Discover and read the best of Twitter Threads about #nbfc
Most recents (16)
#BRILLIANT CHARTS showing India’s GDP Growth - A Notable #ACHIEVEMENT by #Modinomics
Let’s look at India's nominal GDP that matters to Households & Businesses
EXCLUDING government borrowing & spending) Indians Households & Business Experience ~ZERO GROWTH since 2014-22
Let’s look at India's nominal GDP that matters to Households & Businesses
EXCLUDING government borrowing & spending) Indians Households & Business Experience ~ZERO GROWTH since 2014-22
This contrasts with the period FY 2008-14 when non-government component of GDP accounted for 38% of nominal growth.
Economists believe these animal spirits to be a vital ingredient for high growth of #SMEs & #Businesses
Economists believe these animal spirits to be a vital ingredient for high growth of #SMEs & #Businesses
But you might argue that lots of STARTUPS have created jobs and lots of govt data shows lots of New Business Registrations since 2017
BOTH ARE TRUE but
During these yrs #Farmers, #Unorganised Biz & #SMEs LOST a total of #45-60 MILLION JOBS. So 1-2 Million Startup jobs is a drop
BOTH ARE TRUE but
During these yrs #Farmers, #Unorganised Biz & #SMEs LOST a total of #45-60 MILLION JOBS. So 1-2 Million Startup jobs is a drop
A #BRILLIANT move by the @FinMinIndia hit 4 birds with one stone by introducing 3 changes in the Finance Bill. The 3 birds..
1) Higher Tax Collections
2) Capital Controls
3) Bank Deposits
4) Lower cost of Govt funding.
But will HURT GROWTH. Long #THREAD
1) Higher Tax Collections
2) Capital Controls
3) Bank Deposits
4) Lower cost of Govt funding.
But will HURT GROWTH. Long #THREAD
What are the changes
1) End of LTCG on #debt, Gold ETFs, Overseas or Any mutual fund that invests in less than 35% india equity bought after 1 Apr-23
2) STT Raised by 25%
3) Tax Collected at Source (TCS) raised to 20% (5% earlier) & threshold reduced to Zero (Rs7 lac earlier)
1) End of LTCG on #debt, Gold ETFs, Overseas or Any mutual fund that invests in less than 35% india equity bought after 1 Apr-23
2) STT Raised by 25%
3) Tax Collected at Source (TCS) raised to 20% (5% earlier) & threshold reduced to Zero (Rs7 lac earlier)
TRIGGER POINT: The Banking system is facing a shortage of liquidity => PRIMARY motive for the Changes in the Finance Bill in my opinion.
WHAT CAUSED THE LIQUIDITY CRUNCH? Weak Deposit growth vs credit growth.... also reflected in rising Credit/Deposit ratio
WHAT CAUSED THE LIQUIDITY CRUNCH? Weak Deposit growth vs credit growth.... also reflected in rising Credit/Deposit ratio
We have had a busy 2021 and we look forward to 2022 which is brightened further with the spirit of Indovation and ideation. Cheers to each of you and your families.
2/n 2021 was a challenging year personally for many with #Covid 2nd wave but it presented professional opportunities for #startup ecosystem too. @SucSEED_IN built its maiden #AngelFund #IndovationFund, amongst overwhelming response & kept growing its strength as #AngelNetwork too
3/n At #IndovationFund, we believe that early-stage discovery is best handled with the help of Experienced folks. We have great #SectoralCommittee structure helping us to discover, screen, curate, invest and mentor these startups, in 6 sectors of our #Fundfocus #SucSEEDfamily
Hello Traders, Below is our trade plan for upcoming week. It will be a buy & hold portfolio with time frame of 30 trading sessions #NIFTY #BANKNIFTY #fmcg #INFY #TCS #GranulesIndia #Bayercorp #SBIcard #Cipla #tataconsumer #Alltimehigh #Dhoni #DhoniRetires #ThalaDhoni #CSK
Below is the link to chart where we have tried explaining the idea behind buy on Granules #Granules #API #momentuminvesting #alltimehigh #ATH
tradingview.com/chart/GRANULES…
tradingview.com/chart/GRANULES…
Below is the link to chart where we have tried explaining the idea behind buy on Tata Consumer #TataConsumer #fmcg #Nifty #banknifty
tradingview.com/chart/TATACONS…
tradingview.com/chart/TATACONS…
Reforms are coming to India's power sector. #DISCOMs in union territories are proposed to be privatized. What has India learnt from privatizing #electricity #distribution #utilities in the past?
