Bajaj Finserv AMC’s Siddharth Chaudhary Hails RBI’s Bold 50 bps Cut and CRR Reduction as Timely Support for Economy Amid Global Uncertainties

By-Mr. Siddharth Chaudhary, Head- Fixed Income, Bajaj Finserv AMC

“The Monetary Policy Committee (MPC) delivered surprises on three fronts. First, it implemented a 50-basis point rate cut, exceeding market expectations of a 25-basis point reduction. This move aims to support the economy amid rising trade uncertainties and easing inflationary pressures. Second, the MPC shifted its monetary policy stance from “accommodative” to “neutral”, with the Governor emphasizing that future actions will be guided by incoming data. Third, a 100 bps CRR cut.

Prior to the policy announcement, we had highlighted a strong likelihood of a 50-basis point cut, noting that any further easing would depend on a significant deterioration in global growth and trade conditions. With today’s decision, short- to medium-term bonds are expected to perform well, supported by a substantial liquidity surplus following a 100-basis point cut in the Cash Reserve Ratio (CRR). Core liquidity surplus is now projected to be around INR 8 trillion. However, as market expectations approach the terminal rate, profit booking is evident in longer-term bonds.

It is also worth noting that the pre-policy real interest rate of 2% was relatively high, especially in the context of heightened global uncertainties. Given the domestic growth-inflation dynamics, a more accommodative stance was justified to sustain economic momentum. With the FY26 inflation forecast revised downward to 3.7% from 4%, the real interest rate now stands at 1.8%, which remains elevated. Going forward, further rate cuts will only be feasible if inflation projections decline further in upcoming policy reviews.”

RBI’s 50 bps Rate Cut Lauded as Timely Boost for Housing Demand and Economic Growth, Experts Urge Effective Transmission

By-Mr. Amit Bhagat, Co-Founder, CEO and MD, ASK Property Fund

“RBI’s announcement of a further rate cut of 50 bps is a significant proactive step at a time when demand for residential real estate is seeing signs of slowing down across segments due to increased prices. Home ownership continues to be an aspiration and dream for every Indian household, and these rate cuts, followed by reduced home loan interest rates, will strengthen home buyer confidence.

A cumulative rate cut of 1 per cent in the last 6 months is likely to benefit the affordable segment significantly, which was most impacted due to affordability”.

By-Dr. Bharath Supra, Associate Professor – Finance & Programme Chairperson, SBM, Navi Mumbai Campus

The 50 basis point reduction in the repo rate, bringing it down to 5.5% is a surprise move, something that surpassed market expectations. I congratulate the Reserve Bank of India’s MPC, under Governor Sanjay Malhotra, for this shot in the arm. It is exactly what India needed now to spur economic growth in the face of global uncertainties.

However, the rate cut’s impact hinges critically on how effectively banks and financial institutions pass them on to end borrowers. The transmission of rate cuts to retail and SME segments has remained a sticky point. Without stronger transmission mechanisms, the RBI’s monetary easing may not translate into actual credit growth or consumer spending. I am confident that the banks and financial institutions will rise up to the occasion and do their part for the country.

Artificial Intelligence – 1 Million Jobs

By-Dr.Krishna Kumar C, Director & Professor, Asian school of Business,Thiruvananthapuram

It`s time to study AI
10 Lakh skilled professionals by 2026 (Union IT ministry`s report)

 India is poised to see a massive surge in demand for Artificial Intelligence (AI) professionals, with projections estimating the need for one million skilled individuals by 2026, according to the report -India’s AI Revolution: A Roadmap to Viksit Bharat -released by the Union Ministry of Electronics & IT.

 The world has seen a major shift in the last two decades. Technology has taken over our lives. In 2000, the five largest corporations in terms of market capitalization were Microsoft and CISCO, both technology companies, General Electric, a diversified conglomerate, Walmart, a retail giant and Exxon Mobil, a player in the oil and gas field. The scenario has changed drastically in the last two and a half decades. The leader in Apple today, followed by Microsoft, Nvidia, Amazon and Alphabet-all technology companies.

