Burning Desires is a community organization (Non-Profit Making Platform) to promote investors' awareness and eradicating herding behavior while investing. Uploaded is the IPO Outlook on RBL Bank Limited with Burning Desires Committee Recommendation.
After 1-2 quarters, DCB have potential to expand the multiple once visibility of ROE improvement. Narnolia Securities Limited buys value the bank at Rs.62/share which is 1.4 times of one year
IMS Investment Management Services provides financial services including investing in Nepal's capital market through its websites. This report analyzes the financial performance of commercial banks in Nepal during the second quarter of fiscal year 2070/71. It finds that the banking sector's net profit increased 18.33% compared to the same period last year due to higher interest income and increased lending. Nabil Bank had the highest profit growth while some banks like KIST saw declining profits. Total bank deposits increased 20.96% as excess liquidity in the market made it easier for banks to attract deposits.
Banking Sector Q4FY15 preview: Asset quality will remain under pressureIndiaNotes.com
- Loan growth for state-owned banks is expected to be moderate at 10-11% YoY due to weak corporate demand and capital conservation efforts, while private banks may see higher growth of 18-20% due to strong retail loans.
- Asset quality is likely to remain under pressure with high slippages of 2.4% and increased restructuring as the RBI forbearance period ends. Stress additions will be a key factor for state-owned bank earnings.
- Net interest margins are expected to be stable for most banks, while treasury gains from falling bond yields and provision reversals may support earnings. However, retail fees growth and high operating expenses will impact state-owned bank profits.
- The
Yes Bank saw a decline in loan growth to 10.1% YoY in the recent quarter, led by lower growth in corporate and MSME loans. Retail loan growth was healthier at 44% YoY but the bank's deposit growth was limited to 5% YoY. The bank's CASA ratio fell sharply due to declines in current and savings account deposits. Media reports indicate interest from industrialists in acquiring a stake in Yes Bank, but the bank denied these reports. Analysts say the bank's fundamentals are improving as it looks to raise capital but it faces challenges in fundraising.
The document provides a bullish outlook for the Indian stock market, specifically the Sensex, over the next few years. It predicts that economic reforms by the new Indian government will revive growth to around 6% by fiscal year 2015. This will lead to high double-digit returns in equities and a Sensex target of 38,500 by March 2017. Midcap stocks are also expected to outperform the broader market and potentially double over the next three years due to undervaluation and stronger earnings momentum as the investment cycle revives.
Federal Bank is rated a buy with a target price of Rs. 56 per share. Key points:
- The bank has faced elevated NPA levels recently but its share price may have overreacted, now at an oversold level with reasonable risk/return.
- Management is focusing on growth through digital initiatives, corporate lending, and branch optimization.
- NPA levels spiked in the first quarter of 2016 but have shown signs of retreating since. The SME segment has the highest NPA levels.
- Loan growth has been robust in SME and retail segments. Corporate loans declined recently but efforts are being made to stimulate growth.
- Deposits have grown steadily, with strong growth from the NRI segment
Shriram Housing Finance Limited is a housing finance company registered with the National Housing Bank and promoted by Shriram City Union Finance Ltd. The document provides an introduction and overview of Shriram Housing Finance including its vision, mission, values, milestones, leadership team, and relationship to the larger Shriram Group financial services conglomerate.
INDIAN ECONOMY: CHALLENGES AND EXPECTATIONSNeha Sharma
The Reserve Bank of India has recently released a small dose of liquidity by reducing Cash Reserve Ratio (CRR) by 0.5% for the commercial banks. Government borrowings have swallowed significant resources from the banking sector in recent months. The Liquidity with banking sector is still a major issue.
After 1-2 quarters, DCB have potential to expand the multiple once visibility of ROE improvement. Narnolia Securities Limited buys value the bank at Rs.62/share which is 1.4 times of one year
IMS Investment Management Services provides financial services including investing in Nepal's capital market through its websites. This report analyzes the financial performance of commercial banks in Nepal during the second quarter of fiscal year 2070/71. It finds that the banking sector's net profit increased 18.33% compared to the same period last year due to higher interest income and increased lending. Nabil Bank had the highest profit growth while some banks like KIST saw declining profits. Total bank deposits increased 20.96% as excess liquidity in the market made it easier for banks to attract deposits.
Banking Sector Q4FY15 preview: Asset quality will remain under pressureIndiaNotes.com
- Loan growth for state-owned banks is expected to be moderate at 10-11% YoY due to weak corporate demand and capital conservation efforts, while private banks may see higher growth of 18-20% due to strong retail loans.
- Asset quality is likely to remain under pressure with high slippages of 2.4% and increased restructuring as the RBI forbearance period ends. Stress additions will be a key factor for state-owned bank earnings.
- Net interest margins are expected to be stable for most banks, while treasury gains from falling bond yields and provision reversals may support earnings. However, retail fees growth and high operating expenses will impact state-owned bank profits.
- The
Yes Bank saw a decline in loan growth to 10.1% YoY in the recent quarter, led by lower growth in corporate and MSME loans. Retail loan growth was healthier at 44% YoY but the bank's deposit growth was limited to 5% YoY. The bank's CASA ratio fell sharply due to declines in current and savings account deposits. Media reports indicate interest from industrialists in acquiring a stake in Yes Bank, but the bank denied these reports. Analysts say the bank's fundamentals are improving as it looks to raise capital but it faces challenges in fundraising.
The document provides a bullish outlook for the Indian stock market, specifically the Sensex, over the next few years. It predicts that economic reforms by the new Indian government will revive growth to around 6% by fiscal year 2015. This will lead to high double-digit returns in equities and a Sensex target of 38,500 by March 2017. Midcap stocks are also expected to outperform the broader market and potentially double over the next three years due to undervaluation and stronger earnings momentum as the investment cycle revives.
