Mumbai: Asset reconstruction companies (ARCs) are seeking liquidity support from the Reserve Bank of India’s initiative to provide long-term funds at repo rate to banks for specific investments, two people in the know said. ARCs have written to central bank governor Shaktikanta Das, requesting to allow investment-grade papers issued by them to be considered by banks for investment under the targeted long-term repo operation (TLTRO) funds, they said. Introduced in late March as a tool to boost liquidity in the system, TLTRO allows banks to borrow money from the central bank for one to three years at repo rates with a rider that this fund must be used to invest in investment-grade corporate debt. ARCs, which deal with stressed companies, have been facing cash flow issues, especially for those companies undergoing restructuring. Hence, a liquidity line from the RBI is important, the chief executive of a large ARC said on condition of anonymity. “Even though we are not … [Read more...] about Asset recast companies seek a bite of RBI’s special funds pie
Rp funding direct mortgage lender
Have a longer timeframe. Ideally, gilt funds are great to book high returns in debt using a timed entry and exit – i.e., investments made early in a rate cut regime and exits done before interest rates are hiked. But this requires understanding of debt markets and rate cycles. In the absence of this understanding, holding a gilt fund for at least 5-7 years will give the benefit of no credit risk plus reasonable returns. … [Read more...] about Double-digit returns in gilt funds: Should you rush to invest in them?
The Heroes Act would provide nearly $1 trillion for states, cities and tribal governments to avert layoffs and additional $200billion in “hazard pay” for essential workers, according to a summary. … [Read more...] about Next coronavirus stimulus check might not be a direct payment and could be a ‘tax credit to learn new skills’
Microfinance firms and small finance banks are desperately looking to boost repayment collection to revive cash flow and resume loan disbursement to restore normalcy in credit cycle even as the Reserve Bank of India extended moratorium on payment till August 31 for borrowers under stress. The prime concern expressed by microfinance leaders now is that the extended moratorium might increase stress and derail the robust credit discipline that they nurtured over the years. "It's a disaster," said a chief executive of an MFI. "Many of the borrowers may not able to service loans after the six month of repayment holiday." Merely about 15% borrowers have shown willingness to start repayment till the third week of May, people familiar with the matter said. Repayment rates were down to 12% till the end of April, according to Sa-Dhan, an industry body. "Since rural economic activities are up and running since May 4, we would give moratorium only to those who are facing difficulties in … [Read more...] about Microfinance lenders aim at repayment collection, restoring credit cycle amid rising stress
MCG officials said the Faridabad civic body was further short of funds and unable to pay the tipping fees to the waste collection concessionaire Ecogreen Private Limited for April. Subsequently, the Haryana government directed MCG to pay tipping fees to Ecogreen on behalf of the Municipal Corporation of Faridabad (MCF) from this month. … [Read more...] about Gurugram to fund garbage collection in Faridabad
NEW DELHI: A 22 per cent drop in profit that HDFC reported for March quarter met consensus expectations, but a deterioration in asset quality disappointed many. Analysts expect the risks to escalate, but are confident of HDFC's risk management practices, given its strict underwriting norms and provision buffer. Most analysts maintained a 'buy' rating on the stock with target prices ranging from Rs 1,900 to Rs 2,200. The stock traded around the Rs 1,490 level on Tuesday. The real estate sector has been among worst-hit by the national-wide lockdown. The impact of the same would trickle down to associated entities, including financiers, Phillip Capital said, adding that the increasing stress in construction finance witnessed in March quarter can accentuate in the subsequent quarters. HDFC said gross non-performing loans (NPLs) as of March 31, 2020, stood at Rs 8,908 crore. This is equivalent to 1.99 per cent of the total loan portfolio. In comparison, gross NPA stood at 1.18 per cent … [Read more...] about What makes analysts retain ‘buy’ on HDFC after Q4 nos