Joel Rebello

MUMBAI: Foreign currency borrowings by Indian corporates fell sharply in March this year as high interest rates, a pronounced rupee weakness and increasing hedging costs prevented local companies from borrowing more overseas.

Bank deposit rates are set to rise. Costs for certificates of deposit have increased, signaling banks will soon offer better returns to savers. This is driven by tighter liquidity and higher demand for funds. Experts anticipate deposit rates will move upwards, even without an immediate policy rate hike from the Reserve Bank of India.

The reserve price for the bids, with a June 17 deadline, is Rs 200 crore, showed a document on the website of the process advisor, BoB Capital Markets. It said the residual liabilities represent the net balance remaining following the mandatory deduction of recoveries realised under the resolution plan whereby ArcelorMittal India had taken over Essar Steel in a bankruptcy administration.

JM Financial ARC has emerged as the preferred bidder for Distribution Logistics Infrastructure's ₹971 crore debt, offering ₹621 crore. Lenders, led by Bank of Baroda, will see a 64% recovery. This follows a failed settlement attempt with promoters, with the process expected to take more time.

Bajaj Finserv is launching Finserv Intelligence, a ₹1,500-2,000 crore, five-year initiative to build scalable technology solutions for India and the world. The program will invest in early-stage startups and collaborate with academic institutions to develop capabilities in AI, cybersecurity, and quantum technologies, aiming for transformational medium-term research.

Amidst the backdrop of conflict in West Asia, India's economic landscape finds itself at a crossroads. Although the Reserve Bank of India projects a promising growth outlook, it highlights that increasing geopolitical strife could throw a wrench into the economy's momentum. High energy prices and interrupted supply chains raise valid concerns.

Supreme Housing promoters have a final opportunity to settle their debt with Canara Bank. The National Company Law Appellate Tribunal has ordered a deposit of ₹460 crore by June 13. This is the third chance for the company to resolve its financial obligations. Failure to meet this deadline will allow the insolvency process to proceed.

Jaguar Land Rover has announced a pivotal financial strategy, obtaining a $2 billion loan from leading multinational banks. This endeavor serves to refinance debts that are maturing early next year. With the loan priced at 155 basis points above the SONIA rate, it reflects a savvy approach amidst current market uncertainties.

At the end of FY26, JLR had 5.4 billion of debt outstanding, comprising 1.8 billion of unsecured bonds, 2.9 billion of unsecured loans and 38 million of other debt, according to the company's annual report.

State Bank of India Chairman CS Setty anticipates a Reserve Bank of India interest rate pause to foster stable growth. He highlighted India's future economic expansion depends on boosting entrepreneurship, improving market access, and investing in its large young population. Banks must scale up financing for infrastructure, manufacturing, and green initiatives to meet ambitious targets.