Aadhar Housing Finance has filed its DRHP with SEBI for an initial public offering of ₹ 7,300 crore.
“The IPO comprises fresh issuance aggregating up to ₹1,500 crore by the company (fresh issue) and an offer for sale of aggregating up to ₹5,800 crore by BCP Topco VII PTE. Ltd,” it said in a statement on Tuesday.
The net proceeds from the fresh issue are proposed to be utilised towards augmenting its capital base to meet the future capital requirements, it further said.
Blackstone-promoted Aadhar Housing Finance is the largest affordable housing finance company in the country in terms of asset under management (AUM), as of March 31, 2020.
Gross AUM increased from ₹ 7965.92 crore in 2017-18 to ₹10,015.75 crore in 2018-19 and ₹ 11,431.66 crore in 2019-20.
As of September 30, 2020, gross AUM comprised 64.83 per cent loans to salaried customers and 35.17 per cent loans to self-employed customers.
ICICI Securities, Citigroup Global Markets India, Nomura Financial Advisory and Securities (India) and SBI Capital Markets are the Book Running Lead Managers to the issue, it further said.
The equity shares are proposed to be listed on BSE and NSE.
Reserve Bank Staff College invites e-tenders, under two part system (part I and Part II – price bid) for the work of “Annual Service Contract for Deployment of Trained Security Personnel (Security Supervisor and Security Guards) at Reserve Bank Staff College, Anna Salai, Teynampet, Chennai – 600018”, as per the Schedule of Tender (SOT). The tendering will be done through the e-Tendering portal of MSTC Ltd (http://mstcecommerce.com/eprochome/rbi).
The estimated cost of work is ₹ 64.50 Lakh. The work shall initially be awarded for a period of one year from April 01, 2021 to March 31, 2022 and shall be renewable as applicable and detailed in the tender document.
SCHEDULE OF TENDER (SOT):
a. e-Tender no
RBI/RBSC//468/20-21/ET/468
b. e- Tender name
Annual Service Contract for Deployment of Trained Security personnel (Security Supervisor and Security Guards) at Reserve Bank Staff College (RBSC), Anna Salai, Teynampet, Chennai – 600 018
c. Mode of Tender
e-Procurement System (Online Part I – Pre qualification criteria and Techno-Commercial Bid and Part II – Price Bid through www.mstcecommerce.com/eprochome/rbi)
d. Date of NIT available to parties to download
January 26, 2021 from 11:00 A M
e. Earnest Money Deposit
₹1,29,000/- (Rupees One lakh twenty nine thousand only) from each bidder
f. Pre-Bid Meeting
February 04, 2021 at 11:30 A M at Seminar Hall, RBSC
j. Date of closing of online e-Tender for submission of Techno-Commercial Bid & Price Bid
February 24, 2021 at 02:00 P M
k. Date & time of opening of Tender Part I Date & Time of opening of Part- II (Financial Bid)
February 24, 2021 at 03:00 P M at the Reserve Bank Staff College. (Part – II will be opened on a later date after evaluation of Part – I. Opening of Part – II will be intimated to qualified bidders)
l. Transaction Fee
Payment of Transaction Fee as mentioned in the MSTC portal through MSTC payment gateway through NEFT / RTGS in favour of MSTC LIMITED
m. Address for Communication
The Principal Reserve Bank Staff College 359, Anna Salai, Teynampet Chennai – 600 018 e-mail: principalrbsc@rbi.org.in
Tender document can be downloaded from RBI website – www.rbi.org.in – and www.mstcecommerce.com/eprochome/rbi. Any amendment(s) / corrigendum / clarifications with respect to this tender shall be uploaded on the website / e-portal only. The tenderer should check the above website / e-portal for any Amendment / Corrigendum / Clarification before submitting the bid. The College reserves the right to reject any or all the tenders without assigning any reason thereof.
Chief General Manager/Principal Reserve Bank Staff College 359, Anna Salai, Teynampet Chennai
The amalgamation of Andhra Bank and Corporation Bank with Union Bank came into effect from April 1, 2020.
“With this achievement, the entire IT integration of erstwhile Andhra and Corporation Bank branches with Union Bank of India has been completed,” the lender said in a release.
All customers of erstwhile Andhra Bank and Corporation Bank have been successfully migrated to core banking solution (CBS) of Union Bank. It has also rolled out internet banking, mobile banking, UPI, IMPS, treasury and swift for erstwhile Andhra and Corporation Bank customers.
