• Sat. Jul 13th, 2024

Expresso Business and Finance News Highlights of the Week on 7 July 2024

Expresso Business and Finance News Highlights of the Week on 7 July 2024 Transcript

Let’s begin with the major update, Startups seem to be showing results on the profitability front in the last two years, with venture capitalists and private equity firms tightening their purse strings and stressing on profit first rather than just growth. In FY24, three unicorns turned profitable: Travel tech startup Oyo, Honasa Consumer’s Mamaearth, and food tech major Zomato. Also turning profitable were Lendingkart and Mensa Brands’ MyFitness (the latter was Ebitda profitable). In comparison, only two unicorns — Chargebee and Rivigo — had turned profitable in FY22, and only one startup, Digit Insurance, in FY23, according to Tracxn data. Besides, eight other startups have reported profits in either the third or fourth quarter of FY24, and one in Q1FY25.


Meanwhile, Tax relief on deposits, home loans and a standalone refinancing body for non-banking financial companies (NBFCs) are among the top recommendations that bankers have made to the Centre ahead of the upcoming Budget for FY25. SBI chairman Dinesh Khara, for instance, has pitched for a tax relief on the income account holders earn from interest. Quote, If at all some relief could be given regarding tax on the interest earnings, it will be an incentive to depositors. Eventually, the banking sector uses deposits mobilised for the capital formation in India, Unquote, he told PTI in an interview in June. Under the current taxation laws, banks deduct tax on interest income earned on deposits when it exceeds Rs 40,000 a year.


Furthermore, ICICI Bank on Tuesday launched its ‘Student Sapphiro Forex Card’, a premium forex prepaid card crafted specifically for students who are going abroad for higher education. The card, powered by Visa, provides exclusive benefits and convenience to students as well as their parents to manage education related expenses abroad such as admission fees, course-related fees and other day-to-day expenses including travel, dining and groceries, among others, ICICI Bank said in a release. The card offers the freedom of loading and transacting in 15 currencies, without any cross-currency mark-up charge being levied by the bank, allowing students to conveniently travel across the globe even if they load only one currency on the card.


Next up, India’s manufacturing activity rose to 58.3 in June, recovering from a three-month low of 57.5 in May, indicating a sharper improvement in business conditions, data released by S&P Global on Monday showed. The PMI was comfortably above its long-run average. Growth in the Indian manufacturing sector recovered some of the ground lost in May, with the headline PMI posting nearly five points above its long-run average. The June data showed that the buoyant demand conditions spurred the expansions in new orders, output and buying levels. This led to the fastest rate of hiring in more than 19 years despite inflationary pressures remaining elevated, the survey reported. The rate of job creation was the strongest seen since data collection started.


Moving on, Star Health and Allied Insurance Company is aiming at doubling its gross written premium (GWP) to more than ₹30,000 crore in the next three years by expanding into new markets and launching products suitable for different age groups. “In the first 18 years, we achieved ₹15,254 crore in GWP. With our current growth strategy, we are confident of reaching ₹30,000 crore by FY28,” said Anand Roy, MD & CEO of Star Health Insurance. On Wednesday, Star Health launched home health care services to policyholders in 50 cities and towns. Speaking on the sidelines, Roy said most of the GWP growth will come through penetration into rural markets and by growing its market share in urban cities.


Additionally, The National Stock Exchange (NSE) issued an advisory for investors on Wednesday warning about a person named Ajay Kumar Sharma who provides securities market tips for trading and assured returns on investment in stock market. Sharma, operating through mobile number 7878337029 and telegram channel Bharat Trading Yatra, also offers to handle trading accounts of investors by asking them to share their login ID/password. “It may also be noted that the said person/entity is not registered either as a member or authorized person of any registered member of the National Stock Exchange of India Limited ,” the exchange said in an official release. It added, investors are advised not to share their trading credentials such as user id/password with anyone.”


Lastly, GE T&D India announced that it has bagged an order worth 26 million Euros from Grid Solutions Middle East FZE, Dubai, for the supply and supervision of high voltage products. The order, it added, has been received from the group company and these products will form a part of the overall project being executed by the group company for the end customer. This order is slated to be executed over the next two years. Further, GE T&D India also secured another order worth 64 million Euros from Grid Solutions SAS, France, for the supply and supervision of high voltage products. This order is also to be executed over the next two years, the company said in a regulatory filing.


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