Best printers for Home

Best Mixer Grinder

Best wired Earphones

Best 43 Inch TV in India

Best Wi Fi Routers

Best Home Theatre in India

Smart Watch under 5000

Best Laptops for Education

Best Laptop for Students

India's corporate credit landscape is showing positive trends that are expected to persist, according to a recent report by <keyword id="19990557" type="General" weightage="20" keywordseo="SP-Global" source="keywords" meta.keywordsubtype="org" meta.entityname="S&amp;P Global" meta.hostid="261" meta.entityid="S&amp;P Global">S&amp;P Global</keyword>.<br /><br />The report highlights strengthening credit quality across various sectors, driven by enhanced <keyword id="20994126" type="General" weightage="20" keywordseo="financial-discipline" source="keywords">financial discipline</keyword>, broad-based <keyword id="19899597" type="General" weightage="20" keywordseo="earnings-growth" source="keywords">earnings growth</keyword>, and robust liquidity profiles.<br /><br />S&amp;P Global's analysis reveals that one in three ratings within India now shows a positive outlook, marking a significant shift after three years of net positive rating actions. The report indicates that corporate India has built greater resilience against downside risks, reflecting a more stable and robust credit environment.<br /><br />However, corporate leverage in India is expected to decline marginally, even as capital expenditure (capex) rises by 30% compared to pre-pandemic levels. This improvement is attributed to more entrenched financial discipline among companies, which have managed to balance rising capex with prudent financial management.<br /><br />The report forecasts a 10% growth in aggregate EBITDA in 2024, driven by strong performance in sectors such as telecommunications, airports, commodities, and chemicals. This broad-based earnings growth underscores the resilience of corporate India and its ability to generate substantial cash flows despite a challenging global environment.<br /><br />Indian companies are benefiting from strong onshore liquidity and the absence of large debt maturities, which support their liquidity profiles. The resilience of these companies to foreign exchange and interest rate volatility further strengthens their liquidity positions.<br /><br />Corporate India's positive credit trends are closely linked to broader economic drivers such as GDP growth. Increased consumer spending is bolstering sectors like airports, automobiles, and telecommunications. Meanwhile, infrastructure investment is significantly boosting the commodities, utilities, and commercial automotive sectors.<br /><br />S&amp;P Global notes that both infrastructure and non-infrastructure sectors are experiencing reductions in leverage, with absolute debt reduction more pronounced in non-infrastructure sectors. However, infrastructure entities are slower in reducing debt due to higher capex, particularly in energy transition initiatives.<br /><br />Operating cash flows across sectors are outpacing capex, supporting further deleveraging. While capex intensity remains higher in infrastructure sectors, the neutral free operating cash flow is seen as a positive trend, indicating that companies are managing their capital expenditures efficiently while maintaining cash flows.<br /><br />The transportation infrastructure sector is benefiting from traffic growth and tariff increases, with rising cargo volumes supporting port revenues and improved operating efficiencies boosting margins. Airports are also experiencing higher traffic levels and tariff increases, contributing to better operating cash flows and overall credit quality.<br /><br />In the utilities sector, rising demand and new capacity are driving earnings growth, though capex remains high, particularly for energy transition projects.<br /><br />The steel sector is expected to see increased operating cash flow due to falling input prices and new capacity additions.<br /><br />Earnings in the oil and gas sector are expected to remain stable, supported by a favorable price outlook and consistent production levels.<br /><br />The telecom sector is also on a path to significant deleveraging, with capex expected to moderate following the 5G auctions in 2023.<br /><br />The auto sector is witnessing sustained operating performance as volumes stabilize after the supply chain disruptions of 2022. S&amp;P Global notes that debt levels in the auto sector are expected to remain low following sharp deleveraging, while normalized growth in auto sales and stable margins support the sector's positive outlook.<br /><br />In the chemicals sector, falling input costs and stabilized product prices are expected to drive earnings recovery following a downturn in 2023. Improved signals show a broader trend of recovery across various industrial sectors in India.<br /><br />S&amp;P Global concludes that with the highest proportion of positive credit outlooks in the region, India's corporate sector is well-positioned for continued <keyword id="22758432" type="General" weightage="20" keywordseo="credit-quality-improvement" source="keywords">credit quality improvement</keyword>.<br /><br /><b>SEE ALSO:<a href="https://www.businessinsider.in/stock-market/webstories/saraswati-saree-depot-ipo-price-band-to-risk-factors-all-you-need-to-know/slidelist/112457330.cms" target="_blank"></a></b><br /><br /> <b><a href="https://www.businessinsider.in/stock-market/webstories/saraswati-saree-depot-ipo-price-band-to-risk-factors-all-you-need-to-know/slidelist/112457330.cms" target="_blank">Saraswati Saree Depot IPO – Price band to risk factors, all you need to know</a><a href="https://www.businessinsider.in/tech/news/indias-wearables-market-decline-for-the-first-time-as-smartwatch-shipments-fall/articleshow/112397246.cms" target="_blank"></a></b><br /><br /> <b><a href="https://www.businessinsider.in/tech/news/indias-wearables-market-decline-for-the-first-time-as-smartwatch-shipments-fall/articleshow/112397246.cms" target="_blank">India’s wearables market decline for the first time as smartwatch shipments fall</a><a href="https://www.businessinsider.in/business/news/ola-wants-to-re-enter-the-quick-commerce-business-to-take-on-blinkit-and-swiggy-instamart/articleshow/112364583.cms" target="_blank"></a></b><br /><br /> <b><a href="https://www.businessinsider.in/business/news/ola-wants-to-re-enter-the-quick-commerce-business-to-take-on-blinkit-and-swiggy-instamart/articleshow/112364583.cms" target="_blank">Ola wants to re-enter the quick commerce business to take on Blinkit and Swiggy Instamart</a></b><br />

