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Amid questions on the depleting <keyword id="20776807" type="General" weightage="100" keywordseo="loan-to-deposit-ratio" source="keywords">loan-to-deposit ratio</keyword> in <keyword id="19895091" type="General" weightage="20" keywordseo="Indian-banks" source="keywords">Indian banks</keyword>, a recent report by <keyword id="19896146" type="General" weightage="20" keywordseo="Motilal-Oswal" source="keywords" meta.keywordsubtype="org" meta.entityname="Motilal Oswal" meta.hostid="269" meta.entityid="Motilal Oswal">Motilal Oswal</keyword> suggests that the loan-to-deposit (LD) ratio is likely to subside on its own in the coming months. The debate on loan-to-deposit ratio (LD), particularly concerning sluggish <keyword id="19998084" type="General" weightage="20" keywordseo="deposit-growth" source="keywords">deposit growth</keyword> and potential risks to <keyword id="20089808" type="General" weightage="20" keywordseo="financial-stability" source="keywords">financial stability</keyword> is raised by even the finance minister and the <keyword id="20151998" type="General" weightage="20" keywordseo="RBI-governor" source="keywords">RBI governor</keyword>. However, the report notes that on closer examination, the situation may not be as alarming as it seems. As of 9th August, 2024 the Indian <keyword id="19964544" type="General" weightage="20" keywordseo="banking-sector" source="keywords">banking sector</keyword>'s loan-to-deposit (LD) ratio stood at 77.2 %, which is slightly below its recent peak of 78.2 % on 22nd March 2024, and its all-time high of 78.8 % in September 2013. The report stated that typically a rising LD ratio is indicative of a tightness in the banking sector, potentially indicating overheating. A lower LD indicates that the bank is aggressive in its credit disbursement practises, which could be risky. It highlighted that an analysis of the sector's transactions with the Reserve Bank of India (RBI) through the liquidity adjustment facility (LAF), along with recent trends in the weighted average call rate (WACR), suggests that the current rise in the LD ratio does not indicate tightness, which is why there is no immediate cause of concern. In fact, the report added that the concern over weak deposit growth may be overstated. Historical data show that bank deposits grew at an average rate of 9.5 % during the pre-COVID period (January 2015 to February 2020) and 10.4 % in the post-COVID period (March 2020 to August 2024). Earlier, Finance Minister Nirmala Sitharaman also urged state-run banks to enhance deposit mobilization through attractive offers and focusing on Tier-2 and Tier-3 cities. Loan-to-deposit ratio pegs the total deposits received by the bank against the loans it has offered. It helps in understanding how liquid the bank is. The loan-to-deposit ratio (LDR) is a financial metric that compares a bank's total loans to its total deposits. It's used to assess a bank's liquidity and credit risk, and to inform lending and deposit-taking decisions The report said while the exact measures are unclear, the deposit growth could potentially be increased by making other asset classes less attractive through taxation or interest rates, or by boosting fiscal spending to increase net credit to the government. In its forecast, the report noted that private banks will witness a moderation in their <keyword id="19998083" type="General" weightage="20" keywordseo="credit-growth" source="keywords">credit growth</keyword>, while public sector banks will maintain a healthy credit growth rate. "Our analysis suggests that deposit growth could be raised by either making other asset classes unattractive (through taxation and/or interest rate) or increasing the growth in net credit to the government by pushing fiscal spending higher" the report added. Alternatively, policymakers might consider curtailing loan growth to lower the LD ratio. However, this could slow deposit growth, particularly if corporate credit growth remains weak. Encouraging savers to shift investments from other assets to bank deposits could also be an option, but this carries risks of overreach and potential damage to economic confidence. Das had also flagged the excessive growth, or froth developing in the personal loan space. Notably, while credit growth in unsecured personal loans like credit cards continues to decline, it remains elevated at 23.3% as of June 2024. However, this is a significant reduction from 34.2% witnessed in November 2023. As fiscal spending increases, bank credit to the government is likely to grow, which should elevate deposits and broad money supply. The report said "However, the extent of foreign capital inflows and the RBI's policy for managing these inflows remain uncertain". Last month, RBI governor Shaktikanta Das had also addressed this issue in the 50th meeting of MPC (Monetary Policy Committee). Per him, deposit mobilisation has been lagging credit growth for some time now. This may potentially expose the system to structural liquidity issues. "While there could be a debate regarding ‘deposits funding loans’ vis-à-vis ‘loans funding deposits’, the current regulatory concern stems from the fact that there could be structural changes happening which banks need to recognise and, accordingly, devise their strategies. Households and consumers who traditionally leaned on banks for parking or investing their savings are increasingly turning to capital markets and other financial intermediaries", Das said. Per him, while bank deposits continue to remain dominant as a percentage of financial assets owned by households, their share has been declining consistently, since households are now increasingly allocating their savings to mutual funds, insurance funds, pension funds and other avenues.

Loan-to-deposit ratio will subside on its own in coming months, notes Motilal Oswal report

A research report by the <keyword id="19934368" type="General" weightage="100" keywordseo="state-bank-of-india" source="keywords">State Bank of India</keyword> (SBI) highlights the continuous upward trend in credit growth in Indian <keyword id="19934118" type="General" weightage="20" keywordseo="banks" source="keywords">banks</keyword>, which is outpacing the growth of deposits. This trend persists even as Indian households have substantially increased their investments in <keyword id="19929240" type="General" weightage="20" keywordseo="mutual-funds" source="keywords">mutual funds</keyword> and equities. For the last several months, investments of over Rs 21,000 crore are being done in mutual funds. Last month, during an event, <keyword id="20151998" type="General" weightage="20" keywordseo="RBI-Governor" source="keywords">RBI Governor</keyword> <keyword id="19913110" type="General" weightage="20" keywordseo="shaktikanta-das" source="keywords">Shaktikanta Das</keyword> noted that households are opting for capital markets over banks to invest or park their savings. However, the <keyword id="20352499" type="General" weightage="20" keywordseo="SBI-report" source="keywords">SBI report</keyword> states, "Latest fortnightly credit and deposit growth number shows credit growth continues to outpace deposit, though moderated from last year growth of 16.2 percent (June'23 YoY)." Specifically, for the fortnight ending July 12, 2024 the report noted that the credit growth for All Scheduled Commercial Banks stood at 14 per cent on a year-on-year basis, while deposit growth was reported at 11.3 per cent. Furthermore, the report also served a significant increase in credit to the industrial sector, which rose from 5.1 percent in March 2023 to 8.4 percent in March 2024, and recorded 8.1 percent growth in June 2024 year-on-year. This indicates a robust demand for credit within the industrial sector. Despite big savings going towards the capital markets, banks have managed to gather an incremental deposit of Rs 7.02 lakh crore in the year-to-date (YTD) period ending July 12, 2024. In comparison, the incremental credit extended by the banks amounted to Rs 3.80 lakh crore during the same period. This discrepancy illustrates that while credit growth is substantial, deposit growth remains essential to maintain balance. Additionally, the report highlighted that banks' reliance on high-cost deposits, such as Certificates of Deposit (CDs), has more than tripled. This increase is a response to the need to match the rising credit demand, showing how banks are adjusting their funding strategies to accommodate the growing demand for loans. <keyword id="19899808" type="General" weightage="20" keywordseo="rbi" source="keywords">RBI</keyword> Governor stated last month, "While bank deposits continue to remain dominant as a percentage of the financial assets owned by the households, their share has been declining, with households increasingly allocating their savings to Mutual Funds, Insurance Funds, and Pension Funds."

