Niveshak November-2016

Sunday, December 4, 2016 , Posted by Team Niveshak at Sunday, December 04, 2016


Dear Niveshak,

The month of November saw one of the major events of 2016, that is, the Prime Minister Narendra Modi’s ‘surgical strike’ on counterfeit notes and black money, which suddenly rendered 86% of the value of notes in circulation invalid. For the second time in last four decades, India was subjected to shock treatment of overnight demonetization of high value currency notes. Bank notes of Rs. 500 and Rs. 1000 denominations stopped being legal tender as a part of government’s bold move to combat black money. The move was followed by long, frustrating and anxious wait by people outside ATMs and banks across the country, to exchange the illicit currency notes. The cash crunch faced by the people in the last month is certain to have an adverse impact on their consumption spending, especially in rural areas, with the ensuing effect on the economy in the third quarter.

Another event which was in the headlines was the victory of Republican candidate Donald Trump in the US presidential elections, defeating the formidable challenger, Hillary Clinton. The month also saw some other interesting news like the disbursement of Rs.21000 crores by NABARD to farmers to assist them in the Rabi harvest, the increase in NPAs of the state run public sector banks, and the proposed income disclosure scheme under the Income Tax Act.

On the magazine front, we have covered Airtel for our Equity Research report. Our cover story talks about the historic move by the Indian government to remove the higher denomination notes from circulation and explains the implications of the move on the Indian economy. The article of the month talks about Regtech and how it is going to be the next big thing in the financial industry. The author has thrown light on the concept, while also trying to understand the impact of the technology on the banking industry in general, and Indian banking in particular.

For FinGyaan, the author talks about Artificial Intelligence and how it is transforming the Financial Services Industry in today’s world. In the FinSight section, the author has studied the upheavals going on in Indian Banking Sector and the underlying factors for them. In the newly introduced FinaFame section, we have looked at Laurence D. Fink, the founder, chairman and chief executive officer of the BlackRock. The Classroom section explains the concept of Leverage Buyout, which essentially means the acquisition of another company using borrowed capital.

For FinView, we have brought the interview of Mr. Ashish Nanda, Business Head of Banking Channel at the Kotak Mahindra Group. Mr. Nanda gives his views on demonetization and how it is going to impact the Indian banking sector and what strategy should banks adopt in the current scenario. He also touched upon various other topics like rising NPAs, strengthening of dollar against rupee, as well as role of technology in today’s world.

Finally, we would like to thank our readers for their immense support and encouragement. You remain our prime motivating factor that keeps our spirits high and gives us the vigor and vitality to keep working hard. We hope you had a great month and wish you the best for the new one.

Thank you. Stay invested!

Team Niveshak


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