• MORE MARKET STATS

Shobhana Subramanian

Articles By Shobhana Subramanian

209 Articles

What the IBC needs to become better

More accountability across the chain would further strengthen the most effective insolvency law India has had so far

It wants liquidators to be more accountable. In fact, a little more accountability across the chain would strengthen the Code.

IBC is good, tweaks can make it better

The conflict between the sanctity of the insolvency resolution process and maximising value must be sorted out

The Mumbai NCLT bench, for instance, recently alerted the National Company Law Appellate Tribunal that the price that Vedanta paid for Twin Star was uncannily close to the liquidation value. Some checks and balances are clearly needed.

Online shopping will not replace offline, both will continue to grow: Shashwat Goenka, head of retail & FMCG, RP-Sanjiv Goenka Group

Having said that, the offline retail business did get impacted in the early days of the lockdown last year as people were scared to step out.

Shashwat Goenka, head, retail & FMCG, RP-Sanjiv Goenka Group

Household debt may not be a big worry

Meanwhile, household-savings-to-GDP remains above the hisorical rate, and some spending will give the economy a lift

The biggest chunk of financial savings is usually in the form of bank deposits—a little over 50%—though the amounts do tend to vary from quarter to quarter, for reasons that are not always clear; for instance, between September and December last year, the share of household-deposits-to-GDP fell from 7.7% to 3%.

Hike corporation taxes now: GVA underscores disparity between India Inc & MSMEs

A retrospective higher tax for FY21 not out of place

On the contrary, fat-cat corporations and banks that were, in any case, raking it in, pocketed the gains.

NDA failed to do its job on the economy: Big job-creating schemes needed to revive consumer demand & small businesses

At the last count, the cumulative loss of salaried jobs, since the pandemic, was 12.6 million across urban and rural areas; as of April 2021, there were just 73.3 million of them.

While the average recovery from toxic assets was to the tune of 39% of creditors’ claims until March 2021, in some cases, the haircuts were as high as 95%.

Year of revival turns year of survival

With banks unwilling to lend, the govt must tap retail savings for capex and welfare spend; also, it must increase corporate tax rates

This translates into monetary losses of more than $6 trillion in present value terms. In such a scenario, climate change-induced economic losses to India would be almost $35 trillion in the next half of the century.

Sunil Jain was a fearless writer and hands-on boss, committed to high standards of journalism

Through the pressures, he never lost his sense of humour and the newsroom was always a fun place to be in when he was around.

Sunil Jain

RBI’s latest moves should help buffer small businesses against impact of second Covid wave, but much rests on banks

Bankers must be relieved the Governor hasn’t asked them to offer borrowers a moratorium on the repayment of interest and principal.

To try and facilitate credit flows in staying strong, Das, on Wednesday, announced measures that will help keep the liquidity in the system more abundant than it already is.

More job-loss ahead, raise govt spending

There is now a real danger of structural damage to the economy; the govt must quickly come up with a new relief package

The RBI had in April (before the full fury of the Covid resurgence) pegged the FY22 growth rate at 10.5%.

Raise the corporate tax rate; big firms will gain share from MSMEs in recovery, should pitch in with welfare

The big companies can afford to pay a 30% corporate tax for a few years. The additional revenue can be used to bring succour to MSMEs, increase MGNREGA allocations, even lower personal tax rates to boost consumption, which, i

Corporate numbers have been good because, though the economy isn’t exactly on fire, companies are able to raise prices to pass on the higher costs of inputs.

Covid-19: And the bad news keeps rolling in

The second wave, not yet over, will crush MSMEs further and, with it, the hopes of FY22 being the big-recovery year

Corporate profits are also getting a boost from the huge cost-cuts, but that is hurting the larger economy.

Till Covid-19 is in the air, RBI’s stance is clear

With economic revival likely to take a hit due to the latest Covid surge, RBI will continue to keep policy accommodative

economy

Large gains for OTT in 2021: With theatres likely to remain empty for longer, more producers may release films on OTT platforms

A string of recent releases — Roohi, Mumbai Saga, Sandeep Aur Pinky Faraar and Saina — haven’t done too well at the box office and, much like in 2020, many more filmmakers are now likely to release their films on stream

And, indirect jobs, as per an EY expert, could be the cherry on top of the icing if India becomes “the world’s back office for production and post-production.”

Fintech revolution needs regulatory help

They have cracked the payments piece but to do the same in the lending space, fintechs need important permissions from RBI

To be sure, merchants would opt for a waiver of the MDR, typically 2-3% on the value of the purchase, only if they are severely strapped for cash. Else, it would not make sense for them to give up the float.

Between Supreme Court & govt, banks lose freedom

SC did well to allow banks to declare loans as NPAs, but not allowing them to charge penal interest was a bad idea

Deposits increased 6.7% y-o-y to Rs 5.52 lakh crore at the end of June 2020. The current account savings account (CASA) ratio stood at 43.22% at the end of Q1FY22, higher than 40.61% a year ago.

‘RuPay’s market share by volumes is 34%’

E-commerce is a very significant driver, but we are also seeing a lot of other interesting categories emerge. For example, we now have some of the bus transport corporations going live on UPI.

CFO of the Year: Saurabh Agrawal – The man who loves numbers

But only a little. Unscrambling the 100-odd businesses at the $100-billion conglomerate is a never-ending process.

In between buying, selling and merging businesses, Agrawal is trying to create a cohesive unit for defence manufacturing; there’s also the not-so-small matter of allocating resources to the group’s focus areas: digital, consumer and financial services.

Survived Covid, long recovery ahead

Services won’t recover till vaccine is fully rolled out and, within manufacturing, it is bigger firms that are doing well

GDP growth in FY21 is now estimated to grow at a slightly weaker minus 8%, from the minus 7.7% estimated earlier.

Reserve Bank continues to help the recovery

Though bond yields will harden, the central bank has done well to give banks some more time to fix their bond portfolio

RBI

Union Budget 2021: Tap household savings for budget

Union Budget 2021 India: If that is done, it will reduce the dependence upon the bond market, and the costs will also be lower for govt

Budget 2021-22, Union Budget 2021

Organised cheer, unorganised fear: Master show, pent-up demand and K-shaped recovery

India is witnessing the classic K-shaped recovery with the formal sector doing well while the informal one lags

Indeed, in the short run, the accumulated savings of high earners can support the economy.

No V-shaped recovery this: Only big firms doing well, labour participation is low, investments weak

Until the informal economy is back on its feet, we can’t call a recovery.

economy

Don’t let the Insolvency and Bankruptcy Code go the CDR way

IBC should never have been kept in abeyance for so long and, if not handled well, the pre-pack can deal it a big blow

However, since the creditors and the debtors already arrive at a concensus on initiating the pre-pack resolution, chances of frivolous litigations under the proposed framework are minimised, analysts say.

Record CaFE: R Shankar Raman- A $500-billion infrastructure opportunity in five years

We expect the curve to be upward-sloping from 2022-23 onwards, and initially, we expect an average of $50 billion annually as a realistic amount.

R Shankar Raman, director and group CFO, Larsen & Toubro

COVID-19 vaccine alone won’t cure the economy

It will help revive economic activity, but there are deep-seated issues—and Covid-induced ones—that need fixing

economy
Advertisement
Income Tax Calculator, Budget 2019, How to Calculate Income Tax

 

Stock Market

Advertisement
Advertisement