Shriram Finance Oct-24

The profit a company makes after paying all its expenses and taxes.

A measure of how much a company earns per share of its stock. It indicates profitability.

The percentage of a company's loans that are considered non-performing. Non-performing loans are those where the borrower has stopped making payments.

The percentage of a company's loans that are considered non-performing after provisions have been made.

The expense incurred by a company in managing its loans. It includes provisions for bad loans and other expenses.

The amount of money a company needs to have available to cover its short-term financial obligations.

The amount of money a company owes to its creditors (individuals, institutions) for loans, bonds, etc., that must be repaid within three months.

The difference between the amount of money a company has available to cover its short-term financial obligations (liquid assets) and the amount of money it owes to creditors (short-term liabilities), within a specific time period (e.g., three months, six months).

The additional cost incurred when a company takes on more debt to invest or operate.

The cost of borrowing money (like interest rates) for a company.

A type of loan that allows customers to pay for goods or services in installments, usually with interest.

A loan for a small amount of money, often taken out to cover short-term expenses.

A loan for a larger amount of money, typically taken out for significant purchases, such as a car or a house.

Customers who have excellent credit scores and a good history of repayments.

The process of lending money to customers.

The amount of money that is lent to customers.

Borrowers who have already taken out loans from a lender.

The ability of borrowers to repay their loans on time.

The Loan to Value (LTV) ratio represents the percentage of the loan amount compared to the value of the underlying asset, in this case, gold.

The exit LTV is the maximum LTV allowed at the time a loan is due for repayment. It ensures the loan amount doesn't exceed a percentage of the gold's value.

The prescribed exit LTV norm is 75%, meaning the combined value of the principal and accumulated interest cannot exceed 75% of the gold's worth.

If the LTV crosses the 75% threshold at the end of the loan term, the loan is classified as a Non-Performing Asset (NPA).

A Non-Performing Asset (NPA) is a loan that is not being repaid as agreed, posing a risk to the lender.

Instead of directly classifying loans exceeding the LTV limit as NPAs, the regulator advised reducing the loan amount to bring it within the 75% limit before classifying it as an NPA.

The regulator's advice was to reduce the loan amount instead of classifying it as an NPA because many cases involved exceeding the 75% LTV threshold.

By reducing the loan amount, the lender can bring the LTV back below 75% and avoid classifying the loan as an NPA.

The ability of a company to adapt and respond effectively to changes in the market and customer needs.

A company's unique characteristics, values, and behaviors that set it apart.

The process of understanding and meeting the needs and preferences of customers.

The ability to respond quickly and effectively to customer needs and market changes.

The second financial quarter of the year is often viewed as a challenging period for the Indian economy, particularly due to the unpredictable nature of rainfall. During this time, erratic rainfall patterns can significantly impact agricultural output, leading to fluctuations in credit demand.

Abnormally heavy rainfall or insufficient rainfall during the second quarter can have a significant impact on the Indian economy due to its reliance on agriculture.

When rainfall patterns are favorable, resulting in a good agricultural harvest, there is a positive impact on the overall economy, influencing credit demand and economic growth.

Agriculture plays a crucial role in the Indian economy, influencing factors like credit demand and overall economic activity.

Strong agricultural output during the second quarter indicates potentially robust economic activity in the latter half of the year (October- March).

The second quarter's performance in agriculture can often be a predictor of the overall economic performance for the latter half of the financial year.

The second quarter is a critical period for the Indian economy, as agricultural performance during this time significantly impacts the overall financial picture.

The amount of credit demanded by businesses and individuals is influenced by the state of the economy, especially by the performance of key sectors like agriculture.