Business Today

23 January 2022

A leading business magazine read by the business leaders for staying ahead and managing challenges that comes right away in the ever changing world of business.

Living Media India Limited
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26 Edities

in deze editie

2 min
the new genie in town

The Indian consumer never had it better. Whether it is the latest appliance or low-value purchases, the craze around point-of-sale credit has seen consumers making a beeline for such credit options that enable them to make purchases without having to make immediate payments. Welcome to the world of Buy Now, Pay Later (BNPL) schemes, which are burgeoning by the day and have captured the imagination of the aspirational Indian middle class. These BNPL schemes—offered by several platforms such as Paytm, LazyPay, ZestMoney and even banks—have fuelled consumption by making it extremely easy for consumers to make purchases. The borrower gets the option of an instant, short-term loan with a deferred repayment tenure, including the facility of equated monthly instalments after the end of an interest-free period. The BNPL offerings are…

1 min
the class of 2021

Stellar Returns from Equities… Benchmark indices S&P BSE Sensex and NSE Nifty gained 22 per cent and 24 per cent, respectively, on a year-to-date (YTD) basis TOP 5 SECTORAL GAINERS ON THE BSE IN 2021 TOP 5 GAINERS IN THE NIFTY IN 2021 YTD change as on December 31, 2021 Source: ACE Equity …But Digital Currencies were in a Different League Solana, the fifth-largest digital currency, delivered mind-boggling returns YTD change as on December 31, 2021 Source: Coingecko, Real Estate Struggled This asset class continued to deliver negligible returns to investors YTD return on investment (RoI) as on December 22, 2021 Source: ANAROCK Property Consultants Precious Metals Lost Their Sheen this Year… Gold delivered lacklustre returns GOLD PRICE (₹/10 GM) YTD change as of Dec 31, 2021 Source: MCX …While Fixed Deposit Rates Showed Slight Improvement Four of the top five banks by market cap raised FD rates marginally BANK…

13 min
what’s hot, what will be

MARGIN PAINS Elevated global fuel and commodity prices have shrunk profit margins of the manufacturing industry, with most unable to pass on the entire impact of expensive raw materials to consumers amid muted demand. The core consumer price index inflation, which is non-food and nonfuel, continued to remain elevated above 6 per cent in November. Wholesale price index-based core inflation climbed to a fresh high of 12.3 per cent in November and remained over 11 per cent for the fifth straight month. No relief seems to be in sight in the new year. —DILASHA SETH HIGH FUEL and commodity prices have choked profit margins of manufacturing companies The Third Wave THE SPIKE in Omicron cases has brought back the spectre of restrictions on gatherings and movement of people, which is likely to impact the reviving…

13 min
on your radar

NEXT STOP: THE CONSUMER IF THINGS go as per plan, Adani Wilmar will list on the bourses in early 2022. The company is a name in the FMCG space with a portfolio of edible oil brands. Its ₹4,500-crore public issue will see Adani Group being listed outside infrastructure, a space where it has made a mark. For Group Chairman Gautam Adani, it is a way to unlock value in a business and establish itself as a B2C player. —KRISHNA GOPALAN BALANCING THE ECONOMY Union Finance Minister Nirmala Sitharaman will have a tough balancing act to carry out in the 2022-23 Union Budget: accelerating growth and presenting a credible fiscal consolidation path. Sitharaman and her team of officers—led by Finance Secretary T.V. Somanathan—will need to ensure augmented spending on capital and health to insulate the…

18 min
the bnpl mania

IS YOUR ELECTRIC bill lying unpaid? Or perhaps your gas bill? Is your phone recharge due, or cable bill? Is it because you are running a little low on cash or want to spend elsewhere? Well, Freecharge, a Gurugram-based fintech, has you covered with an instant one-month, interest-free loan up to ₹10,000. Not just for utilities, but similar loans with flexible repayment schemes are also available at the checkout page of an Amazon or a Flipkart, whether you buy an iPhone or a perfume. Ride-hailing firm Ola lets you pay for all trips at once, every 15 days. And in case your holiday plan seems just out of your wallet’s reach, travel aggregator MakeMyTrip is ready to finance your tickets and hotel bookings. Just buy now and pay later. BNPL, as…

1 min
makings of a trap

FOR BORROWERS 1 Availing loan for consumption and discretionary purchases 2 No history of loan or credit bureau records 3 Availing multiple BNPL products without realising the implications 4 Over-leveraging, creating a bad bureau record for future loans such as home or auto 5 Lack of financial literacy FOR BNPL PLAYERS 1 Not doing proper KYC, which is dangerous 2 Not checking with bureaus 3 Chasing growth and boosting valuations 4 No stress testing of the loan portfolio for higher interest rates or slowdown in the economy 5 No focus on collection and recovery FOR REGULATORS 1 No verification agency for digital lending apps 2 Flourishing illegal digital lending 3 Apps collecting all kinds of customer data from apps and social media, data privacy issues 4 No reporting to credit bureaus, bad credit culture 5 No guidelines on disclosure of annualised interest rate…