Street signs: Farm loan waiver boost for tractor sales

The recent spate of farm loan waivers across the country may be causing a lot of heartburn to bankers and analysts are seeing this as a negative for banking stocks. But, the move is expected to give a tremendous boost to tractor manufacturers. A large portion of the ongoing waivers are on account of tractor loans. Following the 2008 farm loan waiver, tractor volumes clocked a compounded annual growth rate of 21 per cent for the next three years, says Credit Suisse. The brokerage expects another uptick in sales, following the latest round of waivers, and is recommending its clients to buy Mahindra and Mahindra.

Samie Modak

 
 
Listing gains unlikely for HNIs in CDSL
 
It may be difficult for high net worth individuals (HNIs), who used the financing route to purchase shares of CDSL in the initial public offering, to make money when the depository lists next week. The portion reserved for HNIs was subscribed 563 times. Assuming an interest cost of nine per cent per annum, the cost of acquiring one share of CDSL works out to Rs 294. This means CDSL shares will have to gain nearly 100 per cent on day one for HNIs to make a profit and exit.
 

Ashley Coutinho

 
I-bankers in demand
 
With the equity capital markets seeing traction, a lot of deals are landing at mid-sized domestic investment banks. The sudden increase in work load has prompted these banks to aggressively add new staff. At least three investment banks have increased their manpower by more than 50 per cent in the last one year. This comes as a relief to the domestic investment banking industry which has not seen much hiring since 2008. "The current IPO boom cannot be handled by top three or four players only, hence smaller banks like ours will get lot of opportunities and we want to be fully prepared," said the head of an investment bank.
 

Pavan Burugula