“We are extremely delighted to achieve complete integration of all branches and delivery channels of erstwhile Andhra Bank and Corporation Bank. It opens huge opportunities for our customers and enhances our capability to offer innovative products and services,” the bank’s managing director and CEO Rajkiran Rai G said in the release.
The entire migration has been completed at record time with least inconvenience to customers i.e. without affecting any change in their account numbers, debit cards or net banking credentials, the bank said.
The current IFSC code and cheques can be used till March 31, 2021. The entire migration has been executed in association with Infosys, EY, and BCG, it said.
The bank’s net interest income (NII) increased 17% y-o-y and 2.4% q-o-q to Rs 4,007 crore.
Private lender Kotak Mahindra Bank’s net profit grew 16% year-on-year (Y-o-Y) to Rs 1,854 crore during the December quarter (Q3FY21) on higher interest income and better asset quality. The lender was able to register a growth in the bottom line despite a 35% y-o-y and 62.5% quarter-on-quarter (q-o-q) jump in the provisions and contingencies to Rs 599 crore. Pre-provision operating profit (PPOP) of the lender surged 29.1% y-o-y to Rs 3,083 crore but declined 6.5% sequentially.
Dipak Gupta, joint managing director, Kotak Mahindra Bank said that the lender was witnessing momentum in the selected pockets. “We need to watch a few segments before pressing the accelerator. At this point of time the foot has moved from the brake to accelerator on the secured products,” Gupta said.
The bank’s net interest income (NII) increased 17% y-o-y and 2.4% q-o-q to Rs 4,007 crore.
The asset quality of the bank showed an improvement in Q3FY21. The gross non-performing assets (NPAs) improved 29 basis points (bps) to 2.26%, compared to 2.55% in the previous quarter. Similarly, net NPAs came down 14 bps to 0.5% from 0.64% in the September quarter. The bank has not classified any NPAs since August 31, 2020, due to the interim order of Supreme Court. The apex court had earlier directed lenders not to recognise fresh NPAs, till further orders in the interest-on-interest case.
“Had the bank classified the borrowers more than 90 days overdue on December 31, 2020, as NPA, GNPA would be 3.27% and net NPA would be 1.24%,” said Jaimin Bhatt, president and group chief financial officer, Kotak Mahindra Bank. The bank has, however, made provision for such advances, he added.
Kotak Mahindra Bank’s Covid-19-related provisions as of December 2020 stood at Rs 1,279 crore. The lender said that a very small number of borrowers opted for one-time restructuring. “Following the resolution framework for Covid-19 announced by Reserve Bank of India (RBI) on August 6, 2020, as at December 2020, the bank has approved, for certain eligible borrowers, one-time restructuring of 0.28% of net advances,” the bank said. The Reserve Bank of India (RBI) had earlier allowed one-time restructuring for borrowers impacted by Covid-19
The net interest margins (NIMs) declined 18 bps y-o-y to 4.51% but remained flat sequentially. Advances during the December quarter were down 1.2% y-o-y at Rs 2.14 lakh crore but reported a 4.5% sequential growth. Deposits grew by 10.8% y-o-y and 1.4% q-o-q to Rs 2.65 lakh crore in the December quarter. The current account-savings account (CASA) ratio as on December 31, 2020, stood at 58.9%, compared to 53.7% as on December 31, 2019. The capital adequacy of the lender remained at 21.5% as on December 31, 2020.
The lender, which is still under the Reserve Bank of India’s PCA framework, had posted a net profit of Rs 30.12 crore for the second quarter.
UCO Bank on Monday reported a Rs 35.44-crore net profit for the third quarter, against a net loss of Rs 960.17 crore for the year-ago period, as provisions for non-performing assets (NPAs) declined 76% year-on-year and the operating profit rose 10%. The lender, which is still under the Reserve Bank of India’s PCA framework, had posted a net profit of Rs 30.12 crore for the second quarter.
The operating profit for the third quarter stood at Rs 1,334.40 crore, compared with Rs 1,210.52 crore for the corresponding period last fiscal. “I am happy to say that this is the highest operating profit of the bank in the last 25 quarters,” MD & CEO AK Goel said after declaring the results.
Net interest income (NII) rose 13.79% y-o-y to Rs 1,407.16 crore, compared to Rs 1,236.59 crore, while non-interest income saw a 16.26% y-o-y growth to Rs 864.38 crore. Total advances stood at Rs 116,797.24 crore at the end of the third quarter, registering a growth of 2.63% y-o-y. As on December 31, 2020, the net interest margin (NIM) stood at 2.87%, up from 2.62% a year ago.
