Author: Samay Lund

Hygiene practices you should follow while investing in the stock market

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Investing in the stock market is quite similar to buying a car. Just as people do thorough research, check mileage, brand, affordability, etc., before making the final purchase, likewise, a lot of thought goes into investing in equities as well.

The first step to investing in the stock market is understanding the nuances of the asset class, followed by listing down financial goals, gauging your risk appetite and time horizon, identifying which companies you want to invest in, and much more.

Also, to be a successful investor in the stock market, there are several do’s and don’ts that you must follow to protect your hard-earned money and invest wisely.

Here is an indicative list:

1. Make an informed decision: Once you’ve decided to invest in the stock market, you should do your homework and research the companies you want to invest in. Don’t get carried away by advertisements about financial performance of companies, or media reports. You must analyse a company’s balance sheet, P&L statements, etc., and then make an informed decision.
2. Build your own strategy: Everyone wants to be the Warren Buffett of the stock market. But, strategies that worked for him, may not work in your favour. It is important to build your own plan after assessing your goal, how much risk you can stomach and how long you can hold your investment. Following someone else’s methods can backfire, resulting in huge losses.
3. Don’t fall for promises of high returns: No one can guarantee any type of return, whether high or low, in the stock market. Many people will lure you into investing in a particular stock or avenue promising high returns. However, never fall prey to any investment that promises abnormally high returns.
4. Deal with registered intermediaries: Whenever you invest, do so through a SEBI registered intermediary only – in case if going through a broker, always ensure you get a Contract Notes from them within 24 hours. In the unfortunate case of a fraud / default, only transactions through a SEBI-registered broker can be available for compensation from the Exchanges. Also, make sure you have photocopies of all the documents and account opening forms. Moreover, while dealing with intermediaries always settle dues through normal banking channels, if issuing cheques, they should be in the broking entity’s name and not the personal name of the broker and never pay in cash.
5. Have patience: Investing in the stock market requires discipline and patience. Don’t expect stocks to generate good returns overnight, especially when you have a long-term investment focus.

Investing in the stock market is not cumbersome if you do your due diligence. It is advisable to go through all the risk-related documents to make a sound investment decision.

Happy investing! Invest Right Toh Future Bright!!!

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

CNBC-TV18 and HUL wraps up the 12th season of ‘L.I.M.E.’ offering talented B-School students an opportunity to script a glorious chapter in their future

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Mumbai: L.I.M.E. (Lessons in Marketing Excellence), India’s biggest and most prestigious contested B-school challenge conducted its latest season, season XII virtually this year. L.I.M.E. is a platform that was jointly launched by CNBC-TV18 and HUL in 2009.

This platform offers an opportunity to top B-schools of India to take part in a marketing case-study competition for management students. It allows students to work on real-life and live business challenges, as well as allows companies to interact with India’s brightest MBA students, and to share their unique experience.

With virtual becoming the new norm due to the ongoing pandemic, L.I.M.E. too went completely digital and hosted a virtual launch event. The event had an overwhelming response, with more than 8000 students watching the event LIVE. The event started with a Fireside chat between Shereen Bhan, Managing Editor, CNBC-TV18 and Sanjiv Mehta, Chairman and Managing Director, HUL. In addition to the above, Dr. Hemalatha R, Director of ICMR – National Institute of Nutrition spoke on ‘Nutrition and Hygiene’, while Sudhir Sitapati, Executive Director of Foods & Refreshment, HUL voiced his opinion about ‘Marketing in the New Normal’.

The event featured guests like Tarun Katial, CEO of ZEE5 India; Anupriya Acharya, CEO of Publicis Group; Anuradha Razdan, Executive Director, HR of HUL and Dr. P.V. Ramana Murthy, Executive Vice President and Global Head – Human Resource of IHCL (Taj group) who partook in a Panel Discussion with Shibani Gharat, CNBC-TV18 on the topic of ‘Managing workforce in the new normal’.

LIME season 12 granted an exclusive opportunity to all the young and budding marketers from prestigious B-schools like London Business School, IIM Bangalore, Indian School of Business (ISB), NMIMS & many more to showcase their marketing acumen. We started this year’s journey with 317 teams from across the country. After gruelling rounds of case presentations and Q&A, only 5 teams made it to the Finale. They were from London School of Business, Indian School of Business, IIM Kozhikode, IIM Bangalore and IIM Calcutta.

The finale jury comprised of eminent speakers like Sudhir Sitapati, Executive Director of Foods & Refreshment, HUL; Priya Nair, Executive Director – Beauty & Personal care, HUL; Ankur Jain, Founder B9 beverages; Sushant Sreeram, Director Marketing Amazon Prime Video and Shibani Gharat, from CNBC-TV18. After a rigorous round of Q&A and case presentation the Jury decided on the finalists for this season with London Business School securing the first position followed by Indian School of Business (ISB) and IIM Kozhikode.

