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ICICI Bank Shares Slip as ICICI Prudential AMC Files for Landmark ₹10,000 Crore IPO
Banking, Market News - July 10, 2025

ICICI Bank Shares Slip as ICICI Prudential AMC Files for Landmark ₹10,000 Crore IPO

ICICI Bank Shares Slip as ICICI Prudential AMC Files for Landmark ₹10,000 Crore IPO

ICICI Prudential Asset Management Company’s IPO filing triggers market reaction, as parent ICICI Bank eyes stake increase and Prudential plans a significant divestment in one of India’s largest asset management listings.

Introduction
The Indian financial sector is witnessing a major development as ICICI Prudential AMC, a joint venture between ICICI Bank and Prudential plc, prepares for a high-profile public debut. The asset manager’s IPO, expected to be among the largest in the sector, is set against a backdrop of robust financial performance and a rapidly growing investor base. However, the announcement has also impacted ICICI Bank’s stock, which saw a decline as investors digested the implications of the listing and the associated changes in shareholding.

The IPO Filing: Structure and Details
On July 8, 2025, ICICI Prudential AMC submitted its DRHP to SEBI, BSE, and NSE, marking the formal initiation of its initial public offering process. The IPO is structured solely as an offer for sale (OFS), through which Prudential Corporation Holdings plans to offload up to 10% of its stake in the AMC. This translates to approximately 1.76 crore shares on offer, with no fresh equity issue—meaning the entire proceeds will go to the selling shareholder, Prudential.
ICICI Bank, which presently owns a 51% stake, has revealed its intention to purchase an additional 2% from Prudential ahead of the IPO, pending regulatory approvals and final agreement on terms. This inter-se agreement is likely intended to strengthen ICICI Bank’s control over the asset management company (AMC) in preparation for its market debut.

Financial Performance and Market Position
ICICI Prudential AMC has shown robust financial performance in the run-up to its IPO. For the fiscal year ending March 31, 2025, the company reported a 32.4% jump in revenue from operations, reaching ₹4,977.3 crore, and a net profit of ₹2,650.66 crore. The AMC manages assets worth over ₹9.5 lakh crore and boasts a customer base of 14.6 million, making it the largest AMC in India by active mutual fund quarterly average assets under management.

Strategic Context: ICICI Bank and Prudential’s Moves
This IPO represents the ICICI Group’s fifth significant market debut, following earlier listings of ICICI Bank, ICICI Prudential Life Insurance, ICICI Lombard General Insurance, and the previously listed ICICI Securities. With this move, ICICI Prudential AMC will also become the fifth asset management firm to list on Indian stock exchanges, joining peers such as HDFC AMC, UTI AMC, etc,.
Prudential’s decision to divest a 10% stake is seen as a strategic move to unlock value from its long-standing joint venture. The sale could yield a substantial return for the UK-based insurer, given its original acquisition cost for the stake was just ₹10 crore. For ICICI Bank, the planned 2% stake increase signals confidence in the AMC’s future prospects and a desire to strengthen its position as the controlling partner.

Market Reaction: ICICI Bank Shares Under Pressure
The announcement of the IPO and associated stake sale has led to a decline in ICICI Bank’s share price. Investors are assessing the near-term implications of the ownership reshuffle and the lack of new capital infusion into the AMC, given that the entire IPO proceeds will be directed to Prudential. Market participants are also assessing the broader implications for ICICI Bank’s consolidated earnings and strategic direction.

Industry Impact and Outlook
The public offering of ICICI Prudential AMC is anticipated to be a landmark event for India’s asset management sector. The listing will provide investors with another avenue to participate in the country’s growing mutual fund sector, which has seen rapid expansion in both assets and investor participation. The IPO is also likely to set benchmarks for future valuations in the industry.

Conclusion
ICICI Prudential AMC’s IPO filing represents a significant milestone for both the company and the broader financial sector. While the move has introduced some short-term volatility in ICICI Bank’s share price, it underscores the growing maturity and depth of India’s capital markets. As the IPO process unfolds, all eyes will be on the pricing, investor response, and the future trajectory of both ICICI Prudential AMC and its parent, ICICI Bank.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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MRF Shares Soar Above ₹1.5 Lakh, Reaching a 52-Week Peak!

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Tata Sons Strengthens Hold on Tata Capital: Shaping the Future of India’s Banking and Financial Sector
Banking, Business - July 9, 2025

Tata Sons Strengthens Hold on Tata Capital: Shaping the Future of India’s Banking and Financial Sector

Tata Sons Strengthens Hold on Tata Capital: Shaping the Future of India’s Banking and Financial Sector

How Tata Sons’ Strategic Moves with Tata Capital Are Setting New Benchmarks in the NBFC Space Ahead of a Blockbuster IPO

Introduction
India’s non-banking financial companies (NBFCs) have witnessed remarkable growth in recent years, but few stories are as compelling as Tata Capital’s meteoric rise. Backed by the formidable Tata Sons, Tata Capital’s valuation and upcoming public offering are not just milestones for the group—they are pivotal moments for the entire sector.

Tata Sons’ Stake: The Backbone of Tata Capital
Tata Sons’ 93 percent stake in Tata Capital shows its unwavering trust in the company’s direction, resilience, and long-term growth trajectory.
The valuation of this stake at approximately ₹98,000 crore has been determined following a recent rights issue, reflecting the market’s optimism as Tata Capital prepares for its much-anticipated IPO.
This significant stake positions Tata Sons as the primary driver of Tata Capital’s strategy, allowing it to steer the NBFC’s expansion, risk management, and innovation agendas. The remaining shares are held by other Tata group entities, including Tata Investment Corporation, which has also benefited from the recent surge in Tata Capital’s valuation.

