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MOSL: Morning India (31/August/18): 1. AGIC 2018 (Sectoral Deep Dive)-2. AGIC 2018 (Management Says)- 3. Automobiles (Channel Checks); 4. L &T Technology Services

MOrning India (31/August/18): 1. AGIC 2018 (Sectoral Deep Dive: CIBIL Banking | Expert - Pharmaceuticals | Expert - Automobiles); 2. AGIC 2018 (Management Says); 3. Automobiles (Channel Checks); 4. L &T Technology Services

 

Today’s top research theme

CIBIL Banking: Outlook on retail delinquencies and product pricing

We hosted Mr Yogendra Singh – Vice President and Head of Research, TransUnion CIBIL – as part of ‘Sectoral Deep Dive’ at our conference. Key takeaways:

• With an increase in funding cost, banks are moving toward higher-yielding products. Also, there has been a gradual shift toward lower-credit-score customers as segmental profitability has declined. Personal loans/credit cards/consumer durable loans, thus, are likely to grow at a higher rate than mortgages/vehicle loans and LAP.
• Volume is driving growth in retail loans. Average ticket size growth has been in single-digits across products.Rural confidence is much higher than urban confidence, despite the frequent rhetoric of rural distress and slower growth in income levels.
• Household leverage has increased considerably, but this is here to stay. Consumption expenditure (personal loans, credit cards, consumer durables) will tend to outpace income over the next few years.

Piping hot news

Rana Kapoor to serve as Yes Bank MD & CEO till further notice from RBI

• The Reserve Bank of India (RBI) has allowed Yes Bank CEO Rana Kapoor to continue in his present position till further notice just a day before his current three-year term was about to end. “We wish to inform you that the bank has received RBI’s approval that Shri Rana Kapoor may continue as Managing Director & CEO of Yes Bank till further notice from RBI. You are requested to take note of the same,” the bank told stock exchanges in a notice.