Provisions for NPAs decreased to Rs 393.06 crore for the quarter under review, from Rs 1,645.51 crore in the same quarter of FY20. Gross NPAs in absolute terms fell over 14% quarter-on-quarter to Rs 11,440.47 crore from 13,365.74 crore. On a year-on-year basis, gross NPAs decreased by a whopping 48.32%, from Rs 22,139.65 crore in the December quarter of FY20.
At the end of Q3FY21, the gross NPA ratio stood at 9.80%, which was 182 basis points down quarter-on-quarter from 11.62%. Reported net NPA ratio fell 66 bps sequentially to 2.97%.
The capital adequacy ratio stood at 12.08% and CET-I ratio at 9.01% as on December 31, 2020.
We had set a target for recovery of Rs 5,000 crore in the current financial year.
By Ankur Mishra
Yes Bank is expecting a loan growth of 12% in the next financial year (FY22). In an interview with Ankur Mishra, managing director and chief executive officer Prashant Kumar says the bank is aiming to reach a credit/deposit (CD) ratio of 100% in the current fiscal.Excerpts:
What is your loan growth target for the current financial year?
There is no loan growth target for FY21. However, we are expecting a loan growth of 12% in the next financial year (FY22). In the current fiscal, we are aiming to reach a credit deposit (CD) ratio of 100%. Till December end, the CD ratio was 116%. From the balance sheet management perspective, it is important to reach 100% CD ratio. That, we would be able to achieve by March-end.
What gives you confidence for 12% credit growth in FY22?
For loan growth, there are few things which matter. First one is the available opportunity in the system. The second one is your preparedness. The preparedness comes from the balance sheet side, and competency. So, we are expecting Covid-19 impact to come down, and from the next year opportunities will be there. On the liquidity side also, we are quite comfortable now. We have already built up our teams to take care of the requirement on all the three sides – retail, MSME and corporate. So, we are confident on the credit growth, unless there is some adversity in the environment.
By when do you see advances and deposits at the levels of pre-reconstruction period?
The levels depend on where you would like to compare. The retail deposit build-up takes time. So, it may happen somewhere at the end of the financial year 2022 (FY22). On the loan side, we are a bit cautious on not going for a very aggressive growth. Because, if you go for an aggressive growth, sometimes, you may land in trouble as far as quality is concerned. We will be watching the environment very closely and we would want to grow in line with the market.
Your proforma gross non-performing assets (NPAs) are close to 20%. Do your suspect the asset quality to deteriorate further?
We are at the peak of it. Most of the things have happened because of Covid-19, and now there is an improvement. There are certain indicators for it. Collection efficiency is now at 96%, as against pre-Covid level of 97%. The cheque bounce rate, which was normally at 7-8%, rose to 18% during Covid, and is now at 9%. So, we believe it is at peak and from now on there will be an improvement.
What is your road map for the recovery process?
We had set a target for recovery of Rs 5,000 crore in the current financial year. And, we have already recovered close to Rs 3,000 crore. During the December quarter, we were able to do a cash recovery of Rs 1,512 crore. So, I believe we should be able to achieve our target by the end of the current financial year. In the next financial year, we would want to do better than the current financial year.
What is your strategy for the March quarter?
Our strategy in this financial year was more on recovering bad loans, opening new current account savings account (CASA) and disbursements on the loan side. The disbursement continues to happen. So, we are absolutely on track. We have decided to focus more on retail and MSME (micro, small and medium enterprises) than corporate. In term of deposits, we are adding new customers on the CASA side. The target is to add at least one lakh customers every month. We added 85,000 customers in December.
What is your outlook on net interest margins (NIMs)?
I think for the next financial year (FY22), NIMs should remain in the range of 3-3.25%.
The bank is currently managed by a committee of directors and RBI has given the bank four months to appoint a new head.
Shareholders of Dhanlaxmi Bank has approved appointment of JK Shivan as the next managing director and chief executive officer (CEO) of the bank, highly placed sources in the bank said on Monday. The official result is expected only by Tuesday.
The Reserve Bank of India (RBI) had asked the Dhanlaxmi Bank Board to get shareholders’ approval before appointing JK Shivan as the next MD and CEO of the bank.
The move is considered somewhat unusual since typically, the board appoints the candidate recommended by the regulator as additional director and then seeks the shareholders’ approval at the next AGM.
The Kerala based bank Board had moved a resolution on December 26, as asked by RBI, for shareholders’ approval via electronic voting, for the appointment of the next managing director and CEO the bank
The lender has seen two of its MD and CEO resign before the end of their tenure after losing the confidence of the shareholders. The bank had gone through a bad phase during 2008-2013 and was under the Prompt Corrective Action (PCA) framework of the RBI for some time.
