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The Indian <keyword id="22196321" type="General" weightage="20" keywordseo="credit-card-industry" source="keywords">credit card industry</keyword> is struggling to grow, as new issues slow down on a year-on-year (YoY) basis. Not only has the growth i.e. issuance of new credit cards slowed down, but lenders are also becoming increasingly cautious of the asset qualities, a recent report by Nomura showed. From 19% in July 2024, the growth in the <keyword id="6368202" type="General" weightage="20" keywordseo="credit-card" source="Orion">credit card</keyword> spendings came down to 13% in August 2024. The year-to-date (YTD) growth has also significantly declined in FY25, currently standing at 17%, markedly down from 28% in FY24. For the fifth consecutive month, the number of new credit cards added to the system remained well below the 1-million, or 10 lakh mark. Around 9.2 lakh credit cards were added during the month, a slight uptick from the 7.55 lakh cards that came into the system In July 2024. However, there is growth in this space nevertheless, with about 10.55 crore active credit cards at present, marking a 15.6% YoY increase. Even the annualised spend per card, or the average amount spent via an annual card during an year grew 1% YoY to Rs 1.87 lakh. But this was far less than the 7% growth annual spends via one credit card saw in FY24. Meanwhile, what continues to burgeon consistently is the outstanding amount on these credit cards, which ballooned to Rs 2.7 lakh crore in June 2024, up from Rs 2.6 lakh crore in March 2024, and around Rs 2 lakh crore in the year ago period. To put this in perspective, pre-pandemic, the total outstanding amount stood at Rs 87,686 crore, which marks a 24% CAGR in this amount, in just a span of 5 years. <h2>Large drops, slowdown to sustain</h2>Even the monthly expenditure per card dropped 2% YoY to Rs 16,000 in August, 2024. Subsequently, the transaction volume via credit cards also dipped to 1.6% in August, along with the total amount of <keyword id="21084888" type="General" weightage="100" keywordseo="credit-card-spending" source="keywords">credit card spending</keyword>, which fell to Rs 1.69 lakh crore in August, from Rs 1.73 lakh crore in July. Also, there has been a hefty cutdown in provisions made for credit card reward points, which reflects in the quantum of credit card benefits that have been mowed out by companies of late, making credit cards far less lucrative than before. <h2>HDFC takes lead </h2>During August 2024, <keyword id="19895995" type="General" weightage="20" keywordseo="HDFC-Bank" source="keywords" meta.keywordsubtype="org" meta.entityname="HDFC Bank" meta.hostid="261" meta.entityid="HDFC Bank">HDFC bank</keyword> added a total of 2.41 lakh credit cards, taking its total tally of active credit cards to 2.19 crore. <keyword id="19900482" type="General" weightage="20" keywordseo="ICICI-Bank" source="keywords" meta.keywordsubtype="org" meta.entityname="ICICI Bank" meta.hostid="261" meta.entityid="ICICI Bank">ICICI Bank</keyword> came a second distant, adding 1.45 lakh credit cards during the month, which means that the second-largest credit card issuer now holds over 1.75 crore active credit cards. Axis Bank and SBI Cards also added 1.27 lakh and 1.1 lakh cards, respectively to their repertoire during the month, while the growth numbers at Kotak Mahindra Bank remained largely flat, stagnating the bank's total card tally at 54.13 lakh. This was due to the ongoing ban on the bank due to its weak IT infrastructural issues imposed by RBI in April 2024. If anything, the bank's number of credit cards declined by 61,191 during the month. Even as the festive season approaches, experts think that it is unlikely to make a major dent in credit card spendings, which are expected to see a further slowdown in the quarters to come.

Credit card growth experiencing a slowdown, as borrowers struggle to pay back loans