Federal Bank is rated a buy with a target price of Rs. 56 per share. Key points:
- The bank has faced elevated NPA levels recently but its share price may have overreacted, now at an oversold level with reasonable risk/return.
- Management is focusing on growth through digital initiatives, corporate lending, and branch optimization.
- NPA levels spiked in the first quarter of 2016 but have shown signs of retreating since. The SME segment has the highest NPA levels.
- Loan growth has been robust in SME and retail segments. Corporate loans declined recently but efforts are being made to stimulate growth.
- Deposits have grown steadily, with strong growth from the NRI segment
Shriram Housing Finance Limited is a housing finance company registered with the National Housing Bank and promoted by Shriram City Union Finance Ltd. The document provides an introduction and overview of Shriram Housing Finance including its vision, mission, values, milestones, leadership team, and relationship to the larger Shriram Group financial services conglomerate.
INDIAN ECONOMY: CHALLENGES AND EXPECTATIONSNeha Sharma
The Reserve Bank of India has recently released a small dose of liquidity by reducing Cash Reserve Ratio (CRR) by 0.5% for the commercial banks. Government borrowings have swallowed significant resources from the banking sector in recent months. The Liquidity with banking sector is still a major issue.
Most of banking stocks reported moderate revenue and profit growth owing to multiple headwinds. In near term we are not seeing improvement in economic condition and asset quality pressure are expected to remain in the system due to tight liquidity situation and rising interest rate. Post result we like SBI, Union Bank and UCO Bank due to their structural improvement in balance sheet, operating and financial metrics.
INDIAN ECONOMY LOOKING FOR DIRECTION FOR INDIA TO SHINE AGAINNeha Sharma
The Indian economy is in the threshold of a big leap towards India shining once again, but the main stumbling block being a sense of confusion about government policies, scarcity of low cost adequate money for funding further investments and most importantly India Inc. awaiting for specific policy decisions and creative actions in the areas which has been adversely impacted due to lack of policy initiative.
State Bank of India has seen significant earnings volatility and changes to core earnings over the last two years. However, SBI's asset quality is actually better than peers when accounting for restructured loans, as SBI has one of the lowest net stress loan ratios among public sector banks despite moderate loan growth. While reported net slippages have been higher for SBI, restructured loans as a percentage of overall loans are among the lowest. SBI also improved its provision coverage ratio on the back of strong core performance. The document analyzes SBI's performance and argues it remains an top pick due to strong improvement in core operations, low net stress loans, and projected high earnings growth over the next two years.
turning around through teamwork :bank of barodaNazuk Dua
Bank of Baroda is an Indian state-owned bank headquartered in Gujarat. It has over 5,000 branches in India and abroad. The bank was facing issues like poor performance in some zones, conflict between two trade unions, and losing market share in Indore. The new manager implemented solutions like organizing a joint meeting between the unions to resolve issues, increasing branch visits and business development efforts in Indore, and improving communication between employees. These steps helped improve productivity and cooperation between staff.
The document analyzes banks' performance based on risk-adjusted margin (RAM) and risk-adjusted core income (RACI). It finds that:
1) Private banks have superior RACI compared to PSU banks, driven by higher non-interest income and better RAM. HDFC Bank, IndusInd Bank, and Punjab National Bank have particularly high RACIs.
2) RAM improved for most banks in FY2011 as margins increased, but credit costs remained elevated for PSU banks. Private banks saw a sharper RAM rise led by improved asset quality at ICICI Bank and IndusInd Bank.
3) HDFC Bank, Punjab National Bank, and Indian Bank have consistently
Narnolia Securities Limited are positive to buy stock of Tata Steel Ltd, V-Guard Industries Ltd and Infosys with target prize Rs.401, Rs.525, Rs 3760 respectively. Also Book profit on Axis bank Stock
This document provides an overview and snapshot of various equity and debt mutual fund schemes offered by SBI Mutual Fund. It includes details such as the fund name, type of scheme, allotment date, fund manager, ideal investment horizon, minimum and additional investment amounts, exit loads, options available, and minimum SIP amounts for 27 equity schemes and 16 debt schemes. Information on the managing director's message, market overview, how to read factsheets, and comparative performance of all schemes is also included.
The best stock broker and share broker in India, Rudra Shares & Stock Brokers Ltd. is member of all the leading Equity & commodity exchanges in india, dealing in stocks, shares, commodity & currency serving clientele in 18 states through 175 business partners.
The document discusses the opportunities and challenges facing India's banking sector in 2010. It analyzes three possible scenarios - high performance, evolution, and stagnation - depending on the actions taken by policymakers and bank management. For high performance, it emphasizes the need for industry consolidation, increased capital availability, strengthened regulation and corporate governance, and support for new technologies. Both policymakers and management must take decisive steps to build an enabling framework and upgrade capabilities for the banking sector to fulfill its potential in fueling India's economic growth.
This document provides an overview of the Indian mutual fund industry and investment options. It discusses the different types of mutual fund schemes available across equity, debt, hybrid, and other categories. It also provides summaries of various SBI mutual fund schemes, including information on investment objectives, portfolio allocations, and past performance. The document aims to help investors understand the mutual fund landscape and select appropriate funds based on their investment goals and risk tolerance.
NBCC Ltd is an implementing agency for various government departments that provides project management and consultancy (PMC) services. It earns margins of 5-7% on contract values and outsources actual construction to subcontractors. The company has a strong order backlog of over 3 times FY13 revenues and is expanding into real estate development. While PMC provides stable cash flows, real estate offers higher margins and returns. At a P/E of 7x with strong growth visibility, cash surplus and high returns, NBCC provides an attractive investment opportunity.
Project financed @ sbi project report mba financeBabasab Patil
The document discusses the history and evolution of banking in India across three phases. It provides details about the nationalization of banks in India in 1969 and 1980. It then discusses the liberalization of the banking sector in the 1990s allowing private banks and more foreign participation. Currently, the banking system in India is well established with a wide range of public, private, and foreign banks serving the country. Project financing is an important activity for banks like SBI to support large capital intensive projects.
