Author: Rasmita Jena

RBI Deputy Governor Swaminathan J recently shared that banks should create credit plans by first listening to the needs of local communities. Speaking to lead district managers in Maharashtra, he emphasized that understanding the priorities of people in different areas helps banks better meet their funding needs.

The Lead Bank Scheme (LBS), started in 1969, was designed to help banks and the government work together. Swaminathan stated that plans should be based on real data gathered from local surveys instead of just theories. This hands-on approach helps identify where money is needed the most and ensures that loan plans fit local needs.

He pointed out that around half of the Self-Help Groups (SHGs) still don’t get formal loans, and many small farmers are also unable to access bank funds. Businesses, especially those run by women, are another group that often miss out on financial help. Thus, by combining data analysis with real-world experience, banks can better serve these groups with more effective credit plans.

Over the years, LBS has adapted to meet India’s changing needs, allowing banks and government agencies to improve access to banking services and provide essential funding to key areas.

On Tuesday, Indian stock markets gained strength, thanks to two big companies: HDFC Bank and Reliance Industries. Investors were excited by talks from U.S. Federal Reserve officials hinting at a possible 0.25% decrease in interest rates later this month.

The main index, S&P BSE Sensex, climbed by 597.67 points, or 0.74%, finishing at 80,845.75. The broader Nifty 50 index also did well, increasing by 181.10 points, or 0.75%, to close at 24,457.15.

High-weight bank stocks saw a 1% rise, especially with HDFC Bank gaining 1.2%. Public sector banks, including the State Bank of India, reported increases between 2% and 3.3%. Reliance Industries, which has already risen 3% in the past two days, added another 1.2% on Tuesday.

Expert Opinions
Rupak De, a Senior Technical Analyst from LKP Securities, explained that the Nifty index showed bullish signs by moving above a key Fibonacci level. This suggests a potential rise in stock prices. He added that as long as the index stays above 24,400 points, there could be chances for it to reach 24,600–24,700 points. If it falls below 24,400, we might see a drop towards 24,150 points.

Global Markets
In global news, stocks around the world mostly rose on Tuesday, influenced by strong tech performances in the U.S. Hong Kong’s Hang Seng index increased by 1.0%, reaching 19,746.32, and Japan’s tech-heavy Nikkei jumped by 1.91%. This week will include important updates about job numbers in the U.S., which could impact the decisions of the Federal Reserve regarding interest rates.

Forex Update
The Indian rupee ended the day stable at 84.6850 per U.S. dollar. It hit a record low recently due to a stronger U.S. dollar and a weak Chinese yuan. The dollar index, which measures the U.S. dollar against six other currencies, was down by 0.15%.

On Tuesday, Finance Minister Nirmala Sitharaman revealed new changes in banking laws designed to make banking better for everyone. These changes will be discussed in the Lok Sabha and include 19 important amendments to various banking laws, including the Reserve Bank of India Act and the Banking Regulation Act.

One major change will allow bank account holders to have up to four nominees, making it easier for families to manage accounts. The bill will also protect investors’ money by sending unclaimed dividends, shares, and bond interest to the Investor Education and Protection Fund (IEPF). This means individuals can get their money back if they have claims.

Sitharaman explained that these changes are necessary as banking has changed over time. The amendments aim to improve how banks are managed and keep customer interests safe.

Key points include:

– Better governance for banks and improved reporting to the Reserve Bank of India.
– More protection for depositors and investors.
– Improved quality of audits for public sector banks.
– Increase in the tenure of cooperative bank directors from 8 to 10 years, in line with new rules.
– Clearer rules about who can be a director in banks, raising the financial limit from Rs 5 lakh to Rs 2 crore, which hasn’t changed in almost 60 years.
– Cooperative banks will have the new rules applying only to their banking activities.
– Directors of Central Cooperative Banks will now be able to serve on the boards of State Cooperative Banks.
– Banks will have more flexibility in deciding how much to pay their auditors.
– Changes will also set new reporting dates for banks, making it easier for them to comply with rules.

These amendments were first mentioned in the 2023-24 Budget speech, showing the government’s commitment to better banking services for everyone.

The Russian government has given the go-ahead for the local company VG Invest to buy the assets of Danish brewer Carlsberg in Russia for 34 billion roubles, which is about $320.75 million. This deal came after Russia took control of Carlsberg’s share in Baltika Breweries back in July 2023. Carlsberg’s CEO, Jacob Aarup-Andersen, said that the company had its business taken from them.

Recently, Carlsberg’s assets were no longer managed by the government. In the new deal, some of Baltika’s shares in businesses in Azerbaijan and Kazakhstan will be handed over back to Carlsberg. In exchange, Carlsberg will transfer a brewery in Russia called Hoppy Union.

It’s important to note that Carlsberg is selling its assets at a much lower price than their actual worth. Carlsberg stated in February 2023 that their assets in Russia were valued at 7.52 billion Danish crowns (around $1.06 billion) by the end of 2022.

Since Russia faced Western sanctions for its actions in Ukraine, it has been making it harder for foreign companies to exit. The government has required these companies to sell at lower prices than they would normally get, and they also impose an extra fee on the sale, often referred to as an “exit tax.”

VG Invest was only started in August and is run by Yegor Guselnikov, who is also a vice president at Baltika. He co-owns another company, Brewery Development Centre (BDC), with Alexander Tolmachev, who previously worked with Heineken in Russia.

This sale of Carlsberg’s assets to VG Invest follows a similar situation with the French company Danone, whose assets were also sold off to a businessman with close ties to the Russian government.

Today, Marico Ltd. shares were trading at Rs 639.95, which is 1.05% lower than yesterday’s closing price of Rs 646.80. This drop comes while the overall market, represented by the BSE Sensex, dropped by 655.29 points to reach 80,903.37.

Marico’s shares have seen a high of Rs 719.80 and a low of Rs 486.75 over the past year. So far today, 11,896 shares were traded, bringing in about Rs 0.77 crore.

Looking at the company’s value, the shares are trading at a Price-to-Earnings (P/E) ratio of 52.24, which means investors expect the company to grow in the future. They also have a Price-to-Book (P/B) ratio of 16.73. This means people are paying this price even if the company is not expected to grow fast.

The stock’s Beta value is 0.7960, which means it is less volatile than the market.

In terms of ownership, as of September 30, 2024, company promoters own 59.2% of Marico, Foreign Institutional Investors (FIIs) hold 24.87%, and Domestic Institutional Investors (DIIs) have 4.92%.

On the technical side, the Relative Strength Index (RSI) is 53.45. RSI is a number that helps traders see if a stock is overbought (above 70) or oversold (below 30). However, it’s important to look at other factors too; just one number isn’t enough to make buying or selling decisions.