Vodafone India and Idea Cellular announced the completion of their merger last week, proposed eighteen months ago. The telecom sector has seen several exits/mergers since the entry of Reliance Jio such as sale of Tata Tele to Airtel, R-com assets to R-Jio, closure of Aircel etc. However, this one is the biggest and more interestingly, was … Continue reading Vodafone Idea merger – The background and the gains…
The Central Statistics Office (CSO) released estimates of GDP growth for quarter ended June 18 (Q1 ’18) which hit a eight quarter high of 8.2%. More importantly, manufacturing sector, one of the eight categories within GDP, has shown rebound growing at 13.5%, almost double of last eight quarter average. The sector, contributing nearly 30% to the … Continue reading Analysing GDP and its constituents..
State Bank of India (SBI) declared loss of almost Rs 5,000 crore for the quarter ended June 18. This is despite earning operating profit of nearly Rs 12,000 crore. So, what is happening to its financials and how is it tackling it.?? That and a lot more.. SBI, the largest bank in the country with over … Continue reading State Bank of India – Realigning Strategy…
The Insolvency & bankruptcy code (IBC) has received unprecedented attention since its promulgation about two years back, more so, through the whole of this year. The designated courts have also been very busy adjudicating on cases filed before it, trudging through a nascent law which has gone through several amendments. The amendments have made the … Continue reading Decoding Insolvency & Bankruptcy Code (IBC)…
Jaiprakash Associates (JAL) suffered two setbacks in August first with The Supreme Court denying it permission to bid for its subsidiary, Jaypee Infratech, which is undergoing insolvency proceedings. The second one came this week when lenders sold another of its subsidiary for failing to meet its debt obligation. While JAL was certain to lose most … Continue reading Jaiprakash Associates – What went wrong..??
The survey estimates that there are about 21 lakh rural households in India spread across nearly 6.4 lakh villages. This corresponds to total rural population of over 95 crore or an urbanization level of only about 30%. . As mentioned in part I, AH household have a better income level due to multiple sources of … Continue reading Understanding Rural Income Pattern.. (Part II)
The distressful condition of rural economy, often falling to vagaries of monsoon is nothing new to note. However, a consolation is that rural income has increased by nearly 40% over three years ending 2016. This is brought out by a report released by NABARD (National Bank For Agriculture & Rural Development) earlier this month. A look … Continue reading Understanding Rural Income Pattern.. (Part I)
Another important factor leading to NPA is changes in ground realities. While a project is conceived factoring in a particular scenario, it doesn’t materialize or changes drastically by the time the project is commissioned. One glaring example of this is huge investment in natural gas based power plants, specially closer to Andhra Pradesh coast. This … Continue reading Understanding Bank NPAs.. (Part II)
Bank’s NPA which remains at over Rs 10 lakh crore for the quarter ended June 18 continues to haunt the sector. The problem is even more severe for Public Sector Banks which account for over 80% of these NPAs. So, how bad is the problem and what are the core factors leading to this mess? … Continue reading Understanding Banks NPAs.. (Part I)
The recent depreciation of rupee against dollar seems to have disturbed the currency market and trade balance. However, is the depreciation really that huge and is it that bad. A look at the dynamics of the exchange rate and the factors impacting it… In a free market economy, markets are expected to auto-correct and if … Continue reading Indian Rupee – Has it really depreciated??