How is this relevant for you, the MBA student?
Whether you’re preparing for interviews, GDs, or some competitions, knowing the logic and strategy behind the rise of contactless payments is a value add. No matter whether you’re studying marketing, finance, or some other specialization, there’s something everyone can take away from this article. From being valued as one of the richest people in the country to going down to zero, Anil Ambani’s RCL highlights how businesses can fail. NBFCs have been suffering some damage in the past years with heavy auditing and huge debts. Reliance Capital faced various challenges that made survival difficult. What this case highlight is how businesses deal with paying off the dues. In a move reminiscent of the famous Kodak story, Reliance Capital too has started liquidating assets and sharing their stake with the help of JM Financial and SBI Caps. This move may at least help the company pay off dues and shareholders. A lesson in crisis management this!
Meanwhile, what do you think? Do you think selling off assets is the bare minimum and the company can do more to pay off its dues? Tell us your opinions in the comments section below!
In Other News
India throws TikTok a challenge after it clears deal with Oracle in US
After confirmation of Oracle and Walmart willing to buy 12.5% and 7.5% stakes in the US operations of TikTok respectively forming a new corporate entity of US - TikTok Global approved by US President Donald Trump himself, the Indian government has said that they are willing to reconsider the ban of the Chinese app if TikTok wishes to re-engage with the government. The Indian authorities want the TikTok management to come up with a plan to ensure that the data stays within the Indian jurisdiction along with some corporate structural changes in TikTok India. TikTok has been facing a ban in India since the border clash between the Indian and Chinese soldiers. India is currently in the process of evaluating responses from the 200 banned apps over data sharing, storage, and security concerns.
HSBC’s shares dive to the lowest level since 1995
The share price of HSBC is at its lowest in 25 years after a leaked document from the US Financial Crime Enforcement Network (FinCEN) revealed how some of the biggest banks in the world allowed criminals to launder money all around the world. Share prices of other banks like Standard Chartered, Barclays, and Deutsche Bank all took a heavy hit after their names were revealed to be on the document. HSBC had already been facing a lot of heat due to political pressures in Hongkong and the pandemic before the leak. The bank had already set aside between $8 bn to $13 bn dollars for bad loans due to the pandemic and are currently pushing for a major restructuring for its global operations.
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