 The changing face of technology is now experienced by all of us. In the mid-1970’s there was only one watch brand, HMT, available in India and one popular scooter brand, Bajaj. A customer in Kerala had to travel all the way to Kochi to buy a watch or a scooter since the brands had only one showroom each in Kerala. For a Bajaj scooter, one had to book and wait for over five years to get an allotment letter from the company. Today, one does not have to move away from their table. In one click you can order a laptop computer or television or vegetables and they get delivered to your doorstep.

 Traditional avenues of marketing are giving way to digital marketing. The younger generation has almost stopped reading newspapers and magazines. They can be best approached through their mobile devices. Advertisements and messages to such customers can now be delivered through social media platforms. This shift is visible in the digital marketing spends too. In India, according the Statista.com, the spend on digital marketing was Rs. 59,000 crores in 2023. By 2027 this figure is expected to reach close to Rs.100,000 crores.

 Fintech refers to the use of technology to deliver financial services. Fintech is gaining prominence in our lives. All of us now depend on mobile banking apps and online payment technologies. The onslaught of COVID-19 forced us to shift to online payment platforms and now it has become a way of life even for roadside vendors. The finance minister announced recently that she wants to target 100 crore UPI transactions per day in the next three years.

 Artificial Intelligence is all around us. Many of us may not realize its impact and influence in our daily lives. Digital assistants like Siri and Alexa understands our commands and help us in a host of activities. When we do shopping online, AI provides us suggestions based on our purchase habits and preferences. When we watch movies on OTT platforms, AI studies our preferences in terms of languages and genre and recommends movies to us for viewing. Self-driving cars and direction apps like Google maps and Apple maps work using AI.

 A question that haunts all of us is whether AI and machines will take over and make humans redundant. This is very similar to the fear that we had when computers entered our offices and factories a few decades ago. Computers did not reduce jobs; on the other hand, it created many more opportunities to us. A similar thing can be expected from AI. AI may take away many jobs, but many more are likely to be created. Of course, this would imply that we would have to acquire new skillsets that would be required to manage these new jobs.

 -What role does AI play in finance?
The Finance Industry also uses artificial intelligence extensively to improve efficiency and speed of tasks. AI finds application in forecasting, management of investments, risk management, fraud detection, customer service and so on. AI is helping the finance industry, especially the banking sector to automate traditionally banking processes. AI helps financial organizations to engage with the customers in a much better way by predicting their behaviour and understanding their purchase preferences. Organizations are enabled to offer personalized and innovative products and services, accurate and timely customer support and refine their credit scores on real-time basis.

 AI is also finding applications in stock markets. Stock market predictions and forecasts become more accurate with the use of AI as compared to traditional methods. AI stock trading models have in-built risk management algorithms that adjust portfolios based on real-time data. It helps minimize potential losses.In the insurance industry, AI helps organizations to analyze vast datasets to detect fraudulent claims and other suspicious activities more effectively than human agents. AI-powered systems can automate parts of the claims process, reducing processing time and costs.

 The aspiration of a commerce graduate would be to get placed in the financial sector. If the students do not get exposed to the changes in this sector brought in as a result of the introduction of artificial intelligence and equips themselves by gaining adequate knowledge in this field, them may find themselves outdated by the time they graduate and approach the job market.

 Courses- BCom , BCA, B. Tech ,M. Tech B. Tech and M. Tech
Students and professionals who are interested to learn more and gain knowledge about Artificial Intelligence have many options open to them now. For those who wish to pursue the engineering stream, there are B. Tech and M.Tech courses that incorporate machine learning and artificial intelligence into the curriculum. The Kerala Digital University offers MSc and M Tech programmes that focus on artificial intelligence, along with other specializations. The Indian Institute of Management, Kozhikode offers a Professional Certificate Programme in Data Science and Artificial Intelligence for Managers. The Government of Kerala’s ASAP, Additional Skill Acquisition Programme offers a 720-hour programme – AI-Machine Learning Developer.

