Table of Contents

1. Current Rates

Alumni Article
2.
 Building a Global Career

Faculty Article

 Mushrooming Alternative Investment Funds (AIF) In Indian Economy

3.
 Cybercrimes in Indian Banking Sector
 Driving Corporate Governance with Block Chain Technology

Student Article

 The Art of Value Investing: How to analyse Banking stocks?

 Introduction to Mutual funds and recent events in the Mutual Fund Industry
 SWORD Financing: What Is It?
4.
 What really happened to Terra Luna Crypto?
 The muddle in UK’s economy
 The War of Ukraine & Its Global Impacts
 Things you (DON'T) want to know on Capital Raising

Top events in July – September quarter

 RBI to adopt four-tiered regulatory framework for Urban Co-operative Banks

5.  RBI taps top banks including HDFC, ICICI, SBI for blockchain-based trade
financing project.
 NPAs from MUDRA loans in Maharashtra at 16.32% till June 2022

6. FINKOSH TEAM
 Currency Rates 2022
(For the quarter July - September)

RBI Rates 

CRR 4.90%

SLR 18.00%

REPO Rate 5.40%

Reverse REPO Rate 3.35%

Bank Rate 5.65%

Commodity Rates (MCX) 

Commodit As on 31 July, As on 31 August, As on 30 September,

y 2022 2022 2022
Gold ₹ 4,7,100/10 grams ₹ 47,400/10 grams ₹ 49,960/10 grams

Silver ₹ 48,400/kg ₹ 53,600/kg ₹ 56,346/kg

Crude Oil ₹ 8,117.71/bbl ₹ 7,371.13/bbl ₹ 6,543/bbl

Currency Exchange Rates

Currency As on 31 July, As on 31 August, As on 30 September,

2022 2022 2022
1 US Dollar ₹ 79.21 ₹ 79.54 ₹ 81.80

1 Euro ₹ 80.91 ₹ 79.95 ₹ 80.04

1 British Pound ₹  96.39 ₹ 92.37 ₹ 91.21

1 Australian ₹ 55.27 ₹ 54.40 ₹ 52.28

Dollar
1 Singapore ₹ 57.33 ₹ 56.93 ₹ 57.01
Dollar
1 UAE Dirham ₹ 21.56 ₹ 21.67 ₹ 22.22
 Building a Global Career
Debraj Dasgupta (Alumni 1997)

(I am a 1997 VESIM MMS graduate and after starting my career in

India, I have so far progressed my career having lived and worked
across multiple countries- Switzerland, Germany, Japan, Singapore. I
share some tips here on what one could do as a student to adopt a
global career mindset and some lessons learnt from my past
experience which will hopefully help you on your own journey. If
you get inspired by my story, drop me a message on LinkedIn)
Live as if you were to die tomorrow; learn as if you were to live forever- Mahatma
Gandhi
Being a student in a MBA program is quite exciting because having completed your
bachelor’s degree (and also having possibly accumulated some work experience) one feels
like one is ready to take on the world but is also keen to rapidly learn the world of business so
they can rapidly transition into the corporate world. An academic career followed by a stellar
corporate career over 20-30 years is often a function of perseverance, growth mindset and
luck and upon reflecting upon my own journey I wanted to share some lessons here in this
article which could help you all on your journey ahead.
1. Cultivate a focused mindset: You need to get good grades for sure and study hard on all
subjects but the MBA program is also an opportunity for you to pick your battles and to
discover yourself, figure out what you are good at and ultimately shape the career choices
that will define your journey for the next 20-30 years. For example, are you passionate
about corporate ethics or are you keener to be a financial analyst? Do you see yourself
energized to think about whether you are a Chief Ethics Officer or Chief Financial Officer
in a company? What subjects are most energizing to you? Do reflect and make notes on
possible career choices that each subject lends itself to throughout your MBA journey and
do take these notes in your personal journal as you go along your journey as it will serve
you in the long run.
2. Expand your network: It’s fun to hang out with friends after classes and do continue
doing that but try to also consciously expand your network into meeting people that fall
outside your comfort zone. For example, if you decided to develop your career in
Marketing in the Financial Services industry, have you already researched and found out
who are some of your seniors from VESIM who are already working in this role? As a
next step have you reached out to some of them on LinkedIn and checked with them if
they would be open to meeting you for lunch or a cup of coffee? If you do manage to get
an appointment with one of your seniors, that is great news. As a next step, when you do
have the meeting, this is a great opportunity for you to ask questions about what are the
exciting and challenging things they face day to day on their job. Nothing better than
asking someone who is already in your dream job what makes them tick - isn't it ?
3. Follow the news: While you are no doubt reading Economic Times and following
business news on TV, are you also expanding your horizons on where you get your news
on a day to day basis and are you also thinking about how the news you consume on a
daily basis shapes your mindset towards your future career? For example, if you want to
 become a Legal professional in the Cement industry, do you know the main conferences
where the Legal professionals in Cement industry get together? During COVID period a
lot of the conferences became online events and you can easily find many of these events
on YouTube. See if you can search for these conferences on YouTube and get updated on
most current and pressing issues facing this community and also connect with these folks
on LinkedIn. Something that you can easily do in your spare time!
4. Create a 5-year forecast CV: Here is a fun exercise you can do in your spare time.
Imagine you are 5 years into your chosen career. Can you outline on a CV what your
career progression looks like over those 5 years? Which dream companies you have
worked for and what dream jobs have you done in that time. Save the file somewhere and
revisit it after 5 years and compare. How did your real-life journey look different from
your planned journey? What would you have done differently 5 years later?
5. Expand your horizons: Do you get to travel abroad? In case you do, try and interact with
folks from different nationalities and observe how they differ culturally. Observe if they
challenge any biases you may have about them or the way they engage with you. Do they
make stereotypical observations about you or do you make these observations about them
too? What does it look or feel like? Did you watch TV shows like Succession or movies
like Margin Call? How would you have reacted in certain situations in some of these
scenes if you were working within these organizations? Have you ever tried Sushi? How
would you imagine yourself working and living day to day if you were stationed in Tokyo
and Sushi was the most often consumed food? There are TV shows on Netflix these days
that show you how day to day life looks like in these places. Try and imagine what it could
look like for you. Today it's a Netflix show; tomorrow it could be you in real life! All the
best!
 Faculty Articles
Mushrooming Alternative Investment Funds (AIF) In Indian Economy
Dr. Anju Motwani

“The beauty of diversification is it’s about as close as you can get to a

free lunch in investing.” — Barry Ritholtz

Diversification into traditional investment avenues like Stocks, mutual

funds, debt, gold has been a classic suggestion by various experts till
date. One more asset class that is mushrooming well in the Indian
economy presently is Alternative investment funds (AIF).

