Archives January 2025

CHENNAI: Federal Bank announced the Financial Results for the quarter ended 31st December 2024. The key highlights of the results are as follows:

The Bank has delivered its highest-ever operating profit, achieving a remarkable ₹1,569.46 crore. The Bank’s sustained focus on growth and operational excellence has also led to an impressive financial trajectory, highlighted by the following key metrics:

•  Operating Profit: Highest ever at ₹1,569.46 crore.
•  Net Interest Income: At an all-time high of ₹2,431.34 crore, reflecting a 14.50% YoY growth.
•  Fee Income: Witnessed a strong 21% YoY growth.

The Bank has achieved its best asset quality performance in over a decade, reflecting its robust risk management framework and commitment to financial prudence. Key highlights are:

•  Gross Non-Performing Assets: Reduced to 1.95%.
•  Net Non-Performing Assets: Declined to 0.49%.
•  Provision Coverage Ratio: Strengthened to 74.21%.

The Bank continues to demonstrate strong business momentum, with substantial year-on-year growth across deposits, advances, and key product categories.Highlights of the Bank’s performance include:

• Total Deposits: Increased by 11% YoY, reflecting strong customer trust and engagement.
•  Total Net Advances: Achieved a growth of 16% YoY, driven by focused lending strategies.
• Average CASA: Grew by 11% YoY, underlining the strength of the Bank’s core business engine
•  NRE Deposits: Registered a solid 10% YoY growth, showcasing the Bank’s popularity among non-resident customers.
•  Credit Cards: Expanded by 24% YoY, reflecting enhanced customer adoption.

 Commercial Vehicle/Construction Equipment (CV/CE) and Micro Advances: Delivered robust growth of 39% and 50% YoY, respectively.

Management Commentary

Mr. KVS Manian, MD & CEOstated “This quarter has been pivotal for us as we strategically reoriented both the asset and liability sides of our balance sheet, addressing fundamental aspects to position the Bank strongly for the future. We have chosen to focus on granular retail deposit growth instead of high value, expensive deposits. We have also consciously avoided low yielding or high-risk assets for the sake of growth. Notwithstanding this disciplined approach, we have achieved a year-on-year growth of 15% in advances and 11% in deposits, positioning us competitively within the sector. We achieved this with minimal disruption. Our asset quality has reached its strongest levels in a decade. In alignment with our commitment to building a robust foundation, we have undertaken accelerated provisioning for certain riskier asset classes this quarter. We remain steadfast in our focus on building a high-quality franchise that delivers value to all stakeholders whether through superior customer service and relationships, an enhanced employee proposition, or consistent and sustainable earnings quality. As we look ahead, we are optimistic about future opportunities and confident in our ability to create enduring value for all our stakeholders.”

Strong Growth and Resilient Balance Sheet Performance

The Bank continues to demonstrate strong growth and resilience, with the total business of the Bank reaching ₹4,96,744.97 crore as of 31st December 2024, reflecting a robust year-on-year growth of 13.21%.

•  Deposits: Total deposits increased from ₹2,39,591.16 crore as of 31st December 2023 to ₹2,66,375.43 crore as of 31st December 2024.
•  Advances: On the asset side, net advances grew from ₹1,99,185.23 crore as of 31st December 2023 to ₹2,30,369.54 crore as of 31st December 2024. Key segments contributing to this growth include:

o Retail Advances: Up by 13.00%, reaching ₹73,498.54 crore.

o Business Banking Advances: Increased by 13.21% to ₹18,923.18 crore.

o Commercial Banking: Registered a substantial growth of 24.76%, reaching ₹25,880.00 crore.

o Corporate Advances: Achieved a 7.62% growth, totalling ₹77,464.94 crore.

o Commercial Vehicle/Construction Equipment Advances: Recorded outstanding growth of 38.53%, reaching ₹4,235.00 crore.

Highest Ever Operating Profit

Federal Bank delivered its highest-ever operating profit of ₹1,569.46 crore for the quarter ended 31st December 2024. This achievement underscores the Bank’s strong financial performance and operational efficiency. The Bank also reported a robust net profit of ₹955.44 crore for the same period.

Highest Ever Net Interest Income:

•  NII grew by an impressive 14.50%, reaching an all-time high of ₹2,431.34 crore as of 31st December 2024, compared to ₹2,123.36 crore in the previous year.
•  Total income increased by 17.17%, reaching ₹7,724.90 crore.
•  Earnings per Share on an annualized basis stood at ₹15.45.

Robust Asset Quality:

•  Gross NPA: ₹4,553.31 crore, constituting 1.95% of gross advances.
•  Net NPA: ₹1,131.17 crore, representing 0.49% of net advances.
•  Provision Coverage Ratio (excluding technical write-offs) stood at 74.21%.
•  Recovery and upgradation during the quarter totalled ₹335 crore.
•  The Bank has recognized accelerated provisioning of ₹292 crore during the quarter.

Net Worth and Capital Adequacy:

•  The Bank’s net worth increased to ₹32,077.05 crore as of 31st December 2024, compared to ₹28,084.72 crore in the previous year.
•  Capital Adequacy Ratio, as per Basel III guidelines, was a strong 15.16%.

Expanding Footprint:

• The Bank now operates 1,550 banking outlets, including 46 new outlets in FY25, alongside 2,054 ATMs and cash recyclers (including Mobile ATM) as of 31st December 2024.

Madan Sabnavis, Chief Economist of BoB

“We do believe that the starting point of the budget will be the fiscal deficit and efforts will be made to lower the ratio by 0.5% to probably close to 4.3-4.4% of GDP for FY26. Within this framework, the budget would work to maintain, if not increase capex, in the range of Rs 11 lakh crore that will provide a fillip to investment (the revised estimate for FY25 could be lower than what was projected). Benefits for MSMEs and industry are also expected through the PLI scheme with probably a special dispensation for the former. There could be some minor rationalisation in subsidy outgo through better targeting of beneficiaries. It would, however, be interesting to see if there are any special rebates offered on income tax given that consumption has been affected due to high inflation this year. From the perspective of banks a more favourable tax slab for interest on bank deposits will help to provide a level field with equity markets and also provide incentive to deposit holders.”

