The government releases its borrowing plan for H1FY19, which is considerably less than what they borrowed in FY18. In an interview with CNBC-TV18, SK Dubey, MD of PNB Gilts and Lakshmi Narasimhan, Executive Director of Shriram City Union Finance shared their views and outlook on the same.
PNB Gilts seeing a strong up move in trade as the movement in bond yields helping the company make some outsized gains. In an interview to CNBC-TV18, SK Dubey, MD of PNB Gilts spoke about the latest happenings and his outlook going ahead.
Bond yields are likely to range between 6.35-6.55 percent, said SK Dubey, MD, PNB Gilts.
PNB Gilts aim to replicate the strong performance of the last two quarters in the fourth quarter of the year, says Managing Director SK Dubey, But he also quickly cautions, that it would be difficult as various challenges persist in the market.
The average borrowing cost in Q3 was 6.38 percent compared to 6.88 percent for the same period last fiscal, said SK Dubey, MD, PNB Gilts.
In an interview to CNBC-TV18 SK Dubey, MD of PNB Gilts shared his views on bond market. He expects to see some rate reduction in December 2016. "If it happens Q4 should also be good for us", he mentioned.
Speaking to CNBC-TV18, SK Dubey, MD of PNB Gilts said that company's current book is at Rs 4500 crore and it has sufficient margin to increase book if opportunities come.
Our best effort would be to maintain the trend or maybe improve it, if it is possible, on revenues and profits, says SK Dubey, Managing Director (MD) of PNB Gilts.
"As far as the bond market is concerned, it is doing well currently," SK Dubey, MD of PNB Gilts said.
In an interview with CNBC-TV18, DVSSV Prasad, MD, PNB Gilts says, the yields have gone up from 7.85% in March 2010 to 7.98% in March 2011, whereas the cost of borrowing has gone up from 3.25% to 6.75%. He expects 30-35% growth this year.