With the introduction of the Asset quality review in FY15-16, banks' asset quality has been under pressure. This was further aggravated by events such as demonetisation, GST, and the IL&FS crisis. As a result, the GNPA ratio for Banks rose to 11.2% in FY18 vs 4.3% in FY15. (3/8)
Since FY18, GNPAs have witnessed a gradual moderation supported by healthy recoveries via IBC and an improvement in the Corporate NPL cycle. (4/8)
As the banks focused on cleaning up the balance sheets GNPA’s started moderating to 6.9% in Sep’21 from 11.2% in FY18, despite the impact of the pandemic. (5/8)
The efforts of the banks were clearly visible, reflecting in the provision coverage ratios. The banking system made total provisions of Rs.16.5Lk Cr. over FY16-21 (3.4x higher) vs Rs.4.9Lk Cr. over FY06-15. (6/8)
Comfortable provisioning, the decline in credit costs, decrease in GNPA’s and improving profitability makes the private and public banks look extremely attractive. (8/8)
“How can I safeguard myself from a sharp correction?” For most investors, this top-of-mind question is bothering them. Yet, nobody wants to sell. Everyone definitely wants to participate in any potential upside. (2/n)
#Investors #RiskManagement
This is where a sound investment strategy can certainly help. Risk mitigation can be done in every portfolio. Portfolio strategy can also significantly reduce risks by choosing safer options like multi-asset strategies. (3/n)
India has been increasingly exploring equity as an asset class. It is heartening to see inflows from domestic investors and DIIs beat the dominant FIIs.
(1/n)
#Equity #AssetClass #Investor #FII
For a retail investor, Mutual Funds (MFs) are the suited and preferred way to get a hang of equity assets. Passive funds have become popular over the recent years.
(2/n)
#RetailInvestor #MutualFund #Equity
Active Fund Managers are backed by a research team that allows them to make well-informed decisions based on market opportunities.
Passive funds, however, follow a #benchmarkindex and require no fund manager or research team, thus reducing their cost.
Changing asset allocation is a sure shot way of ensuring risk mitigation in an investor's portfolio. But if you are already owning a portfolio of equity that you built assiduously, you are posed with a peculiar problem. (2/n)
#AssetAllocation #Investor
Should you sell your equity portfolio down as part of your risk mitigation? (3/n)
The markets seem to have hit a new all-time high and turned. Clearly, the index highs need more legs to stand on and still need tremendous firepower to rise. (2/n)
#markets #personalfinance
With at least three major index constituents, private banks, information technology and pharma struggling to hold onto their recent valuations, it becomes a steeper climb for the index from here. (3/n)
The markets have intense spells when politics prevails over everything else in directing sentiment. Closer to every general election, this trend returns to haunt the markets. (2/n)
But, the ability of politics to drive sentiment is influenced by how much the outcome of the election will drive change. If change is likely to be significant and for the better, the markets can run up ahead of elections. (3/n)
The markets go up too quickly when people are least prepared for it. That setting is perfect for us to get that fear of missing out. We call it the FOMO feeling. (2/n)