 Ajay Singh, Principal, The Scindia School, Gwalior

 As we await the Union Budget for 2025, I believe the education sector is at a pivotal moment. To empower our children to succeed in an increasingly dynamic world, it is essential to prioritize investments in education. I urge the government to allocate a larger share of GDP to education, increase funding for STEM initiatives, enhance digital learning infrastructure and promote skill-based education. By simplifying regulatory processes and encouraging international collaborations, we can create a world-class education system that equips our students to excel on the global stage. Furthermore, fostering a culture of innovation and critical thinking in our schools will be crucial to developing the leaders of tomorrow. I also hope the budget will address the need for equitable access to quality education, ensuring no child is left behind. I look forward to a budget that lays the foundation for a brighter future for our children.

Rajarshi Bhattacharyya, Co-Founder, Chairman and Managing Director, ProcessIT Global

 The Union Budget 2025-26 should further ease policies to promote the growth of the MSME sector, which is considered the foundation of the Indian economy. These organizations should have easy access to credit from financial institutions, and benefit from a reduction in high interest on loans and related requirements to produce personal collateral with the complexities in the process also getting eliminated, making it much simpler. The government should empower MSMEs by enabling skill development and entrepreneurship.
Secondly, in today’s interconnected digital landscape, cybersecurity and data privacy are key and the government should focus on robust digital infrastructure, cybersecurity, and data protection, and strengthen its cybersecurity framework. The government should allocate significant funds to develop strong cybersecurity infrastructure and promote best practices across Government/PSUs, Healthcare, and Financial Organizations, among others. There should also be an increased focus on investments in R&D, cutting-edge technologies, and security measures in addition to skill development in the domain.

Chetan Jain, Founding Executive Director, and Managing Director, Inspira Enterprise

 “Some early thoughts on the Union Budget, to help promote innovation and growth in the cybersecurity space. This year will be crucial to boosting the adoption of secure AI solutions. To achieve this, the government should introduce incentives in the Union Budget to encourage homegrown cybersecurity firms to invest in R&D and implementation of secure AI technologies.
Secondly, cyberbullying is presenting itself as a fast-growing threat to online safety and security, especially with cyber criminals targeting senior citizens and young adults. To address this issue there should be dedicated funds in the Union Budget for creating awareness among citizens in India besides investing in strengthening prevention mechanisms for the well-being of the people.

Warren Harris, CEO & MD, Tata Technologies

“As we approach the Union Budget 2025, the technology and engineering sector is looking forward to measures that can propel India into its next phase of economic and industrial growth. To achieve the ambitious goals outlined in India’s roadmap for a $5 trillion economy, the budget should prioritize innovation-driven policies, investments in emerging technologies, and the development of products in India—for India and the world.

Key growth drivers such as smart manufacturing, AI, digital transformation, and software-defined vehicles (SDVs) require strong government backing through incentives for R&D, skill development, and infrastructure enhancement. We recommend increased allocation toward upskilling initiatives aligned with Industry 4.0, creating a future-ready workforce capable of excelling in advanced technologies like AI, IoT, and cybersecurity. India’s focus on sustainability and green mobility can benefit from policies encouraging the adoption and manufacturing of electric vehicles (EVs) and clean energy solutions. Streamlined GST norms and enhanced PLI schemes for EV components, high-tech manufacturing, and software services would catalyze growth. The budget can also emphasize fostering global competitiveness by introducing fiscal incentives for exports of engineering and technology solutions, strengthening India’s role as an innovation hub. Moreover, programs like Make-in-India and Engineer-in-India can attract significant foreign investment and foster self-reliance.

At Tata Technologies, we believe that a collaborative effort between industry and government is pivotal for achieving self-reliance, sustainable growth, and technological excellence. We are optimistic about the Union Budget 2025 and its potential to empower industries with the tools to lead the global technology landscape.”

Rajiv Sabharwal, MD & CEO of Tata Capital

“As we approach the Union Budget 2025, there is a significant opportunity for the government to boost consumption in the economy by increasing disposable income in the hands of people. Moreover, offering tax rebates on retail savings account and bank deposits will aid in improving the ability of banks to mobilise deposits and thereby boost the entire credit ecosystem. An increase in the tax deduction limit for housing loan interest will stimulate loan uptake and encourage the housing sector. Also, housing loan limits under priority sector lending should be increased considerably from the present levels to reflect the current market realities.

Furthermore, prioritizing the creation of a robust digital ecosystem for MSMEs will be crucial in ensuring seamless credit access, promoting growth, and strengthening the backbone of our economy. Additionally lowering SARFAESI threshold from ₹20 lakh to ₹1 lakh will help NBFCs for faster resolution of stressed accounts and bring them at par with HFCs, Banks and other financial institutions. These forward-looking measures can pave the way for inclusive and sustainable economic growth.”

 Swayambhu Mohanty, Co-Founder of Airace

 “As we approach the Union Budget 2025, Airace is optimistic about the government’s commitment to a technology-driven economy. The geospatial sector, projected to reach ₹25,000 crore by 2025, is vital for innovation and infrastructure development. We look forward to budgetary measures that focus on technology adoption, innovation, and ecosystem building.

Key expectations include:

• Funding for geospatial and satellite technologies to drive R&D in GNSS, AI, and IoT, supporting industries like agriculture, construction, and disaster management.
• Streamlined regulatory frameworks to ease geospatial technology deployment, such as simplifying licensing and high-resolution mapping restrictions.
• Investment in skilling initiatives to build a workforce skilled in cutting-edge technologies, integrating geospatial education into curriculums.
• Focus on digital infrastructure to support technologies like 5G, cloud computing, and real-time data analysis.
  Public-private partnerships to drive projects like Smart Cities and precision agriculture, positioning India as a leader
• in geospatial innovation.

