Saiel Samrat’s Post

Investment Banking in India :  In India, the Investment Banking market market is expected to witness a significant increase in revenue.  By 2024, the projected revenue is estimated to reach US$15.14bn.Looking ahead, the market is expected to grow at an annual growth rate of -1.96% from 2024 to 2028, resulting in a projected total amount of US$13.99bn by 2028.When comparing India's Investment Banking market market to the global landscape, it is worth noting that the United States leads the way with a projected revenue of US$119.10bn in 2024.India's investment banking sector is witnessing a surge in M&A activity as companies seek to capitalize on the country's booming economy. Source : statista . 

In recent years, India's private credit market has emerged as a vital component of the country's financial landscape, playing a crucial role in providing alternative financing solutions beyond traditional banking channels. The private credit market encompasses a diverse range of NBFCs, AIFs, fintech platforms, and other entities offering credit facilities outside the conventional banking system. Unlike traditional banks, which have stringent lending criteria and regulatory constraints, private credit providers often offer more flexible terms tailored to the specific needs of businesses and individuals. What is fueling this space Gap in Traditional Financing: Traditional banks may be unable to meet the diverse and evolving credit needs of businesses, especially small and medium enterprises (SMEs) and startups. Private credit providers fill this gap by offering customized solutions, including working Asset Leasing/Financing, Structured debt and mezzanine financing. Emergence of NBFCs and AIFs: Non-bank financial companies (NBFCs) and alternative investment funds (AIFs) have played a pivotal role in expanding the private credit market. These entities leverage their sectoral expertise, risk assessment frameworks, and innovative funding structures to cater to underserved segments. Investor Interest: Institutional investors, including pension funds, insurance companies, and sovereign wealth funds, are increasingly allocating capital to Indian private credit opportunities. The attractive risk-adjusted returns offered by these investments have bolstered the sector's growth trajectory. Challenges Credit Risk Management: Effective credit risk assessment and management are critical, particularly in a diverse market landscape characterized by varying borrower profiles and economic cycles Liquidity and Funding Risks: Dependency on wholesale funding sources and market volatility can pose liquidity challenges for private credit providers, necessitating prudent asset-liability management strategies India's private credit market is poised for continued expansion, driven by evolving financing needs, technological advancements, and supportive regulatory reforms. As stakeholders navigate the opportunities and challenges inherent in this dynamic ecosystem, fostering transparency, innovation, and sustainable growth will be key to unlocking the sector's full potential and meeting the diverse credit needs of India's vibrant economy. #GFIO Raman Chandna Abhishek Goyal

Investment banking is a financial service that helps large corporations, governments, and high net worth individuals raise capital and manage financial transactions. Some key operations of investment banking are •Capital Raising •Mergers and Acquisitions •Financial Transactions •Financial Consultancy Investment Banking is one of the vast field related to finance world and has a impact on global markets on all levels. For example Inflation, Crude oil prices and commodity prices have impact on global markets which impact on investment banking operations. All the financial institutions and global markets are interlinked and everything have cascading effects on one another. Let’s take an example of india Crude oil price in india are currently $71 Per barrel, Inflation Rate in india is 5.49% with a aim to reduce it to 4% at the end of this financial year. Commodity prices in india such as Gold and Silver have seen a significant increase on indian as well as on global markets, Gold price in india currently is ₹ 78,772 per 10gm and silver price is ₹ 99,721 per kg. Let’s have a look on how Commodity prices have an impact on investment banking operations. We will consider price of Gold, gold market in india has been a bullish trend for almost a decade as gold is a major and most primary form of investment for Indian people which has proven very profitable for Indian investors. When we take an example of investment bank Gold is considered as a slow but profitable type of investment for a long term. Gold prices are not that volatile and to earn high amount of profits in short term is generally not possible. But as we said that every price fluctuation of any type of assets or commodity have impact on financial markets. So if gold prices are significantly high then the demand will be less as a result companies that are into Gold business their revenues will decrease and shareprices will show a downward trend then such companies will not be a profitable investment idea for an investment banks. In a nutshell financial markets are very much interlinked with eachother and have significant impact on day to day life. It’s just the matter of studying how the finance markets is going and finding a right opportunity to invest and make high returns. Sources, Commodity prices: moneycontrol Inflation Rate: Ministry of statistics and programme implementation (MoSPI) based on CPI

