Shyam Maheshwari is the Partner at SSG Capital Management. Shyam Maheshwari, Associate Member at The Institute of Chartered Accountants of India, explains about the covid battered Indian market and economy. As India’s pandemic battered businesses and economy emerge into a still uncertain next normal, there is an increasing focus on private credit as a fuel to drive business expansion and sustainable long-term growth. This along with traditional lenders such as banks especially PSU banks which have done Yeoman service for the country during the difficulties of 2020 will be facing greater pressure in 2022 and beyond. According to Shyam Maheshwari, the Indian credit market has been dominated by banks and non-bank financial companies for a long period. “It started with primarily dominance of PSU banks and then the private sector banks. Still, the credit to GDP ratio is relatively modest and low for the stage of growth of the country. As the economy develops credit intensity, it would probably increase initially and the need for credit is very much out there. The challenges the banks and non-banks face, as it is rightly pointed out is that, they may not be able to fulfil that requirement and that’s where the private credit demand is extremely apparent and necessary for the growth”, says Shyam Maheshwari. Shyam Maheshwari SSG thinks that flexibility also emanates from the regulated players which have been dominating the market for a long time whether it is a bank or a non-bank. One is regulated and the second is leveraged. The leverage platforms have certain constraints which were shown when IFS has happened in terms of whether it is LLM or it is provisioning norms. Shyam Maheshwari points out that there is creditor protection which is increasing and improving over time.He affirms that the access to the market remains open and is undergoing improvement but still a lot could be done. “It is pretty encouraging to see the signs that it has been opening up in the last decade or so”, says Shyam Maheshwari.
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MichaelMichael is Professor of Political Science and Head of Department. His research is on public administration and administrative reform, core executives, the role of civil servants in a transformed state, Archives
May 2024
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