#Top 50 NBFCs in India 2020 | Explore Tumblr Posts and Blogs

classyfoxdestiny · 3 years

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Business news live - The Hindu

2:18 P.M.

Cairn accepts $1bn refund offer, to drop cases against India within days: CEO

U.K.-based Cairn Energy PLC on Tuesday said it will drop litigations to seize Indian properties in countries ranging from France to the U.S., within a couple of days of getting a $1 billion refund resulting from the scrapping of a retrospective tax law.

The firm, which gave India its biggest onland oil discovery, termed “bold” the legislation passed last month to cancel a 2012 policy that gave the tax department power to go back 50 years and slap capital gains levies wherever ownership had changed hands overseas but business assets were in India, PTI reported.

1:51 P.M.

Voda-Idea flags industry’s unsustainable financial duress

Ailing telecom operator Vodafone Idea has flagged the industry’s “unsustainable financial duress” in its latest annual report and hoped that the government would provide the necessary support to address “all structural issues” faced by the sector.

In the Chairman’s letter to shareholders, Himanshu Kapania cited persistent challenges in the operating environment, amid “unsustainable pricing” and “hyper-competition” during FY21. Kapania expressed hope that government will support efforts to generate reasonable returns on massive investments, according to a PTI report.

1:49 P.M.

Britannia says pandemic prompted shifts in consumer preferences

Retail giant Britannia Industries said the pandemic has brought significant shifts in consumer preferences and behaviours, including the growth of online business channels, which are likely to strengthen and present new opportunities for food business in future, PTI reported.

The company is well placed to sustain growth and is confident of addressing the evolving situation with its wide distribution network, intrinsic brand strengths, innovation and technology capabilities and cost efficiency programmes.

1:42 P.M

JSW Steel output grows nearly 5% to 13.77 LT in August

JSW Steel on Tuesday posted nearly 5% year-on-year growth in its crude steel output at 13.77 lakh tonne (LT) during August 2021, as against 13.17 LT steel in the corresponding month last year, PTI reported.

During August 2021, the company said production of its flat-rolled products fell by 8% to 8.99 LT, from 9.80 LT in August 2020. Its output of long-rolled products registered a growth of 30% at 3.01 LT, as against 2.32 LT in the year ago period.

1:28 P.M

Bank of India ties-up with MAS Financial Services for co-lending

State-owned Bank of India (BOI) has entered into a co-lending arrangement with MAS Financial Services for MSME loans, PTI reported. The tie-up comes on the occasion of the bank’s 116th Foundation Day.

The bank will leverage the reach of NBFC to build an MSME portfolio, MD & CEO Atanu Kumar Das said.

1:03 P.M.

OPEC+ keen to keep oil prices at $65-$75 a barrel, Lukoil chief says

The head of Russia’s No. 2 oil producer Lukoil said that oil prices of $65-$75 were “comfortable” for consumers and that the OPEC+ group of leading oil-producing nations was striving to maintain that price range by regulating output, according to a Reuters report.

Vagit Alekperov said curbs on oil output would depend on market conditions.

“For now, September 2022 will mark a milestone when the restrictions should phase out. The company has up to 90,000 barrels a day of idle production, which we hope will be needed by the market.”

12:52 P.M.

Toyota to spend over $13.5 bln to develop EV batteries and supply systems by 2030

Toyota Motor Corp said on Tuesday it expects to spend more than $13.5 billion by 2030 to develop batteries and its battery supply system.

The world’s largest automaker by volume uses a range of battery types in its vehicles and is also considered the front runner to mass produce solid-state batteries, a Reuters report noted. If developed successfully, they could replace liquid lithium-ion batteries.

12:29 P.M.

IPO fund outperforms India benchmarks in bumper year of listings

An Indian fund that invests only in recently listed stocks has outperformed the nation’s benchmark indexes in 2021 despite skipping a majority of the initial public offerings in what’s shaping up to be a record year, Bloomberg reported.

The fund run by Edelweiss Management Ltd. has returned 46% this year, according to the firm, beating gains of 24% for the NSE Nifty 50 Index and 22% by the S&P BSE Sensex Index, which still lead the Asia region among country benchmarks, the report noted.

12:14 P.M.

BlackRock’s China investments likely to lose money, Soros says

Billionaire investor George Soros said BlackRock Inc investing billions of dollars into China now is a “mistake” and will likely lose money for the asset manager’s clients, according to an opinion piece in the Wall Street Journal.

Soros said BlackRock has drawn a distinction between the country’s state-owned enterprises and privately owned companies that is far from reality, as per the opinion piece.

Last month, BlackRock became the first foreign asset manager to operate a wholly owned mutual fund business in China tapping the fast-growing $3.6 trillion retail fund market, a Reuters report noted.

12:01 P.M.

Hyundai to offer hydrogen fuel cell versions of all commercial vehicles by 2028

Hyundai Motor Group said on Tuesday it plans to offer hydrogen fuel cell versions for all its commercial vehicles by 2028 and will cut the price of fuel cell vehicles to battery electric levels two years later.

The group, whose only other fuel cell vehicle on the market is Hyundai’s Nexo SUV, will develop fuel cell vehicles for Kia and its premium Genesis brand, which could be launched after 2025, according to a Reuters report. It did not mention specific targets for fuel cell versions of passenger vehicle models.

11:52 A.M.

JSPL steel output grows 6% in August; sales up 4%

Steelmaker Jindal Steel and Power Limited (JSPL) on Tuesday said its steel production increased 6% year-on-year to 6.6 lakh tonne in August. Its sales volume also increased by 4% y-o-y to 7.1 lakh tonne during the month.

Notwithstanding subdued construction activities due to the ongoing monsoons in August, the company has maintained strong momentum in sales and production, a PTI report noted.

11:46 A.M.

Flipkart founder files to launch vehicle to invest in Vanguard ETF

Navi Mutual Fund, the fund unit acquired by Sachin Bansal, co-founder of Flipkart, is set to make a Vanguard strategy available in the country through a new fund-of-funds scheme, the Financial Times reported.

The Indian fund group, which was previously branded as Essel Mutual Fund, is currently seeking the regulator’s approval to roll out six funds, one of which is the Navi Total US Stock Market Fund of Fund that feeds into Vanguard’s US-listed Total Stock Market Index Fund exchange traded fund, according to the report.

11:35 A.M.

Healthium Medtech files draft papers with Sebi to raise funds via IPO

Healthium Medtech has filed preliminary papers with capital markets regulator Sebi to mop-up funds through an initial share-sale, PTI reported.

The initial public offering (IPO) comprises fresh issuance of equity shares worth ₹390 crore and an offer-for-sale of 3.91 crore equity shares by existing shareholders and promoters, according to the draft red herring prospectus.

11:25 A.M.

Bitcoin becomes legal tender in El Salvador

El Salvador on Tuesday became the first country in the world to adopt bitcoin as legal tender, a real-world experiment proponents say will lower commission costs for billions of dollars sent home from abroad but which critics warned may fuel money laundering, Reuters reported.

The plan spearheaded by the country’s President Nayib Bukele is aimed at allowing Salvadorans to save on $400 million spent annually in commissions for remittances, mostly sent from the United States, the report noted.

11:12 A.M.

L&T Construction bags order for water effluent treatment business

Larsen &Toubro (L&T) on Tuesday said its construction arm has bagged a significant order for its water and effluent treatment business in India.

It has won an order from a state-utility organisation to implement rural water supply projects, providing functional house tap connections under the Jal Jeevan Mission, according to a PTI report.

The business was entrusted to implement rural water supply projects to provide potable water to 800 villages.

11:01 A.M.

Copper falls as China’s August imports hit over 2-year low

London copper prices fell on Tuesday as August imports of the metal in top consumer China fell to their lowest since June 2019, as high prices and sluggish economic growth hit demand, Reuters reported.

China’s copper imports declined 41% year-on-year in August, falling for the fifth straight month to 394,017 tonnes, customs data showed.

Three-month copper on the London Metal Exchange fell 0.3% to $9,421 a tonne, while the most-traded October copper contract on the Shanghai Futures Exchange eased 0.1% to 69,310 yuan ($10,738.41) a tonne.

10:48 A.M.

Global crypto exchange CrossTower enters India despite policy uncertainty

U.S.-headquartered digital currency exchange CrossTower has set up a local unit in India and launched a trading platform to capture the growing domestic crypto market even though the fate of cryptocurrency in India is still unclear, Reuters reported.

CrossTower India has already hired 35 people and plans to increase headcount to 100 in six to nine months, the company said.

As a late entrant to India, the company plans to increase its market share by providing competitive pricing and relying on advanced technology infrastructure, CrossTower co-founder and CEO Kapil Rathi said.

10:36 A.M.