With the right support, the geospatial sector can thrive, creating opportunities for start-ups, MSMEs, and large enterprises alike. At Airace Technologies, we are committed to building affordable, advanced geospatial solutions that contribute to India’s digital transformation and global tech leadership.”

Suhani – Co-founder of Nishani, a jewellery brand

“The gems and jewelry sector in India is at an exciting crossroads, driven by the growing demand for personalized and modular designs that resonate with today’s consumers. To build on this momentum, I hope the upcoming Union Budget introduces measures that support small and emerging brands like Nishani, which are reimagining how jewelry is designed, worn, and experienced.

With the industry projected to grow at a CAGR of 8.34% between 2023 and 2028, initiatives such as reduced import duties on raw materials, tax incentives for domestic manufacturers, and enhanced support for skill development programs could significantly strengthen India’s position as a global leader in jewelry innovation. Furthermore, investments in e-commerce infrastructure and digital transformation will empower brands to scale and connect with a broader audience, both locally and internationally.

At Nishani, we’re passionate about celebrating individuality through customizable jewelry. A budget that fosters creativity and entrepreneurship would go a long way in enabling brands like ours to continue redefining the jewelry experience for modern consumers.”

S Anand, Founder and CEO of PaySprint, a fintech venture

“India stands at a pivotal moment in its fintech revolution, with 2025 promising to be a landmark year for innovation, inclusion, and economic growth. The Union Budget offers a unique opportunity to shape the trajectory of the fintech ecosystem, which has already positioned India as a global leader in digital payments and financial technology.
In 2024 alone, India processed over 12 billion UPI transactions monthly, a testament to the growing trust and adoption of digital financial tools across urban and rural landscapes. At PaySprint, with over 5,000 partners and a robust suite of API-driven solutions, we’ve witnessed firsthand how technology can empower businesses and drive financial inclusion. However, to sustain this momentum, we need supportive policies that bridge existing gaps and fuel the next wave of innovation.

One critical area for focus is enhancing the infrastructure for open banking and API-driven platforms. A recent study by BCG indicates that India’s fintech sector could contribute $200 billion to GDP by 2030, but achieving this requires interoperability, seamless integrations, and policies that encourage collaboration between banks, fintechs, and regulators. The budget could incentivize these efforts by promoting API standardization and allocating funding for ecosystem-wide development.

Financial inclusion must remain at the heart of this vision. While over 80% of Indian adults now have a bank account, thanks to initiatives like Jan Dhan Yojana, only about 23% of rural users actively engage in digital transactions. Bridging this gap requires targeted investments in digital literacy programs, internet infrastructure expansion in underserved regions, and subsidies for SMEs to adopt digital payment systems. Empowering small businesses is especially critical, as they contribute nearly 30% of India’s GDP and are key drivers of employment.

Additionally, the government has an opportunity to support fintech startups and RegTech innovations through tax relief and funding programs. According to NASSCOM, India is home to over 2,300 fintech startups, yet many face challenges in scaling due to high compliance costs and limited access to capital. Incentives for early-stage innovators could unleash a wave of transformative solutions in areas like fraud detection, automated compliance, and data security.

Lastly, cybersecurity and data privacy must remain a top priority. With digital payments surpassing ₹20 lakh crore monthly, trust in secure platforms is non-negotiable. Budget provisions that establish national cybersecurity frameworks and offer grants for fintechs to invest in advanced data protection technologies will ensure that users can transact with confidence.

At PaySprint, we are committed to driving financial inclusion and delivering innovative solutions that simplify banking and payments for all. The 2025 Union Budget has the potential to catalyze the fintech sector’s growth, ensuring that India remains at the forefront of the global digital economy. Together, with the right policies and collective effort, we can build a more inclusive, secure, and prosperous future for millions of Indians.”

Jash Choraria, Vice President – Investments & Credit and Chief of Staff, Crest Ventures Limited

“As we gear up for the Union Budget 2025-26, the real estate sector anticipates crucial reforms that can accelerate growth, enhance affordability, and solidify its role as a key contributor to India’s economic development. The government has already demonstrated its commitment to infrastructure and housing, and I firmly believe that this year’s budget can take decisive steps to address some of the most pressing challenges in our sector.
One of the most impactful measures would be an increase in the tax deduction limit on housing loan interest payments. The current cap of ₹2 lakh has not been revised for several years, despite rising property prices and interest rates. A higher limit—say ₹5 lakh—would not only provide significant relief to homebuyers but also stimulate demand, particularly in the mid- and upper-income housing segments. This step would make homeownership more accessible and could drive momentum in the residential market.

Another key expectation from the budget is the long-awaited granting of infrastructure status to the real estate sector. This move would lower borrowing costs for developers and attract institutional investments, enabling the industry to deliver affordable housing on a larger scale. Coupled with a robust focus on urban infrastructure, this reform could catalyze growth and strengthen the foundation for sustainable city planning.

We also hope for the introduction of a single-window clearance mechanism for real estate projects. Currently, developers face a labyrinth of approvals that often result in delays and higher costs. A streamlined process would not only enhance ease of doing business but also translate to more timely delivery of projects—benefiting both developers and homebuyers.

In addition, the affordable housing segment requires targeted incentives to bridge the demand-supply gap. Reducing GST rates or providing subsidies for affordable housing projects would encourage developers to cater to this critical market while ensuring affordability for buyers. The government’s focus on ‘Housing for All’ can be bolstered through such initiatives, addressing the aspirations of urban and rural populations alike.

Finally, liquidity and access to finance remain vital concerns. Measures such as reducing the cash reserve ratio (CRR) and other monetary policy interventions can inject liquidity into the system, allowing banks to offer more competitive home loan rates. This would directly benefit homebuyers and sustain the growth trajectory of the housing sector.