Credit growth in banks continues to exceed deposits, says new SBI report

<ul class="summary-list"><li><a target="_blank" href="https://www.businessinsider.com/kroger-plans-1-billion-by-selling-your-grocery-data-2023-2">Kroger</a> and Albertsons are facing off against the FTC in court over their proposed $24.6 billion merger.</li><li>The FTC argues the merger would reduce competition and raise grocery prices.</li></ul>The fate of the <a target="_blank" class="" href="https://www.businessinsider.com/how-kroger-albertsons-merger-impact-workers-shoppers-grocery-inflation-2022-11">largest supermarket merger</a> in US history hangs in the balance as an ongoing three-week hearing unfolds inside an Oregon federal courtroom.Supermarket giants Kroger and <a target="_blank" class="" href="https://www.businessinsider.com/where-kroger-and-albertsons-grocery-stores-overlap-2022-12">Albertsons</a> are duking it out in court against regulators who are trying to block the companies <a target="_blank" class="" href="https://markets.businessinsider.com/news/stocks/ftc-states-sue-to-block-kroger-s-24-6-bln-albertsons-deal-1033106297">proposed $24.6 billion merger</a> over antitrust concerns.The chains argue that Kroger's acquisition of Albertsons would boost competition with behemoth retail rivals like <a target="_blank" class="" href="https://www.businessinsider.com/walton-family-sam-walmart-stock-billionaires-estate-planning-inheritance-wealth-2024-8">Walmart</a>, <a target="_blank" class="" href="https://www.businessinsider.com/canceled-costco-membership-bad-for-me-would-never-go-back-2023-9">Costco</a> and <a target="_blank" class="" href="https://www.businessinsider.com/amazon-aws-sales-guidelines-spread-doubt-about-openai-ai-capabilities-2024-8">Amazon</a>, while regulators from the <a target="_blank" class="" href="https://www.businessinsider.com/jeff-bezos-amazon-execs-signal-messaging-app-ftc-investigation-2024-4">Federal Trade Commission</a> allege the opposite, saying the deal is actually anticompetitive and would result in higher grocery prices for millions of Americans, as well as lower wages for workers.Both sides are currently making their case before US District Judge Adrienne Nelson, who will ultimately decide at the end of the hearing next month whether to approve the FTC's request for a preliminary injunction against the merger.Already this week, a <a target="_blank" class="" href="https://www.businessinsider.com/kroger-milk-eggs-prices-increased-beyond-inflation-executive-testifies-report-2024-8">Kroger executive's internal email about price hikes</a> for eggs and milk beyond the added costs from inflation has drawn scrutiny in the courtroom.If the judge overseeing the hearing ultimately rules in favor of the FTC, the deal between Kroger and Albertsons could end up torpedoed completely. A temporary injunction would put the merger on ice as the FTC holds a separate in-house proceeding over the deal before an administrative law judge."This merger will not occur if this injunction is in place," Kroger attorney Matthew Wolf <a target="_blank" class="" href="https://www.cincinnati.com/story/money/2024/08/27/ftc-kroger-albertsons-grocery-merger-update-federal-court-hearing/74887346007/">told</a> the court on Monday as the federal court hearing kicked off in Oregon.<div type="image" title="FILE PHOTO: Customers leave an Albertsons grocery store with their purchases in Burbank, California, U.S., July 17, 2012. REUTERS/Fred Prouser" height="2023" width="3000" msid="112932546" hostid="261" sizebytes="279094"></div>Wolf <a target="_blank" class="" href="https://apnews.com/article/kroger-albertsons-grocery-merger-ftc-9fdb26cc044ee21a7a486c03caae6a5d">said</a> that the FTC's internal administrative process is so drawn out that merger deals typically collapse before the proceedings are completed.In his opening statements to the court on Monday, Wolf <a target="_blank" class="" href="https://www.reuters.com/business/retail-consumer/us-ftcs-bid-block-kroger-albertsons-merger-heads-trial-2024-08-26/">argued</a> that the merger would instantly lower some prices for patrons at Albertsons stores, where company officials disclosed are up to 12% higher than Kroger's.The attempt by federal regulators to lower prices by blocking the merger shows that "they neither understand the industry nor the parties within it," said Wolf."Supermarkets are losing this food fight, and who are they losing it to? Walmart, Costco, and Amazon, among others," Wolf <a target="_blank" class="" href="https://www.supermarketnews.com/kroger/kroger-albertsons-get-their-day-court">told</a> the court.Albertsons attorney Enu Mainigi said that the retailer may be forced to close stores and lay off workers if the merger does not go through.The FTC's chief trial counsel, Susan Musser, <a target="_blank" class="" href="https://www.nytimes.com/2024/08/26/business/economy/ftc-kroger-albertsons-merger-court.html">argued</a> in her opening statement on Monday that the proposed merger "would eliminate the competition that shoppers and workers depend on in one fell swoop.""This lawsuit is part of an effort aimed at helping Americans feed their families," Musser <a target="_blank" class="" href="https://apnews.com/article/kroger-albertsons-grocery-merger-ftc-9fdb26cc044ee21a7a486c03caae6a5d">said</a>.Dozens of witnesses are expected to testify at the hearing over the next couple of weeks, including the CEOs of Kroger and Albertsons.<h2 id="90321246-9194-42a3-8a64-73496bafb64b">Regulators sued to block the Kroger-Albertsons merger deal earlier this year</h2><div type="image" title="Kroger" height="3456" width="5184" msid="112932542" hostid="261" sizebytes="999610"></div>In February, more than a year after Kroger and Albertsons announced the merger mega-deal, the FTC sued to block it.Attorneys general in Arizona, California, Illinois, Maryland, Nevada, New Mexico, Oregon, Wyoming and the District of Columbia all joined the FTC's lawsuit. The attorneys general in Colorado and Washington have also filed separate lawsuits in an attempt to halt the deal."Kroger and Albertsons are two of the largest supermarket chains in thousands of local communities throughout the country," attorneys argue in the FTC lawsuit. "In hundreds of those communities, the proposed acquisition would create a single supermarket with market shares so high as to be presumptively unlawful under the antitrust laws."The lawsuit alleges that "the proposed acquisition would also eliminate the substantial head-to-head competition between Kroger and Albertsons that exists today, which risks higher prices and lower quality for consumers."The FTC says in its lawsuit that the stakes for Americans are "exceptionally high" as the agency notes how grocery prices have risen significantly in recent years."The fierce competition between these two grocery giants has benefited millions of American consumers through lower prices for food and household essentials," the lawsuit says. "It has also benefited hundreds of thousands of grocery store workers who, as a result of competition for their labor, earn better wages and benefits."It continues, "If allowed to proceed, the proposed acquisition would destroy this competition, likely making it more expensive for millions of families to put food on the table."Meanwhile, Kroger filed a lawsuit against the FTC last week, arguing that the agency's administrative proceeding against the merger violates the Constitution while citing, in part, a <a target="_blank" class="" href="https://www.businessinsider.com/supreme-court-strips-sec-enforcement-power-financial-fraud-jarkesy-2024-6">recent Supreme Court ruling</a>."The merger between Kroger and Albertson's is squarely focused on ensuring we bring customers lower prices starting day one while securing the future of good-paying union jobs," Kroger CEO and chairman Rodney McMullen <a target="_blank" class="" href="https://ir.kroger.com/news/news-details/2024/Kroger-Files-Motion-to-Enjoin-the-FTCs-Administrative-Merger-Challenge/default.aspx">said</a> in a statement at the time."We stand prepared to defend this merger in the upcoming trial in federal court – the appropriate venue for this matter to be heard – and we are asking the Court to halt what amounts to an unlawful proceeding before the FTC's own in-house tribunal," McMullen said.Kroger operates more than 2,700 stores across 36 states under names including Fred Meyer, Dillon's and Smith's, while Albertsons controls more than 2,200 stores across 35 states under banners like Safeway, Shaws, and Acme.In 2022, Kroger and Albertsons generated more than $148 billion and $72 billion in revenues, respectively.As part of the proposed merger, Kroger and Albertsons said they would sell 579 stores to the grocery supply company C&amp;S Wholesale Grocers.