The document discusses key points from a banking conference in India regarding regulatory views on Basel III and opportunities for infrastructure and SME financing. Regulators are taking a conservative approach to Basel III implementation to ensure long-term stability. Additional capital requirements for Indian banks are estimated at ~INR5t by 2018, with financing state-owned banks being a challenge. Priority sector lending remains a focus, and structural changes are needed to better support SME and infrastructure financing opportunities.
The document discusses India's monetary and banking reforms post-liberalization. It outlines the objectives of monetary policy in India including price stability, economic growth, full employment, and balance of payments equilibrium. It then describes the evolution of monetary policy frameworks and tools used, including key interest rates, cash reserve ratios, statutory liquidity ratios, and open market operations. Banking reforms introduced prudential norms, capital adequacy norms, and interest rate deregulation to increase efficiency and competitiveness in the banking sector. Overall, the reforms aimed to increase stability, reduce inflation, and boost economic growth.
- Indian GDP growth is expected to moderate to around 7% in 2012 due to weakening exports and industrial growth, but strong domestic consumption and rural demand should support the economy.
- Select sectors like IT, telecom, private banks, autos, FMCG, pharma are expected to perform well in 2012 given their earnings visibility.
- Interest rates may start declining in the second half of 2012 which could boost sectors like infrastructure and lift the stock market.
- The rupee is expected to appreciate to 48-47 levels against the dollar by the end of 2012.
Research work on kothari k30 scheme for kothari industry by akhil trivediDolly Singla
This document appears to be a project report submitted for a Master's in Business Administration program. It provides an overview of the mutual fund market in India and analyzes the Kotak K30 mutual fund scheme. The report includes sections on the introduction and history of mutual funds in India, different types of mutual fund schemes, basics of how mutual funds work, current market trends, and a methodology and conclusion section. It aims to educate investors about mutual funds and analyze the performance of the Kotak K30 scheme.
fundamental analysis for axis bank in banking industryswapnilgangele
The document discusses various aspects of the banking industry in India including economic features, liquidity controls, demand for credit, barriers to entry, and the impact of the global financial crisis in 2008-2009. It provides data on key metrics for foreign and nationalized banks over several quarters from 2007-2008 to 2008-2009 showing growth in areas like deposits, advances, and capital despite challenges from higher NPAs and debt restructuring. The conclusion notes upcoming issues and challenges for Indian banks around risk management, consolidation, technology, reforms, and skilled manpower.
Narnolia Securities Limited believe Bank of Baroda would rally more because of trading at lower side despite of index is running at all time high. But with this fundamental Bank of Baroda would trade in range of Rs.625 to Rs.700 depending upon sentiment as per our view.
This document provides information about ratio analysis and financial statement analysis. It discusses various types of ratios used in ratio analysis such as liquidity ratios, turnover ratios, leverage ratios, and profitability ratios. It provides definitions and formulas to calculate key ratios like current ratio, quick ratio, inventory turnover ratio, debtors turnover ratio, creditors turnover ratio, and debt-equity ratio. Sample calculations for these ratios from 2005-06 to 2008-09 are given along with diagrams to show the trends. The document emphasizes the importance of ratio analysis in evaluating the financial performance and position of a business.
The document discusses why India was indifferent to the US Federal Reserve's decision about whether to raise or hold interest rates. It explains that the Indian economy was in a favorable position regardless of the Fed's choice. India had taken steps to control its currency and increase foreign reserves, and its strong fundamentals like improving GDP growth meant any market corrections from capital outflows would be less severe than in the past. The RBI and Fed chairs faced similar situations regarding choosing not to cut rates due to transitory decreases in inflation. Overall, India was well positioned to benefit from higher US rates through capital inflows or see only minor impacts from any outflows.
This short document promotes the creation of presentations using Haiku Deck on SlideShare. It displays photo credits to three photographers and encourages the viewer to get started making their own Haiku Deck presentation.
Most of banking stocks reported moderate revenue and profit growth owing to multiple headwinds. In near term we are not seeing improvement in economic condition and asset quality pressure are expected to remain in the system due to tight liquidity situation and rising interest rate. Post result we like SBI, Union Bank and UCO Bank due to their structural improvement in balance sheet, operating and financial metrics.
INDIAN ECONOMY LOOKING FOR DIRECTION FOR INDIA TO SHINE AGAINNeha Sharma
The Indian economy is in the threshold of a big leap towards India shining once again, but the main stumbling block being a sense of confusion about government policies, scarcity of low cost adequate money for funding further investments and most importantly India Inc. awaiting for specific policy decisions and creative actions in the areas which has been adversely impacted due to lack of policy initiative.
State Bank of India has seen significant earnings volatility and changes to core earnings over the last two years. However, SBI's asset quality is actually better than peers when accounting for restructured loans, as SBI has one of the lowest net stress loan ratios among public sector banks despite moderate loan growth. While reported net slippages have been higher for SBI, restructured loans as a percentage of overall loans are among the lowest. SBI also improved its provision coverage ratio on the back of strong core performance. The document analyzes SBI's performance and argues it remains an top pick due to strong improvement in core operations, low net stress loans, and projected high earnings growth over the next two years.
turning around through teamwork :bank of barodaNazuk Dua
Bank of Baroda is an Indian state-owned bank headquartered in Gujarat. It has over 5,000 branches in India and abroad. The bank was facing issues like poor performance in some zones, conflict between two trade unions, and losing market share in Indore. The new manager implemented solutions like organizing a joint meeting between the unions to resolve issues, increasing branch visits and business development efforts in Indore, and improving communication between employees. These steps helped improve productivity and cooperation between staff.
