What Are Some Good Resources About Learning Financial Analysis?

Posted on June 24, 2021June 24, 2021 by Imarticus Learning

The spurt in the financial domain is instant, recognizing this trend people have started opting for a career in the finance industry. Building a career in such a competitive space where everyone wants a piece of the pie you have to have the added advantage to stand out from the competition. The Financial Analysis subject is best suited for a budding finance enthusiast who is aspiring for a successful career in this field.

Financial Analysis is a complex subject matter that involves different fragments. You have to gather knowledge about a wide range of subjects. Financial reporting analysis, corporate finance, economics, equity, alternative investments, etc. are some of the prominent topics you’ll have to spend your time upon.

The subject matter of financial analysis involves a comprehensive understanding of the company’s fundamentals to do data analysis and project the future trajectory taking into account the different variables that might affect a company’s overall performance in the short as well as the long run.

Where to Find Good Resources?

I am a firm believer of “learning can happen anywhere”, the catch here is that you got to have an open mind and a knack for learning the subject matter. Keeping attention to detail is a must in the case of learning finance.

Before deciding what resources you need to use for building your knowledge base in any domain, you have to figure out the ‘why’. Why do you want to learn financial analysis? The answers could vary from getting a job in a Financial firm to teaching others about the subject. When you have this answer then only you could establish the degree of knowledge that you need to obtain for your pursuit.

Learning is a continuous process and a subject such as finance is always evolving with the economy and the world so there’s no end to learning here. What you knew a year ago might be outdated today so it needs constant catching up.
Today you’ll find countless resources to learn about any topic in finance. The world of social media has made learning easier and much more convenient than traditional means.

The best resources can be found in the form of video channels on youtube, blogs, online courses, educational websites focusing on the finance niche, etc.

If you want to get a good job in the financial industry, getting validation for your knowledge is important, especially in the big corporate houses. You can opt for professional courses like CFA where you’ll get guidance on how to proceed in a structured manner for your financial analyst education. It is a course dedicated to financial Analysis, upon completion of the course and with relevant experience, you’ll get to use the charter title for a financial analyst.

If you break up a Financial Analyst course it contains two fragments one is involved with building your knowledge base in finance and the other is related to upgrading your analysis and presentation skills which include learning Ms excel and PowerPoint.

You can even focus on learning the two fragments in isolation. You can opt for courses that teach Excel and PowerPoint and other courses which help you with building your financial & accounting knowledge.

There are various books on finance by popular authors which teach financial education in a slightly unconventional manner. Some of the good reads are “Richest Man in Babylon”, “One up on wall street”. You can even find the ebook versions for the same on Amazon for a very minimal price if not free.

Conclusion
To learn financial analysis as a subject you need to figure out the details of the subject matter that includes topics from various subjects including economics accounting, financial maths, etc.

It is important to define your goal for learning financial analysis that will give you a direction and will help determine the degree of knowledge you need for your particular endeavor.

Become An Excel Pro With These Tips and Tricks!

Posted on June 10, 2021March 22, 2024 by Imarticus Learning

Excel Pro is one of the best tools to analyze big amounts of data in Excel. It has a ton of useful functions that can help anyone manipulate and organize their data efficiently. However easy Excel may be, it contains a lot of nifty functions, and it’s easy to get lost.

Excel is a particularly important course curriculum in chartered financial analyst courses or any of the financial modeling courses online.

This article answers your general queries like what is financial modelling, the advantages of financial modeling courses, and tricks to become an Excel Pro.

What is Financial Modelling?

Financial modeling is the procedure in which a summary is created of the company’s earnings and expenditures in the form of a spreadsheet or Excel. This spreadsheet can be used to evaluate the effect of any future decision or event on the company.

A financial model can be used by chartered financial analysts to perform SWOT analysis and analyze and anticipate the company’s stock performance by executive decisions and any future events. Financial Modelling can be better learned by taking financial modeling courses.