Inside the legal battle over the fate of the biggest supermarket merger in US history

The festive season is here and with it, you are likely to make several purchases from e-commerce platforms, be it for yourself or for your friends and family. Choosing the right credit card for <keyword id="19957108" type="General" weightage="20" keywordseo="online-shopping" source="keywords">online shopping</keyword> can make a significant difference in how much you save and earn from your purchases. <keyword id="19953671" type="General" weightage="20" keywordseo="credit-cards" source="keywords">Credit cards</keyword> not only allow you to easily get products on credit, they can also make them cheaper thanks to cashback and reward points. You also get access to airport lounges, railway lounges, dining offers and more. In this post, we look at some of the <keyword id="23600028" type="General" weightage="100" keywordseo="best-credit-cards-for-online-shopping" source="Orion">best credit cards for online shopping</keyword> in India. <h2><keyword id="3294523" type="General" weightage="20" keywordseo="best-credit-cards" source="Orion">Best credit cards</keyword> for online shopping in India</h2><h3><keyword id="23600026" type="General" weightage="20" keywordseo="Amazon-Pay-ICICI" source="keywords">Amazon Pay ICICI</keyword> credit card</h3> <div type="image" title="Amazon Pay ICICI credit card" msid="114354421" hostid="261" caption="&amp;lt;p&amp;gt;Amazon Pay ICICI credit card&amp;lt;/p&amp;gt;"></div> The Amazon Pay ICICI Credit card is among the most popular co-branded credit cards, offered by ICICI Bank in partnership with e-commerce giant Amazon India. It’s great for those who regularly shop on Amazon, as it offers a 5% cashback on all purchases on the platform. Key Features: <ul><li>Cashback: Up to 5% cashback on Amazon purchases, and 2% cashback on other online shopping.</li><li>Additional cashback: Earn 2% cashback at partner stores, and 1% on all other spends.</li><li>No annual fee: Lifetime free credit card.</li><li>Fuel surcharge waiver: 1% fuel surcharge waiver across all petrol pumps.</li></ul> <div type="Article" hostid="261" msid="113123752" title="Here are the benefits you get with India’s most expensive credit card with a ₹3.54 lakh annual fee" mstype="2" mssubtype="0"></div> <h3>HDFC Millenia credit card</h3> <div type="image" title="HDFC Millenia credit card" msid="114354433" hostid="261" caption="&amp;lt;p&amp;gt;HDFC Millenia credit card&amp;lt;/p&amp;gt;"></div> The HDFC Millenia is a popular credit card from HDFC Bank and is among the most sought-after cards from the bank. This card offers good rewards on Amazon, Flipkart, Myntra and other online platforms. It is also good for utility bills and fuel spending. Key Features: <ul><li>Cashback: 5% cashback on Amazon, BookMyShow, Swiggy, Flipkart, Myntra and more. It offers 1% cashback on all other spends.</li><li>Lounge access: 1 complimentary lounge access per quarter.</li><li>Fuel surcharge waiver: 1% fuel surcharge waiver across all petrol pumps.</li></ul><h3>Flipkart Axis Bank credit card</h3> <div type="image" title="Flipkart Axis Bank credit card" msid="114354438" hostid="261" caption="&amp;lt;p&amp;gt;Flipkart Axis Bank credit card&amp;lt;/p&amp;gt;"></div> With Amazon partnering with ICICI Bank, Flipkart joined the race and partnered with Axis Bank to launch the Flipkart Axis Bank credit card. The card offers 5% cashback on Flipkart and Cleartrip. Key Features: <ul><li>Cashback: 5% cashback on Flipkart and Cleartrip, 4% on preferred partners and 1% on other spends. </li><li>Lounge access: 4 complimentary lounge access per year on spending ₹50,000 during the previous 3 months.</li><li>Fuel surcharge waiver: 1% fuel surcharge waiver across all petrol pumps.</li></ul> <div type="Article" hostid="261" msid="98090488" title="How to use credit card to make UPI payments" mstype="2" mssubtype="0"></div> <h3>Cashback SBI Card</h3> <div type="image" title="Cashback SBI credit card" msid="114354449" hostid="261" caption="&amp;lt;p&amp;gt;Cashback SBI credit card&amp;lt;/p&amp;gt;"></div> The Cashback SBI Card has quickly emerged as one of the most popular cards from the state-owned bank, beating its SimplyClick card, which was one of the preferred cards for online spending. The USP of this card is that it offers a flat 5% cashback on all online spending. Key Features: <ul><li>Cashback: 5% cashback on all online spends, without any merchant restrictions. It also offers 1% cashback on all offline transactions.</li><li>Fuel surcharge waiver: 1% fuel surcharge waiver across all petrol pumps.</li><li>Annual fee waiver: Fee waiver on spending ₹2 lakh in the preceding year.</li></ul><h3><keyword id="23600027" type="General" weightage="20" keywordseo="Axis-Bank-Ace" source="keywords">Axis Bank Ace</keyword> credit card</h3> <div type="image" title="Axis Bank Ace credit card" msid="114354458" hostid="261" caption="&amp;lt;p&amp;gt;Axis Bank Ace credit card&amp;lt;/p&amp;gt;"></div> The Axis Bank Ace credit card is another excellent card, especially for those looking for a card for bill payments, utility spending and more. It is also one of the few credit cards that can be added to Google Pay. Key Features: <ul><li>Cashback: 5% cashback on all bill payments, mobile recharges and DTH recharges via Google Pay. It also offers 4% Swiggy, Zomato and Ola.</li><li>Lounge access: 4 complimentary lounge access per year on spending ₹50,000 during the previous 3 months.</li><li>Fuel surcharge waiver: 1% fuel surcharge waiver across all petrol pumps.</li></ul> <div type="Article" hostid="261" msid="102133212" title="HDFC Bank and Swiggy launch co-branded credit card – cashback, offers and more" mstype="2" mssubtype="0"></div> <h3>American Express SmartEarn credit card</h3> <div type="image" title="American Express SmartEarn credit card" msid="114354467" hostid="261" caption="&amp;lt;p&amp;gt;American Express SmartEarn credit card&amp;lt;/p&amp;gt;"></div> While it is more challenging to get American Express cards than other cards on the list, getting your hands on the SmartEarn credit card is relatively easy compared to other cards offered by American Express. Key Features: <ul><li>Reward points: 10X membership reward points on Flipkart, Zomato, Myntra, Uber, Ajio and more. 5X membership reward points on every ₹50 spent on Amazon.</li><li>Monthly spends: Earn 500 membership reward points on spending ₹2,500 in a month on 10X reward point partners.</li><li>Annual fee waiver: Fee waiver on spending ₹40,000 in the preceding year.</li></ul>SEE ALSO: <a href="https://www.businessinsider.in/finance/news/here-are-the-benefits-you-get-with-indias-most-expensive-credit-card-with-a-3-54-lakh-annual-fee/articleshow/113123752.cms">Here are the benefits you get with India’s most expensive credit card with a ₹3.54 lakh annual fee</a> <a href="https://www.businessinsider.in/stock-market/news/bigger-they-are-harder-they-fall-a-look-at-how-the-countrys-biggest-ipos-have-fared/articleshow/114307997.cms">Bigger they are, harder they fall – A look at how the country’s biggest IPOs have fared</a> <a href="https://www.businessinsider.in/business/news/hdfc-bank-and-swiggy-launch-co-branded-credit-card-to-offer-discount-to-customers/articleshow/102133212.cms">HDFC Bank and Swiggy launch co-branded credit card – cashback, offers and more</a>

