For a detailed blog with data points please read >> https://bit.ly/Weekending21stOct
Summary in two minutes read below
- Bank of Baroda Fraud: The fraud perpetrated in Bank of Baroda reminded of the scam in Wells Fargo Bank a few years before, forcing RBI banning the bank from onboarding new clients to its mobile app 'bob World'. Agents had illicitly linked unauthorized mobile numbers to customer accounts, potentially to meet unrealistic app sign-up targets.
- Positive Outlook for India: a. An SBI Research report predicts a credit-to-GDP ratio expansion, indicating sustained GDP growth. b. JP Morgan forecasts India becoming the world's third-largest economy by 2027. c. CRISIL anticipates a rebound in private sector capital expenditure by 2025-26, driven by global economic recovery and political stability.
- AI and Technology: India is preparing for AI integration, with the potential to add significant value to its economy. The government is establishing Centers of Excellence (CoEs), a National Data Management Office, and supporting AI startups with funding.
- Global Debt Concerns: Developed economies have seen a significant rise in global debt, with concerns about the ability to meet financial obligations in the U.S., Italy, and the UK. Governments worldwide need credible fiscal plans to manage finances amidst geopolitical tensions.
- Securitised Debt Instruments (SDIs): SDIs, structured collections of bonds, are gaining traction as they offer higher returns compared to debt mutual funds and tax advantages. They simplify bond portfolio management for retail investors.
- Fintech Growth: India's fintech market is rapidly expanding, with 23 unicorns and 34 soonicorns, a combined valuation of $74 billion. Lending tech has received substantial funding.
- Increased Fee Income in Investment Banking: Despite a decline in deals, Mumbai's investment bankers have seen a 41% increase in fee income during 2023, the highest since 2000.
- Angel Tax Clarification: The CBDT clarified that startups registered with the DPIIT would not face scrutiny related to angel tax valuation. This move aims to prevent unnecessary litigation and provide clarity to registered startups.
