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Adani Enterprises to launch maiden Rs 800 crore retail bond issue on September 4  Adani Enterprises Limited (AEL) on Thursday announced the launch of its maiden public non-convertible debenture (NCD) issue on September 4, with plans to raise up to Rs 800 crore.  The offering will include up to 80,00,000 secured, listed and redeemable NCDs, each with a face value of Rs 1,000. The base size issue is Rs 400 crore, with an option to retain over-subscription up to Rs 400 crore (green-shoe option) -- aggregating up to Rs 800 crore. The issue will open on Septemb...
Adani Enterprises to launch maiden Rs 800 crore retail bond issue on September 4
Adani Enterprises to launch maiden Rs 800 crore retail bond issue on September 4
Source: IANS
2024-08-29 01:44:07 pm
Bangladesh Crisis: $200-250 Million Monthly Export Opportunity for India's RMG Sector in the near term : CareEdge Ratings * In the past, countries such as Bangladesh and Vietnam captured a large part of China’s declining share in the global readymade garment (RMG) exports while India failed to adequately capitalise on China’s losing share. Recent political upheavals and social unrest in Bangladesh, which is the second largest exporter of RMG after China, present an opportunity for the Indian RMG sector.  * In case of sustenance of the socio-political disturbance for more than one or two quart...
Bangladesh Crisis: $200-250 Million Monthly Export Opportunity for India's RMG Sector in the near term : CareEdge Ratings
Bangladesh Crisis: $200-250 Million Monthly Export Opportunity for India's RMG Sector in the near term : CareEdge Ratings
Source: CareEdge Ratings
2024-08-08 03:55:04 pm
ADD CARE Ratings Ltd. for Target Rs.1,225 - Yes Securities Structurally moving right CARE’s PAT in Q4 FY24 was below our estimate on account of softer growth in Domestic Ratings (Stand-alone Rev.), lower-than-expected margins (reflecting growth investments in Analytics business), lower other income and higher tax rate. On structural basis, the performance was healthy characterized by 1) steady progression of market share in Ratings, 2) margin in ratings business trending up due to operating leverage, and 3) significant built-up of traction ...
ADD CARE Ratings Ltd. for Target Rs.1,225 - Yes Securities
ADD CARE Ratings Ltd. for Target Rs.1,225 - Yes Securities
Source: Yes Securities Ltd.
2024-06-26 03:04:54 pm
WPI to be around 3 per cent in FY 25, say economists The Wholesale Price Index (WPI) is expected to be in the region of 2-3 per cent over the next two quarters and average at around 3 per cent for FY25, top economists at two credit rating agencies said as the Commerce and Industry Ministry announced the WPI for April 2024 was 1.26 per cent. Reacting to the numbers, Suman Chowdhury, Chief Economist and Head, Research, Acuite Ratings & Research said: "WPI trajectory in India is finally showing signs of a pickup, rising to 1.26 per cen...
WPI to be around 3 per cent in FY 25, say economists
WPI to be around 3 per cent in FY 25, say economists
Source: IANS
2024-05-15 10:35:51 am
Economists unsure when RBI will cut repo rate  With the Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) deciding to retain the repo rate at 6.5 per cent, economists are not sure when the central bank would cut the rate. Some expect a shallow rate cut may happen by the end of the calendar year while others are of the view that RBI will maintain a wait-and-watch attitude. The MPC decided to leave unchanged the repo rate, the rate at which the RBI lends to banks, at its first meeting of FY25 held April 3-5. RBI ...
Economists unsure when RBI will cut repo rate
Economists unsure when RBI will cut repo rate
Source: IANS
2024-04-06 09:10:23 am
GNPAs of Indian banking system set to improve further to up to 2.1 per cent by end of FY25: Care Rating Domestic rating agency Care Ratings in its latest report said that the gross non-performing assets (GNPAs) of the Indian banking system are set to improve further to up to 2.1 per cent by the end of FY25. It mentioned GNPAs are likely to come at 2.5-2.7 per cent in FY24 and will improve further to 2.1-2.4 per cent by the end of FY25. It can be noted that the Reserve Bank of India (RBI) began the comprehensive exercise in the middle of the last decade by instructing banks to classify certain s...
