Shuchi Nahar's Weekend Blog!

New realities of Banking industry  in India Shuchi.P.Nahar India’s  banking  sector  is a study in contrasts: it supports the world’s fastest-growing large economy but is grappling with challenges that test its strength and resilience. Primary among them is the burden of distressed loans. According to Reserve Bank of India (RBI) data, the value of banks’ gross nonperforming assets (GNPA) and restructured assets reached $250 billion in April 2019 and has been growing by almost 25 percent year on year since 2013. State-owned banks account for more than three-fourths of the stressed-asset load, which is now far higher than their net worth. Provision levels are inadequate because these banks hold only 28 percent of GNPAs and restructured assets as provisions. There is a gap of close to $110 billion between the system’s stressed assets and the provisions made. These problems  are  considerably  less  severe  for  private  banks. Banking industry are very crucial to the eco

Weekend Blog 2                                                  Shuchi.P.Nahar "Role of behavioral finance for long-term investing". The basic and most frequently asked question in today's scenario.  Is long-term investing favorable in such volatile market? I s this the right time to take entry or wait ? Will markets fall from here or rise?  Is short-term investing a favorable strategy to make more returns in volatile market?  To all such basic questions to be answered, let's revise what markets probably have made us forgotten in past few months.  "Concept of long-term investing " If short-term investing is about capital preservation, long-term investing is about wealth creation.  Long - term investing is about building the kind of investment portfolio that will provide you with income for later in life, and for the rest of your life. That could be retirement, or sometimes sooner. Long-term investing doesn’t happen by accident. You n

My Key Learnings :-  Twitter: @shuchi_nahar Book Name: A few Lessons to investors and managers -from from Warren E. Buffett Book by : Peter Bevelin CHAPTER 1 & 2 The price you pay, determines the return you will get.  According to Ben Graham, PRICE IS WHAT YOU PAY AND VALUE IS WHAT YOU GET. The return then received, can be compared with expected return from other opportunity. The value of any stock, bond or business today is determined by the cash inflow and outflow that are discounted at an appropriate rate. Individual needs to use the correct number, for example, proper discounting and that is the expected life of remaining assets.  Buffet has precisely mentioned the bitter truth about money that, ‘It doesn’t matter from where the cash comes from, because in the end it will all be spent.’ Financial asset that has the highest value in comparison to its price is the one that gives the highest return. The investment that is derived from ‘Discounting Cash Flow’ is cons