Credit Market Outlook: Shyam Maheshwari, SSG Capital Shares His Perspectives

Flexibility emanates from the regulated players which have been dominating the market for a long time, says Shyam Maheshwari SSG Capital taking what he said on the flexibility of the banks and the non-banks. The financial expert considers the first one as regulated and the second one as leveraged. According to him, 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.

Mr.Shyam Maheshwari-founder and partner of SSG Capital Management.

Mr. Maheshwari also identifies that flexibility is available in two ways. Flexibility is available in terms of speed and also in terms of crafting a solution which is meeting the need of the borrower then. “It could be for capital formation, which is quite a constraint in terms of financing from the traditional sector in India”, he says. According to Shyam Maheshwari, the third is real estate and the fourth is intangibles. He deliberates that a lot of these sectors as the building blocks of the country especially of the real estate which does not get adequate attention from the banking sector.

In Shyam Maheshwari’s point of view, people expect certain sectors have more need. And this need seems like it has grown rapidly at least in terms of number enquiries. The need required in certain sectors exceeds the need that the sector expects. He says that in reality, this is primarily because of constraints especially at this point where the banking sector is running double-digit MPL ratios. Shyam Maheshwari recognizes that there had been certain comfort for the investors from the global perspective because there is an IBC process in place.

Mr. Maheshwari assesses that here is creditor protection which is increasing and improving over time. The access to the market remains open and improving, he says. But still Shyam Maheshwari considers that there is a lot that could be done to advance the market conditions. One way to make this possible is in the form of access, which is currently only available to the foreign participant in the form of either ECB in dollar terms or in rupee. Bond market has certain nuances and constraints at this point. But he is also delighted to see the signs that it has been opening up in the last decade.