Heckyl Credit Risk Early Warning System captures company-related red flags based on a variety of business rules. We have analyzed the data around pledging of shares by promoters of listed companies.
In our view, pledging of stake by promoters is a potential red-flag for lenders as it a) indicates the stress that has piled up on corporate finance and b) it may lead to loss of management control for the promoters in case of invocation of shares. Read the rest of this entry »
Were you able to spot these newly incorporated companies in the construction sector?
Could these companies be the prospective targets for your Relationship Managers?
Heckyl Business Intelligence application identifies companies, who at some point in time, may require funds to finance their various business operations.
Heckyl BI engine spotted 494 recently incorporated companies, which are ventured into the construction business. Read the rest of this entry »
Were you able to pick up these activities in the cement sector during the last week?
Could these be opportunities for your Relationship Managers?
To help banks in identifying potential corporate borrowers, Heckyl has developed Business Intelligence (BI) module. Heckyl’s BI module, powered by news and sentiment analytics, identifies companies, who at some point in time, may require funds to finance their various business operations.
Any news update on business orders, new projects, expansion and growth plans, product launch, fund raising, joint venture, M&A, business transactions etc. is potential corporate lending opportunity for the banks.
Post demonetization of higher value currency notes on November 8, the Indian banks witnessed a huge inflow of cash. So far banks have received deposits worth over Rs 12.4 lakh crores in scraped currency notes. A sudden spurt in cash levels has led to excess liquidity in the banking system. It has also forced the banks to park excess liquidity in safe haven government bonds. However, a large portion of cash deposits is expected to be pulled out from banks in the near-term. But despite expected cash withdrawals, liquidity in the banking system is set to improve in medium to long-term.
Improvement in liquidity will force banks to ease interest rates. At the same time, it will also push banks to accelerate lending operations. However, conventional methods (word of mouth, reading newspapers, cold-calls and referrals) to augment lending are no longer relevant in the today’s digital world. Hence, banks will have to explore new and smart ways to reach out to the prospective clients. Read the rest of this entry »
Indian banks tend to take on more risks during an upturn in credit growth while non-performing loans (NPLs) of private banks are more reactive to changes in interest rates, according to the recent RBI working paper. The report highlighted a one percent increase in loan growth leads to a 4.3 percent rise in NPLs over total advances (NPL ratio) in the long run.
Post demonetization of higher currency notes, banks have received whopping Rs 12.4 lakh crore in cash deposits. Some portion of these cash deposits is expected to remain with banks, which will improve liquidity in the system. It will enable banks to ease interest rates and boost lending operations.
In trade deals, customers and sellers have conflicting objectives. Every seller wishes to get paid immediately. On the other hand, customer wants longer credit period. In such situations, bill discounting can help both the parties. The product/ services provider can get money instantly from bank/ financial institution after making payment of discounting charges. Then the seller can offer credit period to customer. And on due date, the bank can collect the payment from the customer. It is win-win situation for both customer and seller.