financetom
Economy
financetom
/
Economy
/
Rise in interest rates revealed hidden stresses in parts of banking sector: Tata Group Chairman
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Rise in interest rates revealed hidden stresses in parts of banking sector: Tata Group Chairman
Jun 27, 2023 2:05 PM

The rise in interest rates has revealed hidden stresses in parts of the banking sector and this could impact global growth in the coming year, according to Tata Group and Tata Motors Chairman N Chandrasekaran.

Share Market Live

NSE

In his address to shareholders of Tata Motors in the annual report for 2022-23, he said, "the current year witnessed a surge in inflation requiring coordinated action by most central banks to increase interest rates to control inflationary expectations."

Chandrasekaran further wrote, "While inflation is starting to moderate, the rise in interest rates has also revealed hidden stresses in parts of the banking sector that enjoyed a long run of low-interest rates and hence not prepared for the rate rise. This could impact global growth in the coming year."

Recollecting his last year's message, he said, "recent history has been relentless with the global pandemic, military conflict, growing inequality, supply chain shortages and more." These challenges are resulting in structural shifts in economies and societies, he said, adding, these are continuing to play out.

In the energy transition, Chandrasekaran said the move to green mobility is "irreversible" while the transition for rebalancing supply chains to become resilient is on.

He also pointed out that digital transition — artificial intelligence and machine learning are becoming mainstream. In the talent transition, there is the coming of age of the Talent cloud, a diverse, inclusive, global talent pool that can be accessed remotely.

Chandrasekaran also said the Tata Group is committed to building sustainable businesses.

The group initiative, 'Aalingana' outlines its approach to planet resilience and the "aspiration of net zero by 2045 and the vision of securing the future by innovating today".

He further said Tata Motors has announced its commitment to sustainability targets which include achieving net zero status, promoting a circular economy, and preserving biodiversity.

"As we move forward, Tata Motors will remain focused on executing against its strategy to deliver growth, profitability, and free cash flows consistently," Chandrasekaran said, adding, the company is committed to strengthening its core businesses, accelerating innovation, and unlocking efficiencies while exploring new opportunities for the future.

Stating that Tata Motors is starting to move to a position of strength after overcoming many challenging years, he said, "The upcoming year and beyond are crucial, as it capitalises on the efforts made during this period to achieve a performance that makes us proud." Moreover, Chandrasekaran said, "These next few years mark a significant shift towards a greener and technologically advanced future, necessitating swift and agile action."

(Edited by : Pradeep John)

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Traders add to bets on Fed rate cuts after soft inflation data
Traders add to bets on Fed rate cuts after soft inflation data
Apr 10, 2025
(Reuters) -Traders on Thursday bet the U.S. Federal Reserve will resume cutting interest rates in June and probably deliver a full percentage point of reductions to its policy rate by the end of the year. after data showed inflation last month was softer than economists had expected.  Before the data, which showed consumer prices rose 2.4% in March, down from...
US close to trade deals with trading partners, White House's Hassett says
US close to trade deals with trading partners, White House's Hassett says
Apr 10, 2025
WASHINGTON (Reuters) - The United States is considering offers from 15 countries on tariff agreements and is close to deals with some of them, White House economic adviser Kevin Hassett said on Thursday after President Donald Trump lowered some of the duties in a stunning reversal. USTR has informed us that there are maybe 15 countries now that have made...
US weekly jobless claims rise marginally
US weekly jobless claims rise marginally
Apr 10, 2025
WASHINGTON (Reuters) - The number of Americans filing new applications for unemployment benefits rose slightly last week and could trend higher as companies navigate President Donald Trump's tariffs on imports. Initial claims for state unemployment benefits increased 4,000 to a seasonally adjusted 223,000 for the week ended April 5, the Labor Department said on Thursday. Economists polled by Reuters had...
US Dollar Falls Early Thursday Ahead of Consumer Price Index, Weekly Jobless Claims Data, Fed Appearances
US Dollar Falls Early Thursday Ahead of Consumer Price Index, Weekly Jobless Claims Data, Fed Appearances
Apr 10, 2025
07:49 AM EDT, 04/10/2025 (MT Newswires) -- The US dollar fell against its major trading partners early Thursday before the release of weekly jobless claims and consumer price data for March, both at 8:30 am ET. The decline in the dollar occurred even after an announcement by the Trump administration Wednesday afternoon that it was temporarily suspending its tariff increases...
Copyright 2023-2025 - www.financetom.com All Rights Reserved