India's corporate credit quality is getting stronger: S&P Global

<ul><li><strong>The credit ratio is in line with the positive credit quality outlook <keyword id="6359483" type="General" weightage="20" keywordseo="crisil" source="Orion">CRISIL</keyword> Ratings had articulated earlier. </strong></li><li><strong>Credit ratings on nearly 80 per cent of the CRISIL Ratings portfolio was reaffirmed. </strong></li><li><strong>The performance of upgraded companies improved significantly over the past three fiscals, despite the pandemic. </strong></li></ul><br />Debt light balance sheets, domestic demand and better cash flows has resulted in higher credit ratio during the first half of FY23, said CRISIL Ratings.<br /><br />According to CRISIL Ratings the corporate credit ratio (upgrades vs downgrades) continues to be high -- at 5.52 times in the first half of this fiscal (H1-FY23) - underscoring ongoing broad-based improvement in India Inc's credit quality. The credit ratio was 5.04 times in the second half of the last fiscal (H2-FY22).<br /><br />Three reasons stand out: 1) strengthening domestic demand, with the economy expected to grow 7.3 % this fiscal; 2) higher realisations leading to better cash flows; and 3) continuation of debt-light balance sheets as capex remains low, CRISIL Ratings said.<br /><br />The credit ratio is in line with the positive credit quality outlook CRISIL Ratings had articulated earlier - that upgrades will far outnumber downgrades through this fiscal.<br /><br />Credit ratings on nearly 80 % of the CRISIL Ratings portfolio was reaffirmed, or there was no change during H1-FY23.<br /><br />For the rest of the portfolio, what has changed is the upgrade rate, which increased to 16.70 %, while the downgrade rate was flattish at 3.02 %. In all, there were 569 upgrades and 103 downgrades.<br /><br />According to the credit rating agency, the performance of upgraded companies improved significantly over the past three fiscals despite severe pandemic-related disruptions.<br /><br />"Around 35 % of all upgrades were from the infrastructure sector (including large realty players). Infrastructure sector is in a unique position of largely being a domestic story and generally decoupled from the global headwinds. Here, upgrades were driven by improved operating cash flows, completion of crucial project milestones and equity infusion. Over the last few years increasing share of central counterparties in infra projects has led to more predictable payment cycles providing additional comfort to credit quality," said <keyword id="909587" type="General" weightage="80" keywordseo="gurpreet-chhatwal" source="Orion">Gurpreet Chhatwal</keyword>, Managing Director.<br /><br />SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/markets-fall-in-early-trade-on-weak-global-trends-fii-outflows/articleshow/94612214.cms">Markets fall in early trade on weak global trends, FII outflows</a><br /><a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/finance/news/rupee-falls-38-paise-to-81-78-against-us-dollar/articleshow/94611224.cms">Rupee falls 38 paise to 81.78 against US dollar</a><br /><a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/news/the-e-auction-closing-date-of-1200-gifts-given-to-pm-modi-extended/articleshow/94610736.cms">The e-auction closing date of 1,200 gifts given to PM Modi, extended</a>