Advantages of becoming an Excel Pro

There are many benefits of learning Excel Pro; it will-

Sharpen your skillset
Improve your efficiency and productivity
Make you better at organizing data and doing a SWOT analysis
Increase your value at the company as a chartered financial analyst
Make your job easier

Tips and Tricks to Become an Excel Pro

Here are some tips and tricks that can be used in Excel to become a pro in no time-

Pivot Tables-A versatile feature, you can use them to total, average, sort, or count data stored in any large spreadsheet and cut and display them in a new table in the way you want.
Flash Fill-It analyzes the data being entered and automatically starts filling up information when it finds a pattern.
Filters-Filtering efficiently hides data and information that is of no use to you.
Conditional Formatting-It changes the color and contents of a cell on certain conditions being fulfilled.
COUNTIF-It will help you count cells with certain specific properties.
Charts-You can learn how to use more than 20 types of charts. Example- Pie chart, Line chart, Scatter chart, Bar chart, Column chart, etc.
SUMIF-Similar to COUNTIF, it will help you sum up the cells with specific properties.
IFERROR-It will help you enclose any formula in IFERROR and remove or avoid errors like #####, #REF!, #VALUE!, etc.
Slicers-It shows and hides specific data as required by offering big friendly buttons, tell the current filtering state, and helps keep an eye on the PivotTable reports.
Power Pivots-It connects your PivotTable with external databases and can be refreshed by a prompt. This helps in processing much larger datasets.
Sparkline-It is a tiny, small chart in a worksheet cell that gives a visual portrayal of the selected data.

Conclusion

If you want to learn more such tricks and want to become an Excel pro in no time, financial modeling courses will help you. You can opt for a chartered financial analyst course like Financial Analysis Prodegree and become a pro by learning from the best.

What Does A Financial Analyst Do In A Day?

Posted on May 26, 2021January 6, 2022 by Imarticus Learning

Financial analysis is a rewarding & challenging career for people working in the financial services industry. A Financial Analyst typically conducts quantitative analyses of information affecting the investment programs of public or private organizations.

However, depending upon the level of experience & job role of a financial analyst, their day-to-day activities may differ. Moreover, the industry in which they are working may also influence their job responsibilities & pay.

Some common things that a financial analyst do include:

Gather data & information
Organize information
Analyze financial results
Make forecasts & projections
Develop recommendations
Build Excel models & make presentations
Generate reports

Before jumping onto what a financial analyst does in a day, let’s take a quick look at what a junior analyst’s and senior analysts’ job entails.

Junior Analyst (entry-level)

A financial analyst who has little to no professional experience is typically responsible for gathering data, financial modeling & creating or maintaining spreadsheets. This enables entry-level analysts to develop a fundamental understanding of the financial marketplace & environment.

A junior analyst may consider earning certifications or licenses such as (CFA) Chartered Financial Analyst certification to move up the ladder to a better-paying, higher-level job position.

Senior Analyst

A senior analyst typically has more & better professional experience & academic credentials. One can become a senior analyst only after developing their expertise in the field & pursuing continuing education. One of the main tasks of a senior analyst is developing relationships with companies & industry to build a strong contacts’ network as well as representing their own firm in the industry.

A Day in the Life of Financial Analysts

A usual day in the life of a financial analyst looks like this:

Early morning

Early in the morning, they check the news, international trade & markets. If there are any relevant releases or developments concerning the market, then an analyst may need to “put out fires.” This may include updating data & alerting administrators about the change.

Morning meetings & check-ins

Contact or meet their colleagues in person, present investment ideas (if any) and then meet clients or potential clients. Moreover, depending upon the time of the year, a financial analyst may need to plan projects, schedules & calendars around the ebb & flow of the market.

Mid-morning to afternoon (project & schedule updates)

A junior analyst may meet their senior analyst in their firm to go over their collected data & financial models. The senior analysts may meet with their superiors to go over a project or business model/strategy. They may also spend time contacting investors and other contacts in their network to grow the business.

Lunch

A junior analyst may make the most of this time by meeting their mentor and planning the “next move” in their career. However, a senior analyst may have lunch with industry contacts and use this time to build their network.

