The document discusses the steps private equity firms are taking to address slow growth in India since 2010. It mentions that private equity struggled due to poor growth of companies they invested in between 2006-2009. Now, private equity firms are taking a more hands-on approach, building sector expertise, looking at alternative investments like tier-2 cities, and obtaining insurance to protect their investments. The new strategy aims to ensure higher returns and more successful exits from investments.
CBLO is a money market instrument that allows entities access to borrow and lend funds against securities for short periods of 1 day to 1 year. It involves CCIL acting as an intermediary between the borrower and lender. Capital employed represents the total long-term funds from shareholders and creditors used in a business. It is used to calculate return on capital employed (ROCE). A qualified institutional buyer (QIB) is an institution that can privately purchase securities from listed companies to help companies raise funds within India's domestic market. The statutory liquidity ratio (SLR) is the minimum fraction of deposits that banks must maintain as liquid assets like government securities and cash.
The Reserve Bank of India released a draft report from a working group examining issues related to discrimination in pricing of credit, which made several recommendations to promote transparency and fairness in credit pricing, including moving towards computing base rates based on marginal cost of funds, ensuring boards approve pricing policies to prevent discrimination, and developing new benchmarks for floating rate loan products. The report also recommended improving grievance redressal systems, financial education initiatives, and enhancing borrower mobility between loans.
This document discusses micro equity finance as a potential financial product for small and micro enterprises in India. It notes that over 90% of Indian establishments currently have limited sources of financing beyond self-finance or loans. Micro equity finance could help more establishments access capital market financing through a structured process where financiers gradually decrease their equity stake in customer enterprises over time as the customers buy back shares periodically. This would help customers eventually take full ownership of the capital in their enterprises while providing a new financing option accessible to more small businesses. The document outlines the proposed process, stages, and precautions for implementing micro equity finance through MFIs and banks.
This document summarizes key aspects of the Bank and Financial Institution Act (BAFIA) 2073 passed in Nepal. It outlines the historical context of banking acts in Nepal. It then discusses disputes around BAFIA 2073 and why it was formulated. Some of the key changes introduced in BAFIA 2073 include provisions around board of directors qualifications and tenure, CEO qualifications, classification of banks, and restrictions on certain individuals serving on boards. Full implementation of BAFIA 2073 is expected to take around one year. Some issues around adapting banking regulations to federalism in Nepal and balancing CEO and board powers still need to be addressed.
Merger and acquisition of BFIs in NepalUjjwal Chand
The document discusses mergers and acquisitions (M&A) of banks and financial institutions (BFIs) in Nepal. It provides background on the increasing number of BFIs in Nepal leading to requirements for mergers. It describes different types of mergers and defines mergers and acquisitions. The document outlines reasons for and benefits of M&A as well as impacts in the Nepalese context. It discusses the merger process and history of BFI mergers in Nepal, including details of the merger between Machhapuchchhre Bank and Standard Finance.
IDBI Bank is an Indian state-owned banking and financial services company headquartered in Mumbai, India. It was established in 1964 as the Industrial Development Bank of India to provide credit and other financial facilities for the establishment and development of industries in India. Over the years, IDBI has expanded its operations to include various banking services such as consumer banking, corporate banking, investment banking, private banking, wealth management and more. As of 2021, IDBI Bank has over 15435 employees and total assets of Rs. 2650 billion.
Innovative financial models to promote affordable housingSyed Zahid Ahmad
This document discusses strategies to promote affordable housing in India to achieve the goal of "Housing for All by 2022" under Pradhan Mantri Awas Yojana (PMAY). It proposes using alternative financing models like lease financing and joint asset financing that set unequal monthly installments linked to inflation and income growth to make housing affordable for lower income groups. It also recommends the government encourage these models and waive taxes on affordable housing to reduce costs.
CBLO is a money market instrument that allows entities access to borrow and lend funds against securities for short periods of 1 day to 1 year. It involves CCIL acting as an intermediary between the borrower and lender. Capital employed represents the total long-term funds from shareholders and creditors used in a business. It is used to calculate return on capital employed (ROCE). A qualified institutional buyer (QIB) is an institution that can privately purchase securities from listed companies to help companies raise funds within India's domestic market. The statutory liquidity ratio (SLR) is the minimum fraction of deposits that banks must maintain as liquid assets like government securities and cash.
The Reserve Bank of India released a draft report from a working group examining issues related to discrimination in pricing of credit, which made several recommendations to promote transparency and fairness in credit pricing, including moving towards computing base rates based on marginal cost of funds, ensuring boards approve pricing policies to prevent discrimination, and developing new benchmarks for floating rate loan products. The report also recommended improving grievance redressal systems, financial education initiatives, and enhancing borrower mobility between loans.
This document discusses micro equity finance as a potential financial product for small and micro enterprises in India. It notes that over 90% of Indian establishments currently have limited sources of financing beyond self-finance or loans. Micro equity finance could help more establishments access capital market financing through a structured process where financiers gradually decrease their equity stake in customer enterprises over time as the customers buy back shares periodically. This would help customers eventually take full ownership of the capital in their enterprises while providing a new financing option accessible to more small businesses. The document outlines the proposed process, stages, and precautions for implementing micro equity finance through MFIs and banks.
This document summarizes key aspects of the Bank and Financial Institution Act (BAFIA) 2073 passed in Nepal. It outlines the historical context of banking acts in Nepal. It then discusses disputes around BAFIA 2073 and why it was formulated. Some of the key changes introduced in BAFIA 2073 include provisions around board of directors qualifications and tenure, CEO qualifications, classification of banks, and restrictions on certain individuals serving on boards. Full implementation of BAFIA 2073 is expected to take around one year. Some issues around adapting banking regulations to federalism in Nepal and balancing CEO and board powers still need to be addressed.
Merger and acquisition of BFIs in NepalUjjwal Chand
The document discusses mergers and acquisitions (M&A) of banks and financial institutions (BFIs) in Nepal. It provides background on the increasing number of BFIs in Nepal leading to requirements for mergers. It describes different types of mergers and defines mergers and acquisitions. The document outlines reasons for and benefits of M&A as well as impacts in the Nepalese context. It discusses the merger process and history of BFI mergers in Nepal, including details of the merger between Machhapuchchhre Bank and Standard Finance.