Speaking on the first virtual event, Shereen Bhan, Managing Editor, CNBC-TV18 said, “Marketing is a crucial aspect of business continuity in current times. ’Lessons In Marketing Excellence’ is a platform that’s thriving for the nation’s business landscape. After a decade-old run of being the most prestigious competition, the objective was to make a promising impact in this new normal and we are glad by the responses we have received this year too. This year, we added to the grandeur and legacy of the competition by forming an Alumni of L.I.M.E with the previous participants to help this year’s students. We would also like to thank HUL, who have been with us on this journey.”

Commenting on the event, Sanjiv Mehta, Chairman and Managing Director, HUL said, “Over the years, L.I.M.E. has grown into one of the most prestigious and tooth-and-nail competitions among India’s top Business Schools, to find the country’s brightest and best young marketers. We are glad to partner with CNBC-TV18 and their extended support in helping L.I.M.E. reach the heights it has reached today. Irrespective of the fact of being in the physical world or virtual world I think L.I.M.E. should be a great experience for the students.”

Watch this space for highlights from the finale of L.I.M.E season XII.

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

BAFs show investors the middle path is always the best and the safest

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Balanced Advantage Funds (BAFs) are getting the highest gross sales in all categories of mutual fund (MF) products today. It is the best bet on how to grow money in rising markets and protect in falling markets.

At a recent high-profile webinar organised by Edelweiss MF and CNBV-TV18, two leading mutual fund experts said BAFs work for a large combination of investors and have become an important part of their core allocation.

HIGH PROFILE MARKET EXPERTS

The webinar was addressed by Radhika Gupta, MD and CEO Edelweiss AMC and Santosh Joseph, CEO and Founder, Germinate Investor Services.

The speakers agreed that BAFs achieve that blend of meaningful upside and downside protection. Not being an equity product, it will underperform equities, which it is meant to, but the fact is that it is not a fixed deposit product either.

SIGNIFICANT TAKEAWAYS

The takeaways from this high-profile webinar were many. Consider the following:

• What distinguishes BAF from the others in the hybrid category is the older combination of equity and debt, with a ratio that keeps changing.
• That ratio could be 30% equity and 70% debt or 80% debt and 20% equity. The change is based on automated factors, not raw emotions.
• BAFs present a great combination of fixed income and equity, managed, and packaged well to take care of the benefits of either an all-time high rally or for a beginner looking to invest.
• They can also provide a regular income. Most funds have a regular systematic withdrawal plan (SWP) facility. Accumulate a corpus for 2-3 years and start a monthly or quarterly SWP of 6-8 to 6-9%.

COMPARISON WITH LARGE CAPS

According to Ms Gupta, a look at the last couple of years of returns of BAF category would reveal that it compares well with large cap funds. How is it possible when BAFs on an average have a 50-60% exposure and large cap funds have 100% equity exposure? It is because compounding has taken place, she said.

In Mr Joseph’s estimate, for someone who is really worried about timing the market, there is nothing like a good time or a bad time. Every time is a good time so long as the BAF model is working for you, he points out.

The webinar was conducted by Sumaira Abidi of CNBC-TV18. Watch it here:

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

COVID-19: Indian healthcare comes of age

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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COVID-19 has brought drastic improvement in health care standards, infrastructure, the state of hospitals and peoples’ attitude towards public health in India.

At the Ninth edition of the OPPI Annual Summit 2020 – Healthcare Accelerated, Reimagining India’s Healthcare in the next decade, country’s leading policy makers, members of the healthcare fraternity, heads of pharmaceutical companies, medical experts, NGOs and global think tanks converged to discuss diverse aspects of healthcare access, offering potential solutions.

 Who’s who of the Health sector

Among the top-notch speakers who graced the occasion included D. V. Sadananda Gowda, Union Minister for Chemicals and Fertilisers and Mansukh Mandaviya, Minister of State for Shipping, Chemicals and Fertilizers. They were joined by S Aparna, Secretary, Department of Pharmaceuticals, Ministry of Chemicals and Fertilisers.

Others present at the high-profile summit were Neerja Birla, Founder & Chairperson, Aditya Birla Education Trust, Shamika Ravi, Director, Research, Brookings; Manisha Shridhar, Regional Adviser, WHO and Malti Jaswal, Senior Consultant World Bank Group.

Industry leaders

Industry leaders who postulated included Rajaram Narayan, MD Sanofi; Ratna Devi, Board Chair IAPO; Joy Chakraborty, COO, PD Hinduja Hospital; Dr. Y. K. Gupta, President AIIMS, Bhopal and Jammu; Vaidheesh Annaswamy, Managing Partner, North Star Asia LLP; Krishnan Ramachandran, MD and CEO, Max Bupa Health Insurance and Sarthak Ranade, MD Janssen India.

