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RBI Hikes Repo Rate Once Again, Flipkart Plus to Take On Amazon Prime et al.

Professor of Financial Economics and Part-time Value Investor, Transfin.
Aug 1, 2018 1:51 PM 2 min read
Editorial

End of Day Wrap-up (Wednesday / Aug 1, 2018) #RBI #reporate #RBIratehike #LIC #IDBI #Flipkart #FlipkartPlus #AmazonPrime #Paytm #Apple #Grab #Uber #Transfin

Editor's Comment: RBI hikes repo rate by 25 basis points to 6.50% to keep inflation under control. This was the first time since October 2013 that RBI raised repo rates (the rate at which it lends to commercial banks) at two consecutive policy meetings. The reverse repo rate was increased by 25 basis points to 6.25%.

 

Cabinet clears LIC’s takeover of 51% stake in IDBI Bank. According to the proposal, the bank will issue preferential shares to LIC to raise capital. LIC has 7-7.5% in the bank and will acquire the remaining for majority holding.

 

Flipkart Plus to be launched on 15th August to take on Amazon Prime. Flipkart Plus will be a no subscription, points-based programme for customers. As more points are added, customers will receive additional offers from Hotstar, Zomato, MakeMyTrip etc, on top of quicker product deliveries and discounts.

 

RBI tells Paytm payments bank to stop adding new customers with immediate effect. RBI has made this decision after observing Paytm’s lack of adherence to KYC (Know Your Customer) norms.

 

Apple Q3 revenue rises 17% YoY to $53.5bn and net income rises 32% YoY to $11.5bn. International sales accounted for 60% of this quarter’s revenue. Strong results were driven by sales of iPhone, App services and wearables worldwide.

 

Ride-hailing firm Grab, which runs Uber in Southeast Asia , to raise c. $2bn in latest round of funding of which $1bn is to come from Toyota Motor Corp. The latest infusion will value the company at $11bn.