GNPAs of Indian banking system set to improve further to up to 2.1 per cent by end of FY25: Care Rating
GNPAs of Indian banking system set to improve further to up to 2.1 per cent by end of FY25: Care Rating
Source: Accord Fintech
2024-04-01 10:21:17 am
Credit off-take from banks continues to grow: CARE Ratings Credit off-take from banks continued to grow, increasing by 20.5 per cent year-on-year (y-o-y) to reach Rs 162.1 lakh crore, for the fortnight ending February 23, 2024, said CARE Ratings. In its latest report, CARE Ratings said the rise can continue to be attributed to the impact of HDFC’s merger with HDFC Bank along with the growth in personal loans. "If we exclude the impact of the merger, credit grew at 16.5 per cent y-o-y for the fortnight compared to last year’s gr...
Credit off-take from banks continues to grow: CARE Ratings
Credit off-take from banks continues to grow: CARE Ratings
Source: IANS
2024-03-13 11:09:51 am
Monetary Policy: RBI to continue with its cautious pause The Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) is expected to maintain the repo rate at 6.5 per cent and there would be no rate hike this fiscal, said economists at credit rating agencies and Bank of Baroda. They also said RBI's MPC at its upcoming meeting would revise upward the gross domestic product (GDP) forecast. According to credit rating agency CARE Ratings, the RBI will continue with its cautious pause with the repo rate at 6.5 per cent. The repo ra...
Monetary Policy: RBI to continue with its cautious pause
Monetary Policy: RBI to continue with its cautious pause
Source: IANS
2023-12-05 02:52:29 pm
Unsecured Lending: Opportunity for Growth or Looming Risk? By CareEdge Rating Synopsis • During the fiscal years 2017 to 2023, personal loan credit experienced robust growth of almost 1.5 times the overall credit growth observed in both Banks and Non-Banking Financial Companies (NBFCs). Within personal credit (which typically signifies consumption loans), unsecured personal loans outpaced the overall expansion of the personal loan book and constitute nearly one-third of the total personal loan segment loans. This trend has been further facilitated by the advent...
Unsecured Lending: Opportunity for Growth or Looming Risk? By CareEdge Rating
Unsecured Lending: Opportunity for Growth or Looming Risk? By CareEdge Rating
Source: CareEdge Rating
2023-11-26 12:16:13 pm
Personal Guarantor Recovery Set to Surge; Timelines Continue to Rise By CareEdge Rating Synopsis • The recovery rate from personal guarantors currently stands at 5.22%. This rate is anticipated to rise following the Supreme Court’s recent ruling affirming the constitutionality of the IBC provisions regarding Personal Guarantors’ Insolvency Resolution. This ruling implies that the personal assets of guarantors can now be utilised to settle outstanding debts owed to creditors. • The average time taken for resolution or liquidation continues to increase ...
Personal Guarantor Recovery Set to Surge; Timelines Continue to Rise By CareEdge Rating
Personal Guarantor Recovery Set to Surge; Timelines Continue to Rise By CareEdge Rating
Source: CareEdge Rating
2023-11-20 12:38:08 pm
Strong Signal by Regulator to Control Unsecured Personal Loans By CareEdge Rating Summary RBI has issued a notification to all lenders for inter alia an increase in risk weights by 25% on unsecured consumer credit (excluding housing, education, vehicle and by gold loans), increase in risk weights by 25% of bank credit to NBFCs assigned for the AAA-A rated portfolio, excluding PSL-compliant loans and HFCs and review / include sectoral limits for such loans. The personal loans as well as advances to NBFCs have been growing strongly and have been the primary driver of incr...
Strong Signal by Regulator to Control Unsecured Personal Loans By CareEdge Rating
Strong Signal by Regulator to Control Unsecured Personal Loans By CareEdge Rating
Source: CareEdge Rating
2023-11-18 01:20:41 pm
Strong signalling impact to deter growth in consumer credit There has been a sharp growth in unsecured lending in the past few years and the unsecured personal loan portfolio of the banking system has more than doubled from Rs 6 trillion in FY19 to Rs 13 trillion currently. Credit cards have grown at a faster pace, but off of a lower base, CLSA said in a report. The RBI is indirectly telling banks to slow unsecured loans and credit cards, foreign brokerage, CLSA said in a report. The RBI, on somewhat expected lines, increased the risk-weights on...
