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RBI Asks Mahindra Finance Not To Use Outside Agents After Loan Collectors Kill Pregnant Woman

Mahindra & Mahindra Financial Services Ltd. was directed by the Reserve Bank of India to no longer use outside recovery agents. This comes after a pregnant woman was mowed down in Jharkhand by a recovery agent of the company.

RBI instructed the finance company Mahindra & Mahindra Financial Services Ltd. to immediately stop carrying out any recovery through outsourcing agents. This was in response to the incident in Jharkhand’s Hazaribagh where a pregnant woman was allegedly mowed down under the wheels of a tractor by a recovery agent of the finance company.
Local police of Hazaribagh told media outlets that the officials of the finance company did not inform the local police station before going to the residence of the victim for the recovery of the tractor.

In a statement, RBI said, “directed Mahindra & Mahindra Financial Services Ltd. (MMFSL), Mumbai, to immediately cease carrying out any recovery or repossession activity through outsourcing arrangements, till further orders.” “However, the said NBFC may continue to carry out recovery or repossession activities, through its own employees,” it added.
RBI said, this action is based on certain material supervisory concerns observed in the said NBFC, with regard to the management of its outsourcing activities.

The woman who was killed by Mahindra’s recovery agent was the daughter of a specially-abled farmer. The recovery agent refused to listen to the farmer’s plea and kept on driving the tractor when his pregnant daughter ran after the vehicle and was crushed to death under its wheels. She was three months pregnant.

Later, Mahindra Group’s CEO and MD Anish Shah said, “we will investigate this incident from all aspects and will also undertake an examination of the practice of using third-party collection agencies that has been in existence.”

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High inflation in sight, Fed to signal more rate hikes ahead

Washington: Last month, when Federal Reserve Chair Jerome Powell spoke at an economic conference in Jackson Hole, Wyoming, he issued a blunt warning: The Feds drive to curb inflation by aggressively raising interest rates, he said, would bring some pain” for Americans.

When the Fed ends its latest meeting on Wednesday and Powell holds a news conference, Americans will likely get a better idea of how much pain could be in store. The central bank is expected to raise its key short-term rate by substantial three-quarters of a point for the third consecutive time. Another hike that large would boost its benchmark rate which affects many consumer and business loans to a range of 3 percent to 3.25 percent, the highest level in 14 years.

Many Fed watchers, though, will be paying particular attention to Powell’s words at a news conference afterward.
His remarks will be parsed for any hint of whether the Fed expects to moderate its rate hikes in the coming months or instead to continue tightening credit significantly until it’s convinced that inflation is on its way down.

In a further sign of the Feds deepening concern about inflation, it will also likely signal on Wednesday that it plans to raise rates much higher by year’s end than it had forecast three months ago and to keep them higher for longer. Economists expect Fed officials to forecast that their key rate could go as high as 4 percent before the new year. They’re also likely to signal additional hikes in 2023, perhaps to as high as roughly 4.5 percent.

Short-term rates at that level would make a recession likelier next year by sharply raising the costs of mortgages, car loans, and business loans. The Fed intends those higher borrowing costs to slow growth by cooling a still-robust job market to cap wage growth and other inflation pressures.
Yet the risk is growing that the Fed may weaken the economy so much as to cause a downturn that would produce heavy job losses.
The economy hasnt seen rates as high as the Fed is projecting since before the 2008 financial crisis.
Last week, the average fixed mortgage rate topped 6 per cent, its highest point in 14 years. Credit card borrowing costs have reached their highest level since 1996, according to
Powell and other Fed officials still say the Feds goal is to achieve a soft landing”, by which they would slow the economy enough to tame inflation but not so much as to trigger a recession.
By last week, though, that goal appeared further out of reach after the government reported that inflation over the past year was a painful 8.3 percent.
Even worse, so-called core prices, which exclude volatile food and energy costs, rose much faster than expected.
The inflation report also documented just how broadly inflation has spread through the economy, complicating the Feds task. Inflation now appears increasingly fuelled by higher wages and by consumers steady desire to spend and less by the supply shortages that had bedeviled the economy during the pandemic recession.

