Page 32 - Icra

Icra narrows its GDP decline forecast for FY21 to 7.8% from 11% earlier

Agency had forecast a small contraction of one per cent during Q3

RBI's draft NBFC dividend policy unlikely to impact most players: Icra

The Reserve Bank of India's draft circular on dividend distribution by NBFCs is unlikely to impact most of the industry players, said ratings agency ICRA

Indian aviation industry to report a net loss of Rs 21,000 cr in FY21: Icra

Indian aviation industry is expected to report a net loss of Rs 21,000 crore in the current financial year against a net loss of Rs 12,700 crore in FY20 due to lower revenues and high fixed costs

Domestic carriers may post loss of Rs 21k cr in FY21 on revenue loss: Icra

The ratings agency has also revised downward its passenger traffic forecast with domestic passenger traffic estimated to decline 62-64 per cent this fiscal from the earlier forecast of 41-42 per cent

Realisations through IBC to take a hit of up to 40% in FY21: Icra

Covid-19 outbreak, suspension of new proceedings under IBC has sharply slowed down resolution process causing realisation for financial creditors to decline

Pent-up demand behind improved economic activity, may not sustain: Icra

The pick up in economic activity in October is the result of pent-up demand and may not sustain going ahead, domestic ratings agency Icra said on Tuesday. Multiple fast-paced indicators, including GST collections, have been showing a sharp recovery since October, which has also led many analysts to revise their overall GDP forecasts for the fiscal. "We caution that the spikes in production seen in the various sectors in October 2020, are an exaggeration of the true recovery on the ground, as they have been driven by a large component of pent-up demand that may not sustain after the festive period is over," the agency's Principal Economist Aditi Nayar said. The factors which remain to be watched are the pace of government spending in the second half of the fiscal, after the unexpected contraction recorded in the September quarter, she added. The potential re-imposition of restrictions in one or more states on account of a fresh surge in CVID-19 infections, may temper the momentum of

Analysts revise Q2 GDP projections, are divided on sharpness on contraction

As Q2 will be the second quarter of economic contraction, India in all probability has entered a technical recession for the first time since quarterly GDP data began being compiled

Changes to hybrid annuity model will help protect returns, says Icra

Recent changes to Hybrid Annuity Model (HAM) for road sector projects will help in improved cash conversion cycle as well as protect the returns for developers, rating agency Icra said on Thursday.

States' capital expenditure cut to cause GDP fall, estimates ICRA

While ICRA estimates an 11 per cent contraction in the overall GDP in FY21, it expects the contraction to narrow to 5-7 per cent in the Q3 and 1-2 per cent in Q4

12 major states may have to cut capex by Rs 2.5-2.7 trillion in FY21: Icra

Icra projected the aggregate debt of these 12 states to deteriorate sharply to 28.9% of GSDP

State govt-funded infra capex expected to remain weak in near term: ICRA

As per ICRA estimates, major states together had a budgeted capital outlay of over Rs 5.7 trillion for FY2021 as against revised estimates (RE) of Rs 5.1 trillion in FY2020

Recovery in domestic air passenger traffic continues in October: Icra

Domestic air travel demand continued on an upward trajectory month-on-month, with the October volume witnessing a 33% growth to 5.2 million passengers over September, Icra said

Housing sales may fall by 35-40% in FY21 as demand improved: ICRA

ICRA said the uptick in absorption levels during the second quarter of FY2021 has been driven by affordable and mid/upper-mid segments.

Q2 home sales up 60% sequentially due to unlocking, pent-up demand: Icra

Buoyancy supported by demand from returning NRIs; digitisation plays key role in enabling sales

MFI credit costs to rise 6% in 2 yrs as customers delay repayments: ICRA

About 12% of customers had not repaid their dues till August end, says ratings agency.

Credit cost for MFIs to rise to 6-7% in two years as loans remain unpaid

About 12% of customers have not repaid till August end

Corporate bond issuances to rise marginally to Rs 8 trillion FY21: ICRA

Fresh corporate bond issuances will cross Rs 8 lakh crore in FY21 as against Rs 6.55 lakh crore last fiscal, a report said on Monday. With estimated redemption of Rs 4.95 lakh crore in FY21, the volume of corporate bonds outstanding will rise by over 9 per cent to Rs 35.5-35.8 lakh crore, domestic ratings agency Icra said. It can be noted that promoting the corporate bond market is one of the stated objectives of policymakers and they have been repeatedly stressing on the same, saying the reliance on the banking system needs to be reduced. The rating agency said corporate bond issuances remained strong in the September quarter at Rs 2.2 lakh crore as against Rs 2.3 lakh crore in the first quarter. "Given the regulatory stance of maintaining accommodative stance of monetary policy and surplus liquidity environment, the issuances could remain strong and spreads are likely to remain narrow over the next few quarters," its head for financial sector ratings Anil Guota said. It said the

Sustainability of domestic demand in 2-wheeler to remain contingent: ICRA

Ratings agency ICRA on Monday said it expects that the sustainability of domestic demand in two-wheeler would remain contingent upon the COVID-19 scenario following the festive season

ICRA revises FY21 securitisation estimate to Rs 80,000 cr from Rs 1.2 trn

Volumes of securitisation had stood at Rs 2 trillion in the year-ago period.

ICRA revises down FY21 securitisation volumes estimate to Rs 80,000 crore

Domestic rating agency ICRA on Thursday revised down its estimate on securitisation for 2020-21 to over Rs 80,000 crore from the earlier Rs 1.2 lakh crore, blaming the coronavirus pandemic for the slower pick-up. Volumes of securitisation had stood at Rs 2 lakh crore in the year-ago period. Activity in the July-September period picked up to over Rs 15,000 crore as against over Rs 7,000 crore in the first quarter of the fiscal, it was still lower than expected. For the first half of the current financial year, the overall volumes were over Rs 22,700 crore as against Rs 1 lakh crore in the year-ago period, the agency said. According to the rating agency, most non-bank lenders were expected to resort to securitisation to raise funds in the July-September quarter, as seen earlier in September 2018 when liquidity dried up post default by the IL&FS group. However, because of the host of measures taken by the government and Reserve Bank of India, the availability of on-balance sheet ...