The document analyzes banks' performance based on risk-adjusted margin (RAM) and risk-adjusted core income (RACI). It finds that:
1) Private banks have superior RACI compared to PSU banks, driven by higher non-interest income and better RAM. HDFC Bank, IndusInd Bank, and Punjab National Bank have particularly high RACIs.
2) RAM improved for most banks in FY2011 as margins increased, but credit costs remained elevated for PSU banks. Private banks saw a sharper RAM rise led by improved asset quality at ICICI Bank and IndusInd Bank.
3) HDFC Bank, Punjab National Bank, and Indian Bank have consistently
Narnolia Securities Limited are positive to buy stock of Tata Steel Ltd, V-Guard Industries Ltd and Infosys with target prize Rs.401, Rs.525, Rs 3760 respectively. Also Book profit on Axis bank Stock
This document provides an overview and snapshot of various equity and debt mutual fund schemes offered by SBI Mutual Fund. It includes details such as the fund name, type of scheme, allotment date, fund manager, ideal investment horizon, minimum and additional investment amounts, exit loads, options available, and minimum SIP amounts for 27 equity schemes and 16 debt schemes. Information on the managing director's message, market overview, how to read factsheets, and comparative performance of all schemes is also included.
The best stock broker and share broker in India, Rudra Shares & Stock Brokers Ltd. is member of all the leading Equity & commodity exchanges in india, dealing in stocks, shares, commodity & currency serving clientele in 18 states through 175 business partners.
The document discusses the opportunities and challenges facing India's banking sector in 2010. It analyzes three possible scenarios - high performance, evolution, and stagnation - depending on the actions taken by policymakers and bank management. For high performance, it emphasizes the need for industry consolidation, increased capital availability, strengthened regulation and corporate governance, and support for new technologies. Both policymakers and management must take decisive steps to build an enabling framework and upgrade capabilities for the banking sector to fulfill its potential in fueling India's economic growth.
This document provides an overview of the Indian mutual fund industry and investment options. It discusses the different types of mutual fund schemes available across equity, debt, hybrid, and other categories. It also provides summaries of various SBI mutual fund schemes, including information on investment objectives, portfolio allocations, and past performance. The document aims to help investors understand the mutual fund landscape and select appropriate funds based on their investment goals and risk tolerance.
NBCC Ltd is an implementing agency for various government departments that provides project management and consultancy (PMC) services. It earns margins of 5-7% on contract values and outsources actual construction to subcontractors. The company has a strong order backlog of over 3 times FY13 revenues and is expanding into real estate development. While PMC provides stable cash flows, real estate offers higher margins and returns. At a P/E of 7x with strong growth visibility, cash surplus and high returns, NBCC provides an attractive investment opportunity.
Project financed @ sbi project report mba financeBabasab Patil
The document discusses the history and evolution of banking in India across three phases. It provides details about the nationalization of banks in India in 1969 and 1980. It then discusses the liberalization of the banking sector in the 1990s allowing private banks and more foreign participation. Currently, the banking system in India is well established with a wide range of public, private, and foreign banks serving the country. Project financing is an important activity for banks like SBI to support large capital intensive projects.
The document discusses key points from a banking conference in India regarding regulatory views on Basel III and opportunities for infrastructure and SME financing. Regulators are taking a conservative approach to Basel III implementation to ensure long-term stability. Additional capital requirements for Indian banks are estimated at ~INR5t by 2018, with financing state-owned banks being a challenge. Priority sector lending remains a focus, and structural changes are needed to better support SME and infrastructure financing opportunities.
The document discusses India's monetary and banking reforms post-liberalization. It outlines the objectives of monetary policy in India including price stability, economic growth, full employment, and balance of payments equilibrium. It then describes the evolution of monetary policy frameworks and tools used, including key interest rates, cash reserve ratios, statutory liquidity ratios, and open market operations. Banking reforms introduced prudential norms, capital adequacy norms, and interest rate deregulation to increase efficiency and competitiveness in the banking sector. Overall, the reforms aimed to increase stability, reduce inflation, and boost economic growth.
- Indian GDP growth is expected to moderate to around 7% in 2012 due to weakening exports and industrial growth, but strong domestic consumption and rural demand should support the economy.
- Select sectors like IT, telecom, private banks, autos, FMCG, pharma are expected to perform well in 2012 given their earnings visibility.
- Interest rates may start declining in the second half of 2012 which could boost sectors like infrastructure and lift the stock market.
- The rupee is expected to appreciate to 48-47 levels against the dollar by the end of 2012.
Research work on kothari k30 scheme for kothari industry by akhil trivediDolly Singla
This document appears to be a project report submitted for a Master's in Business Administration program. It provides an overview of the mutual fund market in India and analyzes the Kotak K30 mutual fund scheme. The report includes sections on the introduction and history of mutual funds in India, different types of mutual fund schemes, basics of how mutual funds work, current market trends, and a methodology and conclusion section. It aims to educate investors about mutual funds and analyze the performance of the Kotak K30 scheme.
fundamental analysis for axis bank in banking industryswapnilgangele
The document discusses various aspects of the banking industry in India including economic features, liquidity controls, demand for credit, barriers to entry, and the impact of the global financial crisis in 2008-2009. It provides data on key metrics for foreign and nationalized banks over several quarters from 2007-2008 to 2008-2009 showing growth in areas like deposits, advances, and capital despite challenges from higher NPAs and debt restructuring. The conclusion notes upcoming issues and challenges for Indian banks around risk management, consolidation, technology, reforms, and skilled manpower.
Narnolia Securities Limited believe Bank of Baroda would rally more because of trading at lower side despite of index is running at all time high. But with this fundamental Bank of Baroda would trade in range of Rs.625 to Rs.700 depending upon sentiment as per our view.