Theyre going try to avoid recession, said William Dudley, formerly the president of the Federal Reserve Bank of New York. The problem is that the room to do that is virtually non-existent at this point. The Feds rapid rate hikes mirror steps that other major central banks are taking, contributing to concerns about a potential global recession.
The European Central Bank last week raised its benchmark rate by three-quarters of a percentage point. The Bank of England, the Reserve Bank of Australia, and the Bank of Canada have all carried out hefty rate increases in recent weeks.
And in China, the world’s second-largest economy, growth is already suffering from the government’s repeated COVID lockdowns. If recession sweeps through most large economies, that could derail the US economy, too.

At his news conference on Wednesday, Powell isn’t likely to drop any hints that the central bank will ease up on its credit tightening campaign. Most economists expect the Fed to stop raising rates in early 2023. But for now, they expect Powell to reinforce his hard-line anti-inflation stance. It’s going to end up being a hard landing, said Kathy Bostjancic, an economist at Oxford Economics.

He’s not going to say that,” Bostjancic said. But, referring to the most recent Fed meeting in July, when Powell raised hopes for an eventual pullback on rate hikes, she added: “He also wants to make sure that the markets don’t come away and rally. That’s what happened last time. Indeed, investors responded then by bidding up stock prices and buying bonds, which lowered rates on securities like the benchmark the 10-year Treasury. Higher stock prices and lower bond yields generally boost the economy the opposite of what the Fed wants.

The central bank has already engaged in the fastest series of rate hikes since the early 1980s. Yet some economists and some Fed officials argue that they have yet to raise rates to a level that would actually restrict borrowing and spending and slow growth. Loretta Mester, president of the Cleveland Federal Reserve Bank, and one of the 12 officials who will vote on the Feds decision on Wednesday said she thinks it will be necessary to raise the Feds rate to somewhat above 4 percent by early next year and hold it there”.

I do not anticipate the Fed cutting rates next year, Mester added, dispelling the expectations of many investors on Wall Street who had hoped for such a reversal. Comments like Mesters contributed to a sharp fall in stock prices last month that began after Powells stern anti-inflation speech at the conference in Jackson Hole.
Our responsibility to deliver price stability is unconditional, Powell said then a remark widely interpreted to mean that the Fed will fight inflation even if it requires deep job losses and a recession.

Many economists sound convinced that a recession and widespread layoffs will be necessary to slow rising prices.
Research published earlier this month under the auspices of the Brookings Institution concluded that unemployment might have to go as high as 7.5 percent to get inflation back to the Feds 2 percent target. Only a downturn that harsh would reduce wage growth and consumer spending enough to cool inflation, according to the paper by Johns Hopkins University economist Laurence Ball and two economists at the International Monetary Fund.

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Adani group to acquire 29.18% stake in NDTV

AMG Media Networks Limited (AMNL) to indirectly acquire a 29.18% stake in NDTV & launch

  • Vishvapradhan Commercial Private Limited (VCPL), a wholly owned subsidiary of AMG Media Networks Limited (AMNL), has exercised the rights to acquire 99.5% of the equity shares of RRPR Holding Private Limited, a promoter group company of NDTV.
  • It will trigger an open offer to acquire up to a 26% stake in NDTV in terms of SEBI’S Takeover Regulations.
  • NDTV has three leading national channels and a strong digital platform.
  • AMNL is a 100% subsidiary of Adani Enterprises Limited (AEL)

Adani’s AMNL’s wholly owned subsidiary VCPL holds warrants of RRPR Holding Private Limited (RRPR) entitling it to convert them into a 99.99% stake in RRPR. VCPL has exercised warrants to acquire a 99.5% stake in RRPR. Such acquisition will result in VCPL acquiring control of RRPR. RRPR is a promoter group company of NDTV (NDTV, BSE: 532529) and holds a 29.18% stake in NDTV. VCPL, along with AMNL & AEL (persons acting in concert), will launch an open offer to acquire up to 26% stake in NDTV, in compliance with the requirements of the SEBI’s (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.

NDTV is a leading media house that has pioneered the delivery of credible news for over three decades. The company operates three national news channels – NDTV 24×7, NDTV India, and NDTV Profit. It also has a strong online presence and remains one of the most followed news handles on social media with more than 35 million followers across various platforms.

