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Thus, from the above and the submission of the Trustees, it is evident that some stress in debt schemes started from IL&FS in 2018 and from October 2019 the issues compounded. Since the schemes were following a different strategy of primarily investing in AA and A rated security, the inherent risk was always on the higher side. The Trustee Board ought to have monitored the situation with a special focus because of the above strategy adopted. Such downgrades did not impact the Schemes i.e., downgrades in this period were rising across the industry.
However, as the structure of a collateralized debt obligation is deemed complex, you must invest in one only after understanding the collateralized debt obligation meaning in detail. Smaller banks or mortgage brokers sell them to investment banks in bulk. Also, small banks and mortgage lenders like Washington Mutual and Wachovia marketed financed loans to larger banks and mortgage businesses like Countrywide, Fannie Mae, and Freddie Mac. Bespoke Tranche Opportunity is a type of collateralized debt obligation .
As on December 31, 2017, the Real Estate Fund has returned an aggregate of ~66% of the capital contribution received by it in Indian Rupee terms. During the quarter, in IPO financing business, we funded 21 IPOs wherein the aggregate amount of funding was around Rs. 13,204 Cr. As on September 30, 2017, the Real Estate Fund has returned an aggregate of 65.6% of the capital contribution received by it in Indian Rupee terms. During the quarter, in IPO financing business, we funded 16 IPOs wherein the aggregate amount of funding was around Rs. 15,664 Cr. As on March 31, 2018, the Real Estate Fund has returned an aggregate of ~72% of the capital contribution received by it in Indian Rupee terms.
Saving the Employees’ State Insurance Scheme
The last quarter has seen a significant increase in sales velocity across all geographies we are present in. Efforts made by some state governments along with measures by the central government have helped developers in many ways. The reduction in stamp duty, coupled with the correction in prices along with the general view that prices have bottomed out has helped increase the demand for residential real estate. We have also seen rapid consolidation and believe that going forward the industry will have very few players and the market share of the larger developers will continue to increase.
- It is also known as the diamond city for its flourishing diamond industry and the silk city of India for its well-established silk industry.
- Furthermore, as two private parties agree on the contract, it is susceptible to counterparty risk.
- Out of the said lending book, the Corporate Credit & Structured Financing was Rs. 2,766 Cr and Capital Market lending book stood at Rs. 2,380 Cr, the Real Estate lending at Rs. 1,897 Cr.
The average AUM of our Mutual Fund schemes during the quarter ended March 31, 2018 stood at Rs.16,365 Cr; comprising of Rs.11,313 Cr in equity schemes and Rs.5,052 Cr in debt schemes. Commenting on the fund raise Mr. Vishal Kampani, Managing Director, JM Financial Group, said, “The Fund Raise is in line with our philosophy to be conservatively leveraged and maintain strong liquidity cushions within the JMFL Group. We platykurtic have continuously endeavoured to diversify our funding sources in JMFCSL through a public issue of bonds in May 2018. The group has successfully raised ~Rs.1,379 crore worth of equity funds till date in the calendar year 2018”. The average AUM of our Mutual Fund schemes during the quarter ended September 30, 2018 stood atRs. 12,672 Cr; comprising of Rs. 8,439 Cr in equity schemes and Rs. 4,233 Cr in debt schemes .
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During the quarter, the asset reconstruction business actively participated in several auction processes and also pursued single credit accounts with banks. We managed to close four deals – two as part of debt aggregation and two fresh acquisitions. With high level of NPAs and restructured assets in the banking system and a greater thrust by the Reserve Bank of India for controlling the NPAs, the market will continue to present plenty of opportunities and we are well positioned to capitalize on the same. The AUM of our wealth management business stood at over Rs. 23,386 crore as on December 31, 2015. We have presence in 7 major cities in India with team of more than 50 experienced wealth advisors catering to Ultra High Net worth families, High Net Worth families and corporate treasuries. We have plans to increase the employee strength by recruiting additional 50 wealth advisors in near future.
The recommendations of the Regulations Review Authority enabled streamlining and incrementing the effectiveness of various procedures and simplified regulatory prescriptions. It paved the way for issuing master circulars and reduced reporting burden on regulated entities; the RBI had said in April last year while announcing the setting up of RRA 2.0. Regulations Review Authority 2.0 focuses on properly streamlining regulatory instructions, reducing requirements for reporting wherever possible, and reducing the burden of compliance of the regulated entities by simplifying procedures and processes. The Reserve Bank of India stated the Regulations Review Authority(RRA 2.0) had recommended withdrawing an additional 225 redundant circulars on the RBI website. The Reserve Bank had set up the RRA 2.0 to reduce the burden of compliance on REs.
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Lead Manager to the public issue of Non-Convertible Debentures of JM Financial Products Limited (~Rs. 387 Cr). In Series 1, Coupon rate will be paid on an annual basis at a rate of 10.20%; and the tenor is 38 months. The minimum application amount is Rs. 10,000/- collectively across all Series of NCDs and in multiples of One NCD of face value of Rs. 1,000/- each after the minimum application. The Issue is scheduled to close on Wednesday, September 4, 2019 with an option of early closure https://1investing.in/ or extension as decided by the Board of Directors of the Company (“Board”) or the NCD Public Issue Committee constituted by the Board of Directors. Smaller developers are finding it difficult to record good sales when the project is under construction. In such cases we are working proactively to get in another reputed developer to buy the project or enter into Joint Developer Agreements or Development Management Agreements to ensure timely execution and sales of the project.
