Business
Adani’s Sri Lanka journey continues with port, cement projects
“The recent exit of Adani from the RE project will not impact investors confidence in the island nation, as the new government had already factored in such an incident, when it took the policy decision,” Aruna Kulatunga, President of the EOI Renewable Energy Project Promoters Association, Sri Lanka, said. The association is a point of […]
“The recent exit of Adani from the RE project will not impact investors confidence in the island nation, as the new government had already factored in such an incident, when it took the policy decision,” Aruna Kulatunga, President of the EOI Renewable Energy Project Promoters Association, Sri Lanka, said. The association is a point of contact between the Sri Lankan government and investors. “Since the new government came to power in Sri Lanka, the likelihood of Adani exiting the project was factored in when taking stock of the investment strategy, as the tariff remained a contentious issue,” he told businessline, adding that “now that the government here has informed the court, chances of reviving the talks have narrowed down.”Though there is no official communication yet, two projects – NTPC’s green energy project and Adani’s port project – are being considered at the bureaucratic level for the PM to inaugurate during his visit.
Also read: Adani Group eyes $500-700 m cables & wires segment foray
However, a cent down is also negotiable, according to investors here, he said, adding that some also see it as a face-saving move for the government. Any climb down from what Adani was offering — a tariff of 8 cents a unit — can be a face-saving measure for the government, he said..Meanwhile, on the electricity policy front, Sri Lanka has been seeking stakeholders’ comments to review and revise the existing policy, which also includes the issue of tariffs. “A concern here is that the proposal suggests that the Minister for Energy has the power to decide on the tariff, which may not be acceptable to investors,” he said.Intra-regional energy trade is good for countries in this region, he said. On whether the RE project exit could be discussed with the Indian Prime Minister is there, sources said, “it could be. Though there is no official communication about it.”The Colombo West International Terminal (CWIT), which was initiated in September 2021 when Adani Ports signed an agreement with the Sri Lanka Ports Authority and Sri Lankan conglomerate John Keells Holdings, pledging over 0 million to expand the capabilities of Colombo Port, is expected to be inaugurated when Indian Prime Minister, Narendra Modi visits the Island nation shortly.
Business
Shalini Warrier resigns as Federal Bank ED
Federal Bank Executive Director Shalini Warrier has tendered resignation from her post to pursue potential “entrepreneurship journey” going ahead, according to an exchange notice.
Published on April 4, 2025 Warrier joined Federal Bank as COO in 2015 and was elevated to the position of ED in 2020. Formerly associated with Standard Chartered, Warrier oversaw customer experience enhancement, operational efficiency via automation and digitalisation at Federal Bank.
Business
Spinny raises $131 million in Accel-led round amid booming used-car market
Fresh Funding Fuels Spinny’s Growth in the Thriving Pre-Owned Car Sector Used-car marketplace Spinny has raised 1 million in a funding round led by Accel Leaders Fund, according to news reports. This fundraising comes at a time when the used-car market, which recorded 4.6 million sales in 2023, is projected to reach 10.8 million by […]
Fresh Funding Fuels Spinny’s Growth in the Thriving Pre-Owned Car Sector
Used-car marketplace Spinny has raised 1 million in a funding round led by Accel Leaders Fund, according to news reports. This fundraising comes at a time when the used-car market, which recorded 4.6 million sales in 2023, is projected to reach 10.8 million by 2030, growing at a compound annual rate of 13 per cent, according to a CARS24 report.
The expansion is driven by rising demand across both urban centres and smaller townsThe fundraising comes amid increased activity in the used-car marketplace, following Droom’s recent million funding round, which, according to reports, was co-led by India Accelerator and Finvolve, as the company prepares for an IPO.
Founded in 2015, the online used-marketplace, the company previously raised 8 million in its Series D funding round in 2021 from new and existing investors, led by Tiger Global. Another new investor in the round is New York-based Avenir Growth.
Business
Banking business model under challenge if deposit tightness persists: Uday Kotak
Leading Indian banks are offering deposit rates which are higher than home loan rates, resulting in a negative spread and if deposit mobilisation challenges remain, the banking system business model will face a challenge, Kotak Mahindra Bank’s founder Uday Kotak said today. HDFC Bank, too, has been raising funds via CDs to lower its credit-deposit
Leading Indian banks are offering deposit rates which are higher than home loan rates, resulting in a negative spread and if deposit mobilisation challenges remain, the banking system business model will face a challenge, Kotak Mahindra Bank’s founder Uday Kotak said today. HDFC Bank, too, has been raising funds via CDs to lower its credit-deposit ratio which got elevated after the merger of erstwhile Housing Development Finance Corp with HDFC BankWhile customers are parking funds in higher-yielding fixed deposits or other equity market instruments, the efficiencies in corporate- and government-backed companies have led to a fall in banks’ CASA ratio.
Rush for higher cost deposits
Banks have been facing a deposit mobilisation challenge, especially in acquiring low-cost current account and savings account (CASA), over the last two-three years. News agency Reuters reported that India’s IndusInd Bank garnered billion in higher-cost bulk deposits in March, its biggest monthly haul in at least two years, as the lender shored up its funding base after disclosing accounting lapses. It paid 7.90 per cent on its one-year CDs this month, 20 basis points higher than what it had paid for similar deposits in February, the data showed. “Excluding opex.
Photo by Ravi Roshan: Pexels.com
Low cost retail deposits (CASA non wholesale) show muted growth across the system. Yet, banks are issuing home loans at 8.5 per cent floating rate. Borrow at 9 per cent and lend at 8.5! -0.5 per cent spread. And repo rates likely to drop.
What about the opex/ credit costs? If the deposit tightness persists it is a challenge to the banking business model” he added.“Leading banks are taking 1 year wholesale deposits at ~8 per cent. Translates to loaded marginal deposit cost of 9 per cent+ after CRR (0 interest), SLR, deposit insurance, priority sector,” he said.
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Shalini Warrier resigns as Federal Bank ED
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