AIF are the funds that invest in contemporary asset classes like Venture capital, private
equity, coins, antiques, stamps, real estate, hedge funds cryptocurrencies etc.

According to Knight Frank's World Wealth Report 2020, the number of ultra-high net worth
individuals (UHNWI) worldwide is expected to increase by 27% over the next five years. Six
of the top twenty fastest-growing nations as determined by them are in Asia, which is headed
by India and is projected to expand by 73%. In accordance with this, India is included among
the top five nations in the Asia Pacific area in terms of the number of high net worth
individuals in another World Wealth Report 2020 by Capgemini (HNWIs). According to the
research, except for a few years, the HNWI population in India is rising exponentially. It also
discusses the rise of the HNWI population in India relative to the Asia-Pacific area.

Prior to 2012, Mutual Funds, Collective Investment Schemes, and Venture Capital Funds
were the only entities covered by the Securities and Exchange Board of India's (SEBI)
investment management laws (VCF). The VCF route was one of the heavily modified for
investments. This was mainly due to the lack of specific laws for private capital pools and
investment entities. Additionally, the other funds may not receive the same privileges and
discounts offered to VCFs generally. However, this prevented VCF from accomplishing its
only goal of supporting early-stage companies.

In order to facilitate capital flows into alternative asset classes, SEBI recognized the need to
identify these other funds as a separate asset class and instituted the Alternative Investment
Fund (AIF) regime in August 2012.

India in particular and Asia as a whole are prepared for the next significant expansion of
alternative investment products. AIFs in India have the same amount of assets under
management (AUM) as mutual funds had in 2009. The industry and the market are currently
poised for an alternative investment funds paradigm change.

According to a forecast by Anand Rathi, the total amount of investments made through AIFs
would increase at a 25% CAGR between 2022 and 2025, driven by wealth experts that
provide AIF products as alternatives to high net worth individuals (HNIs), household
workplaces, and insurance companies.
As of May 2022, over 900 AIFs have registered with SEBI, and capital commitments
increased at a compound annual growth rate of 63 percent between 2012 and 2022. It is
estimated that the global alternative investment AUM would rise from $4.1 trillion in 2010 to
$10.7 trillion in 2020 and $17.2 trillion by 2025.

The research also claims that 1,625 investment transactions totaling $38 billion were made by
Indian start-ups in the fiscal years 2021 and 2022. By the first week of May 2022, India had
gained 15 unicorns, bringing its total to 100. The research also states that AIFs stand to
benefit from the promptly increasing percentage of the populace that is becoming "wealthy".

AIFs, which are defined as

privately pooled investment
vehicles that amass assets to
invest in accordance with a
specified policy for the benefit of
investors, are governed by the
SEBI (Alternative Investment
Fund) Regulations, 2012.

AIFs are divided into three types

in accordance with SEBI regulations. Venture capital funds, angel funds, SME funds, social
venture capital funds, and infrastructure funds are all included in Category I AIF. Private
Equity (PE) Funds, Real Estate Funds, Funds for Distressed Assets, Debt Funds, and Funds
of Funds are all included in Category II AIF. Hedge funds and private investment in public
equity (PIPE) Funds fall under Category III AIF, which includes those that trade with the
intention of earning quick profits.

80% of the entire assets, or about $5 lakh crore, go into Category II AIF, followed by
Category III (57,953 crores) and Category I (48,394 crores), in that order.

“Category II offers a plethora of products. There will be real-estate products, long-short

products, debt funds but with different product offerings. For example, there are funds which
focus on providing debt funding to start-ups with a fixed return and so on,” as stated by PMS
Bazaar.

AIFs are providing originality in terms of product differentiation since, in the opinion of
experts, "conventional investment pools are progressively being fragmented and encountering
issues in product innovations, uniqueness, and alpha production owing to the size and other
considerations."

The traditional investment options that investors are now exposed to include mutual funds,
unit-linked insurance plans (ULIPS), direct investments, and portfolio management services.
But the main purpose of these options is to trade equities. Investor demand for alternative
investments is therefore still unmet.

As a result, AIFs are increasingly used to introduce themed and curated merchandise because
it is challenging to convey innovative concepts on traditional platforms.
AIF as an investment tool is surely giving ease of transaction, scientific diversification, and
risk mitigation for investors. HNIs have started tracking AIF and find it a suitable and better
substitute for PMS. Now the most awaited reform would be when AIF will be available to
retail investors too and with markets maturing and a good level of awareness amongst retail
investors as well the same isn’t far from reality.
 Cybercrimes in Indian Banking Sector
Dr Sushma Verma

Banking sector is the backbone of any economy. Usage of Information

Technology (IT) can go a long way in increasing the efficiency of this
crucial sector. Narsimha Committee (1991-1998) recommended using
IT in banks for increasing their efficiency. Banks in India have utilized
technology significantly for expanding their services and providing
better customer service. However, this has also given rise to cyber-
crimes. Cybercrimes typically refers to any criminal activity carried
out using the internet. Cyber frauds have led to huge monetary losses to the customer as well
as banks. As per the Times of India Report dated March 29, 2022 India loses 100 crores daily
to cyber frauds with Maharashtra, Delhi, Telangana and Tamil Nadu accounting for more
than 80 percent of the loss. In addition to monetary losses, cyber frauds also lead to the
infringement of confidential information, operational risks, and reputation risks among many
others. As per RBI data, common cyber frauds in the Indian banking space includes vishing,
phishing, and remote access. Considering the significance of the banking sector in the socio-
economic development of the country, it is extremely important to save it from cyber-attack.
Following can be done to reduce the danger of cyber-attack significantly:
● Dynamic device authentication and web-based transaction verification are to be
employed.
● Notifications to be provided to customers confirming the validity of their transactions.
● Customers should use a secure network
● Firewall to be installed in every workstation as it blocks communication from all
unauthorized sources.
● Banks should activate two-factor authentication in all accounts.
● Banks should restrict downloading of all unauthorized software in all workstations.
● All employees as well as customers to be appraised about the risk involved in opening
emails from unauthorized sources.
● A detailed awareness programme should be launched by banks from time to time for
employees as well as customers.
 Driving Corporate Governance with Block Chain Technology
Dr. Subhashish Roy Chowdhury