Some food for thought >
1/n
#ElectricityTwitter #EnergyTwitter #privatization
Some food for thought >
1/n
#ElectricityTwitter #EnergyTwitter #privatization
Private/PPP DISCOMs operate in a few cities of India—most notably in #Delhi (Tata Power Delhi Distribution, #BSES Rajdhani & Yamuna), although among others, #Kolkata (CESC) and #Mumbai also receive power from privatized #DISCOMs.
What benefits accrue from #privatization?
2/n
What benefits accrue from #privatization?
2/n
Improvements in performance are best outcomes of #DISCOMs' #privatization—AT&C losses have fallen from 50+% in 2002 to ~8% in '19 for Delhi's DISCOMs, and CESC incurs 9.8% as against the 14.3% allowable in Kolkata.
3/n
3/n
Thread: Loan To Value Ratio
If you are a home buyer and plan to take a housing loan to finance your purchase, or if you are planning to invest in a housing finance company, this will add more to your knowledge base.
If you are a home buyer and plan to take a housing loan to finance your purchase, or if you are planning to invest in a housing finance company, this will add more to your knowledge base.
Loan-To-Value or LTV Ratio is the proportion of the home value that can be financed by Banks/NBFC's for your home purchase. So if the LTV ratio of a bank is 80%, that means the will lend you Rs. 80 for every Rs. 100 worth of home you are planning to buy.
Well, If the bank is going to lend only 80%, where is the remaining 20% going to come from? Your Pockets. Yes, Its called Down Payment.
Why is this ratio important for Banks/NBFC's? Well, It defines the risk that bank takes.
Why is this ratio important for Banks/NBFC's? Well, It defines the risk that bank takes.
Finally, after so much wait, @RBI Governer comes out to provide much needed relief to economy - key announcements thread:
#RBI #economy #rbigovernor
#RBI #economy #rbigovernor
1. Yes, even after all the projections of economic growth slip, India might still stay at the top of global economic growth chart (As per IMF).
#IMF #GDP
#IMF #GDP
2. NBFCs, this time RBI has looked out for you.
TLTRO 2.0 - targeted long term repo operations of INR 50k crore ease the liqudiity issues, specifically for NBFCs.
#NBFC
TLTRO 2.0 - targeted long term repo operations of INR 50k crore ease the liqudiity issues, specifically for NBFCs.
#NBFC
#Moodys has pulled down its growth forecast for FY19 to 5.8%. Only surprise is why it’s not even lower. In the past year growth has collapsed from 8% to 5%. /1
@threadreaderapp
#India #CPI #GDP #RBI #bonds #inflation #ratecut #NBFC #jobs #credit #NPA #NCLT #growth
@threadreaderapp
#India #CPI #GDP #RBI #bonds #inflation #ratecut #NBFC #jobs #credit #NPA #NCLT #growth
Very interesting read and covers many angles.
#dhflscam #DHFLघोटाला #DHFL
#HDIL #PMC_BANK #scam
#NBFC #HousingCrisis
#realestateinvestor
#realestateinvestor
economictimes.indiatimes.com/news/company/c…
#dhflscam #DHFLघोटाला #DHFL
#HDIL #PMC_BANK #scam
#NBFC #HousingCrisis
#realestateinvestor
#realestateinvestor
economictimes.indiatimes.com/news/company/c…
(1/n) September for #MutualFunds till date
1.#NBFC bond repayment will happen. Rollovers or refinancing looks difficult, as risk averse #investors would prefer repayment instead of rollover
1.#NBFC bond repayment will happen. Rollovers or refinancing looks difficult, as risk averse #investors would prefer repayment instead of rollover
(2/n) 2.NBFC total repayment due - ~ ₹35K crore, DHFL - ₹4K crore bond to get matured, Edelweiss, Anand Rathi & IIFL to repay ₹600-₹800 crore each
3.IDBI MF moves to court against DHFL, total exposure stands at ₹44crore as on May
3.IDBI MF moves to court against DHFL, total exposure stands at ₹44crore as on May
(3/n) 4.Nifty PSE index which has lost 15.6% since budget declared raising ₹1 tn through disinvestment. Thursday saw rebound in many of these PSU shares on back of news that govt is reviewing disinvestment through ETF route
After the buildup and the crash-course in my last post, here is my post analysing Promoter Financing market in India. The analysis attempts to explain the slowdown in promoter financing in India and brings out some interesting facts. Read on to know more. Thread 1/12
As per BSE data, the aggregate value of promoters' pledged shares was ~1.85 lakh crore as at Aug 23, 2019. In comparison, the value of promoters' pledged shares stood at ~Rs 2.5 lakh crore as at Aug 30, 2018. The fall in pledge levels indicate slowdown in promoter financing. 2/12
An ET article (July 22), observed that 'pledging of shares by promoters of NSE companies dropped to a six-year low'. Another ET article (Aug 15), noted that 'interest rates on loans against shares (LAS) have surged by about 300 basis points in the past 3 months'. 3/12
This post is a crash course on promoter funding, which serves as a bedrock for my next post.