This document provides information about ratio analysis and financial statement analysis. It discusses various types of ratios used in ratio analysis such as liquidity ratios, turnover ratios, leverage ratios, and profitability ratios. It provides definitions and formulas to calculate key ratios like current ratio, quick ratio, inventory turnover ratio, debtors turnover ratio, creditors turnover ratio, and debt-equity ratio. Sample calculations for these ratios from 2005-06 to 2008-09 are given along with diagrams to show the trends. The document emphasizes the importance of ratio analysis in evaluating the financial performance and position of a business.
The document discusses why India was indifferent to the US Federal Reserve's decision about whether to raise or hold interest rates. It explains that the Indian economy was in a favorable position regardless of the Fed's choice. India had taken steps to control its currency and increase foreign reserves, and its strong fundamentals like improving GDP growth meant any market corrections from capital outflows would be less severe than in the past. The RBI and Fed chairs faced similar situations regarding choosing not to cut rates due to transitory decreases in inflation. Overall, India was well positioned to benefit from higher US rates through capital inflows or see only minor impacts from any outflows.
This short document promotes the creation of presentations using Haiku Deck on SlideShare. It displays photo credits to three photographers and encourages the viewer to get started making their own Haiku Deck presentation.
The document discusses why the full benefits of reduced global crude oil prices have not been passed on to consumers in India. It notes that while crude oil prices have fallen significantly, petrol and diesel prices have only fallen by 10-15 rupees. This is because the government has used the opportunity to increase excise duties on petrol and diesel four times, capturing the savings for itself. The increased excise duties have allowed the government to generate additional revenue to reduce the fiscal deficit and improve India's financial situation. Exchange rate fluctuations have also contributed to Indian oil companies and consumers not gaining the full benefits of lower international crude prices.
Why the benefit of reduction in Crude oil prices has not been transferred to public? What are dynamics behind not reducing the Petrol and Diesel price significantly?
Impact of Federal Reserve's Decision on IndiaBurning Desires
Why India was indifferent? Burning Desires explains why India was Indifferent from Federal Reserve’s Decision as to whether raise or hold the Interest Rate
India was Indifferent means; The Indian Economy was under win-win situation irrespective of Federal Reserve’s decision, Why of the same is the main theme of this article.
This document discusses the importance of proteins and their sources. Proteins are the building blocks of life that help build, repair and maintain tissues in the body, including muscles. Good sources of protein include animal products like eggs, chicken, milk and fish, as well as plant-based options like legumes, pulses, beans and nuts. The document encourages eating protein-rich foods this week and notes that getting at least 20% of daily calories from protein can earn bonus points.
This document provides an overview of the banking system in India. It defines banking and outlines the key laws and institutions that govern banking operations, including the Reserve Bank of India Act and the Banking Regulation Act. It describes the structure of banks in India, categorizing them as commercial banks, cooperative banks, and development banks. It provides details on the various types of commercial banks, cooperative banks, and development banks in India. It also summarizes the major functions and roles of the Reserve Bank of India in regulating the banking system.
This document provides an initiating coverage report on IDFC FIRST Bank Ltd by Arihant Capital Markets Ltd. It summarizes the background of IDFC FIRST Bank, which was formed through the merger of IDFC Bank and Capital FIRST in 2018. The report highlights that the bank has rapidly increased its retail portfolio from 34.6% to 53.6% of total assets since the merger. It recommends buying the stock with a target price of Rs 37, as the bank's retail focus, strong management, and provisions taken against legacy assets reduce future risk.
The document discusses India's rising non-performing assets (NPAs) in the banking sector. It notes that NPAs have ballooned to over $180 billion, equal to 11.17 lakh crores rupees, primarily driven by rising corporate debt. A small number of large companies account for the majority of stressed assets. The rising NPAs pose significant risks to banks and require large capital infusions to meet regulatory requirements. In the short-term, resolution of NPAs will be challenging but consumption growth and economic reforms could help reduce debt issues in the medium to long-term.
July 2014 Edition of BEACON, A Monthly Newsletter by SIMCON.
Inside this issue:
INDUSTRY ANALYSIS :Banking Industry
COMPANY ANALYSIS : ICICI Bank
Concept of the Month
Quiz
Did You Know?
Non-performing assets (NPAs) in the Indian banking system have significantly increased in recent years. NPAs totaled around 2.5 lakh crores (approximately $37 billion) by the end of March 2015, equal to the budget of the state of Uttar Pradesh. State-run banks account for two-thirds of total loans but 80% of bad assets. Rising NPAs hurt bank profitability, constrain new lending, and undermine public confidence in the banking system if left unaddressed. The majority of the increased NPAs have occurred in public sector banks that extensively lent to corporates between the early 2000s and 2008; many of these companies subsequently struggled amid a global slowdown.
Progress In Banking Sector Due To Monetory Policytnd150
The document summarizes developments in the Indian banking sector from 2007-2008. It discusses the performance of commercial banks, regional rural banks, cooperative banks, and non-performing assets during this period. Key points include moderate credit growth, declining non-performing assets, increased capitalization, and consolidation in the commercial banking sector. Rural banks saw increased profits but higher recapitalization needs, while cooperative banks focused on revitalization and financial inclusion. Overall, the banking sector was affected by macroeconomic and monetary policy factors during this period.
The Union Budget for 2012-13 focused on fiscal consolidation through tax measures and limiting subsidies while also emphasizing infrastructure development and inclusive growth. Key points include GDP growth projected at 6.9% for FY12 and 7.35-7.85% for FY13, increased spending on agriculture, education, and healthcare, and measures to attract investment into capital markets and infrastructure sectors. However, the lack of major reforms disappointed markets, which declined on the day of the budget.