Rupee slips 7 paise to 73.17 against U.S. dollar in early trade

The Indian rupee slipped 7 paise to 73.17 against the U.S. dollar in opening trade on Tuesday, tracking a strong American currency in the overseas market and muted trend in domestic equities, PTI reported.

At the interbank foreign exchange, the rupee opened at 73.12 against the dollar, then fell to 73.17, registering a decline of 7 paise from the last close.

10:24 A.M.

Passenger vehicle retail sales increase 39% in August: FADA

Automobile dealers’ body Federation of Automobile Dealers Associations (FADA) on Tuesday said retail sales of passenger vehicles (PV) in August increased by 39% year-on-year to 2,53,363 units, as against 1,82,651 units in August 2020.

Two-wheeler sales rose 7% to 9,76,051 units last month, compared to 9,15,126 units in the year-ago period. Commercial vehicle sales surged 98% to 53,150 units last month against 26,851 units in August last year.

The total sales across categories increased by 14% to 13,84,711 units in August as against 12,09,550 units in the same month last year, according to a PTI report.

10:15 A.M.

Edelweiss Financial Services raises ₹400 crore through NCDs

Edelweiss Financial Services Ltd (EFSL) Monday said it has raised ₹400 crore through issuance of non-convertible debentures (NCDs).

The company said the issue has seen significant demand in the retail segment with a total collection of ₹279.106 crore. Almost 50% of the total issue size got subscribed for five-year and 10-year tenure, according to a PTI report.

10:07 A.M.

Council to mull capacity-based GST on sectors seeing evasion

The Goods and Services Tax (GST) Council is likely to consider a ministerial group’s report on introducing a differentiated regime for sectors where tax evasion is very high, such as brick kilns, sand mining, and gutkha and pan masala production, even as tax experts have urged caution about such carve-outs.

9:53 A.M.

Murugappa’s turnover rises 9.5% ₹41,713 crore

The turnover of the Murugappa Group has risen 9.5% to ₹41,713 crore for FY21 while net profit surged by almost 53% to ₹4,500 crore.

Profit after tax, excluding profit from stake sale in group companies, grew by 26% to ₹3,713 crore.

9:42 A.M.

NMDC slashes iron ore by ₹1,000 a tonne

Mining major NMDC has reduced prices of iron ore Lump and Fines by ₹1,000 a tonne respectively.

Effective September 4, the new prices are ₹6,150 per tonne for Lump Ore and ₹5,160 for the same quantity of Fines, the company said in a filing.

9:34 A.M.

Indian benchmark indices open higher

Indian indices opened higher on Tuesday. BSE Sensex opened at 58,418.69, up 121.78 points, while Nifty opened at 17,401.55, up 23.75 points.

In Tuesday’s early trade (at 9:32 A.M.), Sensex fell 114.1 points or 0.20% to reach 58,182.81, while Nifty dropped 27.30 points or 0.16% to reach 17,350.50.

On Monday, the BSE Sensex settled 166.96 points or 0.29% higher at 58,296.91, while NSE Nifty climbed 54.20 points or 0.31% to its new closing record of 17,377.80.

9:11 A.M.

Oil wobbles as demand woes stalk market after Saudi price cuts

Oil prices were wobbly on Monday as investors grappled with demand concerns after Saudi Arabia’s sharp cuts to crude contract prices for Asia, Reuters reported.

Brent crude futures for November rose 0.1%, to $72.26 a barrel, while U.S. West Texas Intermediate crude for October was at $68.88 a barrel, down 0.6%, from Friday’s close.

9:00 A.M.

World shares at record high as investors count on Fed largesse

Global stocks inched higher on Tuesday to a record high for the eight straight session as investors wagered the U.S. Federal Reserve is likely to delay the start of tapering its asset purchases after the soft U.S. jobs data, Reuters reported.

Japanese shares extended their bull run. Tokyo’s Nikkei rallied as much as 1.3%, moving past 30,000 for the first time since April. Mainland Chinese shares were little changed in early trade while MSCI’s ex-Japan Asian-Pacific index was down 0.1%. U.S. S&P 500 futures were 0.1% higher from Friday’s close after the U.S. holiday on Monday.

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mahenderkhandelwal · 3 years

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About Mahender Kumar Khandelwal Insolvency Professional

I am Mahender Kumar Khandelwal is a professional registered insolvency and Chartered Accountant professional. Senior management and financial professional with wide experience spanning over 30 years in the entire continuum of structuring, financing through debt and equity instruments. Management and turnaround of Special situations and Insolvency across a wide spectrum of industries.

Led Restructuring and Resolution of large corporates (100+) across various sectors viz. Iron and Steel, Stainless Steel and utensils, System Packaging, Forging Industry, Pharma, Hotels, NBFC, Rice and Food Processing, Fertilizers, Biodiesel, Edible Oils, Biomass, Solar Panels, Power and Infrastructure, Textile, Education, Auto Component, Polymers, Electric Appliances, Plywood, Construction and Real Estate.

Started BRS practice in BDO & PWC as Leader & Partner successfully resolved 20 plus cases in Insolvency under my leadership ranging from 200 crores to 50,000 crores. Before that, I was running my Boutique Consultancy firm in the name of Varrenyam Consultants Pvt Ltd.

MONITORING PROFESSIONAL

Bhushan Power and Steel Limited. Jul 2017 – Mar 2021 3 years

BPSL is the among first dirty dozen cases referred by lenders to insolvency. The company have a borrowing of more than 47000 crores from over 35 lenders. There has been an all-around growth and complete turnaround in the operations of the company since the commencement of CIRP.

When RP took control over BPSL, capacity utilization was meagre 47% with a production level of 82,000 MT per month and EBITDA loss. Due to a combination of proactive CoC and decisions taken by the RP for enhancement of capacity utilization.

During CIRP period production had increased to 200,000 MT and the company generated EBITDA of more than 4000 crores. Moreover, the company under the leadership of the RP/MP was able to reduce the statutory and worker liabilities besides improving working capital levels. The RP/MP further ensured smooth operations while managing 15,000 employees across 9 locations and provided increments to the employees. Some of the incomplete projects were completed by incurring additional CAPEX with COC approval. On the date of implementation, there was a working capital of more than 7500 crores in a cash balance of around 2500 crores.

During CIRP Period RP have handled enquiries/investigations from Regulatory Authorities i.e. SFIO, CBI, ED and GST for pre CIRP period including the closing of a draft forensic audit conducted during pre CIRP period including the closing of draft forensic audit report conducted during pre CIRP period.

Due to turnaround and enhanced operations, Resolution applicants improved their bid amount from initial12,000 crores to 19,800 crores and JSW successfully implemented the resolution plan and taken over control of BPSL. The Financial creditors have recovered around 42 percent of their dues in BPSL resolution.

Corporate Insolvency Resolution Process KSK MAHANADI POWER COMPANY LIMITED Oct 2019 – June 2020 Hyderabad Area, India, Power Plant at Bilaspur 3600MW

KSK Mahanadi operates a coal-based power project with a nameplate capacity of 3600 MW. The company has 3 operational units and the rest are under various stages of construction. After commencement of CIRP process, we can operate all 3 units generating the highest load with 80% capacity utilization and PLF of about 76%.

With the existing operational and technical team, we have introduced various cost-cutting programs to bring in efficiency in operations. In the ongoing COVID-19 lockdown, we were running the plant at full capacity and supplying power to distribution companies despite cash flow constraints.

CIRP of KSK is substantially delayed as rail and water infrastructure of the power plant are housed in separate subsidiary companies and lenders have filed a consolidated application in NCLT. Getting investors interest in standalone Power plants is a challenge due to the unenviability of rail and water infrastructure.

Educomp Solutions Ltd. September 2017 till date:

Till date running the company as going concerned and up to date in payment to employees, Statutory dues and operational expenses despite adverse situation due to covid 19. The Resolution Plan of EBIX Singapore was approved by the lenders and subsequently approved by NCLT. However, due to covid resolution applicants have filed an application in NCLT/NCLAT for withdrawal which NCLAT is not allowed. Resolution applicant filed in Supreme court, which is pending for final judgement.

Partner and Leader Business Restructuring Services PwC Professional Services LLP Full-time Apr 2018 – Aug 2019 1 year Gurgaon

Joined as Partner & Leader of Business Recovery Services (BRS) practise at PwC India. PwC is among the top consultancy firm in India and a world leader in BRS & stressed asset resolution practices.

As a BRS Leader, I was leading a team of 70 dedicated professionals for the overall development and growth of the vertical. I have overseen and guided various CIRP assignments under various RP’s including Uttam Value Steels, Uttam Galva Metallics, Era Infra & Engineering, Parabolic Drugs, Diamond Power Infrastructure Ltd, Videocon group companies, KSK Mahanadi, Sukam Power Systems and PRIUS group of companies.

During this stint, I have developed strong and credible relationships with, stressed assets funds, international fund houses, ARCs and NBFC.

