Housing

May 20, 2013

ECB for Housing – Risk Without Returns

External Commercial Borrowing/ ECB External Commercial Borrowing or ECB is an instrument used in India to help corporates access foreign money. ECBs include loans, buyer/supplier credit, special […]
January 4, 2013

Infrastructure Status to Housing Sector – Is it the need of the hour?

The Indian Finance Ministry has recently asked the Central Bank of India, the Reserve Bank to consider giving infrastructure status to the housing sector. The ministry has also asked […]
January 11, 2012

Green Jobs in India to be driven by Real Estate and Construction Sector

Green Jobs in India is going to grow at a high double digit rate driven by the Real Estate and Construction Industry. The hiring will be done by Real Estate Companies in India looking for Energy Efficiency and Green Building professionals. Note the Green Industry globally has had a torrid 2011 with most of the major sectors like wind, solar, biofuels and lighting facing oversupply amidst slowing demand due to global macro problems. However the Green Industry has a great fturue driven by secular drivers like
July 4, 2011

Supreme Court becomes School Master for Corrupt Indian Government (Congress Party) – Appoints 2 Former Judge SIT (Jeevan Reddy,MB Shah) Black Money Case

India's Supreme Court took the matter of hundreds of billions of dollars of Black Money stashed into foreign bank accounts into its own hands as the government has repeatedly failed to take any action stalling the case.The Indian government led by the Congress Party has been repeatedly blasted by the Supreme Court for not acting against corruption matters.Recently the Court in an unprecedented move took over the supervision of the CBI in 2G Telecom Scandal Case Investigation.Note CBI is under the Home Ministry and like other investigations was being tardy to take action government ministers.The 2G Telecom case has resulted in top ministers and corporate CEOs being jailed with prospects of more being convicted.
July 4, 2011

Finance Companies in India -List of Infrastructure,Housing,Gold,Transport Finance Institutions,Banks and Insurers

The Indian Financial Companies were subject to strict regulations till 1991 when interest rates were administered and asset allocation was governed through various formal mechanisms and strict controls limited the entry of financial companies. In 1991, the government of India initiated a reform programme for India, which encompassed the financial sector.There were numerous reforms that were intitiated which has led to the emergence of a robust financial sector which easily managed to sidestep the post Lehman global financial crisis in 2008.The post 1991 reforms allowed the deregulation of interest rates,entry of new private sector banks permitted long-term lending institutions like ICICI,IDBI,HDFC to carry out banking activities.The banking sector in India has become increasingly more competitive in recent years. Public sector banks have lost their market share to the more dynamic private sector banks .It is not possible to list out all the Finance Companies in India in one post as there are almost 13000 non-bank finance companies (NBFCs) besides Banks,Insurance Companies,Foreign Financial Institutions etc.This post lists out the Financial Companies in the Gold Finance,Travel,Housing,Infra sectors as well as the Top 10 Banks.
July 4, 2011

India Housing Finance – Guide to List of Top Home Loan Companies,Types of Loans,Interest Rates,National Housing Bank Act,Laws,Tax Benfits

The formal housing finance market of India comprises various segments viz. Housing Finance Companies, Scheduled Commercial Banks, Co-operative Sector etc. These institutions offer a variety of products relating to direct finance, refinance, micro-finance etc, to the borrowers.The share of outstanding housing loan as a percentage of GDP has risen from 3.4 per cent in 2001 to 7.25 per cent in 2007 (estimated). The share of outstanding housing loan as a percentage of GDP has risen from 3.4 per cent in 2001 to 7.25 per cent in 2007 (estimated). Housing Finance Companies in India At present, the need for housing finance in India is largely being fulfilled by the more than 40 Housing Finance Companies and 27 Public Sector Commercial Banks.The housing finance companies' market is dominated by large players such as HDFC, LIC Housing Finance Limited, Can Fin Homes, Dewan Housing Finance Limited, Sundram Home Finance and GRUH Finance Limited (now bought by HDFC)
July 2, 2011

India Business-Politician Nexus Intimidates Poor Tribals Selling Land cheaply for Janjgir Champa Power Plant (Videocon,Kanwar) Twist Laws

Indian Businessmen and Politicians have been looting the citizens and the treasury of billions of dollars through numerous corruption scams and scandals.While the focus has been on the big corruption scandals at the centre being perpetrated by ruling party politicians,opposition party has not been far behind.The Nira Radia Tapes revealed the extent to which the Indian politicians have sold the state to big business.Major ministers are appointed by the major industrial conglomerates leading to billions of dollars in embezzlement.There are numerous instances like the Commonwealth Games Scam,Adarsh Scam,the 2G Telecom Scam etc.Many of the politicians are now big businessmen themselves owning companies legally and illegally.According to Nira Radi,India's agricultural minister is the benami owner of one of the largest realty companies DB Realty whose CEO is cooling his heels in jail for the 2G Scam.The concerned minister is also involved in the Lavasa City Scam in which a whole city was built in partnership with HCC flouting all environmental norms and regulations.
May 12, 2011