Indian corporate credit quality remains strong in H1 of FY23: CRISIL

<p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"><a href="http://markets.businessinsider.com/stock/SNAP-Quote"></a></div><p></p></div></div>Snap Inc. has "elevated credit risk," based on a score estimated by S&amp;P Global Market Intelligence.</p><p>The Snapchat parent offered its <a href="http://www.businessinsider.com/snap-snapchat-ipo-2017-3">shares to the public</a> on March 2 and is not issuing corporate bonds as of yet. Still, S&amp;P examined its credit quality relative to where a few other tech companies were at their initial public offerings, and what the score may look like in the future. </p><p>"Snap's credit score denotes elevated credit risk, more specifically, it would equate to a 4.45% observed default rate over a one year period, or nearly a 1 in 20 occurrence of default," a report released on Friday said.</p><p>"To put that into perspective, Snap's credit score is more risky than the median level of risk in the Application Software industry, which is 'b+.'" </p><p>In this sense, Snap is more like Twitter than Facebook, S&amp;P said. Snap has been compared to both companies, with analysts contemplating whether its <a href="http://markets.businessinsider.com/news/stocks/snapchat-ipo-market-cap-2017-3-1001800824">equity valuation</a> would climb like Facebook's did, or slump like Twitter's. Twitter's stock price has dropped 63% since its IPO, while Facebook is up 267%. </p><p><span>"As a result of the analysis, we see </span><span>Snap</span><span>'s credit peers are Yelp and Twitter, as each of these firms had similar credit quality pre-IPO," S&amp;P said. </span></p><p><span>The chart below shows how Twitter, Facebook, and Yelp credit scores evolved after their IPOs. </span></p><p><span><div class="KonaFilter image-container display-table click-to-enlarge"><div><div class="image on-image"><a title_source="S&amp;P Global Market Intelligence" title_caption="" class="zoomin" href="https://static-ssl.businessinsider.com/image-960/58d53309112f7091008b6a45-800"><span class="sprites click-to-enlarge-icon" title="Click to enlarge"></span></a><p class="source"><span>S&amp;P Global Market Intelligence</span></p></div><p></p></div></div></span></p><p><span>"Once public, the cash infusion from the IPO provided a short term credit boost, increasing their credit scores immediately, and then ongoing improvements in financial performance continued this increase in subsequent quarters."</span></p><p><span>Facebook's score was much higher at its IPO because of its relative size and the cash reserves it had.  </span></p><p>"I<span>f </span><span>Snap</span><span> were to look to the debt markets for funding in the future, an improvement in credit quality from 'b' would be advantageous to them," the report said. To improve its score, Snap would need to increase its earnings before interest and taxes, according to S&amp;P. </span></p><p class="tagline">Get the latest Snap stock price<a href="http://markets.businessinsider.com/stock/SNAP-Quote"> here.</a></p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/teens-favorite-brands-instagram-snapchat-sony-adidas-microsoft-2016-12">Teens told us the brands they love and can't live without</a></h3>        <div>            <div>        <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="kzOGlsODE6TBwdhbkw5ZabHBImklnFD5" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div>        </div>        </div>            </div>

Snapchat has 'elevated credit risk' that's worse than usual in its industry, S&P says

Mumbai, Feb 24 () Reserve Bank Governor Shaktikanta Das on Monday said slowing credit growth is one of the major challenges that banks are facing currently.<p> Loan growth in the system is hovering around 7 per cent.</p><p> "Slowing credit offtake is one of the challenges that banks are facing," Das said at the Mint annual banking conclave here.</p><p> He also asked banks to be prudent in lending and highlighted that the quality of appraisal is important.</p><p> He said that the RBI proposes to take thematic studies across financial institutions.</p><p> "Top 50 NBFCs are monitored very closely," he pointed out.</p><p> Speaking about NBFCs, he said that credit flow to small NBFCs have improved over the last one year. "Flow of credit has stabilised and is showing steady improvement," Das said.</p><p> Credit flow to realty sector needs to improve, he added.</p><p> He mentioned that the issue of governance in public and private sector banks is of utmost importance and the management of banks have a critical role to play in improving the governance.</p> He noted that the regulations are in compliance with Basel III guidelines.  HV  MRMR

