BACK PAGE | PAGE 22 COMPANIES | PAGE 4 Delhi bans entry ofnon-BSVI vehicles amid rising pollution INTERNATIONAL | PAGE 7 Fundingtightensfordigital lendersdespiteloangrowth MUMBAI, WEDNESDAY, DECEMBER 17, 2025 Xi faces calls for stronger yuan in currency debate FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL LXV NO. 297, 28 PAGES, `12 P U B L I S H E D F R O M : A H M E D A B A D , B E N G A L U R U , C H A N D I G A R H , C H E N N A I , H Y D E R A B A D , K O C H I , K O L K ATA , L U C K N O W, M U M B A I , N E W D E L H I , P U N E SENSEX: 84,679.86 ▼ 533.50 NIFTY: 25,860.10 ▼ 167.20 NIKKEI 225: 49,383.29 ▼ 784.82 HANG SENG: 25,235.41 ▼ 393.47 `/$: 91.03 ▼ 0.30 `/€: 107.01 ▼ 0.46 BRENT: $59.61 ▼ $0.95 GOLD: `1,31,555 ▼ `1,385 ECONOMY PAGE 3 PM LOOKS TO DOUBLE TRADE WITH JORDAN PRIME MINISTER NARENDRA Modi sought to double India-Jordan bilateral trade to $5 billion over the next 5 years, as he invited Jordanian firms to take advantage of India's high economic growth to reap handsome returns, reports PTI. » INSIDE « GOVTTO SELLUPTO 3% STAKE IN IOB PAGE 3 ICICI PRUAMC FOURTH MOST SUBSCRIBED INDIAIPO PAGE 6 BRANDWAGON PAGE 9 FROM PRICE WARRIOR TO VALUE CURATOR, NIRMA MIRRORS A MATURED MARKET HDFC Bank gets nod to buy up to 9.5% in IndusInd THE RBI HAS approved HDFC Bank’s subsidiaries to acquire an aggregate holding of up to 9.50% stake in IndusInd Bank, according to exchange filings, reports fe Bureau. The group entities include HDFC Mutual Fund, HDFC Life Insurance Company, HDFC ERGO General Insurance, HDFC Pension Fund Management and HDFC Securities. ■ PAGE 6 Pidilite steps up paints focus, to expand into East PIDILITE INDUSTRIES, BEST known for its Fevicol and Fevikwik brands, is expanding its paints venture called Haisha into the east from the southern markets, where it was launched two years ago, reports Viveat Susan Pinto. ■ PAGE 4 Private credit seen rising 35%, but flat without SP deal PRIVATE CREDIT DEAL value is expected to rise about 35% year-on-year to nearly $13 billion in 2025, but the growth is largely skewed by a single large transaction by the Shapoorji Pallonji (SP) Group, with underlying market expansion remaining muted once that deal is excluded, reports Raghavendra Kamath. ■ PAGE 6 SANDIP DAS New Delhi, December 16 AFTER A FOUR-YEAR gap, the Food Corporation of India (FCI) isexploringtheoptionofraising about `25,000 crore through off-budgetresourcestobridgea widening gap between budgetedallocationsanditssharply higher projected food subsidy expenditure in FY26.The proposed fundraise, through government-guaranteed bonds, reflects mounting pressure on FCI’s finances as subsidy costs overshoot initial estimates. Sources told FE that the practice of funding food subsidy shortfalls through loans from the National Small Savings Fund (NSSF) and bond issuanceswas formallydiscontinued in 2021.FCI last tapped the bond market in August 2021,raising`8,000crore,just ahead of the new funding framework coming into force. In her 2021-22 Budget speech, Finance Minister Nirmala Sitharaman had announced an end to extrabudgetary borrowings for food subsidy, after such liabilities swelledtonearly`6.7lakhcrore by end-FY21.In FY22,the Centre brought about `5 lakh crore—nearly 75%—of these liabilitiesontoitsbalancesheet, largelybytakingover`4.27lakh croreofNSSFloansraisedbyFCI to clearfood subsidyarrears. Following this clean-up, FCI’s cash position remained relativelycomfortable,aidedby timely subsidy releases from the government. That situation, however, has changed in FY26, with expenditure pressures rising well beyond initial projections. While discussions are ongo- ● Proposed law 4,700 Dec ‘19 8,000 Jan ‘20 8,000 Jan ‘20 5,262 Sectorspecific licences Insurers allowed to operate