IDBI Bank is an Indian state-owned banking and financial services company headquartered in Mumbai, India. It was established in 1964 as the Industrial Development Bank of India to provide credit and other financial facilities for the establishment and development of industries in India. Over the years, IDBI has expanded its operations to include various banking services such as consumer banking, corporate banking, investment banking, private banking, wealth management and more. As of 2021, IDBI Bank has over 15435 employees and total assets of Rs. 2650 billion.
Innovative financial models to promote affordable housingSyed Zahid Ahmad
This document discusses strategies to promote affordable housing in India to achieve the goal of "Housing for All by 2022" under Pradhan Mantri Awas Yojana (PMAY). It proposes using alternative financing models like lease financing and joint asset financing that set unequal monthly installments linked to inflation and income growth to make housing affordable for lower income groups. It also recommends the government encourage these models and waive taxes on affordable housing to reduce costs.
The issues of proper Financial Management and Corporate Governance have taken a centre stage. The Public Sector Banks as well as Private Sector Banks are witnessing acute rise in nonperforming assets, moving up to 4.6% in March, 2015, whereas stressed advances have increased to 11.1% of the total advance, from 8% about 2 year ago. The major reasons as per a research of a large sample are as follows:
ICICI Bank is India's second largest bank with assets of Rs. 3634 billion. It has over 2500 branches and 6000 ATMs across India. In 2010, ICICI Bank merged with Bank of Rajasthan, another private sector bank. The merger was approved by both banks' boards in May 2010 and received regulatory approval. As part of the merger, all Bank of Rajasthan branches became ICICI Bank branches. The merger has benefited both banks as seen in improved financial ratios like liquidity, profitability, and returns in the years since the merger was completed.
NON PERFORMING ASSETS – NEED FOR PRAGMATIC & PRACTICAL REGULATORY FRAMEWORK Neha Sharma
The Reserve Bank of India, Indian Banks Association, almost all Public Sector Banks and the Indian businesses are deeply concerned about significant rise in nonperforming assets during last one year. The Indian economy has been passing through unprecedented turbulent times. Many important sectors of the economy have been adversely affected.
The document discusses several mergers that have occurred in the Indian banking sector between 2004-2014. It provides details of four notable mergers:
1) In 2004, Global Trust Bank merged with Oriental Bank of Commerce. This increased OBC's branch network and allowed it to gain customers, but also lowered profits initially.
2) In 2008, Centurion Bank of Punjab merged with HDFC Bank. This expanded HDFC's network significantly but also came with challenges of integrating a bank with poorer asset quality.
3) In 2010, ICICI Bank merged with Bank of Rajasthan to strengthen its presence in northern and western India but had to address BOR's non-performing loans.
4) In
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.
IDENTIFYING THE POSSIBLE LIMITATIONS AND CHALLENGES FACED BY THE NON-BANKING FINANCIAL INSTITUTIONS (NBFI) ON IMPROVING THE DEMAND FOR PERSONAL LOANS
by Nulaim Nuwaiz
This document provides information about various credit guarantee schemes operated by Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) in India. It summarizes recent amendments made to expand coverage to retail traders. It also outlines eligibility criteria, extent of guarantee coverage, applicable fees, and features of schemes for education loans, skill development loans, and micro units. The document concludes by describing the CGTMSE module available in the Finacle banking software.
Banking licenses for nbfc’s in banking its impactAnil Nain
This document discusses non-banking financial companies (NBFCs) and the impact of allowing them to obtain banking licenses in India. NBFCs are currently regulated by the Reserve Bank of India and provide financial services like loans and insurance, but cannot accept demand deposits or issue checks like commercial banks. The document notes that the RBI is considering providing limited banking licenses to qualified NBFCs and private companies. This would foster greater competition and reduce costs, while improving access to financial services and strengthening the overall banking sector. However, it may also make monetary policy more difficult to implement and decrease the RBI's regulatory power.
This dissertation examines the impact of non-banking financial companies (NBFCs) on the Indian economy. It begins with an introduction to NBFCs and microfinance in India. It then discusses the objectives and research methodology of the study. The document reviews literature on NBFCs and their role in India. It analyzes the various services provided by NBFCs and their contribution to the financial sector and overall economy. The dissertation also examines challenges faced by NBFCs and recommendations to support their role in economic development. Key topics covered include self-help groups, microfinance models, and the work of organizations providing microfinance services.
This document provides an initiating coverage report on State Bank of India by Arihant Capital Markets. It recommends buying the stock with a target price of Rs. 456, representing an upside of 37% from the current market price. The report highlights SBI's improving asset quality, falling deposit rates due to rate cuts, healthy recoveries from resolving distressed assets, and growing retail portfolio as reasons for the positive outlook. Key financial projections show rising profits driven by loan growth and margin expansion over the next two years.
Punjab National Bank was established in 1895 in Lahore with founders including leaders of the Swadeshi Movement. It offers personal, social, MSME, agricultural, corporate, and international banking services as well as online and mobile banking. Its vision is to be a leading global bank with a pan-India presence providing a full range of financial products and services. Strengths include improved profitability and market share, but it faces weaknesses such as increased debt and competition from business consolidation presents a threat.
The document provides information on Non-Banking Financial Companies (NBFCs) in India. It defines NBFCs as non-banking companies that are principally engaged in financial services like loans, acquisitions, leasing etc. NBFCs are regulated by the Reserve Bank of India and are categorized based on their activities. The key differences between banks and NBFCs are that NBFCs cannot accept demand deposits or issue cheques. The document also lists and describes various types of NBFCs registered with RBI.
This document provides an overview of IDBI Bank and discusses its history, business strengths, and strategic priorities. IDBI Bank was established in 1964 as India's apex development financial institution and played a critical role in the country's industrial and economic progress. It has since transitioned to a universal bank while maintaining its leadership in corporate and infrastructure lending. The bank has a strong technology platform, high operational efficiencies, and aims to expand its retail footprint and global presence while upholding high standards of governance and social responsibility.
The document contains the mission statement, vision statement, and analyses of State Bank of India (SBI).
The mission statements focus on becoming a premier Indian financial institution committed to excellence in customer service and shareholder value, while playing a leading role in India's financial sector.
The vision statements articulate goals such as attaining world-class efficiency and professionalism, maximizing shareholder value, and providing opportunities for employee growth.
Analyses of SBI note political, economic, social, and technological factors that could impact its operations, such as government policies, economic growth trends, demographic shifts, and advancing financial technologies.
