EDEL reported weak Q4 results, with AUM falling for the fourth straight quarter). AUM declined 47.1% YoY and 32.2% QoQ to Rs191bn amid tight liquidity conditions and economic headwinds. Management intends to gradually run down its wholesale book. Accordingly, we expect AUMs to remain under pressure for the foreseeable future. The company has improved its overall borrowing profile with a decline in CPs and rise in NCD/banks. Management has highlighted its plan to collapse the holding company and issue direct equity in the various companies of Edelweiss group by issuing fresh equity of Rs10-15bn in EGIA. We await to hear more from the management regarding the revised structure. Gross NPAs deteriorated sequentially to 3.8% from 2.8% in Q3. The company has made provisions of Rs26bn in Q4 on account of revision in the ECL model, additional impairment to facilitate sell downs and a one-time Covid-19 provision. Management has been prudent in providing, though we believe asset quality may not … [Read more...] about Hold Edelweiss Financial Services; target of Rs 64: Emkay Global Financial
But it is too uncertain to predict anything as of yet. We are likely to see a sharp earnings downgrade for FY21 and based upon the calibrated lifting up of lockdown and subsequent recovery there might be earnings growth in the range of 5-10 percent for FY21, which still looks to be decent given the current situation. … [Read more...] about Keep an eye on ESG stocks, could grow big post COVID-19: Lav Chaturvedi
a)The Resolution Corporation will monitor financial firms, anticipate risk of failure, take corrective action, and resolve them in case of such failure. The Corporation will also provide deposit insurance up to a certain limit, in case of bank failure.b) The Resolution Corporation or the appropriate financial sector regulator may classify financial firms under five categories, based on their risk of failure. These categories in the order of increasing risk are: (i) low, (ii) moderate, (iii) material, (iv) imminent, and (v) critical.c) The Resolution Corporation will take over the management of a financial firm once it is classified as ‘critical’. It will resolve the firm within one year (may be extended by another year).d) Resolution may be undertaken using methods including: (i) merger or acquisition, (ii) transferring the assets, liabilities and management to a temporary firm, or (iii) liquidation. If resolution is not completed within a maximum period of two years, the … [Read more...] about After Yes Bank fiasco, RBI governor sees merit in creating resolution corporation: How critical is the idea?
From a sectoral perspective, it said airlines, hotels, malls, multiplexes, restaurants, and retail may see a significant loss of revenue and profits due to the outbreak, while highly leveraged sectors like real estate developers, telecom companies and power firms may remain a source of increased bad debt, it said. … [Read more...] about Loan recasts to only defer problem, NPAs may zoom up to 14% due to COVID-19: S&P Global Ratings
However, Experian is now providing free credit reports throughout the year. “This initiative is taken by our credit bureau in these pandemic times to educate consumers and they can access their credit report every month to check for any discrepancies,” says Sathya Kalyanasundaram, Country Head & Managing Director, Experian India. … [Read more...] about Credit report: How you can access it for free and rectify errors