Reviewing the day

A lot can happen during the afternoon, which is why most financial analysts spend this time reviewing reports & releases to better plan their upcoming days. For example, a senior analyst typically reviews earning reports, whereas a junior analyst may review financial models & research notes for their own earnings releases. Then, later in the evening, the junior analysts meet their senior to go over the numbers for the following day’s morning meetings.

A Rewarding Financial Analysts Career with Imarticus!

Knowing the need for new-age careers & the potential of online education, Imarticus Learning offers various online courses related to financial services for young professionals, undergraduates, graduates, and executives. If you want to further your career as a financial analyst and have a leg up over other applicants, getting a PG degree could be your best option.

An advanced degree with various specializations at Imarticus Learning will add credibility to your profile and position you as an efficient professional. Start your journey in the financial industry with Imarticus Learning and have a rewarding career!

How To Apply Financial Analytics In Real-World Situations?

Posted on May 17, 2021April 1, 2024 by Imarticus Learning

Big data is moving beyond the status of ‘tech’ and mingling into the mainstream. Almost every business is now leveraging data integration to consolidate systems, eliminate data, and streamline everyday business operations.

In today’s world, data rules the most new-age organizations. Vast amounts of data are circulating across the globe due to the massive access to the internet.

Businesses now know that this data translates to information to improve customer service, understand market trends, or figure out loopholes that may otherwise bar growth.

The Benefits of Business Analytics

Business analytics offers varied benefits to organizations and helping them to uncover insights into the past, present, and future operations. Rather than depending on intuition or guesswork, organizations can look upon quantifiable data for decision-making in marketing, finances, sales, or internal processes. Business analytics utilizes some set of tools that enable companies to use data in new ways.

The amount of data collected exceeds what humans can process. Still, business and financial analytics tools can process vast amounts of data and provide a more profound vision of what the data means and how to use it.

Real-Life Applications of Data Analytics

Different data analytics applications are currently used in several organizations across the globe. Some are discussed below:

Sorting customer segmentation

Based on data from previous purchases and activities, organizations and financial institutions can identify which customers need specific investment products, insurance coverage, types of mortgages, and other banking products. With data integration and analytics, organizations can identify new markets for existing products and cleverly segment customers to know exactly what products, offers, deals, and incentives are successful for a particular segment.

Detecting fraudulent activities

Big data allows banks and organizations to identify potentially fraudulent activity and get it stopped timely.

In addition, when data from all of the systems are integrated, banks can identify network traffic that can easily indicate a cybersecurity breach, e.g., someone trying to steal customers’ identities or credit credentials.

Develop new financial products

According to past sales, businesses can develop products with higher chances of being sold well in coming times. External data is prevalent to create products that are both useful to customers and lucrative for the organization.

Lowering investment risks

With data analytics, predicting market and investment format is a cakewalk. E.g., banks and financial institutions make money out of investments into ventures that make money.

Therefore, financial analytics is used to consolidate data on market trends, historical performance, property values, and internal data to determine the accuracy of investments and returns.

First Step Matters!

Since the role of data and financial analytics is clear for the Fintech industry, one needs to strive for a better career in analytics. A financial analyst course can be the first and most minor step to start the journey into the world of big data. Chartered financial analyst course, online finance courses, courses for financial analyst help learners understand data and analyze it to help in increasing the overall job efficiency.

At Imarticus, we empower students with Financial Analysis Prodegree (FAP), a financial analyst course that experts professionally tailor to use the proper applications of data analytics efficiently. The financial analytics course syllabus comprises theoretical and practical knowledge through workshops with industry experts, which provides an excellent opportunity to learn.

If you are keen to know more about online finance courses, chartered financial analyst courses, and courses for financial analysts, check out Imarticus’s catalog about all Finance programs!

Related Article:

https://imarticus.org/what-is-a-financial-analyst-course/

Who Is A Chartered Financial Analyst (CFA) And What Is Their Role?

Posted on May 10, 2021March 21, 2024 by Imarticus Learning

Chartered financial analyst (CFA) is a professional designation awarded by the CFA Institute to candidates possessing proven competence in wealth management and investment analysis. In other words, CFAs are the all-stars of the money management industry.