The document outlines various statutory and regulatory restrictions on loans and advances that banks can provide. It discusses restrictions on loans to banks' own directors, loans against bank shares, and restrictions on remitting debts. It also summarizes guidelines on loans to related parties, industries producing ozone-depleting substances, sensitive commodities, and various other types of loans and advances.
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.
This document discusses the merger between ICICI Bank and Bank of Rajasthan in India. Some key points:
- ICICI Bank acquired Bank of Rajasthan through an all-share deal in 2008 to expand its network in northern and western India. The deal was valued at $668 million.
- The merger was a horizontal merger that provided benefits like economies of scale and increased competition. It helped ICICI Bank penetrate the Rajasthan market and strengthen its branch network.
- While the acquisition helped ICICI Bank gain low-cost deposits and a loan portfolio, it had to address issues like employee strikes and regulatory non-compliance at Bank of Rajasthan.
- Overall, the merger proved
Yes Bank was founded in 2004 by Ashok Kapur and Rana Kapoor in India. It received several awards for its rapid growth and innovations. The bank aimed to expand significantly by 2015 with over 900 branches across India serving over 100,000 crores in advances. RBI granted Yes Bank its banking license in 2004 allowing it to commence banking operations in India.
This is presentation being presented by Shivi Aggarwal, Radhika Gupta, Sweta Agarwal and Madhusudan Partani Students of FORE School of Management ( FMG-18).
It has Guidelines of HFC, Busniess Model of HDFC
The document discusses the financial sector in India and Bajaj Finserv Lending. It notes that the Indian financial sector is large and growing rapidly. Bajaj Finserv Lending is one of the largest and most diversified non-banking financial companies in India, offering over 24 financial products across 12 categories including loans for vehicles, durables, businesses, and life insurance. It provides a brief history of Bajaj Finserv starting in 1987 and highlights its expansion into new financial products and services over time.
This document discusses various ways that human beings are wasting precious resources and provides solutions. It notes that 30 billion water bottles are used in the US each year, most of which end up in landfills. Producing bottled water uses significant oil and water resources. It recommends drinking tap water instead. The document also discusses overuse of paper and meat, both of which require substantial energy and water to produce. It suggests reducing paper usage, printing double-sided, and becoming vegetarian or reducing meat consumption. Buying local food is also recommended as it saves on transportation and supports local economies.
The issues of proper Financial Management and Corporate Governance have taken a centre stage. The Public Sector Banks as well as Private Sector Banks are witnessing acute rise in nonperforming assets, moving up to 4.6% in March, 2015, whereas stressed advances have increased to 11.1% of the total advance, from 8% about 2 year ago. The major reasons as per a research of a large sample are as follows:
ICICI Bank is India's second largest bank with assets of Rs. 3634 billion. It has over 2500 branches and 6000 ATMs across India. In 2010, ICICI Bank merged with Bank of Rajasthan, another private sector bank. The merger was approved by both banks' boards in May 2010 and received regulatory approval. As part of the merger, all Bank of Rajasthan branches became ICICI Bank branches. The merger has benefited both banks as seen in improved financial ratios like liquidity, profitability, and returns in the years since the merger was completed.
NON PERFORMING ASSETS – NEED FOR PRAGMATIC & PRACTICAL REGULATORY FRAMEWORK Neha Sharma
The Reserve Bank of India, Indian Banks Association, almost all Public Sector Banks and the Indian businesses are deeply concerned about significant rise in nonperforming assets during last one year. The Indian economy has been passing through unprecedented turbulent times. Many important sectors of the economy have been adversely affected.
The document discusses several mergers that have occurred in the Indian banking sector between 2004-2014. It provides details of four notable mergers:
1) In 2004, Global Trust Bank merged with Oriental Bank of Commerce. This increased OBC's branch network and allowed it to gain customers, but also lowered profits initially.
2) In 2008, Centurion Bank of Punjab merged with HDFC Bank. This expanded HDFC's network significantly but also came with challenges of integrating a bank with poorer asset quality.
3) In 2010, ICICI Bank merged with Bank of Rajasthan to strengthen its presence in northern and western India but had to address BOR's non-performing loans.
4) In
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.
IDENTIFYING THE POSSIBLE LIMITATIONS AND CHALLENGES FACED BY THE NON-BANKING FINANCIAL INSTITUTIONS (NBFI) ON IMPROVING THE DEMAND FOR PERSONAL LOANS
by Nulaim Nuwaiz
This document provides information about various credit guarantee schemes operated by Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) in India. It summarizes recent amendments made to expand coverage to retail traders. It also outlines eligibility criteria, extent of guarantee coverage, applicable fees, and features of schemes for education loans, skill development loans, and micro units. The document concludes by describing the CGTMSE module available in the Finacle banking software.
Banking licenses for nbfc’s in banking its impactAnil Nain
This document discusses non-banking financial companies (NBFCs) and the impact of allowing them to obtain banking licenses in India. NBFCs are currently regulated by the Reserve Bank of India and provide financial services like loans and insurance, but cannot accept demand deposits or issue checks like commercial banks. The document notes that the RBI is considering providing limited banking licenses to qualified NBFCs and private companies. This would foster greater competition and reduce costs, while improving access to financial services and strengthening the overall banking sector. However, it may also make monetary policy more difficult to implement and decrease the RBI's regulatory power.
This dissertation examines the impact of non-banking financial companies (NBFCs) on the Indian economy. It begins with an introduction to NBFCs and microfinance in India. It then discusses the objectives and research methodology of the study. The document reviews literature on NBFCs and their role in India. It analyzes the various services provided by NBFCs and their contribution to the financial sector and overall economy. The dissertation also examines challenges faced by NBFCs and recommendations to support their role in economic development. Key topics covered include self-help groups, microfinance models, and the work of organizations providing microfinance services.
This document provides an initiating coverage report on State Bank of India by Arihant Capital Markets. It recommends buying the stock with a target price of Rs. 456, representing an upside of 37% from the current market price. The report highlights SBI's improving asset quality, falling deposit rates due to rate cuts, healthy recoveries from resolving distressed assets, and growing retail portfolio as reasons for the positive outlook. Key financial projections show rising profits driven by loan growth and margin expansion over the next two years.
Punjab National Bank was established in 1895 in Lahore with founders including leaders of the Swadeshi Movement. It offers personal, social, MSME, agricultural, corporate, and international banking services as well as online and mobile banking. Its vision is to be a leading global bank with a pan-India presence providing a full range of financial products and services. Strengths include improved profitability and market share, but it faces weaknesses such as increased debt and competition from business consolidation presents a threat.