Best credit cards for online shopping this festive season

Reserve Bank of India has given its nod for the reverse <keyword id="42411" type="General" weightage="20" keywordseo="merger" source="Orion">merger</keyword> of <keyword id="6361420" type="General" weightage="20" keywordseo="idfc" source="Orion">IDFC</keyword> Ltd with its banking subsidiary <keyword id="7145428" type="General" weightage="20" keywordseo="idfc-first" source="Orion">IDFC First</keyword> Bank. The boards of IDFC First Bank and IDFC have approved the reverse merger in July. "....IDFC Limited and IDFC Financial Holding Company (IDFC FHCL) have received letters dated December 26, 2023 from <keyword id="30067" type="General" weightage="20" keywordseo="rbi" source="Orion">RBI</keyword> whereby RBI has conveyed its 'No Objection' to the composite scheme of amalgamation, subject to compliance with the terms specified therein," IDFC Ltd said in a regulatory filing. As part of the composite scheme of amalgamation, IDFC FHCL would first merge with IDFC and then IDFC into IDFC First Bank Ltd. The scheme remains subject to other statutory and regulatory approvals, including from the National Company Law Tribunal and the respective shareholders and creditors of the companies involved under the applicable laws, it said. Under the proposed reverse merger scheme, an IDFC <keyword id="6388677" type="General" weightage="20" keywordseo="shareholder" source="Orion">shareholder</keyword> will get 155 shares for every 100 shares she/he holds in the bank. Both stocks have a face value of Rs 10 each. Post the merger, the standalone book value per share of the bank will increase by 4.9 per cent, as calculated on the audited financials as of March 2023, it said, adding that as of June 2023, IDFC through its non-financial holding company, owned 39.93 per cent in IDFC First Bank. IDFC was an infra lender in the private sector space, and following its bigger peers like ICICI and IDBI, it also launched a banking subsidiary in 2015 -- IDFC Bank -- but could not make a mark as the other two could do. Like HDFC Bank, the merged IDFC First Bank will also have no promoter entity, but fully owned by institutional and public shareholders. IDFC began as an infra lender in 1997. It got in-principle approval from the RBI to set up a bank in April 2014, and in October 2015, it launched IDFC Bank when on-tap licensing began, following which loans and liabilities of IDFC were transferred to the bank. In December 2018, it took over Capital First, a consumer and MSME-focused non-bank since 2012, and was renamed as IDFC First Bank and became a full-service universal bank.

RBI approves IDFC-IDFC First Bank merger

<ul class="summary-list"><li>Chinese state-owned banks have been buying up the yuan and selling the dollar, Reuters reported.</li><li>That comes as China's central bank lowers the dollar-yuan daily fixing rate to a three and half month low.</li></ul>Big banks in China are buying up yuan and selling the dollar in an effort to prop up the Chinese currency.This week, major state-owned banks have been helping boost the yuan by swapping it for dollars in the onshore market and selling those dollars in the spot currency market, Reuters reported on Tuesday.The move also comes as The People's Bank of China has lowered the dollar-yuan daily fixing rate to a three and a half month low of 7.1406 per dollar as of Tuesday.But that banks have been active in the currency market this week came as a surprise to sources who spoke to Reuters, given the yuan's recent rally.The yuan has gained 2% in the past week to its highest level in nearly four months, notching levels of around 7.13 to the dollar. The selling of US dollars by big state banks briefly pushed onshore spot yuan to 7.1296 per dollar.The yuan's gains also come as the dollar has been weakening since last week, counting on the growing conviction that the Federal Reserve is done hiking interest rates. Still, the <a href="https://markets.businessinsider.com/news/currencies/stock-market-outlook-china-economy-dollar-vs-yuan-dedollarization-currencies-2023-9">Chinese currency is down</a> more than 3% against the dollar this year. Chinese banks have frequently sold dollars in the currency market this year to slow the <a href="https://markets.businessinsider.com/news/currencies/china-economy-woes-yuan-falls-lowest-against-dollar-16-years-2023-9">yuan's decline</a>. While a strong US dollar has been a part of the problem, the <a href="https://www.businessinsider.com/china-economy-slowdown-debt-property-crisis-population-recession-balance-sheet-2023-10">Chinese economy is also plagued</a> with problems including a cratering real estate sector, shrinking trade, and long-term pandemic-related disruptions.The economic malaise spurred the PBOC to <a href="https://www.businessinsider.com/china-economy-recession-growth-stimulus-package-inflation-xi-jinping-politburo-2023-7">launch a stimulus package</a> issuing extra sovereign bonds to ease debt burdens of the country's local governments.

Chinese state-owned banks are propping up the yuan while the central bank signals currency weakness

<ul class="summary-list"><li>Russia is weighing a plan to combine three of its oil giants, The Wall Street Journal reported. </li><li>The report says the merger would help Russian energy be more competitive amid slowing oil demand.</li></ul>Russia is considering a plan to combine three of its oil giants, making for the world's second-largest largest oil producer, <a target="_blank" class="" href="https://www.wsj.com/business/energy-oil/russia-explores-plan-to-merge-oil-giants-into-mega-producer-80a6aa6b">The Wall Street Journal reported</a>. The deal would involve state-backed Rosneft Oil taking over state-owned Gazprom Neft (a subsidiary of Gazprom) and the independently-run Lukoil, the Journal report said. Sources speaking with the Journal said the possible deal is subject to change and has been discussed among executives and government officials over the past few months.Talks of similar mergers have circulated in recent years, but there remain some hurdles, like opposition from executives at Rosneft and Lukoil, plus the large amount of financing needed to pay Lukoil's shareholders, the report said.It added that the merger is part of Putin's effort to compete with Saudi Arabia while oil demand slows amid a push toward renewable sources. If successful, the post-merger entity would be one of the world's largest oil producers, second only to Saudi Aramco, which produced almost 10 million barrels of oil a day in 2023, according to data from Rystad Energy UCube.It would also pump nearly three times that of US oil producer Exxon Mobil, the report added.The deal's proponents say the merger could generate far more revenue since the oil output from the three companies could be sold through Litasco, Lukoil's trading unit in Dubai.That would help fuel Putin's war effort in Ukraine. Oil and gas are key lifelines for Russia's economy, and provide nearly a third of federal revenue, but have faced new obstacles amid Western sanctions.Rosneft, Gazprom Neft, and Lukoil all face sanctions, making it difficult to engage in the energy trade with partners around the world. The report comes as oil prices have been largely depressed this year, partly because China has suffered a prolonged economic downturn and as the conflict in the Middle East hasn't resulted in any disruption to supply. The report said spokespeople from some of the involved parties denied the deal. A Rosneft spokesperson said the information was incorrect, while a Lukoil spokesperson said the company was not involved in merger talks because it would not be in the interest of the company, the report says. A state spokesperson, meanwhile, said the administration was not aware of a deal, the report adds.