Partner & Leader- Business Restructuring BDO India LLP Full-time May 2017 – Apr 2018 1 year New Delhi Area, India

BDO India LLP is the India member firm of BDO International. BDO India offers strategic, operational, accounting, tax & regulatory advisory and assistance for both domestic and international organizations across a range of industries.

As the leader and partner of BRS division, I was instrumental in establishing insolvency practice for BDO. Through persistent market development efforts, BDO was successfully awarded 3 out of the first dirty dozen insolvency cases. These cases were Jyoti Structures, ABG Shipyards and Bhushan Power and Steel Ltd. BDO also won 3 cases in the mid-market segment. I also developed a team of insolvency professionals, an execution team for claim verification, process advisory, operation and maintenance, sectorial compliances, Balance sheet and cash flow monitoring. My team was the first one to develop systems, procedures and SOP’s for insolvency practice. In the very first year of operations, we won more than Rs. 100 crore businesses.

Managing Director Varrenyam Consultants Private LimitedSelf-employed May 2004 – May 2017 13 years and From April 2021 to till date New Delhi Area, India

A boutique financial advisory services firm specializes in the field of financial restructuring of distressed companies, settlement of debts, and resources mobilization. During this period, I have advised more than 100 corporates on financial restructuring and settlements ranging from 200 crores to 25000 crores.

My firm was a leading advisor in the Corporate Debt Restructuring process (CDR) and was instrumental in strategy formulation, scheme preparation, financial modelling, valuation and techno-economic studies. We were also involved in finding strategic investors/buyers for some of the companies where the post-restructuring plan required a change of management. We also organised funding for distressed assets through ARC, special situation funds, NBFC’s. Post-implementation of CIRP assignments I have restarted my above Boutique firm.

General Manager Finance ROLLATAINERS LTD Apr 2000 – Apr 2004 4 years Faridabad, Haryana and Delhi

As finance head, my job profile included Treasury Management, funds control including collections and disbursements and supervision of banking transactions. I was directly reporting to the President, Executive Director and Board of Directors comprising top Professionals.

I was instrumental in implementing Financial and Operational Restructuring. The financial restructuring involved Rephasement of repayments and lowering of interest rates in the first phase, creating a vehicle for Venture fund investment and saving the company from BIFR. As a member of Board presentation to board on various restructuring options, Strategy formation and approvals of the board on various cost-cutting and restructuring options including shutting down.

I was also involved in strategy formation and approvals of the board on various cost-cutting and restructuring options including shutting down loss-making businesses. Redesigning of MIS Systems and assisting top management on various financial strategies. Consolidation and Centralization of Finance, Accounts and Purchase function. Business valuation, financial modelling, Audit Finalization – Statutory, Internal, Tax, Stock, Concurrent and due diligence.

Senior Manager-Finance & Accounts Modi Rubbers Ltd May 1997 – Mar 2000 2 yrs 11 months Delhi Area, India

Part of Modicorp (ultimate holding company of B. K. Modi group companies), I was responsible for managing funds, control, overall supervision of accounts department of 13 companies in layers of holding and subsidiary structure.

I was also involved in Tax Planning, finalization of Accounts and interaction with Statutory, Internal, Tax Auditors and Auditors for valuation and Due Diligence. I also supported the group financial controller for credit rating in respect of US$ 50 Million ECB. Liaison with banks, financial institutions and taxation authorities.

Sr. Manager-Finance SARDA PLYWOOD INDUSTRIES LTD Mar 1992 – Mar 1997 5 yrs 1 mo Delhi, India

As a part of new project division, worked on project evaluation and viability study of various projects and participated in the launching of a new project from grass root level to a concept paper for management, Joint Venture Partners, and term lending institutions, venture capital funds, banks and state-level institutions.

I was also responsible for the arrangement of export credit limits from banks and export documentation. Overall supervision of Accounts department, balance sheet finalization and other related activities.

#MahenderKumarKhandelwal #MahenderKhandelwal #MahenderKumar #MrMKhandelwal #MKkhandelwal #KhandelwalMahenderKumar #MrMahenderKumarKhandelwal #MKhandelwal

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muds-management · 3 years

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swedna · 4 years

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A sharp recovery in equity markets from its March 2020 low has pushed the value of the equity portfolio of Life Insurance Corporation (LIC) by Rs 1.5 trillion since April. The insurer’s holdings in listed companies at the end of the March 2020 quarter stood at Rs 4.32 trillion, which is now valued at Rs 5.79 trillion, translating into a rise of Rs 1.47 trillion, or 34 per cent. Thus far in the financial year 2020-21 (FY21), the S&P BSE Sensex and the Nifty 50 have rallied around 30 per cent each.

The study is based on 351 companies’ data from Capitaline Plus, where LIC held over 1 percentage point stake in the June 2020 quarter. These companies accounted 72 per cent of total market capitalisation of BSE-listed companies.

A large part of the rise in LIC’s portfolio value is attributed to over 150 per cent jump in Reliance Industries (RIL) stock since March 2020 low. The stock accounted for an over one-fourth, or Rs 39,586 crore, of total insurer total gain during the period under review. LIC holds 5.87 per cent stake in the Mukesh Ambani-controlled company post the rights issue.

Information technology (IT) major Infosys, in which LIC has 7.19 per cent stake, added Rs 11,158 crore in its kitty. Besides, IDBI Bank where LIC is a promoter and holds 51 per cent added Rs 11,038 crore to the total gain. Tata Consultancy Services (TCS) added Rs 7,294 crore, while HDFC Bank, ITC, Mahindra & Mahindra (M&M), Housing Development Finance Corporation (HDFC) and Maruti Suzuki India have contributed between Rs 4,000 crore and Rs 5,000 crore in LIC’s portfolio value.

The sharp rally over the past few months has now made experts cautious on the road ahead for the markets. For all the positive momentum on the economy, one needs to remember that the pandemic is far from over, cautions Jyotivardhan Jaipuria, founder and managing director at Valentis Advisors.

“After a sharp rise in the Nifty from its lows in March, 2020 we are entering a correction and consolidation phase. From a medium-term outlook, we are still positive. If we look at our three key market driver model, (a) we are still at a low point of the earnings cycle and that will remain the primary driver for markets; (b) valuations are at fair value levels though no longer cheap; (c) trailing returns in equities are still poor and hence mean reversion is likely,” he says.

With moratorium in place, the actual asset quality trends for the financial sector, analysts say, would emerge only post the third quarter of the current financial year (Q3FY21). Banking sector (including NBFCs and HFCs), they believe, is likely to face near term headwinds on growth, asset quality and profitability.

Meanwhile, out of Nifty 50 companies, LIC has increased its stake in 28 companies by up to 1 percentage point (ppt). It, however, trimmed its holding in seven companies including Britannia Industries, Nestle India, Dr Reddy’s Laboratories, Cipla and Bajaj Auto by around 1 ppt each.

As a portfolio strategy, G Chokkalingam, founder and chief investment officer at Equinomics Research says investors can still stock up on defensives given the uncertainty around the Covid-19 pandemic despite the run up seen since March 2020 low.

“The stocks are running up in the expectation of good June quarter earnings. This cannot go on for too long. Reality will catch up soon and there will be a correction. Investors will be better off sticking to quality names in the defensive sectors – FMCG, IT and pharma – for now,” he says.

#LIC

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incorp-india · 4 years

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Current Scenario of the Real Estate Sector: A Perspective

The real estate sector in India has been facing a tough time from quite a few years. The situation has become tougher due to the current Covid-19 situation across the globe. The uncertainty holds the world to a standstill and India is not an exception to it

The global economic slowdown is likely to negatively impact real estate demand in the country this year. Almost all sectors have started the first month of their financial year 20-21 with minimal or negligible sales.

It is currently too early to provide a detailed, quantitative assessment of the COVID-19 impact on economic activity, industries, and the real estate market. The effects of the outbreak will inevitably vary from market-to-market, and the true impact and recovery will manifest in forthcoming quarters.

We at Incorp received a lot of queries coming in the past few weeks from our contact sphere to help them understand the impact on Real Estate; thereby our team has tried to address some of the top points impacting the Industry and the ways to mitigate it.

We have often heard of the statement – “Communication is the key to success”. In this pandemic situation, the word communication gets replaced with Compromise. “Compromise is the key to success” – Developers will have to follow only one strategy “Compromise”. Compromise in their lifestyle, spending, sales price expectations, holding unsold inventories, and all those things coming their way. The interest meter keeps running even when one is sleeping. Line of credit sanctioned by banks, financial institutions, NBFC’s, etc. before lockdown will no longer stay in the same state of condition. Every loan sanctioned will be reviewed and valuation will be challenged post lockdown. Mr Deepak Parekh, HDFC warned developers against high leverage and said it is going to work as a double-edged sword. “In good times, it amplifies your profit. In bad times, it destroys you. Be careful of the perils of leverage,” he further added.

