Sriram: The most important and hotly debated topic of the last few weeks and months has been corporate earnings. The ones that have come out so far have pleasantly surprised some of us who had come to believe that the economy has collapsed in the last two months.
We are told that bankers are not able to do any work and they are only handling customer complaints and exchange of notes. We are pleasantly surprised by the performance of the tractor businesses of Mahind .. We are told that bankers are not able to do any work and they are only handling customer complaints and exchange of notes. We are pleasantly surprised by the performance of the tractor businesses of Mahindra & Mahindra and some of the other companies, some of the private sector banks have done quite well. The Indian economy and the corporate sector are far more resilient than we ever thought or ever credit to.
If I was to look today, we are about 75-80% recovered from the effect of demonetisation. And that has happened because consumers are very quickly getting confidence back and taking the inconvenience in their ..
Sriram: Right. But there are a lot of very good opportunities for you also if there is more restructuring and shakeups in the business?
Niranjan Hiranandani: A lot of M&A people sitting here. They have got a lot of business coming.
Sriram: A lot of people with real estate stocks in their portfolio may feel heartened by what Mr Hiranandani is saying but hold on to your thoughts because we are going to back on the real estate and some of the poi ..
Rajiv Anand: A good way to look at that is the number of bureau enquiries, customers come to us. We go to the credit bureaus to check the credit history of customers. In the middle of November, that number was down about 30-35% over November 8th. That number c ..
Rajiv Anand: These are enquiries. When you ping the Credit Bureau, it is fair to say that it will convert into loans. Also up quite a lot are personal loans and credit cards. It is really the smaller value consumption which is now back in action. As Mr Hiranandani was mentioning, on mortgages and LAP, things will take a little more time before they go back to normal.
Rajiv Anand: If you look at both November and December the fall typically industry has been growing at about 18-19%, that came down to about 15-16% so the point that all of you have been making that the consumer has been resilient is indeed playing out. So for the retail credit to go back to 18-19% is not going to take too long.
Mrinal Sinha: Across. It is secular. I just spoke about a big massive organised business which changed all of its dealers. The dealers have been ready. The vegetable vendors, the milk booths, the taxi drivers so it is across industries, consumer goods, consumer staples, it is stuff which need to be financed through loans across the ..
Sriram: Do you think that the cost of digital transaction should come down and the government should somehow step in and say we do not want you guys to charge more or do you think there should be a more evolved way of dealing with this?