Slowing credit offtake one of major challenges for banks: RBI Guv

MUMBAI: Getting the <keyword id="34412" type="ORGANIZATION" weightage="40" keywordseo="economy">economy</keyword> going again will be among the primary tasks of the new government, although there are few concrete signs of a turnaround amid gloomy forecasts of a possibly weak monsoon. But if and when some of the sunnier prognostications come true, the banking sector will be among the beneficiaries.<br />
<br /> Banking analysts are of the view that once the economy picks up, ICICI Bank and <keyword id="6355975" type="CITY" weightage="40" keywordseo="Axis-Bank">Axis Bank</keyword> will gain on account of loan growth and <keyword id="6357149" type="CITY" weightage="80" keywordseo="HDFC-bank">HDFC Bank</keyword> will benefit on account of better credit quality and margin improvement.<br />
<br /> "All the three banks - ICICI Bank, HDFC Bank and Axis Bank - are well placed to grow once the economic revival kicks in. In terms of valuation, Axis Bank is cheaper compared to an ICICI Bank," said Vaibhav Agarwal, <keyword id="194323" type="POSITION" weightage="60" keywordseo="banking-analyst">banking analyst</keyword> at Angel Broking. "Axis Bank's focus on its retail business has increased over the past two years. There have been some concerns on the asset-quality front. However, once the policy environment improves, these concerns will be over."<br />
<br />
The banks have been consolidating corporate loans and diversifying their balance sheet, so they are positioned to hit the growth button once the economy gains momentum. In the March quarter, the big three private sector lenders saw credit growth in the high teens.<br />
<br />
<table align="left" border="0" cellpadding="4" cellspacing="4">
	<tbody>
		<tr>
			<td>
				</td>
		</tr>
	</tbody>
</table>
In the March quarter, ICICI reported a 15% rise in profit to Rs 2,652 crore, while Axis Bank's increased 18.5% to Rs 1,842 crore, both meeting expectations. HDFC Bank's profit grew 23% to Rs 2,327 crore, the slowest in more than a decade and below estimates on account of the sluggish economy and higher tax rates.<br />
<br />
Private lenders expect to grow faster than the industry average, which is around 20%.<br />
<br /> "We expect the system loan growth to be 16-18% in the current financial year. We aim to grow at 2-4% higher than (this) average. So, our credit growth is expected to be 18-20%," said <keyword id="45875" type="PERSON" weightage="40" keywordseo="Chanda-Kochhar">Chanda Kochhar</keyword>, managing director and chief executive officer, ICICI Bank. On the asset quality front, managements feel the worst is over.<br />
<br /> "ICICI Bank and Axis Bank would be the biggest beneficiaries of an economic revival as they would see loan demand from corporates increase. HDFC Bank will see increase in short-term loan demand and will benefit from improved asset quality," said Saday Sinha, banking analyst, <keyword id="66607" type="CITY" weightage="40" keywordseo="Kotak-securities">Kotak Securities</keyword>. "Axis Bank has exposure to the power sector. In the next one-and-a-half years, if the input linkage problems are not solved, it (Axis Bank) runs the risk of restructuring these accounts."<br />
<br />
ICICI Bank and Axis Bank have restructured loans worth Rs 2,156 crore and Rs 1,115 crore, respectively. "Looking at where we are and the uncertain environment, with no change in financial year 2015, we see credit cost to be around 70 basis points," said V Srinivasan, executive director, corporate banking at Axis Bank.<br />
<br />
Net non-performing assets rose marginally to 0.3% from 0.2% for HDFC Bank.<br />
<br />
"We have managed to maintain asset quality as we have avoided lending to some names and stayed away from groups that have been highly leveraged," said Paresh Sukthankar, deputy MD, HDFC Bank. There is an element of "growth and asset quality linked to the economic growth. The worst is behind us. Clearly we are off the bottom", he said.

ICICI, Axis & HDFC Bank Will Gain Most From Economic Revival, Say Analysts

<p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><p class="source"><span>Reuters</span></p><p class="caption">That sinking feeling: Corporate credit quality in the UK is not what it used to be.</p></div><p></p></div></div></p><ul class="summary-list"><li><strong>The creditworthiness of British companies is declining in quality, according to Credit Benchmark, a research firm which tracks corporate debt.</strong></li><li><strong>Companies in the EU and the US are holding up.</strong></li><li><strong>The UK government's fiscal austerity, Brexit, and a declining currency are largely to blame - factors that aren't present in Europe or America, according to Credit Benchmark's David Carruthers.</strong></li></ul><p>The credit of British companies is declining in quality and austerity and Brexit are largely to blame, according to David Carruthers, the head of research at Credit Benchmark, a firm which tracks corporate debt.</p><p>The weakness of the pound - which has declined 10% since the month of Britain's fateful referendum decision to leave the EU - hasn't helped either, he says.</p><p>By contrast, the credit of European and US companies has largely held up, his analysis shows.</p><p>The analysis comes in the context of the Bank of England's warnings that <a href="https://www.businessinsider.com/leveraged-loan-record-87-percent-covenant-lite-2019-2">the riskiest sectors of the corporate debt market have grown very quickly</a>, even though the quality of the debt has declined.</p><p>Credit Benchmark collects credit risk "views" from more than 30 banks and financial institutions that lend money to companies. Its data is an average of banks' internal assessments, as opposed to the research-based analysis that comes from traditional credit ranking agencies such as Fitch, Moody's, or Standard &amp; Poor. </p><h2>This chart reflects changes in credit quality at 397 large consumer goods companies based in the UK.</h2><p>The black line shows the net trend, which is that banks believe more UK companies' credit quality is deteriorating than improving.</p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><p class="source"><span>Credit Benchmark</span></p><p class="caption">UK: changes in credit quality of 397 large consumer goods companies.</p></div><p></p></div></div></p><h2>This chart shows the cumulative trend of the same 397 companies over time:</h2><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><p class="source"><span>Credit Benchmark</span></p><p class="caption">UK: cumulative changes in credit quality of 397 large consumer goods companies over time.</p></div><p></p></div></div></p><h2>For comparison, the next two charts reflect 204 large consumer goods companies in the EU not including the UK.</h2><p>In Europe, the same sector is faring better:</p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><p class="source"><span>Credit Benchmark</span></p><p class="caption">EU: changes in credit quality at 204 large consumer goods companies.</p></div><p></p></div></div></p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><p class="source"><span>Credit Benchmark</span></p><p class="caption">EU: cumulative changes in credit quality at 204 large consumer goods companies over time.</p></div><p></p></div></div></p><h2>And here is the data for 326 large consumer goods companies in the US.</h2><p>Again, credit quality is holding up:</p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><p class="source"><span>Credit Benchmark</span></p><p class="caption">US: changes in credit quality at 326 large consumer goods companies.</p></div><p></p></div></div></p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><p class="source"><span>Credit Benchmark</span></p><p class="caption">US: cumulative changes in credit quality at 326 large consumer goods companies over time.</p></div><p></p></div></div> So why are UK companies performing so poorly in the eyes of their own creditors? There are three negative factors in the UK which are not all present in Europe or the US: austerity, Brexit, and a currency in decline. </p><p>"I think that bank analysts have been increasing their risk estimates on a broad range of UK companies partly because of the impact of UK austerity on consumer spending, as well as declining government spending on outsourcing to the private sector (the recent collapse of the UK construction giant Carillion is a good example of this)," Carruthers told Business Insider.</p><p>"Some of this could reverse if [Chancellor] Philip Hammond opens the purse strings. Brexit-related uncertainty must be an important factor - companies delay investment decisions and consumers big-ticket purchases. Sterling weakness has probably pushed up the prices of some products as well."</p><h2><strong>Read more:</strong></h2><p><a href="https://www.businessinsider.com/automobile-car-industry-production-global-recession-2019-2" data-analytics-position="1">The failing automobile industry is pushing us toward a global recession</a></p><p><a href="https://www.businessinsider.com/leveraged-loan-record-87-percent-covenant-lite-2019-2" data-analytics-position="1">The risky 'leveraged loan' market just sunk to a whole new low</a></p><p><a href="https://www.businessinsider.com/leveraged-loans-lbo-debt-ebitda-at-6x-2019-2" data-analytics-position="2">The riskiest part of the corporate debt market is inching toward a historic danger signal</a></p>    <div class="margin-top">        <h3>NOW WATCH: <a href="https://www.businessinsider.com/western-union-ceo-on-speaking-up-for-migrants-and-the-future-of-payments-2019-1">Western Union CEO: Migrants are responsible for $600 billion in payments a year, yet they "have no voice"</a></h3>        <div>                    </div>    </div>