Who is a CFA?

A CFA charter holder is a person having the highest distinction in the investment management profession. So, the next time you come across a person with CFA as a part of their title, know that they are professionals with in-depth training in core skills of investment strategy and high-level money management.

Role of CFA in an Organization

The aspiring candidates of a CFA program can expect to be in job roles like Portfolio Manager, Risk Manager, Chief Executive, Research Analyst, Financial Advisor, Consultant, Accountant/Auditor, Investment Banking, Corporate Financial Analyst. The job responsibilities may vary according to job-roles but below discussed are some responsibilities that a Chartered Financial Analyst should be ready to take up:

To make sound decisions about companies, stocks, and industries to make money for the organization.
Track the performance of stocks and collect data in spreadsheets for interpretation by clients and stockbrokers.
Research and track the financial position of an organization or industry.
Evaluate current and historical data.
Recommend individual investment options and collective investment options, known as portfolios.
Study financial statements to determine value.
Study economic and business trends.
Prepare reports.
Meet company officials and investors for better recommendations.

Different levels of Chartered Financial Analyst Course

A CFA Program teaches and tests the fundamentals of investment tools, valuing assets, portfolio management, and wealth planning. For those wondering how to become a CFA, here’s the process:

Pass CFA Exams: CFA Program comprises three levels of the curriculum, each with an exam. Passing all three levels is a prerequisite to obtaining a CFA charter.

Achieve Qualified Work Experience: Complete work experience requirements that should directly involve investment decision-making or a profile that adds value to a similar process.

Submit Reference Letters: To support your membership application, you need to provide 2-3 professional references to testify your work experience and professional character.

Apply to Become a Charter-holder: Finally, you can apply for regular membership of the CFA Institute. Once approved and you join CFA Institute, you will earn the CFA charter.

Note: As an aspiring investment professional, you must know the basics of financial analysis, ratio analysis, SWOT analysis, etc., and relevant skills to thrive in a highly competitive industry. The CFA Program equips you with the expertise and real-world skills in investment analysis that help you advance your career.

Why Get a CFA?

CFA Is Most Prestigious Designation in Finance and Investment

CFA designation makes you a valuable asset to the financial industry.

CFA Curriculum Bridges Your Knowledge of Finance

If you aim to have a career in the finance sector, CFA and its curriculum are an excellent choice to prepare a solid knowledge base and top-notch technical skills.

CFA Provides Ample Networking Opportunities

Through a CFA program, you come across millions of CFAs, who provide an unparalleled network to leverage for your career.

Waive Licensing Requirements as CFA and Explore Markets Overseas

Lastly, CFA is a Ticket to Associate with Major Investment Firms

To sum up, a Chartered Financial Analyst course is the key to a golden future in Finance. To have a strong base for these courses for financial analysts, you can enroll in MBA programs and other financial modeling courses from Imarticus.

They offer an extensive learning package, donned with in-depth knowledge on the basics of ratio analysis, SWOT analysis, financial management, and much more. Contact us today for more on Financial modeling Courses!

How do Financial Analysts perform research?

Posted on May 17, 2019June 21, 2022 by Imarticus Learning

How do Financial Analysts perform research?

The research analysts cull data from financial statements of the company and PIB/ public information documents to value and estimate forward the companies’ growth and financial indices. They also manage investments, portfolios, funds and provide risk estimates.
Research methodology:
Investment Banking:
All data for financial analysis of public companies can be found in their filings and PIB documents.
A. Firstly the list of documents is created. They include:

General information like data available from Bloomberg, Capital IQ, FactSet, and others.
Annual report.
The Prospectus.
Form 10-Q.
Proxy company shareholders and shares statement.
Form 10-K.
Equity research sell-side reports.
Structure of ownership.
Company News over 6 months from PIB or website.