 There are certain Arts & Science colleges in Kerala that offer AI certification as a value-added course for their BCA students. In such courses, the value-added certifications are provided by private partners. Students should check out the quality of the course provider before selecting such courses. There are private universities in Karnataka that have incorporated AI into their BCom and BCA programmes. Recruiters are likely to value courses provided by universities or institutions of repute rather than by private agencies.

 Recruiters prefer students who have hands-on experience as compared to those who posses only theoretical knowledge. There are universities that offer practical experience during the delivery of the programme. In such courses, BCA students would create AI algorithms and BCom students would use AI algorithms to work on financial data and come up with financial forecasts. Getting hands-on experience will help the students in their job placements as such students are deployable with minimum onboarding training.

 Studying AI also opens up great career opportunities. The rapidly growing field of artificial intelligence offers a wide range of opportunities. AI professionals are needed in sectors such as healthcare, finance, and cyber security. Opportunities can also be found in technology companies, research institutions, and startups. There are possibilities like machine learning engineer, AI researcher, data scientist, AI consultant etc. The best courses from undergraduate level are available today, including in Kerala. You can choose the appropriate ones from a recognized university.To stay ahead in this rapidly evolving field, continuous learning is essential. You should obtain the best AI courses, certifications, and practical training.

Asian School of Business LAUNCHES 3 EXCLUSIVE JOB-ORIENTED DEGREE COURSES IN EMERGING TECHNOLOGIES
The Asian School of Business (ASB), a premier B-School in Thiruvananthapuram, is redefining undergraduate education in Kerala. ASB has launched 3 Bachelor Degree programmes in emerging technologies like AI, FinTech, Data Science, Digital Marketing and E-Commerce. The new courses starting from this academic year are BCA (Hons) – Data Science & AI, BBA (Hons) -Digital Marketing & E-Commerce and B.Com (Hons) -AI & FinTech. These CUSAT- offered programmes are aligned with the National Education Policy 2020 and are designed to meet industry demands. Across all programs, students are guided to pursue industry-relevant certifications from Google, HubSpot, SEMrush, and LinkedIn, with access to over 100 free online course certifications. With this launch, ASB brings its hallmark of academic excellence, innovation, and career-readiness to undergraduate education.The Bachelor of Commerce (B.Com) in FinTech with Artificial Intelligence (AI) offered by ASB is a forward-thinking undergraduate program tailored for students aiming to excel at the intersection of finance and technology. This course integrates foundational commerce subjects with cutting-edge technologies, preparing graduates for the evolving financial landscape.

Aster DM Healthcare champions sustainability with e-Waste recycling and tree plantations in tribute to World Environment Day 2025

Bangalore, June 06, 2025 – In celebration of World Environment Day 2025, Aster Volunteers, the global CSR arm of Aster DM Healthcare, announced a series of environmentally responsible initiatives aimed at promoting sustainability and social inclusivity.

As part of their ongoing commitment to environmental conservation, Aster Volunteers successfully undertook a large-scale e-waste collection drive and tree plantation campaign across India. Through the e-waste collection drive, Aster’s hospitals and offices across five states collected for proper disposal of nearly 1.14 tons of electronic waste, preventing hazardous materials from harming the environment. Additionally, recycling bins were strategically placed in schools, communities, and localities to encourage the ongoing responsible waste disposal and recycling habits, supporting the principles of a circular economy and resource conservation.

Complementing these efforts, the team will be planting at least 5,000 trees across various locations in their respective clusters, built on last year’s successful planting of over 15,000 trees which contributed to local ecological rejuvenation.

Dr. Azad Moopen, Founder & Chairman of Aster DM Healthcare, stated, “At Aster, we are committed to continuously reducing our carbon footprint and will continue our efforts to achieve our environmental goals. Our steadfast dedication to sustainability has earned Aster the highest ESG ranking with a ‘Strong’ rating among listed healthcare companies in India by Crisil in 2023.

“On the occasion of World Environment Day, we reaffirm our pledge to align with India’s vision of a cleaner and greener future by 2047. Every device responsibly recycled, and every tree planted reflects our dedication to creating a sustainable environment for future generations. Let us all continue working together towards a healthier, greener planet,” he added.