The summit was well represented by global experts like Jaak Peeters, Johnson and Johnson, Special Envoy for COVID-19 vaccine; Andrew Blasi, Director, Crowell and Moring and Sofie Melis, Director HR and Ethics Compliance, IFPMA.

Narendra Mantena, Head Global Strategy and CEO, Biological E; Vikas Chauhan, Co-Founder 1mg; Dr. Ganapathy Krishnan Director, Apollo Telemedicine Network Foundation and Jaidev Rajpal, Partner, McKinsey and Company, reflected on the new technologies that had come into the health sector, thanks to the pandemic and the opportunities it had created in the bargain.

Sharad Tyagi, President OPPI and Manging Director, Boehringer Ingelheim India; K. G. Ananthakrishnan, Director General, OPPI and Nitika Garg, Director, Research, OPPI also spoke at the summit.

Pharmaceutical industry comes for high praise

Praising the contribution of the pharmaceutical industry, both Indian and global, in supporting the government to combat the COVID-19 crisis, Minister Sadananda Gowda said that the government and the industry worked hand in hand to meet the increased demand for testing and treatment. He also pointed out the role of global and Indian companies in coming out with vaccines in the shortest possible time.

He said that while essentials were imported when COVID-19 broke out, today Indian manufacturers are producing about five lakh PPE kits and three lakh N-95 masks per day in addition to three lakh ventilators per annum.

Minister of state Mandaviya said that India had proved itself to be a world leader in pharmaceuticals and asserted that the government believed in promoting the pharmaceutical industry as well as making medicines available for the poor. Pharmaceuticals Secretary S Aparna said that the pandemic had forced companies and individuals to take a hard look at how they functioned.

 All stakeholders on board

Sharad Tyagi said the pandemic showed that all stakeholders came on board – whether it was for supply of medicines, for transport issues or for urgent clearances.

Speakers stressed upon some key takeaways for the health sector. These included:

• Greater transparency of information is now available to patients through websites promoted by the government and various departments.
• India’s health care system now compares favourably with the best in the world.
• India’s patient-centric approach, acquired during the pandemic, must continue at all levels.
• Experts marvelled at the speed with which the world and India had discovered a vaccine, that had come in less than 10 months.
• The central stakeholder in the pandemic is the patient and the trust that has built up between him and the health care industry, needed to be pursued.
• COVID-19 had ensured that many consumers as well as health care stakeholders had adopted digital systems.
• The connection between health and hygiene has been established

Collaboration for innovation

Some speakers like Dr. Y. K. Gupta, President AIIMS, Bhopal and Jammu, stressed that tech-driven institutions and biological sciences innovation must work together, rather than in silos. The industry and the regulator needed to come together to lay down the grounds for innovation.

Krishnan Ramachandran, MD and CEO, Max Bupa Health Insurance said that the pandemic had proved that India is still grappling with challenges that confront health insurance.

Recognizing dedication to healthcare through awards

“The OPPI 2020 Lifetime Achievement Award” was given to leading light of Indian pharmaceutical sector Dr. Y. K. Hamied, founder of CIPLA while Dr. V. G. Somani, Drug Controller General of India was honoured for his services to the health sector.

Special Awards were given to bright scientists and innovators like Aparna Hegde, founder, chairperson and managing trustee of Armaan; Harmala Gupta, founder and president CanSupport; Debabrata Dash from the Banares Hindu University was given the OPPI Scientist of the Year Award; Dr. Rituparna Sinha Roy received the Woman Scientist Award and Dr Arun Kumar Shukla from IIT Kanpur, received the Young Scientist Award.

Watch the video here:

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Leaders of Change deliberate on ‘2025: India’s Growth Agenda’

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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CNBC-TV18 completes 21 years in business news journalism and its marquee property, the coveted India Business Leader Awards completes 16 glorious years. The awards have been acknowledged as the gold standard in recognising business excellence in India, it follows a rigorous process laid out by the internal teams and deliberated upon by industry stalwarts, who scrutinize and select the best names in the business.

The virtual jury was helmed by industry veteran KV Kamath and comprised of illustrious figures such as SBI Chairman Dinesh Khara, TCS MD and CEO Rajesh Gopinathan, Sanjiv Goenka, ITC CMD Sanjiv Puri, Standard Chartered Bank (India) CEO Zarin Daruwala and Chairperson and MD of GCPL Nisaba Godrej.

