Interest rate risk (IRR) for a financial institution is similar to changing raw material costs for a manufacturing organization. If a financial institution like bank, non-banking finance company (NBFC) or housing finance company (HFC) is not able to manage interest rate risk properly, then it
The current article provides responses related to the query: Why do finance companies use short term funds like commercial papers (CPs) and current/savings account (CASA) for giving long term loans and create an asset liability mismatch? We have a section dedicated to answering queries from
The current article in this series provides responses related to the following queries: Can we know the true financial position of a Bank by reading its reported financials? What should we look at while investing in Banks/Financial Institutions? Do we invest in PSU banks?
“Peaceful Investing” is the result of my experience of about 15 years in stock markets. It aims to find such stocks, where after investing, an investor may sleep peacefully. If later on, the stock prices increase, then the investor is happy as she is now wealthier. If the stock prices decline, even then the investor is happy as she can now buy more quantity of the selected fundamentally good stocks.
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