Holding on readily available inventory by the developers will no longer be in the interest of the developer. Developers may have to take a haircut on their sale price expectation up to 20%. This will help to generate liquidity and to sustain in this market in the long run. Also, the launching of new real estate projects is not feasible. Smaller the house, easier to sell. Demand for affordable housing and homes with the ticket size of up to Rs. 2 Crores will still exist, but the high-end segment already has saturation. Maintaining liquidity in the current situation will be a challenge due to the ongoing outflows and commitments but once life comes to normalcy, one should start maintaining liquidity.

Equity partners shall be welcomed with open arms. This includes working in Joint Venture Model, Development Manager Model, strategic partnerships and financial partnerships. Instead of further borrowing, the developer shall explore PE funds, HNIs, strategic partner who has a strong face value in the market. Being partnered with the strong face or goodwill may, in turn, help the developer to sail through from this situation. Even partnering in with well-esteemed contractors will be equally useful.

Our Debt syndication experience tells us that developer has a tendency to switch the banks quite often. This is mainly because of two reasons; a. An existing bank may not extend the support in the aggressive expansion of the developer/borrower & b. Competency in the commercials offered compared to existing banks.

Though the former reason is explicitly the call of the bank depending on their appetite and risks involved but later are in hands of the developer. In either case, the developer shall stick to its existing bankers and encash their long-lasting relationships with the banks. Banks are to be treated as co-owners in the project. A borrower should not switch the banks for 50 to 100 bps point difference.

Major projects in the real estate market fail due to the wrong estimation of the project life cycle. Life of the project must be estimated from the first rupee infused and till the last rupee recovered. Also, the borrowing estimation (tenure) must be calculated accordingly. Tenure of the loan should be equal to the life cycle of the project; any shorter tenure loan will not work. If the tenure projected is less than project’s life, the project will face a cash crunch and if the tenure projected is more than project’s life, it may lead to a diversion of excess funds generated during its life.

In any real estate project in India currently, the cost of premiums payable to government is equivalent to the cost of construction. It means there is no longer a story of doubling your money in 3 years in real estate. In fact, developers are finding it difficult to achieve even single-digit margins if the project is not executed as scheduled. Developers may have to joint their hands and contest with authorities to stagger the premium payments. In Maharashtra, for the acquisition of the project, huge premiums are to be paid to CIDCO, MHADA even before the inception of the construction of the project. If these premiums are not staggered under the measures channelized by the government to revive the industry post lockdown, developers may not be able to sustain. No bank will fund at this stage and even if funding is available, no developer will be in a position to borrow such a huge sum of money.

Few questions in the mind of developers?

How long would be the impact of Covid-19 situation on our industry?

Real Estate in India will pass through tough times for a minimum of 6 months from now. This is mainly due to their monthly fixed overheads backed by zero sales and tiny recovery from the sold inventory. People, in general, will start holding money and keep it for securing themselves from any uncertainty coming their way in the near future.

How to generate liquidity & commence ongoing projects immediately post lockdown?

Each industry will face the problem of generating liquidity. Real Estate being the second most job-generating industry, will be at the peak of its liquidity issues. One should try to generate liquidity by selling “Lock and Key” unsold stock which will help to commence ongoing projects and keep them running post lockdown.

Should we approach banks to restructure our existing loans?

Yes. RBI is already discouraging banks to keep money in RBI accounts and thereby encouraging banks to infuse more money into the system. Hence you should apply for restructuring your existing loans before they turn NPA. Even a one-time restructuring of NPA accounts may be allowed in the near future.

I have got an opportunity to merge with another developer and this will help me to complete my project in time. What should be my response?

Completing the project on time and delivering the units to the customers will enhance your goodwill in the market. “Alone we can do little; together we can do so much”. Focus on partnerships, you may partially lose control, but it is a need of the hour.

In our industry, there are always long due payments to be made to suppliers and contractors. Will the supplier continue its support after the lockdown?

The relation between developers, suppliers and contractors goes hand in hand. All are dependent on each other in some or the other form. Be in touch with your suppliers, contractors, maintain long-lasting relations, and leverage them at the right time. Relook at your existing dues and schedule a payment plan for suppliers/contracts so that required support from them stands uninterrupted

What is the strategy to be adopted to reduce the impact of the Covid-19 situation?

Relook at the project estimation right from its configuration, life cycle, funding requirements, feasibility, etc. Remember, smaller the house, easier to sell. Other than various points suggested above, “Compromise” is the only key to success to overcome the situation.

What can be demanded from the government by the developers?

Being the second-largest job-generating industry after agriculture, the government should help the real estate industry by incentivizing migrant labourers return to their jobs as it is difficult for them to even understand the situation of lockdown. This incentive can be in the form of travel cost for coming back to the workplace and insurance, employer’s contribution towards provident fund can be exempted and the same to be provided by the government.

Ready Reckoner value to be relooked by the state government as Land revenues come under the state government. At many places in Tier 1 cities, the ready reckoner value is higher than the actual deal value which makes the project unviable for even lenders to support the developers. Though the government has reduced the stamp duty in some states like Maharashtra with effect from 01st April 2020, there should be thought for a complete waiver of stamp duty for a smaller period post lockdown to boost the Real estate industry. The state government may not be able to do this for a longer period as huge revenue comes from this segment.

Staggered payment schedule for all premiums can play a vital role in managing cash flows for any developer and thereby the industry as a whole.

What’s the say of Developers on the above?

When we gave a thought of writing something on Real Estate, we thought taking their views is also most important in the current situation. Here goes their say:-

“Compromise is not about losing. It is about deciding that the other person had just as much right to be happy with the end result as you do,” said author Donna Martini. A known developer said Compromise has to be from all sides i.e. from government, banks, RBI, and a developer. What has and will hit us badly is the demand. Unless the Rate of Interest (ROI), Fixed Obligation to Income Ratio (FOIR), and Loan to Value (LTV) are not revisited by banks, the demand will continue to be price-sensitive and we will be continued to be advised by Bankers to reduce prices by 20%.

“Reducing sale prices of flats while prices for Raw material, cost of production and other incidental costs keep increasing will not be a solution. This will lead to an even more negative outlook towards Real Estate and will spark the sentiment of distress sale on lowering prices. Such events will dishearten buyers and existing investors too”, said another developer from Tier 1 city.

One of the top builders in Mumbai also quoted “The business of real estate is very different from money lending and other commodity trading. To remain in business and to keep moving if we are paying high interest on our borrowings doesn’t mean we are making profits of more than the interest paid by us. The lenders feel that because a developer pays much higher interest, a developer may also have an appetite to reduce the sale price by 20%. The lenders should reduce the rate of interest which will certainly improve profitability and the need for the developer is for better cash flow to complete ongoing projects”.

How can InCorp India help you?

At InCorp India, we are committed to delivering quality in Transaction and Risk advisory services. Our dedicated team of transaction advisors can assist you in any real estate related issues and provide ease for operations.

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quikkloan · 4 years

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Top Features and Benefits of Personal Loan balance transfer India

A Personal Loan Balance Transfer is a great source of financial help, which comes with a plethora of outstanding advantages such as low-interest rates, reduced EMIs, maximum loan amount and improved credit/cibil score. Both salaried professionals, as well as self-employed individuals/professionals, can avail this credit facility, after continue repaying their loan till 9 months or 1 year with the existing lender. Do not get attracted by looking at the lure offers, instead become a calculative borrower. Always keep in mind certain factors such as when to avail a balance transfer and how beneficial it is for you in the long run. Be a smart borrower to reap the maximum benefits offered by personal loan balance transfer.

What is Personal Loan Balance Transfer?

A personal loan balance transfer is a process where an existing customer/loan borrower transfers his outstanding balance(remaining loan amount) to another bank or NBFC. A borrower primarily opts for this facility to enjoy a better rate of interest provided by a new lender. Doing so, leads to pocket-friendly EMIs. Thus, helps in reducing the personal loan burden. After opting for a balance transfer, a borrower is now liable to a new lender and will continue repaying his loan to a new lender. Here, a borrower also needs to pay a one-time processing fee of the outstanding loan balance to a new lender.

