Karnataka's maritime infrastructure but also plans to elevate its third-party business from the current 36% to 40% within two years and 50% within five years.

In addition to the port acquisition, JSW Infrastructure's entry into container train operations further strengthens its position in the logistics sector, marking a strategic move to enhance third-party cargo operations. This multi-pronged approach positions JSW Infrastructure for substantial growth and influence in the evolving landscape of India's infrastructure and logistics sectors.

BIG PICTURE

😕  Sam Altman is FIRED, and back again?

Investors, including Microsoft and Tiger Global, are reportedly pushing for the return of Sam Altman as OpenAI CEO, just a day after his unexpected ousting. Sequoia Capital is also in contact, offering support for Altman's potential comeback or a new venture. Altman, reportedly ambivalent about returning, may seek governance changes. The move follows OpenAI's recent surge in the AI market and talks of a potential $86 billion valuation.

🤖  Disney joins exodus as brands distance from X 

Disney pulls its ads from Elon Musk's social media platform X after Musk endorses antisemitic points. Apple, Comcast, IBM, Lionsgate, NBCUniversal, Paramount, and Warner Bros. Discovery had already withdrawn ads. X faces uncertainties about future profitability due to Musk's increasing association with extremist beliefs. Both Musk and X CEO Linda Yaccarino issued statements emphasizing efforts against antisemitism and discrimination. 

BUSINESS

Govt greenlights tech localization

What happened

India greenlights a game-changing move as 27 tech titans, including Dell, HP, and Foxconn, get the nod for a ₹3,000 crore investment under the ₹17,000 crore Production Linked Incentive Scheme. The approval, announced by IT Minister Ashwini Vaishnaw, signals a significant leap toward making India a global hub for IT manufacturing.

Why it matters

The Indian government's push to bolster domestic production gets a power boost as these companies gear up to invest ₹3,000 crore , targeting an annual output of $300 billion by 2026. The scheme, offering cash-back incentives, aims to enhance India's position in the global electronics supply chain. With 95% of the approved companies ready to start manufacturing immediately, this move could reshape India's presence in the PC, server, laptop, and tablet manufacturing landscape.

Zoom out

India's tech revolution gains momentum with 27 giants on board, primed to propel the country's IT hardware manufacturing. With a vision of becoming a powerhouse in global electronics, India's PLI schemes are creating ripples, attracting major players, and aiming for self-reliance.  

And the best part is that 50,000 direct jobs are expected to be created, coupled with an additional 1.5 lakh opportunities for indirect employment. This combined effort is projected to yield a substantial employment boost of 2 lakh positions.

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