Strong signalling impact to deter growth in consumer credit
Strong signalling impact to deter growth in consumer credit
Source: IANS
2023-11-18 12:57:49 pm
EarlySalary Services Pvt. Ltd. (A Fibe Group Company) raises Rs. 30 crores via NCD issuance EarlySalary Services Pvt. Ltd. (A Fibe Group Company) has raised Rs. 30 crores via issuance of Non-Convertible Debentures (NCD) which are now listed on Bombay Stock Exchange (BSE). This issue marks the debut of EarlySalary Services Pvt. Ltd. on the BSE.  The issue was fully subscribed through private placement on the first day of subscription. The company also has a green shoe option of raising another Rs. 19 crores, which is also fully subscribed. AK Capital Services Ltd. was the sole a...
EarlySalary Services Pvt. Ltd. (A Fibe Group Company) raises Rs. 30 crores via NCD issuance
EarlySalary Services Pvt. Ltd. (A Fibe Group Company) raises Rs. 30 crores via NCD issuance
Source: PR Agency
2023-11-08 02:53:44 pm
Spread Compression on O/s Business of SCBs Persists, Touches a 9-year Low By CareEdge Rating Overview * In September 2023, outstanding deposit rates increased while outstanding lending rates weakened marginally. Meanwhile, rates on fresh business broadly declined * The spread of SCBs between WALR and WADTDR (the net interest rate spread) stood at 3.06% and 3.1% for Fresh and Outstanding rates, respectively in September 2023. The o/s SCB spread have been compressing over the last year and has reached a new 9-year low. PVBs continue to maintain a higher spread as compared to PSBs...
Spread Compression on O/s Business of SCBs Persists, Touches a 9-year Low By CareEdge Rating
Spread Compression on O/s Business of SCBs Persists, Touches a 9-year Low By CareEdge Rating
Source: CareEdge Rating
2023-11-04 10:31:54 am
Debt Quality Index: September 2023 By CareEdge Rating The CareEdge Debt Quality Index (CDQI) has witnessed the rising trend since November 2021. It registered marginal improvement to the level 93.87 in September 2023 as against 93.83 in August 2023 on account of upgrades in the investment grade rating categories. Exhibit 1: Movement in CDQI About the CDQI Index CareEdge Debt Quality Index (CDQI) denotes the quality of debt that can be interpreted over time and juxtaposed with other developments in the financial sector. The CDQI capt...
Debt Quality Index: September 2023 By CareEdge Rating
Debt Quality Index: September 2023 By CareEdge Rating
Source: Care Edge Rating
2023-11-03 11:33:44 am
Canada Stir Unlikely to Hit specialised Educational loan NBFCs Portfolio - CareEdge Rating Synopsis? As of December 31, 2022, Indian students comprise 39.5% of the total international student population in Canada. Notably, in terms of geography, Canada is the second-largest retail education loan portfolio outstanding for specialised education loan Non-Banking Financial Companies (NBFCs), with the United States being the only country ahead. The exposure to the Canadian market has witnessed a robust compounded annual growth rate of 77.5% from March 31, 2021, to June 30, 2023. ? ...
Canada Stir Unlikely to Hit specialised Educational loan NBFCs Portfolio - CareEdge Rating
Canada Stir Unlikely to Hit specialised Educational loan NBFCs Portfolio - CareEdge Rating
Source: CareEdge Rating
2023-10-16 03:36:07 pm
Life Insurance: Non-Single Premiums Lead the Growth Charts, But Fall in Overall Single Premiums Drag - CareEdge Ratings Overview Following robust growth in FY23, first-year premium numbers in September 2023 witnessed a decline of 15.5%, an improvement from the 18.5% decrease observed in August. This trend was preceded by a more substantial drop of 28.7% in July and compares unfavourably to a 17.3% increase in September 2022. Several factors contributed to this decline, including a substantial reduction in group premiums, particularly attributable to LIC, introduction of a new tax regime, and the significant mo...
Life Insurance: Non-Single Premiums Lead the Growth Charts, But Fall in Overall Single Premiums Drag - CareEdge Ratings
Life Insurance: Non-Single Premiums Lead the Growth Charts, But Fall in Overall Single Premiums Drag - CareEdge Ratings
Source: PR Agency
2023-10-11 05:13:10 pm
Credit Offtake Continues to Grow while Credit-Deposit Ratio Hits 2-Year High By CareEdge Rating Synopsis* Credit offtake continued to grow, increasing by 20.0% year on year (y-o-y) to reach Rs. 151.5 lakh crore for the fortnight ended Sep 22, 2023. This surge continues to be primarily driven by the impact of HDFC?s merger with HDFC Bank and growth in personal loans. Meanwhile, if merger impact is excluded, credit grew at a lower rate of 15.3% y-o-y fortnight compared to last year. The outlook for bank credit offtake remains positive, with a projected growth of 13-13.5% for FY24, exc...