Who is Eligible for Personal Loan Balance Transfer

Both Salaried Professionals and Self-employed Professionals/Individuals can avail personal loan balance transfer. Make sure your cibil score is good and you will fulfill the minimum income required criteria set by the lender. Though different lenders have different norms, related to personal loan balance transfer. Make sure you meet the required personal loan eligibility criteria set by the lender to avail this facility. Read Also- Personal Loan Interest Rates Online 2020

How to Avail Personal Loan Balance Transfer-Know the Process

Apply online to opt for a personal loan balance transfer. The online process is really simple and quick, hence is preferred by many. A borrower needs to follow just 4 easy steps to avail a personal loan balance transfer. Take a look at the steps below: Step 1: Apply Online Step 2: Get Quotes Step 3: Submit Documents Step 4: Instant Approval & Disbursals

When to Take Personal Loan Balance Transfer-When is the Right Time

Now here comes the most important question.i.e when to go for a personal loan balance transfer? Consider opting for a balance transfer under any of the following scenarios: 1. When the Rates & EMIs are Higher: If your existing lender has the higher personal loan interest rates, going for a balance transfer would be advisable here. A competitive interest rate will reduce your overall loan repayment burden. Yes, reduced interest rates are directly linked to your EMIs, a slight change in rates can bring a lot of difference in monthly installments. Thus, under such a situation of lower interest rate, a borrower can expect the EMIs affordable, hence a less loan repayment burden. 2. When the Tenure is Short: A short tenure means a high repayment burden. Yes, if your loan tenure is short which means the amount of your monthly installments is high. And, within that short tenure, a borrower needs to repay the loan with higher EMIs. So, opt for a lender, providing longer tenures so that your EMI amount will be reduced. Thus, less burden on your shoulder as far as repayment is concerned. 3.No Additional Loan Amount: Need extra funds to fulfill your needs? If the existing loan amount is not enough to meet your purpose, go for a balance transfer. Make sure your new lender offers a higher loan amount compared to the existing one. Also, the amount should be enough to meet your needs. Here, a borrower can also ask for a top-up loan from a new lender. Under which, additional money(certain loan amount) will be given on an existing loan amount. However, not all lenders offer the Top Up facility, kindly check the same before applying to your new lender. 4. Services are Less: Looking for better customer services and privileges? Personal Loan Balance Transfer is you need. In case you are not satisfied with the services being offered by your existing lender, a balance transfer is here. Do some research and find an ideal lender, meeting your needs and have a hassle-free personal loan journey Banks Offering Personal Loan Balance Transfer, January 2020 LendersInterest Rates(in per annum)Loan AmountTenureProcessing FeeSBI11.45%-14.90%Up to 20 lakhUp to 5 Years1% of the loan amountICICI Bank11.25%-22%Rs:50,000-20 lakhUp to 5 YearsUpto 2.25% of loan amount +GSTHDFC Bank10.75%-21.30%There's no maximum limit. Your income, credit score and repayment capacity will dictate the loan amountUp to 5 YearsUp to 2.50% of the loan amountBajaj Finserv12.99% onwardsUp to 25 lakhUp to 5 YearsUp to 4.13% of the loan amount+GSTKotak Mahindra BankStarting 10.99%Rs.50,000-15 lakhUp to 5 YearsUpto 2.5% of the loan amount + GST Axis Bank12%-24%Rs.50,000-15 lakhUp to 5 Years1.50%-2.00% of the loan amount plus applicable GSTPunjab National Bank9.95% - 14.50%Up to 4 lakhUp to 5 Years1.80% of the loan amount plus applicable GSTPunjab & Sind Bank12.45%-12.70%Up to 3 lakhUp to 5 Years1% of the loan amountYes BankStarting 10.99%Rs.1lakh-Rs.40 lakhUp to 5 YearsUpto 2.50% of the loan amount +GSTHSBC Bank10.50%-17.84%Up to Rs.15 lakhUp to 5 YearsUp to 1% of the loan amountCiti BankAs applicable at the time of signing the loan agreementRs.50,000- Rs.30 lakhUp to 5 YearsUp to 3% of the loan amountIDFC First BankAs applicable at the time of signing the loan agreementBased on borrower’s eligibilityUp to 5 Years Up to 3.5% of the loan amountInduslnd Bank11.25%onwardsRs.50,000-Rs.15 lakhUp to 5 YearsUp to 2.50% of loan amount+GSTAditya BirlaStarting at 14%Rs.50,000-Rs.50 lakhUp to 5 Years2% of the loan amountFullerton India12.99%-36%Up to Rs.25 lakhUp to 5 YearsUp to 3% of the loan amount

Calculation for Personal Loan Balance Transfer EMI Repayments

Let’s just understand how a personal loan balance transfer can help you save on EMIs. Example: If you have borrowed a loan of Rs. 6,00,000 at the rate of 16.5% for 5 years. You paid EMIs (inclusive of interest) in that bank for 2 years. After that, you found a bank offering you the balance transfer option of the remaining outstanding amount at an interest rate of 12.49%, check out what would be your EMI and savings? Below is the table showing EMI, Total Interest, Total Amount and monthly saving on personal loan transfer: LendersInterest RateLoan AmountTenureMonthly EMI(in Rs)Total Interest Amount(in Rs)Total Amount (Principal+Interest)(in Rs)Yearly EMIs(in Rs) Yearly EMIs Savings(in Rs)Existing 16.50%6,00,000514,751 2,85,0438,85,043(14,751x12)=1,77,012 (14,751-13,936)= 9,780 After repaying the loan for 2 Years, Outstanding Loan Balance=Rs.4,16,635 New12.49%4,16,635313,93685,0595,01,694(13,936x12)=1,67232 However, the savings vary from case to case. The more difference in interest rates you have and the higher loan amount you have, the maximum savings you can expect.

Features & Benefits You Can Get Personal Loan Balance Transfer

1.Lower Interest Rates: If your existing personal loan is at a higher interest rate, it would be advisable to opt for a balance transfer. Yes, a Personal loan balance transfer allows a borrower to enjoy attractive interest rates. The lower rates you have, the better it is for you in the long run. Yes, with the help of the same, you can have less burden on your pocket as a monthly amount of instalments will also be reduced. Thus, a hassle-free loan journey. 2.Pocket-friendly EMIs: With lower rates come lower EMIs. Yes, with the help of a personal loan balance transfer, you can have lower interest rates offered by a new lender.And, as a result of which, less burden will be on your pocket. If the interest rates get reduced, the equated monthly instalments will also be reduced, thus less burden. 3.Higher Loan Amount: Why borrowers also choose balance transfer is because it comes with a higher loan amount feature. Yes, if your existing loan amount is less or not enough to meet your needs, switch to a new lender with a balance transfer and get a higher loan amount. Also, the bigger the loan amount is, the better opportunity for a borrower to show his long repayment history. Follow the rule of timely repayment here and let your credit/cibil score be improved, making you an ideal borrower for future borrowings. 4.Top-up: Another prominent feature that makes personal loan balance transfer a reliable option is loan top-up. Yes, with the help of a personal loan top-up, a borrower can get the additional money(certain loan amount) on a borrowed loan amount. This top-up facility allows a borrower to have extra funds to meet his needs. However, top-up loans are either given for the outstanding period of the existing personal loan or a certain period. The tenure changes from bank to bank. 5.Longer Loan Tenure: With a personal loan balance transfer, a borrower can get the longer tenures. Transfer your loan to a new lender, offering flexible or rather longer repayment tenure options to reduce your loan burden. Yes, the longer tenure you have, the better it is for your pocket as your EMIs will be reduced. Not only this, but the longer tenure also helps you to show the credit/repayment history, hence also boosts your cibil score. 6.Improved Credit Score: On transferring your existing loan to a new lender, you would be able to have a good credit/cibil score. With longer tenure, your repayment history increases and with paying your EMIs on time, you can have a good credit score. In case of availing a personal loan, a score of above 700 out of 900 is considered to be good enough in grabbing the best deal. So, try to maintain your cibil score before or after the personal loan balance transfer. 7.Better Customer Services & Perks: If you are not happy with your existing lender in terms of customer services and other privileges, opting for a balance transfer is a wise move here. Talking about perks, waiver of last EMI, zero/minimal processing fees & other charges should be taken into consideration. Make sure your new lender offers many such extra privileges to make your personal loan journey easy.

