Specialist in Indian Banking and Economic Research

Hemindra Hazari

<p>It is now clear that the unnamed and disputed corporate non-performing asset (NPA) in <a href="https://www.smartkarma.com/entities/558" target="_blank" data-smartkarma-citation="entities:558:1">HDFC Bank Limited (HDFCB IN)</a> 2QFY2018 results was <a href="https://www.smartkarma.com/entities/6614" target="_blank" data-smartkarma-citation="entities:6614:1">Jindal Steel &amp; Power Ltd (JSP IN)</a> (JSPL). Despite the Reserve Bank of India’s (RBI) firm action, HDFC Bank continues to not report it as a NPA divergence. A letter from the bank to JSPL makes clear, however, that the account was irregular and overdue but probably within the 90 day grace period as on end September 2017. What is even more curious is that JSPL, which was having difficulty servicing its bank debt, is now borrowing high-cost funds from a non-bank finance company (NBFC) to settle its overdue with banks. </p>

It is now clear that the unnamed and disputed corporate non-performing asset (NPA) in HDFC Bank Limited (HDFCB IN) 2QFY2018 results was Jindal Steel &amp; Power Ltd (JSP IN) (JSPL). Despite the Reserve Bank of India’s (RBI) firm action, HDFC Bank continues to not report it as a NPA divergence. A letter from the bank to JSPL makes clear, however, that the account was irregular and overdue but probably within the 90 day grace period as on end September 2017. What is even more curious is that JSPL, which was having difficulty servicing its bank debt, is now borrowing high-cost funds from a non-bank finance company (NBFC) to settle its overdue with banks. 

HDFC Bank - The Curious Case of Jindal Steel & Power

Global Head of Research, Smartkarma

Mark Artherton

Global Head of Research

LR Research

Thematic (Sector/Industry)

<div class="content-highlight"><p>1.  <strong>Catalonia's parliament voted for full independence</strong> - with the Spanish government about to apply Constitutional rule 155 and take over Catalonia's government and police force this declaration is no real surprise.  Catalonia cannot force through independence, therefore we just see uncertainty growing for the Spanish economy.  We are growing more and more concerned about certain governments in Europe and the EU's support.  There is a clear difference in the way the UK has dealt with the issue…</p></div>

1.  Catalonia's parliament voted for full independence - with the Spanish government about to apply Constitutional rule 155 and take over Catalonia's government and police force this declaration is no real surprise.  Catalonia cannot force through independence, therefore we just see uncertainty growing for the Spanish economy.  We are growing more and more concerned about certain governments in Europe and the EU's support.  There is a clear difference in the way the UK has dealt with the issue…

Doing bespoke work since 2002....., Custom Products Group

Patrick Hansen

Doing bespoke work since 2002.....

Custom Products Group

Custom Products was started 14 years ago at Lehman Brothers by current co-founder Patrick Hansen, CFA. After 3 years at Lehman, Patrick moved the team to Macquarie Securities where Simon Rigney (co-founder) joined. 3 years ago we took Custom Products independent. 

Our core strength can be summed up three words. 1- Customization - we have very little off the shelf products and most work is done on a one on one bespoke basis. 2- Speed - We pride ourselves in our ability to get requests back to the client very quickly. 3- Confidentiality - We do not redistribute. There is no grace period where we wait a week and then mass blast. Any request stops with that client.

<p>We continue to track the Analyst Upgrades / Downgrades over the previous 2 week to identify potential trends in popularity. Which Sectors / Countries do the Analysts like and which ones do they not. Overall there were approx. 20% more downgrades than upgrades over the last 2 weeks.</p><h2>% of Upgrades relative to Total (Country Level)</h2><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/024/226/original/1.png?1492102101" class="editor-image img-responsive" data-smartkarma-image-id="24226"></figure><div class="content-caption"><strong>Source: Custom Products</strong></div><p>Taiwan and India had the most upgrades relative to total recommendations in the last two weeks. In Taiwan, 37 names had a least 1 upgrade. <a href="https://www.smartkarma.com/entities/745" target="_blank" data-smartkarma-citation="entities:745:1">Hon Hai</a>…</p>

We continue to track the Analyst Upgrades / Downgrades over the previous 2 week to identify potential trends in popularity. Which Sectors / Countries do the Analysts like and which ones do they not. Overall there were approx. 20% more downgrades than upgrades over the last 2 weeks.% of Upgrades relative to Total (Country Level)Source: Custom ProductsTaiwan and India had the most upgrades relative to total recommendations in the last two weeks. In Taiwan, 37 names had a least 1 upgrade. Hon Hai…

