18th December- Industry Monitoring (Spice Money)
- Priyanka Kanodia
- Dec 28, 2018
- 5 min read
Spice Money
Industry News
Why Bandhan Bank share rallied 19% in four days?
Publication-Business Today
Edition- Online
Date- 18 December, 2018
Shares of private sector lender Bandhan Bank jumped nearly 5 per cent on Monday, notching a month high on Bombay Stock Exchange, after the Reserve Bank of India (RBI) allowed the bank to open new branches.
What happened?
In the last four trading session, shares of the Kolkata-based lender surged 19 per cent from Rs 468.90 on December 11, as the bank's founder and CEO Chandra ShekharGhosh said the bank would add another 40 branches by December 31, taking the total number to 978.
Extending its gaining streak, shares of the bank gained as much as 4.67 per cent to touch an intra-day high of Rs 558.00 apiece on the Bombay Stock Exchange, after opening marginally higher at Rs 534.30 against previous closing of Rs 533.10.In a similar trend, stocks of the lender were trading at Rs 554.80, up 3.93 per cent on the National Stock Exchange.
Now what
Bandhan Bank opened five branches on December 12, and plans 40 more before the end of this month.The Reserve Bank of India had earlier imposed restrictions on Bandhan Bank's branch expansion, after it failed to pare promoters' stake to 40 percent from close to 82 percent, within the stipulated three-year time frame.Last week, the bank received an exemption from the Securities and Exchange Board of India with respect to lock-in of one year on the equity shares held by the promoter and eligibility condition of one year from listing, in order to comply with the requirements of RBI licensing guidelines.
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After liquidity crunch hits NBFCs: It’s good timesfor invoice discounting companies
Publication-The Economic Times
Edition- Online
Date- 18 December, 2018
One sector’s woes can be another’s blessing. Invoice discounting firms, from the stateapprovedTReDS to the fintech firms, are experiencing accelerated growth since the liquidity-crunch hit NBFCs earlier this year. Fintech firms are claiming that small and medium enterprises are discounting bills worth more than. Rs 1,000 crore a month as they try to improve their working capital needs with the Non-Banking Finance Companies holding back from lending, said industry executives. “We have seen a 30-40% spurt in enquiries since the NBFC liquidity-crunch in September. Most of the NBFCs have taken back their existing lending limits drastically leaving SME players short of working capital. As awareness about our platform improves, we expect more transactions to happen on our channel,” said Anurag Jain, co-founder of KredX, a leading bill discounting fintech. Reserve Bank of India approved TReDS, or Trade Receivables Discounting System, is another platform, launched in December 2016, that provides an opportunity for SMEs to get quick payments against the invoice they have against big companies.
These are discounted and bought by potential investors including banks, releasing the much-needed working capital for small companies. With NBFCs clamping up, more firms are using these platforms. With PM Modi making it mandatory for all companies with a turnover of over. Rs 500 crore to be part of the TReDS system in November this year to help alleviate stress in the credit crunched SME sector, the volume of transaction is expected to grow higher, according to regulators and industry players. 0 Comments Save “In the SME sector, payment on time is a problem,” said KalyanBasu, chairman, Invoice art, a leading TReDS platform backed by Axis Bank. “Once they (SME players) are classified correctly in the books of the buyer under the MSME Act, they can come in the system and can be assured of correct payment on time.”
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October fest for digital payments; card deals spike
Publication-The Economic Times
Edition- Online
Date- 18 December, 2018
Digital payments saw a spike in October in both the number of card transactions and the amount paid, attributed by industry executives largely to festive season sales across ecommerce websites and retail outlets. As per data released by the Reserve Bank of India, debit cards got swiped 8.5% more in October than the previous month, at 393 million, and the jump was nearly double that in the case of credit cards, up 16.5% at 161 million. The amount paid through debit cards was up 18.4% at Rs 54,298 crore in October against Rs 45,841 crore in September. In the case of credit cards, the amount was 21.8% higher in October, at Rs 56,178 crore, than Rs 46,101 crore in the previous month. The spurt was much more than that seen in the previous months, when growth ranged between 1.5% and 2% on average.
“We are attributing this growth to Diwali sales since the trends have continued from October to November as well and the jump has been across the board for the various sectors we cater to,” said Manish Patel, founder of MSwipe, which deploys mobile point-of-sales (PoS) terminals at merchant outlets. Patel said that several card networks such as RuPay also ran many promotional offers on debit card purchases which could have encouraged consumers to opt for this mode of payment. New segments such as fuel and food delivery also saw more digital transactions than they usually do. “The incentives that the government is running on debit cards have helped drive especially transactions at petrol pumps and we can see a 70-80% jump in terms of the number of transactions over last year,” said DewangNeralla, CEO of Atom Technologies, which deploys payment terminals for multiple banks.
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Payments firm Ingenico working on new strategy plan after dropping deal talks
Publication-ET Tech
Edition- Online
Date- 18 December, 2018
Payments company Ingenico, which had attracted bid interest after a string of profit warnings, said it had dropped talks over a possible deal and was working on a new strategy plan."Ingenico Group...hereby announces that it will not pursue discussions in response to the preliminary approaches for a strategic transaction that it has received," the company said in a statement on Monday.Ingenico shares were down 4% following its decision to abandon deal talks, taking their losses this year to around 40%.
Last month, Ingenico named Nicolas Huss as chief executive to lead the company's strategic review, and Huss' appointment had led some analysts to speculate that he might be amenable to bid offers for Ingenico. Sources had told Reuters that Ingenico had attracted bid interest from Edenred and Natixis, only for those two companies to decide against making any offer.Increasing use of smartphones to make online payments has triggered consolidation in the payments industry.
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https://tech.economictimes.indiatimes.com/news/corporate/payments-firm-ingenico-working-on-new-strategy-plan-after-dropping-deal-talks/67138400
Google, Amazon and Facebook may use payments data to drive retail sales: Report
Publication-Money Control
Edition- Online
Date- 18 December, 2018
Google, Facebook and Amazon may soon use their payments transaction data to support and diversify their retail offerings, Business Standard reported. These companies entered India's growing payments industry through the United Payments Interface (UPI).SundarPichai-led Google recently launched the shopping tab on its search engine. Amazon India pumped Rs 400 crore in Amazon Pay in 2018, and partnered with many e-commerce platforms.Facebook's Instagram will soon bring the shopping feature in India, which is already functional in 46 countries, a company spokesperson told the paper.
The digital payments opportunity has interested the global technology giants, who are creating platforms for engagement of end customers, according to Kalpesh J Mehta of Deloitte. "Payments is an essential part of commerce. Payment behaviour is seen to generate datasets, which lets such platforms enrich their customer profile that can be consolidated and monetised. This seems to have galvanised the interest of the large platforms," he added.The companies are also enhancing their payments offerings, including loans and cards. Payments data is used to push select retail products and the user history comes in handy to proposition financial products like loans, a banker said.
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https://www.moneycontrol.com/news/business/google-amazon-and-facebook-may-use-payments-data-to-drive-retail-sales-report-3299171.html
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