The jury was followed by an engaging panel discussion focussed on “2025: India’s Growth Agenda”. The panel was moderated by CNBC-TV18 Managing Editor Shereen Bhan. The leaders touched upon several facets that would charter India’s growth plans in the near future, such as digital adoption across sectors, need for tech and innovation to harness the potentials of the manufacturing sector, swift government interventions during the pandemic, FDI, global trends in banking and agility of businesses in surviving the pandemic.

Speaking in the context of democracy, Kamath was positive on the digital adoption which he termed as the “digital super cycle” — which was kickstarted amid the pandemic — will have a ripple effect on various spheres of the economy. Adding to the discussion Rajesh Gopinathan spoke on synergies between a knowledge-based economy and focussing on manufacturing. He said, “I believe the future in manufacturing and energy will belong to newer materials and energy resources, and a lot of work is currently going on in the technology space, and the digital side will allow us to access this in a seamless way”. He emphasised on the need to nurture the start-up ecosystem and feels (directionally) regulatory changes are on the right path.

Commenting on innovation in legacy institutions and the rise of fintech companies to bridge the access deficits when it comes to formal credit and access to credit, Dinesh Khara opined, “MSMEs are something that hold a lot of promise considering they are the largest employers.” He mentioned a home-grown VC model can give MSME’s a desired fillip on the equity front. He emphasised that the encouragement of the sandbox by RBI and other finance sector regulators shall only further the cause of newer businesses and aid faster technology adoption.

Zarin Daruwala spoke about global trends in digital banking, where Singapore and Hong Kong have adopted a pure digital bank approach with no physical branches or networks. She said, “Given the internet penetration and the mobile penetration that we are seeing, that can be one big innovation that can come and in fact our own bank has set up the first pure digital bank in Hong Kong, so to my mind that is the disruption that we are going to see in the next few years in India.”

Talking about the consumer-facing business, Nisaba Godrej stressed on the need to flatten the curve — be it on the health turf, climate change or inequity. “We need to move really fast and I think when it comes to emerging markets, as consumers consume more, we cannot build the models of the West so we will have to bring in a lot of innovation to bear. I think that’s going to be critical to flatten all the curve.” However, she feels the pillars for driving a successful consumer growth model will be sustainability, digitising trade, stronger distribution networks, and keeping a tab on health consciousness when it comes to the packaged food industry.

Taking a cue from Godrej, Sanjiv Puri highlighted the tremendous potentials that food processing and agriculture hold for India. “There is a great opportunity to transform this sector and actually create a virtual cycle of consumption investment and employment because agriculture as you know employs about half of India’s workforce,” he said.

Puri further believes in viewing the current climate in the agriculture sector through a larger prism, with policy interventions there is a thrust on digitisation of agriculture thus enhancing its competitiveness.

Sanjiv Goenka quipped positively on the India growth potential. He said, “I think I am more confident about the India story. The India consumption story, the India growth story more than ever before.” He added that there is a need for stronger supply chains to strengthen consumer markets.

While Public Private partnerships is the need of the hour, Kamath was of the view that a more segmented approach would be required to tackle areas of education, healthcare, infrastructure etc. It will have to be effectively customised given sector-specific requirements.

Talking about digital infrastructure, Gopinathan highlighted, “What India is doing is the best example of a common government and private sector kind of operating model so opportunity will lie on top of that as to how to build it up into newer service areas.”

All the leaders unanimously agreed to the Atmanirbhar Bharat scheme, as a step in the right direction as it focusses on increasing efficiencies across sectors, encourages the spirit of self-reliance and helps in gaining a competitive edge.

Leaders collectively reflected over learnings from the pandemic and discussed pertinent issues such as work from home, mental health, driving organisational culture, need for human interaction, preparedness for climate change, faster responses to consumer requirements, and the role of digital that will evolve as the future unfolds.

Lastly, Kamath summarised the session on an optimistic note. He noted, “The digital super cycle which will be a pillar of growth going forward. It could contribute to one third of the growth that will happen in the next five to 10 years.”

You can watch the coverage of the panel discussion here.

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

The Significance of the Mission Paani Waterthon

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Mission Paani, an initiative by Network18 and Harpic India, has been a pathbreaking effort in mobilizing a mass movement to promote water conservation and hygiene. The initiative was able to collate disparate and isolated efforts into a cause that every Indian could join and contribute to. Thousands have been drafted into the movement, through the administering of a Jal Pratigya, which obliges them to live a life of judicious water use and hygiene. Now, with the Mission Paani Waterthon happening LIVE today, we are about to witness a landmark occasion that will embed the values of better water conservation and hygiene in our national conscience.