Most Popular / Unpopular Sectors and Countries in Asia - Ex Japan (Last 2 Weeks)

Equity Bottom-Up

<p>We track the number of Upgrades / Downgrades through Asia at both the Sector, Country and Company levels to identify trends in Analyst sentiment. We are basically looking for which Sectors were in and which were out over the last two weeks.</p><h2>Positive Side</h2><p>Over the last two week, the Non-Energy Minerals, Communications and Electronic Technology Sectors pick up the highest % of Upgrades relative to total recommendations in that sector. In Non-Energy Minerals, <a href="https://www.smartkarma.com/entities/6614" target="_blank" data-smartkarma-citation="entities:6614:1">Jindal Steel &amp; Power Ltd (JSP IN)</a> had 6…</p>

We track the number of Upgrades / Downgrades through Asia at both the Sector, Country and Company levels to identify trends in Analyst sentiment. We are basically looking for which Sectors were in and which were out over the last two weeks.Positive SideOver the last two week, the Non-Energy Minerals, Communications and Electronic Technology Sectors pick up the highest % of Upgrades relative to total recommendations in that sector. In Non-Energy Minerals, Jindal Steel &amp; Power Ltd (JSP IN) had 6…

Most Popular and Unpopular Sectors in Asia over the Last Two Weeks...

Asia focused research insights & advisory, Asia Advisors

Vinay Patel

Asia focused research insights & advisory

Asia Advisors

Asia Advisors is an independent financial advisory and research firm working closely with corporates and institutions to provide consulting solutions & research insights. We provide advisory services including capital solutions, business strategy and investment insights.
Firm is headed by Vinay Patel who has close to two decades of experience in research and business development at large, international investment banks such as HSBC and ICICI Securities. Led research efforts in areas of Macroeconomics, Asset Allocation & Investment Strategy for close to a decade in global & domestic research teams. As a business head in Singapore, advised top global investment management firms & Portfolio managers in Asia for India related investments.
Vinay was recently joined by Swapnil Manish, an investment banker and ex-ecommerce entrepreneur with more than 12 years of experience. Swapnil was the TMT banker at BNP Paribas and was part of several large M&A and ECM transactions (Bharti-Zain, Bharti Infratel IPO, Schneider-Zicom among several others). He's also had a stint as an ecommerce entrepreneur having launched & led Mumbai's first online grocery player.

<p>Expectations on economic reforms from Modi government are running high after the big win in Uttar Pradesh. Political analysts are expecting this win to ease Modi's chances for another term at national elections in 2019 and that would give him total 7 year period to push for reforms (In his victory speech Modi himself said he is now looking for delivering by 2022 - the 75th year of Indian Independence). Amidst the euphoria of Modi's victory, we would like to highlight some of the ground realities…</p>

Expectations on economic reforms from Modi government are running high after the big win in Uttar Pradesh. Political analysts are expecting this win to ease Modi's chances for another term at national elections in 2019 and that would give him total 7 year period to push for reforms (In his victory speech Modi himself said he is now looking for delivering by 2022 - the 75th year of Indian Independence). Amidst the euphoria of Modi's victory, we would like to highlight some of the ground realities…

Investors Need To Be Patient With Reform Momentum Even As Modi Win Ensures Policy Continuity

India

Jindal Steel Limited manufactures steel products. The Company offers steel rails, parallel flange beams and columns, angles and channels, plates, and coils, as well as engages in the power, mining, manufacturing, and infrastructure construction businesses. Jindal Steel serves customers worldwide.

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Jindal Steel (JINDALST IN)

HDFC Bank - The Curious Case of Jindal Steel & Power

It is now clear that the unnamed and disputed corporate non-performing asset (NPA) in HDFC Bank Limited (HDFCB IN) 2QFY2018 results was Jindal...

Hemindra Hazari

21 Things Worth Knowing Today (Issue 2)

1. Catalonia's parliament voted for full independence - with the Spanish government about to apply Constitutional rule 155 and take over...

Mark Artherton

Most Popular / Unpopular Sectors and Countries in Asia - Ex Japan (Last 2 Weeks)

We continue to track the Analyst Upgrades / Downgrades over the previous 2 week to identify potential trends in popularity. Which Sectors /...

Custom Products Group

Most Popular and Unpopular Sectors in Asia over the Last Two Weeks...

We track the number of Upgrades / Downgrades through Asia at both the Sector, Country and Company levels to identify trends in Analyst sentiment....

Custom Products Group

Investors Need To Be Patient With Reform Momentum Even As Modi Win Ensures Policy Continuity

Expectations on economic reforms from Modi government are running high after the big win in Uttar Pradesh. Political analysts are expecting this...

Asia Advisors

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