The document provides information on Non-Banking Financial Companies (NBFCs) in India. It defines NBFCs as non-banking companies that are principally engaged in financial services like loans, acquisitions, leasing etc. NBFCs are regulated by the Reserve Bank of India and are categorized based on their activities. The key differences between banks and NBFCs are that NBFCs cannot accept demand deposits or issue cheques. The document also lists and describes various types of NBFCs registered with RBI.
This document provides an overview of IDBI Bank and discusses its history, business strengths, and strategic priorities. IDBI Bank was established in 1964 as India's apex development financial institution and played a critical role in the country's industrial and economic progress. It has since transitioned to a universal bank while maintaining its leadership in corporate and infrastructure lending. The bank has a strong technology platform, high operational efficiencies, and aims to expand its retail footprint and global presence while upholding high standards of governance and social responsibility.
The document contains the mission statement, vision statement, and analyses of State Bank of India (SBI).
The mission statements focus on becoming a premier Indian financial institution committed to excellence in customer service and shareholder value, while playing a leading role in India's financial sector.
The vision statements articulate goals such as attaining world-class efficiency and professionalism, maximizing shareholder value, and providing opportunities for employee growth.
Analyses of SBI note political, economic, social, and technological factors that could impact its operations, such as government policies, economic growth trends, demographic shifts, and advancing financial technologies.
The document outlines various statutory and regulatory restrictions on loans and advances that banks can provide. It discusses restrictions on loans to banks' own directors, loans against bank shares, and restrictions on remitting debts. It also summarizes guidelines on loans to related parties, industries producing ozone-depleting substances, sensitive commodities, and various other types of loans and advances.
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.
This document discusses the merger between ICICI Bank and Bank of Rajasthan in India. Some key points:
- ICICI Bank acquired Bank of Rajasthan through an all-share deal in 2008 to expand its network in northern and western India. The deal was valued at $668 million.
- The merger was a horizontal merger that provided benefits like economies of scale and increased competition. It helped ICICI Bank penetrate the Rajasthan market and strengthen its branch network.
- While the acquisition helped ICICI Bank gain low-cost deposits and a loan portfolio, it had to address issues like employee strikes and regulatory non-compliance at Bank of Rajasthan.
- Overall, the merger proved
Yes Bank was founded in 2004 by Ashok Kapur and Rana Kapoor in India. It received several awards for its rapid growth and innovations. The bank aimed to expand significantly by 2015 with over 900 branches across India serving over 100,000 crores in advances. RBI granted Yes Bank its banking license in 2004 allowing it to commence banking operations in India.
This is presentation being presented by Shivi Aggarwal, Radhika Gupta, Sweta Agarwal and Madhusudan Partani Students of FORE School of Management ( FMG-18).
It has Guidelines of HFC, Busniess Model of HDFC
The document discusses the financial sector in India and Bajaj Finserv Lending. It notes that the Indian financial sector is large and growing rapidly. Bajaj Finserv Lending is one of the largest and most diversified non-banking financial companies in India, offering over 24 financial products across 12 categories including loans for vehicles, durables, businesses, and life insurance. It provides a brief history of Bajaj Finserv starting in 1987 and highlights its expansion into new financial products and services over time.
This document discusses various ways that human beings are wasting precious resources and provides solutions. It notes that 30 billion water bottles are used in the US each year, most of which end up in landfills. Producing bottled water uses significant oil and water resources. It recommends drinking tap water instead. The document also discusses overuse of paper and meat, both of which require substantial energy and water to produce. It suggests reducing paper usage, printing double-sided, and becoming vegetarian or reducing meat consumption. Buying local food is also recommended as it saves on transportation and supports local economies.
Jak vytvořit úspěšnou online reklamu za zlomek ceny TV kampaně?Better Marketing
Vsaďte na nové video formáty v YouTube! Nechte se inspirovat jednou z nejúspěšnějších videokampaní podzimu. Kampaní pro oděvní společnost Blažek, v hlavní roli s Leošem Marešem. Zjistěte, jak lze dosáhnout vynikajících výsledků i s relativně nízkým rozpočtem. V kostce Vám představíme nejnovější formáty reklamy a poradíme, co funguje a co naopak ne.
Asian Paints launched its Utsav brand to target the rural paint market in India, which it realized was largely untapped. Utsav contributes around 10% of Asian Paints' total paint volumes. It is positioned as an affordable option associated with festivals. The iconic mascot "Gattu" helps rural customers easily identify Utsav products. Utsav fills a price gap by being more durable than whitewash but cheaper than other paints. Through extensive distribution and promotional efforts in rural areas, Utsav became very popular and helped Asian Paints gain an early lead over competitors in the rural market.
Pustit se do „Hurá zakázek“ často vyžaduje kus odvahy. Navíc pokud se jedná o kampaň pro mladé studenty. Jak účinně pomoci klientovi a zároveň se z toho nezbláznit? Budeme mluvit o zdarech a nezdarech kampaně pro VUT. Poradíme, jak naplánovat kampaň napříč online kanály a nástroji. A konečně, také ukážeme na podrobném vyhodnocení, jak to vše dopadlo.
This UX sketch document outlines a design concept created by Sho Otani from NTT Resonant Inc. The sketch focuses on UI/UX design and includes references to concepts like IoT, IA, and Adobe XD. Overall it appears to be documenting early stage design work.
This document discusses key performance indicators (KPIs) for search engine optimization (SEO). It lists common SEO KPIs like organic traffic, keyword rankings, backlinks, and click-through rates. The document also provides contact information for the author and mentions that their company is hiring.
The document discusses the various sources of income for commercial banks in India. It states that banks earn interest income from loans and advances as well as investments. Their non-interest income comes from fees, trading profits, foreign exchange operations, and other miscellaneous sources. Recently, banks have seen slower growth in income due to lower interest rates. Their income is also increasingly coming from investments in government securities rather than loans, though this strategy could undermine their core lending functions over the long run. The document advocates for banks to focus on boosting their fee-based non-interest income through better customer service and new fee-based product offerings.
In continuation to RBI announcements dated March 27, 2020, the RBI announced additional liquidity and regulatory measures to improve the system liquidity and to improve credit spreads.