The credit of British companies is declining in quality and austerity and Brexit are largely to blame

<p>Credit quality across the US is getting better. </p><p>The <a href="http://www.newyorkfed.org/data-and-statistics/data-visualization/community-credit-profiles/#inclusion/credit_participation/Pct_Pop_in_CE">New York Fed has a great new interactive</a> that shows just how much the credit economy (how many adults have a credit file and credit score), credit availability, and credit quality have changed on both the state and county level.</p><p><span style="line-height: 1.5em;">The differences in the map look more or less the same over time: Northerners have vastly better credit scores than Southerners. But in both places, the picture is getting better, little by little. And the credit economy as a whole, which shrunk between 2007 and 2012 (to 89.1% from 96%), is finally coming back (it was at 92.5% in 2014). </span></p><p>And the results show that broadly, this is a sign the US economy, and US consumer, is getting back on track.</p><p>But this improvement hasn't been uniform across regions, states, or even within states themselves.</p><p><span>Kausar Hamdani, Senior Vice President at the New York Fed, told Business Insider that while regional patterns are persistent, trends inside particular states aren't as set.</span> "<span style="line-height: 1.5em;">For example, Michigan is among the top 5 ranked states in terms of credit economy inclusion yet has Isabella County ranked among the lowest 5 counties in the US and St. Clair County, which is ranked among the top 5 counties in the U.S. Other states, such as Mississippi are more uniform in the rankings of their counties." </span></p><p>Here's what the country's credit quality picture looked like state-by-state back in 2005: </p><p> </p><p><div class="KonaFilter image-container display-table"><div><div class="image"></div><p></p></div></div></p><p> </p><p>And 2010: </p><p> <div class="KonaFilter image-container display-table"><div><div class="image"></div><p></p></div></div></p><p> </p><p>And finally 2014: </p><p> </p><p><div class="KonaFilter image-container display-table"><div><div class="image"></div><p></p></div></div></p><p> </p><h4><a href="http://www.newyorkfed.org/data-and-statistics/data-visualization/community-credit-profiles/#overview">Play around with the interactive here</a>.</h4>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/container-ships-collide-suez-canal-egypt-2015-3">Watch these giant container ships collide near the Suez Canal</a></h3>        <div>            <div>        <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="E4MDQ2dDq9xjV9qTP2lvmq2AeTRu-HAW" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div>        </div>        </div>            </div>