Blockchain technology (BCT) is a transparent, distributed,

decentralized technological chain growing at CAGR of 35% in 2017
– increased to 42% in 2018 and expected to spend $12 billion by
2022. Though it has innumerable pros but can also be a trajectory of
illicit and unregulated activities. BCT can offer smart solutions to
classical governance inefficiencies in corporate more strongly by
eliminating the potentiality of corporate frauds and also benefiting
institutional investors, shareholders, in-house/outdoor stakeholders
and minorities.
Architecture and modus operandi of BCT:
a) BCT is an open ( anyone with an internet connection can join the chain ) , distributed
(many can enter into transactions without a centralized intermediary – no authority can
either allow or deny access to the chain - the chain is a composite of computers across the
world connected to each other on the network directly or indirectly via an overarching
software protocol) , decentralized (no single party can control / influence the chain – it is
governed by a set of rules which no party forming part of the chain can violate it or
deviate from it ) and global ledger/ database (transparent data storage capability
however, a limited capacity and an expensive archive) .
b) As a BC envelope that connects a large and unlimited number of computers across the
globe, each computer in the chain is termed as ‘Node’ having the same copy of the
database. The BC database has 2 key elements viz. (a) Record – which is information,
data, contract, money or almost anything else, (b) Block – a bundle of records linked to
other blocks, creating a chain.
c) When a record with a transaction is created in the chain, the nodes synchronize between
themselves along the entire chain and checks those transactions to ensure its validity
subsequent to which, the record/transaction is linked to the block post its threadbare auto
validation.
d) Each block auto creates its own unique fingerprint known as cryptographic ‘Hash’ through
a mathematical ‘guess game’ known as the ‘Proof Of Work’ and connects with the hash of
its immediately preceding block in the chain with a timestamp which is non-tamperable
after being added and helps in data tracking and information security.
e) Hash takes the digital information and generates a unique string containing letters /
numbers which is then uniquely associated with the block’s transactions. The Hash code
changes whenever the block is edited in any way thus making it extremely difficult for
information on the BC to be changed without getting noticed across the chain.
f) After a Node finds a valid Hash for the BC, it broadcasts the solution to the rest of the
network which enables other Nodes to cross verify that the resulting Hash meet the
protocol requirements. If the consensus protocol between the Nodes proves that the Hash
is valid only then the block is added to the chain over writing the preceding block – a new
BC is formed.
Opportunities and threats of Blockchain Technology
Opportunities (Advantages) of BCT
a) Eliminates human intervention: Transactions being approved by all nodes on the BC
eliminates human intervention
and resultant manual errors.
Single node computational
error would only be made on a
single copy of BC, repetition
of it by at least 51% of the
nodes can only multiply the
error which is a near
impossibility in BC.
b) Reduces cost: Cost for any
third-party verification and
validation of a transaction as it
happens in case of a manual
transaction is largely reduced.
c) Decentralized transparent data storage: BC information isn’t centrally stored and
controlled single handed hence, has less susceptibility of tampering / hacking the database
as it has a universal visibility across the chain.
d) Time efficient: BC is operational 24x7 in contrast to any other organisation like a bank,
corporate etc. Like in case of a cheque deposited in a bank can be completed in a BC
instantly with utmost accuracy.
e) Secrecy of user information: BC user nodes can’t access identifying information about a
user making a transaction without knowing unique code ‘Public hence, the personal
information of the user initiating any transaction will remain unrevealed to any other user
in the chain.
f) Secured transaction: A BC transaction is authenticated / validated by thousands of nodes
only after which, the transaction is added to the BC block with a unique hash attached to it
as a distinctive identifier.
Threats (Disadvantages) of BCT
a) High technology / power cost: ‘Proof of Work’ system used to validate a transaction
consumes huge computational power. Some solutions are off late evolving like using solar
power, power from wind farms by BC mining firms.
b) Speed inefficiency: “Proof of work’ system takes about ten minutes to add a new block to
the chain and at that rate the chain can only manage approximately seven transactions per
second.
c) Path of illicit activity: Illegal/illicit trading can easily happen on a BC as observed in
’Silk Road’ – an online dark web involving drug marketplace which was operational
between February 2011 and October 2013 before it was shut down by FBI (Federal
Bureau of Investigation), USA.
Inherent risks in a BCT: BCT like any other technology at a nascent / infant stage isn’t
immune from its inherent risks hence, it is prudent to recognize those risks, quantify them
and fetch a suitable mitigation plan. Few of such risks are as presented below:
a) Technological risks linked to technology integration, data privacy / security, technology
performance and speed, consortium IP protection
b) Operational risks linked to process governance and control, auditability scope, asset
ownership and possibility of theft / loss
c) Regulatory risk involves legislature and statutory compliance / adherence, anti-trust,
money laundering, ‘Know Your Nodes – KYN’
d) Financial risks related to funding of the chain, financial controls in place, risk of
accounting and financial reporting
e) Reputational risk involves seamless functioning of the chain, failure of which will result
into poor client experience and loss of client faith
f) Contractual risk involves monitoring of adherence to several SLAs between participating
nodes in the chain and the network administrator as well as service providers. BC may be
exposed to 3P material and service provider risks as most of its technology might be
sourced from external vendors and the maintenance contracts may also be with them.
Driving Governance with BCT: BCT can offer smart solutions to classical governance
inefficiencies in corporate especially in the relationship between shareholders and corporates.
Corporate Annual General Meetings have become mundane annual rituals filled with
procedural flaws mainly when there is remote voting by shareholders which can be
automated and mechanized thus, reduce shareholder voting costs substantially and increase
voting transparency and enhance voter verification mechanism. Currently, the pace of AGM
decision making engine has been partially ruptured due to market securities regulation and
other disclosure, absence of shareholders in the AGM and limited slot for a shareholder to
present his/her point of contention wherein BCT can play a magical role in harmonizing the
activities theatrically involving more intellectual competence from far off places to enrich the
decision-making process. Under the Agency system, Management under a board structure
consists of numerous fractional owners with diversified mindsets. Decision making power
allocated in such hands of diversified shareholders would not be workable with such non-
coordinated views applied in finalizing a decision. This is a typicality of an Agency Problem
leaving the decision at the mercy of conflicts and its resolution by when, the decision itself
has lost its significance. Transparency and trust together forms the warp and web of corporate
governance. In most of corporates, it has been observed that minority shareholders are left to
the mercy of the delegated board acting clandestinely in their own interest at the cost of
interest of these minorities. Here comes the utility of BCT where opacity between
shareholders and board members can be eliminated by establishing more transparency and
trust. BCT as ‘Consensus and transparent’, eliminates the probability of collusion, frauds,
divergence in agreement about governance and reduces ‘Dominance of One on all’ leading to
misconduct by the ‘One’. ‘Shared Digital ledger’ increases visibility and transparency to all
network nodes. Moreover, deleting / changing transaction records on a BC cannot happen
without ‘Node Consensus’. Additionally, a ‘Time Stamp’ on all transactions enables BC
members to see the transaction source and ownership thereby enhancing the potent possibility
of reducing frauds.
References:
1. https://techjury.net/blog/blockchain-statistics/#gref
2. https://www.investopedia.com/terms/b/blockchain.asp
3. https://en.wikipedia.org/wiki/Blockchain
4. https://widgets.weforum.org/blockchain-toolkit/risk-factors/index.html
5. The Modernization of Corporate Governance: Blockchain as a solution? Anne Lafarre ,
24-25 January, 2019 , Tilburg University
6. The Potential Impact of Blockchains on Corporate Governance: A survey on
Shareholders’’ Rights in the Digital Era - Véronique Magnier & Patrick Barban ,
Intereulaweast, Vol. V (2) 2018
7. Corporations on Blockchain: Opportunities & Challenges, Alexandra Andhov - Cornell
International Law Journal Vol. 53
 Students Articles
The Art of Value Investing: How to analyse Banking stocks?

