The profitability of NBFCs is derived by charging higher rate of interest (up to a ceiling governed by RBI) which customers agree to pay since they have to meet less stringent norms and may not have access to any other source of capital. Further, NBFCs are not governed by regulatory requirement such as maintaining Statutory Liquidity Ratio (SLR) … Continue reading NBFCs – An Overview.. (Part II)
RBI issued master guidelines on functioning of NBFCs (Non Banking Finance Companies) last week. While the guidelines are voluminous and beyond the scope of this piece, it does bring light to a sector which is not very big but plays an important economic role, yet, somewhat shrouded in mystery due to inadequate understanding of their … Continue reading NBFCs – An Overview.. (Part I)
Automobile sector had an impressive show during the quarter with sales growth of 16% and profits of 13% as per data available with BSE. The results have been dragged down by Tata Motors which declared its results yesterday. Profit margin for the sector stood at 8%, significantly better than 6.9% for March’16 quarter and average … Continue reading Results Analysis – Automobile Industry..
The man is in a hurry..! Dr Rajan wants to complete the agenda before he leaves RBI Governor’s office in little over a week. Guidelines released by RBI yesterday to deepen corporate bond market, government securities market, develop currency market and to help banks shore up their capital brings him closer to that goal. These measures are expected … Continue reading Boosting Corporate Bond Market..
International trade as a tool of growth was recognized little late by the country with concrete efforts to boost merchandise exports taking place only over last about two decades. As a result, there was a strong exports growth since about 2000, resulting in growth of almost 20% CAGR during FY00-FY12 period. Exports crossed $ 300 … Continue reading India Exports – Changing Composition..
It has turned out to be a bumper quarter for Cement Industry with near doubling of net profit even though sales grew at barely 8%. The result has come about with all round improvement in performance – lower operating and interest cost and an increase in other income. Results are based on top ten market … Continue reading Results Analysis – Cement Industry..
Declaration of results by NTPC yesterday for June’16 quarter was the last of big ticket results from Power Generation & Distribution sector. NTPC has provided a support to the sector’s performance with growth of 11% in terms of both revenue and profits. Yet, sales growth remained at barely 3% with profits decline by same rate largely … Continue reading Results Analysis – Power Sector..
Index of Industrial Production (IIP) has recorded an increase of 2.1% for the month of June as per data released last week, best in last eight months. All the components of IIP except capital goods have shown significant change in growth. However, as in case of inflation, it would be more insightful to analyse the trend over a … Continue reading Understanding IIP's Growth…
The report on development of Corporate Bond Market in India submitted by RBI’s working group yesterday doesn’t seem to have the potential to cut much ice. For one, the recommendations of the committee, chaired by Mr H.R. Khan, are quite similar to proposals made by the chairman in his earlier speeches which have not covered much ground … Continue reading Untangling Corporate Bond Market..
SBI and a number of other Public Sector Banks (PSBs) declared their results for June’16 quarter last Friday. The results was a big sigh of relief as it provided much needed succor after heavy losses in March’16 quarter. A sample of PSBs including the top three, reported profit of Rs 3,100 crore, a sharp reversal from … Continue reading Public Sector Banks – Performance revisited..