<keyword id="19895995" type="General" weightage="20" keywordseo="HDFC-Bank" source="keywords" meta.keywordsubtype="org" meta.entityname="HDFC Bank" meta.hostid="261" meta.entityid="HDFC Bank">HDFC Bank</keyword> on Saturday posted a marginal 5 per cent increase in its standalone profit at Rs 16,821 crore in the second quarter ended September 2024. The country's biggest private sector lender had earned a <keyword id="19942166" type="General" weightage="20" keywordseo="net-profit" source="keywords">net profit</keyword> of Rs 15,976 crore in the same quarter a year ago. Total income increased to Rs 85,500 crore during the quarter under review against Rs 78,406 crore in the same period last year, HDFC Bank said in a regulatory filing. The bank reported <keyword id="20202322" type="General" weightage="20" keywordseo="interest-income" source="keywords">interest income</keyword> of Rs 74,017 crore during the quarter compared to Rs 67,698 crore in the same period a year ago. Net Interest Income (NII) improved to Rs 30,110 crore, from Rs 27,390 crore in the second quarter of previous year, registering a 10 per cent growth. As regards asset quality, the bank witnessed slight deterioration with gross <keyword id="19927319" type="General" weightage="20" keywordseo="Non-Performing-Assets" source="keywords">Non-Performing Assets</keyword> (NPAs) rising to 1.36 per cent of the gross loans by the end of September 2024 from 1.34 per cent a year ago. Similarly, net NPAs or bad loans rose to 0.41 per cent from 0.35 per cent at the end of the second quarter of the previous fiscal. On a consolidated basis, the bank logged a growth of 6 per cent in net profit to Rs 17,826 crore as against Rs Rs 16,811 crore in Q2FY24. SEE ALSO:<a href="https://www.businessinsider.in/personal-finance/news/best-credit-cards-for-online-shopping-in-india/articleshow/114354358.cms" target="_blank"></a> <a href="https://www.businessinsider.in/personal-finance/news/best-credit-cards-for-online-shopping-in-india/articleshow/114354358.cms" target="_blank">Best credit cards for online shopping this festive season</a><a href="https://www.businessinsider.in/tech/mobile/webstories/best-smartphones-under-25000-in-india-in-october-2024/slidelist/114339207.cms" target="_blank"></a> <a href="https://www.businessinsider.in/tech/mobile/webstories/best-smartphones-under-25000-in-india-in-october-2024/slidelist/114339207.cms" target="_blank">Best smartphones under ₹25,000 in India in October 2024</a><a href="https://www.businessinsider.in/stock-market/webstories/waaree-energies-ipo-price-band-to-risk-factors-all-you-need-to-know/slidelist/114350114.cms" target="_blank"></a> <a href="https://www.businessinsider.in/stock-market/webstories/waaree-energies-ipo-price-band-to-risk-factors-all-you-need-to-know/slidelist/114350114.cms" target="_blank">Waaree Energies IPO – Price band to risk factors, all you need to know</a>

HDFC Bank Q2 profit soars 5% to ₹16,821 crore

Over three-fourths of wealthy Indians have sent or are planning to send their kids overseas for education, according to an <keyword id="19916458" type="General" weightage="20" keywordseo="hsbc" source="keywords">HSBC</keyword> survey. The survey of 1,456 Indians, having investable surplus between Rs 84 lakh ($100,000) and nearly Rs 17 crore ($2 million), conducted in March found a strong urge for overseas education with 78% of the respondents saying they are keen on a <keyword id="382324" type="General" weightage="100" keywordseo="foreign-education" source="Orion">foreign education</keyword> for their children. Investable survey is the amount set aside for investment from overall net worth. The <keyword id="23129277" type="General" weightage="20" keywordseo="global-quality-of-life" source="keywords">Global Quality of Life</keyword> 2024 survey commissioned by foreign lender HSBC said the <keyword id="19900781" type="General" weightage="20" keywordseo="united-states" source="keywords">United States</keyword> is top overseas destination for Indians, followed by the <keyword id="19956320" type="General" weightage="20" keywordseo="united-kingdom" source="keywords">United Kingdom</keyword>, <keyword id="19896882" type="General" weightage="20" keywordseo="canada" source="keywords">Canada</keyword>. <keyword id="19895799" type="General" weightage="20" keywordseo="australia" source="keywords">Australia</keyword> and <keyword id="19895045" type="General" weightage="20" keywordseo="singapore" source="keywords">Singapore</keyword>. So strong is the urge for foreign education for the child that the parents are willing to suffer financial strains as well, the survey said, pointing out that the investment in education may come at the sacrifice of retirement savings. The expected or actual annual cost of overseas education works out at $62,364, and may use up to 64% of parents' retirement savings. Parents resort to dipping into general savings, taking loans and selling assets to fund the overseas education, the survey said. The quality of overseas education tops the list of primary reason for considering the overseas education, followed closely by the possibility to specialise in an area, the survey said. The survey said that financial concerns are the biggest worry for parents when the kid flies out for education, and followed by others like social or mental concerns and physical or health concerns.

