Renowned economist and policy maker Arvind Panagariya, Chairman, 16th Finance Commission, in his latest book ‘The Nehru Development Model’ has documented the economic history of independent India’s first Prime Minister Jawaharlal Nehru’s era and its impact on subsequent policy making. The book offers a detailed view of the policies of that era and provokes thought on what lessons are left to be learnt? The author offers several critical perspectives on Nehru’s economic model including directing scarce capital exclusively to capital-intensive heavy industries, a massive mistake as the approach ignored India’s most abundant resource - labour - leaving many unemployed or underemployed. He also comments on the policy of self-reliance and import substitution industrialization that did not deliver desired results, with India remaining dependent on imports for key commodities. The other key criticisms include neglecting agriculture and labour-intensive industries, which exacerbated poverty, the creation of an inefficient “licence-permit raj” system, a bloated bureaucracy with excessive state control, significantly reducing India’s global trade share from 25% in 1947 to 19% in 1966 and Soviet-inspired central planning that led to a centralized economic approach through the Planning Commission. The author states that these policies stunted India’s economic potential, creating a socialist mindset that persisted long after Nehru’s era and hampered growth until the 1990s liberalization. Watch the exclusive interview with Siddharth Zarabi, Editor, Business Today.
In an exclusive interview with Siddharth Zarabi, Editor of Business Today, SBI Chairman CS Setty addressed concerns about the lag in deposit growth compared to credit growth amidst a capital shift toward stock markets. He noted that recent data shows deposit growth has now overtaken credit growth, signaling a return to equilibrium. Both are expected to stabilize at around 11-12%. Setty emphasized that the transition from savers to investors is a natural progression in a maturing economy, driven by increasing investment opportunities and the ease of investing. He highlighted the role of mutual funds in fostering an investment culture and pointed out the ease of moving funds from savings accounts to fixed deposits as an example of this shift. Importantly, Setty stressed that deposits remain a critical component of the investment basket for individuals. He underscored the importance of balanced asset allocation, advising against concentrating solely on equities and advocating for a diversified investment approach where deposits hold a significant role.
In an exclusive conversation with Siddharth Zarabi, Editor of Business Today, SBI Chairman CS Setty shared his perspective on the tax treatment of fixed deposits and how it could be leveraged to incentivize savings. He emphasized the unique characteristics of deposits, such as safety, liquidity, and stability, which set them apart from higher-yield investment options like mutual funds or equities. Setty suggested that reducing the minimum tenure for tax benefits from five years to three years could encourage long-term savings. However, he noted that taxation alone might not significantly influence investment decisions, as many individuals are drawn to alternative investments for higher returns. Highlighting the critical role of fixed deposits in financial planning, Setty reiterated their enduring value in providing security and stability to investors.
In an exclusive conversation with Siddharth Zarabi, Editor, Business Today, SBI Chairman CS Setty shared insights on the future trajectory of 'YONO 2.0,' the next iteration of the State Bank of India's flagship digital platform. Highlighting the revolutionary impact of 'YONO 1.0,' Setty emphasized how it transformed banking by integrating marketplace features, non-banking financial services, and seamless customer journeys. He elaborated on the vision for 'YONO 2.0,' stating that while mobile continues to dominate as a powerful device, the platform will expand beyond mobile offerings. It aims to unify customer experiences across channels, including branch services, internet banking, and feet-on-street operations. The focus is on creating a seamless, omnichannel experience where customers can begin a transaction on one platform and continue it seamlessly across others. Setty also stressed the importance of reimagining brand journeys, integrating contact center operations, and leveraging desktop banking to ensure an interconnected and efficient banking ecosystem. YONO 2.0 is poised to redefine digital banking by breaking down silos and creating a unified experience for customers.
In an exclusive conversation with Siddharth Zarabi, Editor, Business Today, SBI Chairman CS Setty shared insights on India's GDP growth expectations. Highlighting India’s resilience, Setty emphasized that the nation’s growth must be viewed in a global context, where the IMF projects a global growth rate of 3.2%, while India aims for around 7%. Acknowledging a slowdown in the last two quarters, he downplayed concerns over a single quarter’s decline, asserting that India’s economic potential remains robust. He projected a growth rate of 6.5% for the full year, driven by rural consumption and government expenditure, which he believes signals a strong recovery trajectory.