in niche segments such as cyber, property and marine M&A flexibility Provision allowing insurers to offer life, general & health under single licence Mergers permitted between insurance, non-insurance firms Open architecture Distributor remuneration Irdai empowered to cap commission payouts Reinsurance capital norms Minimum capital requirement for reinsurers sharply lowered to `1,000 crore from `5,000 crore »INSIDE« Composite licences Framework to allow agents to tie up with multiple life, general and health insurers IRDAI TO EXERCISE REGULATORY POWERS VIA CONSULTATIVE PROCESS: FM PAGE 2 presented in Parliament.While ICICI Prudential Life Insurance ledtheloserswitha1.89%drop, StarHealthandAlliedInsurance was down 1.52%, GIC 1.28%, Go Digit 1.03% and HDFC Life Insurance1.01%. Digitalinsuranceintermedi- Food subsidy (` lakh cr) 2.86 2.72 2.11 1.97 2.25 Source: Food ministry; *revised estimate #projection against BE of `2.03 lakh cr, over 70% subsidies routed through FCI ing,the final size and timing of theproposedbondissuanceare yet to be firmed up. Officials cautionedthatmarketappetite for large government-guaranteed bond issuances is limited, which could constrain the quantum of borrowing. Continued on Page 5 ROUT CONTINUES RAGHAVENDRA KAMATH Mumbai, December 16 THE RUPEE REMAINED under pressure on Tuesday amid concernsoverthependingIndia-US trade deal, breaching the 91mark for the first time and hitting a fresh record low for the fourth consecutive session. The rupee slumped to 91.08 inintra-daytradebeforeclosing at91.03,down30paisefromthe previousclose.Theslidefrom90 to 91 took less than two weeks. The currency had breached the 90-mark for the first time on December 3. Over the past month,the currency has fallen 2.6%. So farin FY26,the rupee hasdeclined6.5%,thehighestin threeyears,makingittheworstperformingAsiancurrency. “Weak sentiment from a delayed trade deal, combined with foreign outflows and limitedRBIintervention,continues to pressure the rupee,” said Madan Sabnavis, chief economist at Bank of Baroda. This, however, is not a fair exchange Source: Bonds payable during 2028-2031, interest rate range–7.09%-8.95% Rupee vs dollar THE NATIONAL COMPANY LawTribunal(NCLT)onTuesday approved the long-pending demerger scheme of mining majorVedanta,clearingtheway forthegrouptosplitintomultiple sector-focused companies spanning aluminium, oil and gas,power,and iron and steel. “The sanction to the company scheme is granted,” the Mumbai bench of the tribunal, comprising Charanjeet Singh Gulati and Nilesh Sharma,said, pronouncing the order. Thetribunalhadreservedits decision after concluding hearings in November. Following the news, the company'ssharesrose4.20%to close at `572.50 on the NSE. Vedanta welcomed the ruling,callingitasignificantstepin itscorporaterestructuringexercise.“The approval marks a key milestoneinVedanta’stransformation into focused, sectorleading companies with clear strategic mandates and dedicated capital structures. The companywillnowproceedwith the necessary steps to implement the scheme,” a company spokesperson said. Theclearancecomesdespite 90.70 90.73 Previous close 90.80 90.90 90.81 90 91.10 91.03 0.33% 91.00 Inverted Dec (Intra-day,scale16) Open Close rateconsideringthefundamentals and a weakening dollar, he added.