IPO on the Horizon: Regulatory and Market Dynamics
SEBI’s Green Light and RBI Mandate
Tata Capital’s IPO journey has gained momentum with regulatory approvals from SEBI, setting the stage for one of the largest public offerings in 2025. The Reserve Bank of India’s classification of Tata Capital as an “upper layer” NBFC has mandated a listing deadline by September 2025, adding urgency and focus to the company’s preparations.
Size and Structure of the Offering
The IPO aims to raise up to ₹17,200 crore through a mix of fresh share issuance and an offer for sale by Tata Sons. This move will likely reduce Tata Sons’ holding by up to 18%, but the parent company will retain a controlling interest post-listing. The offering’s scale and structure underscore Tata Capital’s ambitions to join the ranks of India’s most valuable financial institutions.

Financial Performance: Growth Trajectory and Capital Infusion
Rights Issue and Capital Strengthening
The capital infusion through right issue has bolstered the NBFC’s net worth, providing a solid foundation for future growth and enhancing its ability to meet regulatory requirements.
Profits and Portfolio Expansion
Tata Capital’s FY25 financial results highlight the company’s strong and healthy performance. Net profits have soared to ₹3,655 crore, while total assets have climbed to ₹2,48,465 crore. The loan portfolio, now exceeding ₹2.2 lakh crore, has grown by an impressive 41% year-over-year, signaling strong demand across retail, corporate, and infrastructure lending segments.
Market Impact: Investor Sentiment and Shareholder Gains
The surge in Tata Capital’s valuation has had ripple effects across the market. Tata Investment Corporation, a minority stakeholder, has witnessed a stock price surge driven by Tata Capital’s strong financial performance and upcoming IPO plans. Broader investor sentiment towards NBFCs has also improved, with Tata Capital’s success serving as a bellwether for the sector’s resilience and growth potential.

Strategic Implications: What Lies Ahead
Leadership in the NBFC Sector
With its scale, brand strength, and financial muscle, Tata Capital is poised to consolidate its leadership among India’s top NBFCs. The upcoming IPO will not only provide fresh capital for expansion but also enhance transparency and governance standards, aligning the company with global best practices.
Regulatory Compliance and Future Readiness
Tata Capital’s proactive approach to meeting RBI’s listing requirements—without seeking deadline extensions—demonstrates its readiness to operate in a more regulated and scrutinized environment. This bodes well for its long-term sustainability and ability to attract institutional investors.

Conclusion
Tata Sons’ near-total ownership and strategic stewardship of Tata Capital have set the stage for a transformative period in India’s financial services sector. As the company prepares for its landmark IPO, its strong financials, regulatory compliance, and market positioning make it a compelling story of growth and ambition. The coming months will be crucial as Tata Capital transitions from a privately held powerhouse to a publicly listed leader, shaping the future of NBFCs in India.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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China Curbs LNG Amid Rising Russian Energy Imports

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Corporate Bond Issuances Set to Hit ₹11 Trillion in FY26 Amid Falling Rates and Delayed Bank Transmission
Banking, Business, Market News - July 9, 2025

HDFC Bank Anchors ₹532 Crore Bond Issue for Adani Group’s Power Transmission Arm

HDFC Bank Anchors ₹532 Crore Bond Issue for Adani Group’s Power Transmission Arm

HDFC Bank has facilitated a ₹532 crore funding round for WRSS XXI (Part), a special purpose vehicle (SPV) within the Adani Group’s transmission portfolio. The bond issue, structured to refinance external borrowings, underlines the ongoing shift in India’s infrastructure funding strategies, with domestic institutions playing an increasingly central role in supporting long-term capital requirements.

HDFC Bank Leads the Charge

In this transaction, HDFC Bank served as both the lead arranger and a principal investor. The bank invested ₹159.6 crore of its own capital in the ₹532 crore bond issue. The remaining portion was raised from additional investors, with Darashaw & Co stepping in to manage a ₹100 crore slice as a co-arranger. The involvement of such high-profile participants reinforces investor confidence in Adani Group’s infrastructure projects, particularly in the regulated transmission segment.

Bond Details and Financial Strategy

The bond issue is structured with a maturity of 18 years, extending up to 2043, and carries a fixed interest rate of 7.70% per annum. The long-term nature of the bond matches the lifecycle of infrastructure assets like power transmission lines, which generate predictable revenue over extended periods.

The instrument has been assigned a AAA rating, reflecting the issuer’s strong financial profile and low credit risk. Proceeds from the issue are being used to refinance existing external commercial borrowings (ECBs) taken earlier by the SPV. By shifting from foreign currency debt to Indian rupee-denominated bonds, the company aims to reduce exposure to currency volatility and interest rate fluctuations abroad.

About WRSS XXI and Its Role

WRSS XXI (Part) is one of several SPVs set up under the Adani Transmission umbrella to build and operate electricity transmission lines. These projects are vital for ensuring stable power supply across regions and for connecting renewable energy sources to the national grid. The company focuses on strengthening transmission infrastructure in Western India, facilitating better electricity flow between states and enhancing grid reliability.

This refinancing effort reflects a conscious move toward financial efficiency. By tapping into the domestic debt market, the SPV secures long-term funding aligned with the project’s operational lifespan, while also mitigating risks tied to foreign borrowing.