In an exclusive interview with C.S. Setty, Chairman of the State Bank of India, he shares his insights on the evolving financial landscape and SBI's role in driving economic growth. The conversation spans key topics such as the importance of incentivizing long-term savings through fixed deposits, the rise of alternative investment options, and the significance of safety and stability in financial instruments. Setty delves into the dynamics of retail credit growth, highlighting the post-COVID surge, the critical role of home loans, and the regulatory focus on unsecured credit. He underscores SBI's commitment to enabling first-time homebuyers while maintaining low delinquency rates. Addressing India's economic outlook, Setty remains optimistic about the country’s growth potential, even in the face of global headwinds, projecting a 6.5% GDP growth rate driven by rural consumption and government spending. He also comments on the persistent calls for rate cuts, balancing inflation concerns with growth imperatives. As he reflects on his journey in the "corner office," Setty describes it as an enriching experience, balancing immense responsibility with the privilege of leading a bank that touches the lives of millions. Watch this exclusive conversation with Siddharth Zarabi, Editor, Business Today, as C.S. Setty shares his vision and thoughts on SBI's pivotal role in shaping India's financial future.
Watch Ashok Vaswani, the CEO of Kotak Mahindra Bank, in conversation with Siddharth Zarabi, Editor of Business Today, as they discuss the evolving landscape of banking, fintech, and the role of innovation in driving India's financial growth. Vaswani offers a deep dive into the accelerating adoption of UPI (Unified Payments Interface) and how it is reshaping the way Indians engage with banking and payments. He highlights the significance of digital transformation in India's banking sector and discusses the emerging challenges that banks face as they work to stay ahead of technological advancements and regulatory changes. Vaswani speaks about Kotak Mahindra Bank’s efforts to stay at the forefront of the digital banking revolution, underscoring the importance of integrating cutting-edge technology with customer-centric solutions. He discusses how the bank’s approach to service delivery, risk management, and technological innovation has allowed it to scale while adapting to rapidly changing customer needs. Further, the interview explores India's shift from being a nation of savers to becoming one of investors, noting how products like fixed deposits and digital investment tools are evolving. Vaswani emphasizes that with more people exploring the investment market, it’s crucial for institutions to offer products that cater to diverse investor needs, all while ensuring transparency and security. Throughout the conversation, Vaswani underscores the importance of regulatory frameworks in fostering a stable financial environment, highlighting how regulations must evolve alongside fintech innovations. This candid interview provides valuable insights into the future of banking, fintech, and investment, shedding light on the key strategies and developments that are shaping the financial services landscape in India. Whether you're a banking professional, fintech enthusiast, or investor, this discussion offers crucial perspectives on India’s economic future.
The jury for the 29th edition of the BT Best Banks Awards 2023-24 convened to assess India’s banking and NBFC sectors. The esteemed panel featured Jayant Sinha, Former Chair, Standing Committee on Finance and MoS Finance; Dinesh Kumar Khara, Former Chairman, State Bank of India; Kalpana Morparia, Former Chairperson of J.P. Morgan, South & Southeast Asia; Subhash Chandra Garg, Former Finance Secretary & Secretary, Department of Economic Affairs, Union Ministry of Finance; and Gunit Chadha, Founder & Managing Director, APAC Financial Services; Former CEO, Deutsche Bank, Asia-Pacific. Moderated by Business Today Editor Siddharth Zarabi, the jury explored crucial issues such as financial stability, technological advancements, digital banking ease, and global banking trends. They evaluated India’s banking sector's readiness to support the ‘Viksit Bharat’ vision while spotlighting top performers across banks, NBFCs, and fintech firms shaping the country’s financial future.
"Dharmanomics: An Indigenous and Sustainable Economic Model" by Sriram Balasubramanian is a groundbreaking exploration of India's economic legacy. The book presents a coherent and structured economic framework rooted in the concept of Dharma, which has influenced economic policy for over 2,500 years. Balasubramanian argues that Dharma has been central to India's economic policies, alongside the principles of Kautilyan Dharmic capitalism, the Dharmic ecosystem, and the role of Srenis in shaping economic decisions. Drawing on both inscriptive and anecdotal evidence, the book highlights the continuity of Bharatiya economic policy, Within a week of its launch, the book has already become a category bestseller.Sriram Balasubramanian is a renowned economist and bestselling author, currently based at one of the leading international monetary institutions. With a background that includes working with prominent global organizations like the International Monetary Fund (IMF), his expertise spans global macroeconomics, socio-economic trends in emerging markets, and the intersection of Indic and Dharmic culture with economics. As an independent columnist, he has contributed to respected international publications such as Bloomberg, Foreign Policy, The Wall Street Journal, and Vox EU. In addition to "Dharmanomics," Balasubramanian has authored several notable works, including the bestselling "Kautilyanomics for Modern Times," as well as "JAMBA: The Joint Family" (which was shortlisted for the Third Annual IAAC Literary Festival) and "The Wizards," featured in various publications including The Hindu. An alumnus of Columbia University in New York, he resides in the Washington DC/Maryland area with his family. Watch Siddharth Zarabi, Editor of Business Today in Conversation with Sriram Balasubramanian, Economist and the Author of Dharmanomics: An Indigenous and Sustainable Economic Model.
