Performance of Bank credit in last decade. Affected due to slowdown in industrial credit towards the second half of the decade. #Bank#Credit#GDP
(2/7)
A triple blow!
1. A commercial credit downcycle due to capital downcycle. #Bank
(3/7)
2. Emergence of alternative credit sources for companies. #credit
(4/7)
3. Increased Risk aversion among bankers with the existing legal issues.
With the changing environment with respect to capital cycle and legal framework, can we expect industrial credit to improve? #Risk
(5/7)
PSU banks have industry credit as a major share in their books. With industry credit improving, are the PSU banks capable of maintaining their market share in the industry credit?
SBI is already showing an improving performance over time. #PSUBank#SBI
M2 which is a broad measure of money supply, has grown 81% in the last 7yrs to nearly $20Trn. An increase in the supply of money typically lowers interest rates, which generates more investment and puts more money in the hands of consumers. Hence stimulating spending.
Bonds struggled during the last major stagflationary period, in the late 1960s. Rise in oil prices,unemployment, loose monetary policy pushed the core CPI Index to a high of 13.5%. The Fed had to raise interest rates by nearly 20%.
Situational concerns are specific to YOU! There are no right or wrong choices, but there are right and wrong financial behaviors. Who’s helping you master behavior?
The new wage rules come into effect in April 2021. In this thread, we break down
•How this could impact you
•How a financial adviser can help
The government is seeking feedback on these rules and is yet to publish the final rules.
What: Basic component of #salary to be at least 50%
Impact for Individuals: Contribution to #PF increases, Take home reduces.
Impact for Corporates: Employee costs go up
Should you be worried that your take-home is less? No, because you’re not losing money. In Richard Thaler’s book Nudge,he highlights the importance of automatic contributions to #retirement accounts. You’ll end up saving more money towards retirement without any additional effort