BJP finds it hard to fight Congress on Anti-Corruption as its own Ministers(Kalia,Swarna Ram,Yeddurappa) Indulge in Land Scams

BJP,the chief opposition party in India is finding it hard to fight the ruling party's widespread corruption as its leader are too compromised in land scams of their own.The Karnataka ministers of the BJP are known to be amongst the most corrupt in the country with the CM himself indulging in land scams along with his sons.The Bellary trio of Reddy brothers have amassed billions of dollars through plundering iron ore illegally and having literally bought the government in Karnataka for the BJP with their ill-gotten wealth.Karnataka’s Chief Minister has justified corruption as tradition and despite huge pressure to resign managed to survive due to unique caste politics of India .The Supreme Court has called the corruption in India “mind boggling” while the Chief Vigilance Officer had earlier called 30% of India’s population utterly corrupt.Now the BJP's ministers in the Punjab government have been accused of land scams in the state.Two of the BJP ministers Manoranjan Kalia and Swarna Ram have been implicated in a Land deal on the outskirts of Chandigarh.Kalia holds the industries and local bodies portfolio, Ram is social welfare and justice minister.
May 7, 2011

'Regularisation of Illegality' – India's Environment Minister Helpless in Taking action against Ecological Destruction

India's environment minister Jairam Ramesh has pleaded helplessness as he is too being forced to go along with these environmental destructive projects.This is a characteristic which is peculiar to India and has allowed the culture of corruption to flourish.If you build a large enough project with enough billions in investment you can get away with the murder of the environment as the government could destroy such a large investment.These ad hoc measures which lead to construction of illegal projects has been leading to the destruction of ecology in a large scale manner.Only a blanket demolition of all structures built illegally irrespective of the cost will lead to the lessening of the corruption in the business sector.
May 2, 2011

Lavasa A Township built on Sand – How the Politics-Business Nexus Colluded to give Birth to this Environmental Disaster

Lavasa is a story of corruption,looting of the poor and raping of the surrounding environment by the Indian politician-bureaucrat-businessmen nexus in a beautiful cover of a township built for the rich and well heeled.There is little concern for the law as these powerful developers know that they can get away with murder quite literally.The long term sustainability of the township is in doubt which defeats the entire purpose anyway.Any buyer of property in Lavasa should be aware of these problems and should not buy it as their investment will be eroded in the future anyway besides having the taint of being looted from the poor.However the media too has lost interest as a new scandal emerges everyday. Lavasa Township being constructed near Pune,Maharashtra has been in the media off and on for creating a environmental disaster in the shape of a beautiful township constructed on the hills.The town which has been constructed for 300,000 residents has violated all building and environmental norms of the state and centre.With powerful politicians and businessmen backing the project,its not as surprise that the state government of Maharashtra actively helped the township in bypassing all the laws and regulations.There is no provision for permanent water supply and it would lead to a clash between the water wants of Lavasa and Pune.Note builders in India are notorious for leaving out water and waste sustainability in their plans.The residents of the buildings,apartments and other shelters have to bear the brunt later on when there is no water and problems like waterlogging.Gurgaon the millenium township suffers from both of these problems quite acutely.Note these problems are common to both million dollar homes as well as slums in India.
April 25, 2011

India Corruption Cases(2G,CWG) – Scamsters get caught,charged (Kanimozhi,Kalmadi) but will the Big Fish be netted

India has lately become a nation known for endemic corruption rather than the world's poster growth boy with the ruling party members implicated in a number of corruption scams.With the government reluctant to take action against its own,the Supreme Court was forced to take over the supervision of the investigating agency CBI.In the first chargesheet top corporate honchos and CEOs were put under arrest alongwith the former telecom minister Raja and his cronies.With the ruling party under pressure from a civil society movement against corruption,the ability to manipulate the investigation process is limited.Not that the government is not trying put impediments in the court cases and top ministers and leaders indulging in character assassination of the eminent social activists like Santosh Hedge and others.This comes even as other chief ministers of the Congress like Gehlot get caught in nepotism.
April 22, 2011

Yet Another Congress Chief Minister(Gehlot) accused of Corruption in Government Contracts