Eligibility for Personal Loan Balance Transfer

Take a look at the eligibility criteria for salaried and self-employed individuals in the table below. Eligibility CriteriaSalariedSelf-employedMinimum Age2124Maximum Age5865Minimum IncomeRs.20,000 monthly (non-metro cities), Rs.35,000 monthly (metro cities)Rs.2 lakh(annual)Credit/Cibil ScoreAbove 700(out of 900)Above 700(out of 900)Minimum Job/Business Stability1-2 Years2-3 YearsMinimum Work/Business Experience1-2 Years3 YearsMinimum Profit After TaxNARs.1-2 lakh(annual)

Documents Required for Personal Loan Balance Transfer

Make sure your documents are complete for a successful personal loan balance transfer process. Salaried: Duly signed application form for personal loan balance transfer along with passport size photographIdentity Proof (PAN card/driving license/passport/voter ID/Aadhaar Card etc)Age Proof (PAN card/driving license/passport/voter ID/Aadhaar Card etc)PAN Card copy (Mandatory)Address Proof (Aadhaar Card/Passport/ Landline Bill/ Latest Electricity bill/Rent agreement etc)Last 6-month bank statementSalary slip for the last 3 monthsStatement of personal loan from a current lender (a loan that needs to be transferred) Self-employed: Duly signed application form to do loan balance transfer along with passport size photographIdentity Proof (PAN card/driving license/passport/voter ID/Aadhaar Card etc)Age Proof (PAN card/driving license/passport/voter ID/Aadhaar Card etc)Address Proof (Aadhaar Card/Passport/ Landline Bill/ Latest Electricity bill/Rent agreement etc)TAN CardLast 3 years Balance sheet along with profit and loss statement pertaining to businessLast 6-month bank statement of individual and business entityStatement of personal loan from a current lender (details of the loan that need to be transferred)

Personal Loan Balance Transfer Charges

Once you opt for a balance transfer, there are a lot of charges that one needs to bear. Prepayment/Foreclosure Charges: As you are opting for a balance transfer, which means you need to pre-close your existing loan before its due tenure. Thus, a borrower needs to pay a prepayment fee to the existing lender that goes up to 5% of the Principal Outstanding+GST Processing Fee:On transferring your existing personal loan to a new lender, a borrower needs to pay a one-time processing fee. In case of a balance transfer, this fee is levied on the outstanding balance (remaining loan amount) and ranges between 1.50%-2.50%+GST. Things to Keep in Mind While Opting for Balance Transfer 1.Compare & Evaluate Lenders for: Lower Interest RatesAffordable EMIsMaximum Loan AmountAdditional Amount(Top up)Less DocumentationMinimal Processing FeeBetter Services & Perks 2. Read Loan Agreement & Fine Prints Carefully with New Lender 3. Do Not Forget the NOC from Existing Lender 4.Pre-closure Terms and Conditions with Existing Lender 5. Avoid Signature Mismatch 6. Do Not Give False Information/Details 7.Avoid Taking Balance Transfer, If You See a Marginal Difference in Interest Rates & EMIs. Hope, now you have a complete insight on personal loan balance transfer, hence will make a wise move. Read the full article

#personalloan #PersonalLoanbalancetransferIndia #WhatisPersonalLoanBalanceTransfer?

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analyticsindiam · 4 years

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BIG STORY: What The Layoffs By Cognizant & Infosys Mean For India's Economy

We have seen quite a few cases of layoffs recently in India, including many companies from the IT sector. The list contains Cognizant, Infosys, Deutsche Bank, Capgemini and UiPath, among others, and highlights the fact that full-blown recession may be upon us soon. A ripple effect starting with a slowdown in the economy post the NBFC crisis, leading to a terrible year for the automotive industry has now reached the IT/ITES which too is showing signs of not slowing growth a highly pronounced cautionary approach by companies in terms of hiring and retaining talent. As the technology segment of the Indian economy has a bigger dependence on global clients, IT-based outsourcing is the place most of the income lump originates from. On the off chance that the downturn hits the world, the Indian IT market may see more damage. The recent layoffs by tech companies like Cognizant and Infosys highlight the recession fears are real, and the situation is worsening for the large IT players. Layoffs: Optimising Costs For The Workforce Companies are making fast steps to cut back any extra costs related to jobs. Here, costs and automation are playing a key and helping rejig the workforce. Let us take Cognizant’s example — a company which has 75% of the organisation's workforce (290,000-worldwide) in India alone. Cognizant announced a net firing of 7,000 in its workforce in India, primarily due to a renewed focus away from content as well as cost optimisation. The company has faced criticism due to the fact that it reported a decent quarterly profit and yet announced layoffs. For the third quarter which ended September, Cognizant registered a revenue of $4.25 billion, up 4.2% from the comparable quarter last year. On the hiring side, Cognizant workforce has now honed its attention on freshers. It has expanded compensations for entry-level employees and is laying off mid-and senior-level workers to account for talented youngsters. Cognizant's cost optimisation by hiring more freshers comes as a silver lining though raising worries of professional stability for the mid-level employees. The company has told it may see an annual cost savings of $500-550 million by optimising workforce at the senior level and also exit from a business that is not in line with its strategy such as content moderation. The total number at layoffs at Infosys amount to 4,000-10,000 people and the company has reasoned that as a high-performance organisation, involuntary attrition is crucial for the usual course of business and should not be interpreted as any mass trimming across any level. The layoffs were needed for the company due to a strong focus on cost optimisation and rising needs for technology skills. It too has renewed its focus on hiring skilled freshers to not only save costs but also renew tech skills. The Positive Side For India’s Employment Scenario But, if we look at the positive side, innovation is also bringing in hope for new jobs. Technology will trickle down to SME businesses to help create new business models or bring new efficiency to the existing ones. Talking about job creation through tech, Software Technology Parks of India (STPI) is expecting to make around 15,000 direct jibs through North East BPO Promotion Scheme (NEBPS). STPI is an association under the Ministry of Electronics and Information Technology (MeitY). Government of India has invested ₹50 crore to boost the foundation of 5,000 seats in regard to BPO/ITES activities in the area. Similar investments are being made across different states in collaboration with government and industry bodies. Tamil Nadu, for example, got ₹6,500 crore as investments in the IT and ITeS industry in the last one year and it has led to about 60,100 new jobs in Tamil Nadu during the time frame, stated Chief Minister Edappadi K Palaniswami. Reliance which has around 6,000 programming engineers, is also focusing on enlisting a lot more to achieve its innovation projects relating to artificial intelligence, telecom, blockchain, IT services. Toward this path, Reliance has likewise put resources into 14 new businesses to help drive various initiatives to make AI-first economy, and focus on SMEs of India. The company said would hire about 6,000 more employees in this financial year. The SMEs in India incorporate 63.4 million units and records for almost 30% of India's GDP, utilising around 460 million individuals. The division likewise compensates for 33.4% of India's yield in manufacturing, offering work to around 120 million Indians, as indicated by CII. In fact, the promise of technology is so significant that that digitisation of SMEs could grow their commitment to India's GDP by 10% points, driving it up to 46-48% by 2020. And it’s not just a few instances of hiring. In fact, the net hiring by the top three IT companies — TCS, Infosys and Wipro climbed 59% in the September quarter compared to the June quarter. TCS, Infosys and Wipro, together with hired 28,157 employees against 16,687 in Q1FY20. Here, the hiring seems to be more focused on freshers, as discussed previously. Startups Are Manufacturing Jobs At A Decent Rate With the extension of more than 1,300 new businesses this year, India continues bracing its circumstance as the third greatest startup framework on the planet, as demonstrated by IT industry body Nasscom. India similarly observed the development of seven Unicorns this year till August taking the hard and fast tally to 24, which again is third beside US and China. There are around 430,000 employments from startups and 60,000 of them in 2019, as per Nasscom-Zinnov report. India's startup environment can possibly make up to 12.5 lakh direct employment by 2025, from 3.9-4.3 lakh direct occupations in 2019, as indicated by another report from industry body Nasscom. Indicator: Cutbacks Also Stress Reskilling As the world gets ready for an economic downturn, trade wars between the US and China are adding to the uncertainty. India is in a turbulent circumstance, also with a slowing financial circumstance, as shown by the falling quarterly GDP rate. A significant level of non-performing assets (NPAs), NBFC emergency and moderate credit development stand before the economy. The bad news is recession coupled with automation may see more India layoffs in the coming days, particularly in industries where repetitive processes are involved. The reason is Indian companies will focus on cost optimisation by using automation tools. The major task, in that case, is the investments in infrastructure and reskilling as new-age skills will drive the creation of new jobs. Cutbacks over various areas are representing a test that requires reskilling and vocation support for workers. In a creating nation like India, there are huge open doors for work creation as there is no lack of significant work necessities. It, of course, requires astute planning and reconsidering the job market in alignment with new technologies. Read the full article

#Cognizant #jobcuts #layoff #Layoffs

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techsamvad · 4 years

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#TechSamvadGameChangers: Top 10 Startups in India's FinTech World (2020)

This time at TechSamvad Game Changers, we bring to you information about some of the best startups related to the FinTech world of the country.

Let us tell you that FinTech Inc of India has reported a total funding of about $ 1.47 billion in the first half of the year 2020. And interestingly, this figure is almost 60% higher than the previous year i.e. first half of 2019.

According to the Global Fintech Festival Report from July 2020, between March and June in the year 2020, around 68 FinTech Startups received investment. And this data clearly shows how the popularity of FinTech world is increasing in the last country.

In such a situation, today we are going to introduce you to some such start-ups of the country who are providing equally technology-based financing services not only in the metros but also in all the small to big areas of the country.

#TechSamvadGameChangers: Top 10 Indian FinTech Startups 2020

1. SalaryDost

Mumbai-based SalaryDost actually offers a great credit scoring system, which helps in super customer profiling. And at the same time, their mobile-based application helps customers to get a loan in the blink of an eye.

According to the company, they started this to bridge the gap between the finance sector and customers, thereby promoting an open banking loan option.