To Celebrate The Difference Makers

A grand showcase of a social cause, that seeks to inspire a nation into action, depends much on the illustrative examples of volunteers and heroes who have made a difference. That’s why Mission Paani Waterthon is set to feature notable individual efforts to conserve water and promote hygiene, whether it’s Lt. Col. SG Dalvi, who has spearheaded a new movement to conserve rainwater, or Amla Ruia, who works to combat water shortage across India. Also in attendance would be remarkable young activists, like Licipriya Kanjugam, one of the youngest climate activists in the world, and Naina Lal Kidwai, a banking veteran who now works to alleviate India’s water crisis.

A Spectacular Presentation

While viewers will be wholly inspired by profiles of water warriors and their efforts to conserve water and hygiene, they will also be entertained by the great performances lined up for the event. Viewers will be treated to a masterclass in classical dance, with performances by renowned danseuse, Mallika Sarabhai, Esha Deol and many more. Also taking the stage during the event will be Swarathma and Indian Ocean, popular Indian folk rock bands, whose soulful melodies will resonate with the profundity of the cause of water and hygiene, and Shaan, one of Indie pop’s original superstars. These featured performances will be accompanied by other major highlights, including a special appearance by the campaign ambassador for Mission Paani, Akshay Kumar.

Looking Ahead

While the Mission Paani Waterthon will be a grand stage to celebrate efforts for water conservations and hygiene, it will also provide the perfect platform for policymakers and thought leaders to chart out the road ahead. With tall personalities in attendance, like Dr Harsh Vardhan, Union Minister of Health and Family Welfare, Laxman Narsimhan, CEO, RB Hygiene, and Gajendra Singh Shekhawat, Union Jal Shakti Minister, it will be a gathering of those who have the vision and the authority to lead the change.  And the Mission Paani Waterthon will be the perfect moment for them to voice their opinions and share ideas for a healthier future.

It’s highly symbolic that the Mission Paani Waterthon takes place on India’s Republic Day. Through the 8 hour event, which will be broadcast live on Network18’s TV and digital channels, we will mark a change in our national discussion on water conservation and hygiene, and help make it an inalienable part of the idea of India.

Mission Paani, an initiative by CNN News18 and Harpic India is leading a drive to save India’s precious water resources and make hygiene a way of life. You can contribute to the cause by taking a Jal Pratigya. Visit www.news18.com/mission-paani

Watch the Waterthon LIVE above.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

India’s Microfinance Story

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Microfinance has a long and distinguished history in India. Introduced for the first time by the SEWA Bank, part of the Self Employed Women’s Association (SEWA), in Gujarat in 1974, it has since become instrumental in extending financial services to many who remained excluded from the economic mainstream. Little wonder then that the industry saw growth rates of 40% per annum till very recently. This period of high growth has been punctuated by various crises and macro-economic disruptors, most recently the Covid-19 pandemic.

The impact from the latest downturn was deep, with the number of loans dropping by 97%. The loans disbursed were also 96% lower in value, according to the Microfinance Institutions Network. There were other signs of sickness, with an RBI study flagging huge drop in collection efficiency of securitization pools from 83% to 5% in April 2020. Though these indicators have recovered slightly, question marks remain over the best way ahead for microfinance lenders.

To delve deeper into these important questions, the third episode of The Making With Shereen Bhan in association with HSBC featured Rajat Verma, Managing Director and Head- Commercial Banking, HSBC India, Manoj Nambiar, CEO, Arohan Financial Services and HP Singh, Chairman & MD, Satin Creditcare Network, who brought their wide ranging expertise and experiences to a discussion about the changes in microfinance.

At Your Service

Microfinance’s unfulfilled potential, despite years of high growth rate, is a testimony to the massive opportunity that awaits companies, especially amongst the unbanked masses in rural areas. This unfulfilled potential was reflected in Manoj Nambiar’s opening remarks, as he appraised the state of affairs. “An industry which was worth less than Rs. 10,000 crore in 2010 has matured to an industry worth Rs. 2,40,000 crore today. Even at this supply we believe the market is only one-third penetrated.”

This steady optimism is rooted in the fact that microfinance predominates in the rural market, which has proved more resilient to the pandemic-induced economic downturn. As HP Singh explained, “In the rural economy, which is purely a domestic economy and localized to a large extent, the income levels don’t get so erratic.” He was even willing to put a timeline to the recovery. “Q4 will be a very stable quarter for all of us. Including disbursements, which are picking up now.”

It’s a sequence of events that has reaffirmed the relevance of MFIs in facilitating equitable growth. When pressed by Shereen Bhan to elaborate on the commercial strengths of the industry, Rajat Verma concurred that “there is a model that is scalable. And the story is not yet done. Industry has shown a level of maturity it didn’t have in 2010-2011.” But apart from the industry’s intrinsic qualities, there are a range of external factors that will shape its future.

