RBI holds rates at 6.5%

Top of the Morning

Welcome to Top of the Morning by Mint, your weekday newscast that brings you five major stories from the world of business. It's friday, August 9, 2024. My name is Nelson John. Let's get started:

Indian stock market benchmarks—the Nifty and Sensex—resumed their downward march on Thursday, falling by 0.73 per cent.

The Reserve Bank of India kept the repo rate steady at 6.5 per cent for the ninth time in a row, pointing to a slower-than-expected drop in inflation. The decision aligns with the ongoing scrutiny of rising food prices, which greatly influence the consumer price index. Though some members advocated for a rate cut, the majority voted to maintain the current monetary stance. RBI Governor Shaktikanta Das said while India's economic growth appears robust and forex reserves have soared to $675 billion, achieving the 4% inflation target remains challenging. Persistently high food prices, especially in June when vegetable prices rose sharply, are a key concern. Shayan Ghosh reports on the central bank’s decision amid slow disinflation.

Foreign airlines are increasingly tapping India's rich pool of aviation talent amid rising travel demand. Airlines such as Riyadh Air, Turkish Airlines and Saudia are conducting recruitment drives in India to hire cabin crew, particularly for flights with many Indian travellers. Mint’s aviation correspondent Anu Sharma spoke to senior executives and other industry insiders, who highlighted the strategic importance of the Indian market to global aviation.

Remember Ramalinga Raju? The founder of Satyam Computers confessed to a 1.5 billion dollar accounting fraud in 2009. Now Brane Enterprises, a firm linked to his younger son Byrraju Rama Raju, is in hot water. The Hyderabad-based company recently to let go of more than 1,500 employees and hasn't paid salaries for the past three months. It is also behind on some of its financial obligations such as tax deductions and provident fund contributions. While management promised to clear dues by August 12, Mint’s Samiksha Goel reports that employees are skeptical because of previous broken promises.

Challa Sreenivasulu Setty is gearing up to take the helm at State Bank of India, India's largest lender, for three years starting August 28. He steps into a complex financial landscape in which the bank confronts a noticeable disparity between robust loan growth and slower deposit accumulation, alongside rising delinquencies in unsecured loan products such as Xpress Credit. Despite these challenges, the bank's balance sheet remains strong. Shayan Ghosh reports that industry experts see potential in Setty's leadership to enhance strategic areas such as deposit market share, SME growth, and digital initiatives.

Irfan Razack, chairman of real estate developer Prestige Group, has been methodically expanding the company’s footprint. Starting with Bengaluru, the group gradually entered other southern cities. Despite tempting offers from Mumbai, he kept his distance until a promising project at Pali Hill caught his eye. This marked Prestige's entry into Mumbai's real estate market, which now represents a significant portion of its sales. Razack's ambitions didn't stop there. He's now setting sights on Delhi-NCR, challenging established giants such as DLF and Godrej Properties. Mint’s Madhurima Nandy looks at what the future holds for the Prestige Group.

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Show notes:

RBI holds rates as disinflation remains slow

Foreign carriers eye Indian talent for cabin crew

Satyam hangover: The chaos inside a tech firm with family link to Ramalinga Raju

New SBI chairman Setty has his task cut out

Realty wars in NCR: Can Prestige Group eat Godrej’s lunch?