Tata Power has achieved its highest-ever quarterly profit, posting a 51% year-on-year increase to ₹1,533 crore in Q2FY25. With an EBITDA growth of 23% YoY, reaching ₹3,808 crore, Tata Power continues to strengthen its market position. The company also boasts a robust solar EPC order book of ₹15,900 crore and has surpassed a total installed generation capacity of 15 GW, of which ~12.9 GW is in clean and green energy. Tata Power’s transmission assets now total 7,049 Ckm, supporting its extensive network and green objectives. Notably, this marks its 20th consecutive quarter of profit growth. With a CAPEX investment of ₹5,200 crore in Q2 and a total H1 investment of ₹9,100 crore, Tata Power remains on track to meet its full-year growth target. Join Tata Power’s MD & CEO, Dr. Praveer Sinha, in conversation with Business Today TV Managing Editor Siddharth Zarabi to learn more about the company’s Q2 results and future growth trajectory.
Shyam Srinivasan, who has served as the Managing Director and CEO of Federal Bank since September 23, 2010, is set to be succeeded by KVS Manian, the former Joint Managing Director at Kotak Mahindra Bank Ltd. Srinivasan's tenure, spanning 14 years, concludes on September 22, 2024. Under his leadership, Federal Bank has achieved significant milestones and growth. Recently, Federal Bank reported its financial results for the quarter ending June 30, 2024, marking a record high in quarterly profit, which increased by 18.25% to ₹1,010 crore. Total business for the bank rose by 20% to ₹4,86,871 crore, driven by strong gains in both deposits and advances. The operating profit reached an unprecedented ₹1,500.91 crore. Key performance metrics include an improved Return on Assets (ROA) of 1.27% and a Return on Equity (ROE) of 13.64%. Asset quality remained strong with Gross NPA at 2.11% and Net NPA at 0.60%. Total deposits grew by 19.58%, and net advances increased by 20.34%. Net Interest Income (NII) surged by 19.46% to ₹2,291.98 crore, showcasing Federal Bank's robust financial health and strategic growth. Watch Shyam Srinivasan, MD & CEO of Federal Bank, in conversation with Business Today TV Managing Editor Siddharth Zarabi.
In an exclusive interview, Samir Modi, Executive Director of Godfrey Phillips India, addressed claims regarding the accumulating losses of up to ₹700 crore in the 24Seven retail business. Samir clarified that he cannot be held responsible as he is not the Managing Director and reports directly to the board of Godfrey Phillips India (GPI). He questioned why the business was not shut down five years ago if the board felt it was not sustainable. Samir further pointed out that similar scrutiny should be applied to the company's Managing Director, Bina Modi, who presided over a 2% loss in market share and has overseen accumulated reserves of ₹3,000 crores that have not been distributed to shareholders. He expressed concerns, emphasizing that the board was informed of the company's numbers regularly but chose to remain silent until now when he began asking questions on behalf of shareholders. Samir suggested that the recent actions against him were motivated by his decision to question the declining performance of the company, which has led to attempts to remove him from the board. He also disputed claims that there was any formal recommendation by the Nomination and Remuneration Committee (NRC) to shut down 24Seven, asserting that no such report exists in the public domain and that the claims against him are baseless.
In an exclusive interview, Samir Modi, Executive Director of Godfrey Phillips, addressed the ongoing family dispute with his mother and its impact on the company. Samir expressed his Concern over the unresolved conflict, revealing that he has made numerous attempts to resolve the issue, including standing outside his mother's house and office for hours, seeking answers to the reasons behind their dispute. He emphasized that his goal is to end the conflict and focus on building the business, not destroying it. Samir mentioned that his late father, KK Modi, had envisioned a future where the family would work together to preserve the legacy and continuity of the business. He shared that his father's wish was for his mother and sister to run Chemicals Segment while he and his brother managed Godfrey Phillips India (GPI). Samir urged for a division of responsibilities that would protect the family legacy, ensure succession, and maintain continuity.Samir also clarified that while he did not oppose the retail sale decision, he was against the manner in which it was executed, particularly due to its impact on the 1,000 employees and the destruction of shareholder value. He reiterated his commitment to the company’s slogan, "People First," and expressed his willingness to find a solution that would end the dispute and allow the family to move forward in a way that honors his father's legacy and protects the company's future.