B. The next step is to create the profile including company overview, financial overview, market statistics, statements, projections, the performance of stock price, leadership and ownership details, products, and more to give a fair understanding of the company, its segment, performance over the year, important events, etc.
C. Specific information analysis is then conducted.
Ex: For acquisition analysis

Fit determination for industry, size, technology, etc.
Potential like personnel talent, growth prospects and so on.
Financial parameters like leverage, share dilution/accretion, market views, etc.
Legal constraints involved etc.

Once the idea has been vetted the availability of the target is considered.
Availability signs are

Owners looking to sell.
Under-performance.
Large capital needs.
Discontent among shareholders.
Lack of Management talent.

Lack of availability signs are

Insider control.
No liquidity needs.
Succession strategy being family or clear.
Majority share owner being a company benefited by holding.
Excellent financial parameters and performance.
The parent company is the best choice.

D. The last step is to create the financial models for the merger, LBO, DCF, prior records of transactions, comparable companies and such to suggest and explain a strategic purchase price.
Hedge Funds:
Here quantitative analyses are not very cumbersome and are mainly to determine the risk assessment and justify current market and stock prices.
Ex: While looking to value-invest in a company trading at six times the earnings P/E prices involves a lot of reading and inferences drawn from such reading of PIB. Based on such inferences one will justify not investing if reasons presented in the dissertation are

Options of restructuring are too late.
The rate of decline in costs is lower than the falling rate of revenues.
Insider shareholders selling.
Single-party control.
Decline in earnings
Negative perceptions in the market.
Reliance on revenue from governmental earnings.

The models required would be transactional and competitive and DCF if applicable.
Private-equity:
This is very similar to investment banking research process with the exception of financial indices of PE like yield from FCF and leverage.
On a concluding note, one can do financial analyst courses from a reputed institution like Imarticus which provides for a financial analyst certification readily acceptable in the market for jobs and as a career choice par excellence.

What do you need to learn to become a Financial Analyst?

Posted on May 4, 2019March 22, 2024 by Imarticus Learning

At the onset of your career as a junior analyst, you will need to enhance your proficiency in database usage, spreadsheets, presentations in PowerPoint, other relevant software applications and Microsoft Excel. Senior analysts will, however, have to work on the crucial aspects of presentation skills, long working hours, mentoring juniors effectively, and building interpersonal relationships.

A financial analyst career requires long working hours, preparation and a flair for financial analysis. Other than job-satisfaction, the career provides excellent payouts and a horde of opportunities.

Essential Skills:
Foundational graduation in Finance, economics, statistics, etc would be very desirable. Most courses provide boot camps for those who do not have a finance background. Based on your plans, specialization choices, eligibility, and resources various courses provide certification.

The most coveted of these is the CFA certification. You could also take up the Series 63 and 7 exams for accounting practices and investment terms in the US known as SIE certification (Securities Industry Essentials).

One will require non-technical and non-transferable skills like:

Good quantitative skills.
Great problem-solving skills.
Grasp on use of inferential logic and an innovative approach.
Good presentation skills.
Above average reporting and data skills.
Great communicative ability and Interpersonal skills.
Team skills that are both collaborative and communicative.
Ability to sustain when working long hours under demands, pressure, and ambiguity.
Integrity and discipline.
A quick absorptive learner for financial interpretations without SOPs.

Technical skills:

Microsoft Excel and VB Macros
Use of data analysis techniques and manipulations in software
Fundamental accounting concepts
Financial statements analysis with forecasting, inferences, and valuation
Use and creating financial models and tools like bar graphs, charts, etc
Presentation capacity in Excel with data visualization charts
Preparing accounting statements like cash flow, balance sheets, income, and working capital statements.
Ratio analysis interpretation and preparation.
Frameworks for comparative multiple-companies performance analysis.
Forward financial models, ratios, and integrated statements
SWOT analysis
Techniques of Discounted-Cash-Flow valuation
Best practices in valuation applied to real-time multiple databases of company data
SQL and PowerPoint

Types of Analysts:

The financial analysis field offers many career routes and titles. The main areas are in:

Investment banks
Investment firms on buy-side.
Real estate sector
Firms on the Sell-side
Insurance companies
Companies that are data-driven
Brokerage firms

Average Salary:
Financial Analysts draw an average pay-band of 65k to 110k$ in the US according to Indeed.
In conclusion, if you have a flair for financial analysis then the financial analyst courses can get you the coveted financial analyst certification.