Wealthy Indians send kids overseas for education, says HSBC Survey

After a 10.2% increase last year, <keyword id="19910265" type="General" weightage="100" keywordseo="gold-prices" source="keywords">gold prices</keyword> are expected to rise another 9.9%, <keyword id="22706139" type="General" weightage="20" keywordseo="Infomerics-Ratings" source="keywords" meta.keywordsubtype="org" meta.entityname="Infomerics Ratings" meta.hostid="261" meta.entityid="Infomerics Ratings">Infomerics Ratings</keyword> said in a report, attributing largely to the <keyword id="20132853" type="General" weightage="20" keywordseo="Middle-East-crisis" source="keywords">Middle East crisis</keyword> involving Iran and Israel. The dragged <keyword id="20130144" type="General" weightage="20" keywordseo="geopolitical-crisis" source="keywords">geopolitical crisis</keyword> in the Middle East has spurred a rush into safe-haven assets such as gold. Historically, gold, as an asset, is considered a haven as it typically manages to retain or appreciate its underlying value in times of turbulence. "But this rise would now partly be offset by the reduced duty cut (in India)," said the Infomerics Ratings report. Historical trends, such as the surge during the Russia-Ukraine war, highlight gold's role as a safeguard against inflation and market instability during <keyword id="19982403" type="General" weightage="20" keywordseo="global-uncertainties" source="keywords">global uncertainties</keyword>. Prices of gold, considered safe investment bets, have seen a mild correction after the latest stellar bull run. Gold has been in demand for a considerable period, with its prices rallying to hit record highs now and then. Geopolitical conflict in West Asia that stretched for a long time, buying by several central banks, including the RBI, and physical demand, have altogether pushed gold prices northwards. Gold is a scarce commodity, and any mismatch in demand-supply conditions may invariably trigger a sharp price rise. "Gold's diverse uses, in jewellery, technology and by central banks and investors, mean different sectors of the gold market rise to prominence at different points in the global economic cycle. This diversity of demand and self-balancing nature of the gold market underpin gold's robust qualities as an investment asset," said Infomerics Ratings. Festive season buying, a weak dollar, uncertainty surrounding the US elections, and possible Fed rate cuts in September could raise prices, the report noted. In the wake of the presentation of the <keyword id="19908389" type="General" weightage="20" keywordseo="Union-Budget" source="keywords">Union Budget</keyword> on July 23, 2024, by the Finance Minister, gold prices in India declined sharply. Finance Minister Nirmala Sitharaman slashed the import duty on gold from 15% to 6% in the Budget presented on July 23. Days after the Budget, gold became cheaper by Rs 6,200 in most states of India. In the capital Delhi, the price of 10 grams of 24 carat gold came down to about Rs 69,140. "With surging demand for gold, especially as the <keyword id="19896655" type="General" weightage="20" keywordseo="wedding-season" source="keywords">wedding season</keyword> approaches, gold prices are likely to rise this financial year, driven by escalating geopolitical tensions, robust central bank buying, and expectations of <keyword id="21050688" type="General" weightage="20" keywordseo="US-Fed-rate-cuts" source="keywords">US Fed rate cuts</keyword>." Infomerics Ratings report said. In India, gold has strong cultural and religious significance. As per <keyword id="20195223" type="General" weightage="20" keywordseo="World-Gold-Council" source="keywords" meta.keywordsubtype="org" meta.entityname="World Gold Council" meta.hostid="261" meta.entityid="World Gold Council">World Gold Council</keyword>, India is one of the largest consumers of gold jewellery, accounting for about 25% of global gold demand. The demand for gold in India is primarily driven by weddings and festivals, making it an integral part of the country's culture and traditions. Touching upon regulatory structure and challenges in the gold sector, the report noted that the regulatory landscape for the gold industry in India is fragmented. "The regulatory landscape for the gold industry in India is fragmented, involving multiple circulars and notifications from various authorities such as the RBI, Ministry of Finance, Ministry of Commerce, DGFT, Customs, and others. This patchwork of regulations leads to confusion, inefficiency, and difficulty in compliance, as stakeholders must navigate through numerous documents to understand the rules," the report read.

