Business News

Tata Steel has reaffirmed that it will continue to proceed with its Great British Pound (GBP) 1.25 billion investment to build a state-of-the-art Electric Arc Furnace for steel production in Port Talbot in collaboration with the UK government.Further, it also informed that as announced on January 19 this year, it will shut down its existing two Blast Furnaces, i.e., No. 4 and No. 5 by end of June and end of September respectively. "Following its 19 January 2024 proposal to restructure the UK business and 7 months of formal and informal discussions with the UK Steel Committee (the multi-union forum) and its advisers, Tata Steel has today announced its decision, paving the way for a major transformation of Britain’s largest steel plant at Port Talbot, in south Wales," the company said in a media release on Thursday.Calling this as the 'most viable' option, Tata Steel chief T V Narendran said that the company's proposal secures a long-term future for the business and preserves the majority of jobs in the UK as against the unions' 'unaffordable plan'. "We will continue to work with the trade unions over the following 2 weeks to agree a memorandum of understanding on the future of the UK business and the impact on our people," he added.Tata Steel expects to order equipment for the electric arc furnace by September 2024, and based on the current permit timelines, start construction on the project by August 2025. In addition, Tata Steel UK has accepted an updated and revised connection offer from National Grid, the UK's power infrastructure provider. The company has also said that in the next few days, it will finalise the necessary paperwork to ensure that it will have the necessary power infrastructure in place to commission the electric arc furnace on time by the end of 2027.Tata Steel has also said that following the closure of Blast Furnace No.4, the remaining heavy end assets will wind down, and the Continuous Annealing Processing Line will close in March 2025.Moreover, Tata Steel UK is also going to provide additional support to around 2,800 affected employees.This includes helping them with job searches; supporting facilities for training & upskilling activities; finance for small and medium-sized businesses through UK Steel Enterprise regeneration and job creation scheme. The company has also committed a one-time £20 million to the Transition Board (out of its total £100 million).

IndusInd Bank reported 15% growth in net profit to Rs2,349 crore for the quarter ended March 31, 2024 compared to ₹2,043 crores during corresponding quarter of previous year on account of increase in loan book and higher yield on advances. For the full financial year, the bank reported a net profit of Rs 8,977 crores for the year ended March 31, 2024 up by 21% over the previous year at ₹7,443 crores.“One is the growth in the asset book (that contributed to the profits) and also the yield on advances. “ said Sumant Kathpalia, managing director & CEO, IndusInd Bank. “ We could also bear the cost of deposit increase and also sustainability of net interest margins (NIM)”The bank's interest income rose 17.8 percent to Rs 12198 crores during the quarter compared to Rs 10020 crore in the same period a year ago. Other income, essentially comprising profits on sale of investments or treasury income rose 16.5 percent to 2508 crore during the quarter. Interest expenses rose 21 percent to Rs 12198 crore during the quarter compared to Rs 10020 crore in the same period a year ago. Net Interest Income for the quarter was reported at ₹5,376 crore, growth by 15% year-on-year.Net interest margin, a ratio of a bank’s interest earning on loans to the interest it is paying on deposits and an indicator of banks' profitability and growth was 4.26 percent for the March quarter against 4.28% for March 2023 quarter. Gross bad loans or non performing assets were at 1.92% of gross advances as on March 31, 2024, as against 1.98% as on December 31, 2023.Provisions and contingencies for the quarter ended March 31, 2024, were 13 percent lower at Rs 3,885 crores as compared to ₹4,487 crores for the corresponding quarter of previous yearThe bank declared a dividend of Rs 16.5 per share for the year ended March 2023. The bank is looking at a 18 percent growth in loans for the current fiscal and a mix of 55% retail and 45% corporate loans according to CEO Kathpalia

