Newsmakers: S&P on banks' asset quality, BigBasket raises $150 mn for expansion and more

Banks' asset quality to remain under pressure this year: S&P
Indian banks' asset quality and capitalisation are likely to remain under pressure in the next 12 months mainly because of tepid industrial activity and high leverage by some corporates, Standard & Poor's said. "We expect profitability of Indian banks to decline over the next two to three quarters because banks recently cut base lending rates, and their credit costs are likely to remain high," S&P credit analyst Amit Pandey said.

Edelweiss to acquire JP Morgan's MF business in India
Edelweiss Asset Management on Tuesday announced the acquisition of global giant JP Morgan's mutual fund business in India that has assets worth over Rs 7,000 crore, marking yet another exit of a foreign fund house from the over Rs 13 lakh-crore industry. Under the deal, Edelweiss will acquire all onshore fund schemes managed by JP Morgan Asset Management India including its country-based onshore mutual fund business and the international fund of funds, subject to regulatory approvals, Edelweiss said in a statement.

Govt to buy back inflation-indexed bonds worth Rs 3,298 crore
The government said on Tuesday it will buy back the WPI-linked inflation indexed bonds worth Rs 3,298.72 crore on March 28, a move aimed at infusing liquidity into the markets. In a statement, the Finance Ministry announced repurchase of "1.44 per cent Inflation Indexed Government Stock-2023" through reverse auction for an aggregate amount of Rs 3,298.72 crore (face value)".

RBI to cut rates by 25 bps on Apr 5: BofA-ML
The Reserve Bank is likely to go for a 50 basis points rate cut next fiscal year and out of this 25 bps cut may be affected in the policy review meet next month amid slackening economic recovery, says a report. The financial services firm said it estimated that old GDP growth slipped to 4.6 per cent in the December quarter, well below our calculated 7-7.5 per cent potential. Our lead industrial indicator is slipping as industrial production contracted for three consecutive months through January.

BigBasket raises $150 mn for expansion
Grocery delivery service BigBasket has raised $150 million in fresh funding in a round led by UAE's Abraaj Group as the company looks to expand its services into smaller cities, the investor said. Existing investors Bessemer Venture Partners and Helion Advisors along with International Finance Corp and Sands Capital participated in the round, Abraaj said in a statement.