Gold shines as demand for safe haven asset strong; Infomerics Ratings anticipates 10% price jump this year

<ul class="summary-list"><li>Some of the "luster" has come off the AI trade, Morgan Stanley's Mike Wilson says.</li><li>Wilson says investors are now taking shelter in defensive shares as they wait for new themes to emerge.</li></ul>With investors growing impatient over returns on AI investments, they're desperately looking for the next big thing. In the meantime, they should take shelter in quality defensive stocks, Morgan Stanley says.For the "AI dream" long held by investors, "a little bit of that luster has come off," the firm's chief US equity strategist Mike Wilson told <a target="_blank" class="" href="https://www.bloomberg.com/news/audio/2024-09-11/bloomberg-surveillance-tv-september-11-2024?srnd=phx-economics-v2">Bloomberg Surveillance</a> in a Tuesday interview.Wilson said he gauges AI's fall by looking not just at top players like Nvidia, but at the semiconductor industry as a whole."A lot of those stocks have really come off. And that makes sense to me. We just got overcooked on the whole AI theme," Wilson said.Semiconductor shares have seen an almost 7% fall since Nvidia's earnings report <a target="_blank" href="https://www.businessinsider.com/nvidia-earnings-call-live-updates-nvda-stock-2024-8">missed investors' sky-high expectations</a>. The sector's biggest name has seen an outsize drop in its share price in the time since, falling roughly 13%.Wilson says the AI downturn doesn't necessarily spell doom for the industry, but that it rather reflects Morgan Stanley's vision that it will reap benefits, and returns, in the longer term."We're not believers that this is going to change productivity materially in the short-term. That's a long term story," he said.With the AI rally fading for now, Wilson says investors are waiting for a new theme to emerge, and taking shelter in "quality defensive stocks" in the meantime."With that theme now gone, the market is looking for a new theme. On the growth side, there isn't one, so what it does is it hunkers down into defensive, high-quality assets until we get the next thing. Whether that's a bad outcome or a positive outcome, they're going to hide out in these areas," he said.He recommends quality defensive stocks in areas like utilities, staples and healthcare, which are poised to do well amid a slowing labor market, he said in a Monday note."In our view, a slowing labor market is consistent with a late cycle backdrop and quality + defensive leadership," Wilson wrote.Last month, Wilson's team <a target="_blank" href="https://markets.businessinsider.com/news/stocks/stock-pick-recommendations-defensive-equities-morgan-stanley-volatility-bear-market-2024-8">added three new quality defensive stocks</a> to its "Fresh Money Buy List," which now totals nine stocks.

The AI theme is 'overcooked' and investors should take shelter in quality defensive stocks, Morgan Stanley's CIO says