A World Of Change

On top of the list of potential seismic shifts are recommendations from RBI to convert small and payments banks into universal banks. It presents new opportunities for NBFC-MFIs, along with potential pitfalls. Rajat Verma was not convinced, saying “Small MFIs have had a great role to play in networking with society at the ground level. If you institutionalize everything, you may lose some of that.”

The other panellists seemed to agree, with Manoj Nambiar striking a cautious tone. “It’s important to optimise each segment of this journey and then take that turn”, he said, alluding to new opportunities for NBFC-MFIs to foray into banking. HP Singh discussed ideas which could help MFIs ‘optimize’ their operational abilities, quoting examples of his own company’s progressive measures. “We did a lot of process reengineering in our company. We are probably the first ones to do psychometric analyses of microfinance borrowers”. For him, “the main challenge that comes up is the interference of the local bodies. That’s the most important aspect that needs to be looked at”, he said, referring to populist policies that are announced before elections, like loan waivers.

No Mountain Too High

Having faced their share of shocks and upsets has given microfinance leaders belief in their own ability to bounce back. “We are a sector that has learned from crises. And we have ensured that we have our takeaway from each crisis”, said Manoj Nambiar, when asked by Shereen Bhan about the discipline required to tide over this latest rough patch. It was a question that arose from Rajat Verma’s contention that for MFIs, “As an industry, there is very strong business case to say this is our core and to stick to our core, not only because it’s good for society, but also because it seems like a really good business model.”

But that’s hardly curbing ambitions. Microfinance has brought the convenience of financial services to a mass of consumers, whose surging aspirations add value to MFIs as well, just like HP Singh’s company has accomplished with its growing rural housing loan portfolio. The true test of microfinance’s growth in India won’t be told by mere numbers, but by dreams fulfilled.

Watch the full discussion.

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Financing India’s Green Future

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

As the global economic recovery begins to take shape in the aftermath of the Covid-19 pandemic, there is a need to rethink our investment priorities and developmental initiatives. The temporary disruption in financial value chains is an opportunity for institutions and decision makers to refocus their energies on promoting sustainability and climate mitigation efforts, which are set to be the defining economic questions of the 21^st century.

Even though the Economic Survey 2019-20 declared India as the second-largest emerging green market with transactions worth $ 10.3 billion recorded during the first half of 2019, there is still a lot of room for growth. Various estimates suggest India will require around $ 170 billion a year to meet climate mitigation and sustainability goals, as codified in the Paris Agreement. At the same time, this paradigm shift will yield new opportunities for investors and entrepreneurs worth $ 3.1 trillion.

This was the context that set the tone for the second episode of ‘The Making With Shereen Bhan’, in association with HSBC, as she connected with Rajat Verma, Managing Director and Head- Commercial Banking, HSBC India and Ashish Bhandari, MD & CEO, Thermax, to talk about financing India’s green future.

Lessons Learnt

At the very outset, there was a convergence of opinions on the seminal impact of the economic downturn in focussing corporate strategy on sustainability. Responding to a question about the structural changes, Rajat Verma cited the banking industry’s general shift towards green projects. “Financial institutions are thinking more deeply about environment and sustainable financing”, he said. But the shape and form of those capital investments is yet to be known, as infrastructure reels from the latest crisis, to transition from what Ashish Bhandari called “megaprojects, that are more infrastructure related” to smaller, more sustainable projects. “So instead of one mega refinery, you could have hundreds of small bio-mass based plants”, he elaborated.

The sudden thrust towards sustainable financing has posed new challenges too. Though figures quoted by Shereen Bhan revealed assets under ESG funds have grown by 27% in the first quarter of 2020, there is still a massive financing gap. “Investment required in renewable energy and sustainability goals is a humungous investment, which cannot possibly be met by only public means. Therefore, you need to have more private investment coming in”, was Rajat Verma’s assessment, alluding to the need for an overarching commercial structure. Although banks such as HSBC have earmarked nearly $ 1 trillion worth of sustainable financing support globally until 2030, Rajat Verma added that “it’s the business model and the sustainability of that business model which will determine how much of capital is going to be available and flow into the sector”.

Cause for Optimism

“Few industries know the struggle of trying to marry sustainability with viability better than infrastructure” noted by Shereen Bhan. With regards to deepening sustainable financing, Ashish Bhandari was very categorical about the need for proactive public policy. “How the government funds recovery, what areas it chooses to focus on, will decide what the future will look like”, he said. And while government regulations have begun to catch up, with new Ministry of Corporate Affairs guidelines, that deeply influence corporate behaviour, requiring India’s top 1000 biggest companies to file a sustainability report, Ashish Bhandari sees an associated progress in sustainable finance and technology as well. “In the last 2-3 months, all the projects that have got started and got funded, all have some green element”, he added.

