With consumers borrowing to buy everything from cars to cell phones, India’s household debt is estimated to have risen to 15.7% of GDP in March 2018 in 2012-13, the ratio was just 11.7%. With more credit history at their disposal, both banks and non-banking financial companies (NBFCs) have been pushing through loans more easily. The attitudinal shift towards spending, coupled with the EMI culture will keep consumption spends intact even when interest rates rise. What’s interesting is that the average ticket size of loans is falling suggesting an increasing inclusiveness. The decline is attributed to the change in the loan-mix towards short duration consumer loans like credit cards, personal loans and consumer durable loans. Housing credit is expected to grow 18% in the current year with homes becoming more affordable, especially for first time buyers, thanks to incentives provided by government. However, delinquencies for HFCs (housing finance companies) are expected to remain range-bound between 1.2% -1.5% At 15.7% of GDP, household debt in India is fairly low by Emerging Market standards for which the average is 39%.
Private equity firm Everstone Group-backed industrial real estate company IndoSpace and modern logistics and technology-led solutions provider GLP have entered into a long-term strategic partnership. As part of the joint venture (JV), GLP will co-invest in IndoSpace’s managed investment vehicles. The JV will also enable IndoSpace to leverage GLP’s fund management, development and operational expertise and resources, as well as its extensive global customer network.
Tata Steel Ltd has executed definitive agreement to acquire the steel business of Usha Martin Ltd (UML) for a cash consideration of Rs.4,300-4,700 crore ($595-650 million). Tata Steel or any of its subsidiaries or affiliates may carry out this acquisition. The transaction comprises of the proposed acquisition of steel business undertaking of UML through slump sale on a going concern basis.
ICICI Bank has acquired 8.85% stake in Mumbai-based Avenues Payment India Private Limited. The move aims at promoting adoption of digital cross border remittance platforms for corporate and retail customers. The deal size is said to be $1.3 million (Rs.10 crore) and is expected to get complete by the end of October this year.
Florida and India-based CareStack, a cloud-based technology platform for the dental industry, has raised $16 million in a funding round led by Accel, F-Prime Capital Partners, and Eight Roads Ventures. The company will use the funding to expand its cloud-based platform that is helping dental practices across the United States better connect patients, employers, and dentists.
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