Mumbai: Kotak Mahindra Bank, India’s third-biggest private lender by market value, may see a moderation in deposit growth and a marginal drop in the share of low-cost deposits in FY25 as it shifts focus on fixing its IT systems following regulatory curbs, said banking analysts. The stock was both the biggest loser and most actively traded in the country Thursday.On Wednesday evening, the Reserve Bank of India (RBI) barred the Uday Kotak-promoted lender from onboarding new customers through its online and mobile banking channels and directed them to stop issuing new credit cards. The regulator cited “serious deficiencies and non-compliances” and “continued failure on the part of the bank to address these concerns in a comprehensive and timely manner.”“The RBI restrictions will impact the bank’s ability to acquire new savings account customers until the ban is lifted because a significant number of new customer acquisition was done through its digital banking platform- Kotak811,” a banking analyst said.For instance, 72% of the new savings accounts in FY23 — the latest available data — were acquired through Kotak-811. As many as 17.5 million savings account customers were onboarded through the Kotak-811 platform, as of March 2023. 109607520“Secondly, new affluent walk-in customers will want a credit card as part of their onboarding kit, but since the bank is restricted from issuing them until the ban is lifted, it could be a deterrent,” added the analyst.The stock, which lost nearly 11% Thursday, saw active cash trades of about 11,000 crore. Axis Bank, which was the next most traded on the Nifty, didn’t generate half the volumes that Kotak Mahindra did.The ban comes at a time when mobilising deposits, particularly low-cost deposits, has emerged as one of the biggest challenges for most banks.Since the bank’s focus has been onboarding customers through online channels, it has slowed the pace of adding branches. According to a Macquarie report, it has added just 350 branches in four years. HDFC Bank, on the other hand, added 900 branches in just one year.In a letter to employees to address their concerns, the newly appointed MD & CEO Ashok Vaswani reassured that the bank is diligently working toward resolving the issues raised by the regulator. “The exponential growth in business through our digital channels has necessitated a completely different level of technology infrastructure, which we have been steadfastly building,” he stressed in the letter.In a separate FAQ (frequently asked question), KVS Manian, joint managing director of Kotak Mahindra Bank, said services to existing Kotak811 customers will not be impacted.Kotak Mahindra Bank's current and savings account deposits fell to 47.7% in the third quarter ending December 2023 from 53.3% a year ago. A report by Emkay said they are likely to be at 478% for the fourth quarter ending March 2024 and fall further to 47.2% in FY25. The bank is scheduled to announce its fourth-quarter results on May 4. Similarly, the net interest margin stood at 5.22% on December 31, 2023, but it may fall below 5% in FY25, Emkay said.

The Indian market closed in the green for the fifth consecutive day on Thursday, tracking positive global cues.The S&P BSE Sensex rallied nearly 500 points, while the Nifty50 closed above 22,500 levels.Sectorally, buying was seen in auto, power, healthcare, metals, and public sector stocks, while selling was witnessed in realty and consumer durable space.Stocks that were in focus include names like State Bank of India, which rose more than 5% to hit a fresh 52-week high, Eicher Motors, which rose over 1%, and Aditya Birla Capital, which closed with gains of over 6% to hit a fresh 52-week high on Thursday.We have collated a list of three stocks that either hit a fresh 52-week high, or an all-time high or saw a volume or a price breakout.We spoke to an analyst on how one should look at these stocks the next trading day entirely from an educational point of view: Analyst: Priyanka Limaye, CA, CMTSBI: LTP: Rs 812 | Target: Rs 850-860This stock had been in a consolidation zone of Rs 720-790 for almost two months now and on Thursday it gave a channel breakout with good volumes.With the Daily Relative Strength Index (RSI) on the verge of entering an extremely bullish zone, this stock can touch the Rs 850-860 zone in the short term.On the downside, Rs 720-740 will act as important support levels in the short term.109599148Eicher Motors As per my analysis given on March 20, 2024, the stock touched its target of Rs 4,600 precisely (CMP: 4630) on Thursday.Now, with Daily RSI above 75+ and comparatively good volumes, this stock can eventually test Rs 4,850 and Rs 5,200 in the short to medium term once it sustains above Rs 4,600.On the downside, strong support is seen at Rs 4,200-4,000 levels.109599300Aditya Birla CapitalThis stock gave a Symmetrical Triangle breakout on April 2, 2024 with excellent volumes.There's a gap area at Rs 238 marked in September 2017 and its life high is marked at Rs 255.Now, it sustains above Rs 255, only then it will give a quick movement of 8-10% on the upside. Support zones for this stock will be at Rs 200-190.109599169(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of The Economic Times)

