Monetrix

It is being speculated that the government is going to disinvest in IDBI. In this article, let us discuss IDBI’s journey from incorporation to a rise in balance sheet size to increase in NPAs to the Prompt Corrective Action imposed by RBI on the bank to acquisition by LIC to its probable disinvestment now. IDBI was established by statute in in 1964 to provide credit and other financial facilities to Indian industry. After the public issue of IDBI in July 1995, the government shareholding in the bank came down from 100% to 75%. After being classified as a scheduled bank, in Consequently, IDBI formally entered banking business as IDBI Ltd. from 1 October 2004. The table above shows IDBI’s advances and NPAs over a 13-year window, and we can observe that the advances increased between 2005 and 2013 and the NPA ratio increased from 2013. This also coincides with the Asset Quality Review and strict implementation of IRAC (Income Recognition and Asset Qualification) norms in 2015-16 lea...

    The E-sports industry has been growing at an unprecedented rate. In 2017, according to SuperData, gaming had more viewers than HBO, Netflix, ESPN, and Hulu combined.  According to KPMG, gaming became the most profitable media sector in 2020, with revenue of 180 billion dollars, which is more than the combined revenue of movies and sports, all thanks to YouTube Gaming and Twitch. This clearly suggests that the E-sports sector could soon be larger than the most prestigious sports leagues in the world. In the coming future, we could see Drake courtside cheering for some kid in an E-sports event. The first thing to comprehend is the distinction between E-sports and gaming. It is the most common source of misunderstanding. In the field of video gaming, anyone who plays games on an electronic device is considered a video gamer, but E-sports is a distinct category of gaming, similar to the NBA, La Liga, and the IPL. It's as simple as the difference between playing Gully...

 Today we will talk about one of the most intriguing battles fought in the Indian courts in recent years, The Future Group vs Amazon, which in disguise can also be termed as "Battle of Giants" with it ostensibly being a fight between Reliance and Amazon. This battle was supposed to, yes I can talk in past tense, be a deciding factor in deciding if India, a market of over billion people will be dominated by whom? We can safely conclude by looking at the recent judgement by CCI that the answer to that question is Reliance. Let's start with looking at the timeline of the case. It's August 2019 and Amazon and The Future Group are in talks of buying and selling, respectively, stake in a subsidiary of The Future Group, Future Coupons. The deal goes through for 1500 crores. Amazon buys a 49% stake in Future Coupons. Future group received the money in December and both companies went home happily.  Come August 2020, the struggling Future Group agrees to sell all of its retail...

  Well, you’re in for a surprise for this week’s article. Do you know that Bangladesh now has a higher per capita income than India’s? I believe most of you wouldn’t know this as our politicians have been vehemently clamoring about Bangladeshi immigrants, calling them termites who are trying to crossover to India for jobs. Well, who is having the last laugh now? It’s been a hell of a ride for Bangladesh through multiple natural disasters, political assassinations, and military rule. Yet, it has come out of it very bravely. As Bangladesh just completed its 50 years of independence from Pakistan, we look through some interesting facts and see what lessons do those provide to India. Once termed as a “basket case” by US Secretary of State, Henry Kissinger, Bangladesh has come a long way to emerge as a role model for South Asian countries in the domain of social development. It now is ahead of India, Pakistan, and Nepal on most of the social indicators. Its Infant Mortality Rate (26) is...

A few years back “start-ups” and “entrepreneurship” used to be the buzzword. Times have changed and having braved the black swan event of the COVID-19 pandemic - India today stands at the brink of the IPO dawn. A frenzy, rightly so with the biggest IPOs being listed and hundreds of thousands of participants flocking to them in their next quest to “chase their dreams” and build “wealth”. Speculation aside and without debating on the aptness of the term “frenzy” for the current scenario, in this article we look at an outlier. One among the most talked-about IPOs this year. The company that resonates with growth - Zomato.  So, what is the reason for Zomato to be listed at the mega valuation that it was and why do investors have an optimistic outlook towards it? How is it different from Swiggy and is it in fact even prudent to compare it with Swiggy? Going forward, we engage on these questions and others to understand what the value drivers of Zomato are and what developments need to b...

As the year 2020 and 2021 has been a topsy-turvy road in the path of the global economies, they have been observed to be either a boon or a bane for the sectors of the economy. The stock market has been soaring high in 2021 with the highest value of Nifty 50, Sensex, NASDAQ, etc. The year 2021 proves to be the best year for IPOs and listings with 2388 IPOs raising approximately US$453.3 billion. With these, the global activity owing to the inorganic growth of firms has also been skyrocketing on the front of post-pandemic impacts and pandemic recovery. With the aggregate valuation of $6 trillion in the year 2021, the deal value of H1 of 2021 increased by more than 136% and 22% as compared to the first and second half, respectively, of the pandemic-stricken year 2020. According to BCG, the deal volume also showed a similar trend of a record-breaking splurge with an increase of more than 32% YOY. This has been driven by the low-interest rates and the economic recovery post-pandemic. The e...

