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Asia focused research insights & advisory, Asia Advisors

Vinay Patel

Asia focused research insights & advisory

Asia Advisors

Asia Advisors is an independent financial advisory and research firm working closely with corporates and institutions to provide consulting solutions & research insights. We provide advisory services including capital solutions, business strategy and investment insights.
Firm is headed by Vinay Patel who has close to two decades of experience in research and business development at large, international investment banks such as HSBC and ICICI Securities. Led research efforts in areas of Macroeconomics, Asset Allocation & Investment Strategy for close to a decade in global & domestic research teams. As a business head in Singapore, advised top global investment management firms & Portfolio managers in Asia for India related investments.
Vinay was recently joined by Swapnil Manish, an investment banker and ex-ecommerce entrepreneur with more than 12 years of experience. Swapnil was the TMT banker at BNP Paribas and was part of several large M&A and ECM transactions (Bharti-Zain, Bharti Infratel IPO, Schneider-Zicom among several others). He's also had a stint as an ecommerce entrepreneur having launched & led Mumbai's first online grocery player.

Thematic (Sector/Industry)

India Financials / Thematic (Sector/Industry)

NBFCs along with global PE funds have provided almost 80% of Real estate sector financing needs in the last 5 years as banks slowly reduced exposure to the sectorGiven the prevalent slowdown in the real estate sector, much of the lending was simply a refinancing of loans between NBFCs and also from banks to NBFCs. Developers meanwhile managed to sell just about enough apartments to service the debtHigh competition among NBFCs resulted in significantly lower yields for construction finance, from 18-20% in FY16 down to 13-14% in FY18. With NBFCs carrying exposure to B category builder, the NPL risks run highNBFCs had a false sense of security by having geeks structure these loans nicely (compared to PSU banks) and also took comfort in higher collateral (basically more unfinished apartments!).  Several NBFCs face a double whammy as mortgage finance for the end user has also dried up and so has firms ability to refinance construction finance loans. NBFCs with higher exposure to developer loans are witnessing large sell-off in the markets (see table below)

NBFCs along with global PE funds have provided almost 80% of Real estate sector financing needs in the last 5 years as banks slowly reduced exposure to the sectorGiven the prevalent slowdown in the real estate sector, much of the lending was simply a refinancing of loans between NBFCs and also from banks to NBFCs. Developers meanwhile managed to sell just about enough apartments to service the debtHigh competition among NBFCs resulted in significantly lower yields for construction finance, from 18-20% in FY16 down to 13-14% in FY18. With NBFCs carrying exposure to B category builder, the NPL risks run highNBFCs had a false sense of security by having geeks structure these loans nicely (compared to PSU banks) and also took comfort in higher collateral (basically more unfinished apartments!).  Several NBFCs face a double whammy as mortgage finance for the end user has also dried up and so has firms ability to refinance construction finance loans. NBFCs with higher exposure to developer loans are witnessing large sell-off in the markets (see table below) 

Real Estate Loans Blow up Has Been Cooking For NBFC As High Competition Drove Down Quality & Yields