The real estate sector is integral to India’s economic engine, contributing significantly to GDP and employment. At Crest Ventures, we are committed to creating spaces that inspire and uplift communities while driving sustainable urban development. We look forward to a budget that empowers stakeholders across the value chain—developers, homebuyers, and investors—paving the way for a resilient and prosperous future.”

Vikram Kankaria, Co-Founder & CEO, Fashor

“As we approach the Union Budget 2025, I am optimistic about the government’s continued focus on empowering the retail and fashion industry, a sector that not only contributes significantly to the economy but also reflects the aspirations of millions of Indians. With the Indian apparel market poised to grow at a CAGR of over 10% and expected to reach $100 billion by 2030, it is imperative to provide the right fiscal and policy support to sustain this momentum.

Key areas of focus should include reducing GST rates on fashion and apparel to enhance affordability for consumers, especially in the ethnic and fusion wear segments that cater to a wide demographic. Currently, GST rates at 12% or 18% on apparel over ₹1,000 act as a constraint for many brands, particularly those targeting Tier 2 and Tier 3 markets, where price sensitivity is high. A reduction in GST could accelerate demand and unlock significant growth potential across these regions.

Additionally, the industry would benefit immensely from incentives for D2C brands to establish offline footprints, particularly in underserved markets. As Fashor plans to open 100 exclusive brand outlets (EBOs) in the next few years, we look forward to policies that support infrastructure development and reduce operational costs, such as rent subsidies or interest rate concessions for retail-focused businesses.

On the manufacturing side, the budget could consider enhanced Production Linked Incentives (PLI) for apparel and textile sectors, emphasizing sustainability. Globally, consumers are gravitating toward eco-conscious fashion, and providing support for green manufacturing practices would enable Indian brands to compete on an international scale.

Lastly, digital transformation remains the backbone of modern retail. A push for greater investments in logistics and e-commerce infrastructure, coupled with incentives for technology adoption, can help brands like ours expand our omnichannel presence and improve customer experiences.

At Fashor, we’re committed to empowering the modern Indian woman through affordable, stylish fashion. We hope the budget sets the stage for a more inclusive and competitive retail landscape, enabling Indian brands to thrive both domestically and globally.

Kaushik Das, Founder & CEO of AAO NXT

“As we approach the Union Budget 2025, I am hopeful that the government will continue to recognize the growing influence of the OTT industry in driving India’s digital transformation. The Indian OTT market is expected to surpass $13 billion in value by 2026, with regional content playing a key role in that growth. Platforms like AAO NXT are at the forefront of this shift, offering diverse and culturally rich content that resonates with audiences across India and beyond.

I am optimistic that the government will introduce measures that further support the digital content creation ecosystem, particularly through incentives for regional and independent content creators. This could include tax breaks or grants for regional OTT platforms producing high-quality, original content, which would not only support the creative economy but also drive job creation in media, technology, and distribution.

Another area of focus could be the expansion of digital infrastructure, particularly in rural and semi-urban regions. As internet penetration increases, we are witnessing a rising demand for localized content. Improved connectivity can unlock vast new audiences for regional platforms like AAO NXT, positioning Indian content as a key player in global entertainment.

Additionally, with skill development being a priority across sectors, I believe targeted initiatives to train a new generation of content creators, technicians, and digital media professionals will help India maintain its competitive edge in the OTT landscape. This aligns with the growing trend of upskilling in digital media, which has seen significant investments in the past few years.

At AAO NXT, we are committed to bridging regional culture with cutting-edge technology, and we hope that the budget will provide the necessary support to fuel further innovation and growth in this space, ensuring that Indian OTT platforms continue to thrive and contribute to the nation’s cultural and economic development.”

Jani Vehkalahti – SVP, Smart Grids, Wirepas, a leader in wireless connectivity solutions

“The Indian Union Budget presents a pivotal opportunity to position the nation as a global leader in the energy transition. To achieve this, we at Wirepas strongly urge the government to prioritize significant investment in accelerating large-scale adoption of IoT-enabled solutions in smart metering deployments. This forward-thinking approach promises substantial payback, first to utilities and ultimately to consumers, through lower fees and more sustainable infrastructure.

Smart meter rollouts in Europe, originally introduced for billing purposes, have proven to be a key solution in supporting the growth of renewable energy production. They also enable existing electricity infrastructure to handle the rising demand from air conditioners and electric vehicles. Notably, the implementation of dynamic tariffs for consumers has successfully reduced consumption peaks across Europe, ensuring energy availability at all times.

Mesh networks, unlike cellular-based solutions, offer a remarkable 30-50% reduction in communication costs, making them a cost-effective and ultra-reliable option. Their longevity—outlasting cellular networks prone to 10-year lifespans—ensures a smart metering network that can serve India’s needs for the decades to come.

Additionally, by emphasizing design transfer and skill development, investing in mesh not only strengthens domestic expertise but also creates new revenue streams with export opportunities, cementing India’s position as a hub for advanced, sustainable technologies.”

Pradyumn Sharma, CEO of Pragati Software

 As Union Budget 2025 approaches, I’m optimistic about the government’s continued focus on strengthening India’s digital economy and skill development. With India set to become a $1 trillion digital economy by 2028, this budget presents a vital opportunity to invest in the nation’s future and address the reskilling needs of over 65% of the workforce in areas like AI, machine learning, and blockchain.

The IT sector expects policy measures that enhance India’s position as a global technology leader. As a key contributor to GDP and employment, this budget can fuel innovation, foster talent, and further develop the digital ecosystem.

A priority is increased support for upskilling and reskilling programs. Funding for industry-relevant training, in partnership with initiatives like Skill India and Digital India, will help bridge the talent gap and improve India’s global competitiveness. Tax reforms encouraging R&D investment in emerging technologies would stimulate innovation and position Indian companies as global tech leaders.

Investments in digital infrastructure, particularly in Tier 2 and Tier 3 cities, are also crucial. Improving connectivity and internet access will unlock new talent pools, decentralize growth, and support the growing work-from-anywhere trend.

