Pmc bank

“The performance of the banking system has improved as ratios declined and credit growth accelerated. However, financial flows to the economy remained constrained because of the decline in the amount of equity finance raised from capital markets and stress in the non-banking finance sector,” the survey noted. … [Read more...] about Economic Survey 2019: Decline in banks’ bad loans to help push capex cycle

The government primarily plans to meet its fiscal deficit target by achieving divestment of Rs 2.1 lakh crore for FY21 on the back of stake sale in state-run companies. It is looking at IPO of LIC, stake sale in Air India, BPCL and IDBI Bank as well as by consolidating PSUs in the oil & gas and power sector. Having said that, there have been quite a few instances in the past when the government has missed its divestment targets, which could be a hindrance to the fiscal consolidation that the government is aiming at. Further, the increase in GST collections if there is an improvement in the economy may support the government in meeting the fiscal deficit target. … [Read more...] about Govt may achieve tall divestment target if LIC IPO comes through: Religare Broking

Now connect the key areas of spend/reforms we mentioned in the first part to the sectors/market-cap segments and the data, and you will know where the opportunity lies! For those of you piling on large-cap stocks or funds given their outperformance, it may be time to take a relook at the market, in light of the broader rally that appears to be emerging and also the revival in segments that are more mid-sized in terms of market cap. … [Read more...] about Market rally becoming broad-based, irrespective of budget announcements

LIC’s listing on the bourses will require adherence to disclosure requirements of listed companies, bringing in better transparency and governance. As a policyholder, this will result in better returns on LIC policies in the long run. LIC’s capital allocation, investments becoming transparent will come under the scanner; it won’t be the bailout cash cow for the government. This is good for LIC customers, as LIC will be able to use its funds in a more efficient manner and invest in better avenues. LIC invested Rs 21,000 crore in IDBI Bank last year and also bought significant stakes in government companies that are trading way below their issue prices. … [Read more...] about Insurance is always important, with or without the tax breaks

Income tax payers will get marginal benefit if they opt for the new IT regime with lower taxes but no exemptions. Under the proposal, tax rates on different income slabs would be: 10 percent on Rs 5-7.5 lakh income; 15 percent on Rs 7.5-10 lakh; 20 percent on Rs 10-12.5 lakh; 25 percent on Rs 12.5- 15 lakh and 30 percent on above Rs 15 lakh. The new IT regime co-existing with the old regime will make the IT system unnecessarily complex. The new lower rate IT regime without exemptions is a negative for mutual fund schemes like ELSS. … [Read more...] about Budget 2020: Govt missed the opportunity to attract long-term funds by not acting on LTCG