The Banking Industry as a whole is always an economic driver of any nation. Banks play a
vital role in an economy in lending and borrowing funds.
Profile of the Industry: -
There are two pillars of the economy
1. Monetary Policy.
It is mainly controlled by the RBI. It acts as a watchdog in an economy and creates various
policies beneficial for controlling inflation and poverty and controlling liquidity in the
economy.
1. Fiscal Policy.
It is mainly controlled by the
Government of India. It has the
function to impose taxes and
various laws in the economy for
regulating in a smooth manner.
We can view a NIFTY50
weightage of financial services
which includes banks and
NBFCs.
In NIFTY 50, the share of
financial Services is highest
which is around 37% as on Aug 30, 2022.
In every economy, banks play a vital role in the growth and development of the economy.
The banks act as intermediaries between the people of the country and the central banks.
In India, the Central bank which is the Reserve Bank of India (RBI) plays a vital role in the
economy. It was established on April 1, 1935, under the provisions of the Reserve Bank of
India Act, of 1934.
Initially, the central office was located in Kolkata but was permanently moved to Mumbai in
1937. The Central governor sits in the central office and this is where policies are formed.
Though it is originally owned by private people, since its nationalisation in 1949 the Reserve
Bank of India (RBI) is fully owned by the Government of India.
As of today, there are

Types of Banks Total banks

Public sector banks 12

 Private sector banks 22

Foreign banks 44

Regional rural banks 43

Urban Co-operative banks 1484

Rural Co-operative banks 96000

As per the reports, there are over 213,145 ATMs in India out of which 47.5% are in rural and
semi-urban areas.
According to RBI, the bank credit stood at USD 1.56 trillion as of December 2021.
The bank deposits stood at USD 2.48 trillion as of FY21.
In FY21, total assets in the public and private banking sectors were US$ 1,602.65 billion and
US$ 878.56 billion, respectively.
RBI has decided to set up a Public Credit Registry (PCR), an extensive database of credit
information, accessible to all stakeholders. The Insolvency and Bankruptcy Code
(Amendment) Ordinance, 2017 Bill has been passed and is expected to strengthen the
banking sector. Total equity funding of the microfinance sector grew 42% y-o-y to Rs.
14,206 crores (US$ 2.03 billion) in 2018-19.
As of February 21, 2022, the number of bank accounts—opened under the government’s
flagship financial inclusion drive ‘Pradhan Mantri Jan Dhan Yojana (PMJDY)’—reached
44.63 crore and deposits in the Jan Dhan bank accounts totalled Rs. 1.58 trillion (US$ 21.25
billion).
Rising income is expected to
enhance the need for banking
services in rural areas, and
therefore, drive the growth of the
sector.
India is the world's largest market
for Android-based mobile lending
apps, accounting for ~82% of all
online lenders worldwide. India
currently has 887 active lending apps.
The digital payments revolution will trigger massive changes in the way credit is disbursed in
India. Debit cards have radically replaced credit cards as the preferred payment mode in India
after demonetisation. In January 2022, the Unified Payments Interface (UPI) recorded 4.62
billion transactions worth Rs. 8.32 trillion (US$ 111.8 billion).
Industry Financials:-
The following are the key factors that determine Industry Financials:
● BALANCE SHEET
A statement that shows the financial position of the bank. It shows the profits, losses, assets,
liabilities, share capital, reserves, etc. of the bank. Every bank has to prepare a balance sheet
at the end of the year and also every quarter.
● PROFIT AND LOSS ACCOUNT
It indicates whether banks are in profits or losses. It contains all incomes, expenses,
depreciation on assets, gross profits, and net profits at the end.
● CASH FLOW STATEMENT:
A cash flow statement is a format or statement which indicates all the information of all cash
that a company receives usually in the form of income and expenses or outflows of the
company with that respect apart from the above financial statements, some financial ratios
help to indicate the financial position of banks considering various factors:
● CURRENT ACCOUNT SAVING ACCOUNT RATIO:
The CASA ratio shows the total amount of current account and saving account deposits with
the bank.
● GROSS AND NET NPA RATIO:
Non-performing assets refer to loans and advances which are yet to be recovered after 90
days. It plays a major role in the profitability of banks. The NPA ratios should be kept
minimum. Lower is better.
● YIELD TO ADVANCES:
It shows the lending rate of the portfolio. It shows how much financial risk the bank is
carrying. It also shows the pricing of loans with underlying assets.
● RETURN ON ASSETS:
This ratio shows how much value a company’s or bank’s investment generates. This is the
major indicator of the productivity and profitability of banks. This ratio should be higher.
Higher is better.
● CAPITAL ADEQUACY RATIO:
The ratio of banks' capital about the risk-weighted assets to the current liability. It shows that
the company can manage its NPA if it goes bad.
● NET INTEREST MARGIN:
The net interest margin is a difference between the lending rate of banks and the borrowing
rate of banks which is taken by the public. It has a lot of significance in the calculating
profitability of the company as it is the core operating business of the company.
● SALES GROWTH:
As the name suggests, sales growth is the growth rate at which the operations of the banks
expand over a period.
 ● INSTITUTIONS HOLDING:
Institutional holding has significance in the analysis part of the company. It shows how much
FII and DII hold shares in the banks which acts as a measure of whether to invest in the
company or not.
● RETURN ON EQUITY:
Return on equity is a ratio of total assets divided by total equity.

MOATS of the industry: -

1. High capital-Intensive Industry
2. Strict regulations
3. Vast investments and branch network
Challenges Faced by the Industry: -
Risks which are carried by the banks are as follows
1. Credit Risk
The credit risk is where the lent amount can go wrong on the defaults on the payments of
interest principal and interest.
2. Interest Risk
The interest risk at which opportunity cost holds. The net interest margin and its
current account savings account deposits are included.
3. Liquidity Risk
The liquidity risk includes CRR, SLR, and liquidity ratio as per BASEL requirements.
The liquidity is indirectly related to the REPO rate and the REVERSE REPO rate
prescribed by the RBI.
Possible Growth drivers of the industry:-
1. Diversification of the revenue streams
2. Mergers and acquisitions
3. Technological innovations
4. Improved risk management practices
5. Transactions 24*7

Possible growth hinders of the Industry:-

1. Increase in NPA
2. The threat of new-aged lending systems ( Eg. Neo banks)
3. The threat of peer-to-peer lending system.
4. Changing laws & regulations and monetary policies.