Beyond these campaigns, Aster DM Healthcare is advancing its sustainability agenda through several long-term initiatives. In the past fiscal year, the group used over 11.108 million kWh of renewable energy from solar, wind, and hydro sources, cutting its carbon footprint to 7,942 tonnes of CO2. At Aster CMI Hospital, 86% of energy came from renewables, and at Aster RV Hospital, 99%. Aster is commissioning a 55-acre solar plant at one of its units, which is expected to generate 60,225 MWh of solar energy annually, furthering its shift toward renewable energy. Furthermore, on the water & waste management front, Aster has installed 19 sewage treatment plants across India and has successfully produced 97,656 kilolitres of recycled material, reducing landfill burden and conserving resources.

Aligned with the 17 United Nations Sustainable Development Goals (UNSDGs), Aster has made significant progress in areas such as Good Health and Well-Being, Gender equality, Clean Water and Sanitation, Affordable and Clean Energy, Decent work and Economic Growth, Climate Action, Reduced Inequalities, Responsible Consumption and Production, and Partnership for the Goals.

RBI’s 50 bps Repo Rate Cut Sparks Real Estate Revival, Lifts Homebuyer and Developer Sentiment

In a much-anticipated move, the Reserve Bank of India (RBI) has cut the repo rate by 50 basis points to 5.5%, signaling a supportive policy stance aimed at bolstering economic growth and stimulating demand across key sectors. The decision is being welcomed across the board, particularly by the real estate industry, which stands to benefit significantly from lower borrowing costs and improved liquidity conditions.

 The rate cut comes at a critical juncture, with the real estate sector showing signs of steady recovery amid rising demand in both affordable and mid-income housing segments. With home loan interest rates expected to soften further, the move is expected to make housing more accessible, especially for first-time buyers—a demographic that has been instrumental in driving residential sales over the past few quarters.

 Mr. Vikas Garg, Joint Managing Director, Ganga Realty, described the RBI’s decision as:

“The RBI’s decision to reduce the repo rate to 5.5% is a timely and impactful step that brings a wave of optimism for the real estate sector. With home loan interest rates expected to decline further, housing becomes more accessible, especially for first-time buyers. This move is poised to strengthen end-user demand and support the residential market’s recovery. It also improves liquidity and reduces the cost of capital, which is crucial for project execution and overall sectoral stability. As the policy stance shifts to ‘neutral,’ it signals a balanced approach to growth while keeping inflation in check. This reduction in rates reinforces confidence among both homebuyers and developers and is expected to catalyze momentum across key housing markets.”

 The sentiment was echoed by Mr. Saransh Trehan, Managing Director, Trehan Group, who emphasized the broader economic and sectoral impact of the move.

He said” The RBI’s decision to cut the repo rate by 50 basis points to 5.5% is a welcome move and a strong signal of support for India’s economic momentum. For the real estate sector, this is a timely boost that will significantly improve housing affordability and buyer sentiment. Lower interest rates directly translate to reduced EMIs, encouraging prospective homeowners to make purchasing decisions with greater confidence. This development is particularly beneficial for first-time buyers and will likely drive demand in both affordable and mid-segment housing. From a developer’s standpoint, easier credit availability will also help streamline project execution and enhance liquidity. We believe this rate cut, combined with the government’s continued focus on infrastructure and urban development, will reinvigorate the realty sector and contribute meaningfully to India’s growth story.”

 With the RBI’s decision expected to ease financial pressures on both consumers and developers, industry stakeholders are optimistic that this move will serve as a catalyst for sustained growth in the housing market. The repo rate cut also reinforces the central bank’s commitment to maintaining a growth-supportive environment while keeping inflationary pressures in check—a delicate balance that is crucial for long-term stability and investor confidence.

 As the real estate sector gears up for the next phase of expansion, the latest policy intervention is seen not just as a rate adjustment, but as a strategic boost to economic sentiment and homeownership aspirations across the country.