“The CEA’s (chief economist adviser) latest remarks on thetradedealhaveaddeduncertainty, indicating more volatility in coming months and further weakening in the rupee. I believe RBI interventions will not help in such conditions,” Sabnavis said. “Therewashighdemandfor dollars due to capital market outflows and buying pressure from corporates towards hedging cover and oil-relatedpayments.Therefore, the rupee,which opened weak, immediately lost level,” said a dealerat a public sectorbank. Continued on Page 5 Australia’s Green clinches red-hot IPLdeal CAMERON GREEN BECAME the most expensive overseas player in the Indian Premier League (IPL) history as the Kolkata Knight Riders (KKR) franchise bought the Australian all-rounder for `25.2 crore at the player auctions for the 2026 season, held inAbu Dhabi on Tuesday. Chennai Super Kings (CSK) splurged `28.4 crore for uncapped Uttar Pradesh spinner Prashant Veer and wicketkeeperbatter Kartik Sharma, both going for `14.2 crore each. —Viveat Susan Pinto TOP THREE MOST EXPENSIVE PLAYERS IN IPL AUCTION 2026 TOP THREE MOST EXPENSIVE FOREIGN PLAYERS IN IPL HISTORY CAMERON GREEN CAMERON GREEN (KKR) 25.2 25.2 (2026)(KKR) 18 PRASHANT SHANT VEER/KARTIK R/KARTIK SHARMA RMA (CSK) 24.75 TOP THREE MOST EXPENSIVE UNCAPPED PLAYERS IN IPL HISTORY PRASHANT VEER/ KARTIK SHARMA (2026) (CSK) 14.2 MITCHELL STARC MATHEESHA PATHIRANA (KKR) aries such as Policybazaar parent PB Fintech and InsuranceDekho,which rely heavily on variable commission struc- CHRISTINATITUS Mumbai, December 16 8,000 Aug ‘21 FDI limit in insurance raised from 74% to 100% N-energy Bill may bring in foreign funding BUILDING ON THE clear directional push to open up the restricted nuclear power sector to private sector participation,the rulesthatwillfollowthepassage oftheproposedSustainableHarnessing and Advancement of Nuclear Energy forTransformingIndiaBillarelikelytomakea provision for potential foreign funding in the sector, report LizMathew&AnilSasi. PAGE2 tures for distribution, are expected to be hit hard. Continued on Page 7 Rupee breaches 91-mark Vedantademerger getsNCLTnod amid trade deal jitters 2,737 Mar ‘19 Key additions A BILL, WHICH seeks to strengthentheregulatorypowers of insurance sector regulator Irdai,was passed by the Lok Sabha on Tuesday. The Sabka Bima Sabki Raksha Bill,which was introduced by Finance Minister Nirmala Sitharaman earlier in the day, also allows 100% foreign direct investment (FDI) in the sector. Theproposedlawallowscappingofcommissionpayoutsand tighter management expenses norms.Sharesofmostinsurance companies fell after the Bill was FCI's borrowings through bonds (` cr) Key omissions Foreign ownership NARAYANAN V Chennai, December 16 LOOKING BACK Mar ‘13 MAJOR CHANGES also allows 100% FDI in sector ‘25-26# THE NEW GDP series is set for a major overhaul with the government proposing various changes, including the adoption of the COICOP 2018 for the compilation of private final consumption expenditure, reports fe Bureau. Bill granting Irdai more powergets LS nod FCI explores off-budget financing ‘24-25* GOVT PROPOSES OVERHAUL OF GDP SERIES ‘23-24 PAGE 2 ‘22-23 ECONOMY `25,000-CR BONDS LIKELY ‘21-22 IN THE NEWS AVESH KHAN (2022) (Lucknow Super Giants) (KKR) (2024)(KK 10 KRISHNAPPA GOWTHAM (2021) 14.2 5 20.5 (figures in ` crore) PAT CUMMINS (CSK) 9.25 (2024) (Sunrisers Hyderabad) Source: BCCI GRAPHIC: SARVESH KUMAR SHARMA RELIEF RALLY 580 569 570 560 550 550 540 Vedanta 3.52% 530 Dec 15 (close) Dec 16 (close) objections raised by the ministry of petroleum and natural gas, which had opposed the demerger citing concerns over financial risks, alleged misrepresentation of hydrocarbon assets, and inadequate disclosure of liabilities.The ministry hadflaggedwhatitdescribedas concealment of facts,including the depiction of exploration blocks as Vedanta’s assets and loansraisedagainstthoseassets. Continued on Page 7 STARTUP CORNER Ola founder sells 26 mn equity shares Zepto filing for `4,200-cr IPO nextweek OLA ELECTRIC FOUNDER Bhavish Aggarwal on Tuesday sold 26 million shares, representing a 0.6% stake in the company, through a bulk deal, reports fe Bureau. The shares were sold at an average price of `34.99 per share, less than