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    GAIL Indias Business Model and Risks

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    Deepansh singhal

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    GAIL Indias Business Model and Risks

    Uploaded by

    Deepansh singhal
    7 views8 pages

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    GAIL-Indias-Business-Model-and-Risks

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    © All Rights Reserved
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    7 views8 pages

    GAIL Indias Business Model and Risks

    Uploaded by

    Deepansh singhal

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 8

    GAIL India's Business

    Model and Risks


    GAIL India is a leading natural gas company in India, responsible for the
    transmission and marketing of natural gas. Its business model involves
    the procurement, transportation, and distribution of natural gas to
    various industries and households.
    Risks Faced by GAIL India

    1 Commodity Price Volatility 2 Regulatory Uncertainty 3 Infrastructure Challenges


    GAIL India is exposed to the Changes in government policies Maintaining and upgrading its
    fluctuations in global natural gas and regulations can affect GAIL's extensive pipeline network and
    and crude oil prices, which can operations and financial other infrastructure is crucial for
    significantly impact its performance. GAIL's operations.
    profitability.
    Commodity Price Volatility

    1 Price Monitoring
    GAIL closely monitors global commodity prices to anticipate and respond to market changes.

    2 Diversification
    GAIL has diversified its business portfolio to include petrochemicals, LPG, and other value-added products to
    mitigate price risks.

    3 Hedging Strategies
    GAIL utilizes various hedging instruments, such as futures and swaps, to manage its exposure to commodity
    price volatility.
    GAIL's Approach to Hedging
    Financial Instruments Timing and Volumes Governance and Monitoring

    GAIL uses a range of financial GAIL carefully times its hedging GAIL has robust governance
    instruments, including futures, swaps, activities and determines the mechanisms and risk management
    and options, to mitigate its exposure appropriate volumes to be hedged practices to oversee its hedging
    to commodity price risks. based on market conditions and its activities and ensure effective
    risk appetite. implementation.
    Risk at IndusInd Bank: Rising NPAs

    1 Economic Slowdown 2 Sectoral Exposures 3 Weakening Credit Quality


    The economic slowdown and IndusInd Bank's exposure to The bank has seen a
    pandemic-related disruptions sectors like hospitality, aviation, deterioration in the credit quality
    have led to a rise in non- and real estate has been of its loan portfolio, leading to
    performing assets (NPAs) for impacted by the economic higher provisioning requirements.
    IndusInd Bank. downturn.
    IndusInd Bank's NPA Management
    Tighter Underwriting Proactive Monitoring Restructuring and Recovery
    IndusInd Bank has implemented The bank has enhanced its loan IndusInd Bank has focused on
    stricter underwriting standards to monitoring and early warning restructuring and recovery efforts to
    ensure better quality of new loan systems to identify potential address the rising NPA levels in its
    disbursements. stressed accounts in a timely loan portfolio.
    manner.

    Provisioning and Capital Strengthening


    The bank has increased its provisioning coverage and raised additional capital to strengthen its balance sheet and absorb
    potential losses.
    Technological Advancements at IndusInd Bank

    AI-Powered Solutions Mobile Banking Data Analytics


    IndusInd Bank has implemented The bank has developed robust mobile IndusInd Bank leverages advanced data
    artificial intelligence and machine banking platforms and digital channels analytics to gain insights, improve risk
    learning technologies to enhance its to provide convenient and accessible management, and drive business
    decision-making, risk assessment, and banking services to its customers. growth.
    customer experience.
    Conclusion: Lessons and Best Practices
    Diversification
    1 Diversifying business portfolios can help companies mitigate risks and enhance resilience to market
    fluctuations.

    Risk Management
    2 Proactive risk management, including hedging and early warning systems, can effectively address and manage
    various risks.

    Technology Adoption
    3 Embracing technological advancements can drive operational efficiency, improve decision-making, and
    enhance customer experience.

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