Mukesh Ambani’s music deal could get a remix 27 Mar 2018 India's richest man is merging two music-streaming services into a $1 bln group. That will help attract users to the telecoms arm of his Reliance Industries. With the conglomerate poised to start throwing off cash again, Ambani could take his content ambitions to another level.
Tiny loans price big future for newbie India bank 23 Mar 2018 An IPO will give Bandhan a market cap of $7 bln, or almost five times book value. That sounds punchy for a microfinance lender that only became a bank three years ago. But those rich figures can be justified by low costs and pricey loans, which together produce fat returns.
Mile-high stake swap could feed Air India bid 20 Mar 2018 Jet Airways may be interested in the soon-to-be privatised national carrier. However, Naresh Goyal’s airline would need serious financial help to make an offer fly. Abu Dhabi’s Etihad may need to make room for a new large strategic investor.
India’s central bank chief rises to occasion 15 Mar 2018 Typically reserved Urjit Patel has robustly defended the RBI after New Delhi blamed it for the $1.8 bln Punjab bank fraud. To preside properly as a regulator, it needs the same power over governance at state banks as private ones. The sooner politicians realise it, the better.
ArcelorMittal’s India homecoming may be scrappy 14 Mar 2018 The world’s largest steelmaker is back on the acquisition trail with a $6 bln bid for bankrupt Essar. It paves the way for the family to go back to its roots. The Mittals would face an inhospitable environment, but it's probably manageable for a company spawned by a hostile deal.
M&A rebound is good sign for Indo-Japanese ties 9 Mar 2018 Nippon Steel is part of a bid for bankrupt rival Essar. That would mark a revival of Japanese deals in India after flops with Docomo and Daiichi Sankyo. Healthy financial relations are a prerequisite for creating the harmonious "Indo-Pacific” that Tokyo and Washington both want.
India’s bankruptcy regime requires pragmatic touch 6 Mar 2018 Essar Steel could fetch $6 bln, with bids from groups led by ArcelorMittal and Russia's VTB. Both suitors sit awkwardly with tough rules barring defaulters from buying stressed assets. However, it is better to get good proceeds for creditors than to be purist and fail.
Viewsroom: Fraud puts India’s lenders on edge 28 Feb 2018 A $1.8 bln scam at Punjab National Bank comes just months after the government injected $32 bln to bail out 20-odd state-run financial institutions. The scandal may increase calls for them to be privatized. Elsewhere: Will Sky be the limit for Comcast, Disney or Fox?
India lacks ingredients for next leg of growth 28 Feb 2018 The economy expanded 7.2 pct in the fourth quarter as it continued to recover from Premier Modi’s shock therapy. Even stronger growth would require healthy banks. A massive fraud makes this harder to believe in, and a fresh embrace of protectionism will be another drag.
Trump Jr. corrodes India’s anti-corruption efforts 23 Feb 2018 The U.S. president's son is promoting his family real-estate brand and was due to speak in New Delhi on Indo-Pacific ties. A backlash saw that revised to a fireside chat. Still, the mix of business and politics undercuts Premier Modi's own efforts to end crony capitalism.
Big bank scam reveals India fixed half a problem 22 Feb 2018 A new bankruptcy code tackles a class of large shareholders by transferring power from tycoons to creditors. Government ownership, however, remains troubling, evidenced by the metastasizing $1.8 bln Punjab scandal. New Delhi's interference is the other 50 pct to address now.
India’s bad borrowers are a big problem for Modi 16 Feb 2018 A billionaire jeweller linked to a $1.8 billion fraud at a Punjab bank kept asking for credit even after a nationwide bank bailout. He is now overseas, like disgraced liquor baron Vijay Mallya. The pair of bad-debt poster boys tarnish the prime minister’s anti-corruption fight.
India’s $1.8 bln scam turns up heat on bank reform 14 Feb 2018 Unauthorised transactions from a Punjab National Bank branch equal twice the recapitalisation funds from New Delhi. The mysterious fraud may spread to rivals, too. State banks have been constrained from embracing governance improvements. This episode should spur a fresh review.
WhatsApp adds heft to India’s mobile-money crowd 13 Feb 2018 The messaging service is letting users in its largest market send each other money. The app’s popularity in the country may give it a leg up over other players. They all use unique government-backed infrastructure. That may help turn a profit, but cannot be replicated elsewhere.
India’s offshore trading assault might pay off 12 Feb 2018 Local exchanges will no longer share data with foreign rivals. This move, which is especially painful for Singapore, looks protectionist and will irritate some investors. The higher volumes for Indian exchanges, and a potential tax boost to New Delhi, could make it worthwhile.
State Bank of India picks right time to pivot 12 Feb 2018 India’s biggest bank reported a surprise quarterly dip into the red, hit by losses from its bond holdings and a spike in bad-loan provisions. Yet a plan to raise capital and lend more to individuals is a reminder SBI is in a strong position to grow.
Air India’s turnaround could use some spice 7 Feb 2018 Prospective owners of the soon-to-be privatised national carrier could learn from SpiceJet. Co-founder Ajay Singh brought the low-cost airline back from the brink by improving punctuality and refocusing the route network. That has helped to deliver record earnings.
Cox: Sliding stocks don’t surprise our readers 5 Feb 2018 From Mumbai to Milan, we polled participants at our Predictions 2018 summits. Even before last week's rout, most thought investors are too exuberant, bitcoin is a bubble and Donald Trump is doing poorly. More surprising were regional takes on NAFTA, Italian elections and Brexit.
Ola puts SoftBank in back seat with overseas drive 5 Feb 2018 The Indian ride-hailing outfit wants a slice of the action in Australia. The intrusion into one of Uber’s strongholds will irk SoftBank, which is a big investor in both firms. The Japanese group’s minority stakes clearly are not enough to stop fights between taxi startups.
Walmart weighs online weapon in India’s retail war 31 Jan 2018 The U.S. grocer may buy up to 20 pct of Flipkart, Amazon's arch-enemy in India. The e-commerce firm, valued at some $12 bln, would secure a marquee backer ahead of a possible New York IPO. Walmart, which has struggled to open stores, would jump-start access to local consumers.