NDTV recorded a Revenue of INR 421 Cr with an EBITDA of INR 123 Cr and a Net Profit of INR 85 Cr in FY22 with negligible debt. “This acquisition is a significant milestone in the journey of AMNL’s goal to pave the path of new age media across platforms” stated Mr. Sanjay Pugalia, CEO, AMG Media Networks Limited. “AMNL seeks to empower Indian citizens, consumers, and those interested in India, with information and knowledge. With its leading position in news and its strong and diverse reach across genres and geographies, NDTV is the most suitable broadcast and digital platform to deliver on our vision. We look forward to strengthening NDTV’s leadership in news delivery.”

AMG Media Networks Limited (AMNL)

AMNL, a wholly owned subsidiary of AEL, houses the media business of the Adani Group. The company was recently incorporated to set up a credible next-generation media platform with an emphasis on digital and broadcast segments, amongst others. VCPL, which was recently acquired by AMNL, is its wholly owned subsidiary.

Adani Group Stocks 1 Year Returns

Adani Power 436%
Adani Transmission 226%
Adani Total Gas 221%
Adani Wilmar* 176%
Adani Green 160%
Adani Enterprises 121%
Adani Ports 27%

*Listed on Feb 8, 2022


Adani Ports Q1 net profit drops 17 pc to ₹1,091.56 cr

Adani Ports Special Economic Zone (APSEZ). Monday Reports Consolidated net profits decreased 16.86% ₹1,091.56 Million for the first quarter of the financial year, despite record cargo volumes. The Country’s The largest integrated logistics company reported a net profit consolidated ₹According According to a regulatory filing 1,312.9 Million were spent during the same period last fiscal year.

Its Total Income during the June quarter rose to ₹5.099.25 million as against ₹5.073 crores in Q1 FY22. The company’s total expenses also increased. ₹4,174.24 Crores ₹3,660.28 billion crores were previously APSEZ reported that its highest quarterly cargo was 91 MMT (million metric tonnes).

The Dry cargo led the growth in cargo volume, with an 11.2% increase. Containers followed closely (3.2%) and liquids including crude (5.6%). The automobile segment saw a 120% increase in volume, even though it was a small part of overall volumes. Both The Mundra Both non-Mundra Similar Ports showed the highest growth rates. The non-Mundra The Company stated that ports were responsible for 53% of the cargo basket.

In A statement Karan AdaniAPSEZ chief executive officer, and director-whole the time Jeremy Reilly, said: “Q1 FY23 has been the strongest quarter in APSEZ’s history, with a record cargo volume and highest ever quarterly EBITDA.”

Adani further the company’s strong performance was maintained. July We 100 MMT cargo throughput was recorded in the first 99 Days of FY23. “We are confident of achieving our full-year guidance of 350-360 MMT cargo volumes and EBITDA of ₹12,200-12,600 crore,” He added.

According To The company statement Adani Logistics An increase of 31 percent in rail volume, to 111.136 TEUs (twenty-foot equivalent unit), was observed. There was also an increase of 54% in terminal volume at 99.217TEUs. Adani Ports Gadot Group consortium (70/30 partnership), won the bid for 100% of the stake in Haifa Port Company A bid value of USD 1.13 trillion

“We anticipate the deal to be 75 percent debt-financed, and APSEZ’s equity contribution to be around ₹1600 crore,” APSEZ officials stated that the deal marked APSEZ’s entry into a developed market. Suez CanalThe This will allow for the expansion of the company’s footprint. Europe.

APSEZ stated that liquid cargo could also be available at Krishnapatnam Port A decrease in sunflower oil imports was a major factor. Ukraine Due To the ongoing conflict.

The Container Terminal at Gangavaram Port By the end of next week, 5 MMT LNG terminals will be in operation. Dhamra Will DecAdded APSEZ available at the end It Construction It began on 4.5 Million Square Feet This is Warehouse Capacity in Four Locations (Mundra, Moriya, Ranoli Palwal(), Two agri-container terminals in Bihar (Darbhanga And Samastipur).

Revenue From At ₹360 crores, an increase of 34%, can be attributed to the improved container and terminal traffic. APSEZ stated that it also acquired a 100% stake in Ocean Sparkle Ltd (OSL). OSL is expected to generate revenue in the range of ₹633 Crores EBITDA and EBITDA ₹The Current financial years saw 355 million. APSEZ is part of the global diversified Adani Group.

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