English हिन्दी
Connect with us

Latest business news

Bank deposit growth rate falls to lowest in 55 years, says RBI

Published

on

Bank deposit growth rate falls to lowest in 55 years, says RBI

Growth in bank deposits fell to a 55-year low in financial year 2017-18, according to data on Reserve Bank of India website.

Quoting bankers, a report in the Economic Times (ET) said the reversal from the huge deposits collected in light of the November 2016 demonetisation together with the steady movement of savings away from bank deposits to other savings instruments such as mutual funds and insurance has hit growth.

Bank growth rate fell to 6.7 per cent in 2017-18, lowest since 1963, in the financial year ending March 2018.

Banks had see a massive surge in deposits in the wake of Modi government’s demonetisation move that sent out 86 per cent of the currency in circulation. Much of the money that came into the banking system after demonetisation has moved out. The recent acute cash shortage reported by banks from various parts of the country was also blamed on the ongoing trend of withdrawal of excessive money from the banks while deposits fell.

Banks had reported a total deposit of Rs 15.28 lakh crore after demonetisation — almost the entire value of demonetised currency. This had pushed the aggregate deposits in the banks by 15.8 per cent for the fiscal ending March 2017 to Rs 108 lakh crore.

The fiscal ending March 2018 reported the total deposit of Rs 114 lakh crore. This translated into an increase of 6.7 per cent over the last fiscal.

On the other hand, there was growth in other financial instruments. The first premiums (meaning new policies) for insurance investments have increased from Rs 1.75 lakh crore in March 2017 to Rs 1.93 lakh crore in March 2018. The corresponding figure for fiscal ending March 2016 was Rs 1.38 lakh crore, said a report in the India Today (IT).

Mutual funds assets have reported a growth of about 22 per cent between March 2017 and March 2018 – the period during which bank growth rate touched the lowest in five decades. However, there is a catch: the mutual fund assets had grown by 42 per cent – from Rs 12.33 lakh crore to to Rs 17.55 lakh crore – the previous fiscal, that is, between March 2016 and March 2017, said the IT report.

The low bank deposit growth could bring some good news for the customers in the form of increased rate of interest on deposits. The process has already begun. HDFC Bank has already announced a hike in interest rate by up to 100 basis point (0.01%) on fixed deposits for certain tenures, reported ET.

Latest business news

Google reduces 10% of managerial staff to enhance efficiency and ‘Googleyness’

Published

on

Google has pruned its managerial workforce, reducing it by 10% in a move aimed at streamlining operations and redefining its corporate culture in a year-long push. This pruning, part of a broader efficiency drive, includes a 10% cut at manager, director, and vice president levels.

Reports indicate that during an all-hands meeting, CEO Sundar Pichai outlined the rationale behind the decision, emphasizing the need for efficiency and redefining the company’s core values, often referred to as “Googleyness.”

A Google spokesperson revealed that some affected employees would transition to individual contributor roles, while others faced role eliminations. These adjustments come amidst growing challenges in the tech industry, particularly with rapid developments in artificial intelligence (AI) and fierce competition from rivals like OpenAI.

The AI race and Google’s response

The tech giant has recently intensified its focus on AI innovations, unveiling Gemini 2.0, its most advanced AI model yet. Sundar Pichai described the new model as heralding a “new agentic era” in which AI systems are designed to comprehend and make decisions about the world.

This announcement boosted Google’s stock, which surged by over 4% following the news, a day after a 3.5% increase attributed to breakthroughs in its quantum chip technology.

Previous layoffs in 2024

The latest layoffs mark Google’s fourth round of job cuts in 2024. Earlier in January, Google eliminated several hundred positions in its global advertisements team. In June, its cloud unit also saw workforce reductions. By January of this year, Google had already cut 12,000 roles, equivalent to 6.4% of its global workforce.

In a letter addressed to employees during the earlier layoffs, Pichai took responsibility for the decisions, stating that the company had experienced dramatic growth that required adjustments to sustain operations. Despite efforts, he acknowledged the process could have been managed better.

Redefining ‘Googleyness’

At the same meeting, Pichai stressed the need to revisit and reshape the concept of “Googleyness.” This term, often used to define the company’s unique culture and hiring philosophy, will now play a pivotal role in transforming corporate dynamics to adapt to new challenges.

