JUNE 20248TOP STORIESPNB LOOKING TO EXPAND INTERNATIONAL FOOTPRINTHERO MOTOCORP INVESTS RS.124 CRORE INTO ATHER ENERGYState-owned Punjab National Bank plans to open a representative office in Dubai, as part of its plan to expand its global footprint. The bank has got the board of directors' approval for opening a representative office in Dubai and the process is on for seeking regulatory clearance, PNB managing director Atul Kumar Goel told PTI.Hopefully, he said, the representative office should come up during the current financial year, if all regulatory approvals are in place.As on March 31, 2024, PNB had presence in six countries by way of two subsidiaries (London-UK and Bhutan), one joint venture (Nepal), two representative offices (Myanmar and Bangladesh).With regard to improving interest income, he said, the focus would be to increase low cost deposit CASA (Current Account Savings Account).CASA as a percentage of total deposit stood at 41.4 per cent at the end of March 2024, he said, the target is to improve beyond 42 per cent by the end of the current fiscal year. The bank intends to keep credit cost below 1 per cent during this financial year.With all these efforts, he said, the Return on Assets (ROA) is expected to increase to 0.8 per cent during the year and touch 1 per cent by the end of March 2025, translating into a substantial jump in profit. Hero MotoCorp, a leading two-wheeler manufacturer, has invested Rs 124 crore into electric scooter maker Ather Energy, increasing its stake by an additional 2.2%. This investment solidifies Hero MotoCorp's position as the largest shareholder in Ather Energy, with its total shareholding now exceeding 40%. The latest funding round values Ather Energy at Rs 5,636 crore, up from the Rs 4,666 crore valuation during Hero MotoCorp's previous investment of Rs 140 crore in December last year.Ather Energy's financial highlights indicate an estimated turnover of Rs 1,753 crore for FY24, slightly down from Rs 1,784 crore in FY23. The company reported a net loss of Rs 864 crore for FY23, while Hero MotoCorp did not disclose any loss for FY24. This financial landscape underscores the challenges Ather faces even as it continues to grow and attract investment.Significant shareholder changes have also taken place, with Flipkart cofounder and one of Ather's early investors Sachin Bansal selling a substantial portion of his stake to Zerodha cofounder Nikhil Kamath and looking to sell the remainder. This reshuffling of shareholders indicates a dynamic investment landscape as stakeholders position themselves in the evolving market.Hero MotoCorp's strategic investment underscores its commitment to the electric vehicle market and its confidence in Ather Energy's potential for growth and innovation. As the largest shareholder, Hero MotoCorp is poised to influence Ather's future direction and capitalize on the burgeoning EV market.
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