Impact on NBFCs post budget - Mr. Santanu Agarwal, Chief Innovation Officer (CIO), Paisalo Digital Limited
"The Union Budget 2019 boosted consumption, expenditure and introduced tax breaks with the aim of encouraging investment and get the economy on track to achieve USD5 trillion mark. The government believes that this will make the ball roll again, and we hope that it does. The Indian economy liquidity systems are paralysed and are in need for a kickstart. With this view the government will be recapitalising public sector banks with INR700bn capital infusion, to offset the liquidity crunch they have been facing. We think some part of the funds will be retained by banks for their own fund management and some part of it will be made available for lending purposes to promote growth and development of the financial private sector companies including systemically important non deposit taking NBFCs. The budget further provided government guarantee on direct assignment of loan pools done by NBFCs like PAISALO and this move is expected to give greater comfort to banks and hopefully will act as a measure for capex cycle to kick start, and improve the upcoming disbursement quarter number of NBFC ND SI as well propel growth in the recent slow down in business of NBFCs. Foreign Investors will now be able to invest in NBFCs Debt Paper which opens up a efficient avenue for fund raising for NBFCs.
If the government is able to maintain liquidity and the macroeconomic issues, through its mandate of less government and more governance; we believe that the speculative target of gross domestic product will rebound from the five year low and be on track to achieve 7% this fiscal year."
Shares of Paisalo Digital Ltd was last trading in BSE at Rs.375 as compared to the previous close of Rs. 376.65. The total number of shares traded during the day was 2 in over 2 trades.
The stock hit an intraday high of Rs. 375 and intraday low of 375. The net turnover during the day was Rs. 750.