The document discusses India's debt market and reforms taken to develop it. It notes that the debt market is an important source of funds, especially for developing economies like India. It also discusses various reforms taken by the Reserve Bank of India and the government to promote liquidity, deepen the corporate bond market, and improve debt management. This includes setting up a Public Debt Management Agency, shifting regulation of government bonds from RBI to SEBI, allowing banks to hold corporate bonds long-term, and reviewing disclosure requirements. The goal is to better meet real sector needs, ensure financial stability, and develop new classes of investors in India's growing economy.
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.
The document discusses several reforms and initiatives undertaken by the Modi government to boost various sectors of the Indian economy. It notes that the government has:
1) Addressed long-standing issues like coal shortage and accelerated implementation of stalled infrastructure projects like roads, railways and power projects.
2) Passed laws to bring transparency to real estate and agriculture sectors.
3) Simplified and rationalized income tax laws while introducing new compliance schemes and expanding the tax base.
4) Taken steps to lower corporate tax rates and boost manufacturing through measures like "Make in India".
The document praises the efforts of the Modi government and allied ministers in expediting reforms, and expresses the expectations of chartered
The BJP Government is on the verge of completing a year and has now stabilised. Major economic initiatives and actions are emerging for a high growth oriented economy.
This document provides information on banking in India, including definitions, functions of commercial banks, and the evolving banking environment. It summarizes the introduction of banking regulations in India in 1949, the key functions of commercial banks, and how the banking sector has undergone structural changes due to financial reforms, increased competition, and technological advances. The emerging environment for banking is described as involving greater capital flow mobility, policy coordination, and financial market integration.
The document discusses three main topics:
1. The implementation of the Goods and Services Tax (GST) in India on July 1st, which will create a more efficient and broad tax system and base. In the near term some disruptions are expected but tax rates are unlikely to be inflationary.
2. Minutes from the RBI's June meeting suggest members are less hawkish and a possible 25 basis point rate cut in August as inflation is expected to remain below targets.
3. RBI has directed banks to initiate bankruptcy proceedings for 12 large corporate loan accounts totaling 25% of gross NPAs, which should help speed resolution while potentially impacting banks' profitability in the near term through higher provisions
“RBI Monetary Policy Analysis : Leaving no stone unturned “iciciprumf
The RBI cut the Repo rate by 75bps to 4.4%, the Reverse Repo by 90bps to 4% and the Cash Reserve Ratio (CRR) by 100bps to 3%, targeting an increase in liquidity with banks to invest in investment-grade corporate bonds, commercial papers etc. and announced macro-prudential measures such as relaxing repayments for all term loans and improving access for working capital for the next 3 months.
Enterslice help you to Incorporate NBFC Company in india.we also provide software to manage NBFC Business like NBFC Software,NBFC-ND Compilance,Money Changer Compilance,funding in NBFC and takeover of NBFC.
"The Government is keen to have sustainable long term investment driven growth rather than a short term consumption driven growth." Here's our take on the Union Budget 2019 - 20.
Portfolio Management Services (PMS) allow individual investors to have a professionally managed portfolio tailored to their specific investment goals. When investing in PMS, investors own individual securities rather than units of a fund. PMS accounts require a minimum investment of Rs. 5 lacs and charge fees including management charges of 1-3% and sometimes performance fees if returns exceed a threshold. Registered PMS providers in India include Geojit BNP Paribas, ICICI Prudential, and Motilal Oswal.
This document discusses banking and non-banking financial institutions. It provides information on the types of banking institutions such as commercial banks, savings and loans associations, and credit unions. It also discusses non-banking financial institutions like insurance companies, pension funds, and hedge funds. The document further describes banking and non-banking financial institutions, their regulations, types, and differences between public and private sector banks.
RESTRUCTURING OF MSMEs & CREDIT GUARANTEE SCHEME FOR SUBORDINATE DEBT (CGSSD)Ajayan Kavungal Anat
This is a brief presentation to give insights into the
new guidelines issued by Reserve Bank of India for
‘Restructuring of MSMEs’ and also on Subordinate
Debt for Stressed MSMEs’
INCOME DECLARATION SCHEME A time to come cleanNeha Sharma
The IDS scheme announced by the government is open till 30th September, 2016. It is an important opportunity and the government has committed to not to seek any details or source of money earned and assets created once disclosed in terms of the scheme.
• RBI reduced the Repo rate by 40 bps to 4.00%
• Reverse Repo rate accordingly is adjusted to 3.35%
• Marginal Standing Facility (MSF) rate and the Bank rate accordingly is
adjusted to 4.25%
• Cash Reserve Ratio (CRR) remains unchanged at 3%
• Statutory Liquidity Ratio (SLR) stands adjusted to 18.00%
This document discusses financial inclusion of street vendors through microenterprise promotion and microloans. It outlines challenges vendors face in accessing credit due to lack of documentation and collateral. Solutions proposed include financial literacy programs, vendor licensing, and innovative digital lending processes. The State Bank of India has several initiatives to promote lending under India's Pradhan Mantri Mudra Yojana program, including collateral-free loans up to Rs. 10 lacs and credit guarantee coverage. SBI has disbursed over Rs. 5.28 lakh crore to more than 11.96 crore beneficiaries through this program over the past 3 years.
Whereas, Commercial Bank of Ethiopia (CBE) has changed its strategic direction to customer centricity with the aim of making savings and credit products more customer centric and offering better customer value propositions;
Whereas, it has become necessary to improve customer experience by digitizing micro business segment through Micro loan products;
Whereas, Commercial bank of Ethiopia intends to diversify its credit portfolio mix in terms of tenure through expanding the short-term financing to be availed to micro business segments;
Whereas, it is necessary to set eligibility requirements, terms and conditions of loan products and services to the micro business segment in view of risk involved and customer’s demand;
Whereas, it is necessary to attract the underserved part of the society and enhance financial inclusion with low-cost financial services availed through mobile money platform;
Whereas, the majority of Micro Enterprises do not fit the loan terms and conditions of Micro Finance Institutions and Banks due to they are high in number and lacked collateral. And CBE has established Micro Credit Department to properly address loan demand from Micro Enterprises.
NOW, therefore; it becomes important to develop and introduce the “Micro Saving and Loan Policy”.
1.2. Short Title
This policy may be cited as “Micro Saving and Loan (MSL) Policy of the Commercial Bank of Ethiopia”;
1.3. Definitions of Terms
“Board” means supervisory Board of the Bank formed in accordance with Article 10 (2) and 12 of Public Enterprises Proclamation No 25/1992.
“Credit Scoring” means judging/evaluating the creditworthiness of a customer based on basic characteristics and past experiences with credit.