America's credit scores are slowly getting better

In a major restructuring exercise, <keyword id="6354731" type="DOMAIN" weightage="20" keywordseo="state-bank-of-india">State Bank of India</keyword> has created a separate Financial Inclusion and Micro Market (FI&amp;MM) vertical with a focus on rural and <keyword id="9333024" type="UNKNOWN" weightage="20" keywordseo="semi-urban-areas">semi urban areas</keyword> to improve customer experience. Under this newly launched vertical, the bank will offer loans mainly for agriculture as well as allied activities, and micro and small enterprises, <keyword id="13222" type="CITY" weightage="20" keywordseo="SBI">SBI</keyword> said in a statement on Tuesday. <br /><br />About 8,000 branches in rural and semi urban areas have been identified for providing specialised services to micro segment, including micro credit for <keyword id="390673" type="PERSON" weightage="20" keywordseo="small-businesses">small businesses</keyword> and farmers, it said. <br /><br />The thrust is also to improve service quality and availability of banking services through the bank's vast network of over 63,000 customer service points in rural, semi urban, urban and metro areas, it said, adding the new vertical will provide a boost to the micro-finance sector. <br /><br />"Today is an important day in our resolve to ensure that SBI stands with the citizens of the country, across all segments. The key elements of creating the FI&amp;MM vertical are to bring sharper focus to different business lines and improve the quality of interaction with customers at the branch," SBI Chairman Rajnish Kumar said. <br /><br />This is an initiative by SBI to cater to financial requirements of people residing in the hinterland of the country, as part of its financial inclusion journey, he added. <br /><br />"The new FI&amp;MM vertical will provide an opportunity to serve the small business, Agri &amp; allied segment so that they can run their businesses smoothly, especially in the current times of uncertainty. The creation of the FI&amp;MM Vertical was conceived, created and implemented fully in house," Kumar said. <br /><br />Commenting on the Delhi region, CGM in-charge Vijuy Ronjan said as many as 612 branches spread across four states, including Delhi and Haryana, would fall under the new vertical. <br /><br />"The initiative will help improve credit delivery to the retail, MSME and agriculture sector in the rural and semi-urban areas of the country. Besides, it will lead to better utilisation of banking correspondent channel. As a result, the goal of financial inclusion and doorstep banking of the government can be given a further push," Ronjan said. <br /><br />On the first day itself, he said, the circle has disbursed about Rs 7.17 crore to 168 eligible MSME units through the FI&amp;MM vertical under the Guaranteed Emergency Credit Line (GECL), part of the Atmanirbhar Bharat Abhiyan package.   <br /><br />The statement further said the FI&amp;MM vertical is headed by the bank's deputy managing director Sanjeev Nautiyal at the national level. <br /><br />To ensure special focus and smooth functioning at the local level, it said, the FI&amp;MM vertical will comprise of a four tiered structure under the Chief General Manager, General Manager, RMs at <keyword id="9333023" type="COMPANY" weightage="20" keywordseo="regional-business-offices">Regional Business Offices</keyword> (RBO) and <keyword id="9333022" type="LOCATION" weightage="20" keywordseo="district-sales-hub">District Sales Hub</keyword> to strengthen the credit delivery system and improve the turnaround time for quick sanctions and disbursement of small loans. <br /><br />The primary emphasis will be on consolidating the district level presence which will provide constant sales and recovery support to branches in the FI&amp;MM network, it said. <br /><br />The DSHs will also play an important role in strengthening the reach of customer service points (CSPs) and ensure improvement in quality and availability of services rendered to customers. <br /><br />Amid the COVID-19 pandemic, SBI has been at the forefront in providing relief measures to existing SME borrowers, such as 10 per cent of fund based working capital limits by way of CCECL (Common COVID-19 Emergency Credit Line), easing of working capital finance along with moratorium on term loans and working capital.<br /><br /><b>SEE ALSO:</b><br /><br /> <b><a href="https://www.businessinsider.in/finance/news/yes-bank-is-looking-to-raise-10000-crore-through-fpo-with-kotak-securities-axis-capital-and-sbi-capital-reportedly-to-be-key-players/articleshow/76153458.cms">Yes Bank is looking to raise ₹10,000 crore through FPO – with Kotak Securities, Axis Capital, and SBI Capital reportedly to be key players</a></b><br /><br /> <b><a href="https://www.businessinsider.in/business/news/how-to-apply-for-msme-loan/articleshow/76154606.cms">Here’s how MSMEs can apply for loans from SBI, ICICI Bank and others</a></b><br /><br /> <b><a href="https://www.businessinsider.in/finance/news/sbi-axis-bank-and-kotak-mahindra-bank-and-other-banking-stocks-are-raising-capital-to-fill-npa-hole/articleshow/76054599.cms">Indian lenders like SBI, Axis Bank and others need $20 billion⁠ in capital— most of it will go into filling up NPA holes</a></b>

