Public health is an economic issue. The COVID-19 pandemic has made this abundantly clear. This is especially true of cities, the frontline of the pandemic. Take Mumbai; as on July 8, India’s financial capital was also its pandemic hotspot with 86,509 total confirmed cases. Reinvesting here and in other cities will be essential for kickstarting the economy — and doing so in a way that prepares us for the next public health crisis will have long-term structural benefits. However, here’s the problem: where will the money come from? … [Read more...] about How can the BMC help Mumbai recover?
AUBANK's Annual Report emphasizes the bank's core focus on building a strong retail franchise, with retail AUM comprising ~84% of the loan book (98% secured loans). On the liability side, CASA plus retail TD comprises ~43% of deposits, with the concentration of the top 20 deposits declining to 23.4% v/s 25% in FY20. For FY20, NII/PPoP grew by 42%/66% while PAT grew by 77% YoY to INR6.7b aided by Aavas stake sale with bank reporting strong RoA/RoE of 1.8%/18%. Capital level remains strong with a Tier 1 ratio of 18.4% (CAR at 22%). Focused lending toward income generation activities and a lower average ticket size of ~INR0.5m has helped the bank maintain control over credit cost despite facing various headwinds. Retail GNPA improved to 1.7% v/s 2.2% in FY19, and overall GNPA increased to 1.7% v/s 2.0% in FY19. AUBANK follows an accelerated provisioning policy, which has enabled the bank to substantially increase its PCR by ~1,520bp to 53%. The bank continues to invest in digital … [Read more...] about Buy AU Small Finance Bank; target of Rs 675: Motilal Oswal
The trend of investing in US markets to diversify the portfolio is likely to grow stronger. More than Rs 6,000 crore of investors’ money is riding on the US markets. Indian investors have for long preferred the popular FAANG stocks but now they have added M to the alphabet soup. FAANG refers to the stocks of five prominent American technology companies-- Facebook, Amazon, Apple, Netflix, and Alphabet (GOOG) (formerly known as Google). Investors have now started adding Microsoft to their portfolio. Microsoft Teams has witnessed an upsurge in usage as most schools and organisation have started using it to organise meetings and impart knowledge. Tesla and Zoom are the other stocks that Indian investors have shown interest in. Read here. … [Read more...] about Moneycontrol Daily: Your Essential 7
“I think the short answer is rising insecurity,” says Robert Spitzer, a political science professor at SUNY Cortland and the author of five books on gun policy. Now that COVID-19 infection rates are increasing in states that are more prone to gun ownership, people may be channelling their fear of the pandemic’s economic effects into gun purchases. Hyatt and Lankford both noted there’s also a fear of “riots,” their term to describe the Black Lives Matter protests, though Spitzer says that’s a bit disconnected from the reality. “The amount of actual disorder and rioting, as opposed to legal demonstrations, is really tiny,” Spitzer notes, “and it’s certainly not occurring in places where people tend to be gun owners.” Lankford says there have been only a few demonstrations in his small Alabama town, but he’s worried about the unrest spilling over from Atlanta, 90 miles away. Rob Wilcox, deputy director of policy … [Read more...] about Through protests and the pandemic, gun background checks hit record high
What’s the way out? Many fund managers follow a growth investing strategy because it is an aggressive one and can give results faster. This strategy involves investing in companies that are expected to grow at an above-average rate as compared to the industry they belong to or the overall market. Growth investing carries high risk, as growth companies are usually young and don’t have a performance track record. … [Read more...] about Neither value nor growth, but only quality investing is best-suited for retail investors