The bad assets or gross <keyword id="19964545" type="General" weightage="20" keywordseo="NPAs" source="keywords">NPAs</keyword> of commercial <keyword id="19934118" type="General" weightage="20" keywordseo="banks" source="keywords">banks</keyword> fell to a 12-year low of 2.8% in March 2024 and may go down further to 2.5% by the end of the current fiscal, said the <keyword id="19899808" type="General" weightage="100" keywordseo="RBI" source="keywords" meta.keywordsubtype="org" meta.entityname="RBI" meta.hostid="269" meta.entityid="RBI">RBI</keyword>'s <keyword id="678734" type="General" weightage="20" keywordseo="Financial-Stability-Report" source="Orion">Financial Stability Report</keyword> (FSR) released on Thursday. <keyword id="19982351" type="General" weightage="20" keywordseo="Scheduled-Commercial-Banks" source="keywords" meta.keywordsubtype="org" meta.entityname="Scheduled Commercial Banks" meta.hostid="269" meta.entityid="Scheduled Commercial Banks">Scheduled Commercial Banks</keyword>' (SCBs) gross <keyword id="6401657" type="General" weightage="20" keywordseo="non-performing-assets" source="Orion">non-performing assets</keyword> (<keyword id="19982350" type="General" weightage="20" keywordseo="GNPA" source="keywords">GNPA</keyword>) ratio fell to 2.8%, and the net non-performing assets (NNPA) ratio to 0.6% at the end of March 2024. "The asset quality of SCBs recorded sustained improvement, and their GNPA ratio moderated to a 12-year low in March 2024. Their NNPA ratio too improved to a record low," said the June FSR. Among bank groups, public sector banks (<keyword id="20012926" type="General" weightage="20" keywordseo="PSBs" source="keywords">PSBs</keyword>) recorded a substantial reduction (76 bps) in their GNPA ratio during H2 2023-24. While the GNPA stock decreased across all bank groups, active and deep provisioning by PSBs and foreign banks (FBs) resulted in an improved provisioning coverage ratio (PCR) in March 2024, the report said. The half-yearly slippage ratio (viz, new NPA accretions as a share of standard advances) decreased across bank groups. Though the amount of write-offs declined during the year, the write-off ratio remained almost at the same level a year ago due to a reduction in GNPA stock, the FSR said. Overall, it added the sustained reduction in the GNPA ratio since March 2020 has been primarily due to a persistent fall in new NPA accretions and increased write-offs. The RBI said macro stress tests are performed to assess the resilience of SCBs' balance sheets to unforeseen shocks emanating from the macroeconomic environment. These tests attempt to assess capital ratios over a one-year horizon under a baseline and two adverse (medium and severe) scenarios. "The GNPA ratio of all SCBs may improve to 2.5% by March 2025 under the baseline scenario," the report said. However, if the macroeconomic environment worsens to a severe stress scenario, the ratio may rise to 3.4%. Under the severe stress scenario, the GNPA ratios of PSBs may increase from 3.7% in March 2024 to 4.1% in March 2025, whereas it may go up from 1.8% to 2.8% for private sector banks and from 1.2% to 1.3% for FBs. The <keyword id="20089808" type="General" weightage="20" keywordseo="financial-stability" source="keywords">Financial Stability</keyword> Report reflects the collective assessment of the Sub-Committee of the Financial Stability and Development Council (FSDC) on the resilience of the Indian financial system and risks to financial stability. The report further said deposit mobilisation by SCBs gathered pace during 2023-24, with a large portion of new accretions in the form of term deposits. "Interest rates became more attractive as banks stepped up efforts to mobilise funds to match the rapid rise in credit demand. Growth in current account and savings account (CASA) accelerated across all bank groups," the RBI said. According to the report, bank credit accelerated during H2 2023-24 among public sector banks (PSBs) and foreign banks (FBs), whereas it moderated in respect of private sector banks (PVBs). The share of credit to the services sector and personal loans in the aggregate loan portfolio increased. Personal loans accounted for over half of PVBs' <keyword id="19998083" type="General" weightage="20" keywordseo="credit-growth" source="keywords">credit growth</keyword>. The expansion in personal loans was broad-based, led by housing loans and followed by other personal loans.

Banks' gross NPAs at 12-yr low, may fall further to 2.5%: RBI report

<keyword id="2240511" type="General" weightage="80" keywordseo="bandhan-bank" source="Orion">Bandhan Bank</keyword> on Wednesday reported over three- fold jump in net profit at Rs 721 crore for the second quarter ended September 30, 2023. The Kolkata-headquartered private sector lender had posted a profit of Rs 209.30 crore for the same quarter a year ago. Total income during July-September this fiscal rose to Rs 5,032 crore as against Rs 4,250 crore in the same period of 2022-23, Bandhan Bank said in a regulatory filing. Net interest income grew to Rs 2,443 crore in Q2 FY24 from Rs 2,193 crore in Q2 FY23. On the <keyword id="6382596" type="General" weightage="20" keywordseo="asset-quality" source="Orion">asset quality</keyword> front, the lender reported deterioration as gross non-performing assets (NPAs or <keyword id="142154" type="General" weightage="20" keywordseo="bad-loans" source="Orion">bad loans</keyword>) rose to 7.32% of gross advances at end-September 2023 from 7.19% by the end of second quarter of 2022-23. Likewise, net NPAs or bad loans also increased to 2.32%, from 1.86%. However, provision (other than tax) &amp; contingencies declined to Rs 636 crore from Rs 1,280 crore in the same quarter a year ago. Net interest margin of the bank improved to 7.2% in Q2 FY24 from 7% in Q2 FY23.