Credit Offtake Continues to Grow while Credit-Deposit Ratio Hits 2-Year High By CareEdge Rating
Credit Offtake Continues to Grow while Credit-Deposit Ratio Hits 2-Year High By CareEdge Rating
Source: CareEdge Rating
2023-10-10 05:15:37 pm
RBI`s Hawkish Pause Continues By CareEdge Rating In line with the expectations, the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) has unanimously decided to maintain the benchmark repo rate at 6.5% during the October bi-monthly policy meeting. Concurrently, the MPC has upheld its stance at 'withdrawal of accommodation' with a 5:1 majority. Notably, the policy's wording had a hawkish undertone as the governor sounded cautious about inflation and indicated the RBI's intention to keep the liquidity conditions tight.Con...
RBI`s Hawkish Pause Continues By CareEdge Rating
RBI`s Hawkish Pause Continues By CareEdge Rating
Source: Care Edge Rating
2023-10-07 02:39:05 pm
Retail Asset Securitisation Crosses Rs. 1L Cr, Poised for an All-time High By CareEdge Rating The securitization market had a strong start in the current fiscal year, with a total volume of ?55,000 crore in Q1FY24. This momentum has continued throughout the first half of the fiscal year, with the cumulative volume for H1FY24 surpassing ?1,00,000 crore, as estimated by CARE Ratings. This figure includes both pass-through certificate (PTC) issuances and direct assignment (DA) transactions. The growth has been primarily driven by robust credit expansion and a sustained demand for loa...
Retail Asset Securitisation Crosses Rs. 1L Cr, Poised for an All-time High By CareEdge Rating
Retail Asset Securitisation Crosses Rs. 1L Cr, Poised for an All-time High By CareEdge Rating
Source: Care Edge Rating
2023-10-07 02:30:18 pm
MFs Exposure to NBFCs` O/s CPs Remains Above Rs 1 Lakh cr in August By CareEdge Rating Synopsis* The credit exposure of banks to Non-Banking Financial Companies (NBFCs) stood at Rs 13.8 lakh crore in August 2023, indicating a 25.8% year-on-year (y-o-y) growth. This expansion is indicative of the robust progress observed in NBFCs during the post-pandemic period. Furthermore, the proportion of NBFC exposure in relation to aggregate credit has risen from 8.8% in August 2022 to 9.3% in August 2023. On a month-onmonth (m-o-m) basis, the amount rose by 0.6%. * Meanwhile, the Mutu...
MFs Exposure to NBFCs` O/s CPs Remains Above Rs 1 Lakh cr in August By CareEdge Rating
MFs Exposure to NBFCs` O/s CPs Remains Above Rs 1 Lakh cr in August By CareEdge Rating
Source: Care Edge Rating
2023-10-04 01:23:44 pm
Corporate India: On a Steady Course Amid Challenges? - CareEdge Ratings CareEdge Ratings' credit ratio, which measures the ratio of upgrades to downgrades, continued to witness normalisation at 1.67 in H1FY24 in line with our expectations, moderating from 2.72 in H2FY23 and 3.74 in H1FY23. The ratio is now slightly higher than its 10-year average of 1.54. During H1FY24, CareEdge Ratings upgraded the ratings of 217 entities and downgraded the ratings of 130 entities. The credit ratio of the Below Investment Grade (BIG) portfolio, plunging down from 2.22 in H2...
Corporate India: On a Steady Course Amid Challenges? - CareEdge Ratings
Corporate India: On a Steady Course Amid Challenges? - CareEdge Ratings
Source: PR Agency
2023-10-01 01:56:45 pm
Credit Offtake Remains High, CASA Share Reduction Continues in Deposits By CareEdge Rating Synopsis* Credit offtake rose by 15.9 % (y-o-y) for the first quarter of FY24. In absolute terms, credit expanded by Rs.9.8 lakh crore from June 2022. The growth has been driven by sustained personal loan demand and NBFCs. * Deposits witnessed a slower (compared to credit) growth at 12.6% (y-o-y), supported by term deposits which were offset by high base and slow CASA growth.* Scheduled Commercial Banks? (SCBs) y-o-y growth in term deposits at 17.4% outperformed current account and saving...