𝗡𝗲𝘄 𝗖𝗿𝗲𝗱𝗶𝘁 𝗔𝘀𝘀𝗲𝘀𝘀𝗺𝗲𝗻𝘁 𝗠𝗼𝗱𝗲𝗹 𝗳𝗼𝗿 𝗠𝗦𝗠𝗘 𝗟𝗼𝗮𝗻𝘀 State-run banks in India are introducing a new way to provide loans to Micro, Small, and Medium Enterprises (MSMEs). Starting in December, loans of up to ₹25 lakh will be given based on a business’s digital transactions, such as:Employee EPFO contributions,Electricity bill payments,Municipality tax records, andOther cash flow data. This new system will replace the traditional reliance on tax returns and collateral, making it easier for smaller businesses to get loans.                                                           𝗪𝗵𝘆 𝗜𝘀 𝗧𝗵𝗶𝘀 𝗜𝗺𝗽𝗼𝗿𝘁𝗮𝗻𝘁? MSMEs play a big role in India’s economy, contributing 30% to GDP, 45% to manufacturing, and 46% to exports. However, many small businesses struggle to access formal loans due to lack of proper credit history or assets to offer as collateral. This initiative solves that problem by focusing on their cash flow instead.            𝗞𝗲𝘆 𝗕𝗲𝗻𝗲𝗳𝗶𝘁𝘀:                                               1. 𝗤𝘂𝗶𝗰𝗸 𝗮𝗻𝗱 𝗘𝗮𝘀𝘆 𝗟𝗼𝗮𝗻𝘀: Faster loan approvals using digital data.    2. 𝗠𝗼𝗿𝗲 𝗜𝗻𝗰𝗹𝘂𝘀𝗶𝗼𝗻: Helps small businesses that don’t have traditional credit records.                                         3.𝗦𝘂𝗽𝗽𝗼𝗿𝘁 𝗳𝗼𝗿 𝗠𝗦𝗠𝗘𝘀: Boosts growth for the sector, which is vital for India’s economy.                                  The full rollout is expected by March 2025, and banks like SBI and Bank of Baroda are already prepared to process applications digitally. This move is a step toward making financial support accessible to all businesses, big or small. This is great news for MSMEs! If your business is eligible, now is the time to explore how this new system can help you grow. #MSME #Loans #DigitalFinance #FinancialInclusion

🌐 India's M&A and Investment Banking Landscape: Insights from H1 2024 The first half of 2024 has revealed a nuanced picture of India's mergers and acquisitions (M&A) landscape, marked by contrasting deal volume and value trends alongside dynamic shifts in the investment banking sector. M&A Activity: Value Up, Volume Down In a period characterized by economic recalibration, India saw a 4.4% increase in M&A deal value, reaching $37.3 billion. However, deals plummeted by 18.4%, particularly in mid-market transactions valued up to $500 million, which witnessed a 19% decline. Despite these figures, the period saw notable mega-deals exceeding $1 billion, underscoring resilience amid market adjustments. Sectoral Dynamics: Technology Takes the Lead The Technology, Media & Entertainment, and Telecommunications (TMT) sector emerged as a focal point, capturing $14 billion in deals—reflecting robust government initiatives and digitalization drives buoying investor confidence. Equity Capital Markets Surge India's equity capital markets flourished with unprecedented vigor, raising $29.5 billion in proceeds—more than double compared to last year. This surge was fueled by a rise in follow-on offerings (FPOs) and block trades, highlighting investor appetite and market confidence. Investment Banking Fees: A Mixed Bag While overall investment banking fees declined by 11%, ECM underwriting fees soared by 127%, setting a new benchmark since 2007. Conversely, fees from Debt Capital Markets (DCM), syndicated lending, and M&A advisory faced substantial downturns, signaling evolving client preferences amidst economic dynamics. Outlook India's M&A landscape is poised for strategic recalibration, propelled by sectoral realignments and global economic shifts. As we navigate these transformative times, adaptability and strategic foresight will be pivotal for stakeholders aiming to capitalize on emerging opportunities. #MergersAndAcquisitions #MandA #InvestmentBanking #FinanceNews #BusinessNews #EconomicTrends #MarketAnalysis #EquityMarkets #CapitalMarkets #FinancialServices #CorporateFinance #InvestmentTrends #DealMaking #FinancialAdvisory #InvestmentStrategy #FinancialMarkets #DealValue #DealVolume #BusinessInsights #IndustryAnalysis #CorporateStrategy #MarketTrends #EconomicGrowth #GlobalMarkets #EmergingMarkets #InvestmentOpportunities #StrategicInvestment #MarketPerformance #InvestmentOutlook #FinancialAdvisors #BusinessLeadership #MarketResearch #BusinessDevelopment #TechSector #MediaIndustry #Telecommunications #EntertainmentIndustry #TechnologyInvestment #DigitalEconomy #TechInnovation #DigitalTransformation #StartupEcosystem #VentureCapital #PrivateEquity 

The Future of #Investment_Banking in India As India’s economy evolves, so does the landscape of investment banking. IIM SKILLS recent article dives into the latest trends shaping the industry, from technological advances to regulatory changes and shifting client demands. A must-read for anyone looking to understand how these forces are driving growth, innovation, and new opportunities in the Indian market. 📖 Read more: https://lnkd.in/drR-Zyrv #InvestmentBanking #IndiaEconomy #FinancialTrends #FutureOfFinance