The document summarizes key concerns and outlook for banks in Indonesia based on meetings with banks and companies during a recent trip to Indonesia. The top three concerns expressed by banks are: 1) currency volatility due to the rupiah's large depreciation, 2) increasing regulatory intervention, and 3) potential delays in government spending if the tax revenue target is missed. Large banks are expected to see slowing earnings growth while smaller banks should see a recovery as margins improve and credit costs stabilize. Among smaller banks, BTPN is the preferred pick.
Moody's assigned first-time Baa2/P-2 ratings to Bank of Ningbo with a stable outlook. The ratings reflect the bank's baseline credit assessment of ba1 and a two-notch uplift based on the likelihood of government support given the bank's importance to Ningbo's economy. The ratings consider the bank's strong SME franchise and stable asset quality against risks from China's economic slowdown and increasing funding costs. Moody's expects the bank to maintain its financial position during economic downturns but its ratings could face downward pressure from a deterioration in asset quality or profitability.
The document provides an overview of the Indian banking industry and an analysis of ICICI Bank. It discusses the structure and segmentation of the Indian banking sector, as well as growth drivers and regulations. For ICICI Bank, the summary discusses the company's business segments, history, financial performance across segments from 2006-2010, and strategies for retail and SME banking. ICICI Bank is focusing on stabilizing underperforming segments and harnessing potential in current segments like SME lending and rural banking.
INDUSTRY OVERVIEW
Evolution of Banking Sector in India
Structure of Banking in India
Parameters/ Indicator – banking Sector
Growth of the Industry with Examples
Prominent Companies in the Banking Sector
New entrants in the Banking Sector
Exit of Banks
Major Decisions take by the Government for Banking Sector
This document provides information about non-banking financial companies (NBFCs) in India. It discusses that NBFCs engage in various financial services like lending and insurance. NBFCs contribute to the Indian economy by developing sectors like transport and helping wealth creation, especially in rural areas. The top 10 NBFCs in India include Bajaj Finserv, which provides consumer financing and insurance services. COVID-19 may impact NBFCs by increasing non-performing asset levels if delayed loan repayments result in more defaults.
The document discusses the need for consolidation in the Indian banking industry due to factors such as increased competition from foreign banks, changes in banking regulations, and the need for Indian banks to grow in order to finance large acquisitions by Indian companies. It proposes merging IDBI Bank, which has a large MSME and infrastructure lending portfolio and strong technology, with Canara Bank, which has a large retail customer base and a strong presence in South India. This merger could create synergies and benefit both banks. The document provides an overview of the Indian banking sector and macroeconomic conditions in India, and discusses the types and benefits of bank mergers in India.
Our MENA Weekly for 14 May 2017. We look at Saudi Arabia's Q1 budget data, the latest credit sentiment survey in the UAE, and Oman's sovereign credit downgrade.
The Tata group withdrew its application for a banking license in India, deciding that its current financial services model better supports its domestic and overseas strategy. This leaves 25 other applicants, including companies from the Aditya Birla, Bajaj, and Reliance groups, still in the running for new private banking licenses that the Reserve Bank of India is expected to issue. Some analysts believe the high capital requirements and regulations around priority sector lending deterred some large corporate groups from applying for a banking license.
RBL Bank is one of India's fastest growing private sector banks with operations across 20 states. It has over 4.9 million customers served through a network of 342 branches and 199 banking outlets. The bank focuses on corporate and institutional banking, commercial banking, transaction banking, branch and business banking, and retail assets as its key operating verticals.
Through a partnership-driven strategy, investments in technology and financial inclusion initiatives, RBL Bank is achieving scale and growth. It has formed partnerships across multiple segments to boost customer acquisition and lower costs. The bank also aims to expand access to banking in rural areas and among lower-income households through initiatives like increasing its stake in Swadhaar Finserve.
Strong risk
- Yes Bank is an Indian private sector bank that has grown to become the 4th largest private bank in India. It has over 600 branches with a focus in Northern and Western India.
- The document recommends Yes Bank as a strong buy due to its strong financials, shift towards a retail-led strategy that will boost profit margins, and potential interest rate cuts that will support loan growth.
- Yes Bank has successfully increased its lower-cost current and savings account deposits while maintaining strong asset quality and profitability. It is poised for further growth as it expands its retail presence.
Public sector banks account for over 90% of gross and net non-performing assets (NPAs) in India's banking system according to an RBI report. NPAs have increased in recent years for several reasons, including the economic slowdown affecting corporate profits and ability to repay loans, relaxed lending norms, and lack of a bankruptcy code to help banks recover loans. The document outlines various short-term and long-term measures that can be taken to curb the growing problem of NPAs at public sector banks, such as reviewing existing loans, passing a bankruptcy code, establishing an asset reconstruction company, and improving credit risk management practices.
Similar to Burning desires ipo outlook rbl bank (20)
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2. Pg. 02 Burning Desires IPO Outlook- RBL Bank
The issue comprised of fresh issue of equity shares by the bank aggregating up
to Rs 832.5 crore; and an offer for sale up to 1,69,09,628 equity shares,
including 38,79,070 shares by 48 shareholders like Elephant India Finance,
Capvent India Private Equity Fund, Gaja Trustee Company (on behalf of Gaja
Capital India Fund I) etc.
Other shareholders in offer for sale are Beacon India PE Fund (95, 05,558
shares) and GPE India (35, 25,000 equity shares).
Critical Aspect
The bank will not receive any proceeds from the offer for sale.
The objects of the fresh issue are to augment bank’s Tier-I capital base to meet
future capital requirements which are expected to arise out of growth in
assets, primarily loans/advances and investment portfolio, and to ensure
compliance with Basel III and other RBI guidelines. In addition, the bank
believes that the listing of equity shares will enhance visibility and brand name
among existing and potential customers.
Qualitative Aspects
The company changed its name to RBL Bank from Ratnakar Bank in 2014 as
part of a brand-building exercise that saw it spread its network from western
Maharashtra and northern Karnataka, to other parts of the country.