Russia could merge state-run oil companies to make the world's 2nd largest producer, report says

<ul class="summary-list"><li>Russia is hosting a BRICS summit this week, showing the limits of attempts to isolate it.</li><li>The grouping is buoyant after ballooning from five members to nine.</li></ul>Russia is flexing its muscles at the center of the BRICS economic bloc which seeks to rival the West.The nation is hosting a meeting of the grouping this week, the first since the group almost doubled its membership.The larger grouping gives them more weight — and is a rebuke to Western-led attempts to isolate Russia economically.It also complicates the grouping, introducing new competing interests and rivalries.Geopolitical analysts say it could dilute the group's ability to take action, and reduce it to a talking shop.Iran, Egypt, Ethiopia, and the United Arab Emirates are the new BRICs entrants, joining earlier members Russia, India, China, Brazil, and South Africa. Saudi Arabia has been invited to join but has not formally done so yet.Russian President Vladimir Putin <a target="_blank" class="" href="https://brics-russia2024.ru/en/">touted</a> the expansion as proof of the group's "growing authority" and role in international affairs.Yet geopolitical tensions and competing interests among the group are dragging down Russia's efforts to use it to chip away at the dominance of the West, particularly the US dollar."BRICS expansion is no easy task," said Abishur Prakash, the founder of The Geopolitical Business, a strategy advisory firm in Toronto."It risks creating rival camps within the group," he told Business Insider.<h2 id="a422f5a1-a2fa-40bb-898f-89b58f30e598">A 'raw' grouping</h2>Since its founding in 2006 — with Brazil, Russia, India, and China as members, before South Africa joined in 2010 — the bloc has tried to challenge Western economic dominance.Over the past two decades, its members experienced significant economic growth. After the recent expansion, its member states represent almost 46% of the world's population and about 25% of global exports.Last year, more than 40 countries <a target="_blank" href="https://www.businessinsider.com/brics-summit-countries-interested-brazil-russia-india-china-south-africa-2023-8">expressed interest</a> in joining the bloc.But Anton Barbashin, cofounder and editorial director at Riddle Russia, an online journal on Russian affairs, described the group as a "raw collection" of countries.They have "no chance" of political unity due to competing interests and starkly differing attitudes, he said.Members have grappled with <a target="_blank" class="" href=" https://www.cfr.org/backgrounder/what-brics-group-and-why-it-expanding">internal disagreements</a> over relations with the West, territorial claims, and Russia's invasion of Ukraine.Others are engaged in internal standoffs. India and China have clashed over disputed territory along their border, though they <a target="_blank" class="" href="https://www.youtube.com/live/QiqK0eIJn8E">announced a deal</a> on patrolling arrangements this week.Some countries — notably India and South Africa — also have a tricky balancing act to do, engaging with the group without alienating their partners in the West.<h2 id="1875563d-1228-4de5-a7cc-5b63106239c1">Talking shop</h2>Barbashin told BI that the BRICS Summit is important for Russia because it has been cut out from other international platforms.It's a way to communicate and possibly strike "some deals in the future that we don't necessarily foresee," he said.In total, representatives of 32 countries are set to attend the summit this week, according to Moscow.Barbashin said that the group's size masks its relative impotence."It's just a nice facade," he said, "and it falls within the idea that economic growth should translate into a greater political setting."Leaders are expected to discuss how far members are willing to commit to the group.Una Aleksandra Berzina-Cerenkova, director at Riga Stradins University's China Studies Center, told Politico that "China uses BRICS to give it a mandate to push global visions and post-Western vision."During a press briefing held by the Center for European Policy Analysis on Monday, one analyst foresaw major hurdles for the group to move past its status as a "debating club."Evgeny Roshchin, a visiting scholar at Johns Hopkins University's Henry A. Kissinger Center for Global Affairs, said the group would need to choose how to distribute power between its members should more join."Behind the rhetoric, there's a huge concern — even within Russia — whether the new members will become their equals," he said, noting that Russia could lose its leverage and decision-making among a large group of notionally equal members.<h2 id="ab0780f6-acfd-427a-bc7c-109fb06111f1">Taking on the dollar</h2>Another challenge BRIC members like Russia and China face is trying to change the fundamentals of global <a target="_blank" rel="noopener noreferrer" class="c-link" href="https://www.businessinsider.com/russia-economy-commodities-trading-centers-brics-us-dominated-global-finance-2024-10">financial trading systems</a> that rely overwhelmingly on the US dollar.During a <a target="_blank" rel="noopener noreferrer" class="c-link" href="http://en.kremlin.ru/events/president/news/75349">BRICS Business Forum</a> in Moscow last week, Putin said group members were working on alternative payment systems, as a rival to SWIFT.The alternative systems would aid cross-border payments between members, according to a <a target="_blank" rel="noopener noreferrer" class="c-link" href="https://www.yakovpartners.com/publications/imfs/">report</a> by Russia's finance ministry, its central bank, and consultancy Yakov &amp; Partners.It envisioned a network of payments using local currencies rather than a default reserve currency like the dollar.Russia already has a model it can look to for transactions among central banks: the mBridge system under the <a target="_blank" rel="noopener noreferrer" class="c-link" href="https://markets.businessinsider.com/news/currencies/cbdcs-crypto-central-banks-bis-digital-currencies-bitcoin-stablecoins-tether-2021-9">Bank for International Settlements</a>.BRICS members are also toying with alternative currencies, spanning Chin'a digital yuan and Moscow's interest in crypto.The greenback, though, will be <a target="_blank" class="" href="https://markets.businessinsider.com/news/currencies/de-dollarization-dollar-war-currency-usd-dominance-china-yuan-economy-2024-5">hard to dethrone</a> — even without competing priorities and rivalry among BRICS members."Russia wants to create an alternative to Western financial infrastructures," Barbashin said.But "there's no chance of making anything like a union or an alliance," he said.BRICS members are united in that they want to see change, he said "but there's no real strategy within BRICS aside from fancy phrases to make it work."

Putin's expanded BRICS summit proves he has friends — but risks buckling under its own contradictions