SBI announces new vertical to focus on rural and semi urban areas

<br />
<a href="http://www.businessinsider.in/searchresult.cms?query=J.D.+Power+Asia+Pacific">J.D. Power Asia Pacific</a> has released a study for ‘<a href="http://www.businessinsider.in/searchresult.cms?query=Two-Wheeler">Two-Wheeler</a> Initial Quality’ in India. According to this study, India’s <a href="http://www.businessinsider.in/searchresult.cms?query=Two-Wheeler">two-wheeler</a> owners have reported a significant reduction in initial quality problems.<br />
<br />
Here are some of the key findings of the study:<br />
<br />
<strong>Initial Quality Improves in Both Scooter and Motorcycle Segments: </strong><br />
Overall initial quality averages 137 PP100 for <a href="http://www.businessinsider.in/searchresult.cms?query=Scooters">Scooters</a> and 159 PP100 for <a href="http://www.businessinsider.in/searchresult.cms?query=Motorcycles">Motorcycles</a>, an improvement of 13 PP100 and 14 PP100, respectively, from 2015. Among vehicle systems, the greatest year-over-year improvement is in the engine category.<br />
<br />
<strong>First-Time Buyers Report Fewer Initial Quality Problems: </strong><br />
More than three-fourths (77%) of <a href="http://www.businessinsider.in/searchresult.cms?query=Two-Wheeler">two-wheeler</a> owners are first-time buyers, and they report fewer problems than those with previous ownership experience (138 PP100 vs. 200 PP100, respectively). The difference is largely influenced by problems in the engine and ride and handling categories.<br />
<br />
<strong>Average Daily Kilometres Driven vs. Problem Incidence: </strong><br /> Owners who ride their <keyword id="6374783" type="ORGANIZATION" weightage="60" keywordseo="two-wheeler">two-wheeler</keyword> 41 kilometres or more per day (32%) report more problems than those who ride up to 40 kilometres: 164 PP100 vs. 146 PP100, respectively—a difference of 18 PP100.<br />
<br />
<strong>Overall Two-Wheeler Quality Influences Loyalty: </strong><br />
Owners who experience fewer problems than expected (64%) are nearly three times as likely to recommend their two-wheeler model to family and friends as those who experience more problems than expected (23%).<br />
<br />
The interesting infographic explains this so much better.<br />
<br />
<br />
<br />
Image credit: Indiatimes

How healthy is your Two-Wheeler? Find out!

New Delhi, Mar 4 () Moody's Investors Service on Wednesday downgraded the baseline credit assessment of Bank of Baroda to reflect weakening in asset quality and risk from deteriorating operating environment in India.<p> Moody's affirmed Bank of Baroda's domestic and foreign bank long-term and short-term deposit ratings of Baa3, stable/P-3.</p><p> Moody's has downgraded BoB's Baseline Credit Assessment (BCA) to 'ba3' to reflect the weakening in asset quality and further downside risk from the deteriorating operating environment in India. </p><p> BCAs are essentially an opinion on the likelihood of an issuer requiring extraordinary support to avoid a default on its debt obligations.</p><p> "Further deterioration in asset quality poses risks to BoB's profitability and capital," Moody's said, adding the asset quality in micro, small and medium enterprises and agriculture portfolio, which has deteriorated, will continue to weaken further. </p><p> Another risk factor is BoB's exposure to non-bank financial institutions (NBFIs), which at 16 per cent of its loan book is the highest among Moody's-rated banks in India. </p><p> "If the downside risks on asset quality materialize, resulting in higher credit costs and lower internal capital generation, the pace of improvement in profitability and capital will be negatively impacted," it added.</p><p> Moody's further said it has affirmed the deposits and senior unsecured ratings of BoB with a stable outlook. Moody's expects that the bank will receive a very high level of systemic support,leading to a widening of systemic support uplift to three notches, from two previously.</p> Bank of Baroda had total assets of Rs 11.4 lakh crore at December 31, 2019.   JD MRMR

Moody's downgrades BoB's baseline credit assessment

Mumbai, Jan 9 () Amid a slowdown in economic activity, state-owned Sidbi on Thursday said credit supply growth to the commercial sector has slowed to a multi-year low of 8.1 per cent for the 12 months ended September 2019.
<p> The data, put together in association with credit information company TransUnion Cibil, comes at a time when economic growth is estimated to slow to a decadal low of 5 per cent for 2019-20 and overall credit growth has slipped to 7.1 per cent for 2019.
</p><p> The total outstanding credit of the commercial sector was Rs 65 lakh crore in the year ended September 2019, up 8.1 per cent, a multi-year low growth, as against 16.2 per cent in the year to December 2018, the quarterly report said.
</p><p> "The industry-level credit exposure trends are driven by either growth or slowdown in fresh loan disbursals, changes in utilisation levels of existing limits or changes in the percentage of exits of existing limits," Cibil Managing Director and Chief Executive Officer Satish Pillai said.
</p><p> As the growth in the denominator goes down, there has been an improvement in the asset quality with the gross non-performing assets (GNPA) ratio for the commercial segment improving to 16.8 per cent in the year ended September 2019 as against 17 per cent a year ago, the report said.
</p><p> It also added that the trend of an increase in share for the private banks continued at the expense of the capital-starved state-run lenders.
</p><p> The share of private banks in the overall commercial credit stands at 38.9 per cent, up from 36.3 per cent in the year-ago period, while the same for state-owned lenders has come down to 48.2 per cent from 51.2 per cent, it said.
</p><p> Surprisingly, the troubled non-bank lending segment seems to be holding or even growing on to its shared which stood at 12.8 per cent as against 12.5 per cent in the year-ago period, the report said.
</p><p> From an asset quality perspective, the medium sized businesses are the most problematic for the system with state-run lenders posting a GNPA of 29.3 per cent, NBFCs 8.1 per cent and the leaner private sector banks 6.1 per cent.
</p> The report said lending to micro, small and medium enterprises has increased for smaller borrowing size and lower duration borrowers, it said.  AA  HRS