Rather than doing all of these hustles and bustle, we have come up with a solution that
simplifies your analysis.
Here is a CHEAT SHEET which will be useful while analysis of any bank. You just
have to give points in another column for the banking stock you are investing in.
CHEAT SHEET

Sr No. Ratios considered Parameters Points Table

1. CASA > 35%

2. Capital adequacy > 15%

3. Net Interest Margin > 4%

4. Gross NPA < 6%

5. Net NPA < 2%

6. Sales Growth > 10%

7. Return on Equity > 10%

8. Institutional Holding > 20%

Total Points _______ OUT OF 8

Disclaimer:-
I am not a SEBI-registered investment advisor. This information is provided only for
educational purposes. Please ask your advisor before investing.

Ankur A. Phadke
MMS 2021 – 2023

Instagram Handle: https://www.instagram.com/investors_destination/

 Introduction to Mutual funds and recent events in the Mutual Fund
Industry
A mutual fund is a trust that allows participants to pool their resources to make investments
across different markets and asset classes in accordance with the fund's declared investment
goals. Investing in a mutual fund allows a person to avail professional fund management
services provided by an asset management company, as well as get access to stocks, bonds,
money market instruments, and various other assets that person would not have access to
otherwise.
Investing in mutual funds requires some understanding of the many categories they might fall
into. Based on the structure of the mutual fund it can either be open ended or close ended. An
open-ended fund allows entry and exit at any point of time when the fund is active whereas a
close ended fund has a fixed maturity date. Broadly speaking there are 5 categories of mutual
fund schemes which are equity schemes, debt schemes, hybrid schemes and solution-oriented
schemes. A fund can either be actively managed or passively managed. In an actively
managed fund, the fund manager chooses the elements of the investment portfolio. A passive
fund is based on a specified index.
An index fund is another name for a passive fund. It is based on a predetermined index whose
performance is monitored. As a result, the performance of an index fund will resemble that of
the underlying index. These methods are not intended to outperform the market. Given that
the portfolio is determined by the index, the fund manager has no influence on investment
decisions. Consequently, these funds have minimal operating expenses. Index funds attract
investors because they attempt to replicate the performance of their underlying index, such as
the Sensex or the Nifty.
In a board meeting held on September 30, 2022, the Securities and Exchange Board of India
(SEBI) decided to include mutual fund units in the SEBI (Prohibition of Insider Trading)
Regulations, 2015. SEBI does not want anyone with access to unpublished price-sensitive
information to exit a scheme unjustly.
Sebi's decision derives from situations it has witnessed in recent years in which top
executives of a mutual fund company or members of the mutual fund industry ecosystem
liquidated their shares when they detected internal turmoil. Although the SEBI (Prohibition
of Insider Trading) Regulations, 2015 prevent fund managers, portfolio managers, and senior
executives of the fund industry from engaging in insider trading, there were no restrictions on
their ability to sell mutual fund units.
The Securities and Exchange Board of India (SEBI) also approved a proposal to expedite the
payment of redemption and dividends to unitholders of mutual funds by AMCs. The pay-out
method for redemption and dividend payment to unit holders will alter from the current 10
and 15 working days to 3 and 7 days.
The new regulations implemented in July 2022 prohibit the use of a trading account for the
purchase of mutual funds. The funds will be sent directly from the investor's account to the
fund house. Therefore, while purchasing units of MFs, a wire transfer will be required to be
made straight from the investor’s bank account to the AMC. Similarly, when an investor
redeems mutual funds, the money will go straight into their bank account that is associated
with their Demat account.

Isha Paradkar
MMS 2021-23

SWORD Financing: What Is It?

SWORD finance, or stock and warrant off-balance R&D financing, is a unique form of
funding created especially for biotechnology companies. SWORD funding's primary
objective is to support a company's biotech R&D initiatives.

A biotechnology company's success depends on its research and development efforts.

However, due to concerns about a project's viability and regulatory issues, R&D efforts are
fraught with a high level of unpredictability.

In other words, there is a strong likelihood that the R&D efforts of biotechnology
corporations will not yield profitable outcomes. Investors often are not ready to accept
conventional ways of financing in their investments in biotechnology companies because of
this uncertainty, which results in substantial investment risk.

Making Sense of Financial SWORD

SWORD's financing is handled by a separate organisation created just for that purpose. All
technologies created throughout the course of the company's R&D activities that offer value
beyond prospective financial returns are given to investors in the form of partial rights.

The financial resources needed to support R&D projects that might otherwise be unaffordable
are made available to biotech companies through this financing arrangement. The company's
R&D spending are also separated from other sorts of obligations and expenses by SWORD
financing. The company's financial performance won't be impacted as a result.

What Is the SWORD Financing Process?

Comparatively speaking to traditional stock or debt financing, SWORD financing is a more

sophisticated kind of fundraising. A special purpose entity (SPE) that is distinct from the
parent firm is first established as the process's starting point. The recently formed business
serves as a liaison between the parent corporation and the investors.
Following its creation, the entity acquires a technology licence from its parent firm that
enables it to utilise the parent company's research materials for additional R&D projects. In
exchange for royalties, the parent business typically has the option to buy the technology
created by the special purpose entity. A service contract between the new business and the
parent corporation is also established. The parent firm is required to offer all necessary
management and administrative services under the terms of the agreement.

Investors are then issued financial securities (units) by the special purpose corporation. Each
unit consists of one share of the special purpose entity's equity, one warrant to buy shares of
the parent business, and a call option entitling the parent company to repurchase the share. In
the event that the parent firm does not recall the shares, the investors use the warrants as a
type of insurance for investors.

Kritika Ved
M.M.S. 2021-23

What really happened to Terra Luna Crypto?

You may have heard about Terra USD and Luna; to give you a quick overview of each, go
here. The Luna network had a lot of moving elements before it collapsed.

