Current Affairs - Finance

Indiabulls Housing Finance has rebranded itself as Sammaan Capital following approvals from the Registrar of Companies and the Reserve Bank of India. The newly named entity, Sammaan Capital, will specialize in retail lending, particularly focusing on affordable home loans and mortgage-backed loans for MSMEs. It plans to operate under an asset-light model and collaborate closely with banks and financial institutions to expand its market presence.

As of June 30, 2024, Ireland has surpassed Mauritius to secure the fourth position among preferred destinations for Foreign Portfolio Investors (FPIs) directing funds into India. Ireland's assets under custody (AUC) reached Rs 4.41 trillion, slightly higher than Mauritius' Rs 4.39 trillion. The shift in preference is due to various factors, including regulatory challenges and attractive tax treaty benefits offered by European jurisdictions such as Ireland, which boasts a highly developed economy focused on technology, pharmaceuticals, and financial services.

Tata Asset Management has introduced India's first tourism index fund, which tracks the Nifty Tourism Index comprising prominent companies from the Nifty 500. This innovative fund aims to capitalize on the growth potential of India's burgeoning tourism sector, expected to reach $406 billion by 2030. Targeting high-growth firms in travel, tourism, and hospitality, Tata's initiative seeks to provide investors with opportunities aligned with the expanding infrastructure and technological advancements in the tourism industry.

REC Limited, a major lender in the power sector, secured a 5-year green loan of 31.96 billion Japanese yen (approximately $200 million) through Deutsche Bank’s Gift City branch. This funding is dedicated to financing environmentally sustainable projects across India. The initiative is part of REC's commitment to advancing green energy finance and sustainable development, aligning with global efforts for environmental responsibility.

India provided a $2.5 million line of credit to Guyana for the installation of a solar photovoltaic power plant at Cheddi Jagan International Airport. The agreement, facilitated by the Export-Import Bank of India, stipulates that at least 75% of the project's contract value will be sourced from Indian suppliers. This initiative underscores India's commitment to promoting renewable energy infrastructure in partner countries, enhancing energy security, and fostering bilateral relations through strategic investments in sustainable development projects.