Who are CLO managers?
CLO Manager means any Person (other than a natural person) which manages, advises, services or administers a Fund, the Capital Stock of which is the subject of a first priority perfected security interest in favor of the Administrative Agent.
This quarter, in line with previous two quarters, also witnessed good recoveries given the continued focus on resolution and recoveries. On acquisition front, as planned, we continued our efforts on aggregation of balance debt, and looking for new opportunities. The platform powered by intensive insights on fixed income investment, aims to also educate investors on various aspects of investments thereby enabling them to make an informed decision. Bondskart.com also provides investors with the flexibility to sell their debt securities with secure settlements, adding liquidity as a utility function to the platform. We had adopted a cautious approach due to the challenges faced since the COVID-19 pandemic. We maintained strong liquidity buffers to mitigate any unforeseen challenges.
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Our long term borrowing as a proportion of total borrowing stood at approximately 68% as on December 31, 2018. During the quarter, we successfully concluded the second tranche of the public issue of secured Non-Convertible Debentures by JM Financial Credit Solutions Ltd and raised ~Rs.264 Cr (for the full year till date we have raised ~Rs.1,014 Cr). We have always guided that there will be a rapid consolidation in the real estate space and believe that the market share of the larger developers will increase substantially. With almost negligible amount of price appreciation in residential real estate over the last 6-7 years, investors are completely out of the market.
There have been some positive actions by the RBI and RERA to provide some relief to the struggling sector. Mortgage Lending The total mortgage lending book stood at Rs. 7,651 Cr as March 31, 2020. Our wholesale mortgage lending focuses on Tier – 1 cities, viz., Mumbai, Thane, Pune, Bangalore, Chennai, Hyderabad, Kolkata and NCR. After investing in the right talent, technology and processes, our retail mortgage lending business is all set to build its niche and achieve scale. During the quarter, our retail mortgage lending announced the co-lending arrangement with Bank of Baroda to further boost the momentum. The investment opportunities in distressed asset space in India are growing.
The average AUM of our Mutual Fund schemes during the quarter ended June 30, 2019 stood atRs. 7,710 Cr; comprising of Rs. 4,642 Cr in equity schemes and Rs. 3,068 Cr in debt schemes . The average AUM of our Mutual Fund schemes during the quarter ended December 31, 2019 stood atRs. 5,683 Cr; comprising of Rs. 4,143 Cr in equity schemes and Rs. 1,540 Cr in debt schemes .
According to the RBI, it should start operating in the second half of 2022. RBI has looked into the idea of connecting UPI with comparable systems in other jurisdictions, particularly in the G20 countries, to improve cross-country and international payment arrangements. In addition, the apex bank claims to participate in the discussions over the fundamentals and roadmap of UPI and cross-country remittance with the Committee on Payments & Market Infrastructures and Financial Stability Board .
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Our holistic approach enables us to create an investment strategy aligned with your unique goals. We build with you, and empower you to build beyond finance to a more fulfilling life. Signzy is enabling ten million+ end customer and business onboarding every month at a success rate of 99% while reducing the speed to market from 6 months to 3-4 weeks.
How do you make money with CLO?
The key to making money, for both banks and CLOs, is (1) to have as big a spread as possible between the interest rate you collect on your loan portfolio, and the rate you pay on your bank deposits or CLO borrowings, and (2) to leverage that borrowing as much as you prudently can, so you can collect the spread multiple …
We continue to maintain liquidity buffers and healthy leverage ratios. The cash and cash equivalent as on September 30, 2020 stood at Rs. 2,831 Crore and our net debt-equity ratio stands at 0.89x. As on December 31, 2021 our long term borrowing as a proportion of total borrowing stood atapproximately 79%. Borrowing through Commercial paper consistedapproximately 13%of the total borrowing as on December 31, 2021. CPs were utilized primarily towards the financing of short-term liquid assets.
- Includes diminution / in fair value of investments amounting to~ Rs.5 Cr for Quarter ended Dec 31, 2018 and ~Rs.3 Cr for quarter ended Dec 31, 2017.
- Although, we saw a lot of FII selling due to uncertainty in emerging and global markets, the domestic institutions continued to buy Indian equities.
- Out of the said lending book, the real estate lending book stood at Rs.5,670 crore and the capital market and other lending book at Rs.1,664 crore.
- On account of these guidelines, we expect banks to move from security receipt based sell down to cash based sell down.
It is noted that during the period of October 2019 to March 2020 there were 8 instances of put options in FIUBF scheme which the FTMF had not exercised and the total market value of that securities as on the date of put option was around 900 Crore. Further, there were 15 instances of interest rate reset wherein the scheme had not exited even though the security had become illiquid and the amount involved is 4,708 Crore. Similarly, in the low duration scheme, during the period of October 2019 to March 2020 there were 4 instances of put option which were not exercised and the amount involved was 315 Crore. These instances of non-exercise of put option was part of the forensic audit/inspection observations also.