By Cyrus P Mistry I had just returned to India having completed my undergraduate degree in Britain when the Indian government announced major economic reforms in July 1991. A series of momentous changes would soon lead to the dismantling of the licence permit-quota raj. Indian corporates could now chart their own destiny with fewer curbs on their ambition.
MUMBAI: Bank of India, one of the largest state-owned lenders, has shut its door to builders and corporates with lower credit rating, a move aimed at saving capital and checking bad loans. In an internal note to its offices across the country, the management of Bank of India has directed that fresh funds -such as loans and non-fund exposure like guarantees -to such corporate borrowers should be put on hold till end of September.
MUMBAI: Top-tier investment fund WestBridge Capital has raised another $575 million, or Rs 3,735 crore, to back Indian companies, taking its assets under management to $2 billion, the fastest scale-up for any domestic-focused fund. The fresh infusion of capital is indicative of the long-term bullishness around India among global limited partners (LPs), or investors in funds, who have been endorsing a select group of home-grown funds with a successful track record.
MUMBAI: From a sovereign credit perspective, inflation has been the constraint on India's rating, not GDP growth as India has outperformed emerging markets on growth, but underperformed when it comes to inflation, said Atsi Sheth, senior V-P, sovereign risk group, Moody's Investors Service, Singapore. In an interview with ET, she bets on India as the fastest growing economy among similar rated sovereigns, despite a lower-than-expected June quarter GDP growth. Which is a bigger threat -- slower GDP or inflation?
NEW DELHI: Giving thumbs up to PM Narendra Modi-led NDA government, Moody's on Thursday revised India's outlook to 'positive' from 'stable', while maintaining the credit rating at Baa3. According to Moody's the policymakers are establishing a framework that will allow the country's growth to continue to outperform that of its peers over the medium-term and improve India's macro-economic, infrastructure and institutional profile.
From a sovereign credit perspective, inflation has been the constraint on India's rating, not GDP growth as India has outperformed emerging markets on growth, but underperformed when it comes to inflation, said Atsi Sheth, senior VP, sovereign risk group, Moody's Investors Service, from Singapore. In an interview with Saikat Das, she said that she bets on India as the fastest growing economy among similar rated sovereigns, despite a lower-than-expected June quarter GDP growth. Edited excerpts: Which is a bigger threat — slower GDP or inflation?
Kathleen Kahle, a professor at the University of Georgia's business school, offers another reason: the growth of high-tech companies, which tend to hold lots of cash. Younger, riskier firms have more difficulty raising money when credit is tight, so they keep more cash on hand, she says. "At the same time, they have a lot of growth opportunities and want to make sure that they have the funds necessary to invest in good projects," she adds.
NEW DELHI: The cement industry in India is nearing an upward cycle based increased infrastructure spending by the government. Northeast India is likely to be a key beneficiary of higher government spending. Jefferies India said companies having exposure to this and other favourable regions, as derived from a parts of the sum ranking system, should outperform peers in the sector on asset valuations, even before earnings come through.