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Pandemic Revealed the True Color of Indian Financial Giant
As the coronavirus pandemic continues to hinder India‘s growth, the domestic financial market also suffers a heavy blow from the lockdown measures. For India’s financial giant Indiabulls, theres no sign of alleviation for their struggle in 2020.To get more news about WikiFX, you can visit wikifx news official website.
Not long ago, news went around India‘s financial circle that Indiabulls’ subsidiary Indiabulls Ventures was investigated by SEBI, while its senior officials were dismissed. While the event is still brewing, another of Indiabulls‘ subsidiary, Indiabulls Housing Finance Limited, infuriated the public by deducting loans from clients’ accounts despite Modi administrations moratorium policy on loans.Indiabulls Housing Finance Limited which contributes approximately 80% of Indiabulls Group‘s revenue is not only India's second largest housing finance company, but also one of India's shadow banking giants. It is estimated that one-fifth of India’s new credit, from buying a car or paying for education to developing luxurious properties, is from shadow banking, and the sectors growth remain key to India's rapid economic growth in the past. However, shadow banking is an unorthodox lending channel after all, and the frequent collapse of lending institutions also triggered concerns among Indian investors and analysts.
Indiabulls Housing Finance borrowers also face huge risks. Since late September, 2019, the company's share price has fallen by nearly 50% due to financing difficulties. In addition, global credit rating agency Moody's has downgraded Indiabulls and expressed concern about the company's governance standards and financing sustainability.
Do layoffs and unauthorized charges of Indiabulls Group imply the company is facing serious financial crisis？ Is the subsidiary Indiabulls Housing Finance Limited in risk of collapsing？ How should investors keep their money safe？ Stay tuned for follow-up reports brought to you by WikiFX. For more financial information and brokers dynamics, please check WikiFX App. |