On Thursday, Evergrande was declared to be in default by rating agency Fitch, due to the company not meeting its offshore bond obligations. This event was hardly unforeseen, as the liabilities of this major Chinese property developer have grown to over $300 billion this year. In this article, we will discuss what caused this crisis, what are investor sentiments, and what this event means for China and the rest of the world. How did the Evergrande crisis arise? The series of events that have led to the present situation of Evergrande began with the Chinese government’s policy of providing easy credit access to property developers. Companies such as Evergrande utilized this credit availability to aggressively buy land across the country. This eventually led to a rapid increase in land prices and prices of real estate subsequently followed a similar suit. In an attempt to remedy this situation, the Chinese government introduced the “Three Red Lines” limit, which would allow companies a 15...

Some headline writers concentrated on the negative news when the US government released the employment data for November last week. However, the report's data was mixed and, to some extent, perplexing. On the one hand, the establishment survey revealed modest job growth (which was the focus for headline writers). The household survey, on the other hand, revealed a quick expansion of employment, increasing labour force participation, and a substantial drop in the unemployment rate. As a result, one could claim that the job market is slowing or speeding up. It's difficult to say. Let's have a look at the numbers.  The US government publishes two reports on employment: One is based on a survey of businesses, while the other is based on household data. In November, the establishment survey revealed that only 210,000 new jobs were created, far fewer than forecasts projected and far less what research conducted by ADP indicated and a far cry from the 546,000 jobs added in October...

  In 2019, we found the first case of Covid-19. In 2020, the virus turned into a pandemic. And in 2021, the virus took the world by storm. And here we are, heading into the new year 2022. What will the coronavirus look like in 2022? The virus which originated from China has already killed nearly 5.2 million people. At least 257 million others have been infected by the virus. However, if we talk about 2022, it can be safely presumed that the virus won’t be able to kill many people. Though it will surely continue mutating and infecting people, it will not be as deadly. This can be said due to a multitude of reasons, that is, vaccines acquired immunity, and the last one being the progress in medical science. Let’s understand each one of them one by one.  Talking about vaccines, these are our best weapons. 4.4 billion people have received their first dose whereas 3.56 billion people have received at least 2 doses of vaccine and nearly 36 countries have rolled out booster shots. Th...

Central banks around the globe are all currently staring at inflation rates that have been unseen in more than 2 decades. Labor shortages and supply chain problems, combined with a sharp rise in food and energy prices, have pushed the price in major economies. Inflation is something which when increased upsets everyone. Look at how we reacted to the rising fuel prices. This has become a kind of a norm everywhere and everyone is complaining about something or other. Whether it's Americans who are complaining about costly meat or Europeans complaining about electricity bills. And now Turkish Lira, Pakistani Rupee, and Iran’s Rial all are facing depreciation against the USD. What is going on? “Turkish Lira” is depreciating quickly. Turkey has cut down its interest rate by 4 percentage points in line with the Turkish president's wishes despite inflation already hovering around 20% and is expected to rise. It has nearly lost 40% of its value within a year and is now being referred t...

And it’s that time of the year! Holiday shopping is back and Black Friday has always been a time when people all over the world either stock up or spend big. Black Friday, the Friday after Thanksgiving, marks the beginning of the holiday shopping season. The term "Black Friday" stems from the days when ledgers were used for bookkeeping, and the time of year when the ink turned from red (loss) to black (profit) was around this time of year. Covid-19 rippled the retail sector in 2020 altering the way consumers shop and the way workers serve customers. As the world enters the second year of this shopping season post-pandemic, the picture looks a little different. While 2020 was tense on the demand side, 2021 Black Friday was tense on the supply side due to a shortage of enough goods or staff to satisfy them. With many huge retailers facing rapidly increasing revenues and high demand for their products entering into the season, they are also struggling with making those products ...

India's economic output increased by 8.4% in the second quarter of the current fiscal year compared to the same period last year. On some levels, this is good news. The figure indicates that the country's economy is recovering from the impact of the COVID-19 outbreak and its associated lockdowns. However, the skew in the numbers indicates that things are not back to normal. When compared to the same period the previous year, the overall output increased by 8.4%. It's worth noting that even basic movement within the country was only just starting to restart during this time last year. It's also important to remember that certain industries were completely destroyed by the lockdowns, while others remained stable or even grew. The national economy shrank 24.4 percent in Q1 (April-June) and 7.4 percent in Q2 (July-September) of the fiscal year 2020-2021, the year in which the pandemic wreaked havoc (July-September). During this time, there was also a large outflow of migran...