Bandhan Bank Q2 profit jumps over 3-fold to Rs 721 crore

In gardening, providing optimal sunlight and water to plants ensures healthy growth. Similarly, in <keyword id="35175" type="General" weightage="20" keywordseo="investing" source="Orion">investing</keyword>, making well – informed decisions from time-to-time results in strong portfolio performance. This is true, especially at a time when the <keyword id="44794" type="General" weightage="20" keywordseo="equity-market" source="Orion">equity market</keyword> is at its peak, and investors are uncertain about their next move. Given below are a few basic guidelines investors can be mindful about when it comes to maintaining their composure during market highs. Maintain Cash Reserves: Keeping a percentage of your portfolio in cash or cash equivalents helps to take advantage of potential buying opportunities during market downturns. Having adequate liquidity allows you to capitalise on opportunities as and when they arise. Avoid decisions based on past returns: Avoid relying solely on past returns while making investment decisions. Scrutinise every aspect of the asset class when making an investment decision, especially at a time when an asset class is overvalued. Stagger investment: Investing lump sum in an expensive market can be risky. Therefore, consider investing in installments via SIP or STP such that one can capitalise on <keyword id="160380" type="General" weightage="20" keywordseo="market-volatility" source="Orion">market volatility</keyword> or price corrections. Diversification: Most often when the equity market is rallying, investors tend to go overweight on equity as an asset class. This is an erroneous approach. Do ensure at all times that your portfolio is well-diversified across multiple asset classes such as stocks, bonds, commodities, cash equivalents etc. This will help spread risk and reduce the impact of any single asset class on the overall portfolio. Rebalance: Review your portfolio and rebalance if necessary. Selling off some overvalued assets and reallocating funds to undervalued asset classes can help maintain your desired <keyword id="151746" type="General" weightage="20" keywordseo="asset-allocation" source="Orion">asset allocation</keyword>. <keyword id="444072" type="General" weightage="20" keywordseo="risk-management" source="Orion">Risk Management</keyword>: Adjust your asset allocation in a manner wherein your investments are in line with your risk tolerance. If you are nearing retirement or have short-term financial goals, then focus towards conservative asset classes such that the capital remains protected at all times. Focus on Quality: In an up trending market, investors tend to lose focus from quality investments. At all times, ensure you are invested into companies which are fundamentally strong with robust balance sheets such that they can weather any market development. Stay Disciplined: Stick to your long-term <keyword id="115202" type="General" weightage="20" keywordseo="investment-strategy" source="Orion">investment strategy</keyword> and avoid making impulsive decisions based on short-term market movements. Maintaining discipline during market highs helps you avoid expensive mistakes. Contrarian Investing: A contra strategy involves taking positions contrary to prevailing market sentiment. Invest in assets that are out of favour with the majority of investors. This may involve buying stocks of companies facing temporary setbacks but have long-term growth potential. This approach will help to capitalise on market inefficiencies and generate outsized returns over the long term. <cmsannotation type="cmsannotation" annotationid="Where to invest: Large, mid or small-caps?" comment="subhead" text="Where to invest: Large, mid or small-caps?">Where to invest: Large, mid or small-caps?</cmsannotation> Investors should consider their risk tolerance, investment objectives, and portfolio diversification when allocating between large, mid, and small-cap segments of the market. In the prevailing scenario, mid and small caps have rallied significantly and valuations appear stretched. At the same time, large caps continue to be reasonably valued when looked through the earnings prism. To conclude, while perfection in investing is an unattainable feat, abiding by these fundamental principles can enhance your investment outcomes in the long run. By maintaining composure, diversifying wisely and staying disciplined, investors can navigate market highs and lows with confidence. Disclaimer: The article is authored by Munnavar Khan Pathan, Mutual Fund Distributor. The opinions expressed are those of the author and do not necessarily reflect the views of Business Insider India. Do your own research (DYOR) before deciding to invest in any financial asset class. This article is published by the Insider Studios team. You can get in touch with them on <a href="mailto:insiderstudios@businessinsider.in">insiderstudios@businessinsider.in</a>.

Building resilient portfolios: Here are 9 key investing guidelines to keep in mind