As of FY16, it has 197 interconnected branches (88 branches in Tier 1 centers
and 109 branches in Tier 2 to Tier 6 centers) and 362 interconnected ATMs
spread across 16 Indian states and union territories serving approximately 1.90
million clients.
Understanding
Banking
companies have
to maintain two
types of broad
category of
capital.
Tier-I and Tier-II
The intent of
this IPO is to
meet future
capital
requirement for
Tier-I Capital
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3. Pg. 03 Burning Desires IPO Outlook- RBL Bank
As part of growth strategy, the bank acquired certain Indian businesses of the
Royal Bank of Scotland (RBS), including RBS’s business banking, credit card and
mortgage portfolio businesses, in FY14.
It also recently acquired a minority stake in Swadhaar FinServe Private Limited,
a company acting as a business correspondent, facilitator, agent and distributor
for financial services providers for Rs 20.5 crore.
As per Burning
Desires, the
bottom line here
is not how many
branches and
ATMs that RBL is
having as of
now. Rather it
would be the
capital
expenditure
(CapEx) that it
could incur in
times to come,
because that
could hurt the
return numbers.
But CapEx
spending has got
power of
sentiments. So,
need not to fear
about Tier-I
capital spending
-- Yogesh V. Gabani
4. Pg. 04 Burning Desires IPO Outlook- RBL Bank
Earnings
Profit in the year ended March 2016 increased 41.2 percent, net interest
income 47.2 percent, operating profit 50.6 percent and other income 21.6
percent compared to FY15.
Net interest margin remained stable at 3 percent in FY16 and FY15 each
against 2.7 percent in FY14 and 3.2 percent in FY13.
For banking,
make no
mistakes, Profit
margin is the
next criteria
after NIM- Net
Interest Margin.
Since RBI is in
mood to further
lower down the
interest rates
and guidelines
to improvise
interest rate
transmission is
lined up down
the line, the
numbers could
pick up in
quarters to
come.
-- Yogesh V. Gabani
T
5. Pg. 05 Burning Desires IPO Outlook- RBL Bank
ASSET QUALITY
Asset quality deteriorated in the year ended March 2016 as net non-
performing assets (NPA) more than doubled to 0.59 percent compared to
FY15. Asset quality concerns were also seen across the banking sector
especially in the second half of FY16.
Why NPA is Critical?
As per Burning Desires, It’s a Bad Debt for any bank. Here, bank has to forget
about Interest income, but it won’t even get the money lent. Along with that it
has got direct impact to bottom line and thus it can change the investors’ opinion
and sentiments for particular bank in the market.
As mentioned
earlier also,
Burning Desires
has a lot to
explain as long
as NPAs are
concerned. Here,
NPA has
escalated as
compared to
previous year to
0.59%, But is not
a great concern
as its one of the
lowest of them
all.
-- Yogesh V. Gabani
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6. Pg. 06 Burning Desires IPO Outlook- RBL Bank
Wasim Shaikh, Editor-In-Charge at Burning Desires explains how the NPA
behavior is found in Public and Private sector bank. As per his analysis private
sector banks are having better asset quality and lower NPAs as compared to
public sector banks.
2011-
12
2012-
13
2013-
14
2011-
12
2012-
13
2013-
14
2011-
12
2012-
13
2013-
14
Overall
Public Sector
Banks
Private Sector
Banks
Gross NPA Ratio(%) 2.79 3.26 3.85 2.98 3.59 4.33 1.96 1.86 1.82
Net NPA Ratio(%) 1.04 1.71 2.16 1.18 2 2.53 0.36 0.36 0.62
Net NPA / Net Worth (%) 13.04 16.39 21.19 17.54 22.39 29.21 2.7 2.97 3.78
0
5
10
15
20
25
30
35
Valuesin%
Public and Private Sector Banks Comparison (NPA)
As per Wasim
Shaikh, Editor-In-
Charge at Burning
Desires, private
sector banks are
having better
asset quality and
lower NPAs as
compared to
public sector
banks because of
Policy gaps in
terms of
Administration,
Formation and
Interference.
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7. Pg. 07 Burning Desires IPO Outlook- RBL Bank
The bank had provided for an amount of Rs 93.19 crore during the fiscal year
ended March 2016 towards provision for NPA, non-performing investments,
depreciation on investments, write-off and sacrifice for restructured advances.
One of the best
aspects is downward
pick up in
Provisioning
coverage ratio along
with Cost to Income
ratio, Which declined
to 55.87 percent in
FY16 from 68.28
percent in FY15.
As per committee
headed by Yogesh
V. Gabani, the cost
to income ratio
may increase in
times to come due
to CapEx in terms
of Branch
expansion and
reach. As in
banking sector
employee cost is
one of the major
cost head after
interest expense
-Vikas Jain,
Moderator,
Burning Desires
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8. Pg. 08 Burning Desires IPO Outlook- RBL Bank
LOAN EXPOSURE
The bank’s exposure to real estate sector stood at Rs 2,248 crore at the end
of March 2016, representing 7.08 percent of gross credit portfolio.
Its exposure to the industries exceeding 5 percent of the total gross credit
exposure (as per Basel III disclosure) are infrastructure, traders, and food
processing, construction, NBFC (MFI) and chemical products. Furthermore, it
has substantial exposure to agriculture and MSMEs, the priority sectors.
Gross priority sector advances aggregated Rs 6,862.22 crore as per
prospectus data.
Its aggregate loans advanced to 20 single largest borrowers amounted to Rs
4,635.29 crore, representing 14 percent of total advances as of March 2016.
Credit exposure is
nothing but as per
burning desires, it’s
monetary outflow in
terms of loans to
various categories.
As the chart displays
the credit exposure
to Infrastructure and
real estate is highest.
As thee current
government supports
this two sectors, RBL
can leverage on the
same as previous and
upcoming budget will
also be in favor to
this.