“Digital Lending” means a remote and automated lending process, largely by use of seamless digital technologies for customer acquisition, credit assessment, loan approval, disbursement, recovery, and associated customer services.
“Micro Saving and Loan (MSL)” means a digital based saving and lending platform for customers. Here, Under MSL, the “Micro Saving” is a saving platform that allows customers to save money on a digital platform (using their mobile phones) without visiting branches and filling forms. “Micro Loan” is uncollateralized(Credit Scoring Based) digital lending product which is instant, automated, and remote loan offered through mobile phones for CBE Birr customers;
“Micro saving and Loan” means a small amount of loan availed to micro businesses and individuals for the purpose of supporting businesses and consumption.
“MSL Policy” means a general framework approved by the board that spells out and guides the bank’s MSL strategic directions, processes or activities and credit /financing decision.
“National Bank of Ethiopia (NBE)” means a supervising authority of banks, established in accordance with the council of ministers’ proclamation number 591/2008;
“Loan Pricing” means setting interest rate, fees, commission and others to be charged by the Bank
This document discusses financial inclusion of street vendors through microenterprise promotion and microloans. It notes that street vendors rely on personal savings and high-interest loans due to a lack of collateral needed for institutional loans. Challenges to their financial inclusion include lack of documentation, financial literacy, and regular income. Prospective solutions proposed include developing savings habits, financial literacy training, and providing legal status and licensing. The document outlines various microloan programs from the government and SBI, including Mudra loans of up to Rs. 10 lacs available from SBI that are collateral-free for business purposes. SBI has disbursed over Rs. 5.28 lakh crore to 11.96 crore beneficiaries through
Abhay Bhutada, the Managing Director of Poonawalla Fincorp Limited, is an accomplished leader with over 15 years of experience in commercial and retail lending. A Qualified Chartered Accountant, he has been pivotal in leveraging technology to enhance financial services. Starting his career at Bank of India, he later founded TAB Capital Limited and co-founded Poonawalla Finance Private Limited, emphasizing digital lending. Under his leadership, Poonawalla Fincorp achieved a 'AAA' credit rating, integrating acquisitions and emphasizing corporate governance. Actively involved in industry forums and CSR initiatives, Abhay has been recognized with awards like "Young Entrepreneur of India 2017" and "40 under 40 Most Influential Leader for 2020-21." Personally, he values mindfulness, enjoys gardening, yoga, and sees every day as an opportunity for growth and improvement.
"Does Foreign Direct Investment Negatively Affect Preservation of Culture in the Global South? Case Studies in Thailand and Cambodia."
Do elements of globalization, such as Foreign Direct Investment (FDI), negatively affect the ability of countries in the Global South to preserve their culture? This research aims to answer this question by employing a cross-sectional comparative case study analysis utilizing methods of difference. Thailand and Cambodia are compared as they are in the same region and have a similar culture. The metric of difference between Thailand and Cambodia is their ability to preserve their culture. This ability is operationalized by their respective attitudes towards FDI; Thailand imposes stringent regulations and limitations on FDI while Cambodia does not hesitate to accept most FDI and imposes fewer limitations. The evidence from this study suggests that FDI from globally influential countries with high gross domestic products (GDPs) (e.g. China, U.S.) challenges the ability of countries with lower GDPs (e.g. Cambodia) to protect their culture. Furthermore, the ability, or lack thereof, of the receiving countries to protect their culture is amplified by the existence and implementation of restrictive FDI policies imposed by their governments.
My study abroad in Bali, Indonesia, inspired this research topic as I noticed how globalization is changing the culture of its people. I learned their language and way of life which helped me understand the beauty and importance of cultural preservation. I believe we could all benefit from learning new perspectives as they could help us ideate solutions to contemporary issues and empathize with others.
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1. INDIVIDUAL ASSIGNMENT ON FINANCIAL SERVICES
SUBMITTED ON: 2ND SEPTEMBER, 2014
SUBMITTED TO: SUBMITTED BY:
PROF. SANJAY SHANBHAG MINAL GARG (2013153)
2. Q1. What does the government of India hope to achieve with the new draft RBI guidelines
for the wealth management industry? What are the reasons behind introduction of the
new regulations?
SEBI, RBI, IRDA, FMC & PFDRA is giving counsel to the Government of India for making
crucial amendments in the respective Acts and for creating definite provisions for regulating
wealth management as well as the investment advisers. The Acts are being revised so as to
introduce certain investment advisers’ regulations. The government came into play for these
after an exposé of a 400 crore rupees fraud which was ensued at Citibank’s Gurgaon branch,
where a relationship lured clients in a fictitious investment scheme guaranteeing a return of 2-
3% per month. The new regulations, along with a complaint redressal mechanism, will benefit
the investors and will lead to an orderly development of the wealth management and investment
advisory industry.
Owing to the current scenario, if a fraud happens, there are no concrete guidelines to
take action against the conspirators involved. By powering the new guidelines, banks will act
as an advisory as they won’t be having the direct power over the investor’s money. They will
only be able to charge money so as to give advisory benefits to the investors.
In these new guidelines, the bank will be prohibited from offering discretionary wealth
management services to their customers, whereas a portfolio manager will independently
manage the funds for the individual customers. The discretionary portfolio management service
will include portfolios broadly directed by the customer, or those wherein the customer gives
a negative list of investment products at the time of opening the account so that the fund
manager ensures that such investment products are not included in the portfolio.
In case of mandatory services, banks are working through different departments or
divisions or a subsidiary with the permission of the RBI. Reserve Bank of India allows these
banks to work independent subsidiary. RBI made a norm in which such a subsidiary or SIDD
require to be registered with market regulator Securities and Exchange Board of India (SEBI)
and RBI also follow with SEBI rule and regulation and also follow the policies of SEBI and
also provide these services, including the code of conduct, if any.
The Central Bank said, there should be a distant relationship between the bank and the
subsidiary if the wealth management services is offered, RBI has also stated that the marketing
or sales of third party product is the area where bank employees should involve in but products
should not be given any direct incentives in cash or non-cash form linked to their performance
to avoid mis-selling (practice of a salesperson misrepresenting or misleading) of products.
1 | FINANCIAL SERVICE
3. Q2. Why did SEBI regulator CB Bhave ban entry loads on mutual funds? What were the
consequences of ban? What were SEBI regulator Sinha’s goals and what actions did he
take to aid the struggling mutual fund industry? How did this effect the competitiveness
of mutual funds vis-à-vis other financial products? Why?
