Banking & Economy Editor @BloombergQuint Interested in the economy, banking and markets (mostly ex-equities). Views are personal
Yes Bank's plan to raise funds via a FPO by June end/early July not working out yet, reports BQ's Vishwanath Nair. This means for a second quarter, the bank will be well below regulatory capital requirements. via @BloombergQuint
Yes Bank FPO (planned for end-June / mid-July) unlikely to happen immediately, reports BQ’s Vishwanath Nair.
Features of Indonesia monetisation plan: 1) There is a private placement at 7-day reverse repo rate (not at zero). 2) Central bank backstop of bond auctions (if unsubscribed). 3) There is clear mandate for spending on public servives/health care etc. 4) Bonds tradable.
Yes Bank may sell a part of wholesale loan book to SBI. Good story by @GopiGopa Am sure the sales are happening at arms length, but still begs the question (or reiterates the point) that this should have been an outright sbi merger.
Edelweiss continues to shrink / de-emphasize credit business. Pure credit book now just ~ Rs 20,000 crore. Moving credit to AIFs structure, doing asset management more than lending. Plus partnering with banks. Rashesh Shah in conversation with my colleague @_nirajshah
Edelweiss reports Rs 2,281 crore loss on higher impairment. - Impairment due to changed expected credit loss/ Covid crisis. - Not clear how much of the loan book is under moratorium. - Liquidity at 24% of borrowings. Presentation not particularly clear.
Fitch Ratings on some of what we are all debating right now: - The double edged sword of reviving growth vs increase in debt-GDP ratios. - How rating agencies are viewing central bank financing of Govt debt. - And if India’s financial sector is its weakest link. 👇�
Actually there was no error. The release had a column for CreditWatch / Outlook Action, which is then given below. Assuming some read it to suggest that Axis Bank is on CreditWatch, which it is not. Facts unchanged: -Downgraded to BB+ -Outlook Stable -Not on credit watch
Bond markets have calmed over the past month. Even though the RBI hasn't done anything dramatic — no direct monetisation/ no OMO calendar / no corporate bond purchases. As Abhishek Upadhyay of ICICI PD told @advait_palepu "RBI would be chuffed..."
Rupee has a stronger link with economic growth than other metrics, says the former FX head at Reliance. Currency may hit 80/$ in the current crisis, he tells BBG’s Subhadip Sarkar. Rare to hear a view from a Corp treasury person. via @BloombergQuint
1/n A short thread on a story today, which I think is systemically important. Last week, RBI issued new draft rules for housing finance companies. Until recently, HFCs were under NHB. This was transferred to RBI post the DHFL fiasco.
Right at the start we had written that bringing in a motley Crüe of investors was not going to be enough. Yes Bank would need to rebuild depositor confidence. Looks like that’s proving to be challenging as expected.
This idea of monetising household gold holds great intrigue but it has so far not worked, for very basic reasons as Andy has explained. Anyone thinking of gold-linked schemes for financing should pick up the phone and speak to YV Reddy. He explains India’s thinking on gold best.