The second-quarter numbers of India Inc were softer for the financial year 2020, confirming the ongoing economic slowdown.Banks reported weak loan growth, stable-to-declining nonperforming loans (NPLs) and stable slippages and high provision coverage ratio.However, most non-banking financial companies (NBFCs) had a decent quarter amid a challenging environment as they reported steady net interest margins (NIMs) despite an increase in borrowing costs, said Kotak Institutional Equities.Close So, are we looking at a turnaround for NBFCs? related news Taking Stock: Market rides positive global sentiment; Bharti Airtel, RIL top gainers Buy, sell or hold? Telecom stocks ringing loud Experts and brokerages agree that the health of NBFCs will improve, supported by the government's measures, but it will take time."Signs of stress in the economy are still strong, so it will be too early to say that NBFCs will see a turnaround quickly. But in six months' time, the situation will … [Read more...] about Will a slow but steady Q2 turn things around for NBFCs?
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Leading playschool chain EuroKids is looking to acquire Kidzee from Zee Learn for Rs 1,000-1,200 crore, a report in The Economic Times said.The US private equity firm KKR, which recently acquired 92 percent stake in EuroKids in September, has made a non-binding offer for Zee Learn, especially Kidzee, and is waiting for a response, the report said.EuroKids owns the Kangaroo Kids and Billabong International school chains.Close Kidzee, established in 2003, is Asia's largest network of preschools. related news EuroKids: Here's how India's top preschooler plans to grow The rise and fall of Educomp Moneycontrol could not independently verify the story.The transaction could help Essel Group, which owns Zee Entertainment Enterprises, deleverage its consolidated balance sheet, sources told the paper.Promoters of Essel Group owe about Rs 7,000 crore to lenders.An Essel group spokesperson told The Economic Times that the company is “actively evaluating” … [Read more...] about EuroKids in talks to acquire Kidzee for Rs 1,200 crore: Report
ICICI Bank is looking to raise around Rs 20,000 crore by selling six-to-seven percent stake to institutional investors and has approached at least 10 investment banks for the same, reports Mint.The country's largest private-sector lender plans to complete the entire raise in a single tranche and may soon issue formal mandates to some of the investment banks it approached, sources told the paper.The move, which would be the largest such capital raise in India, is aimed at subverting liquidity squeeze created in the sector after the IL&FS debacle and subsequent busts.Close The qualified institutional placement (QIP) way was zeroed in on after the bank dropped plans to issue American depositary receipts (ADRs), the source said. related news Dilip Buildcon bags Rs 2,123cr order from Coal India arm Congress gives notice of adjournment motion in Lok Sabha over withdrawal of SPG cover of Gandhis Jet Airways insolvency: Will lenders give another extension to … [Read more...] about ICICI Bank may raise Rs 20,000cr via 6-7% stake sale to institutional investors
Following the Supreme Court verdict on Essar Steel resolution plan, global steel giant ArcelorMittal said expects to complete the acquisition of the debt-ridden company by the end of this year.ArcelorMittal India Private Limited's (AMIPL) resolution plan for Essar Steel India Limited (‘ESIL') has been unconditionally approved by the Supreme Court of India and the approval of AMIPL's resolution plan is the final procedural step in ESIL's corporate insolvency process, the company said in a statement."Completion of the transaction is now expected before the end of the year. After completion, ArcelorMittal will jointly own and operate ESIL in partnership with Nippon Steel Corporation, Japan's largest steel producer and the third largest steel producer in the world, in-line with the joint venture formation agreement signed by the two companies," it said.Close The Supreme Court on Friday paved the way for ArcelorMittal takeover of Essar Steel for Rs 42,000 crore and set aside the July … [Read more...] about ArcelorMittal aims to complete Essar Steel acquisition by 2019-end
Vineeta SharmaEarnings downgrade continued in the recently concluded Q2FY20 corporate results. Non-operative one-offs provisioning has continuously hampered headline profit numbers. These one-offs have remained like a permanent feature during the last four quarters.This quarter, Bharti Airtel reported consolidated loss of Rs 23,000 crore and Yes Bank Rs 629 crore, which pulled down Nifty EPS estimate for FY20 by 620 bps.Close Q1FY20 saw Tata Motors report a loss of Rs 3,600 crore that impacted growth by 0.5 percent and IOC and BPCL further had a negative 1 percent impact on growth. In Q4FY19, SBI and ONGC impacted EPS by 1.7 percent and in Q3FY19, Tata Motors had reported Rs 26,900 crore loss.Vineeta SharmaHead of Research|Narnolia Financial Advisors 9% revenue and 14% net profit growth expected in Q2FY20Boost to exports - relief to home buyers, but holistically earnings need to show upPSU bank merger: Quality of advances & management matters more than sizeMore broadly, revenues … [Read more...] about ‘Q2 review: Bet on these 13 stocks for strong growth in FY21’