The PMC rescue: what it means is that rbi insurance pays up to 5l for principal plus interest only till 31 March 2021. If you have more than that you get money in pieces over 10 years but no further interest.
That is retail. All corporates who have money in it will get preference shares at 1% dividend per year with 80% of their money.

The remaining 20% will become equity warrants but to convert to equity they get to do it at the lower end of price band whenever bank goes ipo.
This is positive for the bank and for the acquirers. Most liabilities will be covered by the rbi insurance and share conversion of corporate deposits. Most loans are probably gone, but what loans remain will easily pay for the remaining liabilities over 10years.
Big depositors will hate this and go to court as they should. The court can sequester the current assets and force them to distribute any recoveries to big depositors and corporates in proportion, minus a management fee that reduces every year.
Importantly the bank gets some capital, becomes scheduled and can start business again.

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More from @deepakshenoy

14 Nov
Moving out of coal entirely is silly for india right now. We are of course going nuclear for power but it's the rich developed countries that slow us down. We'll move when economics dictate it
Electric 2 and 3 wheelers will rock in India, not because they are environmentally better, but because, in a few years, they will be substantially cheaper.

For power, it will be about storage, localization and a move to DC, IMHO, for residential.
Run Fridge or heater on LPG/PNG and nearly all other devices (even Aircons with VFDs) can run on DC - it'll be cheaper and will reduce use of grid power. Such a thing is a disaster for the large investments in grids and in power plants, but that's okay.
Read 4 tweets
11 Nov
How do you find the best Nifty Index Fund? Aren't they all the same? The lowest TER (expense ratio) is the best?

The answer is NO. The "real" expense ratio is very different - and makes the difference.…
The Real Expense Ratio is what the fund really costs you.
And there are reasons why index funds will underperform the Index.

More at:…
Read 4 tweets
10 Nov
AMA Today (Wed, 10 Nov) at 1pm to 2pm. Ask me about stocks, markets, finance and life! No advice, just some learning.

Tweet your questions with #AskDeepak ! (Also, my book on pre-order: Image
No stock stuff please :) 2022 wise I'll still own a car and use Ola/Uber when I don't feel like driving! Thinking about weight reduction is like an SIP, it happens every month :)
Read 32 tweets
22 Sep
Zee says there is no open offer in a merger - even if effectively Sony is adding cash to buy 53% of the entity that will be merged with Zee.
Is the AGM called off? Asks a caller
This call is for the merger, we cannot comment on whether the EGM called (by Invesco/Oppenheimer) will be called off.

Means those folks haven't been brought on board for the deal?
Valuation: Sony will add 1.6 billion roughly - so around 12,000 cr. - to Sony India, and then they merge, and then Sony will own 53% of the merged entity.

Yesterday's mcap of Zee was 24,000 cr. This means the current 24,000 cr. = 47% of eventual company.(contd)
Read 7 tweets
20 Sep
What's happening at Evergrande? Here's a collection
(A Thread of Threads and Articles and all that, because no point writing out threads)
One by @KirtanShahCFP - the cause, now seems to be regulatory tightening:
Read 6 tweets
16 Sep
Finally, a better map of the world in the RBI Bulletin - moving away from that degrading Mercator projection.
Toll collections are back, but EWay bills are still not close to the peak in March, yet.
Vehicles and transport don't look greawt. Petrol consumption (by volume) is up above Feb 2020, but Diesel and others are still low. Vehicle registrations still struggling.
Read 9 tweets

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