Advancing Market Conditions: Shyam Maheshwari SSG's Vision for Financial Growth
Flexibility stems from established entities that have maintained market dominance over an extended period, as articulated by Shyam Maheshwari SSG Capital. Maheshwari expounds on the adaptability of both banking and non-banking entities. He categorizes the former as regulated and the latter as leveraged. He observes that leveraged platforms exhibit certain limitations, which became evident during instances such as IFS (Integrated Financial Supervision), encompassing aspects like LLM (Loan Loss Mitigation) and provisioning norms.
Furthermore, Mr. Maheshwari discerns two dimensions of flexibility. Firstly, it manifests in terms of velocity, expediting processes. Secondly, it involves tailoring solutions to precisely meet borrowers’ exigencies. He illustrates this with scenarios like capital formation, which often faces constraints when seeking traditional financing avenues within India. According to him, the third and fourth sectors warranting attention are real estate and intangibles. Maheshwari asserts that these pivotal sectors, notably real estate, have been inadequately attended to by the banking sector.
In the perspective of Shyam Maheshwari, specific sectors have experienced an unforeseen surge in demand, outpacing their projected needs. This disparity, he elucidates, is largely due to prevailing constraints, particularly amid the current environment of double-digit MPL (Non-Performing Loan) ratios within the banking sector. Maheshwari acknowledges that global investors find some reassurance in the presence of an IBC (Insolvency and Bankruptcy Code) mechanism, signifying an enhancement in creditor safeguards. He also observes an ongoing trend of an increasingly accessible and improving market.
Nevertheless, Shyam Maheshwari SSG ,contends that substantial room for progress persists within market conditions. One avenue to facilitate this evolution lies in expanding access, which currently remains exclusive to foreign participants, primarily through avenues like External Commercial Borrowings (ECB) denominated in either dollars or rupees. While the bond market presents certain intricacies and limitations at present, Maheshwari acknowledges promising indications of its gradual expansion over the past decade.