While technology and public policy work together to create and incentivize green technology, sustainable finance is searching for its own path-breaking innovation to draw in investment. A big step, according to Rajat Verma, has been drawing out of stakeholder capitalism metrics by the World Economic Forum. “The goal is to have this kind of transparency, benchmarking and tagging of such initiatives”, he said, referring to how the stakeholder capitalism metrics will help in correctly categorizing sustainable initiatives and in the mainstreaming of sustainable finance.  It’s a trend HSBC have themselves played a key role in spearheading, by launching the ‘Finance to Accelerate the Sustainable Transition – Infrastructure’, or FAST Infra initiative in May 2020, along with IFC/World Bank and OECD, with an objective to encourage more investment in building sustainable infrastructure.

The Smart Thing To Do

Admittedly, this shift towards eco-conscious and sustainable development was more out of necessity than choice. As Ashish Bhandari bluntly put it, “For India to manage energy availability and energy sustainability, both have to be done.” On a more personal level, it means that “for companies like Thermax, it’s not a question of looking at infrastructure as a sector specifically, but start to retool our companies for where the world is going.”

Rajat Verma, on his part, was upbeat about the start of an irreversible move towards a green future. He was confident in the power of proactive public policy and strong commercial fundamentals to kick-start India’s march towards sustainable development. “You can’t have financing success if the government policies are not in line. But once you have those in place, and once you have the technology in place, then I think there’s no real economic reason why this won’t succeed.”

Watch the full discussion.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Driving Business Resurgence in the Post COVID Era

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

The Indian economy was severely impacted on account of the COVID pandemic and contraction of economic activity following the national lockdown. However, recent economic indications and data suggest a gradual recovery of the economy. The manufacturing sector is rebounding and even sluggish, capital-intensive industries are showing upward movement. The service sector is beginning to expand and even some areas that have been persistently lagging, are showing signs of improvement.  However, there continues to be constraints on funding and credit off-take remains weak. India’s fiscal support package has been amongst the lowest in emerging markets. A key aspect of recovery from here on will be the need for reforms, which will aim for a more durable and long term impact on the economy.

In addition to this domestic challenging landscape, geopolitical shifts and the rise of economic nationalism pose further questions on the recovery process. Clearly, India is at the crossroads, with challenges and opportunities in equal measure ahead of us. CNBCTV18.com and HSBC India have come together for a unique show titled ‘The Making with Shereen Bhan’, that aims at discussing how businesses are navigating the path to recovery in the post-pandemic world and opportunities for doing business in India. The show features corporate captains and industry leaders across sectors to understand how they are navigating the post-pandemic world, giving a bird’s eye view on the changes the world is grappling with and business resurgence post COVID.

The Reviving Indian Economy Post COVID

Businesses are learning to adapt to the ‘new normal’ and the focus is now on ensuring business continuity, driven in large measure by adoption of technology.

“It’s been a great learning experience for us at HSBC”, says Surendra Rosha, Group General Manager & CEO, HSBC India commenting on his experience through this pandemic period. He adds, “I think the new way of working will be very different in a post pandemic world. A large part of the work-force may have flexi working arrangements and technology will be an enabler for that.”

India is coming off a period of fairly steep contraction. While the green shoots of recovery are visible, there is a long way to go on the growth trajectory. Sharing his personal views on economic revival, Surendra Rosha adds, “My own sense from the emanating economic data is that our recovery depends on the intensity and depth of a possible second wave of COVID. That will determine and in fact, test the sustainability of the green shoots that we are currently witnessing.”

The critical elements to position the economy for growth are in place. Even before the pandemic, the focus was on fiscal reforms which included a change in the corporate tax rates to make India an attractive investment destination. In the backdrop of the global trade tensions that were taking place, corporates were already reviewing their supply chain. This has received an impetus in light of the changing trade dynamics on account of the pandemic. Importantly, the Government has pushed policy reforms that have helped position India as an alternate destination for global manufacturing and global supply chains.

Adds Rosha, “If this momentum of policy reforms continues over the next 18-24 months, India will be very well positioned to capture part of the global supply chains, particularly in certain sectors.”

Infrastructure & Private Capital – Key for Growth
In addition to policy reforms, the focus needs to be on two aspects:

1. Scaling-up of infrastructure, particularly ports and in the logistics sector. If the Government shows intent in developing these aspects, private companies will follow
2. Availability of private sector capital – the pandemic has challenged this and it is now imperative to attract international capital to our debt markets and private equity in a greater manner to sustain some of our enterprise requirements

“If we can sort out infrastructure and make sure adequate capital is available to industries, we should be in a good space”, points out Surendra Rosha.