The Congress Party and its leaders can't stop being caught in corruption scams and instead of trying to correct them,they slander and character assassinate civil rights activists who try to bring about an anti-corruption bill in the country.The Adarsh Housing Scandal in which the Congress Chief Minister in Maharashtra was involved had to resign though no jail time for him or for his associates.The Scam which also involved top bureaucrats,Corrupt Indian Military Generals and other sleazy officials has died a natural media death as fresh scams take their place.Not that the Opposition party BJP is any better with its Karnataka Chief Minister failing to resign despite being accused of a number of scams.Note the Karnataka Ministry of the BJP has robber mining barons as top ministers who have made billions of dollar through illegal mining of iron ore.
April 22, 2011

Indian Politicians (Digvijay,Amar Singh) indulge in Character Assassination,Propaganda against Civil Rights Activists to stop Jan Lokpal Bill

Indian Politicians after being forced to bend against the popular support received by Anna Hazare and other civil rights activists in the recent fast unto death […]
April 15, 2011

Nira Radia reveals Sordid Corruption Nexus – DB Realty owned by Pawar,Tata Companies TCS,Tata Motors Bending Backwards in giving Favors to DMK Raja for Telecom License

Nira Radia the millionaire lobbyist who became a public figure overnight as tapes leaked to her phone conversations were printed by the mass media has revealed sordid details about the politician businessmen nexus.In the chargesheet presented by the CBI to the Supreme Court she has revealed the multi billion dollar realty company DB Realty is a front for Sharad Pawar and controlled by him.This hardly comes as a surprise as powerful Agri Minister Pawar has been linked to a number of corruption scandals like the Lavasa Scandal,2G Telecom Scam,IPL Scam etc.Note DB Realty CEO has been directly implicated in the transfer of bribe giving to Raja the former Telecom Minister in exchange for a Telecom License at dirt cheap prices.It is a tribute to the power of Pawar that despite such massive circumstantial evidence against him and his family,there has been no court case or police charges against him.Note a number of big companies in India are known to be secretly owned and controlled by powerful politicians.Not that politicians don't own billion dollar businesses openly and use their political muscle to further their own interests in a blatant manner.
April 6, 2011

Anna Hazare Deflates the Congress Ploy of Portraying Him as a Puppet,Says not to Insult His Intelligence

The Lok Janpal Bill has received a tremendous response from India's Civil Society which is totally fed up with the endemic corruption and a government which refuses to do anything as most of its ministers are caught in numerous scams themselves.One of its former ministers is already cooling his heels in Jail after India's Supreme Court was forced to take over the investigation as the government refused to take action.The Anti-Corruption Bill which has been formulated by eminent citizens and social activists has been rejected by the government (what a surprise) and the ruling party Congress has refused to talk.Here is a Guide and Summary of the Main Points of the Draft of the LokJanpal Bill.Instead the ruling party has brought in politics into the picture saying that Anna Hazare has become a puppet for the opposition.
April 5, 2011

What is Jan Lokpal Bill and How it Plugs the Giant Loopholes in Government Version LokPal Bill

India’s Civil Society has brought out the Jan Lokpal Bill that has been drafted has been drafted by eminent members of the civil society like Prashant […]
April 5, 2011

Jan LokPal Bill – Summary and Guide to India's Civil Society Anti-Corruption Bill Deserves Our Support

The Jan LokPal Bill is supposed to be the answer to India's massive endemic corruption which strikes daily in the form of a new scam or scandal.The government has proven to be woefully inadequate in taking on the corrupt politicians,bureaucrats and businessmen.This corrupt nexus has been repeatedly exposed and its structure exposed through the Nira Radia Tapes.The Indian administration has shamefully failed to take action only promising to do something without doing anything worthwhile.The Indian Judiciary has also castigated the government numerous times for its abject failure in the 2G Telecom Scam,Black Money Scandal etc.However the government instead of strengthening anti-corruption measures has only put obstacles in the way.Its no wonder when the committee meant to look after the Bill comprises of ministers tainted with a number of scams themselves.Anna Hazare has held a fast unto death to put pressure on the government to pass the draft bill but the Minister appear unconcerned.Here is a short summary and guide to the main points of the Jan LokPal Bill which IMHO deserves the support of the whole Indian civil society.
March 28, 2011

India's Supreme Court castigates ED for incompetence on Black Money Hasan Ali Hawala Corruption Case

India’s Supreme Court has become a schoolmaster for the errant Indian investigative agencies which keep showing glaring incompetence and reluctance to go after top offenders.The Indian […]
December 8, 2010

