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Monthly Update On Cotton Yarn Production And Exports: January 2017        Indian Tractor Industry – Monthly Update        Indian Auto Component Industry: Demonetization Related Demand Pressure To Ease In Q4, But Rising Commodity Prices Poses Challenges        Indian Aviation Industry: Continued Rapid Growth In Traffic And Capacity Addition; But Trouble In Store As Atf Prices Continue Its Uptrend        Month in Review December 2016: Most available indicators point to a loss of economic growth momentum in December 2016        GST on services accruing to states to be twice as high as share of service tax devolved to State Governments on every Rs. 100 of taxable services in current regime        Indian Commercial Vehicle Industry ; Pre-buying ahead of BS-IV norms remains key in midst of recent headwinds        Indian Banking Sector: Performance Update and Outlook , Asset quality and profitability remain weak; capital being shored up through AT 1 bond issuances        WPI inflation rose to 3.4% in December 2016 from 3.2% in November 2016, converging with CPI inflation        Lower food inflation dampens CPI inflation to 3.4% in December 2016 from 3.6% in November 2016, while core inflation remains largely sticky       
 
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Indian Tractor Industry – Monthly Update
Monthly Update On Cotton Yarn Production And Exports: January 2017
GST on services accruing to states to be twice as high as share of service tax devolved to State Governments on every Rs. 100 of taxable services in current regime
Indian Aviation Industry: Continued Rapid Growth In Traffic And Capacity Addition; But Trouble In Store As Atf Prices Continue Its Uptrend
More...
 
FINANCIAL SECTOR RATING

ICRA’s Financial Sector Debt Ratings cover entities like Banks and Financial Institutions, Non-Banking Finance Companies (NBFCs) and Housing Finance Companies (HFCs). While all of these entities perform the same function of leveraging own funds and lending to others on a cost-plus basis, there are significant differences between them in terms of scale of operations, products and services offered, product delivery, regulatory requirements, and internal control systems. Moreover, the risk profiles of these type of entities can be quite varied. Depending on their requirement and ability to borrow the funding mix of these entities vary significantly, and include term loans, debentures, public deposits, working capital demand loan, cash credit from banks, commercial paper, and Mibor-linked loans, among others.

While NBFCs and HFCs flourished in the Indian subcontinent initially on account of regulatory differentiation, in the current scenario, there is a significant overlap between the business areas of HFCs and NBFCs on the one hand and with that of Banks and Financial Institutions on the other. ICRA’s ratings factor in the gamut of risks that can possibly affect the operations of a finance company: operating risks, financial risks, and management risks. The key determinants of operating risk include volatility in revenues and expenses, regulatory risks, risk of administrative expenses going out of hand, and risk of deterioration in asset quality. Financial risk, on the other hand is driven by capital adequacy, asset liability management, solvency, financial flexibility, and also accounting quality. Management risks cover the subjects of management quality and efficacy of systems.

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