Credit Offtake Remains High, CASA Share Reduction Continues in Deposits By CareEdge Rating
Credit Offtake Remains High, CASA Share Reduction Continues in Deposits By CareEdge Rating
Source: Care Edge Rating
2023-09-29 05:41:22 pm
Banks` Robust Performance in Net Profit Drives RoA in Q1FY24 By CareEdge Rating Synopsis* Scheduled Commercial Banks? (SCBs) net profit grew by 68.9% y-o-y to Rs. 0.73 lakh crore for Q1FY24 due to robust growth in Pre-Provisioning Operating Profit (PPOP) and lower provisions. * Public Sector Banks (PSBs) reported strong net profit growth of 124.8% y-o-y to Rs. 0.34 lakh crore in Q1FY24. * Private Sector Banks (PVBs) also posted a growth of 38.4% y-o-y to Rs. 0.39 lakh crore in the quarter. * Return on Assets (RoA, annualised) of SCBs improved by 44 bps y-o-y to 1.31% in ...
Banks` Robust Performance in Net Profit Drives RoA in Q1FY24 By CareEdge Rating
Banks` Robust Performance in Net Profit Drives RoA in Q1FY24 By CareEdge Rating
Source: Care Edge Rating
2023-09-29 12:37:17 pm
SCBs Witness All-Time Low Net Non-Performing Asset Levels By Care Edge Rating Synopsis* Gross Non-Performing Assets (GNPAs) of Scheduled Commercial Banks (SCBs) reduced by 25.6% y-o-y to Rs. 5.32 lakh crore as of June 30, 2023, due to lower slippages, steady recoveries & upgrades and writeoffs. Gross NPAs dropped in Q1FY24, despite a healthy growth of advances of 16.7% y-o-y in the same period. The GNPA ratio of SCBs reduced to 3.7% as of June 30, 2023, from 5.7% over a year ago. * Net Non-Performing Assets (NNPAs) of SCBs reduced by 34.7% y-o-y to Rs. 1.25 lakh...
SCBs Witness All-Time Low Net Non-Performing Asset Levels By Care Edge Rating
SCBs Witness All-Time Low Net Non-Performing Asset Levels By Care Edge Rating
Source: Care Edge Rating
2023-09-26 04:33:33 pm
Dollar-rupee to trade in Rs 82-84 in 2HFY24: CARE Ratings The US dollar-Indian rupee exchange rate will fluctuate between Rs 82 and Rs 84 during the second half of FY24, CARE Ratings said in a report.According to the credit rating agency, the rupee breached the Rs 83 against a dollar recently, but its decline has been curtailed by interventions by the Reserve Bank of India (RBI) across various markets, including the spot, non-deliverable forward (NDF), and futures markets.?In the second half of the fiscal year 2023-24, we anticipate the USD/INR exch...
Dollar-rupee to trade in Rs 82-84 in 2HFY24: CARE Ratings
Dollar-rupee to trade in Rs 82-84 in 2HFY24: CARE Ratings
Source: IANS
2023-09-23 04:48:01 pm
NII & Treasury Income Drive PPOP Growth y-o-y, but it Decelerates q-o-q By Care Edge Synopsis* Scheduled Commercial Banks? (SCBs) Pre-Provisioning Operating Profit (PPOP) grew by 42.8% year-on-year (y-o-y) to Rs 1.3 lakh crore due to higher growth in Net Interest Income (NII), growth in treasury income, a low base and lower growth in Operating Expenses (opex). It marginally grew by 0.2% on a sequential basis. * The cost-to-income ratio of SCBs reduced by 333 bps y-o-y to 47.7% in Q1FY24 due to higher growth in NII than opex and robust growth in PSBs treasury income an...
NII & Treasury Income Drive PPOP Growth y-o-y, but it Decelerates q-o-q By Care Edge
NII & Treasury Income Drive PPOP Growth y-o-y, but it Decelerates q-o-q By Care Edge
Source: Care Edge Rating
2023-09-20 05:04:04pm
JK Tyre rating upgraded `CARE A+` by CARE Ratings Rationale and key rating driversThe revision in the ratings for the bank facilities and instruments of JK Tyre and Industries Limited (JKTI) takes into account the improved operational and financial performances of the company in FY23 (refers to the period from April 1 to March 31) as characterised by increasing scale of operations, better working capital management and improved leverage and coverage indicators, which is expected to sustain going forward as well. During FY23, the consolida...
JK Tyre rating upgraded `CARE A+` by CARE Ratings
JK Tyre rating upgraded `CARE A+` by CARE Ratings
Source: PR Agency
2023-09-16 12:34:45pm