CB Bhave banned the 250 bps “entry loads” that distributors charged the investors. Distributors
had traditionally driven the growth of the industry, as investors had to be weaned off a diet of
guaranteed returns and fixed deposits to accept volatility and risk for better long term return.
So, mutual funds had to be pushed and generous commissions were seen as vital incentives.
The abolition of entry loads saw a collapse in a key component of the distribution
channel, with the number of active distributors falling drastically from around 90,000 to just
10,000. Mutual funds became a high net worth investment vehicle which was earlier considered
to be a common man’s product. AMCs responded by paying upfront fees up to 100 bps from
their own pockets which also turned out to be an unfeasible option in the times when fresh
investments were almost completely neutralized by redemptions.
Sinha’s goals were primarily based on three aspects:
Increase penetration of mutual funds
Encourage persistency among investors
Optimize disclosure standards
To bring the goals in effect following steps were taken:
Entry load was removed.
A 20 bps rise in expense ratio
A 30 bps rise in expense ratio for small towns
Service tax to be borne directly by investors
No sub-limits within expense ratio
Lower expense fee for direct investors
Transactions up to 20,000 rupees allowed in cash
Product labelling
Sinha was looking to make the distributor’s returns lucrative by keeping the
client’s investments for a long term. He discouraged the churn factor by mandating the exit
load charged to customers. SEBI created an alternative distribution channel in the form of direct
sales by AMCs which worked on a no commission basis. SEBI was thereby looking to create
different share classes. This, in turn helped in expansion of the industry into India’s tier-2 and
tier-3 cities in order to tap the retail investment.
2 | FINANCIAL SERVICE
4. This move made the mutual funds industry much more competitive compared to other
financial products. But due to the increase in expense ratio, ULIPs became a much more
lucrative option than the mutual funds. The expense ratio increase by 60 bps gave the ULIPs a
much needed edge over the mutual funds. Long term investors have started to shift from mutual
funds due to this move. Some of the long term investors have even started opting for equity
shares because of the extra costs attached with these mutual funds and thus, investors are
looking to take complete control over their investments which is not possible in the case of
mutual funds.
Q3. What were the effects of higher long term capital gains tax and the new holding
period requirement on debt mutual funds? What are the goals of this new tax policy?
How does it impact FMPS?
The Finance minister of India Mr. Arun Jaitley presented the union budget 2014-15 on July 11,
which changes many of the financial/facial policies and its changes the way money flow in the
Indian economy its demand and supply.
One of this changes which effected the long term capital investment and gain plan with
respect to mutual funds is that the tax on debt mutual fund will be increased by 20% from 10%
earlier and the holding period for the eligibility of long term would be extended to 36 months
(3 years) rather than 12 months (1 year) earlier.
This change can result in to situation:
Investors will invest in bank saving deposit as it is more secure, or
The investors will invest the money for long term mutual funds that is 36 months to get
tax benefit and long term gains.
Let’s now discuss this to situation in detail:
Note: (The date of this policies to come into action is not fixed as this is not declared)
1. Investors will invest in bank saving deposit as it is more secure:
This situation can arise because the investment in bank deposit are generally fixed and more
secure as compare to any other investment plan. More over mutual divide the risk which
reduces the risk but it’s still related to the market condition. This is the reason why every mutual
funds company says the linings “Mutual funds are subjected to market risk, please read the
offer document carefully before investing”. So now it when both the tax rate as well as holding
period are not in favor of long term investment people can fell more profitable and secure in
investing in banks and other fixed investment offers.
3 | FINANCIAL SERVICE
5. But this is one part of change investment plan, the next plan is in favor of mutual funds which
is explained below:
2. The investors will invest the money for long term mutual funds that is 36 months
to get tax benefit and long term gains:
Now the question is how the increase in tax rate may still result in favor of long term investment
like mutual funds, the answer is due to beneficial tax rate. This can be explained with the
example: suppose Rs 100 is invested in the units of debt funds, which is sold in future for Rs
120 after a year. Assuming the inflation rate is 8%, the taxable gain would be adjusted down
to Rs 4, since the cost of investment of Rs 100 would be indexed to Rs 116, the making the
taxable gain lower. Appling the beneficial tax rate of 20% on Rs 4, the tax outflow would be
just 80 paisa. On the other hand if a person is investing in fixed bank deposit Rs 100 and assume
the interest generated out of it is Rs 10 @ 10% annual income. Let us again assume the inflation
rate is 8% then the taxable amount should be 40 paisa [(10-100*8%)*20%]. But it is not so the
taxable amount will be 10*20% that is Rs 2.
Its look like the goal of new tax rate is to bring parity between different instruments.
As the tax rate is increases from 10% to 20% and the period to become an investment long term
is also increases from 1 year to 3 years in should result in huge outflow from debt mutual funds
and the amount will be investment in some other part of economy. This will result in balancing
the investment plan in different forms.
One the other hand the increase in long term capital gain tax for debt funding would
encourage investors to come in longer term saving. Last year bond yields rises as foreign
investor started heavily selling Indian debts, but this year after the budget announcement,
mutual funds have sold as much as Rs 4500 crore of debt in two days. This has been the highest
amount sold on two consecutive days since 31 July 2013.
This changes can result in increase in investment in FMPs (Fixed maturity plans), as
the risk involve in such type of plan are zero, no what is and what will be the market condition.
For such type of plan investor did not need to worry whether to invest in short term plans or
long term plans. But one of the disadvantage of such type of plans is the date of maturity is
already decided earlier and hence the investors need to what for the maturity period in order to
get benefit out of it.
This situation in now applicable to the mutual funds also because the after the new
union budget any investment can be termed as long term unless as until it reaches the 36 month
maturity. It means now in mutual also investors has to wait for 36 months in order to get long
term capital gain and also the tax benefit out of it.
4 | FINANCIAL SERVICE
6. There for investors who are not willing to take much risk can go for FMPs and the
persons looking for huge capital gains will take the long term risk and invest in mutual funds.
But in this war between the two one thing is sure that the investment in short term capital gain
will reduce which will result a better and controlled flow of money in the market. The
government market regulators now can able to control the market more easily and effectively.
Q4 (a) Why does private equity continue to struggle since 2010?
