Is the bottom of the pyramid also a big opportunity? 4 small finance banks with upside scope of up to 41%

It might surprise many of you, ask your driver, your help at home, or the small chai shop owner how much interest he pays when he or she takes an unsecured loan taken in the private loan market. He or she might be paying four to five times more than the interest rate which any regular bank charges on an unsecured loan. That is what led to the birth of microfinance companies, now many of them are small finance banks. They are providing lending at the lowest end of the pyramid. Their interest rates were higher than normal banks would charge, but would surely much lower than what private money lenders in these parts of the country charges. That is where the opportunities are present for these small finance banks. After a phase of tough regulatory challenges, they have emerged stronger.

Macro environment in which auto ancillaries companies operate have turned favourable after a long period of time. Sometimes it is LCV and HCV which drives the demand, at other point time, better four and two wheeler numbers are pushing the demand up for auto ancillary companies, some of which are changing their business model to stay relevant in times of EV. We take a look at companies where analysts are projecting further upside in the next 12 months. The list is based on upside estimated by the analysts, with the highest potential stock coming on the top of the list.

With the focus of government policies increasingly turning favourable toward the manufacturing sector, some of the capital goods and engineering companies are making a comeback on the analysts list.

Several small finance banks still offer more than 9.5 per cent on certain FDs, especially to senior citizens. Interest rates of Jana Small Finance Bank FD, Unity Small Finance Bank FD, Fincare Small Finance Bank FD, Suryoday Small Finance Bank FD, ESAF Small Finance Bank FD compared.

There are sectors which under perform for years and then they come back to focus. Thanks to the fact that the textile industry was completely dominated by China and other countries, the Indian textile industry has been in bad shape for decades. However, post covid, partially due to China Plus one narrative. Secondly due to the fact that the government has been focusing on manufacturing, textile stocks have come into focus. This list is drawn from Stock Reports Plus, powered by Refinitiv, with over 4,000 listed stocks along with detailed company analysis focusing on five key components - earnings, fundamentals, relative valuation, risk and price momentum.

If one has to go by recent indications from management of different auto companies, the mood in the industry is positive about the forthcoming festive season. For the auto industry, headwinds like rising input cost, stagnant demand are becoming things of the past for the majority of them. Now if the festive season goes well, then auto stocks might see another push. Though if the metal prices start to rise some companies might face minor issues with their margins. So while being bullish, being watchful.

Letting realism prevail over Panglossian statements will help the central bank get a better handle on tail risks. Continuing rural stagnation should ideally focus attention on the distributional effects of monetary policy.

Given below is a list of six banks which are offering more than 6% interest on fixed deposits (FDs) of an amount less than Rs 2 crore. The highest FD interest rate is being offered by Unity Small Finance Bank.

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Bankers argue that a broader policy is required to promote environmental, social and governance (ESG) lending, and the proposed relaxation will free up more capital for such financing.