About 2.88 crore electors will vote and choose 14 MPs in half the constituencies in Karnataka on Friday, according to election commission data. Campaigning ended on Wednesday, with the BJP-JDS coalition and the Congress having given their best shot to improve on their tally over the 2019 outcome. Out of the total voters, around 1.44 crore are men, 1.43 crore are women, and 3,067 voters belong to the third gender. The election commission has set up 30,602 polling booths in these constituencies. A total of 1.40 lakh polling officers, 5,000 micro observers and 50,000 civil police, apart from 65 companies of CRPF and Reserved Armed Forces from other States have been deployed in these stations for the polls. With Karnataka seeing soaring temperatures in most parts of the state, people will be allowed to vote till 6 pm, and the booths will remain open till the last person votes. “The EC has issued guidelines on addressing the potential challenges posed by the heatwave and to ensure the safety and well-being of electors, especially senior citizens and persons with disabilities (PwD), as well as election personnel in the polling stations. Polling stations are equipped with adequate shade structures, such as tents, canopies of umbrellas, with provision for chairs, to protect voters from direct sunlight,” said Chief Electoral Officer for Karnataka Manoj Kumar Meena. Besides these, booths have been equipped with fans, adequate ventilation, as well as special medical kits to manage dehydration and sunstroke. “Trained ASHAs or ANMs will be deployed in the polling stations in coordination with the Health Department. One ambulance will be mapped to every 10-15 polling booths,” Meena said. Polling in the rest of the constituencies in the state will take place on May 7. Around 2.50 voters have registered there and the commission has set up 28,269 polling stations for them.

India is in talks with several countries seeking partnerships for technical help on lithium processing, said four sources familiar with the matter, to bolster its nascent lithium mining and electric vehicle industries and avoid relying on China. India's Ministry of Mines began discussions with Australia and the United States last year, said the four sources, two from India's government and two industry participants. The Indian government and some private companies have also sought help from Bolivia, Britain, Japan, and South Korea, said the sources, who did not wish to be identified as the discussions were not public. Executives from Russia's TENEX, part of state-owned nuclear energy company Rosatom, approached the Indian government and have held at least two meetings with Indian officials this year, offering lithium processing technology and the possibility of collaborating with Indian companies, said one of the sources, a senior government official with direct knowledge of the plans. The discussions illustrate efforts by India, the world's third-largest carbon emitter and oil importer, to develop a lithium mining industry that could provide the chemical feedstocks for batteries for its domestic electric vehicle (EV) industry which could help cut its greenhouse gas emissions and oil dependence. "India needs technology to process lithium and we are looking to collaborate with other countries which have some experience," said the senior government official. "We are aiming to be self-reliant and one of the ways is through partnerships." TENEX, Russia's Ministry of Industry and Trade and India's Ministry of Mines did not respond to emails from Reuters seeking comments. Russia's Rosatom declined to comment. New Delhi is in the process of auctioning its first mining rights to lithium blocks, which were discovered last year in the Jammu and Kashmir region and the states of Chhattisgarh. Companies including SoftBank-backed e-scooter maker Ola Electric, Shree Cement, state-run Coal India , miner Vedanta Ltd and Jindal Power are among those bidding for critical minerals blocks, which include lithium, with a shortlist expected by July. Winners will receive licences to explore and mine lithium, and will also be responsible for processing it as lithium concentrates or lithium chemicals for the battery industry. Some of the companies that have bid for the lithium mining rights have sought technical help from companies in other countries to set up refining plants, the sources said. Shree Cement is in talks with an Australian firm seeking technical assistance for a lithium refinery that would cost between $600 million and $700 million, a company source said, without giving the name. 'LONG AND BUMPY' Even with outside help, it will take a few years before India is ready to convert lithium ores into material for battery manufacturing, analysts said. "The path to commercialisation is likely to be long and bumpy, especially given that it typically takes anywhere between four to seven years from discovery to commercial production for lithium mines," said Ritabrata Ghosh, vice-president and sector head of corporate ratings at ICRA Ltd. India needs technical help in ore processing steps such as beneficiation to separate waste rock from ore, and hydrometallurgy, leaching, and pyrometallurgy for separating the metal from the ore, Ghosh said. In the absence of processing plants, Indian companies would likely ship lithium ores to China and bring the processed metal back to India, said Ganesh Sivamani, research associate at the Centre for Social and Economic Progress, a New Delhi-based think tank. Neighbour and rival China accounts for almost two-thirds of the world's lithium processing capacity. The government's top policy think-tank NITI Aayog has recommended incentives for setting up lithium processing plants. India's battery industry will require an annual 56,000 metric tons of lithium carbonate by 2030, according to NITI Aayog.