The boardroom battle at Godfrey Phillips India between Bina Modi and her son Samir Modi is intensifying as the Annual General Meeting (AGM) approaches on September 6, a critical event that will determine the future of the company's leadership. Proxy advisory firms Institutional Investor Advisory Services (IiAS) and ISS have advised shareholders to vote against the reappointment of Bina Modi as Managing Director, citing concerns over her ability to commit sufficient time to her role and her remuneration, which they argue is not aligned with the company's size and operations. On the other hand, the Nomination and Remuneration Committee (NRC) of Godfrey Phillips has decided against the reappointment of Samir Modi to the board, questioning his conduct during board meetings and beyond, which the company claims violates his fiduciary duties as an Executive Director. In an exclusive interview, Samir Modi expressed frustration over the NRC’s decision, highlighting his long-standing service to the company since 1994. He questioned the reasons behind the NRC's decision, emphasizing his contributions to building successful brands like 'Focus' for GPIL and his extensive experience in the tobacco industry. Samir also noted that the decision not to recommend his reappointment was in contempt of a court order that required his name to be put forward by his mother, Bina Modi, to the NRC. Samir argued that the final decision rests with the shareholders at the upcoming AGM, where they will vote on whether to retain him on the board. He contrasted his years of experience and contributions to the company with his mother’s age and questioned why his long-standing service is now being dismissed as misconduct. The outcome of the AGM will be crucial in determining the leadership and future direction of Godfrey Phillips India.
Godfrey Phillips shares dropped 5% following reports of the company finalizing the sale of its 24Seven retail business to the start-up New Shop. The transaction is set to be completed by the end of September. In an exclusive interview with Business Today TV Managing Editor Siddharth Zarabi, Samir Modi, Executive Director of Godfrey Phillips, expressed his concern about the sale and the broader direction of the company. Samir Modi highlighted that he is pro-shareholder and that his primary concern is the company's long-term value and growth. He questioned why the company, with over ₹3,000 crores in reserves and no expansion plans, is not distributing these funds to shareholders. Modi emphasized his track record of building successful businesses, including launching a top brand for Godfrey Phillips within just 55 days. He criticized the decision to shut down 24Seven, noting that the market reacted negatively to the news and argued that shareholders were cheated by this move. Modi pointed out that while brands take a long time to build, they can quickly lose value if not properly managed, a concern he believes should worry shareholders.
Godfrey Phillips shares slipped 5% following reports of the company finalizing the sale of its 24Seven retail business to the start-up New Shop. The transaction is expected to be completed by September-end, with the transition of 24Seven's shops and assets already in progress. In an exclusive interview with Business Today TV Managing Editor Siddharth Zarabi, Samir Modi, Executive Director of Godfrey Phillips, expressed his concerns over the sale. He highlighted that the retail business was established under the guidance of his late father, KK Modi, to create an alternative income stream, similar to ITC's diversification from tobacco. Samir Modi opposed the sale, pointing out that 24Seven had begun to generate profits and employed 1,650 people. He questioned the decision to sell the business at a loss, arguing that it could have been sold as a running concern to recover losses. Modi also criticized the management changes made during the sale process, suggesting that these decisions lacked logic and did not maximize value for the company. Despite his concerns, Samir Modi stated that he did not oppose the board's decision but emphasized the missed opportunity for a more beneficial outcome.
Amid a fierce boardroom battle at Godfrey Phillips India, proxy advisory firms Institutional Investor Advisory Services (IiAS) and ISS have advised shareholders to vote against the reappointment of Bina Modi as Managing Director. The upcoming Annual General Meeting (AGM) on September 6 will be pivotal, as shareholders decide on Bina Modi’s reappointment. ISS has raised concerns about her ability to commit sufficient time to the role, given her position as Chairman and Managing Director of Indofil Industries Ltd. Additionally, the advisory firm noted that Bina Modi's remuneration, while competitive within the industry, may not align with the company’s size and scale, potentially creating conflicts of interest. Tobacco major Godfrey Phillips faces a critical juncture as it navigates leadership and governance challenges amid a prolonged family dispute. Catch an exclusive interview with Samir Modi, Executive Director of Godfrey Phillips, with Business Today TV Managing Editor Siddharth Zarabi.
