EUR 120.00 For Business Accounts Only

MOSL: Morning India (28/April/20): 1. NBFC (Large NBFCs comfortable on liquidity front in near term); 2. 4QFY20 RESULTS (a. HDFC Life Insurance; b. Ambuja Cements; c. IndusInd Bank); 3. Financials – NBFC; 4. Ex

Morning India (28/April/20):

Today’s top research idea
NBFC: Large NBFCs comfortable on liquidity front in near term
** Given the headwinds faced by the sector over the past two years, most NBFCs under our coverage have increased liquidity on their balance sheet to 8-10% of AUM (from 4-5% of AUM). Thus, in a situation of loan moratorium on the asset side, they would be able to meet debt obligations for the 3-month moratorium period.

** We have also analyzed the 'adjusted' ALM for our coverage universe. The ALM has been adjusted for loan moratorium on the asset side based on the product they cater to.

** On the borrowings front, due to lack of clarity on moratorium for bank borrowings, we have conducted a sensitivity ALM analysis for both scenarios - with and without bank moratorium. In both cases, BAF and MASFIN have emerged on top of the pecking order.

Piping hot news
India considers proposal to guarantee $39 billion of small-business loans
India is considering a proposal to guarantee as much as 3 trillion rupees ($39 billion) of loans to small businesses as part of a plan to restart Asia’s third-largest economy, which is reeling under the impact of a 40-day lockdown, people with knowledge of the matter said. Under the proposal, small firms will be eligible to borrow an additional 20% of their credit limit, the people said, asking not to be identified as the discussions are private.