Punjab & Sind Bank IPO – Very Attractive Valuation makes it a Buy

Punjab and Sind Bank is a National PSU (Public Sector Undertaking) which is coming with a Rs 480 crore IPO by selling 4 crore shares at around Rs 113-120.The Company is offering 18% of its equity in the offering which would give it a market capitalization of roughly Rs 2500 crore ($550 million) at the upper end of the price band.Note there are a large number of mid cap and large cap PSU banks listed on the Indian markets.Note most of the PSU banks have seen a very good bull run in the last year and a half significantly outperforming the rest of the market.However the last 3-4 months have been tough with a LIC Housing Finance Scandal implicating top PSU Bank Officials for taking Bribes for Loans.The rise in deposit rates and tight liquidity has also hurt the sentiment for PSU Bank stocks.However,Banking remains one of the best ways to play the Indian growth story as financial inclusion remains very low.PSU Banks in general trade at low valuations compared to the private bank peers and mid cap PSU banks at lower multiples than larger ones like SBI,Bank of Baroda and PNB. Summary Punjab and Sind Bank seems a no brainer due to its significant discount on its fair valuation.At 5x P/E and around 1.2x P/B ,Punjab and Sind Bank is being sold at a substantial discount to the rest of PSU banks which are lower quality in terms of growth and margins.There are some mitigating factors like the low NIM ratio however the valuation more than covers for that up.The only problem in case of the Punjab and Sind Bank IPO is going to be oversubscription.Like MOIL IPO which saw 55-60 times oversubscription,same thing could happen here also.
December 7, 2010

Is India already a Banana Republic as Union Minister Threatens High Court Judge

India has been plagued with numerous corruption scandals being exposed in the last few months.While a number of such scandal like the Adarsh Land Scam,Commonwealth Scams,Stock Market Scam,Stock Market Scam,Housing Finance Scam have been written about in this blog,the spate refuses to stop.With India's Chief Vigilance Officer calling 30% of Indians as utterly corrupt and even the Supreme Corrupt calling corruption in India "mind boggling",it is not a surprise.2G Telecom Scam Prime Suspect Telecom Minister Raja has come into the spotlight again for threatening a High Court Judge in a CBI case related to an eduction scam.The background relates to a High Court Judge of Tamil Nada accusing a Union Minister of influencing a decision of the court.This created a huge ruckus as the said Judge refused to name the Minister.India's Judiciary is one of the more powerful institutions in the country and considered much more trustworthy than the other 2 arms executive and the legislature.The Agriculture Minister brazenly supports favored Business Interest while another Minister was sent packing off after unethically supporting a cricket franchise
December 1, 2010

India's Supreme Court Blasts Government,Reveals India's Investigative Agencies are Mere Puppets

The low level of trust in the Indian government's investigative and vigilance agencies was revealed when India's Highest Court,the Supreme Court of India blasted the government for its choice of the Central Vigilance Commissioner.India has been rocked by a series of Housing Loan,Telecom and Land Scams recently implicating top politicians,bureaucrats and even army generals and admirals.However no one expects anyone significant to be prosecuted as the prosecutors themselves are compromised.It is openly known that the Central Bureau of Investigation (CBI) is totally controlled by the ruling party at the centre.The Income Tax and Enforcement Directorate also serves as puppets of the government being selectively used against opposition politicians and businessmen.
November 29, 2010

List of Top Real Estate Companies in India;A Sector Plagued by Scams and Scandals

Organized Real Estate Industry in India is only a couple of decades old .Real Estate Industry in India took off with the global boom in the Realty Sector which percolated down to India as well.Lack of clear land titles and litigation has made this industry one of the most opaque and corrupt ones.Due to the massive price appreciation and huge valuations,Land Scams have become quite common with Chief Ministers,Generals,Top Bureaucrats all involved in the murky environment of Real Estate in India.The most recent scam related to bribing of top public banks officials in the LIC Housing Finance Scandal has again put question mark on the fundamentals of the industry.Valuing the industry and making a real estate investment remains one of the most difficult investing tasks in the Indian Stock Market.Even Fund Managers are staying away from the Sector due to lack of trust in the Financial Statement given by the industry.That said modern India presents a booming picture of tall buildings and huge office areas & shopping malls. A list of the chief players in Indian market is given below:
November 28, 2010

Nira Radia Wire Tap Reveals Big Business Takeover of the Indian Government

Nira Radia one of the top lobbyists in India has been exposed through wire taps done by Indian investigative agencies which has been leaked to the media.The conversations in the tape have revealed how this lobbyist has India's top politicians,bureaucrats,journalists at her beck and call.While it is known that corporate interest wield huge influence amongst Indian government officials,the tapes reveal that Big Business has the government almost completely in its pocket.The 2G Telecom Scam had earlier shown that how top ministers had connived with capricious business houses in swindling the Indian taxpayers of billions of dollars.LIC Housing Finance Scam which has been recently exposed has led to top government company officials being arrested for taking bribes in sanctioning loans to top realty and infrastructure companies.This had been done by a financial intermediary listed on the stock exchange and which had top investors like Goldman,GMO,Fidelity and Morgan Stanley.With the scam exposed these top investment banks have lost their shirt in this investment.