Sunil Gurbaxani was voted out from the post of managing director and CEO of Dhanlaxmi Bank by more than 90 % of the shareholders on October 1, 2020, in the first AGM held after he was appointed in February 2020.
The bank is currently managed by a committee of directors and RBI has given the bank four months to appoint a new head.
Palakkad based Shivan has over 37 years of experience in State Bank of India (SBI) and has handled various areas of functional areas commercial banking.
Welcome to the refurbished site of the Reserve Bank of India.
The two most important features of the site are: One, in addition to the default site, the refurbished site also has all the information bifurcated functionwise; two, a much improved search – well, at least we think so but you be the judge.
With this makeover, we also take a small step into social media. We will now use Twitter (albeit one way) to send out alerts on the announcements we make and YouTube to place in public domain our press conferences, interviews of our top management, events, such as, town halls and of course, some films aimed at consumer literacy.
The site can be accessed through most browsers and devices; it also meets accessibility standards.
Please save the url of the refurbished site in your favourites as we will give up the existing site shortly and register or re-register yourselves for receiving RSS feeds for uninterrupted alerts from the Reserve Bank.
Do feel free to give us your feedback by clicking on the feedback button on the right hand corner of the refurbished site.
Welcome to the refurbished site of the Reserve Bank of India.
The two most important features of the site are: One, in addition to the default site, the refurbished site also has all the information bifurcated functionwise; two, a much improved search – well, at least we think so but you be the judge.
With this makeover, we also take a small step into social media. We will now use Twitter (albeit one way) to send out alerts on the announcements we make and YouTube to place in public domain our press conferences, interviews of our top management, events, such as, town halls and of course, some films aimed at consumer literacy.
The site can be accessed through most browsers and devices; it also meets accessibility standards.
Please save the url of the refurbished site in your favourites as we will give up the existing site shortly and register or re-register yourselves for receiving RSS feeds for uninterrupted alerts from the Reserve Bank.
Do feel free to give us your feedback by clicking on the feedback button on the right hand corner of the refurbished site.
Ahead of the Union Budget 2021, the stock market has been very volatile. The India VIX index was up nearly 4% to 23.25 on Monday. Benchmark equity indices plunged with BSE’s Sensex falling over 500 points dragged by losses in IT and FMCG stocks.
NSE’s Nifty settled 133 points or 0.93% lower at 14,239.
Among major losers for the day was Reliance Industries. The stock traded 4.96% lower at Rs 1,948.00 apiece on BSE, having slumped as much as 5.34% to Rs 1,940.15 earlier on Monday after the conglomerate posted a sharp drop in quarterly revenue from its dominant oil-to-chemicals business.
Markets expected to remain volatile
Markets may remain volatile in this holiday-shortened week amid monthly derivatives expiry, quarterly earnings and the upcoming Union Budget, analysts said.
“Going ahead, markets may continue to remain highly volatile ahead of monthly expiry and Union Budget 2021. The ongoing earnings season which kicked off on a strong note would further add to the volatility. The Fed monetary policy is also due this week,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd, as quoted in a PTI report.
“If the recovery in growth and corporate earnings, currently underway in India, gathers momentum, the markets may further surprise on the upside. But it is important to appreciate that the market is overvalued from the short- term perspective. At high levels, the market is vulnerable to a correction,” VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services had said.
HDFC Securities’ pre-budget picks
As Finance Minister Nirmala Sitharaman is set to present the Union Budget on 1 February, HDFC Securities has shared its five pre-Budget picks.
1. Bharat Electronics Ltd
Buy at LTP (last trading price) and add on dips in the Rs 122-124 band with a target price of Rs 148, the brokerage said.
Time horizon for the bet: 2 quarters
2. Escorts Ltd
Buy at LTP and add on dips in the Rs 1,180-1,190 band with a target price of Rs 1,457.
Time horizon for the bet: 2 quarters
3. HCG
Buy at LTP and add on dips to Rs 145-147 band with a target price of Rs 180.
Time horizon for the bet: 2 quarters
4. Hindustan Petroleum Corp Ltd
Buy at LTP and add on dips in the Rs 208-210 band with a target price of Rs 250.
Time horizon for the bet: 2 quarters
5. JK Cement Ltd
Buy at LTP and add on dips in the Rs 1,940-1,975 band with a target price of Rs 2,400.
Disclaimer
The article is purely informational and is not a solicitation to buy, sell in securities mentioned in the article. Greynium Information Technologies Pvt Ltd, its subsidiaries, associates and the author do not accept culpability for losses and/or damages arising based on information in this article.
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