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BUSINESS EYE JANUARY 05, 2024 | The Indian Eye 30

YEAR-END REVIEW 2023

Low inflation, high rate

of growth, digital collaboration and

banks in pink of health

Sirius JV emerges as a key player in the digitalization of India’s economy, capitalizing on
Sirius’s global digital transformation expertise and Adani’s strategic insights

OUR BUREAU deployment strategy ensures a robust foundation
for testing and refining cutting-edge technologies
Mumbai
in real-world industrial scenarios.
n a big announcement on Thursday, Union
Minister Piyush Goyal said that 13 crore peo- BAD ASSETS OF BANKS CONTINUE TO
Iple came out of poverty in the country during DECLINE: RBI
a five-year period. The Minister said the Indian
economy has seen tremendous resilience with “low eserve Bank of India on Thursday released
inflation” and “a high rate of growth.” the 28th issue of the Financial Stability Re-
The minister also said that the Union gov- Rport, December 2023 reflecting the collec-
ernment has set ambitious targets for exports for tive assessment of the Sub-Committee of the Finan-
the new year. “With the new year, we have very cial Stability and Development Council (FSDC) on
ambitious targets for export. The Indian economy risks to financial stability and the resilience of the
has seen tremendous resilience and outstanding Indian financial system.
results in terms of our ability to continue to be the According to the RBI report, Scheduled
fastest-growing large economy in the world, with Commercial Banks’ gross non-performing assets
low inflation and a high rate of growth. There is (GNPA) ratio continued to decline to a multi-year
significant stability of our Indian currency,” the low of 3.2 per cent and the net non-performing
minister for commerce and industry said. assets (NNPA) ratio to 0.8 per cent in September
Citing a NITI Ayog report, the minister said, 2023.
“With inclusive growth, 13 crore people came out RBI further stated that the Indian economy
of poverty in a five-year span.” and the domestic financial system have remained
“A rapidly growing middle class is leading to resilient which is supported by strong macroeco-
greater demand for goods and services, the minis- nomic fundamentals and healthy balance sheets
ter added. “We will focus on exporting in areas like of financial institutions, moderating inflation, im-
processed food, Shri Anna and other agricultural proving external sector position and continuing
products. More than 30 million Indian diaspora fiscal consolidation.
live in the world,” the minister said, adding that In- However, RBI also stated that the global
dian food products are today very much consumed economy is facing multiple challenges: prospects
by foreigners across the world. Union Finance Minister Nirmal Sitharaman and Commerce of slowing growth; large public debt; increasing
Minister Piyush Goyal at Parliament Library Building in New economic fragmentation; and prolonging geopo-
ADANI AND SIRIUS FORM A JOINT Delhi (ANI Photo/ Rahul Singh) litical conflicts.
VENTURE As per the report, the capital to risk-weighted
assets ratio (CRAR) and the common equity tier
dani Enterprises Limited (AEL) and Sirius jected to evolve into a USD 1 trillion market by 2030. 1 (CET1) ratio of scheduled commercial banks
International Holding Limited, a subsidiary The joint venture is geared towards deploy- (SCBs) stood at 16.8 per cent and 13.7 per cent,
Aof International Holding Company (IHC), ing cutting-edge technologies, including Artificial respectively, in September 2023.
UAE, have formalized a joint venture named Sirius Intelligence (AI), Internet of Things (IoT), and “Macro stress tests for credit risk reveal that
Digitech International Limited (Sirius JV). Secured Blockchain Products. This tech arsenal SCBs would be able to comply with minimum cap-
This partnership, with Sirius holding 51 per will be harnessed for industrial applications, mark- ital requirements, with the system-level CRAR in
cent and Adani 49 per cent, aims to spearhead In- ing a significant leap in efficiency, real-time deci- September 2024 projected at 14.8 per cent, 13.5
dia’s digital transformation, targeting the colossal sion-making, and transformative business models. per cent and 12.2 per cent, respectively, under
USD 175 billion digital economy opportunity. Sirius JV envisions creating an integrated eco- baseline, medium and severe stress scenarios,”
Sirius JV emerges as a key player in the digi- system of digital platforms that extends across in- RBI report said.
talization of India’s economy, capitalizing on Sir- frastructure industries, FinTech, HealthTech, and Also, the RBI said that the resilience of the
ius’s global digital transformation expertise and GreenTech. The comprehensive approach aims to non-banking financial companies (NBFCs) sector
Adani’s strategic insights. optimize industries, streamline processes, and fos- improved with CRAR at 27.6 per cent, GNPA ra-
The venture is set to lead the USD 175 billion ter growth in various sectors. tio at 4.6 per cent and return on assets (RoA) at 2.9
digital transformation opportunity, which is pro- Strategic Testbed Deployment: solutions. This per cent, respectively, in September 2023.

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