Bank of India (BoI) has reported a 10% year-on-year (YoY) increase in net profit for the quarter ending June 2024 (Q1FY25), reaching Rs 1,703 crore compared to Rs 1,551 crore in the same period last year. Net interest income (NII) grew by 6% YoY to Rs 6,275 crore, up from Rs 5,915 crore, driven by strong advances in growth. However, non-interest income fell by 12% YoY to Rs 1,302 crore. The net interest margin improved to 3.07% in Q1FY25, up 14 basis points from the previous quarter. Provisions surged 57% YoY but declined by 29% sequentially, totalling Rs 1,293 crore. Gross slippages amounted to Rs 2,973 crore, with MSME sector slippages at Rs 1,056 crore, retail at Rs 588 crore, and agriculture at Rs 737 crore. Corporate slippages for the quarter were Rs 564 crore. Business Today TV's Siddharth Zarabi speaks with Rajneesh Karnatak, MD & CEO of Bank of India, about the bank's first-quarter results, NPAs, net interest income (NII), CASA, and growth strategies for FY25.
Yoga guru Swami Ramdev, in an exclusive interview with BTTV Managing Editor Siddharth Zarabi, outlines ambitious plans for the Patanjali group. With a current turnover of Rs 50,000 crore, the group aims to surpass Rs 1 lakh crore market capitalization. Renaming Ruchi Soya to Patanjali Foods, it has already emerged as India's largest food company, aspiring to lead globally. Patanjali boasts dominant market shares: 60% in Nutrela, nearly 70% in ghee, and up to 70% in edible oils. Ramdev envisions capturing 50% of the market in hair care, dental care, and skin care, aiming for Patanjali to become India's and eventually the world's largest personal care company, emphasizing the safety and affordability of their products as global attractions.
Yoga guru Swami Ramdev is as at ease in talking about revenues and profits, as he is in twisting his lithe and supple frame into an asana. Having taken sanyas in 1995, Ramdev, who prefers to be referred to as the Mentor and Spiritual Head of the Patanjali group, pulls no punches when it comes to taking on multinational companies in the FMCG space. As part of that ambition, Patanjali Foods Ltd (erstwhile Ruchi Soya Ltd) has acquired the home and personal care business of Patanjali Ayurved Ltd for Rs 1,100 crore, and a 20-year licensing arrangement for a three per cent turnover based fee. The deal aims to strengthen the company’s position in the fast-moving consumer goods sector. In an interaction with Business Today TV Managing Editor Siddharth Zarabi, Ramdev, who is the co-founder of Patanjali Ayurved, and Director of Patanjali Foods, spoke on his plans to expand the Patanjali business empire in the years to come, the acquisition of the non-food business and his ambitions for a Rs 1-lakh crore turnover in the FMCG space, and more.
In an exclusive interview with Business Today TV's Managing Editor Siddharth Zarabi, Yoga Guru Swami Ramdev discusses the economic dynamics and ethical challenges within the agriculture and FMCG sectors. Swami Ramdev emphasizes that Patanjali Foods is content with modest 3-5% margins, contrasting sharply with other FMCG giants struggling to sustain operations below 10-12% margins. He highlights the disparity where the agriculture sector operates on a slim 2-5% margin, while corporate entities target much higher 10-20% EBITDA margins, often resorting to unethical practices that undermine farmer trust. Patanjali's pioneering success with its food park. Beyond food, Patanjali has diversified into higher-margin segments like dental and hair care skin care, achieving margins up to 30%. Swami Ramdev underscores the integration of food, FMCG, personal care, and home care sectors, enabling effective and sustainable operations. However, he acknowledges the challenges of profitability in the low-margin food business, necessitating careful capital management and cost control. Swami Ramdev and Acharya Balkrishna lead by example, forgoing salaries to minimize management costs and eliminate waste, contributing to the success of the world's largest food park. With robust support from national and international investors, Patanjali currently holds a market cap of approximately Rupees 50,000-60,000 crore. Looking ahead, Swami Ramdev envisions Patanjali becoming a powerhouse with a market cap of 1 lakh crore and ultimately 5 lakh crore, aiming to empower farmers, enrich India's economy, and promote consumer health through affordable, high-quality products. As health concerns gain prominence, he stresses the need for integrated solutions spanning agriculture to economic sustainability.
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