Investor Appetite and Institutional Trust

The fact that one of India’s top private sector banks has taken a lead role in both arranging and investing in the bond highlights growing institutional faith in the Adani Group’s utility ventures. While the group has faced criticism and scrutiny in global financial circles over the past two years, core infrastructure businesses like power transmission continue to command interest from serious investors.

A combination of strong credit ratings, a stable business model, and assured cash flows from regulated operations makes transmission SPVs attractive to banks, mutual funds, and other long-term investors. With a 7.70% coupon rate, the bond provides an attractive yield, especially in today’s prevailing interest rate scenario.

Advantages of Domestic Refinancing

By substituting foreign borrowings with rupee bonds, WRSS XXI reduces its dependence on overseas lenders and shields itself from exchange rate risk. Additionally, long-tenor debt minimizes the need for frequent refinancing and aligns well with regulatory frameworks that support long-term infrastructure investments.

Domestic capital raising also resonates with broader policy goals set by financial regulators and the government, who are encouraging corporates to access local funding avenues. This strategy not only supports financial stability but also nurtures the growth of India’s bond markets.

Strategic Implications for Adani Group

This transaction fits into Adani Group’s larger efforts to optimize its capital structure and reassure stakeholders. Since early 2023, the conglomerate has steadily worked on reducing debt, diversifying its financing channels, and bringing more transparency to its funding mechanisms.

Projects like WRSS XXI provide predictable returns, regulated tariffs, and long-term revenue visibility, making them ideal candidates for bond market participation. Raising funds through such mechanisms enhances financial discipline while freeing up capital for new investments in energy and infrastructure.

Conclusion

HDFC Bank’s ₹532 crore bond arrangement for Adani Group’s WRSS XXI represents a key step forward in India’s evolving infrastructure finance landscape. It reflects the growing reliance on domestic funding options for long-term projects and signals a maturing bond market ready to support critical infrastructure development.

The deal demonstrates how well-structured, asset-backed bonds with strong credit profiles can attract top-tier investors and reduce reliance on external borrowing. For Adani Group, this successful transaction reinforces the resilience of its core infrastructure business. For HDFC Bank, it further establishes the institution’s role as a reliable partner in financing India’s economic growth.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Euro-Zone Bond Yields Rise as Markets Await US Tariff Decision

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FINO Payments Bank Eyes ₹100 Crore Profit in FY26 Amid Strong Digital Shift
Banking, Markets - July 7, 2025

FINO Payments Bank Eyes ₹100 Crore Profit in FY26 Amid Strong Digital Shift

FINO Payments Bank Eyes ₹100 Crore Profit in FY26 Amid Strong Digital Shift

FINO Payments Bank, a prominent player in India’s fintech space, has unveiled an ambitious roadmap for FY26 as it aims to achieve a net profit of ₹100 crore. This sharp growth target comes on the back of rising digital adoption, expanding merchant reach, and a strong push towards financial inclusion. The bank’s strategic evolution highlights the growing confidence of fintech institutions in tapping India’s underserved markets through tech-driven solutions.

Riding the Digital Momentum

A key pillar of FINO’s growth plan is its increasing focus on digital transactions. The bank anticipates that around 49% of its transactions in FY26 will be digital, a significant leap from just 21% in the previous year. This reflects the larger industry-wide trend of customers shifting from cash-based dealings to convenient digital platforms.

The bank expects its revenue from digital channels to exceed 25% in the current fiscal. This marks a strategic shift not just in service delivery but also in profitability, as digital transactions typically come with lower operating costs and higher margins. Tools like QR codes, PoS machines, and innovative audio-based payment confirmations are now key enablers in FINO’s ecosystem.

Expanding Reach and Product Portfolio

FINO’s network of merchants has now surpassed 1.9 million across India, forming the backbone of its services. These merchants function as local banking points, allowing the bank to serve customers even in the most remote regions. This widespread reach supports the bank’s hybrid model—combining physical access with digital efficiency.

In terms of offerings, FINO is stepping up innovation. It is developing new digital products like Soundbox devices that deliver voice alerts for transactions—ideal for small shopkeepers in busy or noisy environments. It is also working on offline QR solutions that enable transactions even in areas with poor connectivity.

Moreover, the bank plans to expand its prepaid instruments, digital wallets, and bulk disbursement services. These enhancements aim to increase usage among both customers and merchants, encouraging repeat transactions and improving user stickiness.

Robust Customer Base

As of March 2025, FINO serves over 1.43 crore users, of which 53 lakh are active on digital platforms. This shows a growing customer preference for mobile-based and remote banking services. The company’s strong customer base, particularly in Tier 2 and Tier 3 regions, provides it with a competitive advantage over digital-only players that often struggle to build trust beyond urban centers.

Strong Financial Performance in FY25

FINO ended FY25 on a high note, recording a 30% jump in revenue, rising from ₹150 crore in FY24 to ₹195 crore. Its net profit stood at ₹93 crore, reflecting an annual growth of over 8%. Return on Equity (ROE) and Return on Capital Employed (ROCE) were 13.6% and 6.67%, respectively. These numbers showcase the company’s operational efficiency and its readiness to scale sustainably.

With consistent earnings and improved margins from digital operations, FINO believes reaching ₹100 crore in profit for FY26 is well within reach.

Cost Efficiency and Deposit Growth

The bank has been focusing on maintaining a lean cost structure. Its cost-to-income ratio is targeted around 25%, a mark of financial discipline that boosts long-term sustainability. To further strengthen its foundation, FINO is working on increasing its CASA (Current and Savings Account) base—essential for reducing the cost of funds and enhancing interest income margins.

