Private equity (PE) investors, who are sitting on a record cash pile, are turning cold to pure play equity investment after the Covid-19 pandemic and the subsequent economic lockdown leading to increased uncertainty about the future of a business. As a natural corollary, their expectations on return on capital too have changed in tandem with their changing risk perceptions. To put it succinctly, the pandemic has tempered the risk-taking ability of PE investors substantially since the ready-to-go gauges like return on investment and the real growth of a business based on future cash flow projections are no longer amenable to any forecasting models.The volatile market has made it near nigh impossible to time the exit as well. This is what will drive a large number of PE players, who in their race to stay ahead of the curve, to change their investment style to a flexible structure that ensures certain minimum returns on the capital deployed or to peg the valuations based on the future … [Read more...] about Covid-19 Impact: Why are PE investors shying off from pure equity deals?
Investors bank routing number
Mumbai: Yes Bank will have to grapple with fresh allegation and evidence that indicates how its officials had misled retail investors to peddle perpetual bonds. Axis Trustee, which represents the bondholders, is understood to have signed a new affidavit to state that the securities — commonly known as additional tier-1 or AT1 bonds — were marketed as ‘Super Fixed Deposits’ by relationship managers (RMs) of Yes Bank. “Along with the new affidavit, the legal counsels of Axis will submit before the court copies of emails from Yes Bank RMs to multiple investors. The investors were given an impression that AT1 bonds were not only risk-free, but also offered a higher return than regular FDs. In fact, RMs advised Yes Bank FD holders to break their deposits and invest the money in AT1 bonds,” an official with one of the institutional investors told ET. The signed statement, email copies, names of Yes Bank RMs and statements given by investors to the … [Read more...] about Axis Trustee alleges Yes Bank sold AT1 bonds as ‘Super FDs’
NEW DELHI: Investors became poorer by Rs 3,65,469.88 crore on Monday as the The 30-share BSE index ended 1,068.75 points or 3.44 per cent lower at 30,028.98. Following the weak trend in equities, the market capitalisation of BSE-listed companies dropped Rs 3,65,469.88 crore to Rs 1,19,00,649.71 crore. "With the stimulus package announced by the government not seen as adequate considering the need of the hour and with infections continuing unabated, the markets ended down by around 3.4 per cent, in spite of positive global cues," Vinod Nair, Head of Research at Geojit Financial Services said. "Most measures may be seen as a long-term positive and markets were more worried about the immediate impact of these measures. With concerns about rising NPAs, financials were most affected. Uncertainty is likely to continue impacting the market performance," he added. Markets ended sharply lower as the Rs 20 lakh crore economic package, announced in five tranches, failed to lift investors' … [Read more...] about Investor wealth erodes by Rs 3.65 lakh crore as markets plummet
The ED & CFO, Federal Bank, says savers need to be encouraged and given a reasonable return on their deposits. The commentary all this time has simply been that there is no real liquidity issue, there is enough liquidity in the system. We have seen a tepid response to the first two round of cuts by the RBI and the question has always been whether there has been transmission by the banks. The Governor said banks have improved their transmission but the risk aversion still remains. Do you think there is going to be enough of a demand for credit and is risk aversion a real concern for banks as well? Almost 90 per cent of the balance sheet of Indian banks on the liability side is from public deposits. Within that even if you take about 35-40 per cent of CASA, the remaining part is term deposits and these are also called fixed deposits. What this means is that you are committed to pay a fixed rate of interest to your depositors. Basically, the entire loan and advances portfolio is … [Read more...] about If there is demand for credit, banks are ready to lend: Ashutosh Khajuria
Mumbai: State-run Bank of Baroda on Saturday said it can offer up to Rs 12,000 crore in loans to MSMEs under the Rs 3 lakh crore Emergency Credit Line Guarantee Scheme (ECLGS) announced by the government. Last week, Finance Minister Nirmala Sitharaman had announced a 100 per cent credit guarantee scheme worth Rs 3 lakh crore to support the medium, small and micro enterprises (MSMEs) which have been adversely affected by the coronavirus crisis. All existing MSME borrowers with outstanding credit of up to Rs 25 crore as on February 29 and with an annual turnover of up to Rs 100 crore would be eligible for funding under the scheme. "In our case, that particular portfolio amounts to be Rs 58,000 crore. So, 20 per cent of that would be around Rs 10,000 crore to Rs 12,000 crore. This, we can make available to our MSME clients in the times to come under the guaranteed scheme of the government," the bank's Managing Director and CEO Sanjiv Chadha told reporters through a video conference. The … [Read more...] about Bank of Baroda to offer up to Rs 12k cr loans to MSMEs under credit guarantee scheme