Non Performing Assets and Business Case Evolution of M&A Prospects in India (Vol 2)

USD 140 Billion of Serious Investment Opportunity Exists in India under Non Performing Assets Category

BLESSING IN DISGUISE ! AS THE NON PERFORMING ASSETS (NPA’s) IN INDIA LIKELY TO DE-STRESS WITH GROWING OCURRANCE OF M&A ACTIVITIES AND ROPING FRESH INVESTMENTS

The incidents of NPA’s has witnessed an aggressive growth in India since FY’2013, as the same has inflated to USD 129.3 Billion in Dec’2017 against a value of USD 38.8 Billion observed in Dec’2013. Sounds contrary to the country’s economic situation which boasts India amongst the fastest growth economies of the world. Ironically, the growth rate is not only fast paced for high economic activities but also for the watch list of projects which has seen consistent rise from FY’2013.

Key Queries Resolved

• What is the value and volume of non standard, doubtful and loss making assets in Indian infrastructure sector?
• What is the value and volume of non standard, doubtful and loss making assets in Indian Basic Metal sector?
• What is the value and volume of non standard, doubtful and loss making assets in Indian processing sector?
• What is the value and volume of non standard, doubtful and loss making assets in Indian automobile sector?
• What is the value and volume of non standard, doubtful and loss making assets in Indian gems & jewellery sector?
• What is the value and volume of non standard, doubtful and loss making assets in Indian textile sector?
• What is the value and volume of non standard, doubtful and loss making assets in Indian rubber sector?
• What is the region wise & bank wise split of wilful defaulters for NPA’s?
• What are the challenges in assessing the quality of assets in India?
• What have been the trends in the percentage share of NPA’s of total loans awarded in India?
• What is the possible business case for M&A with rising case of NPA’s in India?
• What shall be the size & scale of market opportunity for banks , financial institutions, M Cap companies, international investment agencies etc.?
• What would be the likely opportunity in value terms for asset acquisition and asset recovery?

BUSINESS CASE 

• As on Dec 2017 , the gross NPA with public banks stands to be INR 7,77,280 crores and that with private sector banks hovers around INR 1,07,796 crores
• SBI will be the biggest beneficiary of Tata’s acquisition of Bhushan steel as its bottom line will go up by INR 1300 crores
• JSW steel looks for stressed assets in India and overseas for its 50 MTPA target
• Union government is working on SAMADHAN (Scheme of Asset Management and Debt Change Structure) scheme similar to what the SBI-led group of bankers came out with to takeover unsustainable debt of stressed power plants to avoid their liquidation
• There are plans to rope in National Investment & Infrastructure Fund (NIIF) as an investor to set up an asset reconstruction company that will take over the stressed loans of state run banks
• The Indian banks have a burden of nearly USD 141 Billion of soured loans as on June 2018. The country has set up a panel of experts of explore mechanisms for resolving the burgeoning bad debts plaguing its financial sector
• Edelweiss is set to raise USD 1.6 Billion to invest in stressed assets in India, with USD 600 Million of it coming from CDPQ

• Chapter 1. Executive Summary
• Chapter 2. NPA : Learning the Harsh Facts for India
• Chapter 3. NPA’s in India and Global Context
• Chapter 4. NPA Recognition – Automobile Sector
• Chapter 5. Understanding the Asset Quality and Tracking Challenges in Automobile Sector
• Chapter 6. NPA Recognition – Iron & Steel and Other Basic Metals Sector
• Chapter 7. Understanding the Asset Quality and Tracking Challenges in Iron & Steel and Other Basic Metals Sector
• Chapter 8. NPA Recognition – Textile Sector
• Chapter 9. Understanding the Asset Quality and Tracking Challenges in Textile Sector
• Chapter 10. NPA Recognition – Rubber Sector
• Chapter 11. Understanding the Asset Quality and Tracking Challenges in Rubber Sector
• Chapter 12. NPA Recognition – Paper Products Sector
• Chapter 13. Understanding the Asset Quality and Tracking Challenges in Paper Products Sector
• Chapter 14. NPA Recognition – Gems & Jewellery Sector
• Chapter 15. Understanding the Asset Quality and Tracking Challenges in Gems & Jewellary Sector
• Chapter 16. NPA Recognition – Other Infra Sector
• Chapter 17. Understanding the Asset Quality and Tracking Challenges in Other Infra Sector

• Business case evaluation for M&A prospects in India
• Identifying the internal & external factors responsible for rising non performing assets in India
• Status check and eninrac’s exclusive due diligence for existing key non performing assets that are favorable for M&A
• Industry wise detailed profiling of non performing assets & status update for sale – Project Database
• Exclusive list of willful defaulters with key details (Name of Borrowing company, Management Team Details , Lending Agency, Outstanding amount)
• Evaluating the business case in NPA sale & exit options in automobile industry
• Recent developments and outlook till 2022 to address NPA’s – eninrac’s exclusive analysis basis scenarios
• The impact analysis of RBI’s new guidelines on NPA’s – eninrac’s exclusive short-medium-long term impact analysis and key recommendations

• Complete trend of rising NPA’s in India – bank wise & industry practice wise examination of NPA incidence
• Determining parametric indexation of rising NPA cases in India and impact of factors responsible
• Examining the global scenarios of stressed assets and identification analysis of best practices for India
• Evaluating the industry wise stressed assets in India
• Understanding the asset quality and tracking challenges for NPA’s in India
• State wise stacking of stressed assets in India
• Examining possible impediments for M&A drive/investments and shortlisting good prospects for acquisitions –eninrac’s due diligence study
• NPA recognition and outlook for automobile sector in India
• NPA recognition and outlook for iron & steel sector in India
• NPA recognition and outlook for textile sector in India
• NPA recognition and outlook for rubber sector in India
• NPA recognition and outlook for processing (other than food) sector in India
• NPA recognition and outlook for paper product sector in India
• NPA recognition and outlook for gems & jewellery sector in India
• NPA recognition and outlook for other infrastructure sector in India