I also hope for greater incentives for tech startups, particularly those in AI, SaaS, and cybersecurity. Simplifying compliance and offering funding opportunities will accelerate growth in the startup ecosystem. Finally, promoting public-private partnerships in education and skill development will help create a sustainable pipeline of professionals equipped for the future. In summary, I look forward to a budget that fosters digital inclusion, innovation, and skill development, ensuring India remains a global technology leader.

Rohith Reji, Co- founder and CEO at Neokred

“The upcoming Union Budget presents a critical juncture for India’s fast rising fintech and digital payments ecosystem. We anticipate measures that further incentivize digital transactions, potentially through tax breaks or subsidies for digital payment platforms and users. Additionally, a focus on enhancing financial inclusion through digital means, including expanding access to credit and insurance products through digital channels, would be a welcome step. We also expect the government to address the evolving regulatory landscape for fintech especially the DPDP Act, fostering innovation while ensuring consumer protection and financial stability.”

CA Prashant Thacker , Co-Founder and Partner at Thacker & Associates 

 “The Union Budget 2025 presents an opportunity to simplify tax rules to benefit M&A activities and corporate restructuring. Corporate India expects tax reforms to address complexities, reduce anomalies and provide incentives to stimulate economic growth.
Some of the key expectations include reducing the holding period for slump sale of ‘undertaking’ from 36 to 24 months and for unlisted shares in IPO Offer for Sale (OFS) from two years to one year, aligning them with listed securities. Also, buybacks funded by share premiums or proceeds from other share issuances should not be taxed as dividends to avoid artificial taxation.

Clarification is much needed on whether ‘investment’ in operating subsidiaries qualify as an ‘undertaking’ for demergers in tax-neutral manner under NCLT-approved schemes, and consequent amendment to Section 79 of the IT Act to allow the carry forward of losses despite shareholding changes due to NCLT-approved demergers.

Deferral of taxation on contingent consideration in M&A deals should be addressed by taxing it only when received, ensuring better tax certainty benefiting both investors and promoters alike.

On carry forward of tax losses, couple of long due amendments are to allow the benefit of carry forward of tax losses in intra-group restructurings where the ultimate beneficial ownership within the group remains unchanged and also the benefits of carry-forward of tax losses and unabsorbed depreciation should extend to all sectors including real estate, financial services, retail/trading activities to attract a wider array of investors in the mergers & acquisitions landscape.

Lastly, enabling provisions for mergers and demergers of LLPs should be introduced to promote seamless business restructuring and recognizing it as a tax neutral event.

Overall, businesses hope for tax reforms that ease restructuring, provide flexibility, and encourage investment.”

Anuj Puri, Chairman – ANAROCK Group

Going by the sagging sales and supply of affordable housing(*) in India over the past few years, it is easy to forget that this segment was once the housing industry’s veritable poster child. Nevertheless, not too long ago, Indian real estate developers took it very seriously, regularly engaging with their architects to design smaller units to contain prices and ensure sales continuity.

This trend peaked when the Union Government put in concerted efforts to promote affordable housing via the ‘Housing for All’ program. In this period, the government announced many attractive incentives for buyers and developers of such housing. The affordable housing story took on an appealingly patriotic ‘nation building’ sheen and even big brand developers got into the fray (albeit at times by creating ‘sister’ brands for it) to not dilute their reputations as ‘lifestyle housing’ creators.

The supply share of this segment was nearly 40% of the total supply in 2018 and 2019. Cities like Pune, Kolkata, Chennai, and NCR were witnessing consistently high supply of such homes, riding on stimuli such as lower GST rates and tax breaks.

The Pandemic Effect

The COVID-19 pandemic profoundly changed these dynamics, and as of today, we cannot say whether this change is temporary or long-term. In any case, as the nation awaits the Union Budget of the Modi 3.0 government, there is no doubt that the stakes for the languishing affordable housing sector are very high. In fact, it is hoped that Budget 2025-26 will be a resuscitating turning point for it.

After the pandemic, housing demand changed considerably. Now, Indians wanted larger and multi-functional homes with a comprehensive spread of lifestyle amenities. In a very real way, the movement restrictions of COVID-19 gave rise to national-level claustrophobia. Also, the concept of homes as separate spaces from workplaces was displaced – they now had to be able to serve as both residential facilities and offices.

In a fairly short time, the once robust supply of affordable housing tottered and dwindled. Its total supply share reduced from 40% in 2018 to 16% in 2024. The target clientele, consisting of blue-collar workers, lower-paid workforces and those just starting out in their careers, were severely cash-strapped and obviously, buying homes did not feature among their immediate priorities. Instead, the rental market picked up after the pandemic abated and businesses sent out their ‘return to office’ call.

The previously popular model of modest beginnings with smaller ‘starter’ homes and leveraging capital appreciation and career growth to eventually upgrade to bigger ones lost its appeal. Indians who were considering homeownership at all had their eyes on the biggest units they could afford. This trend continues even today, and essentially small-sized affordable housing plays no role in it.

Shrinking Supply

At the developers’ end, constantly rising input costs comprising of land, labour and construction materials (compounded by the low profit margins of affordable housing and the withdrawal of all relevant fiscal benefits) caused their previous enthusiasm for affordable housing to dwindle. Instead, they turned their focus on what was and continues to sell well – bigger units with good lifestyle amenities.

In 2024 and as of now in January 2025, Bangalore is devoid of any supply in this segment. Hyderabad and Chennai are seeing only a minimal 2% supply share. The only cities with any sizeable activity in this segment are Kolkata and MMR. In both these cities, nearly 31% of the total upcoming supply is priced below INR 40 lakh.

NCR has witnessed a drastic reduction in its share of affordable housing, falling from 62% in 2020 to only 11% in 2024. In terms of both demand and supply, NCR is showing far greater interest in high-end and luxury properties, which is evident from the rise in the value of inventory sold during the year. Residential apartments sold in the NCR primary market in 2024 is estimated to be valued at INR 90,000 Cr, which is 32% more than in 2023. In value terms, NCR is second only to MMR.