Looking Ahead: Plans to Become a Small Finance Bank

One of the most significant developments on the horizon is FINO’s plan to transition into a Small Finance Bank (SFB). This change would allow the institution to expand its lending capabilities, offer fixed deposits, and introduce new loan products like housing and MSME financing.

The transformation from a payments bank to an SFB is expected to open doors to a broader customer base and improve revenue streams. More importantly, it would enable FINO to serve its existing network with an extended range of services, strengthening its position in the rural and semi-urban banking ecosystem.

Challenges and Competitive Landscape

Despite its strengths, FINO operates in a highly competitive fintech market. Established players and emerging neobanks are rapidly gaining ground in the digital space. Companies like Jio Payments Bank, Paytm Payments Bank, and app-based challengers like PhonePe and Jupiter are all vying for market share.

However, FINO’s edge lies in its deep physical reach combined with tech-enabled delivery—a combination that many digital-only players cannot yet replicate effectively.

Conclusion

FINO Payments Bank’s profit target of ₹100 crore for FY26 reflects its confidence in the evolving digital landscape and its ability to serve India’s vast underserved population. With a strong merchant network, growing digital revenue, and plans to upgrade to a Small Finance Bank, FINO is well-positioned for the next phase of its journey.

If successful, it will not only mark a milestone for the company but also reinforce the potential of hybrid fintech models in driving financial inclusion and profitability across India.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Healthcare Sector in India Set to Record 11% Rise in Revenue and EBITDA in Q1 FY26

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ICICI Bank Shares Slip as ICICI Prudential AMC Files for Landmark ₹10,000 Crore IPO
Banking, Markets - July 7, 2025

Public Sector Banks to Hire 50,000 Employees This Fiscal Amid Expansion Push

Public Sector Banks to Hire 50,000 Employees This Fiscal Amid Expansion Push

Driven by business growth and branch-level needs, PSBs plan massive recruitment, including over 21,000 officer roles across India this financial year.

Massive Recruitment Drive Underway in Public Sector Banks

India’s public sector banks (PSBs) are embarking on a large-scale hiring spree in the current financial year, aiming to recruit around 50,000 employees to support their expanding operations and growing customer base. This significant workforce expansion comes in response to the evolving banking landscape and the increasing demand for branch-level services across the country.

According to data gathered from various banks, approximately 21,000 of these positions will be filled at the officer level, while the rest will include clerical and support staff.

SBI Leads the Way with 20,000 New Positions

Among the twelve government-owned banks, State Bank of India (SBI) has emerged as the primary driver of this broad-based recruitment push unfolding across the nation. India’s largest lender is expected to add close to 20,000 employees to its workforce during the financial year, including specialist officer roles and customer service associates.

The recruitment drive is already underway at SBI, which has brought on board 505 Probationary Officers and 13,455 junior associates—strategically placed across 35 states and Union Territories—to strengthen branch-level service and streamline operational efficiency nationwide.

By the end of March 2025, the workforce at SBI had reached 2,36,226 employees, with officers comprising 1,15,066 of the total headcount. The bank continues to maintain a strong focus on employee retention, boasting an attrition rate consistently below 2%, thanks to its employee-centric policies and engagement programs.

Other Public Sector Banks Also Scaling Up Hiring

While SBI takes a lion’s share of this recruitment drive, other major PSBs are also boosting their workforce. Punjab National Bank (PNB), the country’s second-largest state-run lender, has laid out plans to add over 5,500 employees in the current fiscal year.

PNB’s total staff count reached 1,02,746 by the end of March 2025, and the fresh intake is expected to further strengthen the bank’s operational capabilities and customer support.

Central Bank of India, another state-owned financial institution, is set to induct approximately 4,000 new employees this year, further contributing to the collective hiring momentum in the sector.

Focus on Quality Hiring and Cost Efficiency

The recruitment strategy across PSBs is not just focused on numbers but also on quality hiring, aimed at bringing in talent that can align with the evolving digital and service-oriented banking environment. The average cost of hiring per full-time employee during FY 2024–25 was noted at ₹40,440.59, reflecting a commitment to maintaining both affordability and effectiveness in onboarding processes.

Banks are prioritizing hiring in areas that directly impact customer service, branch efficiency, and digital transformation, ensuring that the new workforce is both relevant and future-ready.

Monetising Subsidiary Investments: A Parallel Focus

Alongside hiring, the government is encouraging public sector banks to unlock value from their investments in subsidiaries and joint ventures. The finance ministry has urged banks to consider listing their subsidiaries on stock exchanges once these units reach a certain scale and profitability.

Currently, around 15 subsidiaries and joint ventures owned by PSBs are being considered for initial public offerings (IPOs) or strategic divestments over the medium to long term. This move is aimed at improving return on investment and enhancing capital efficiency within the banking system.

Before moving toward monetisation, banks have been advised to upgrade governance standards, ensure transparent decision-making, and enhance operational efficiency within their subsidiary businesses. Where necessary, banks may also invest further in scaling up these units to prepare them for successful listings.

Final Thoughts

Public sector banks in India are making bold moves to align with growing customer demands, technological changes, and future expansion. With a massive hiring plan targeting 50,000 new employees, these banks are not only strengthening their workforce but also building capacity to serve India’s diverse population more effectively.

At the forefront is SBI, setting an example with strategic hires and industry-leading retention rates. Meanwhile, other key players like PNB and Central Bank of India are following suit with sizable recruitment goals of their own. Together, these initiatives signal a revival of human capital within India’s public banking space, aligning seamlessly with the industry’s fresh momentum toward expansion.