The company was started in the year 2018 by Mrityunjay Shahi, Manish Shukla and Ashok Choudhary. SalaryDost has also partnered with Singapore-based AI company, CredoLab.

CredoLab provides an AI based credit scoring solution, in effect. Salarydost uses proprietary algorithms and artificial intelligence techniques to assess any risk factors.

Meanwhile, the company also expanded its online lending platform and is now offering various types of loans in the market.

2. Paisa Dukan

This platform, named Paisa Dukan, offers its customers the best possible loan using technology. Also, making this process transparent, it is also moving ahead as a great platform to borrow money.

The Peer to Peer (P2P) marketplace is becoming even more interesting with the growing Internet. And according to the company, this will benefit both lending and borrowing classes.

PaisaDukan was established in November 2017 as a peer-to-peer lending platform. It was founded in Mumbai by Rajiv M Ranjan and its parent company BigWin Infotech.

PaisaDukan's business model is based on the peer-to-peer lending marketplace, where it handles servicing of loans on behalf of both the lending and lending segments.

On PaisaDukan you get the facility to take a loan ranging from ₹ 5,000 to ₹ 10,00,000. The company's mission is to facilitate business opportunities for all in the peer-to-peer marketplace or business sector.

3. PayMe India

PayMe India was founded in 2016 by Mahesh Shukla and Sandeep Singh Singh. The startup offers 'Advance' salary options to financially salaried people for a short time. Actually PayMe India has created a special loan program for corporate employees.

This Noida-based startup, under its Corporate Cash Advance Loan Program, allows employees working in its partner organizations to borrow up to 50% of their monthly income, which they have to pay from the next month's salary.

This startup has also acquired the NBFC certificate, which means that now this startup also offers you secure and unsecured financial products such as personal loans, business loans, education loans, credit cards etc. service etc. for short duration.

4. Jai Kisan

Founded in 2017 by Texas A&M University alumni Arjun Ahluwalia and Adriel Maniego, Jai Kisan is building a full-stack fintech platform to meet the financial needs of customers in emerging markets in rural India.

In the last six months, it has provided more than Rs 50 crore of top credit quality loans in a variety of sets to 5,500+ borrowers from different income groups in 10 states of the country.

Let us tell you, this Mumbai based rural fintech startup has also raised Rs 30 crore in a pre-series round from Arkam Ventures and NABVENTURES Fund I on 16 June 2020.

5. INDwealth

Founded in the year 2018 by Ashish Kashyap, Pratiksha Dake and Varun Bhatia, INDwealth provides services as a personal financial advisory agent, offering advice on asset classes, loans and loan management.

The platform enables consumers to manage and track their funds investment, loans, expenses and loans and in turn also advises them with the help of machine learning to improve their financial future and cash flow.

The first version of this platform app was launched in April 2019. The platform has also registered itself as certified "Wealth Advisors". Its

Also, this Gurugram based company has launched a web application as Wealth Advisor, which provides interaction and feedback etc. between clients and consultants.

6. GramCover

Noida based GramCover is a technology enabled insurance platform for rural India. It is building an ecosystem for distribution of a wide range of insurance products, including crop products, livestock, health, motor, life and property insurance, which cater to the critical needs of rural India.

Actually do you know that according to the rules, insurance is mandatory for any farmer taking a bank loan, and because of this, most farmers in the country do not take loans.

In such a situation, GramCover opens new doors of possibilities for them by providing them with various insurance options.

Let us tell you that GramCover was founded by Jatin Singh, who also launched its earlier private weather company Skymet. Meanwhile, GramCover claims that it is becoming the preferred choice among insurers to reach rural India.

Over 1.3 million Indian farmers have so far purchased insurance through GramCover.

7. Aye Finance

Aye Finance provides customer focused financial services for micro and small businesses. It has more than 100 branches operating in 11 states across India, operating primarily in sectors such as manufacturing, trade and service groups.

It was founded by Sanjay Sharma and Vikram Jetley. Interestingly, it has also received investment from MSME loan provider Google's private equity fund CapitalG.

Since its inception in 2014, Aye Finance has claimed to provide $ 410 million worth of credit / loans to over 1,96,000 grassroots businesses. The startup is said to have an active customer base of over 1,30,000, and manages assets up to Rs 1,500 crore.

8. GroMo

Gurugram-based GroMo is a truly technology-enabled 'social commerce platform' that offers consumers a range of financial products such as loans, insurance and investments through its GroMo Partners.

Currently GroMo claims to provide loan and insurance services on its platform. GroMo was founded by 3 alumni of IIT Delhi, Ankit Khandelwal, Darpan Khurana and Arpit Khandelwal.

GroMo actually provides additional earning avenues to chartered accountants, property dealers, travel agents and even students by joining them as partners and helping them grow as micro-entrepreneurs.

9. Mera Cashier

Noida based fintech startup Mera Cashier was founded in 2019 by Suneel Kumar, Sucharita Reddy, Gaurav Tomar and Akhilesh Nigam. This startup allows small and micro businesses to digitally manage their credit transactions on their phones through the digital features of books, registers, etc. in an Android app.

The app includes basic management features such as managing customers and their transactions, giving micro-businesses an opportunity to use their data to grow their businesses efficiently.

Let me tell you that the list of investors of this startup includes many big names like Bollywood singer Sukhbir Singh. In simple language, with the help of data science, this platform serves to digitize traditional methods for small traders.

10. Recko

Bengaluru based Recko is a fintech startup that provides AI based solutions for digital transactions. Recko, founded in 2017, has touched $ 5 billion in transactions so far. The startup has created a SaaS-based financial product that helps organizations track full transaction cycles and commercial contracts.

According to the company, founded by Prashant Border and Saurya Prakash Sinha, its client list includes companies from many different sectors, such as Grofers, Meesho, Dunzo etc. According to Recko, it is looking to touch $ 10 billion in transactions by the end of 2020.

#fintech startups india #top fintech startups in india #fintech startups in bangalore #Fintech Startups #franchise india brands limited #Franchise opportunities india #Franchise news #Franchise companies #india samvad hindi #franchise india brands

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delightfulsolutions · 3 years

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NBFCs full form is Non-Banking Financial Company and it refers to a company that has been registered under the Companies Act, 1956. These non-banking financial companies engaged in the business of loans and advances, acquisition of shares, stocks, bonds, debentures and securities.

“Nonbank financial companies (NBFCs), also known as nonbank financial institutions (NBFIs) are financial institutions that offer various banking services but do not have a banking license. Generally, these institutions are not allowed to take traditional demand deposits—readily available funds, such as those in checking or savings accounts—from the public.”- Investopedia

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vsplusonline · 4 years

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Ask us: On long-term investments — May 4, 2020

New Post has been published on https://apzweb.com/ask-us-on-long-term-investments-may-4-2020/

Ask us: On long-term investments — May 4, 2020

Long-term investment

Q. I am 31 years old and looking for some good investment options on a long-term basis for me and my husband. We can’t have a PPF account as we are NRIs right now. What is the best option for us?

Last week, I started investing in Bajaj Allianz Goal Assure on a monthly basis. Is this a good option?

A. We do not know about your time frame and goal and what plan under the Bajaj Allianz Goal Assure you have chosen. This is a ULIP. So, if your primary purpose is to build wealth, you have to make sure the fund is performing well. Ask your adviser/agent to send regular updates on the growth of your money. If you find the performance not up to the mark in five years compared with mutual funds, consider stopping SIPs then. Try not to invest in bundled insurance products unless you are sure you understand all the features and costs.

As for other investment options, your time frame is paramount in deciding the risk you can handle. Having invested in a ULIP, I am assuming that you are willing to take market risks. If you are an NRI outside U.S./Canada, you can consider some exposure to index funds or ETFs in India. There are funds on the bellwether indices such as the Nifty 50, Next 50 or Nifty 500. You can own a mix of these for the equity component of your portfolio. This should constitute a long-term portfolio for the next 5-10 years, with regular SIPs to average the cost.

For the debt component, for the next 1-1.5 years, the low interest rate notwithstanding, consider NRE deposits in large private or public banks. We may see smaller banks coming under pressure post COVID-19 and hence, you need to be careful with the choice of banks.

This is not a time to chase returns in deposits. Look for safety. Lock into shorter tenures (1-1.5 years and not more). If you have a demat account, you can also check with your broker if they offer government securities (called gilts) and you can invest in those for the long term.

Any top-rated PSU bonds (nothing other than PSU) maturing in 3-4 years, traded in the market, will also be the options if your broker will help you with the same.

If you are based out of the U.S./Canada, your investment options are quite restricted here. It would be better for you to seek the advice of a fee-based investment adviser who is also familiar with the U.S. security and tax laws.

Retiring from the Army

Q. I am retiring from the Indian armed forces at 35. I will get pension and some lump sum in the form of PF, gratuity and other dues. Where and how should I invest my money?

