Finance

Prime Minister Narendra Modi held a strategic discussion with the CEO of HSBC to explore collaborative avenues for advancing India’s economic growth under the “Viksit Bharat” vision. The dialogue focused on leveraging global capital, enhancing digital infrastructure, and fostering innovation-driven sectors to accelerate development. Key areas included sustainable finance, investment in technology, and strengthening India’s integration into global trade networks.

The recent reduction in Goods and Services Tax (GST) rates on automobiles has inadvertently created disruptions in the auto financing market, with several customers cancelling their existing car loans to take advantage of lower vehicle prices. Lenders, dealers, and automakers are grappling with the unexpected fallout as buyers reconsider loan agreements signed prior to the tax revision.

Shringar House, a diversified company with interests spanning finance and investments, has announced details of its upcoming initial public offering (IPO). The offering is set within a defined price band, signaling the company’s intent to raise fresh capital and unlock new growth opportunities. Positioned in a competitive market landscape, the IPO aims to attract institutional as well as retail participation by offering investors exposure to a business model focused on expansion and strategic asset management.

Punjab & Sind Bank has announced a strategic partnership with Maruti Suzuki Finance to expand its retail auto loan portfolio and provide customers with easier financing options for purchasing Maruti Suzuki vehicles. The collaboration aims to streamline the car-buying process by offering competitive interest rates, simplified loan approvals, and tailored financing solutions. This tie-up comes at a time when India’s automobile sector is witnessing steady growth, fueled by rising consumer demand, improving rural incomes, and favorable credit availability.

The National Bank for Agriculture and Rural Development (Nabard) is preparing to raise its maiden external commercial borrowing (ECB) in the financial year 2025–26. This move is aimed at diversifying its funding base and tapping into international capital markets to support rural credit expansion. As the apex development finance institution for agriculture and rural infrastructure, Nabard has historically relied on domestic sources such as bonds and deposits.

Piaggio Vehicles Pvt. Ltd., a subsidiary of the Italian auto giant Piaggio Group, has entered into a strategic partnership with Hinduja Leyland Finance Ltd. (HLFL), one of India’s leading non-banking financial companies. The collaboration aims to strengthen retail financing options for Piaggio’s commercial vehicle customers, particularly in the small and light commercial vehicle segment. This alliance is expected to improve credit accessibility for buyers, support entrepreneurs in the logistics and mobility sector, and enhance overall vehicle sales.

In a strategic move to strengthen digital financial inclusion, L&T Finance has partnered with Google Pay to offer personal loans through the fintech giant’s platform. The initiative reflects the growing convergence between traditional financial institutions and digital payment ecosystems, aiming to reach a broader customer base with quick, paperless lending solutions. By leveraging Google Pay’s expansive user network and L&T Finance’s expertise in credit delivery, the partnership seeks to simplify access to credit, particularly for young professionals and small-business owners.

Honda Finance India has intensified its focus on retail sales financing, responding to the rising demand for automobiles across urban and semi-urban markets. By offering tailored financial solutions, including competitive interest rates, flexible repayment plans, and quick loan approvals, the company aims to enhance vehicle accessibility and drive customer loyalty. This initiative reflects Honda Finance India’s strategic emphasis on expanding its lending portfolio while supporting the broader growth of the Indian automotive sector.

Muthoot Finance Ltd. shares surged after the company reported a sharp rise in first-quarter earnings, driven by higher loan disbursements and healthy margins in its gold loan business. The non-banking financial company (NBFC) posted a notable year-on-year increase in net profit, supported by strong demand for secured lending amid volatile market conditions. Management attributed the growth to strategic expansion, efficient cost management, and a sustained uptick in average loan ticket sizes.

The initial public offering of Laxmi India Finance was subscribed 1.85 times, indicating a healthy appetite from investors, particularly within the retail and non-institutional categories. The Jaipur-based non-banking financial company (NBFC), focused on vehicle loans and small-ticket financing, launched its public issue with the aim of strengthening its capital base and supporting future growth plans. The IPO’s solid subscription performance suggests investor confidence in the company’s regional footprint, lending model, and its focus on underbanked segments.