Simultaneously, the government’s push for monetisation of PSB subsidiaries signals a broader strategy of efficiency, transparency, and value creation. By combining smart hiring with capital unlocking, public sector banks are preparing themselves for a stronger and more competitive future in India’s financial ecosystem.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Elitecon Soars: Eyes ₹300 Crore Fundraise & Acquisition!

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Stock Market Surge: RIL and Airtel Drive Massive Gains as Sensex Climbs 1.5% in a Week
Banking, Equities, Market News - June 24, 2025

Stock Market Surge: RIL and Airtel Drive Massive Gains as Sensex Climbs 1.5% in a Week

Stock Market Surge: RIL and Airtel Drive Massive Gains as Sensex Climbs 1.5% in a Week

The Indian stock market witnessed a significant rally last week, with the BSE Sensex surging by approximately 1,289.6 points or 1.58%. This uptrend added substantial value to leading companies, with Reliance Industries Limited (RIL) and Bharti Airtel emerging as the top contributors to the overall market capitalization growth.

Telecom and Energy Lead the Charge
Bharti Airtel and RIL were key drivers of last week’s gains. Bharti Airtel added an impressive ₹54,056 crore to its market value, closing the week with a total market capitalization of ₹11.04 lakh crore. The company’s stock price rose nearly 4%, closing at ₹1,934 per share. The surge was largely attributed to strong investor confidence in the telecom sector, driven by increasing data consumption and the company’s expanding 5G network.
Reliance Industries also posted a strong performance, adding about ₹50,070 crore in market value, pushing its total market capitalization to approximately ₹19.82 lakh crore. Reliance’s shares advanced by 2.5%, ending the week at ₹1,464.10 per share. Analysts attribute this growth to optimism surrounding Reliance’s energy, retail, and telecom segments, as well as positive market sentiment regarding its future growth trajectory.

Financial and IT Stocks Join the Rally
Besides telecom and energy, several major financial and IT companies also contributed to the market’s upward movement. HDFC Bank, India’s largest private lender, saw its market capitalization increase by approximately ₹38,504 crore, closing the week with a valuation of around ₹15.07 lakh crore. The bank’s continued focus on improving asset quality and stable growth in its loan book have kept investors positive.
Infosys, one of India’s leading IT services companies, added about ₹8,433 crore in market value, with a closing valuation of ₹6.74 lakh crore. The gains in IT stocks like Infosys were supported by expectations of steady demand for digital services and improved revenue pipelines despite global macroeconomic uncertainties.
ICICI Bank also participated in the rally, adding around ₹8,012 crore to its market value and reaching a total market capitalization of approximately ₹10.18 lakh crore. Investor confidence in ICICI Bank remains strong, driven by its consistent financial performance and digital banking initiatives.
State Bank of India (SBI), the country’s largest public sector bank, experienced a market cap addition of ₹3,213 crore, ending the week with a valuation of around ₹7.10 lakh crore. The stock’s resilience continues to reflect the strength of India’s banking sector recovery and SBI’s strategic growth plans.

Losses in Select Companies
While many large-cap stocks posted gains, a few significant players experienced a decline in their market capitalization. Bajaj Finance saw a loss of approximately ₹17,876 crore, reflecting investor caution despite the company’s robust lending business. Tata Consultancy Services (TCS) recorded a drop of about ₹4,613 crore, while Hindustan Unilever Limited (HUL) and Life Insurance Corporation (LIC) lost ₹3,336 crore and ₹1,107 crore respectively.
The minor setbacks in these companies are seen as part of normal market fluctuations, as investors rotated funds into more aggressively growing sectors like telecom and energy.

Top 10 Most Valued Companies
By the end of the week, the ten most valued Indian companies included Reliance Industries, HDFC Bank, TCS, Bharti Airtel, ICICI Bank, SBI, Infosys, LIC, Bajaj Finance, and HUL. These companies continue to dominate the Indian corporate landscape in terms of market capitalization and investor attention.

Overall Market Outlook
The broader market rally highlights growing investor confidence in key sectors such as telecom, banking, energy, and information technology. The significant addition to market capitalizations indicates robust participation from institutional investors, supported by positive domestic economic indicators and expectations of continued earnings growth.
Experts believe the stock market could maintain its upward trajectory in the coming weeks, especially if key companies continue to report solid quarterly results and global market conditions remain stable. However, they also caution that intermittent corrections may occur, driven by profit booking and global uncertainties.

Conclusion: Strong Weekly Gains Led by Market Heavyweights
The Indian stock market’s performance last week showcased a strong rally powered by heavyweight companies like Bharti Airtel and Reliance Industries. While some companies faced moderate declines, the overall sentiment remained bullish. With multiple sectors contributing to the gains, the Sensex’s 1.5% weekly surge reflects both sectoral strength and investor optimism about India’s economic prospects.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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NATO Eases Defence Spending Demand Following Spain’s Objection to 5% GDP Commitment

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FINO Payments Bank Eyes ₹100 Crore Profit in FY26 Amid Strong Digital Shift
Banking, Markets - June 23, 2025

Mutual Funds Now One-Third of Bank Deposits!

Mutual Funds Now One-Third of Bank Deposits!

The Indian mutual fund industry has amassed ₹72.2 trillion in assets under management (AUM), nearly one-third of total bank deposits, reflecting a notable shift in investor preferences and financial dynamics.