In India, Private equity firms are finding it very difficult to make money on their old
investments made during the boom period between 2006 and 2009. Because of the slowdown
in economy, many of the companies that private equity firms own have not grown as the firms
had hoped. Even the number of buyers for these companies are not enough. Which in return
making it very difficult for the private equity firms to make profits out of their investments.
In 2013, Indian companies managed to raise only $260 million through initial-public
offerings, the lowest amount of new equity raised in 12 years. Just three companies--
Mumbai-based Internet search firm Just Dial Ltd., Chennai-based Repco Home Finance Ltd.
and Delhi-based department store Company V-Mart Retail Ltd.--raised two-thirds of the new
equity issued last year. India’s economic growth is the prime reason behind the struggle of
private equity since 2010.Many investors are holding off allocating fresh money to Indian
capital markets until the federal elections, which are due before the end of May.
Recent figures suggest a surge in Indian private equity: funds have invested about
$1.2 billion in India so far in 2010, compared with $714 million in all of 2009. Average deal
size has also risen sharply, to over $77 million so far in 2010, from less than half that last year.
This does not, however, mean that India has become more hospitable towards private equity
investment.
The other reasons behind the struggle are slow-moving legal system and a business
culture which doesn’t place much value on outsiders’ opinions or expertise. A more likely
reason for the recent swell in activity is stifled pressure to do deals. India focused funds raised
$19.2 billion over the last 3 years, according to the Centre for Asia Private Equity. Pan-Asian
funds raised another $37.5 billion in the same period. Which depicts that a substantial sum of
capital is left to chase after deals that, on average, are far smaller than in the rest of Asia.
The results will be: returns will shrink as managers compete for business. More
specifically, funds eager to strike deals risk paying too high a price. Which means that India
still have to struggle.
5 | FINANCIAL SERVICE
7. Q4 (b) What are some of the steps that some players are adopting to make successful
exits?
These are some of the exit modes for the private equity funded companies:
IPO exit:
Private equity investments would be exited mainly through IPOs. Therefore IPOs accounted
for a mere 8 per cent of the exits by private equity investors between January 2005 and
September 2011. For example: Bharti, Shoppers Stop, India Info line, Info tech and PVR.
Private transactions exit:
Exit through private transactions is also an option. It receives less attention but delivers strong
results. Purchasers in private transactions include domestic and international, financial and
strategic investors. For example: ICICI Venture’s stake sale in Metropolis to Warburg Pincus,
Motilal Oswal Private Equity’s stake sale in Parag Milk Foods to IDFC Private Equity stake
sale in Punjab Tractors to Mahindra & Mahindra.
Finding strategic investors is also a way which is comparatively very easy. Because
it brings in comfort about the company’s corporate governance, systems, processes and
information quality. There is also the possibility that in a few cases, the promoters may exit
along with the fund to a strategic buyer in a private transaction.
Private equity investors pulled out $108 million from 12 deals in the second quarter
of this year, compared to exits of $954 million from 18 deals in the April to June period last
year.
About $50 million of exits came via sales in the public capital markets, rest were
through “strategic” sales, such as an acquisition by another firm in the same business, or so-called
secondary sales, in which one private equity firm sells to another private equity firm.
One reason for the lower value of exits was the apprehension among investors about
that they might be taxed on their gains. Earlier this year, the Indian government introduced new
anti-avoidance tax rules, which could tax profits made by investors based in tax havens such
as Mauritius and others.
Q4 (c) What is the industry’s new strategy to fight slow growth?
After facing the low growth rates in the recent past, PE firms have changed the rules of the
investment game. The traditional model of silent investor, no longer works for them. To ensure
high returns and profitable exits. They are playing a more nuanced role in the companies they
have a stake in. they have adopted transformational approach. The rules of the same were:
6 | FINANCIAL SERVICE
8. Be aggressive:
Investors learnt that passive investments which give returns in the long term and require
minimal involvement are no more attractive. Because it does not give the control over company
and even do not give the power to take financial decisions. So they have adopted a more
aggressive approach to earn profits as well as powers.
Build sector competence:
PE firms are shoring up their expertise in specific sectors. Most investors want to focus on IT,
pharmaceuticals, consumer goods and financial services. Because ‘An investor needs to expand
its universe of opportunities. Valuations are too high for existing good businesses, and starting
from ground zero does make sense sometimes. Teaming up with international chains even
before they enter a new market is one way to ‘expand the universe of opportunity’. Also, hiring
outside experts is always an option because they are realizing that unless they bring operational
expertise they can’t add value.
Look at alternate investments:
Innovation is not just restricted to sectors or deals; PE firms are fine-tuning their fund themes
too. They are finding opportunities in tier-2 cities and also considering the scope in public
equity transactions. Meanwhile, some PE firms are taking a relatively new funding approach.
Have a safe net:
With exits getting delayed, a note of discord often sets among investors and promoters over
alleged wilful deceit, non-disclosures and the non-honoring of shareholder agreements. This is
where the new concept of insuring PE deals is gaining ground. Such insurance covers ne known
as Representations and Warranties (R&W) in legal terms. These ‘reps and warranties’ options
ensure a clean exit for the investor. Typically, such covers are bought by the buyer or the seller
in a transaction. In the current context, they are mostly being considered by the buyers (PE
firms). Investors have also started planning about exits at the time of signing the deal, and not
as they reach the end of the investment period (which is usually five years; in India, this may
extend to even to ten years.)
Find profit in debt:
There’s a consensus that the next big opportunity lies in the debt and structured deals space
some investors are building flexibility to structure deals that will cater to the requirements of
Indian promoters through equity, debt, mezzanine (a hybrid of debt and equity) or convertible
securities.
7 | FINANCIAL SERVICE
9. The road ahead:
The tough economic cycle of the last few years has been a learning experience for PE firms in
terms of funding strategies, transaction structures, investor protection rights and level of
operational controls, The Indian PE industry is now “better equipped to generate returns going
ahead”.
Consider the demographic picture: Nearly 50 percent of the country’s 1.2 billion citizens
are below the age of 25, and 65 percent are under 35. The SEC B and SEC C population is
growing, and if the country manages even a 5 percent growth rate, PEs will reap returns. PE
fund managers believe that over the next 4-5 years, rural consumption will increase.
Investors are confident of a revival in the investment cycle, and expect the PE industry to
contribute to economic growth on a much larger scale. Over the next decade, deals in both size
and nature will start to resemble those in developed nations: They have the potential to reach
$40 billion in 2025.
8 | FINANCIAL SERVICE