Banking & Economy Editor @BloombergQuint Interested in the economy, banking and markets (mostly ex-equities). Views are personal
This chart! Bajaj Finance borrowing at close to repo rate. Piramal at repo +400 bps! Both, at one time, considered equally blue-blooded. (Courtesy: Credit Suisse)
Given average inflation over a 12 month period, there is still room for rate cuts, says Nomura’s Sonal Varma. But the question is how low can the repo rate go? Is there a real rate floor the MPC has in mind...
But core inflation has fallen to about 3.5% - the lowest in the current series. Core-headline divergence re-emerges (only in the reverse direction!)
Once India’s premiere project finance institution, ICICI Bank decides to shutter that division. Not surprising but as Anil Singhvi says “everyone cannot just be funding cars and bicycles. Someone will have to fund India’s infrastructure.” Who will?
Q2 GDP Growth: Bad But How Bad? @PallaviNahata looks at the high-frequency indicators used by the RBI. Mostly all weakening...except government spending. What does that mean for GDP? via @BloombergQuint
On a day when Yes Bank shares jumped 24% on news of an unnamed $1.2 billion investment, a look back at the major ups and downs the lender has seen.
Doesn’t bode well for Q2 GDP...
Yes Bank says it has received a $1.2 billion offer. Means the investor will hold more than a third of the bank’s equity. Questions: who is the investor? Will rbi see the bank as special situation and approve. 👇🏽 https://t.co/0sEYyyPG1X via @BloombergQuin
The committee rejects the argument that an overvalued real exchange rate has played a role in India’s poor export performance. BUT says that high real interest rates certainly have been damaging. via @BloombergQuint
As @PallaviNahata says, where there is a spend, there is an EMI! NBFCs from Bajaj Finance to Aditya Birla Finance are offering EMIs schemes for designer clothes and shoes to dental treatment and cosmetic surgery. The unsecured loans juggernaut rolls on.
6% resolved 23% liquidated 49% ongoing (of which 36% over 270 days) India’s bankruptcy code experience so far (source: Latest IBBI update)
SBI Q2: -Slippages down 45% QoQ - Recovery/Upgradation weak at Rs 3,931 cr - PCR at 81% - Advances up 8.6%; retail up 19%; corporate up 2.7% - Asset quality details below 👇🏽 Ps: Compliments @TheOfficialSBI which always has the clearest investor presentation in the industry
Axis Bank on SME loans: Given some of the stress in larger corporates, this is resulting in delayed payments to SME segment. We have to be cautious.
RBL Bank earnings not looking great: - Net Profit down 73% to Rs 54 crore - Absolute gross NPAs up 95% QoQ - Gross NPA ratio at 2.6% vs 1.38%
ICYMI 👇🏽 DHFL informed exchanges yesterday that it will stop all payments except “day to day operational expenses
Bombay HC putting an interim stay on payouts on loans securitised by DHFL brings a hidden risk in India’s securitisation market to the fore. Can this hurt the securitisation market? @advaitrao1 reports. Must read (atleast for the finance geeks)
So are MFs still pushing their mid-cap funds the hardest? You know...buying low and all that ...
Clarity on the ICRA downgrade of DHFL loan pools: Payments have been stopped due to Bombay HC interim order, which put an interim stay on all creditor payments. Collections on underlying loans remains healthy.