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SBI Open To Partnerships With Foreign Banks For Acquisition Financing: Chairman

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SBI Open To Partnerships With Foreign Banks For Acquisition Financing: Chairman


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State Bank of India is well-positioned to support outbound financing due to its deep understanding of domestic corporates, CS Setty said.

State Bank of India (Representative)

State Bank of India’s Chairperson CS Setty on Tuesday said that the country’s largest lender is open to collaborating with foreign banks once the Reserve Bank makes it possible for local banks to do acquisition finance.

Weeks after the central bank announced its intent to allow Indian banks to fund companies for executing domestic acquisitions, Setty acknowledged that the “MNC (multinational companies) banks” are dominant in the space.

“Yes, I think some of the MNC banks are very well into this activity. We don’t mind collaborating with them,” Setty said as quoted by news agency PTI.

He said that SBI has always been doing outbound acquisition finance and has also gained considerable expertise in this aspect. He further said that SBI can also use its in-house investment banking unit SBI Capital Markets’ expertise for such deals.

State Bank of India is well-positioned to support outbound financing due to its deep understanding of domestic corporates, the SBI chairman added.

Setty added that the bank is still evaluating the Reserve Bank of India’s recent decision permitting acquisition financing and will finalise its stance shortly.

However, Setty noted that SBI has reservations about the RBI’s proposal to limit total M&A-related lending to 10% of a bank’s core capital. He said SBI, through the Indian Banks’ Association, plans to take up the matter with the regulator. He also clarified that any future merger and acquisition financing will be handled by the bank’s existing corporate finance division, and there are no plans to create a separate vertical for this purpose.

Meanwhile, Setty said that it will be launching a newer version of its mobile application Yono by the end of December this year, and added that it will be a completely revamped version of the app.

The bank is targeting to more than double the overall number of mobile banking users to 20 crore in an unspecified time, and the new version of the app will be able to handle the traffic that comes through it, Setty said

(With inputs from PTI)

Shobhit Gupta

Shobhit Gupta

Shobhit Gupta is a sub-editor at News18.com and covers India and International news. He is interested in day to day political affairs in India and geopolitics. He earned his BA Journalism (Hons) degree from Ben…Read More

Shobhit Gupta is a sub-editor at News18.com and covers India and International news. He is interested in day to day political affairs in India and geopolitics. He earned his BA Journalism (Hons) degree from Ben… Read More

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AI could make humans less intelligent, warns Royal Observatory

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AI could make humans less intelligent, warns Royal Observatory



Paddy Rodgers said the Observatory’s rich history showed the power of human knowledge and the need to avoid “dependence” on AI.



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Why does Amazon have no Western rivals?


First, to be sure, Amazon isn’t without competitors in any of the segments it is in, including e-commerce. Major US retailers like Walmart and Target both have broad-based, rapidly-expanding online retail arms, and offer their own versions of Amazon’s Prime subscription service.



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Weather & then war lead to tears in India’s onion basket

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Weather & then war lead to tears in India’s onion basket


Seeking relief: Onion growers want an MSP of Rs 3,500/quintal and a Rs 1,500-a-quintal compensation for distress sales

Rain clouds rolled over Maharashtra’s onion belt. Then came war winds from West Asia. Prices collapsed. Crops rotted. Farmers counted losses in rupees — and sold tears by the quintal. Across Nashik, Solapur and Chhatrapati Sambhajinagar, onion growers are reaping a bitter harvest this season as wholesale prices at agriculture produce market committees (APMCs) have crashed far below production costs.Prakash Galadhar, a farmer hailing from Paithan taluka in Chhatrapati Sambhajinagar, hauled 1,262kg of onions he had harvested to market last week. After deductions for labour, loading and transport, his final balance showed he owed the trader Re 1.In Satana APMC of Nashik district, farmer Jitendra Solanke brought 30 quintals hoping to recover at least part of his investment. Traders first offered Rs 50 a quintal. After he protested, rate climbed to Rs 175 a quintal — Rs 1.75 a kg.Still, numbers refused to add up. “I spent Rs 1,200 per quintal to grow crop. After sale, labour and transport charges, only Rs 500 remained. The loss mounted to Rs 36,000,” Solanke said.Inputs have become expensive — seeds, fertilisers, diesel, mechanised farming and labour costs have all risen sharply — while market prices have sunk into mud.“We sell onions at Rs 4 to Rs 5 per kg while production cost is over Rs 12,” said Bhausaheb Jagtap, a farmer from Pune district. “After paying everybody, nothing is left,” Jagtap said.Prices have been sliding since Feb this year. At Lasalgaon APMC in Nashik — country’s largest onion wholesale market and benchmark for national rates — the kitchen staple is currently selling between Rs 400 and Rs 1,600 a quintal. Nearly 80% of arrivals fetch less than Rs 800 a quintal.In Solapur APMC, arrivals on May 13 touched 14,756 quintals. Prices ranged from Rs 100 to Rs 1,700 a quintal, or Rs 1 to Rs 17 a kg. A year ago, onions sold there for Rs 2,500 to Rs 3,000 a quintal.Growers said break-even price stands near Rs 18 a kg. “Losses are massive because nearly 80% of onions are selling between Rs 400 and Rs 800 per quintal,” said Bharat Dighole, president of Maharashtra Onion Growers’ Association.Market experts blamed a perfect storm: bumper arrivals, weak domestic demand, export disruptions and rain-damaged produce flooding mandis.“Geopolitical tensions involving Iran, US and Israel disrupted export markets and reduced overseas demand,” said Vikas Singh, vice president of Horticulture Produce Exporters’ Association of India.Unseasonal rain between March 19 and 21 added another blow to the farmers. Showers lashed Nashik district just as summer onion harvest began, damaging ready crop and triggering rot during storage. “Only 30% of produce was grade-1 quality,” said Prakash Jadhav, head of onion department at Solapur APMC. “Rain damage and long storage hurt quality.”Farmers are demanding onions be brought under minimum support price, pegging at Rs 3,500 a quintal. Growers’ groups want Maharashtra govt to compensate farmers by Rs 1,500 a quintal for distress sales.(Inputs from Prasad Joshi)



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