half of the company’s IPO listing price of `76. ■ PAGE 6 GROCERY DELIVERY FIRM Zepto is preparing to file for an initial public offering of about $500 million (`4,200 crore) as early as next week, according to people familiar with the matter, as competition hots up in India’s quickcommerce market, reports Bloomberg. ■ PAGE 4 Consulting industry seeing demand slump as clients turn cost-conscious McKinseyplans thousands of job cuts as slowdown bites SRIDHAR NATARAJAN & AMBEREEN CHOUDHURY December 16 AS MCKINSEY & Co partners gathered in the consulting giant’s birthplace in late October, Bob Sternfels delivered a rallying cry. “We will kick some ass as we start our second century,” the firm’s top executive told the thousands of attendees. But away from the 100year festivities in Chicago, McKinsey bosses have been conveying a more pragmatic message:It’stimetogetleaner. The firm’s leadership has discussed with managers in non-client-facing departments the need to cut about 10% of headcount across their business, according to people with knowledge of the matter. That could amount to a few thousand job cuts that McKinseywouldstaggeroverthenext 18 to 24 months, the people said, asking not to be identified. For McKinsey, the go-to adviser for companies and countries, it’s the type of costcutting approach that its consultants often prescribe to clients. The firm’s revenue growth has flatlined in the last five years, leading to a reset afterrapidhiringovertheprior decade. “As our firm marks its 100th year,we’re operating in a moment shaped by rapid advances in AI that are transforming business and society,” STALLED GROWTH ■ The job cuts are focused on support functions, while consultant hiring continues ■ Firm’s revenue has flatlined at ■ Headcount peaked around ~$15-16 bn 45,000 for 5 years despite massive hiring in the prior decade and has already fallen to ~40,000 ■ Companies and governments have turned more cost-conscious ■ AI automating internal and tech roles, affecting some support functions a McKinsey spokesman said. “Just as we’re partnering with clients to strengthen their organisations, we’re on our own journey to improve the effectiveness and efficiency of our support functions.” It’s early to gauge the net impact on headcount, the spokesman said.From 2012 to 2022, the firm’s employee count climbed from 17,000 to ■ Governments (US, China, Saudi Arabia) are pulling back as high as 45,000. Since then, it has slid to around 40,000. Firmwide revenue has hovered around $15 billion to $16 billion in the last five years, though Sternfels told partners that the company is seeing improving growth. The company still plans to hiremoreconsultantsasitcuts back on support functions,the people said. McKinsey hasn’t designatedacodenameforthe plan this time around.Its push to ax about 1,400 jobs in 2023 undertheinternallabelProject Magnolia had unnerved many of its staff, one of the people said. Challenging period It’s an inflection point for the flag bearer of the consulting industry, whose roots go back to a University of Chicago accounting professor. James McKinsey started the company in 1926, doling out advice to a local meatpacker. The firm has since racked up an enviable roster of clients, from blue-chip companies like Coca-Cola Co and Goldman Sachs Group to governments that span the globe. That vast network of influence was on full display at the annualpartnerconfabinOctoberthat doubled as a kickoff to McKinsey’s centennial celebration. Rio Tinto Chairman Dominic Barton,Visa Inc chief Ryan McInerney and former US Secretary of State Condoleezza Rice were in attendance, according to people with knowledge of the event. Hometown talk show legend OprahWinfrey added surprise star power. Continued on Page 7