Luna and Terra USD, commonly referred to as UST, are sibling coins that operate on the
same network. Luna coins are created by Terra, a blockchain network that is comparable to
Ethereum or Bitcoin. Terraform Labs' Do Kwon and Daniel Shin founded the network in
2018.
The UST coin was developed by Terraform Labs to function as an algorithmic stable coin
on the Terra network. The UST would not be backed by physical assets, unlike other stable
coins like USDC or Tether, which are backed by currency. As an alternative, the value of
UST would be supported by Luna, its sister token. A Luna coin was selling for over $116 in
April before falling to a penny's worth and being delisted. Before that, within a year the
coin moved from having a value of less than $1 in early 2021 to making numerous crypto
billionaires.
On May 7, UST worth over $2 billion was unstaked (removed from the Anchor Protocol),
and a large portion of it was rapidly liquidated. There is disagreement about whether this
occurred in response to higher interest rates or if the Terra blockchain was the target of an
intentional attack. The massive sell-offs reduced the price of UST from $1 to $0.91. As a
result, merchants began exchanging $1 worth of Luna for 90 cents worth of UST. The
stable coin began to depeg after a sizable amount of UST was offloaded. More people sold
 their UST in a panic, which increased the amount of Luna that was produced and
circulated.

After this crisis, cryptocurrency exchanges like Wazir X, Coin DCX , Binance, etc. began
to halt the trading of Luna coin. On September 15, it was announced that a court in South
Korea had issued an arrest warrant for Do Kwon, founder of Luna Coin.
If you plan to invest in cryptocurrencies and other highly volatile assets, you must
acknowledge that there will be a significant amount of risk involved. Hopefully, this terrible
Luna collapse is only a passing, black swan occurrence rather than the beginning of an
era.

Riddhi Yadav
MMS 2021-23
The muddle in UK’s economy
The UK and majorly all of Europe has been struggling with historic inflation fueled by
skyrocketing prices of imported Russian gas in the wake of the war with Ukraine. There has
been a sharp fall in GBP value vis a vis the US dollar, it has fallen to a 37 year low. A year
ago, the value of GBP was approximately 0.74 GBP for every 1 USD but the current rate is
0.89 GBP (As on 5th October 2022) for every USD, a 20% fall in its value. It will make UK’s
imports costlier and will add to its already increasing inflammatory pressure.
There has been a sharp rise in yields of GILTS (Government bonds in the UK) as well, which
signifies that the cost of borrowing has shot up for the government, it came at the time when
government was intending to borrow, partly to help poor tide over the cost of living crisis and
to kick start UK’s stagnant economy.
The biggest contributor to inflation rise is the price of energy. From February 2021 to August
2022 gas price in the UK has shot up from 38 Pence per them to as high as 655 pence per
them and is currently in the range of 255 pence, which is still very high as compared to prices
in the past. Major concern is that as winter is approaching millions of people are not in a
position to pay such high prices.
The UK was already facing the stagnation problem as the growth since 2007 is very low
($2.73 trillion to $2.89 trillion) and the 2020 pandemic became even worse for UK’s slow
growth and the UK economy has still not recovered to pre-pandemic level while other major
economies have recovered very well.
On top of that recently announced mini-budget (October 2022) UK government has
announced a freeze on energy bills, they have announced the biggest tax cut in the last 50
years to kick start economy to benefit both companies and individual taxpayers, the idea
behind this is to leave people with more money to spend and to encourage businesses to
invest in the economy. So, while they have announced massive tax cuts and a freeze on
energy bills, these giveaways are unfunded. In other words, the government hopes to plug
this loss of revenue through additional borrowings from the market.
Typically economies do give tax breaks to revive the economy but they give it to the less
well-off and cover for it by taxing the rich a bit more but here the UK's borrowing will rise
which will lead to a rise in interest rates. This means the loan which the UK government
would have gotten at just 0.4% a year ago will now get it at as high as 4.7% and with all this,
even the imports will become costlier which will further worsen the inflation there.

Pratik Jaysinghani
M.M.S. 2021-23

The War Of Ukraine & Its Global Impacts

Intro
The International Monetary Fund (IMF) has stated that Russia and Ukraine are both key
commodity producers, and disturbances there have resulted in increasing worldwide
prices, particularly for oil and natural gas. Food costs have risen as well, with Ukraine
and Russia accounting for up to 30% of world wheat exports. The IMF also stated that
slower growth and higher inflation will have an impact on the whole global economy.
Even before the conflict, the global recovery was slowing due to rising geopolitical
tensions, ongoing COVID-19 flare-ups, decreasing macroeconomic support, and ongoing
supply constraints.
The conflict was harming global economic prospects in the short term. It had major
financial implications in commodities and financial markets, trade and migration links,
and investor and consumer confidence. Neighbouring nations are projected to incur
significant economic harm as a result of their direct positive commercial, financial, and
migratory links with Russia and Ukraine.
Majority of the repercussions have so far been contained to the area, there are significant
consequences for the global economy. Sharply rising food and energy costs are
contributing to inflationary pressures and raising predictions of significantly quicker
monetary policy tightening globally. Furthermore, because Russia and Ukraine are
important exporters of commodity inputs that are upstream in many global value chains,
shortages of these commodities might have a worldwide impact on a variety of industries,
including food, construction, petrochemicals, and transportation.
Sanctions - A number of nations have implemented rising financial, economic, and other
sanctions in reaction to Russia's invasion of Ukraine and following activities.
Financial sanctions - The United States, the European Union (EU), and other nations
have imposed sanctions on the Russian Federation's Central Bank (CBR). These prohibit
Russian authorities from accessing foreign exchange reserves held by institutions in
sanctioning countries, or from liquidating reserves held by institutions in sanctioning
countries. This equals the freezing of about half of Russia's foreign reserves.
Trade sanctions - The United States, the EU, and other countries have enacted a growing
list of export bans, import restrictions, and other trade sanctions on Russia.Export
restrictions to Russia have concentrated on "dual-use" technology such as
semiconductors, aviation, aerospace, and oil and gas production, as well as luxury items.
Measures to curb Russian imports include measures to reduce energy purchases, as well
as a plenty of taxes, import bans, and restrictions on other Russian goods and services. In
addition, the US, EU, and UK had closed their airspace to Russian flights.
Inflation/Recession
The global economy, still suffering from the epidemic and Russia's invasion of Ukraine,
faces a more harsh and unpredictable future. Higher-than-expected inflation, particularly
in the US and major European nations, is causing global financial conditions to tighten.
The Chinese downturn has been worse than expected, owing to COVID-19 breakouts and
lockdowns, and there have been further negative spill overs from the Ukrainian conflict.
As a result, worldwide output fell in the second quarter of this year.
Growth declined from 6.1 percent last year to 3.2 percent this year and 2.9 percent next
year, representing 0.4 and 0.7 percentage point decreases from April. This reflects
slowing growth in the world's three
major economies -the United States,
China, and the eurozone with serious
implications for the global economy.
Reduced family buying power and
stricter monetary policy in the United
States will cut growth to 2.3 percent
this year and 1 percent next year.
Further restrictions and a worsening
real estate crisis in China have slowed
growth to 3.3 percent this year, the
worst in more than four decades,
excluding the pandemic. In the
eurozone, growth is expected to be 2.6
percent this year and 1.2 percent in
2023, reflecting the impact of the
Ukraine conflict and tighter monetary
policy.