Summary:
India’s mutual fund industry has reached a new milestone, with assets under management (AUM) surging to ₹72.2 trillion as of May 2025—nearly one-third of the country’s total bank deposits, which stand at ₹232 trillion. This rapid growth highlights the evolving savings patterns of Indian households, driven by higher financial literacy, favorable market conditions, and a growing appetite for market-linked instruments over traditional savings products. Experts believe this trend signals a structural shift in the Indian economy, with far-reaching implications for capital markets, retail investors, and the banking sector.

India’s Mutual Fund Boom: A New Milestone
In a notable development that underscores the transformation of India’s financial landscape, the mutual fund industry achieved remarkable assets under management (AUM) of ₹72.2 trillion in May 2025, according to the latest data from the Association of Mutual Funds in India (AMFI). This marks the industry’s highest-ever AUM and now represents nearly one-third of the total bank deposits, which stood at ₹232 trillion during the same period.
This development signals a fundamental shift in the savings and investment patterns of Indian households, which have historically favored low-risk bank deposits and physical assets such as gold and real estate.

Retail Participation and SIP Culture Drive Growth
One of the most defining features of this growth is the exponential rise in retail participation. Systematic Investment Plans (SIPs) have emerged as the cornerstone of mutual fund inflows, with over ₹20,000 crore being invested monthly through SIPs. As of May 2025, the total SIP AUM crossed ₹10 trillion for the first time, driven by long-term retail investors consistently allocating small sums into equity and hybrid funds.
The number of mutual fund folios has also soared to over 18 crore, with most new investors coming from Tier-II and Tier-III cities, reflecting the success of digital outreach, fintech platforms, and investor education campaigns.

Why Are Investors Moving Away from Bank Deposits?
There are several reasons behind the migration of household savings from bank deposits to mutual funds:
Low interest rates on bank FDs: Traditional fixed deposits have offered real returns barely above inflation, especially after tax, making them unattractive for long-term wealth creation.
Higher returns from equity mutual funds: Over the past decade, equity mutual funds have delivered annualized returns of 10–14%, outperforming most fixed-income products.
Ease of investment through digital platforms: Fintech apps and mutual fund aggregators have simplified onboarding, KYC, and portfolio management, encouraging even novice investors to try mutual funds.
Tax efficiency: Mutual funds enjoy favorable tax treatment compared to bank FDs, particularly under capital gains rules.

Rise of Passive Funds and Debt Schemes
While equity funds continue to dominate headlines, there has been a parallel boom in passive investing and debt schemes. The Exchange Traded Fund (ETF) and index fund category now commands over ₹6 trillion in AUM, backed by government disinvestment programs, EPFO allocations, and rising retail interest.
Additionally, short-duration debt funds, liquid funds, and target maturity funds have attracted high-net-worth individuals (HNIs) and corporate treasuries seeking tax-efficient and flexible alternatives to fixed deposits.

The Institutional Push: Insurance, Pension, and EPFO
There has also been a rise in institutional involvement in mutual funds, especially from:
Life insurance companies allocating funds into debt and hybrid schemes.
Pension funds, including NPS and EPFO, increasing exposure to equity ETFs.
Corporate treasuries, deploying surplus funds into liquid and ultra-short duration funds for better yield management.
This institutional influx has added stability to inflows and diversified the investor base beyond retail.

Implications for Banks and Financial Markets
The surge in mutual fund AUM vis-à-vis bank deposits raises important macroeconomic and financial sector implications:
Liquidity Competition: Banks may face competition for household savings, especially if they fail to offer attractive deposit rates or innovative products.
Capital Market Deepening: A larger mutual fund industry facilitates long-term capital formation, enhances liquidity in equity and debt markets, and supports government borrowing programs.
Asset Diversification: Indian households are gradually becoming more diversified in their asset allocation, which reduces overall systemic risk and enhances financial resilience.
Policy Influence: With trillions of rupees under management, mutual funds are becoming a more influential voice in corporate governance, ESG adoption, and shareholder activism.

Risks to Watch: Market Volatility and Mis-selling
While the mutual fund industry is on a positive path, it also encounters significant challenges.
Market dependency: Since returns are market-linked, sharp corrections in equity or bond markets could cause panic redemptions, especially among first-time investors.
Regulatory scrutiny: SEBI has tightened disclosure norms to ensure transparency, but mis-selling and improper risk disclosures remain areas of concern.
Overvaluation risks: As retail money chases momentum stocks, fund managers face difficulty finding value picks without increasing portfolio risk.
Industry leaders are advocating for more investor education, robust risk assessment tools, and long-term investment orientation to sustain the industry’s credibility and resilience.

What Lies Ahead?
If current trends hold, experts project mutual fund AUM to cross ₹100 trillion by FY2027, possibly equaling half of India’s bank deposits. The lines between traditional banking and investment-led savings are increasingly blurring, giving rise to a more mature, digitally-enabled, and risk-aware financial ecosystem.
The real winner of this transformation is the Indian retail investor, who is now empowered with access to professionally managed portfolios, real-time transparency, and the potential for long-term wealth creation.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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VA Tech Wabag Projects Strong 15-20% Revenue growth

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Stock Jumps as KP Green Engineering Bags ₹52.31 Crore Orders Across Five Divisions
Banking, Equities, Market News - June 21, 2025

Aeroflex Industries jumps 29% in three days on Kacholia backing.

Aeroflex Industries jumps 29% in three days on Kacholia backing.

Specializing in stainless-steel flexible hoses, small-cap player Aeroflex Industries has seen its stock price soar by almost 29% over the past three sessions. The surge comes amid strong value buying, increasing investor interest, and the backing of well-known investor Ashish Kacholia, who has steadily increased his stake in the company. The sharp upswing has sparked discussions in market circles regarding the stock’s potential and the company’s growth prospects.