Factors Working in India’s Favour
While no country in the world has remained untouched by the impact of the pandemic, India has certain factors and unique opportunities working in its favour as we move towards a post pandemic world.

Adding to a positive growth sentiment is India’s strong foreign capital appetite. As Surendra Rosha, highlights “India offers a couple of unique opportunities. There are assets available at a relatively cheap valuation. Also, India offers scale that is unique and very few markets can match that. The interplay of these factors give rise to opportunities that play to our strengths.” Also, the digitisation of banks and innovation in financial services gives India a definite edge. Like at HSBC, Surendra Rosha mentions, “we are looking at bringing together product lines into uniform or unified experiences for our customers transacting with us. These are some of the areas where we are innovating for the first time in our group globally.” He also projects that, “a large part of banking will be digital, 95-97% of it” in the near future and will gradually move towards a self-serve model”…

The Key Challenges
However, there are certain hurdles on the horizon that could potentially derail India’s economic recovery and larger growth story:

• If there is a second lockdown in India, it will hurt the economic recovery significantly.
• Collaboration with emerging technology including the fintech world remains a concern.
• Smooth and consistent implementation of reform policies.

In Closing

Business resilience in the post COVID era and revival of the Indian economy will depend on an array of factors. Private sector investment and rapid infrastructural development are fundamental in shaping the growth story of the Indian economy. Maintaining the momentum of policy initiatives is also a strategic imperative to draw more foreign investment in India and enhance India’s competitiveness. Credit offtake remains muted and economic nationalism and geopolitical shifts may reshape trade relationships. But for now, macro-economic indices are suggesting a promising forecast that the economy could be headed towards a sustainable resurgence.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Timing the market, BAF style

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Balanced Advantage Funds or BAF are quite balanced. Literally. After all, there aren’t too many investment options in the market that let you have the cake and eat it too.

BAFs, also known as Dynamic Asset Allocation Funds, are a category of Hybrid Mutual Fund Schemes — as specified by SEBI — that invest in asset classes like debt and equity. They keep modifying their asset allocation based on market movements.

They are structured to increase investments in rising markets (bull) and protect in falling (bear) markets.

GUIDING DEBT AND EQUITY ALLOCATION

BAFs manage market ups and downs by dynamically guiding its debt and equity allocation. Like a good kabaddi raider, it devises a strategy to attack and generate returns when the game is moving his way and defends by limiting downside when the opposing team is on the offensive. In other words, BAFs are a sure-fire winner to master market volatility in the long run – in the most disciplined manner possible.

BAF’s MANIFOLD ADVANTAGES

The advantages of Balanced Advantage Funds are manifold, but nothing more critical for an investor than the fact that he or she can manage market volatility and aim to limit losses when the market falls. There are manifold reasons why investors are looking to BAF in these turbulent, pandemic-hit times. Consider the following:

**These funds aim to deliver long-term returns closer to equity funds, but with lower risk

**It aims to grow your money in rising markets and protect in falling markets

** Aims to generate capital gains primarily through dynamic management of equity allocation as per varying market conditions

** Intends to provide stability and regular income through exposure to fixed income instruments

** Portfolio rebalancing decisions are usually based on a well-defined and time-tested model, taking away emotional bias in investing

** Offers higher tax efficiency than asset allocation implemented by the investor himself

BENEFITS FOR ALL LONG-TERM INVESTORS

Unarguably, the most attractive facet about BAFs are the benefits it offers to all kinds of long-term investors – both the first-time mutual fund rookie investor wanting to make a splash into equity investments with lower risk or veterans of the investor market.

These long-term investors could include investors on the lookout for a more aggressive alternative to pure Debt Funds or those wanting to invest in Equity for higher return potential, while cutting their losses in case the market falls.

CUTTING DOWN ON RISKS

For investors seeking to reduce risk, invest in a diversified portfolio and leave asset management to an expert, BAFs offer the best option.

Of course, for first-time mutual fund investors looking for long term investment avenue for wealth creation, BAFs are tailor made.

COMMON SENSE TIPS

Some common-sense, market-wise tips are in order while selecting BAFs. Do not compare returns without looking at underlying portfolio allocations and two, expense rations can be a big differentiator between the direct and regular plans.

Industry veterans – who have witnessed, and indeed scripted – financial markets since the days of the yore, watching the mutual fund industry take tentative baby steps back in the 1960s and 1970s – now believe the best way to make money is through asset allocation. And something that does automatic asset allocation without you doing something about it 24×7, is the best way to create long term wealth. Welcome to the world of Balanced Advantage Funds.

A lot of awareness is needed around this category. To answer your queries and raise awareness around Balance Advantage Funds, we invite you to join our webinar on January 21, 2021 at 4 pm. Click here to register.

This is a partnered post.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow