Shares Pledging – Understanding The Risks

Sale of pledged shares of certain corporate groups by the lenders has once again brought share pledging into focus. The practice had generated lot of controversy over a decade ago during Satyam scam, leading to changes in the regulations governing it. While lender cannot be blamed for the sale, developments leading to the sale and […]

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Deciphering Core Sector Growth…

Core sectors recorded growth of just 1.5% for the month of Jan’19 as per the ministry of commerce data released today. While growth has come down sharply from a peak of 7.8% in June’18, it is more a result of base effect than any decline in activity. Average growth for the first ten months of […]

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Understanding Indus Water Treaty…

The ‘non-military preemptive’ action carried out by India yesterday is the culmination of long advocated line of action to eliminate the menace of terrorism. Other than these, a measure proposed on the economic front is to stop supply of India’s share of water from the Indus river system. Whether that can be done and what […]

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Weekly Round Up – Week 8

Major events of the week were Changes in rules governing Oil & Gas exploration, fund infusion by the government in Public sector banks and Relaxation in Angel Tax in economy and policy space. Reliance ADAG group companies and Jet Airways remain in the news in Corporate space, albeit, for all the wrong reasons. Changes in rules governing Oil & […]

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Towards Efficient Electricity Market (Part III)

After the creation of single market for manufacturing and services through GST, for agriculture through E-NAM (still, work-in-progress), it is the turn of electricity market. CERC (Central Electricity Regulatory Commission) released a draft proposal last month whereby buyers and sellers would move from current bilateral Power Purchase Agreement (PPA) to a single electronic platform. The […]

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Solar Power In India – An Overview

Solar power in India received a setback with the cancellation of a tender for installation of up to 5,000 mw of solar power plant recently. Lack of interest in the tender is being attributed to inadequate financial incentive and sharp drop in price being quoted which do not appear sustainable. While, this may mean some […]

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Bank Analysis – State Bank of India (Part II)

The third group of bank’s operations is international banking with global balance sheet of over Rs 4 lakh crore and net profit of Rs 1,400 crore. While the profitability looks low, it is not unique to the bank. International banking operates on rather thin margins, that being one of the reasons for global financial crisis […]

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Reliance Communications – Analyzing The Failure..

Reliance Communications’ plea to NCLT (National Company Law Tribunal) to proceed with insolvency process marks the demise of another telecom company. The insolvency plea was filed against RCom by Ericson, an operational creditor, in May’18 which has also filed some more cases against the company and its chairman. While the company cannot be blamed for […]

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Chinese Economy – Challenge of Transition…

After growing at an average pace of about 10% for more than two decades, Chinese economy has cooled down to 6-7% range over last 3-4 years. This is the result of a shift in policy leading to slowdown in investments & exports of low value products, the two drivers of growth so far. The shift in […]

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Budget – Revenue & Expenditure Analysis (Part II)

Against total receipt of Rs 20.8 lakh crore, government is projected to spend nearly Rs 27.8 lakh crore in FY20. Other than interest payments, broad areas which account for maximum expenditure are Defence, Subsidies and rural & agriculture sector. These three heads, together, account for almost Rs 9 lakh crore or one-third of government’s total budget. […]

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