India Inc. Remains a Cautious Investor
Private companies are not going full throttle to expand capacities despite deleveraged balance sheets, higher profitability and a healthy banking system ready to back their ambitions.
Private companies are not going full throttle to expand capacities despite deleveraged balance sheets, higher profitability and a healthy banking system ready to back their ambitions.
The leading Swiss wealth management group expects that just like it did after the global financial crisis, discretionary spending will recover after Covid-19 abates.
According to the RBI, the gross NPA ratio of all scheduled commercial banks may increase from 7.5% in September 2020 to 13.5% by September 2021, and even escalate to 14.8% in severe stress scenario.
Leading economists believe the vaccine might not end the economic disruption which the Covid-19 pandemic has caused. Normalcy will come over time, and with pain.
While gloom prevails across economies, a State Bank of India report says that the Reserve Bank of India has been relatively successful in ensuring financial stability in the market since May.
The alternatives industry faces short-term disruption due to the Covid-19 pandemic, but the longer-term impact is more positive, says Preqin.
Analysts with varied views have the 2008 global financial meltdown as the nearest comparable to the Covid-19 pandemic. But they are agreed on one thing: the need for caution.
According to the World Gold Council, global gold-backed ETFs added 298 tonnes during January-March 2020, the highest quarterly addition since 2016.
According to the Preqin-FRG model, while earlier vintages will suffer, 2018/19 vintage private equity funds will see higher returns as a result of the pandemic.