Strong Rally Driven by Heavy Volumes

Aeroflex Industries’ stock rallied approximately 11% on June 20, 2025, closing near ₹216–₹217 per share, its strongest level in nearly four months. This rally is not a one-day phenomenon. In the last three consecutive trading sessions, the stock has surged a remarkable 29%, fueled by unusually heavy trading volumes.

The BSE recorded trading volumes exceeding 87 lakh shares, significantly higher than the company’s two-week average of about 6.97 lakh shares. Such a sharp increase in volume suggests that aggressive buying interest is supporting the current uptrend. Analysts view this surge as a technically driven move, supported by strong market momentum.

Technical Breakout and Bullish Indicators

Technical charts have confirmed a breakout for Aeroflex Industries. The stock has convincingly moved above its key moving averages ranging from the 5-day to the 200-day averages. Additionally, the Relative Strength Index (RSI) has crossed 80, indicating a strong bullish sentiment, though now approaching overbought territory.

The Moving Average Convergence Divergence (MACD) indicator has also flashed a positive crossover, confirming the upward momentum. These signals, along with significant volumes, suggest that the current rally is well-supported by market participants.

Ashish Kacholia’s Growing Stake Boosts Confidence

One of the key reasons driving optimism around Aeroflex Industries is the involvement of ace investor Ashish Kacholia, who is known for spotting multi-bagger small-cap stocks. According to March 2025 shareholding records, Kacholia raised his stake in the company to 1.92%, compared to 1.8% in December 2024.

Kacholia’s steady accumulation has boosted confidence among retail and institutional investors alike. His presence is often seen as an endorsement of a company’s future potential, especially within the small-cap space.

Strong Post-IPO Performance

Aeroflex Industries made its stock market debut in August 2023, with its IPO priced at ₹197 per share. On the listing day, the stock saw an impressive 83% premium, closing significantly higher than its issue price. Since its debut, the stock has roughly doubled, reflecting investor faith in the company’s growth trajectory.

Despite some periods of price consolidation, the stock has managed to retain market interest due to its solid business model and steady financial growth.

Financial Performance and Growth

In the fourth quarter of FY25, Aeroflex Industries posted a 16% year-on-year increase in revenue, totaling ₹92 crore. Net profit for the same period grew by 12% year-on-year to approximately ₹11 crore. Aeroflex Industries also posted a 21% rise in EBITDA, which reached ₹19 crore, with the EBITDA margin improving to 20.7%.

The company reported a solid full-year performance in FY25, with revenue rising by 18% and net profit growing by 26% to ₹53 crore. This steady financial growth has provided a strong foundation for the recent rally and justified investor optimism.

Operational Expansion and New Product Launches

Aeroflex Industries is not only growing financially but also expanding operationally. In January 2025, the company commenced the production of Metal Bellows, a specialized product used in various industrial applications. The annual production capacity for Metal Bellows is now pegged at 120,000 units.

Furthermore, the company has expanded its stainless-steel hose production capacity from 15 million meters to 16.5 million meters per year. Its composite hose manufacturing capability has also doubled from three lines to six lines, indicating the company’s readiness to meet growing market demand.

Valuation and Market Metrics

The company currently has an estimated market capitalization of approximately ₹2,700 crore. Its price-to-earnings (P/E) ratio ranges between 48x to 53x, which is relatively high, reflecting the market’s growth expectations. The price-to-book (P/B) ratio stands around 8.5x, and the stock has exhibited high volatility, with a beta close to 1.6.

While valuations appear stretched, the company’s growth trajectory, operational expansion, and high-profile investor backing seem to justify the premium at this stage.

Conclusion

The recent rally in Aeroflex Industries highlights a powerful combination of technical momentum, strong financial performance, and investor backing from seasoned market participants like Ashish Kacholia. The company’s proactive expansion efforts, new product offerings, and consistent earnings growth have further strengthened investor conviction.

As the stock continues to attract attention, particularly from value and momentum investors, Aeroflex Industries appears well-positioned to maintain its upward momentum in the near term. However, given the recent sharp rise, market participants may watch for potential consolidation before the next leg of the rally unfolds.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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B.R. Goyal Infra Shares Rise 7% After New Sewer Project Win

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ESAF Small Finance Bank Shares Surge Over 11% in Largest Intraday Gain in 16 Months
Banking - June 20, 2025

ESAF Small Finance Bank Shares Surge Over 11% in Largest Intraday Gain in 16 Months

ESAF Small Finance Bank Shares Surge Over 11% in Largest Intraday Gain in 16 Months

On June 19, 2025, ESAF Small Finance Bank (SFB) experienced a sharp surge in its stock price, marking its most significant intraday gain in the past 16 months. The stock climbed over 11% during the trading session, driven by strategic decisions aimed at cleaning up the bank’s balance sheet and reducing non-performing assets (NPAs). This positive development sparked strong investor interest and sent ESAF’s shares soaring.

Strategic Move to Offload Stressed Assets

The primary catalyst for this impressive rally was the bank’s announcement regarding the sale of a substantial pool of stressed loans to an Asset Reconstruction Company (ARC). ESAF’s Board of Directors approved the sale of stressed assets worth approximately ₹735 crore, which includes ₹362 crore in non-performing assets and another ₹372 crore in technically written-off accounts.

Significantly, the bank had already made provisions covering nearly 90% of these stressed assets, minimizing any additional impact on its balance sheet. By offloading these loans, ESAF is taking an important step toward improving its asset quality and streamlining its financials.

Investor Confidence on the Rise

Investors responded positively to this decisive move. The stock saw high trading volumes, reaching an intraday peak of around ₹34 per share, before closing the day with gains of nearly 9%. The sharp rise came after ESAF shares had been under pressure in recent months, declining roughly 21% year-to-date.

The sudden turnaround indicates growing market confidence in the bank’s commitment to improving its financial health. The robust trading activity, coupled with technical indicators suggesting more room for growth, added to the optimism surrounding the stock.

Key Financial Background

Despite the favorable market reaction, ESAF Small Finance Bank reported a net loss of ₹183 crore for the March 2025 quarter, a steep drop from the ₹43 crore profit achieved in the same quarter last year. The bank’s operating income also fell by about 10.8%, from approximately ₹1,002 crore to around ₹893 crore.

A key factor contributing to the loss was higher provisions and write-offs linked to stress in its microfinance portfolio. The provisions for the quarter spiked to approximately ₹332 crore. Nonetheless, ESAF maintained a net interest margin (NIM) of around 8.1% and a manageable net NPA ratio of 2.9%, reflecting its underlying operational strength despite temporary setbacks.

Focus on Retail and Secured Lending

ESAF has been gradually shifting its lending strategy from microfinance-heavy exposure to a more balanced portfolio with greater emphasis on secured and retail loans. This transition is seen as a strategic effort to mitigate risks and stabilize long-term growth.

The sale of bad loans aligns with this shift, allowing the bank to free up capital, clean its books, and redirect resources toward safer, revenue-generating assets. Market analysts believe this strategic realignment positions ESAF to achieve healthier margins and more sustainable growth in the coming quarters.

Market Outlook and Analyst Perspective

The bank’s proactive approach to handling its stressed assets has impressed both investors and analysts. Market participants see this as an early indication that ESAF is taking decisive action to strengthen its financial position and regain profitability.

While the Q4 results reflect lingering challenges, the asset sale demonstrates that the bank is serious about resolving its NPA issues. As ESAF continues to realign its loan book and focus on growth areas such as retail and secured lending, analysts anticipate improved financial stability and a potential return to profitability.

Additionally, the strong trading volumes and positive technical signals suggest the stock may continue its upward trajectory in the near term. Investors are now closely monitoring the bank’s subsequent performance to confirm whether this rally is sustainable.

Conclusion

The 11% intraday jump in ESAF Small Finance Bank’s shares reflects fresh investor confidence after the bank’s strategic move to offload a significant amount of stressed assets and strengthen its balance sheet. With a high provision coverage and a shift towards safer lending practices, ESAF is taking the necessary steps to improve its financial health and operational efficiency.

The market’s favorable response to these developments indicates optimism about the bank’s future growth and stability. Going forward, ESAF’s ability to sustain this momentum will depend on its execution of the revised lending strategy, its capacity to contain NPAs, and its return to consistent profitability.

ESAF Small Finance Bank shares jumped over 11% following the announcement of stressed asset sales, reflecting stronger investor trust and a focus on improving the balance sheet.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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MTAR Technologies Secures Rs 90 Crore Annual Deal, Boosting Long-Term Growth

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SBI Lowers Interest on Savings and Term Deposits
Banking - June 16, 2025

SBI Lowers Interest on Savings and Term Deposits

SBI Lowers Interest on Savings and Term Deposits

New Rates Take Effect June 15, Including Scheme Updates

India’s largest public sector lender, the *State Bank of India (SBI), has officially revised its interest rates on both **savings accounts and fixed deposits, with the changes coming into force from June 15, 2025. This move comes shortly after the Reserve Bank of India’s repo rate cut, prompting banks to adjust their deposit and lending rates accordingly.

Savings Interest Rate Hits New Low

SBI has brought down the interest rate on its savings bank account to 2.5%, now marking the lowest rate the bank has ever offered. This cut will affect both **existing account holders and new customers, and reflects the ongoing trend of softening deposit returns* following the central bank’s monetary policy easing earlier in the month.

Fixed Deposit Rates Slashed Across Tenures

In tandem with the reduction in savings rates, SBI has also trimmed its *fixed deposit (FD) rates by 25 basis points* for deposits up to ₹3 crore. This adjustment applies across *all maturity periods, impacting both fresh deposits and those being renewed. The bank is aligning its interest payout structure with the broader **liquidity environment and funding cost management* objectives.

Amrit Vrishti Scheme Now at 6.85%

SBI has also introduced changes to the Amrit Vrishti special fixed deposit scheme, adjusting the offered return to 6.85%, effective June 15, 2025. This revised rate will be applicable to both senior citizens and super senior citizens, without any differential treatment. The update is part of SBI’s regular efforts to restructure its deposit schemes in line with shifting financial market conditions and evolving customer expectations.

Impact on SBI Customers

These rate changes are likely to affect depositors’ earnings, especially for those who rely heavily on interest income from traditional banking instruments. Investors may now find themselves looking toward  alternative investment vehicles such as debt mutual funds, equity-linked products, or government bonds to compensate for reduced returns. Reviewing and diversifying portfolios will be important steps for individuals aiming to preserve their financial stability in a low-rate environment

Summary:
SBI just hit the brakes on your savings with a fresh rate cut—bringing savings interest to an all-time low and trimming FDs across the board. Even the once-glamorous Amrit Vrishti scheme isn’t spared, now capped at 6.85% for seniors. Translation? If you’re counting on bank interest to grow your money, it might be time to get a little more creative with your portfolio. Safe is fine, but smart is better.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Indian Rupee Trails Asian Currencies

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