<ul class="summary-list"><li>Airbus has agreed to acquire assets of Spirit AeroSystems for $1.</li><li>Airbus said it would also be compensated with $559 million from the aviation manufacturer.</li></ul><a target="_blank" href="https://www.businessinsider.com/airbus-struggling-outsider-beating-boeing-737-max-a320neo-2024-1">Airbus</a> has agreed to buy assets of a major aviation supplier for a symbolic $1 price tag, the planemaker announced Monday.<a target="_blank" href="https://www.businessinsider.com/boeing-supplier-spirit-aerosystems-scrutiny-over-alaska-blowout-quality-control-2024-1">Spirit AeroSystems</a>, which was part of Boeing before it was spun off in 2005, is being carved up following <a target="_blank" href="https://www.businessinsider.com/boeing-whistleblower-urged-alaska-ground-737-max-before-blowout-2024-3">January's Alaska Airlines blowout</a>.The companies announced on Monday that <a target="_blank" href="https://www.businessinsider.com/boeing-acquires-spirit-aerosystems-multi-billion-stock-deal-report-2024-6">Boeing would pay $4.7 billion to buy back Spirit AeroSystems</a>.However, the deal also requires Airbus' involvement because Spirit supplied the European planemaker with several key parts.Airbus said it entered a binding term-sheet agreement to acquire the production of "major activities related to Airbus," including building fuselage sections for the A350 and the pylons, wings, and mid-fuselage for A220 jets.Plus, Airbus said it would be compensated with $559 million from Spirit AeroSystems.This isn't the first time Airbus has picked up assets on the cheap. The <a target="_blank" href="https://www.businessinsider.com/history-of-the-airbus-a220-bombardier-cseries-plane-2020-2">A220 began life as the Bombardier CSeries</a>, but in 2018, after the CSeries program ran into financial issues, Airbus bought a 50% stake for 1 Canadian dollar. The stake was later raised to 75% in a $591 million deal.Spirit built the fuselage of the Alaska 737 Max that lost its door plug in midair and sparked a crisis at Boeing. Weeks after the incident, Boeing began negotiations to buy back the firm in an attempt to improve <a target="_blank" href="https://www.businessinsider.com/boeing-737-max-quality-control-company-culture-merger-finances-2024-1">its quality-control processes</a>.In a preliminary report, the National Transportation Safety Board said <a target="_blank" href="https://www.businessinsider.com/alaska-airlines-boeing-737-blowout-missing-bolts-ntsb-investigation-2024-2">Spirit sent the plane to Boeing's factory</a> with damaged rivets. The report said the door plug was then opened to solve this, but it wasn't bolted back into place before the plane was delivered to Alaska Airlines.In the fallout, <a target="_blank" href="https://www.businessinsider.com/boeing-dave-calhoun-failed-to-turn-boeing-around-737-max-2024-3">Boeing CEO Dave Calhoun</a> announced his resignation. The Justice Department is also considering <a target="_blank" href="https://www.businessinsider.com/uncertainty-clouds-impending-doj-decision-on-charges-against-boeing-2024-6">criminal charges against Boeing</a>, which could be announced this week.

Airbus agrees to pay $1 for Spirit AeroSystems assets in deal sparked by Boeing 737 Max blowout

<ul class="summary-list"><li>Many Americans are struggling to afford a fun lifestyle amid the high cost of living. </li><li>But just north of the border, Montreal offers residents a balance between high quality of life and low prices. </li></ul>Many of the world's most exciting and beautiful cities are also the priciest to live in.But one Canadian city has found the perfect balance between offering its residents a great quality of life for a relatively low cost, according to Mercer's 2024 <a target="_blank" href="https://www.mercer.com/insights/total-rewards/talent-mobility-insights/cost-of-living/">cost of living report</a>.The study compared 226 cities worldwide according to their cost of housing, transport, food, clothing, household goods, and entertainment.Montreal ranked 118th in the world for its overall cost of living but came in 20th for quality of life, giving it the best overall score.While Hong Kong, Singapore, and Zurich ranked as the <a target="_blank" href="https://www.businessinsider.com/most-expensive-cities-to-live-expat-cost-of-living-2024-6">three most expensive cities</a>, they did not perform as well on quality of living.Montreal is Canada's second-largest by population size, with 1.78 million residents.Sitting close to the border of the US state of Vermont, it is known for its <a target="_blank" href="https://www.businessinsider.com/montreal-canada-things-to-do-reasons-to-visit-2022-9#i-recently-traveled-from-my-home-in-nyc-to-montral-qubec-for-the-first-time-during-a-train-trip-through-eastern-canada-1">vibrant cultural scene</a>, great food, tree-lined streets, and providing high-quality education and healthcare."It's extremely cultural, great food scene, safe, bilingualism is an asset," <a target="_blank" href="https://www.businessinsider.com/american-millennial-moved-canada-from-texas-healthcare-weather-housing-culture-2024-4">one US expat</a> who relocated from Texas to Montreal previously told Business Insider.The cost of living in Montreal is cheaper than in 74% of cities in North America, according to comparison site <a target="_blank" href="https://www.expatistan.com/cost-of-living/montreal?currency=USD">Expatistan</a>.Estimated monthly costs for a single person living in Montreal add up to $2,374. Compare that to New York, where a single person can expect to pay $5,412 a month on average, according to Expatistan data.Mercer found that only seven other cities in the world achieve a similar balance to Montreal — Warsaw, Budapest, Ljubljana, Kuala Lumpur, Zagreb, Panama City, and Santiago."This list of eight cities should be of interest to families looking for a better lifestyle, remote working/digital nomads, and companies looking for locations that will be attractive to top talent," Mercer noted in its report.