In India's financial sector, a notable disparity exists between lending to large corporations and Micro, Small, and Medium Enterprises (MSMEs), both in terms of credit allocation and the incidence of Non-Performing Assets (NPAs). Credit Allocation: Large Corporates: As of January 2020, large corporates held a credit exposure of approximately ₹46.7 lakh crore, reflecting a year-on-year growth of 6.3%. MSMEs: In the same period, the MSME sector had a credit exposure of around ₹17.75 lakh crore, indicating a significant gap in credit distribution compared to large corporates. Non-Performing Assets (NPAs): Large Corporates: As of January 2020, the NPA rate for large corporates was 19.7%, highlighting substantial asset quality challenges within this segment. MSMEs: The MSME sector exhibited a lower NPA rate of 12.5% during the same period. Within the MSME category, micro enterprises had an NPA rate of 9%, while medium-sized enterprises faced a higher NPA rate of 18%. Credit Disparity and Access: Credit Gap: Despite their significant contribution to the economy, MSMEs face a substantial credit gap, estimated at $240 billion. Lending Bias: Traditional financial institutions often exhibit a preference for lending to large corporates due to perceived lower risks and better collateral availability, leading to limited access to formal credit for MSMEs. Implications: Economic Impact: The skewed credit distribution hampers the growth potential of MSMEs, which are crucial for employment generation and economic diversification. Policy Measures: Recognizing these challenges, the Indian government has introduced initiatives like the Credit Guarantee Scheme to enhance credit flow to MSMEs. Addressing the credit disparity between large corporates and MSMEs is essential for fostering inclusive economic growth and ensuring the financial stability of India's diverse business sectors.

India's consumers and some conglomerates are on a borrowing spree that is starting to worry regulators and, if left unchecked, could threaten the country's breakneck economic growth. Under a rosy economic outlook, India's largest corporates are investing a total of US$800 billion in business expansion over the next decade, 3x the amount spent over the last 10 years, notes S&P Global. Although operating cash flow comes first in underpinning this aggressive expansion, followed by equity funding and joint ventures, Indian conglomerates inevitably need to increase their leverage. On the bank side, loan-deposit mismatch caught market attention. A report by S&P Global notes that the loans-to-deposits ratio reached 77.3% in June and is predicted to hit 80% at the end of 2024. The gap in the private sector is even worse, according to the rating agency. Household borrowings rose by more than 25% in March this year, compared with a year ago, a RBI report says. About a third of the retail loans were obtained by near-prime and sub-prime borrowers. These figures are warning signs of the deteriorating personal loan default, which has already manifested in the quarterly financial results of banks and non-bank financial companies.

“Navigating Corporate Lending in India: Deciphering Banks' Exposure Decisions” Lending to large corporates in India presents a unique set of challenges and opportunities for financial institutions. As banks grapple with the intricacies of assessing creditworthiness and managing risk, the decision-making process surrounding exposures requires careful consideration and strategic foresight. In recent years, India's corporate landscape has witnessed dynamic shifts driven by economic reforms, technological advancements, and global market trends. Amidst this backdrop, banks face the dual mandate of supporting corporate growth initiatives while safeguarding their own financial stability. The decision to extend credit to large corporates hinges on a multitude of factors, including the borrower's financial health, industry outlook, regulatory environment, and macroeconomic indicators. Banks must conduct rigorous due diligence to evaluate the risk-return profile of potential exposures and ensure alignment with their risk appetite and strategic objectives. Furthermore, the regulatory landscape plays a pivotal role in shaping banks' exposure decisions. Compliance with prudential norms, capital adequacy requirements, and sector-specific regulations is non-negotiable, necessitating a proactive approach to risk management and regulatory compliance. In the wake of the COVID-19 pandemic, banks have faced heightened scrutiny and increased pressure to fortify their balance sheets against potential credit losses. The pandemic-induced economic disruptions have underscored the importance of stress testing, scenario analysis, and contingency planning in assessing and mitigating credit risk. As banks navigate the complexities of corporate lending in India, transparency and communication are paramount. Engaging in a dialogue with stakeholders, including regulators, shareholders, and customers, fosters trust and enhances the credibility of banks' exposure decisions. In conclusion, lending to large corporates in India requires a judicious blend of financial acumen, regulatory compliance, and risk management prowess. By embracing a forward-thinking approach and leveraging data-driven insights, banks can make informed exposure decisions that support sustainable economic growth and drive value creation for all stakeholders. Let's continue the conversation and share insights on the evolving landscape of corporate lending in India. #CorporateLending #RiskManagement #Banking #IndiaEconomy #BusinessInsights

The recent surge in India’s investment banking sector, driven by a significant increase in corporate capitalisation and a thriving IPO market. Since April 2020, India has seen 235 Initial Public Offerings (IPOs), more than double the number from the previous decade. This growth is attributed to factors such as India’s growing geopolitical importance, political stability, and government initiatives like the Production Linked Incentive (PLI) schemes1 https://lnkd.in/gurJqrcx