Credit supply to commercial sector slows to multi-year low of 8.1 pc: Sidbi

New Delhi, Nov 25 () Moody's Investors Service on Monday said that the cost rationalisation of Tata Steel's European operations is credit positive as it will support a turnaround in the private steel major's wholly-owned arm TSUKH's less profitable operations.
<p> On November 18, Tata Steel outlined a programme to reduce costs and improve product mix at its European operations, which are held by wholly-owned subsidiary Tata Steel UK Holdings (TSUKH), Moody's Investors Service said in a statement.
</p><p> "The planned cost rationalisation program is credit positive for both companies because it will support a turnaround in TSUKH's less profitable operations that have dragged on Tata Steel's consolidated credit quality," the statement said.
</p><p> The European operations accounted for 35 per cent of Tata Steel's total shipments in the first half of FY20, but they generated only around 2.4 per cent of its reported consolidated earnings before interest, tax, depreciation and amortisation (EBITDA).
</p><p> Although the programme is credit positive and a continuation of the company's efforts to turnaround the European operations, a timely and meaningful improvement in performance is key, the credit rating agency said.
</p><p> Sustained weakness in demand from Europe's steel-consuming sectors, global economic slowdown and increasing trade barriers cast downside risks to the pace of credit profile improvement.
</p><p> Tata Steel's Indian operations are the cornerstone of the company's strong profitability because these operations are integrated into the production of key raw materials in steel making, which combats the country's slowing steel demand and declining end-product prices.
</p> Sluggish economic growth with weak demand from automobile, manufacturing, property and construction industries have diminished steel demand in India and caused a decline in end-product prices in the first half.   SID ANS
ANS

Tata Steel's cost rationalisation in European operations credit positive: Moody's

Mumbai, Jun 4 () Gross non-performing assets (NPAs) of banks are likely to worsen to 11.3-11.6 per cent by the end of this financial year from 8.6 per cent as of March 2020, due to disruptions caused by the coronavirus pandemic, according to a report. <p> Fresh gross slippages are estimated to be at 5-5.5 per cent of standard advances during 2020-21, which will increase the banks' credit provision and impact their earnings, rating agency ICRA said in a report. </p><p> With an increase in stress on asset quality and profitability, state-owned banks may need Rs 45,000-82,500 crore of capital in this financial year under a weak credit growth scenario, it said. </p><p> "The RBI moratorium to borrowers was extended by another three months till August 31, 2020, and we expect the asset quality stress is likely to reflect only in third and fourth quarters of 2020-21 results," the rating agency's sector head (financial sector ratings) Anil Gupta said. </p><p> It said that while the lockdown has surely impacted the debt-servicing ability of borrowers, the extent of revival in economic activities as the restrictions are eased will drive the final impact on asset quality of banks. </p><p> The credit provisions will continue to exceed the operating profits for the public sector banks (PSBs) during 2020-21, translating in a sixth consecutive year of loss, it said. </p><p> The profitability of private sector banks will also moderate with return on equity (RoE) declining to 3.5-5.1 per cent during 2020-21 as against earlier expectations of improvement to 10-12 per cent. </p><p> Gupta further said, "With thin capital cushions and expected increase in stress on asset quality and profitability, we expect PSBs (public sector banks) to require Rs 45,000 crore-82,500 crore of capital even under a scenario of low credit growth of 3-4 per cent during 2020-21." </p><p> The incremental credit growth of banks during this financial year is expected to be Rs 6-7 lakh crore, which will translate into a year-on-year credit growth of around 6-7 per cent. </p> This will be driven by 3.5-4.3 per cent growth by state-owned banks and 7-9 per cent by private lenders, the rating agency said. HV HRS

You Searched For "credit quality improvement" and got 13 results

India's corporate credit quality is getting stronger: S&P Global

ANI

Indian corporate credit quality remains strong in H1 of FY23: CRISIL

IANS

Snapchat has 'elevated credit risk' that's worse than usual in its industry, S&P says

Akin Oyedele

Slowing credit offtake one of major challenges for banks: RBI Guv

PTI

ICICI, Axis & HDFC Bank Will Gain Most From Economic Revival, Say Analysts

Economic Times

The credit of British companies is declining in quality and austerity and Brexit are largely to blame

Jim Edwards

America's credit scores are slowly getting better

Shane Ferro

SBI announces new vertical to focus on rural and semi urban areas

PTI

How healthy is your Two-Wheeler? Find out!

BI India Bureau

Moody's downgrades BoB's baseline credit assessment

PTI

Credit supply to commercial sector slows to multi-year low of 8.1 pc: Sidbi

PTI

Tata Steel's cost rationalisation in European operations credit positive: Moody's

PTI

Bank NPAs may worsen to 11.6 pc by end of this fiscal due to coronavirus pandemic: Report

PTI

Popular Keywords

Buying Guides