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MOSL: Morning India (21/August/19): 1. AGIC 2019: CEO Track Takeaways (1. Axis Bank; 2. Hindalco; 3. Panel Discussion; 4. Mahindra & Mahindra; 5. Shri. Gajendra Singh Shekhawat - Union Cabinet Minister); 2. AGI

MOrning India (21/August/19):

Today’s top research theme
AGIC 2019 - CEO Track: Axis Bank –Macros uncertain; Pursuing growth opportunities selectively
We hosted Mr. Amitabh Chaudhry, MD & CEO of Axis Bank, as part of CEO Track at AGIC 2019. Key insights highlighted from his presentation:
** The macro environment is showing signs of weakness as Indian corporates are going through a cleansing process. Growth is slowing down, even as consumption and capex remain weak. Even high frequency factors such as traffic movement, rail freight, cement production, etc., are witnessing a slowdown.

** Promoter leverage remains high, which along with difficulty in obtaining further credit has resulted in an increase in the number of defaults. Further, NBFCs with ALM/asset quality concerns are facing funding problems, which might take some time to resolve. It is increasingly focusing on becoming a 'Retail' bank as growth momentum has remained strong with retail advances growing at a CAGR of 25% over FY13-19.

** Bank is maintaining its cautious and conservative stand and has reset its wholesale credit underwriting with exposure levels commensurate with ratings, strengthening of early warnings signals, conservative approach towards BB & below, and reducing corporate bond book from INR400b to INR300b in one quarter. It is incrementally focusing on better-rated corporates and expects to grow 5-6% ahead of industry.

Piping hot news
Sebi mulls slew of reforms; tighter check on rating agencies
New Delhi: With an aim to further safeguard investors' interests and to take defaulters to task, capital market regulator Sebi is planning to unveil a slew of reforms, including for greater checks on credit rating agencies and for rewarding informants in insider trading cases with up to Rs 1 crore reward. The regulator is also planning to ease its norms for 'Muni Bonds' to allow smart cities and other entities undertaking tasks similar to municipalities to raise funds through this route.