This Canadian city has found the sweet spot between low cost of living and high quality of life

<ul><li>Shares of private sector lender Yes Bank tanked more than 12% in early trade on Monday as a Reserve Bank of India (RBI)-mandated three-year lock-in for investors ended today.</li><li>In March 2020, RBI had imposed a reconstruction scheme and superseded Yes Bank’s board due to a steady decline in the lender’s financial position.</li><li>The institutional investors who came to the rescue of Yes Bank were mandated by RBI to hold 75% of their shares in Yes Bank, bought as part of the rescue plan, until March 13, 2023. SBI was to hold at least a 26% stake till March 2023.</li><li>Yes Bank’s financials have been improving since the crisis in 2020. The bank reported a net profit in FY22, its first full-year of profit since FY19.</li></ul>Shares of private sector lender Yes Bank tanked more than 12% in early trade on Monday as a Reserve Bank of India (RBI)-mandated three-year lock-in for investors – who had infused funds into the struggling private-sector lender in 2020 in exchange for an equity stake – ended today. At 12:54 a.m, Yes Bank shares had recovered some of the losses to trade at ₹15.75, lower by 4.55%. Meanwhile, the benchmark indices were also under pressure with all sectoral indices in the red. The Sensex and the Nifty were down 0.5% each while the Nifty Bank index fell 0.80%. For context, in March 2020, the Reserve Bank of India (RBI) had imposed a reconstruction scheme and superseded Yes Bank’s board due to a steady decline in the lender’s financial position, which struggled to raise adequate capital to make provisions for potential non-performing assets. As part of the reconstruction scheme, a consortium of 10 institutional investors led by State Bank of India (SBI) had infused ₹10,000 crore in Yes Bank to bail out the lender. Besides SBI, Axis Bank, IDFC First Bank and ICICI Bank are the other major banks that took part in the bailout. The institutional investors were mandated to hold 75% of their shares bought as part of the rescue plan for three years until March 13, 2023. RBI had also asked SBI to hold at least a 26% stake in Yes Bank till March 2023. As of December 31, SBI held 26.14% stake, IDFC First Bank had 1%, Axis Bank had 1.57% and ICICI Bank held a 2.61% stake in Yes Bank. Meanwhile, LIC held a 4.34% stake in the private-sector lender. In December 2022, Yes Bank concluded the sale of stressed assets to JC Flowers Asset Reconstruction Company on loans worth ₹48,000 crore, which led to a substantial reduction in the bank’s gross non-performing assets. Also, Yes Bank’s financials have been improving since the crisis in 2020. The bank reported a net profit of ₹1,066 crore in FY22 after a net loss of ₹3,462 crore in the previous fiscal year. In fact, FY22 was the first full-year of profit since FY19. In Q3 FY23, Yes Bank said it has recorded a "sustained improvement" in non-performing asset ratios. The gross non-performing asset (GNPA) ratio stood at 2% in the December quarter, as against 14.7% last year. The net NPA ratio came down to 1%, as compared to 5.3% in Q2 FY23. <div type="javascript" title="Custom" contenttype="Image"><cdata><![CDATA[]]></cdata></div> SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/corporates/news/adani-stocks-rally-after-group-prepays-2-15-billion-margin-linked-loans/articleshow/98601176.cms">Adani stocks rally after group prepays $2.15 billion margin-linked loans</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/startups/news/unicorns-a-bad-word-now-freshtohome-eyes-listing-in-3-years-as-ceo-says-ipo-is-final-test-of-valuation/articleshow/98544597.cms">Unicorn’s a Bad Word Now: FreshtoHome eyes listing in 3 years as CEO says IPO is final test of valuation</a>

You Searched For "assets quality" and got 11 results

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