PMAY – Current Status

While certainly not breaking any records, the Pradhan Mantri Awaas Yojana – PMAY (Urban) – has made steady progress since it was announced in mid-2015. Data by Ministry of Housing and Urban Affairs indicates 118.64 lakh homes have been sanctioned as of 20th January 2025. Nearly 90.22 lakh units have been completed, and nearly 112.50 lakh have been ‘grounded’. In terms of the financials, nearly INR 200,000 Cr of central assistance has already been committed.

Despite fairly good progress, PMAY must be made accessible to more people, and awareness about it also needs a big shot in the arm. New adaptable, sustainable and low-cost construction technologies can be used to rapidly develop large mass housing projects. The government should also try to eliminate bottlenecks in property records.

An important aspect of PMAY is interest subsidy on home loans, and direct subsidy for individual house construction or enhancement. However, to qualify for these subsidies, properties need title documents – a big hurdle, since India’s land records system is far from sophisticated enough right now to address the task holistically and at scale.

Any announcements that Union Budget 2025-26 will make in context with affordable housing will doubtlessly involve PMAY. Creative solutions and strong political will can bring this vitally important programme back to centre stage, which is where it belongs.

Is the Tide Turning?

Nationally, rising prices have led to a gradual tapering down of luxury housing, and this may trigger an inflection point where the cycle can once again turn positive for the affordable segment. Any substantial announcement for the affordable housing segment in the upcoming Union Budget can strengthen the trend and give affordable housing a seriously needed leg-up.

Even if such measures don’t initiate a full-blown revival, they can at least improve this segment’s overall prospects. Finally, a healthy housing market caters to a broad range of buyers and doesn’t favour just one segment.

1- Mr. Saurav Ghosh, Co-founder, Jiraaf-

“This budget is critical, with weak urban consumption. Reviving private capex and restoring government spending would be key to supporting the economy. In terms of Government Capex, the continued focus on long-term infrastructure and development projects is expected to carve out an optimistic path for the long run.

We hope the budget would have taxation cuts to enable spending. Tax reduction on debt securities could enable capital markets to help lower finance cost for companies providing a trigger for private capex.”

2- Manish Goel, Founder and MD, Equentis Wealth Advisory Services-

“As we anticipate the Union Budget 2025-26, it’s crucial for policymakers to continue fostering India’s dynamic startup ecosystem and help boost the capital markets.

Encouraging Innovation and Research: The previous year witnessed a remarkable surge in IPOs and QIPs, with Indian companies raising a record ₹1.57 trillion through initial public offerings and ₹1.37 trillion via qualified institutional placements. This surge was complimented by a revival in startup funding, effectively ending a two-year funding winter. Key policy measures, including the abolition of the Angel Tax in the last budget, played a pivotal role in revitalizing investment flows into the startup ecosystem. Notably, the IT/ITeS sector led the way, attracting $10.8 billion of the total $31.1 billion in funding during CY24.

To maintain this trajectory, establishing dedicated funds for innovation in sectors like AI, deep tech, space technology, and green energy is essential. Such initiatives would alleviate funding challenges for startups, spur job creation, and boost consumption, aligning with the government’s vision of a ‘Viksit Bharat.’

Expanding Incubation Infrastructure: With approximately 1,100 active incubators as of October 2024, India has about 0.8 incubators per million people, lagging behind countries like the U.S. and China, which have 8–10 per million. Government support for educational institutions can bridge academic expertise with entrepreneurial endeavours, promoting innovation in deep tech sectors like AI and ML, and positioning India as a global technology and entrepreneurial hub.

Relaxing Capital Gains Tax Norms: The increase in capital gains tax introduced in the last budget has contributed to narrowing the credit-to-deposit (CD) ratio. With the CD ratio under control and a growing case for interest rate cuts, we believe it is time for the government to reconsider capital gain tax thresholds. This strategy will encourage continued financialization of savings, fostering a more stable financial environment.

By addressing these areas, the upcoming budget can play a pivotal role in sustaining the growth trajectory of India’s startup landscape and overall economy.”

3- Sameer Bansal, MD & CEO, PNB MetLife-

“While India is a fast-growing economy fueled by its rising middle-class population of [25-45] year olds, the proportion of people above the age of 60 is equally increasing at a rapid pace. Financial stability is a cornerstone of a secure future. One of our hopes for the upcoming budget is to see support for pension and annuity plans which are key financial instruments for the retirement planning needed to create that stability.

Tax support for pension plans offered by life insurers, on par with the National Pension Scheme, will provide both greater choice and allow diversification of assets into multiple pension plans. At the same time, while we recognize and applaud the ongoing deliberations on removing GST on term life and health policies, we urge the government to also consider removing GST on premiums for annuity plans to support pensioners and make annuities more affordable and accessible.

These actions would give people greater flexibility to create and protect financial stability, which in turn is an important building block for the continuing economic growth of our country.”

January 28, 2025, New Delhi: Internshala, India’s leading career-tech platform, has announced its Annual College Rankings for 2024 to honor colleges that have excelled in fostering a culture of internships in the past year. This year’s rankings recognize institutions that have enabled students to bridge the gap between academic knowledge and industry exposure through internships. The rankings span across four zones—North, South, East, and West, spotlighting the best-performing colleges in each region.

Paavai Engineering College, Tamil Nadu, secured the all-India rank 1, for the fourth time in a row. The institute also was the South zone winner. Followed by Parul Polytechnic Institute, Vadodara, Gujarat at all India rank 2 and at West zone rank 1.

Additionally, Ramanujan College, New Delhi emerged as the zonal winner for the north zone, and the University of Engineering and Management, Kolkata was recognized as the zonal winner of the East zone.

