Credit crisis is easing for India’s safest corporate borrowers
5 years ago

Credit crisis is easing for India’s safest corporate borrowers

Live Mint  

India’s credit crisis appears to be winding down for the safest borrowers, but it’s hardly time to celebrate as weaker firms still struggle. Policy makers have been fighting to prevent debt markets from seizing up since the shock collapse of shadow bank IL&FS Group last year. They can take some cheer in this: spreads on top-rated corporate bonds have dropped back near where they were when the crisis began in September last year. Concerns about governance have also taken a toll, following incidents at companies including Karvy Stock Broking Ltd. and Dewan Housing Finance Corp. India’s Finance Minister Nirmala Sitharaman has announced a number of measures in recent months to support the economy: corporate tax cuts, a special real-estate fund, bank mergers and a privatization drive.

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India Inc is losing appetite for offshore debt
2 years, 6 months ago

India Inc is losing appetite for offshore debt

Live Mint  

The pandemic-era overseas borrowing boom by Indian companies has started to slow as interest rates rise, the currency weakens, and the appetite for emerging market bonds diminishes. Measures announced by the Reserve Bank of India easing overseas borrowings by companies, including doubling the annual limit under the automatic route to $1.5 billion and raising the all-in cost cap for foreign …

Corporate India needs a proactive mindset for debt resolution
3 years ago

Corporate India needs a proactive mindset for debt resolution

Live Mint  

Over the years, concerted efforts have been made to determine and resolve non-performing assets of banks and financial institutions in our country. As per the RBI’s March Financial Stability Report, gross NPAs are expected to be slightly elevated at around 11.22% of overall credit deployment by March 2022 for all scheduled commercial banks. In an effort to trim NPAs, a …

A top mutual fund manager is turning bullish on riskier Indian debt
3 years, 11 months ago

A top mutual fund manager is turning bullish on riskier Indian debt

Live Mint  

One of India’s top fund managers is turning bullish on higher-yielding rupee corporate bonds based on the view that the nation’s recovery will outpace the consensus estimate of economists. Maneesh Dangi, who oversees $25 billion of debt assets at Aditya Birla Sun Life AMC Ltd., expects India’s economy to expand by 13% in the fiscal year starting April, compared with …

Fresh crisis looms for NBFCs after fund shuts
4 years, 7 months ago

Fresh crisis looms for NBFCs after fund shuts

Live Mint  

India’s shadow lenders are facing fresh turmoil after asset manager Franklin Templeton shut funds late last month, prompting other large investors to dump the financiers’ debt. Three other gauges of the sector’s health compiled by Bloomberg showed no improvement last month, with a measure of shares of 20 financial firms and other companies staying depressed. Government measures To help cash-starved …

A battered IndusInd Bank lays bare RBI’s financial stability challenge
4 years, 9 months ago

A battered IndusInd Bank lays bare RBI’s financial stability challenge

Live Mint  

India’s private sector banks are facing their toughest test yet with a virus outbreak putting their earnings at risk, even as the collapse of a peer bank raises questions on deposits. The bank’s stock dropped 15% on Tuesday after the lender revealed in an investor call that it has lost 10-11% of its deposits since Yes Bank Ltd crumbled earlier …

Prolonged slide in financial health of Indian firms comes to end
4 years, 10 months ago

Prolonged slide in financial health of Indian firms comes to end

Live Mint  

The lingering effects of India’s shadow banking crisis and slowing economy have left companies’ financial health around the worst levels in years, but one gauge shows the prolonged deterioration has at least halted for now. Care Ratings Debt Quality Index, which tracks credit metrics of 1,604 rated firms on a scale of 100, inched up 0.04 points to 88.02 in …

Drop in borrowing costs shows India NBFC crisis may ease
4 years, 11 months ago

Drop in borrowing costs shows India NBFC crisis may ease

Live Mint  

Borrowing costs for India’s top-rated shadow financiers declined last month, indicating that the nation’s prolonged credit crisis may be seeing some improvement. Premiums that investors seek to buy AAA rated five-year bonds of non-bank lenders over government notes with similar maturities narrowed to a 16-month low in January, helping a gauge measuring bond spreads to strengthen. Supporting these financiers is …

Latest headache for Indian firms: Sluggish bond market
4 years, 11 months ago

Latest headache for Indian firms: Sluggish bond market

Live Mint  

India needs a bigger bond market now more than ever, to help get funds to cash-strapped companies cut off from their shadow lenders by a crisis in that sector. Rupee corporate bond issuance seen increasing little in 2020 A stalling in issuance also undercuts attempts by Finance Minister Nirmala Sitharaman and predecessors to expand India’s corporate bond market to better …

NBFC crisis far from over: Revitalizing shadow bank industry is a must
4 years, 11 months ago

NBFC crisis far from over: Revitalizing shadow bank industry is a must

Live Mint  

India’s shadow banks, which lend to everyone from teashop merchants to property tycoons, get a mixed bill of health in Bloomberg’s latest check. Revitalization of the industry, whose woes mounted last year when major mortgage lender Dewan Housing Finance Corp. missed repayments, is key to helping staunch a further slowdown in the nation’s economy. The Bloomberg check-up of the sector’s …

IIFL bets on India’s beleaguered financial sector
5 years ago

IIFL bets on India’s beleaguered financial sector

Live Mint  

IIFL Asset Management Ltd., which oversees $3.3 billion in assets, is set to expand on a strategy of investing in the most stressed area of India’s economy: the financial services industry. The firm aims to eventually attract $1 billion from funds globally to invest in the nation’s privately owned banks, shadow lenders, insurance companies, asset management firms, stock exchanges and …

Rashesh Shah of Edelweiss expects credit markets to return to normalcy by year-end
5 years, 3 months ago

Rashesh Shah of Edelweiss expects credit markets to return to normalcy by year-end

Live Mint  

One of India’s top NBFCs by assets is betting that central bank easing will bring an end to the nation’s prolonged credit crisis, even as fresh strains in the sector emerged this week. “Interest-rate cuts and infusion of liquidity by the RBI will give a boost to the bond markets and aid the credit market to return to normalcy by …

Fund manager who predicted India credit crunch says pockets of risks remain
5 years, 6 months ago

Fund manager who predicted India credit crunch says pockets of risks remain

Live Mint  

A fund manager who predicted India’s credit crunch months before it got serious last year said that “pockets of risk” remain that could reignite investor concern. While the worst of the country’s liquidity shortage and soaring funding costs appears to have subsided for now, a string of corporate defaults suggests that those woes could come back, according to Suyash Choudhary, …

’India is a very self-correcting country’: Rashesh Shah
5 years, 9 months ago

’India is a very self-correcting country’: Rashesh Shah

Live Mint  

Mumbai: From a small office in downtown Mumbai to an imposing steel-and-glass building overlooking the city’s Bandra-Kurla Complex financial hub, Rashesh Shah, 55, has come a long way. Shah, armed with an MBA from India’s top business school and expertise gleaned from his time at one of the nation’s largest banks, partnered with a colleague in 1995 to set up …

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