Promoter funding/ financing, is the colloquial term used for raising of debt funds by Promoters of companies usually against the security/ comfort of shares. Thread 1/13
Promoter funding/ financing, is the colloquial term used for raising of debt funds by Promoters of companies usually against the security/ comfort of shares. Thread 1/13
A promoter, many a times, needs money for (a) equity infusion in a new/ growing business, (b) personal use (c) enhancing stake in established business (d) family settlement etc.
If he doesn't have enough cash at his disposal, he borrows from finance firms. 2/13
If he doesn't have enough cash at his disposal, he borrows from finance firms. 2/13
The most liquid and widely accepted collateral/ security for these borrowings are shares of established (usually listed) companies.
These shares are pledged to the financing firm (or a trustee) to avail of the debt facility. 3/13
These shares are pledged to the financing firm (or a trustee) to avail of the debt facility. 3/13
Government, on August 13, issued a 'Scheme to provide a one-time partial credit guarantee to PSBs for purchase of pooled assets of financially sound NBFCs'. This scheme is a step in right direction towards solving the liquidity crunch that NBFCs are faced with. Thread (1/12)
It may be recalled that the Finance Minister, in her budget speech, had made an announcement to this effect. Thid scheme attempts to address temporary asset liability mismatches of NBFCs/HFCs so that they don't have to resort to distress sale owing to paucity of liquidity. 2/12
The major features of this scheme are:
A) It is a one time guarantee provided by GoI, for a period of 24 months.
B) The schemes is only applicable to PSU banks for first loss of up to 10%
C) Guarantee can be invoked if the credit rating of the pool goes to 'D' (default). 3/12
A) It is a one time guarantee provided by GoI, for a period of 24 months.
B) The schemes is only applicable to PSU banks for first loss of up to 10%
C) Guarantee can be invoked if the credit rating of the pool goes to 'D' (default). 3/12
I am revisiting the topic of Public Issue of Non-Convertible Debentures (NCDs) covered a couple of days back. Only this time, I am focusing on Subordinated (Tier II) NCDs that are slipped in (sometimes slyly) along with senior secured NCDs of NBFCs. Thread (1/9)
Refer to the picture, below (the pic is representative only). A subordinated NCD (circled in red) appears as one of the many maturity options. A naive investor may think that it is similar to other NCDs on offer, just that it has a longer maturity. (2/9)
What many investors are unaware of is the fact that subordinated NCDs are paid after senior NCD holders in-case the company goes into liquidation i.e. subscribers to option I to VIII NCDs, in the pic above, would be paid before payments are made to option IX to XI NCDs. (3/9)
#DHFL #NBFC Had a conversation with a large institutional investor. Some interesting points
1.DHFL poses systematic risk which regulators are taking very lightly
2.The problem in DHFL if not checked in time can spill over to broader financial sector and have a cascading effect
1.DHFL poses systematic risk which regulators are taking very lightly
2.The problem in DHFL if not checked in time can spill over to broader financial sector and have a cascading effect
3.The next two big weak links – India bulls and Yes Bank
4.Cumulatively among the 3, there is a 5 lac crores exposure at risk.
4.Cumulatively among the 3, there is a 5 lac crores exposure at risk.
5.Sensible thing would be for the RBI to look at the books of DHFL
a. If no skeletons – then give them a line of credit to tide over any liquidity issues
b.If problem in the books – then takeover and run down the book in a way that does not put the whole system at risk.
a. If no skeletons – then give them a line of credit to tide over any liquidity issues
b.If problem in the books – then takeover and run down the book in a way that does not put the whole system at risk.
The ghosts of 2008 are back. We had #Lehman. Today we have #ILFS and #RupeeAt75. The bulls have given up. #Sensex is down 4500 points in 25 sessions. As shared by @Prashanth_Krish over 50% of stocks traded on NSE are down 50% or more. Friday’s fall would have made it more brute.