Over 740 colleges participated in this year’s rankings, with 11,000+ students securing internships across diverse domains. Companies such as Swiggy, PepsiCo, NoBroker, Times Internet, and Aditya Birla Capital were among the top recruiters, reflecting the robust internship culture promoted by these institutions.
In addition to recognizing the best performers, Internshala also provided these colleges with exclusive college-specific insights into the overall performance of the colleges showcasing their strengths and helping them identify areas for improvement.

Sarvesh Agrawal, Founder and CEO of Internshala, commented “The Internshala Annual College Rankings celebrate colleges that have made exceptional efforts to prioritize internships as a vital part of their students’ educational journeys. By helping students gain real-world experience, these institutions are shaping the workforce of tomorrow. The dedication of training and placement officers has been instrumental in achieving these milestones, enabling students to make informed career decisions and empowering companies to discover the best talent across India. I congratulate all the colleges featured in this year’s rankings.”

Here’s what the winning colleges had to say —
Dr. Jatin Vaidya, Principal, Parul Polytechnic Institute said, “I am immensely proud of our institution securing All India Rank 2 in the Annual College Rankings 2024. Our journey with internships in 2024 has been instrumental in shaping our students’ careers by providing them with invaluable internship opportunities. This achievement reinforces our continuous commitment to developing industry-ready professionals and ensuring bright futures for our students.”

Dr. B. Venkatesan, Internship Coordinator, Paavai Engineering College expressed, “We are thrilled to achieve All India Rank 1 in the Annual College Rankings! This milestone reflects the dedication of our students and the faculty. As the internship coordinator of Paavai Engineering College, I extend my heartfelt gratitude to Internshala for empowering our students with diverse opportunities and equipping them with real-world skills. This has helped bridge the gap between academic learning and industry expectations, fostering career growth and confidence in our students. This recognition inspires us to continue leveraging the platform’s resources for holistic student development and further excellence in internships. ”

Bengaluru, India – January 28, 2025: Infosys, a global leader in next-generation digital services and consulting, today announced a critical milestone in its three-year collaboration with Street Child, an international children’s charity, with the establishment of seven Digital Learning Centers (DLCs) to address the educational challenges faced by children in crisis-affected areas of Ukraine.

This collaboration addresses the profound disruption to Ukraine’s education system caused by the ongoing conflict, which has affected over 3,700 educational institutions and destroying 365 schools, as reported by Save the Children. The conflict has forced roughly 1.9 million children – nearly half of Ukraine’s school-aged population – to rely on partial or fully remote learning solutions. Recognizing this critical need, Infosys joined hands with Street Child in 2024 to launch two impactful initiatives: creating DLCs–secured physical spaces equipped for online learning and a Digital Transformation program, leveraging Infosys Springboard, Infosys’ flagship digital learning platform, to provide tailored courses for students and teachers.

Initially focused on creating and renovating five DLCs in Dnipropetrovsk, an Oblast in Eastern Ukraine receiving less international aid due to its proximity to the front line, the collaboration remarkably delivered seven within 12 months into the engagement. Notably, one center was renovated by an all-female team of contractors, as conscription limited the availability of male workers.

Launched in September 2024, these centers have already served over 1,000 children in their first three months of operations. Each center is equipped with laptops, high-speed internet, multimedia projectors, educational materials, security systems, and accessibility features such as wheelchair ramps and modified bathrooms. Additionally, designated spaces for Mental Health and Psychosocial Support (MHPSS) provide critical support to young learners.

The Digital Transformation program focuses on preserving Ukraine’s cultural identity by offering courses in Ukrainian Language and Geography for Grades 5 and 6. For teachers, topics such as Cybersecurity and Anti-Corruption are addressed through specially developed courses, aligning seamlessly with Ukraine’s national educational platform, All Ukrainian Online. Together, these initiatives are helping build a robust and resilient educational foundation for both students and teachers.

Tom Dannatt, CEO & Co-Founder, Street Child, said, “At Street Child, we’re working to create a world where every child is safe, in school and learning. Unfortunately, the reality for Ukrainian children is that a significant number of them cannot attend a physical classroom, and so we’re focusing efforts on where we can make the biggest difference. In this case, that means making the most of digital education. Although we’re still in the early stages, we’re proud to have worked with Infosys to support more than 1,000 children amid this terrible conflict. The early success of this scheme demonstrates the transformative potential to deliver quality education in many crisis-affected regions worldwide.”

Thirumala Arohi, Executive Vice President, Head – Education, Training and Assessment, Infosys, said, “The collaboration between Infosys and Street Child is crucial as it directly addresses the devastating impact of the conflict on Ukraine’s education system. With hundreds of schools destroyed and millions of children displaced or relying on remote learning, access to quality education has become a critical need. Infosys brings to this collaboration not only its technological expertise but also a deep commitment to social impact. Together with Street Child, we are providing tangible solutions through the establishment of seven Digital Learning Centers that offer secure physical spaces equipped with the necessary technology and are leveraging Infosys Springboard to enable a digital transformation program to offer tailored courses for effective online learning. This holistic approach empowers students to continue their education, supports teachers in adapting to new learning environments, and ultimately contributes to building a more resilient educational foundation for the future of Ukraine.”

by Madan Sabnavis, Chief Economist of BoB

“We do believe that the starting point of the budget will be the fiscal deficit and efforts will be made to lower the ratio by 0.5% to probably close to 4.3-4.4% of GDP for FY26. Within this framework, the budget would work to maintain, if not increase capex, in the range of Rs 11 lakh crore which will provide a fillip to investment (the revised estimate for FY25 could be lower than what was projected). Benefits for MSMEs and industry are also expected through the PLI scheme with probably a special dispensation for the former. There could be some minor rationalization in subsidy outgo through better targeting of beneficiaries. It would, however, be interesting to see if there are any special rebates offered on income tax given that consumption has been affected due to high inflation this year. From the perspective of banks, a more favorable tax slab for interest on bank deposits will help to provide a level field with equity markets and also provide incentive to deposit holders.”

