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New corporate strategy credit neutral for Airtel: Ind-Ra

“While BAL has a strong track record of building the businesses and monetising the same, Ind-Ra will access the evolution of digital business and any monetisation of the same on case-by-case basis,” the ratings firm said in a note. ....

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zero coupon bonds: Govt's capital infusion via zero coupon bonds positive for PSU banks


MUMBAI: North Block s decision to infuse capital into public sector banks (PSBs) through non-interest bearing zero coupon bonds will help the banks meet regulatory requirements - without strengthening their tangible equity.
Issued at a deep discount to the face value, these bonds are non-interest bearing. This means it is an investment that does not earn any returns, but depreciates in value over the years.
Prakash Agarwal, head financial institutions at IndiaRatings (Ind-Ra), said the value of these instruments is half of the government bond paper of a similar maturity.
Typically, a bond earns interest but since these are not earning any interest, the value of Rs 100 invested today is actually lower than that invested in a government security of a similar maturity, Agarwal said. ....

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real estate: Realty sector outlook set to improve in FY22, grade I developers to gain: India Ratings


Synopsis
Non-Grade I players are also likely to see their sales rising by 26% in FY22 after a 39% decline in FY21. Demand-side risks combined with the continuing uncertainty over credit availability for the sector in the light of increasing risk aversion by financial institutions.
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India Ratings and Research (Ind-Ra) has revised the real estate sector outlook to improving for the financial year 2021-22, and has divided the rating Outlook as Positive for the grade I players, while maintaining a Negative Outlook for non-grade I players during March 2021.
The ratings agency expects FY22 to see an increase in sales by 30% from a year ago. The recovery will likely be dominated by grade I players, whose sales are likely to grow by 49% on year in FY22 after a 14% on-year increase in FY21. ....

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