The adjustments highlight Google’s commitment to staying competitive while reshaping its operational framework to remain aligned with its long-term vision.

Continue Reading

India News

Zomato introduces Food Rescue feature

“We don’t encourage order cancellation at Zomato, because it leads to a tremendous amount of food wastage,” he said.

Published

on

Zomato has introduced a new feature called Food Rescue to minimise food wastage, announced the food delivery platform CEO Deepinder Goyal on Sunday.

Announcing the new feature on X, Goyal said the decision, to introduce the new feature, was taken to prevent the tremendous amount of food wastage due to order cancellation on the platform.

Committed to minimising food wastage, the Zomato boss said: “We don’t encourage order cancellation at Zomato, because it leads to a tremendous amount of food wastage.”

Goyal said despite having stringent policies, and a no-refund policy for cancellations, more than 4 lakh perfectly good orders get cancelled, for various reasons by customers.

He said the top concern for the online food delivery platform, the restaurant industry, and even the customers who cancel these orders, is to somehow save the food from going to waste.

With the launch of the new feature, Food Rescue, cancelled orders will now pop up for nearby customers, who can grab them at an unbeatable price, in their original untampered packaging, and receive them in just minutes.

According to Zomato, the cancelled order will pop up on the app for customers within a 3 km radius of the delivery partner carrying the order. To ensure freshness, the option to claim will only be available for a few minutes.

The online food delivery platform will not keep any proceeds except the required government taxes and the amount paid by the new customer will be shared with the original customer (if they made payment online) and with the restaurant partner.

Orders containing items sensitive to distances or temperature such as ice creams, shakes, smoothies, and certain perishable items, will not be eligible for Food Rescue.

Restaurant partners will continue to receive compensation for the original cancelled order, plus a portion of the amount paid by the new customer if the order is claimed, the company said. “Most restaurants have opted in for this feature, and can opt of it easily whenever they want, directly from their control panels,” it added.

The delivery partners will be compensated fully for the entire trip, from the initial pickup to the final drop-off at the new customer’s location, it said.

Food Rescue will show up on the customers’ home page automatically if there’s a cancelled order available for them to grab. The Customers have to refresh the home page to check for any newly available orders which need to be rescued.

Continue Reading

Latest business news

Adani, Torrent compete to purchase Gujarat Titans from CVC Capital

The probable sale of the Gujarat Titans, with the lock-in period coming to a close, will therefore be a defining moment in the changing face of IPL investments.

Published

on

The Adani Group and Torrent Group are currently negotiating a deal with private equity firm CVC Capital Partners to offload a controlling stake in the Indian Premier League franchise Gujarat Titans. According to sources, close to the development, reports say CVC Capital Partners will be looking to sell a majority interest while retaining a minority share in the franchise.

This becomes important because it is aligned with the end of the lock-in period by the Board of Control for Cricket in India (BCCI), which restricts any new teams from selling stakes until February 2025. The three-year-old franchise Gujarat Titans is reportedly worth $1 billion to $1.5 billion. CVC Capital Partners had paid ₹5,625 crore for the franchise in 2021.

A source close to the development pointed out that IPL franchises have attracted many investors’ interest since the league has proved an asset with a good reputation for money-making capabilities and cash flows. This growing interest of investors embodies the financial value and stability that come with the IPL franchises.

Gautam Adani, who owns teams in the Women’s Premier League and UAE-based International League T20, is understood to be one of the serious buyers. In 2023, Adani’s group won the Ahmedabad franchise in the WPL with a bid of Rs1,289 crore, the highest offer. His interests in this potential deal signal his commitment to expanding his footprint in the cricketing world.

Arvinder Singh, COO of Gujarat Titans, exuded confidence in the financial future of the franchise. He said the team was confident of turning profitable in the next media rights cycle, referring to even the original ten IPL franchises that took four to five years to turn profitable. He added confidently that the Gujarat Titans would not only turn profitable but significantly enhance in brand value.
 
This surging interest of investors in it is evidence of the growing financial attractiveness of IPL franchises, driven by healthy revenue streams and an increasing global footprint. The probable sale of the Gujarat Titans, with the lock-in period coming to a close, will therefore be a defining moment in the changing face of IPL investments.

Continue Reading

Trending

© Copyright 2022 APNLIVE.com

Left Menu Icon