New Delhi, January 28th, 2025: Attero, India’s largest cleantech company and the world’s largest recycler of lithium-ion batteries, has partnered with the Government of India for the 38th National Games, taking place from January 28 to February 14, 2025, in Uttarakhand. This year, the games are centred on sustainability under the theme ‘Green Games,’ setting a milestone in India’s efforts toward eco-conscious sports initiatives.

Attero will supply recycled metals with over 99.9% purity, ensuring a positive carbon footprint. This initiative is the first of its kind in Indian sports, using conflict-free recycled materials to demonstrate the country’s commitment to sustainability. The games, designed to be plastic-free, will feature participation from more than 10,000 athletes competing in 38 sports across multiple cities in the state. The event is expected to be inaugurated by the Hon’ble Prime Minister, Shri Narendra Modi.

“Contributing to the 38th National Games is an honour for Attero. Our journey began in Roorkee, Uttarakhand, where we operate cutting-edge recycling facilities, and we are proud to support this initiative led by the Hon’ble Prime Minister to advance India’s sustainability goals and achieve the Net Zero vision,” said Mr Nitin Gupta, CEO and Co-Founder of Attero.

Attero is a globally recognised innovator in recycling, known for its advanced technologies that extract pure metals from electronic waste and lithium-ion batteries with a world-class recycling efficiency rate of 98%. The company recently introduced Selsmart, a direct-to-consumer platform for e-waste management, and MetalMandi, an innovative digital B2B AI-powered platform for seamless scrap collection, furthering its mission to promote responsible recycling practices across India.

With 46 global patents and 200 more under review, Attero continues to lead the charge in sustainable technology development. Its goal to expand its e-waste recycling capacity from 175,000 to 300,000 metric tonnes highlights its commitment to a cleaner, greener future for India.

Mumbai, 28th January 2025: Cosmo Specialty Chemicals, a 100% subsidiary of Cosmo First and a one-stop solution for a range of Adhesives, Masterbatches, and Coating Chemicals, has successfully achieved ISO 9001:2015 certification for its Quality Management System.

The certification, issued in December 2024, recognises the company’s commitment to maintaining high-quality standards in the design, development, manufacturing, and delivery of adhesives, coatings, and masterbatch products at its MIDC Area facility in Waluj, Aurangabad.

The ISO 9001:2015 certification demonstrates Cosmo Speciality Chemicals’ dedication towards consistent delivery of high-quality products, and customer satisfaction through efficient quality management with a culture of continuous improvement of operational processes while meeting regulatory requirements and international standards.

“This certification is testimony to our ongoing commitment to quality management and customer satisfaction”, said Mr Raj Sharma, Business Head at Cosmo Speciality Chemicals. “It validates our systematic approach to ensuring product quality and reinforces our position as a trusted manufacturer in the chemical industry.”

India, January 28, 2024 — Casio Computer Co., Ltd. announced today the latest release from the Casiotone brand, the new 76-key electronic keyboard, the CT-S1-76. Despite its compact size you can still experience the range of sound of a 76-key keyboard which allows players to enjoy an array of musical performances while featuring a minimalist design.

Our mission at Casio regarding our musical instruments is to offer unique ways for users to enjoy music that is tailored to individual lifestyles and fosters new cultural experiences under the statement of Sound for Style. The Casiotone brand produces electronic keyboards based on the concept of Make Music, Anytime, Anywhere. Among the different models available, the CT-S1 which features 61 keys, and was released in 2021, gained significant popularity for its expressive sound and compact, sleek body and design that allows it to blend in well with interior living spaces.

The CT-S1-76 continues to build on the success of CT-S1 by increasing the number of keys from 61 to 76, thus expanding the available range of sounds which allows users to perform with a broader repertoire. The keyboard features Casio’s advanced AiX Sound Source, which analyzes and faithfully reproduces the distinct individual characteristics of various instruments, providing an authentic and immersive playing experience. Despite its compact size of only 258mm deep and 1,140mm wide, the CT-S1-76 delivers powerful and resonant sounds, which is thanks to its enhanced acoustic system. The minimalist design is further accentuated by its speaker net with mixed color-texture fabric, maximizing its potential to seamlessly integrate into any living space. The layout is intuitively designed to provide ease of use by prioritizing the most essential buttons.

Additionally, by using the dedicated CASIO MUSIC SPACE app, users can connect to the keyboard using their smart devices via Bluetooth®※, that displays a list of settings such as the instrument tones and metronome and enables their convenient control directly from their smart device.

Expanded Range and Enhanced Tones for Dynamic Expression

The CT-S1-76’s 76-key range allows for more dynamic performances that incorporate both high and low octaves. The AiX Sound Source technology uses in-depth analyses of the audio characteristics of different instruments to accurately reproduce instruments such as acoustic pianos, electric pianos and organs, capturing the individual nuances which helps to create a highly realistic sound experience. It includes 61 carefully curated tones. The ADVANCED TONES, use Casio’s advanced technology to replicate a range of vintage instruments that feature on countless classic recordings to create tones that showcase the power of Casio’s AiX Sound Source. The CASIO CLASSIC TONES are selected from Casio’s rich history of electronic instruments.

Compact Design with Powerful Sound

It retains the same compact depth of the CT-S1 at only 258mm deep and is 1,140mm wide while remaining a lightweight build of only 5.3kg. This compact and highly portable design allows it to be placed in a variety of different places within a room to best suit your needs. The CT-S1-76 also includes Casio’s unique Horizontal Bass-Reflex System that produces impressive bass sounds. The Bass-Reflex system combined with the compact design makes it easy to enjoy the robust sound quality whenever and wherever you choose to play it.

Minimalist Design with Comfortable Usability

The instrument itself has been designed to include only the keyboard, speaker, and the minimum number of buttons needed, for a minimalist look. These buttons have been positioned so that the player can reach them easily to achieve comfortable usability. The remote controller function of the CASIO MUSIC SPACE app further enhances the usability by allowing users to seamlessly check and adjust the settings with your smart devices via Bluetooth® connection.