The Imarticus course teaches you the best tools and such courses are particularly advantageous to your career because of the global robust curriculum, hands-on practice on popular tools, an industry-relevant project involving real-time live data, and excellent mentorship provided which makes you industry-ready from day one.

Also Read: How Do You Prepare For Financial Intern Interview

Reliance Capital Downgraded by ICRA

Posted on April 23, 2019March 19, 2021 by Imarticus Learning

R-Capital was recently IC-Ratings Association downgraded. What does that mean and how can we use this information?
Why the rating is important:
The IC-Ratings Association forum comprises of representatives from commercial banks, leading institutions in investments and finance, and companies in financial services to benchmark and rates the invest ability factor. It is an independent company listed on stock exchanges both in Mumbai and nationally, as it is a public limited company.

Global alliances:

The ratings are used by Moody’s who offer services to investors, technical and financial services globally to companies, training, research, concept management, spotting capital market trends, and providing investor service, product ratings. Moody’s is also the largest stakeholder on the rating agency.
The ICRA rating:
The rating is crucial to the common investor because

It gives comprehensive company information.
Provides users of the rating a wider field to choose investments and products from the capital and money markets.
Enable company fundraising from a wider market.
Assist the monitoring agencies to ensure measurability of performance and transparency in the rating process.
Aids intermediaries and institutions in the fundraising process.

The recent downward rating of Rel-Capital by ICRA to A4 from A2 has several negative connotations. The Brickwork and CARE ratings also put them on a watch-list for credit implications that can only be negative for Reliance. The key subsidiaries of Reliance HFL and Reliance CFL were also mentioned as having a negative impact on the financial position while the profile of liquidity stands weakened and Reliance itself faces rating revisions.
Here is the lowdown on the rating factors.

- The Anil Ambani led group has been impacted by the slow monetization of its services and businesses in the non-financial market thus impacting liquidity which is stuck in investments that are non-core in nature.
- The critical subsidiaries of Reliance in the Home and Commercial Finance sectors are also stressed. This means that the inflow of money is lower than the debts incurred and due for repayment considering their position over the coming six months.
- The funds need to be brought in by rapid disinvestments in the assets held by the non-core and core segments of their business and imply that the fund inflow expectations were unrealistic and much higher than the true position. The most critical factor will be whether they can raise these funds in time and pay off the accumulated debts in time. These issues point to huge borrowings and lack of flexibility in capital management.
- Though management confidence is keeping the situation afloat there is no transparency in the funds-recovery positions of capital advanced to and obtained from Rel-Capital, Rel-Commercial Finance, and Rel-Home Finance. Thus the criticality of the fund’s position and repayment capacity remains unclear.

In response to being downgraded as a good investment choice, the company claimed that the rating was inappropriate and unjustifiable mainly because none of the parameters of operation used for rating had actually changed. They claimed the rating had accounted for Rs 950 crore being the outstanding debt to be repaid by the 30^th of September this year and that this was a mere commercial on-paper transaction which did not affect its liquidity position.
Further, they claimed it would be converting into money its Rel-LAM with Nippon at the present valuation of the market to raise Rs 5,000 Cr and includes a 42.88% holding which is earning a good premium on disinvestment. It has also approached SEBI with their prospectus and plans to monetize the holdings in Rel-General Insurance wherein they have a stake-hold of 49%. Speaking more about their monetization drive they also indicated that they would cut by half their debt-servicing demands and raise a total capital of 10,000 Cr Rs in total to regain their ratings.
Conclusion:
The Reliance group of companies appears to be in a grave financial crisis with mounting debts and a debt restructuring and monetization program that will take far too long. The debtors may push hard and lead the company to file for bankruptcy.
In parting, to understand financial ratings and effectively use them in today’s ratings dependent financial markets, you will need some formal training at a well-reputed institute like Imarticus. Enroll immediately in their financial analyst courses which will make you job-prepared, aid your resume with certification and of course, give you excellent hands-on practice, a comprehensive practical oriented- curriculum which allows you to hit your career grounds running!

