Optimism around credit growth :
Latest bank lending survey of RBI sees the credit growth scenario constantly improving in the country. As per the latest report, RBI expects loan demand to improve across sectors. This trend is likely to continue till September 2021.
The survey pointed that higher optimism is reported in the manufacturing and personal loan sectors. The condition is improving as banks have eased their lending norms across the sectors.
This is a forward-looking survey that captures the sentiments of major banks. As per the survey, banks are witnessing a steady growth in credit demand currently. Based on that, we are expecting banks to report positive credit growth in the March quarter.
Big relief for Future Retail:
The Delhi high court has given a green signal to Future Group’s Rs 24,713 crore deal with Reliance Industries. The decision has come as a relief to Future Retail as the high court has removed one major hurdle.
A two-judge bench in its order stated that Amazon has no reason to stall the deal.
Future Group is banking heavily on this deal to prevent a potential bankruptcy. Hence, this decision has come as a major relief for them.
Before this Supreme Court decision, the Competition Commission of India (CCI) and SEBI had also cleared the deal.
DoT in soup over 5G:
The Department of Telecommunication (DoT) is expecting to start 5G trials in the next 2-3 months. While replying to the parliamentary committee, DoT informed that it has already received 16 applications for 5G field trials.
However, the parliamentary committee expressed its displeasure over constant delay in trials. It further asked about the reasons for delay considering that applications were submitted in January.
The parliamentary committee's concerns are valid given that India is already behind the other major countries in terms of 5G implementation. Further delay in completing trails will also postpone the development of the 5G ecosystem in the country.
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