<ul class="summary-list"><li>The biggest money managers on Wall Street are shedding billions in stocks for this one tax strategy.</li><li>Tax-loss harvesting allows investors to offset capital gains taxes by selling securities at a loss.</li></ul>It's officially stock-selling season, according to Bank of America.Institutional investors usually increase their selling activity towards the end of the year, and this year was no exception. Bank of America's clients alone sold $1.3 billion in US equities last week. The bank reported that institutional selling activity was 80% higher this October than the historical average.What's the reason behind these elevated levels of security selling? The answer is <a target="_blank" class="" href="https://www.businessinsider.com/tax-savings-strategy-offset-gains-income-loss-harvesting-morgan-stanley-2024-10">tax-loss harvesting</a>.Tax-loss harvesting has long been a strategy of Wall Street and the wealthy to reduce their tax bills. They do this by selling underperforming investments for a loss to offset capital gains taxes on other investments sold at a profit. As a result, taxes are only paid on the net profit.You can replicate this strategy in your own portfolio, too. Below are some tips and tricks on how to use it to reduce your taxes, according to Jere Doyle, estate planning strategist at BNY Wealth.<h2 id="68a94438-775f-431a-954e-0e5b2d8dcb75">How tax-loss harvesting works</h2>Investors might look to rebalance some portfolio positions as the end of the year approaches. For example, after this year's incredible runup in tech stocks, some investors might be looking to sell their positions to realize their gains and diversify their holdings.That's where tax-loss harvesting comes in. If you're selling Nvidia stock with a $10,000 gain, you can pair that with a sale of another asset with a $10,000 loss to avoid paying capital gains taxes.You can also front-load your losses, according to Doyle. If you sell one asset at a $10,000 gain and another at a $15,000 loss, you can use up to $3,000 of the loss to offset other ordinary income — and carry forward the remaining $2,000 to subsequent years.Tax-loss harvesting can be especially advantageous in today's environment, according to Doyle.The market has been experiencing heightened volatility from factors such as mega-cap earnings and the election.This environment creates big winners and losers, giving investors plenty of opportunity to recognize losses. Investors shouldn't be scared of pullbacks in a volatile market. Instead, take advantage of price dips in the market to sell losing securities and lower your tax bill.<h2 id="c83964ce-4da2-4126-a044-a3769347944b">Tax-loss harvesting tips and tricks</h2>There are a few things to consider before using a tax-loss harvesting strategy.First, investors should be aware of the wash-sale rule. The wash-sale rule states that if you sell a security at a loss and buy the same or "substantially identical" security in a 30-day timeframe before or after the sale, you cannot use the loss for income tax purposes.Sometimes, people forget about this rule. "They made the mistake of repurchasing those same assets within that 61-day period, and they lose the deductibility of loss," Doyle said.If you want to sell a security at a loss but still want exposure to a specific area of the market, you can use the proceeds of the sale to purchase a similar, but not substantially identical, asset. However, the IRS hasn't provided a clear definition of what constitutes a substantially identical asset, so investors should approach this with caution. Or, you could double down on the asset more than 30 days before selling at a loss.Another piece of advice Doyle: try to match your gains and losses.It might be tempting to record a larger loss than gain to carry it over in subsequent years, but it might not be worth taking the loss if you don't plan to use it for tax-harvesting purposes in the near future."Given the time value of money, those long-term capital gain losses lose their value over a period of time," Doyle said. A $2,000 loss today will be worth less carried over many years in the future — in that case, it would be more advantageous to just record the loss in the future. In other words, don't incur excessive losses today just to be able to use them in the future.Lastly, Doyle recommends thinking through this strategy carefully to make sure it's a good fit for your current portfolio."From an investment point of view, it may not make sense. Maybe the securities you have at a loss are going to bounce back later on. Maybe the securities you're selling at a gain have future appreciation left," Doyle said.Investors should keep in mind that tax-loss harvesting isn't a one-size-fits-all strategy — but if you do have gains and the losses to offset them, the end of the tax year might be a good time to think about implementing this plan.

Bank of America's clients are selling stocks 80% more than normal to use this strategy that allows you to avoid capital gains taxes on big returns

<ul class="summary-list"><li>Canaccord Genuity is hiring ex-WPP dealmaker Lance Maerov to work on ad and media M&amp;A.</li><li>Maerov's hiring suggests there could be a coming rise in deals on Madison Avenue.</li></ul>Canadian investment bank Canaccord Genuity is hiring a former top dealmaker at advertising giant <a target="_blank" class="" href="https://www.businessinsider.com/inside-wpps-volatile-year-2023-12">WPP</a> to join its advertising and media mergers and acquisitions practice, Business Insider can exclusively reveal.<a target="_blank" class="" href="https://www.businessinsider.com/top-execs-leading-ad-industry-mergers-aquisitions-2021-8#andrew-scott-chief-operating-officer-wpp-11">Lance Maerov</a>, who left WPP in December, is set to join Canaccord Genuity's technology, media, marketing, and information M&amp;A practice, two people familiar with the matter told BI. The company informed staff earlier this week, one of the people said. They requested anonymity in order to maintain business relationships. Their identities are known to BI.Canaccord Genuity didn't respond to requests for comment.The move to expand the bank's media and advertising practice by hiring a prolific Madison Avenue dealmaker is a strong signal that acquisitions in the agency space could heat up. Recent Canaccord Genuity deals in the ad and media space include the sale of <a target="_blank" class="" href="https://www.marketingdive.com/news/publicis-acquires-mars-united-commerce-full-funnel-marketing/727539/">Mars United Commerce</a> to Publicis Groupe, Verve Group's acquisition of <a target="_blank" class="" href="https://www.adexchanger.com/mobile/verve-acquires-jun-group-a-mobile-video-and-gaming-network-for-185-million/">Jun Group</a>, and <a target="_blank" class="" href="https://www.adexchanger.com/omnichannel-2/cadent-acquires-adtheorent-for-324-million-with-a-plan-for-performance-tv/">AdTheorent</a>'s sale to Novacap-owned Cadent.<h2 id="7487460d-0072-4efb-a442-7c2e88683789">The advertising industry is undergoing radical change that's fueling deal activity</h2>The advertising agency landscape has transformed in recent years amid the advent of digital marketing and the emergence of new technology and practices, from <a target="_blank" class="" href="https://www.businessinsider.com/how-ai-changing-advertising-agency-business-2023-9">artificial intelligence</a> to <a target="_blank" class="" href="https://www.businessinsider.com/retail-media-advertising-surges-challenging-google-traditional-channels-2023-9">retail media</a>. Agencies have responded by adapting their services to suit a broader array of client needs than simply creating and buying their ads, as in decades past.It's been marked by a wave of high-profile acquisitions, such as Publicis Groupe's $4.4 billion purchase of the data business <a target="_blank" class="" href="https://www.businessinsider.com/publicis-acquires-epsilon-for-44-billion-but-marketers-say-combining-forces-will-be-a-challenge-2019-4">Epsilon in 2019</a> and, more recently, Omnicom acquiring e-commerce specialist <a target="_blank" class="" href="https://www.thedrum.com/news/2024/01/19/inside-the-omnicom-flywheel-merger-with-john-wren-jonathan-nelson-duncan-painter">Flywheel Digital</a> for $835 million last year.The varying fortunes of different ad-holding companies, as well as an emergence of new entrants — and a growing interest in the space <a target="_blank" class="" href="https://www.businessinsider.com/private-equity-firms-investing-in-advertising-and-marketing-companies-2024-3">from private equity</a> — have also fueled speculation that agency groups, too, could be merged or acquired.Rumors continue to buzz in the industry about what might be <a target="_blank" class="" href="https://www.businessinsider.com/insiders-question-ad-giant-wpp-ceo-mark-reads-bounceback-plan-2023-10">next for WPP</a>, once the leader of the pack, whose market value has dropped well below that of arch-rivals Publicis and Omnicom. (On Wednesday, WPP reported <a target="_blank" class="" href="https://www.wsj.com/business/earnings/wpp-returns-to-growth-beating-expectations-9a85cd15?mod=media_news_article_pos1">a return to revenue growth</a> in its third quarter, which analysts generally hadn't expected.)The Wall Street Journal reported this summer that IPG was in talks to sell R/GA, its digital agency famed for its work on Nike, <a target="_blank" class="" href="https://www.wsj.com/business/media/interpublic-explores-sale-of-prominent-digital-agency-to-consulting-giant-b96f8eed">to Tata Global Consulting</a>. S4 Capital, led by former WPP chief Martin Sorrell, turned down an acquisition offer from <a target="_blank" class="" href="https://www.wsj.com/business/media/he-was-the-ad-industrys-hunter-now-hes-the-prey-65a12b99">rival firm Stagwell</a> earlier this year, The Wall Street Journal first reported.Maerov, who worked under Sorrell at WPP as its EVP of corporate development, was responsible for the company's M&amp;A and venture capital investments. He also worked closely with current CEO Mark Read and chief operating officer Andrew Scott.Maerov worked for WPP for more than 20 years, during which time it made transformative acquisitions, such as the 2007 purchase of digital marketing company <a target="_blank" class="" href="https://techcrunch.com/2007/05/17/wpp-acquires-247-real-media-for-649m/">24/7 Real Media</a> and the 2015 acquisition of <a target="_blank" href="https://www.businessinsider.com/rob-norman-on-why-wpps-groupm-acquired-essence-digital-2015-11">British media agency Essence</a>.Through WPP's investments, Maerov sat on the board of companies including The Weinstein Company, Vice Media, IT firm Globant, and the lifestyle website Refinery29. He would later <a target="_blank" class="" href="https://www.hollywoodreporter.com/business/business-news/weinstein-board-member-lance-maerov-testifies-harvey-weinstein-1272131/">testify</a> against Harvey Weinstein in the trial that ultimately sent the movie mogul to <a target="_blank" class="" href="https://www.businessinsider.com/harvey-weinstein-found-guilty-sexual-assault-rape-in-trial-verdict-2020-2">jail</a>.This year, Maerov branched out on his own, launching Dinmont Ridge, a strategic advice and investment-capital consulting firm.

