Widening CAD likely to increase borrowing costs

The widening current account deficit (CAD), which is projected to cross 2.6 per cent of the gross domestic product (GDP) this year, coupled with the rupee plunge, is likely to increase borrowing costs for corporates and bring down the overall volume of fresh forex loans, says a report.

By losing over 9 per cent year-to-date, the rupee is the worst performing among ma­jor emerging markets cu­r­rencies. The currency dip to a new low on Monday at 70.15 against the dollar.

Coal imports may rise to 62 mt in FY19

Higher demand for thermal power and lower-than-required growth in domestic coal output may push up coal imports to 62 million tonnes this fiscal, says India Ratings. According to the agency, imported coal requ­irement is likely to increase to 62 million tonnes this fiscal from 56 million tonnes in FY2018 to meet the incremental power generation.

Shares of cash-rich power companies, banks surge

Stocks of cash-rich power companies rallied on Monday, while power developers fell following a Allahabad High Court order. Anuj Upadhayay, research analyst, power sector, Emkay Global Financial Services, said, “The banks can file case once the deadline is over, which means these stressed power assets could be sold at dirt cheap rates to cash rich companies, this may have triggered the upmove as otherwise there is no developments to push these stocks up.”

MF AUM to double to Rs 50L cr in 5 years: Deepak Parekh

The mutual fund industry's asset under management is set to double in the next five years to Rs 50 lakh crore, said Deepak Parekh, chairman, HDFC while sharing his vision for the mutual fund industry at the 2nd Mutual Fund Summit organised by the Association of Mutual Funds in India, the industry body. However, Parekh advised the industry and Amfi to ensure a disciplined approach and grow prudently as some players irrational approach may cause harm.

Parekh said, “I see doubling of AUM in next five years from Rs 24 lakh crore to Rs 50 lakh crore.”

Sebi chief redflags credit risks in MFs

Sounding a cautious note, Sebi chairman Ajay Tyagi on Thursday said mutual fund managers need to be vigilant while holding debt instruments and should appropriately value the credit risk in their books.

Top shareholders to subscribe to IL&FS rights issue

All the large shareholders of the Infrastructure Leasing & Financial Services (IL&FS) namely Life Insurance Corporation of India (LIC), State Bank of India (SBI), HDFC Ltd and Orix Corporation Japan would be subscribing to its Rs 4,500 crore rights issue that is likely to close by September. The board of IL&FS would be meeting on August 29 to decide on the price for the rights issue, a source told

Financial Chronicle.

The source said, “Everybody (shareholders) is on board. We will be meeting on August 29 to discuss the pricing.”

Need to whittle down thrust on consortium lending, says SBI chairman

State Bank of India (SBI) chairman Rajnish Ku-mar on Monday called for scaling down thrust on consortium lending, saying over-dependence on this has only led to bad loan pile-up as it has been inordinately delaying loan appraisals. He also said NPAs rose because bankers don’t approach a borrower with the mind of a CBI/ED sleuth, but with trust.