Inquiries dropped drastically post the announcement public & private sectors banks being more pronounced.
While online traffic has increased, they have not come up to pre-announcement levels
Credit Card & Auto Loan inquiry volumes have increased beyond pre-announcement volumes
Other trade types continue to lag behind
Impact on deployments – Logins
2W & 3W finance – Very slow demand post demonetization. 2W & 3W finance business has seen significant deterioration in current bucket portfolio owing to high dependency on cash collections.
Consumer durable finance – Have cut 18% business in Q3 FY17 as articulated in Q2 earnings call
Digital product finance – Have cut 35% business in Q3 FY17 as articulated in Q2 earnings call
Lifestyle product finance – Deep slow down in first 30 days
Impact on deployments – Disbursal
Real Estate – General: DLF In its latest Investor Presentation shared the Effects of Demonetization: DevCo: In the longer term, we believe that the demonetization shall be a positive for both the Company and all its stakeholders especially customers.
Enhanced stress – Limited resources to manage household and business operations
The common perception: reduced discretionary spending
Demonetization Plus: Rs. 100 (continuing legal tender) currency largely used for our products. Most Pincon customers enjoy adequate volumes of Rs. 100 currency note. Rubber & Plastics:Finolex Industries In its latest Investor Presentation shared the Effects of Demonetization:
Future Outlook: Though demonetization has created a temporary setback, the long term impact will be positive
Demonetization is likely to reduce the gap in primary and secondary market transactions.
In order to support theliquidity, each of our Biz Bazaar POS were deployed toreleasenew currency notes in a quick time frame
As an outcome of Demonetization, the share of modern retail trade increased substantiallyand webelievegoing forward, this event shall contribute favorably
Typically, card/wallet invoices are of higher value than the cash invoices,this might potentially increasing the overall sales value in future
Houseware: Borosil Glass Work Mr. Shreevar Kheruka – Managing Director & Chief Executive Officer said:
In the short run we will have some impacts on the sales of products from a secondary and tertiary perspective. Eventually this is going to hit us on the primary sales also; however we do have furnace repair sometime in April-May of the coming year, so we are planning to run at full capacity because anyway we have to build stock for selling during the 2 months or so that the furnace is out of production. So we continue on full capacity and hope we are able to come up with ways to limit the impact of demonetization on sales of the organization.
With demonetization we do not know how real estate prices are going to move in terms of the valuation.
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