Equity Markets and Interest Rates- what’s the link? This is with reference to the recent RBI rate cut.

Posted on April 5, 2019March 19, 2021 by Imarticus Learning

The 25 bp fall in the RBI’s repo policy rates for the 3rd time is an indicator for the equity markets, interest rates, and investor reactions. With the newly elected BJP government winning a clear mandate, there appear to be large concerns over the domestic rate of growth, the drop in prices of oil, tariffs from the US and a vacillating global market. Reading the trends one would say the premier bank is moderating changes and even suggesting a further drop in rates from the current 5.75% which in itself is a 9-yr low. This has been spurred by the weal economic growth, wide output chasms coupled with the poor investment and consumption growth.
Effect on Equity markets:
The interest rates cause a commotion since it is the cost of borrowing and using another’s funds. The interbank rate and RBI’s lending rate to banks normally takes a year to feel any impact in the economic scenario. However, equity markets see volatility and immediately react to such changes in anticipation of growth or decrease in it as the case may be.
There is no direct impact on the equity markets by the interest rates. Yet, equity markets move in the reverse direction generally and do have indirect cascading effects on the prices and growth in general. A cut in rates implies the stock market could move upwards and a rise in the rates normally sees a slump in it. This is a thumb rule and a prediction without guarantees especially in the present globally volatile equity market scenario.
Here is how the ripple-effects are predicted to be.
GDP growth may slump in 2020:
The US-China trade war and tariffs imposed on India too saw the GDP projected values slumping to 7 from the current 7.2%. The weakened rural area consumption, poor domestic investment growth, and exports slowing down do not augur well. However, the premier bank also pointed out that we should factor in data from March where the stable political scenario, better financials in Q2 from more business growth, an upswing in stock markets, and greater utilization of capacities can reassure the economic growth.
The trends in Inflation:
The variations in the monsoon patterns, vegetable prices spikes, escalating global tensions, changes in fuel prices globally, volatility of equity markets, impending trade crisis’s, and the emerging political and government policy will hugely affect the inflation rates. Currently, the RBI stepped in with a marginal upward revision to 3 to 3.1 from 2.9 to 3 % for the April ending September period.
The policy changes: RBIs change in policy has become accommodative in a bid for timely action. This also implies further changes in monetary policies and cuts in interest rates to spur the flagging markets.
The liquidity position:
In spite of an April-May deficit, the cut-backs in governmental splurges resulted in a surplus of 66,000 Cr Rs for June. Funds injection to the tune of 70 thousand Cr for April and 33.4 thousand Cr for May from the premier bank along with its OMO auction purchases for 3 years of 25 thousand Cr and almost 35 thousand Cr value saw the liquidity positions ease. Another such auction of 15 thousand Cr is also anticipated in June.
The updates:

The Jalan Committee report may take some time as it is still working on its recommendations to improve the premier bank’s cash reserves.
The RBI though not mandatorily is monitoring the NBFC sector for financial stability and will interfere if required.

Concluding notes:
With moderation rather than being neutral being the key-word, further cuts are predicted. The 6 to 5.75% RBI-lending rate, 5.75 to 5.5 repo rate, and changes in monetary policy are predicted to ease the common-mans burdens by

Lower HL EMIs.
Automobile and real-estate sectors will get a boost.
NBFC lending may rise as payments banks are being reviewed.
Bank leverage-ratios set to 4.5 to 4 for DSIBs and for the rest of the banks 3.5%.
The inter-ATM bank fee may change.

If you are looking to make a career as a financial or banking expert get trained on Financial Analyst courses Prodegree from Imarticus Learning. They also offer a wide variety of skill-oriented courses on data sciences, the latest on Fintech and Scrum Agile courses par excellence. Their certifications get you job-ready from day one. Hurry and enroll.

Tag: Financial Analyst Courses