-Yogesh V. Gabani
That’s how RBL is
safeguarding its
NPAs.
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9. Pg. 09 Burning Desires IPO Outlook- RBL Bank
ADVANCES
As of March 2016, 82.67 percent of net advances were secured by collateral,
including real estate assets, property, gold ornaments, plant, equipment,
inventory, receivables, current assets and pledges or charges on fixed assets,
bank deposits, NSC/KVP/insurance policy or financial assets such as
marketable securities and guarantees.
If we look at the
change in credit
exposure to various
sectors, the portfolio
is best modified. RBL
has reduced exposure
to uncertain and
highly dependent
sectors including
Aviation, Metal,
Rubber and Plastic,
Cement etc.
-Yogesh V. Gabani
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10. Pg. 10 Burning Desires IPO Outlook- RBL Bank
A 17.33 percent (or Rs 3,678.87 crore) of net advances were unsecured.
DEPOSITS
RBL’s total deposits at the end of FY16 stood at Rs 24,348.7 crore against Rs
17,099.3 crore in FY15.
Gross and Net
advances running
parallel due to
negligible NPAs.
RBL is having highest
amount as term
deposit under total
deposits year on
year, maintaining
liquidity by blocking
money movement at
a given point in time.
-Yogesh V. Gabani
11. Pg. 11 Burning Desires IPO Outlook- RBL Bank
As on FY16, top 20 depositors constituted 22.88 percent of total deposits as
compared to 27.32 percent and 23.82 percent as of FY15 and FY14.
DIVIDEND & COMPETITORS
The bank paid dividend of 9 percent (90 paise) and 12 percent (Rs 1.2) per
equity share to shareholders for FY14 and FY15, respectively. It has also
paid an interim dividend of 15 percent (Rs 1.5) per share for FY16.
RBL said it did not expect to pay any final divided over and above the
interim dividend already paid as per prospectus data.
Capital adequacy
ratio is above both
RBI guidelines and
industry average. So,
not a concern for us
as long as investment
consideration goes..
As explained earlier
there has been a
decline in CASA-
Current account
saving account
because of
continuous increment
in term deposits.
As per Burning
Desires there are
certain strong
competitors like Yes
Bank, UCO Bank,
Kotak Mahindra,
IndusInd Bank and
Union and DCB.
Because, RBL is
having more
corporate exposure.
-Yogesh V. Gabani
12. Pg. 12 Burning Desires IPO Outlook- RBL Bank
Comparison with listed industry peers (FY16)
Burning Desires Committee Recommendations- Sector Specific View
The Indian economy is now on the threshold of a major transformation, with
expectations of policy initiatives by the change in guard at the Centre and
Indian government has also came up with numerous initiatives to boost the
economy. Positive business sentiments, improved consumer confidence and
more controlled inflation should help boost the economic growth. With a new
and stable Government in place now, a clear revival in the investment climate
is sure to come because if Economy has to grow, strong banking industry
should be at place. Higher spending on infrastructure, speedy implementation
of projects and continuation of reforms will provide further impetus to growth.
A moderate recovery is likely to be seen in FY15 and the real GDP is expected
to grow by 5.3% - 5.5% after normalizing inflation rate. While the CPI inflation is
expected to remain an important challenge for India, it should witness a
downward trajectory during the major part of FY15.
13. Pg. 13 Burning Desires IPO Outlook- RBL Bank
Technology Innovation and Technology Impartment
Life has become complex and in the era of competitive business, account holders and
B2B clients are demanding fast service at their time. Specifically for public sector
banks technology innovations are required to fulfill the client needs because customer
choices would change dramatically with technological innovations in upcoming years
to come, as a result of which lenders which still depend on savings deposits to attract
customers, could face oblivion in the next five years. Otherwise specifically in Semi-
Urban and Urban areas domestic private and public sector banks won’t be able to
compete with foreign banks because, with increasing volume and complexity of the
banking business, it will be imperative for the regulator to move gradually towards
more offsite monitoring than onsite. Technology will play a much larger role in the
overall supervision of the banking system. There are likely to be transformational
changes in the entire regulatory system for financial services.
On the other hand, the recent decision of the government to capitalize public sector
banks based on their efficiency could go a long way in ending the muscle power that
the state-run banks enjoy, if the government sticks to the strategy of selective
infusion of capital because the growth of weaker banks are still on the line. Weaker
banks' survival would be in question as their ability to raise capital from the market
would be limited because of mounting non-performing loans and NPAs are also
constituently rising as far as public sector banks are concerned.
14. Pg. 14 Burning Desires IPO Outlook- RBL Bank
Current scenario of Banking Sector
We should not deny the fact that if economy has to grow, there should be a
strong presence of banking sector in the country. In India, Private sector banks
has been achieving superior performance as compared to PSU banks if we
compare them in terms of various significance indicators such as NAPs, Net
Interest Earning, Profit per employee and profitability growth. The total asset
of all scheduled commercial banks was nearly 4500000 crore rupees by
financial year ending March, 2014 but increasing trend in NPAs remains a big
challenge ahead particularly for PSU banks but it could impact the banking
sector as a whole as far as equity investment is concerned but still Future
earning potential in Indian banking sector is expected to remain high, may not
be in the current year.
IPO Recommendation:
As this is the first banking sector IPO after 6 years and after the YES Bank IPO,
Conservative and sector specific investors will get activated. One should subscribe
with minimum holding period of 4 Months and positional traders should avoid as due to
price sentiments overnight gains may not attained.
-Yogesh Vallabhbhai Gabani
Chief Administrator, Burning Desires
Currently, Public
sector bank is
holding 74% of total
banking sector
assets. So, immense
scope for private
sector banks to grow.
On top of that
budgetary liquidity,
transmission
measure and lower
inflation rate will
provide incentive to
banks in times to
come.
-Yogesh V. Gabani