Bracing for upcoming Chaos

Investors around the world are bracing for more market mayhem after an extraordinary
week that slashed asset prices around the globe, as governments and central banks
ramped up their fight against inflation.
The Federal Reserve, The Reserve Bank of India, The Bank Of Japan, as well as every
other Central Bank around the world is hiking their basis points rate. The Japanese
shored up the yen for the first time since 1998. These are the signs of extraordinary times
everywhere!
Inflation is at its highest around the globe, with the European countries suffering the
most.

Crude Oil
With the Russian invasion of Ukraine and also the western sanctions, the crude oil prices
have skyrocketed around the world. With a few allies of Russia reaping the benefits of
discounted prices of crude oil while the others are facing a major crisis.
Even After 8 months, Europe’s Crude Oil nightmare is far from over. Rather Europe’s
nightmare is set to worsen as refinery maintenance and unplanned outages result in
reduced supply.
As a result, more and more European Refineries are going offline. Also the West is still
trying to find a replacement for the Russian fuel imports. The West is heavily dependent
on the Russians for their Fuel needs and with the winters approaching, it is going to be an
emergency!

Conclusion
WHO had ever imagined that one superpower invading its neighbour would lead to so
much chaos around the world?
This shows us how interconnected the globe is right now and the importance of
maintaining peace.
With the Ukraine war now entering its 8th month, there is no peace in sight yet and which
means no possible solution to the rising inflation around the world, the crude oil crisis for
the west.

Cheshta Phull Neha Hingonikar

M.M.S 2021-23 M.M.S 2021-23

Things you (DON'T) want to know on Capital Raising

Most entrepreneurs recognise that if the foundations of a company idea—the management
team, market prospects, operational systems and controls—are good, there is likely to be
money available. The difficulty of raising finance to expand a business may be invigorating.
Certain unpleasant facts are built into the process and can significantly affect a corporation.
Entrepreneurs cannot avoid them, but by understanding what they are, they may at least plan
for them.
It is quite expensive to raise funds
Because of the allure of money, entrepreneurs grossly underestimate the time, effort, and
creative energy necessary to obtain the cash in the bank. During the fund-raising cycle,
managers of new firms sometimes devote up to half of their time and the majority of their
creative energy on seeking outside funding. We've seen startups abandon practically
everything else they were working on in order to identify prospective funding sources.
You don't have any privacy
It takes a solid sales job—and information—to persuade a financial supporter to part with
money. When seeking funding, you must be prepared to explain 5, 10, or even 50 individuals
if you rely on a single technician or engineer, what management's strengths and weaknesses
are, how much of the firm you control, how you're rewarded, and what your commercial and
economic plans are. You will also be required to provide personal and business financial
reports.
Professionals Might Blow It
Decisions on how much money to collect, from whom, in equity or debt, and under what
terms all restrict management and generate obligations that must be honored. These
obligations may strangle a developing company, yet executives are ready to outsource their
fund-raising plans to financial consultants. Unfortunately, not all professionals are skilled. Of
course, the entrepreneur must succeed or fail by the consequences, not the outside
professional.
Money isn't All
Even though money is the driving factor behind your fund-raising efforts, it is not the only
element potential monetary partners have to offer. You may shortchange yourself if you miss
factors such as if the partner has industry knowledge, relationships with potential suppliers or
clients, and a solid reputation. Another important factor is the investor's ability to respond
quickly.
The Hunt is never-ending
After months of hard work and difficult talks, cash-strapped and naive entrepreneurs are
ready to assume that the transaction is sealed with a handshake and a letter-of-intent or
executed-terms sheet. They loosen their streetwise caution and break off conversations with
different sources of funding. This may be a costly error.
Lawyers Can’t Protect You
Why should you have to get engaged in the finer details of legal and financial paperwork
when you pay specialists a lot of money to handle them? Because you are the one who must
put up with them. Deals can be constructed in a variety of ways. The legal
documentation specifies forth the parties' terms, covenants, conditions,
duties, and rights. Money providers do transactions every day, therefore
they are inherently more familiar with the procedure than the entrepreneur
going through it for the first or second time. Covenants can limit a
company's ability to respond to unanticipated events, and attorneys, no
matter how smart and diligent they are, cannot know for certain what
terms and conditions the business cannot sustain.
Ashlesha Chavan
M.M.S. 2021-23
Top events in July – September Quarter

July, 2022-
● India raises basic import tax on gold to 12.5% from 7.5%.
● GST collection surges by 56% YOY to Rs. 1,44,616 crore in June.
● India gets a $1.75 billion world bank loan for health, private investment.
● India's foreign exchange reserves rose $2.7 billion in June to $593 billion.
● The RBI defended the rupee with $41 billion over 5 months.
● RBI imposes Rs. 1.05 cr penalty on kotak mahindra bank.
● Finance ministry releases revenue deficit grant of Rs. 7183.4 crore.
● IDFC First Bank reports highest ever net profit at Rs. 474 cr in June qtr.
● India received a record high FDI Inflow of Rs. 6,31,050 crore in FY22.
● RBI approves cross border payment solutions for cashfree, open among others.
● SEBI fines Rs. 36 lakh on PGIM AMC, CEO Ajit Menon, 3 others.
● RBI to adopt four tiered regulatory framework for Urban Co-operative Banks

RBI to adopt four tiered regulatory framework for Urban Co-operative

Banks
In order to improve the financial soundness of Urban Co-operative Banks (UCBs), the RBI
has decided to create a straightforward four-tiered regulatory framework. A panel of experts
led by former RBI deputy governor N S Vishwanathan had presented a number of
suggestions for improving UCBs. In addition to other recommendations, the committee had
suggested a four-tiered regulatory structure depending on the amount of the banks' deposits
and the regions in which they operated. For important factors such as net worth, the Capital
to Risk-weighted Assets Ratio (CRAR), branch growth, and exposure limitations, a
differentiated regulatory strategy was primarily advised. A crucial component of the
proposals was belonging to an umbrella organization.