WPP's former dealmaker is joining investment bank Canaccord Genuity — a sign advertising M&A could heat up

<ul><li><keyword id="6361420" type="General" weightage="100" keywordseo="idfc" source="Orion">IDFC</keyword> First Bank announced merger of its parent IDFC Ltd with itself in an all-stock transaction. </li><li>The boards of IDFC First Bank and IDFC have approved the reverse merger.</li><li>This is the second major deal in banking space days after the amalgamation of the HDFC twins.</li></ul>Mumbai, IDFC First Bank on Monday announced merger of its parent IDFC Ltd with itself in an all-stock transaction, marking another major deal in the Indian banking space days after the amalgamation of the HDFC twins. The boards of IDFC First Bank and IDFC have approved the reverse merger. While the bank did not provide the likely valuation of the merged entity, based on Monday's closing prices of the two companies on BSE, the valuation is Rs 71,767 crore. Under the proposed reverse merger scheme, an IDFC shareholder will get 155 shares for every 100 shares she/he holds in the bank. Both stocks have a face value of Rs 10 each, IDFC First Bank said in a statement. The share exchange ratio will result in a premium of about 20 per cent on the closing market price of the shares of IDFC vis-a-vis IDFC First Bank as of June 30, 2023. IDFC Chairman <keyword id="137177" type="General" weightage="20" keywordseo="anil-singhvi" source="Orion">Anil Singhvi</keyword> said the merger is the last phase of IDFC's corporate restructuring and will help create a financial services provider that offers seamless delivery of services to customers. It will augment operational efficiency for the merged entity and create synergies for our shareholders. Post the merger, the standalone book value per share of the bank will increase by 4.9 per cent, as calculated on the audited financials as of March 2023, it said, adding as of June 2023, IDFC through its non-financial holding company, owned 39.93 per cent in IDFC First Bank. IDFC First Bank's market capitalisation stood at Rs 54,311.48 crore at close today, after the stock rallied 3.2 per cent to Rs 81.94 on the BSE, while IDFC mcap stood at Rs 17,456 crore after its counter rallied 6.3 per cent to Rs 109.10, taking the combined value to Rs 71,767 crore. IDFC was an infra lender in the private sector space, and following its bigger peers like ICICI and IDBI, it also launched a banking subsidiary in 2015 -- IDFC Bank -- but could not make a mark as the other two could do. Effective July 1, India Inc's biggest merger came into effect when the mortgage major HDFC merged itself with its banking arm in an all-stock deal valued at USD 40 billion. Post-merger, announced on April 4, 2022, HDFC Bank is the world's fourth most valued bank with USD 200 billion in valuation after JP Morgan Chase, ICBC of China and Bank of America. The new giant, fully owned by public shareholders with no promoter entity, has a balance sheet of close to Rs 33 lakh crore, with the assets alone sniffing at Rs 23 lakh crore and also the largest mortgage book with close to Rs 7 lakh crore of loans. The merger will lead to simplification of the corporate structure of both entities by consolidating them and other subsidiaries into a single entity, helping streamline regulatory compliances, the companies said in separate but identical statements. Like HDFC Bank, the merged IDFC First Bank will also have no promoter entity, but fully owned by institutional and public shareholders. The merger scheme is subject to all requisite approvals from the Reserve Bank, Sebi, Competition Commission, National Company Law Tribunal and stock exchanges, and shareholders of both entities. IDFC began as an infra lender in 1997. It got in-principle approval from the RBI to set up a bank in April 2014, and in October 2015, it launched IDFC Bank when on-tap licensing began, following which loans and liabilities of IDFC were transferred to the bank. In December 2018, it took over Capital First, a consumer and MSME-focused non-bank since 2012, and was renamed as IDFC First Bank and became a full-service universal bank. Since the merger, the bank built a deposit franchise that has grown 36 per cent annually since then, and has reached Rs 1,36,812 crore as of March 2023. The bank has also increased its low-cost CASA ratio from 8.6 at the merger with Capital First to 49.77 per cent as of March 2023. The bank has 809 branches and runs 925 ATMs. Its loan book stood at Rs 1,60,599 crore with a balance sheet of Rs 2,39,942 crore as of March 2023. The bank closed FY23 with a net income of Rs 2,437 crore, and its capital adequacy ratio stood at 16.82 per cent. Its gross NPAs stood at 1.65 per cent and net NPA at 0.55 per cent. Overall gross NPAs, including legacy infrastructure financing book, is 2.51 per cent, and net NPA is 0.86 per cent. "We now embark on the next phase of our growth journey towards our long-term vision, and the merger will create sustainable shareholder value in the years to come," said Sanjeeb Chaudhuri, the chairman of IDFC First Bank. In a separate statement, IDFC also said its board approved the reverse merger with the bank, and said the composite scheme of amalgamation includes the merger of IDFC and IDFC Financial Holding Company with IDFC First Bank. IDFC First Bank MD V Vaidyanathan said: "We have built a strong deposit franchise, digital innovation, customer-friendly products, strong capital buffer, growing profitability and high corporate governance".

