BLOOMING INSIGHTS

The menace of non-performing assets (NPA) has long crippled the growth of the banking sector in India and has incapacitated from whole-heartedly participating in the economic growth process. The COVID-19 pandemic has further aggravated the position, as a result, the NPAs which had reached below 10% in pre-covid times have again crossed the 10% mark. Seeing the gravity of the situation, Honourable Finance Minister Nirmala Sitharaman, in her budget, announced the setting up of "ASSET RECONSTRUCTION COMPANIES'', to solve the peril of NPAs. But what is a BAD BANK???? Bad Banks and their Structure In simpler words, a bad bank is an asset reconstruction company that engages in buying bad loans (NPAs) from the commercial banks at discount and tries to recover the money from the defaulter by recommending a systematic solution over some time. The Govt has decided that the bad bank structure will consist of two asset reconstruction companies viz., National Asset Reconstructi...

We frequently come across the news of upcoming IPOs of companies. IPOs are very lucrative for the investors as they help to earn huge gains by investing in companies having significant future growth potential. However, there are also certain risks associated with them, which makes it important to analyse as to which IPO is worth investing. Here is how an IPO can be analysed and investment decision can be made: 1.    Find DRHP/RHP of the Company: Draft Red Herring Prospectus/ Red herring Prospectus basically lists out all required information about the company. This document can be downloaded directly from the website of SEBI or from the website of the stock market in which the company is being listed. 2.    Understand the Business Model of the Company: a)    Products/services and their revenue contribution- I t is important to take an understanding of the products or services offered by the company and their contribution. b)    Strength...

Background Adani group is an Indian multinational conglomerate. It was founded by Gautam Adani and is headquartered in Ahmedabad, Gujrat. Initially it was engaged in the commodity trading business but subsequently expanded in many other businesses like logistics, defense, aerospace, financial services, real estate, agriculture, etc. and came up with many subsidiaries.   Performance Records Adani Group maintained consistently rising revenues since 2009. As it can be seen in the chart given below, they earned whooping profit over the years, except for a huge downfall in the year 2017. This was because in August 2017, Indian Custom alleged that Adani groups have diverted funds from the company's book to Adani family tax havens overseas.    Source: Business Standard In the below graph, we can see the rising slope of the market performance of the firm in the preceding financial year.  The Downfall of 2021 The group was receiving a positive response in the share market ...

As individuals, we all have many financial goals like owning a house, going for a vacation, having a lavish marriage and creating retirement corpus. All such goals are achievable if we have a proper financial plan in place. Personal finance assists us in tracking our cash inflows and outflows, saving and investing our surplus money wisely, and in turn fulfilling our individual desires. Without a plan it wouldn’t be easy to fulfill our needs within the financial constraints. Although the sooner you start, the better it is, but, it’s never too late to create a financial plan for yourself and your family’s financial security. We hereby provide some financial tips for your financial well being: Create a budget  If you want to live within your means and achieve your goals, you should create a budget for your finances. You must have heard of 50/30/20 budgeting method which is very effective in managing your money. It goes like: •       Fifty percent of yo...

Let's bust a myth that only MBAs can bag high level corporate jobs. M. Com. students too can bag fancy yet high profile jobs in the corporate sector. With our immensely rich academic background, we can rock the world. So, presenting to you a fancy and rich corporate career for master of commerce students: Financial Analysis . In today's scenario, position of financial analyst is becoming one of the most coveted and demanded by the employers. From situations of outbreak which leads to market crash to situations of Sensex crossing 50000 mark, financial planning and analysis is utmost to ensure the very survival of businesses. Financial analyst bank jobs include investment banking, research, sales & trading, and commercial banking. Institutional jobs include private equity, research, and portfolio management. Jobs at corporations include investor relations, corporate development, treasury, and financial planning and analysis (FP&A). SCOPE: The market for mutual funds is ex...