According to information provided by UCBs as of March 31, 2021, the majority of banks
have already complied with the requirement. To enable a seamless transition to the amended
requirements, the UCBs that do not satisfy the criterion will be given a glide path of five
years with interim milestones. The minimum CRAR requirement for Tier 1 banks is
maintained at the existing prescription of 9% under the current capital adequacy framework
based on Basel I, according to the RBI. While maintaining the present capital adequacy
framework, it has been determined to increase the minimum CRAR for Tier 2, Tier 3, and
Tier 4 UCBs to 12 percent in order to enhance their capital structure.
August, 2022-
● RBI completely focused on fighting inflation, yet 50 bps rate hike is surprising.
● Economists expect India’s Q1 GDP growth at 12.5-15%.
● Tata Motors EV subsidiary acquires Ford's Sanand plant for ₹726 crore.
● Trading segment leads Q1 beat for GAIL but Russian gas supply a worry.
● Current account deficit rises to 2.8% of GDP to $23.9 bn in Q1 of FY23.
● RBI taps top banks including HDFC, ICICI, SBI for blockchain-based trade
financing project.
● UCO Bank is in process of opening a special Vostro a/c with Russian Gazprom
bank to facilitate trade in rupee.
● HDFC Bank raises up to $300 million in NRE deposits.
● Liquid funds score over FDs, could offer 5-5.25% post repo hike, even more later.
● Falling rupee: What it means for your investment portfolio, study abroad and
foreign holiday plans.
● Dollar extends gains against yen as big Fed hike bets ramp up.
● Reliance Jio, Bharti Airtel and Vodafone Idea firm up plans to tap into the
emerging gaming and e-sports segment.
● Bank of India hikes home loan interest rates.
● Infra assets worth over Rs 1.62 lakh crore to be monetized this fiscal: Finance
ministry.
● Fincare Small Finance Bank refiles draft IPO papers with Sebi.

RBI taps top banks including HDFC, ICICI, SBI for blockchain-based
trade financing project.
Top Indian banks including HDFC, ICICI, and SBI have been selected by the Reserve
Bank of India (RBI) to lead a blockchain-based pilot project focused on trade finance. The
project would also involve the Bank of Baroda and Union Bank of India, according to
information provided by Axis Bank. The goal of the project is to stop loan frauds
committed by individuals like runaways like Nirav Modi and Mehul Chokshi, who take
advantage of the system to steal thousands of crores of rupees.
SettleMint, Corda Technologies, and IBM will provide technical assistance for the project's
development. SettleMint is situated in Belgium. The Innovation Hub of the Reserve Bank
of India (RBI) in Bangalore will be the project's driving force.
In order to increase transaction traceability, the pilot project, or "proof of concept," will use
blockchain technology, in which "blocks" of transaction information are stored in "chains"
with peer-to-peer access. A spokesman for Bank of Baroda stated, "We are taking part and
supporting the programme."Under the direction of the RBI, these particular banks are
working well with various technology vendors. This is a test of the efficiency and security
of blockchain in our banking system.
Project’s mission: The falsification of papers like Letters of Credit (LC) will be prevented
with the aid of blockchain technology. This can further aid in preventing LC overuse.
Through this project, blockchain technology will be integrated into the Core Banking
System (CBS). The project will be used to test out a Blockchain application, after which
the method will be further put into effect.
"The pilot has begun with banks to run blockchain-backed technology to issue digital
LCs," said a direct participant in the process. However, the scope and applications of this
initiative, which is focused on trade financing, are distinct from those associated with
creating a digital currency.

September, 2022-
● Govt hikes interest rate on small savings schemes for Q3 of FY23
● Govt to borrow Rs 5.92 lakh cr in H2 of FY23; plans to raise Rs 16,000 cr via
sovereign green bonds
● India's external debt at US$ 617.1 billion as of June 2022
● GST collection may top Rs 1.5 lakh crore from October: Revenue secretary Tarun
Bajaj
● India's external debt rises 8.2 pc to USD 620.7 bn till Mar 2022
● Imports of Russian crude fall nearly a quarter in two months
● Govt hikes interest rate on small savings schemes for Q3 of FY23
● Net direct tax mop up rises 23% to Rs 7.04 lakh crore so far this fiscal
● RBI has space to hike rates in only Sept and Dec meetings: Pranjul Bhandari
● Price tags of Daily Essentials Rise up to 22% since January
● Number of Active Credit cards drops after RBI rule comes into force
● NPAs from MUDRA loans in Maharashtra at 16.32% till June 2022

NPAs from MUDRA loans in Maharashtra at 16.32% till June 2022

According to official figures, as of June 2022, loans made under the Pradhan Mantri
MUDRA Yojana to assist small companies were close to 5,000 crore, or 16.32% of the
total bank assets in Maharashtra.
According to data released during the State Level Bankers Committee meeting held in
Aurangabad on Monday, the Parbhani district in the underdeveloped Marathwada area of
Maharashtra has the highest non-performing assets (NPAs) at 60.54 percent.
The Pradhan Mantri MUDRA Yojana, which offers loans to small and micro businesses
that are not corporations or farms, was introduced in April 2015. Numerous experts,
including former RBI Governor Raghuram Rajan, have cautioned about the prospect of
significant NPAs under the scheme ever since it was introduced.
Numerous experts, including former RBI Governor Raghuram Rajan, have cautioned about
the prospect of significant NPAs under the scheme ever since it was introduced.
According to the report, as of June 2022, more than 52 lakh borrowers in Maharashtra had
taken out loans under the MUDRA scheme totaling 30,019 crore. 6.19 lakh debtors
borrowed 4,898 crore of this total, which has been labeled as NPAs.
In the Parbhani district, there are 759 crores worth of loans still outstanding, of which 459
crores are non-performing assets. According to the report, Parbhani is followed by Hingoli,
which has NPAs of 33.31 percent and outstanding debts totaling 111 crore.
According to the report, Mumbai has the third-highest MUDRA NPA at 29.97% with a
$248 crore outstanding balance.
According to the report, a dozen state-run banks are responsible for the majority of the bad
loans, totaling $4,031 crore. Private sector banks had NPAs of 435 crore. According to
the data, eight
small financing banks have 104 crore in NPAs under the plan, while two regional rural
banks have 325 crore.
 Team FINKOSH

Dr. Pradip Kumar Mitra Dr. Disha Shah

Associate Dean Finance Head FINKOSH
Associate Professor

Neha Hingonikar Taniya Hardasmalani Parth Ambre

Ashlesha Chavan Aditya Bobde Nidisha Patil

Rohit Koyande Mahima Rao Cheshta Phull

Pratik Jaisinghani Disha Soneji Isha Paradkar

Disclaimer

This document has been prepared by the students of VESIM and is meant for sole use by the
recipient and not for wide circulation. The information contained herein is from sources
believed reliable. We do not represent that it is accurate or complete and it should not be
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decision. All articles written are the author’s own interpretation of facts and figures and
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of his or any other person on his behalf taking any investment decisions based on the
information, recommendations, research reports, analysis, quotes, etc. as provided in the
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