A. We are assuming that you will take up some employment and have some regular income or that your pension will be sufficient for regular expenses. In that case, you can invest this sum for the long term for any goal you may have, including retirement from your next career, a couple of decades later.

If you are very conservative and only safety matters, then consider large pubic or private bank deposits, post office time deposits and deposits with large NBFCs like HDFC or Sundaram Finance. Lock into these for only 1-1.5 years as rates are low now. You can renew them when rates go up a year or two later.

If you can take some risks, then our suggestion would be that you park 20-30% of your corpus in equity index funds such as Nifty 50 or Nifty 500 for a minimum of 7-10 years. You can also park 5-10% of this in Indian funds that invest in U.S. indices such as the S&P 500 or Nasdaq 100.

This will help provide exposure to the U.S. markets, too, by just investing in rupees.

Use a systematic investment plan to invest in these over the next 1-1.5 years and don’t let the market ups and downs worry you. Make sure 70% of your money is in safe in deposits. You can also consider the RBI Taxable Bond available with all major banks. Do not be lured by any high interest rates in deposits. Over the next 1-2 years, high interest will carry far higher risks.

(The author is co-founder, Primeinvestor.in)

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#Business

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wealthadvisor10 · 4 years

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The World This Week

Indian Equity Summary-Benchmark indices Sensex and Nifty closed in green for the second consecutive week in line with the global key equity indices. Nifty 50 andØ Sensex rose by 1.7% and 1.4% respectively . Sectorally, all the sectors indices barring Consumer durable and IT closed in green. BSE Metal , BSE Power and BSE Bankex were the top performers and rose by 6.65%, 4.99% and 3.41% respectively. Investor sentiments were also lifted by the announcement of further relief package of TLTRO by RBI targeted towards small and medium-sizedØ financial institutions including NBFCs and MFIs . Reverse repo rate has been cut by another 25bps to 3.75% to incentivize the banks to lend. India VIX continues to cool off and has dropped to ~42.59 on Friday. It has dropped by ~32% in 1 month.Ø Going forward, the growth in number of COVID-19 cases among other factors such as the movement of rupees, crude oil prices, foreignØ currency inflows and outflows will continue to determine the forward-looking market pattern. We expect the trading range for Nifty between 8700 -9500 in the near term.

Indian Debt Market- Government bond prices ended sharply higher .Yield of the 10 year benchmark 6.45% 2029 paper settled at 6.35% on April 17 as against 6.49 %Ø on April 9. Bond prices lifted on account of the announcement of further monetary policy easing by the central bank along with additional liquidityØ boosting measures to ease the economy in stress. Reverse repo was cut by RBI by 25 basis points (bps) to 3.75% with a view to encourage more lending by banks .Ø RBI conducted its fourth targeted long-term repo auction on April 17 of three-year duration for a notified Rs 25,000 crore.Ø We expect the 10 year benchmark yield to trade between 6.15-6.40% in near term.

Domestic News Headline CPI in India fell to a four month low of 5.91% year on year in March 2020 from 6.68 in previous month.Ø India’s inflation based on the Wholesale Price Index (WPI) eased to 1% in March from 2.26% in February on the back of a sharp fall in food pricesØ The income-tax department has set its budgetary direct tax collection target for 2020-21 at Rs 13.19 lakh crore, 28% more than the actualØ collections in the year ended March 31. IMF has downgraded the projections on India's growth rate from 5.8% to 1.9% for FY21 and has forecasted global recession due to COVID-19.Ø India’s southwest monsoon this year is expected to be normal at 100% of the long period average ,according to the India MetrologicalØ Department. RBI announced Rs 50000 crore targeted long term repo operation (TLTRO 2.0),with a view to boost small and medium-sized financialØ organizations including NBFCs and MFIs .

International News China’s CPI rose 4.3% on-year in March, compared with 5.2% in February, while Producer Price Index fell 1.5% in March compared with a 0.4%Ø fall in February. China's GDP fell to 6.8% in the first quarter from a year earlier , the worst performance since at least 1992.Ø US benchmark index ,Nasdaq gained by 4.65% as the US Federal Reserve (Fed) announced a $2.3 trillion financial support package to boostØ local governments and small and mid-sized businesses in its latest move to keep the US economy intact. US retail sales plummeted 8.7% in March after falling by a revised 0.4% in February.Ø Capacity utilisation for the industrial sector in US decreased to 72.7% in March from 77% in February while US industrial production plungedØ 5.4% in March after rising by a downwardly revised 0.5% in February.

Link - http://www.karvywealth.com/data/sites/1/skins/karvywealth/Download_media_report.aspx?FileName=DAC78AD8-3ABC-49D9-9D51-35BE11258B39|5169329

#Finance

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eqtmonline03-blog · 6 years

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Asian stock markets opened in red today after a new round of US-China trade tariffs kicked in. Meanwhile, the S&P 500 and the Dow closed lower on Monday as market participants awaited a widely-expected interest rate hike by the Federal Reserve. While oil prices jumped after top producers including Russia ruled out boosting crude output.

Back home, India share markets opened flat. The BSE Sensex is trading down by 50 points while the NSE Nifty is trading down by 30 points. The BSE Mid Cap index and BSE Small Cap index opened the day down by 0.4% & 0.7% respectively.

Barring healthcare stocks, capital goods stocks and energy stocks, all sectoral indices have opened the day in red with bank stocks and realty stocks witnessing maximum selling pressure.

The rupee is trading at Rs 72.98 against the US$.

In the news from the economy. As per an article in a leading financial daily, the Reserve Bank will conduct open market operations (OMO) on Thursday to purchase government bonds to infuse liquidity of Rs 100 billion.

Based on an assessment of prevailing liquidity conditions and also of the durable liquidity needs going forward, the RBI has decided to conduct purchase of government securities under OMO.

The purchase will happen through multi-security auction using the multiple price method, the reports noted.

As part of the OMOs, the RBI will purchase government securities maturing in 2020 bearing interest rate of 7.8%, 2022 (8.2%), 2025 (7.72%), 2027 (6.79%) and 2031 (6.68%).

The RBI said it has the right to decide on the quantum of purchase of individual securities and can also accept offers for less than Rs100 billion.

Note that, OMOs are the tools which can be used to either inject or drain liquidity from the system. It is employed to adjust rupee liquidity conditions in the market on a durable basis.

The RBI and capital markets regulator on Sunday said they were closely monitoring activities in the financial markets and ready to take appropriate actions, if required, following a sharp meltdown on Friday in equity and debt markets.

The stock market is on the roil for past week on the back of debt defaults by diversified IL&FS group.

There are also worries about NBFCs even though the country's largest lender SBI assured lending support to the NBFC sector.

Several NBFC stocks came crashing down on Friday, Dewan Housing Finance Corporation Ltd. being the leader of the pack. Nearly Rs 81.3 billion worth of the company's market cap got wiped out in a single session.

Housing finance companies came under sudden heavy selling pressure as interest rates on their debt spiked.

Housing Finance Stocks Take a Beating

There are concerns that the defaults by IL&FS could cause a contagion in the Indian financial sector.

In our latest edition of the stock market podcast, Apurva Sheth, our lead Chartist and Editor of the premium newsletter, Profit Hunter Pro joins us to share his technical view on the massive stock market crash that we witnessed on Friday. He also talks about the stocks that could create value in such times. Listen in... visit SoundCloud, iTunes or Stitcher.

Moving on to the news from IPO space. Aavas Financiers Ltd's initial public offering (IPO) to raise up to Rs 17.3 billion opens today, amid the mayhem in the non-banking finance companies (NBFCs) space.

Aavas, earlier known as AU Housing Finance, was the mortgage lending business of Jaipur-based small finance bank AU Small Finance Bank Ltd. In February 2016, Partners Group and Kedaara Capital had acquired it for Rs 9-10 billion.

Aavas has fixed its price band at Rs 818-821, aiming to raise up to Rs 17.3 billion at the upper end of the price band.

Speaking of IPOs, the stock market is gearing up for a burst of IPO activity.

According to EY India IPO Readlines survey report, globally, Indian exchanges recorded the highest IPO activity as the country saw 90 IPO launches that raised US$ 3.9 billion in the first half of this year.

Meanwhile the amount raised by SME IPOs in 2017 stood at Rs 17.9 billion. This is more than three times the amount raised in 2016. The number of SME IPOs launched also doubled from 66 to 132.

We believe a merit-based selection, primarily including valuation, business, and management quality, is the logical way to go about investing in IPOs. If it means going against the herd, so be it. And going by recent past, this strategy has been proven to be successful more often.

To know how to safely profit from the ongoing IPO rush, download this FREE report now and discover How to Get Rich with IPOs.

And to know what's moving the Indian stock markets today, check out the most recent share market updates here.

This article was originally published in English at www.equitymaster.com

Read the complete Indian stock market update. For the terms of use, go here.

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