IDFC to merge with its banking arm in all-stock deal

<ul class="summary-list"><li>Biden made commitments during the campaign that impacted key economic appointments.</li><li>Should Harris become president, she'll have much more freedom, and industry leaders have high hopes.</li></ul>When President Joe Biden stepped into the White House in January 2021, he was hamstrung not only by the pandemic but also by a promise he'd made to a former challenger: Sen. Elizabeth Warren of Massachusetts. When slogging through the political thicket of a crowded Democratic primary, Biden had assured Warren that she would have significant sway over economic regulatory agency appointments.Warren's desired appointees — namely <a target="_blank" href="https://www.businessinsider.com/harris-lina-khan-balance-billionaires-silicon-valley-hoffman-progressives-ftc-2024-8">Lina Khan </a>and Gary Gensler, chairs of the Federal Trade Commission and Securities and Exchange Commission respectively — have drawn the praise of many economic progressives and ire of many business leaders. But now that Vice President Kamala Harris is running for president in Biden's place after he dropped out, Khan and Gensler's future as chief regulators is in doubt.<h2 id="6ff1d1bc-fa5b-4d13-adfa-aa52b4d8b1ee">Biden made a key commitment to Warren when he was running for president</h2>"One of [Warren's] preferences was, 'I want Lina Khan to run the FTC,'" William Kovacic, former FTC chair and current law professor at George Washington University, previously told Business Insider. "Biden fulfilled that promise. But that was Biden's promise. That's not Harris' promise."Adam Kovacevich, a Democratic lobbyist and the CEO of progressive tech industry coalition Chamber of Progress, doesn't think that Biden was particularly interested in regulatory economic issues."I think giving some picks to people like Elizabeth Warren kept Warren off his back on other issues," Kovacevich said. "Flash forward to today: Kamala Harris doesn't owe Elizabeth Warren anything."During the 2020 cycle, various media outlets reported that Warren is <a target="_blank" href="https://www.motherjones.com/politics/2020/07/joe-biden-is-promising-progressive-policies-whos-going-to-hold-him-to-it/">singularly attuned</a> to the power of economic regulatory agencies. A former Democratic aide told <a target="_blank" href="https://www.politico.com/news/2021/03/15/elizabeth-warren-aides-biden-administration-475653">Politico</a> that "Warren will be the most influential voice in the financial policy debate under the new administration," and the president of the Consumers Bank Association said that she "virtually hand-picked the financial and other regulatory nominations she cares deeply about."But business and tech leaders who winced at the current appointments <a target="_blank" href="https://www.businessinsider.com/harris-trump-debate-silicon-valley-crypto-regulation-ai-taxes-2024-9">see an opportunity in Harris</a>. With <a target="_blank" href="https://www.businessinsider.com/kamala-harris-biden-california-democrats-silicon-valley-tech-hollywood-2024-7">deep ties to California</a>, Harris is presenting herself as a pro-business candidate who understands the tech industry far better than her current boss. And she's garnering support among industry executives across the country — <a target="_blank" href="https://www.businessinsider.com/silicon-valley-billionaires-investors-kamala-harris-mark-cuban-reid-hoffman-2024-8">a group of powerful venture capitalists</a> have vowed to vote for her and nearly <a target="_blank" href="https://www.businessinsider.com/murdoch-cuban-corporate-executives-silicon-valley-wall-street-endorse-harris-2024-9">100 corporate leaders</a> recently endorsed her in a joint letter.Her supporters in the upper echelons of business and tech are particularly focused on appointments, with many saying that leaders should effectively balance regulation with innovation. In particular, they want appointees that institute clear crypto guidelines and veer away from the current regulatory approach that Warren had championed.Yet <a target="_blank" class="" href="https://www.businessinsider.com/aaron-levie-quit-college-to-found-box-now-25-billion-company-2017-7">Aaron Levie</a>, CEO of Box, said that there isn't consensus in the tech world about anti-trust doctrine, as big and small companies have different priorities. There are many individuals in the Biden administration, such as Arati Prabhakar of the Office of Science and Technology Policy, who are thoughtful tech leaders but aren't widely discussed, he said.<h2 id="3cd1d3b1-d6c5-43d4-abd7-f708eff23c63">Harris could chart a different path</h2>Still, founders and business executives seem, on the whole, dissatisfied. Democratic donors on Wall Street are quietly encouraging Harris to oust Khan and Gensler, <a target="_blank" href="https://www.bloomberg.com/news/articles/2024-09-06/kamala-harris-donors-privately-want-ftc-s-lina-khan-sec-s-gary-gensler-removed">Bloomberg reported</a>.Chris Larsen, the billionaire founder of blockchain payments company Ripple who is among the execs to endorse Harris, told Business Insider he wants her to make different appointments if she wins.Larsen said he wants regulators that are "not pre-selected by the Warren camp and can balance both consumer protection with ensuring our national champions dominate their industries."Christian Catalini, the founder of the MIT Cryptoeconomics Lab, said that Gensler demonstrated "reluctance to engage in constructive dialogue with startups seeking regulatory clarity." He thinks that tech entrepreneurs are particularly hung up on who Harris would choose for the SEC.Recently, billionaire investor and owner of the Dallas Mavericks <a target="_blank" href="https://www.businessinsider.com/mark-cuban-kamala-harris-sec-capital-gains-business-2024-9">Mark Cuban offered himself up for a spot at the SEC</a>. Cuban is in close communication with the Harris team and said that she will likely surround herself with more individuals from the private sector than Biden.Levie also said that engaging with the private sector is "absolutely critical" and hopes Harris invites more industry actors to join the margins of her administration."The way that they have already been interacting with business leaders is a compelling indication of where things could go in the future," Levie told Business Insider.However, the vice president has been relatively quiet about her views on antitrust enforcement and who she would appoint. Khan's tenure as chair of the FTC is up in September and she is open to staying on in her position. Gensler's term lasts until June, 2026; in February, he said he would "<a target="_blank" class="" href="https://subscriber.politicopro.com/article/2024/02/gensler-absolutely-plan-to-stay-on-at-sec-in-second-biden-term-00140134">absolutely" stay on if Biden</a>, who was then still the nominee, won a second term.Kovacic previously told Business Insider that Harris' relationship to economic progressives like Warren remains unclear."A factor to be assessed is, what is the nature of her relationship with this wing of the Democratic Party? How much loyalty does she feel to them? How much does she believe that she has to cater to their tastes in order to maintain a harmonious political relationship? But she has a bit more freedom than Biden did," he said.Kovacevich, who calls himself a "pro-business and pro-Harris democrat," doesn't think that Harris needs to win over Warren voters. He suspects that the Vice President will "reset" the current environment and return to the Obama era, which was friendlier to corporations."I do think it's notable that she has not prioritized attacks on corporate power in her campaign rhetoric. I think she correctly sees how that's not a motivator to most voters," he said.<h2 id="196f9aac-f8fe-4c23-9b6c-70c49aa3137f">The Vice President's precise plans remain unclear with only 50 days until the election.</h2>The relationship between Harris and Warren's philosophical counterparts has been testy at times. In March of last year, Warren gave a lukewarm answer when a radio host asked whether Biden should <a target="_blank" href="https://www.businessinsider.com/warren-called-harris-twice-apologize-comments-hasnt-called-back-2023-3">keep Harris on as his vice president</a>."I really want to defer to what makes Biden comfortable on his team," she said at the time. The senator quickly issued a statement saying that she supports the Biden-Harris 2024 ticket. She reportedly called Harris twice after the incident — without receiving a call back.Kovacic suspects that economic progressives don't entirely trust Harris, given her ties to the business world."It's not as though they think she will simply be an agent of Big Tech," he previously told Business Insider. "It's a concern that she is too sympathetic to their interests, that she will not be as aggressive." He anticipates that Harris will move to the center on mergers, but maintain the Biden administration's approach to monopolization and price-gouging.A spokesperson for the SEC declined to comment, and representatives for Harris and Warren did not respond to Business Insider's request. Douglas Farrar, a spokesperson for the FTC, emphasized Khan's efforts to lower costs and said that "there is a lot of work yet to do to bring the benefits of fair competition to American consumers and entrepreneurs."Should Harris win the election, the question of appointments will loom large. The leadership plays a major role in determining how successful American industries and companies are, Levie said."In the next four years, we'll be dealing with major policy subjects that relate to the next many decades of innovation," he told Business Insider. "And you want very smart, thoughtful, highly competent, experienced people in a stable environment that can help define where we're going to go with AI, with new energy sources, with advanced manufacturing, biotech."Unhampered by campaign promises yet caught between opposing factions of her party, Harris may usher in a new regulatory era. But since regulatory appointments don't make a <a target="_blank" class="" href="https://www.businessinsider.com/trump-harris-economy-tech-debate-tariffs-taxes-2024-9">good political sound bite,</a> it's likely we won't know her plans unless she wins in November.

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