Month: July 2021

Buy This Pharma Stock For 20% Gains, “All Is Well” Says This Brokerage

Personal Finance

[ad_1]

Read More/Less


Buy, the stock for an upside target of Rs 5,755

Emkay Global has a buy on the stock with a price target of Rs 5,755, which is almost 20% higher than the current market price of Rs 4,733.

According to Emkay Global, the management has guided for a meaningful profitability improvement from the second quarter of FY 2021-22 and also reiterated its long-term EBITDA guidance of 25%. “While higher SG&A expenses are expected to continue, increased investment in the branded markets will be more than offset by higher growth,” the brokerage has said.

The management of the company has also indicated that profitability will improve meaningfully from second quarter of FY 2021-22, driven by the ramp-up of recently launched products, higher growth in the branded markets and an increase in active pharmaceutical ingredients scale. According to Emkay Global, the management also reiterated its long-term EBITDA margin guidance of 25%.

Dr Reddy's: Long term value of the stock remains attractive

Dr Reddy’s: Long term value of the stock remains attractive

Emkay Global says that it continues to remain positive on the company as it believes Dr Reddy’s Labs has good US pipeline visibility. “In addition, the company’s steadfast focus on the India business continues and should drive 220 basis points growth outperformance relative to the India pharma market, along with margin expansion, as the sales force remains stable. The company’s strategy of leveraging the US portfolio for Europe and ROW is expected to drive growth and margin accretion in the medium term,” the brokerage has said.

The stock is trading at an attractive valuation of 24 times 1-year forward P/E vs. the historical average of 26 times, the brokerage has noted. “Our target price of Rs 5,755 represents a P/E of 21 times on FY24E core EPS (Rs246) and we have a buy on the stock,” the brokerage says. The stock of Dr Reddy’s was last seen trading at Rs 4744 on the BSE. The stock had plunged 10% earlier this week post the quarterly numbers that were declared, which were below street estimates. In fact, as we write the stock is also lower than the current market price mentioned in the brokerage report.

Disclaimer

Disclaimer

The stock recommendation mentioned above is from the report of Emkay Global. However, neither the author, nor Greynium Information Technologies Pvt Ltd would be responsible for the losses incurred based on a decision from the article. Investors are advised caution given that the Indian stock markets have rallied significantly from the lows of last year. Only investors who have the appetite to take risk should buy.



[ad_2]

CLICK HERE TO APPLY

Leave a comment

Top green energy banker sees $150 billion in India deals by 2030

Banking & Finance

[ad_1]

Read More/Less


For international investors seeking a piece of India’s renewables boom — and the bankers who sit across the table with them — all roads go through the country’s domestic energy players.

That’s the message from Bank of America Corp.’s Gaurav Singhal, who leads the busiest team in India’s green energy M&A sector in the past 12 months, according to data compiled by Bloomberg. The biggest of the deals saw the US bank advising SoftBank Group Corp on selling its renewables business in India to Adani Green Energy at an enterprise value of $3.5 billion earlier this year.

The green energy arm of local tycoon Gautam Adani’s empire announced the deal in May, following reports that negotiations with the Canada Pension Plan Investment Board had fallen apart.

Adani’s group was a late entrant in the SB Energy deal, though they were aware of it, Singhal said. “The group had many advantages, from being a local player to the fact that some of the SB Energy assets were next door to their own plants.”

The deal helped make India the most active market in the world for renewables M&A in the first six months of 2021 according to BloombergNEF, and Adani and his fellow billionaire, Mukesh Ambani, have unveiled ambitious plans in the sector.

Interest by foreign players

Foreign buyers will undoubtedly continue to compete for assets; Singhal expects more than $150 billion in equity investment into the sector by 2030. Yet most strategic investors from overseas are seeking to back local entrepreneurs, he said.

“Some of the issues of dealing with the Federal government can be handled by only the local partners,” he said. “Foreign investors cannot take that call solo.”

Singhal will soon be making that pitch in person. Bank of America is moving its top renewable energy investment banker in India to New York, as it tries to grab a bigger share of what he estimates is the roughly $500 billion needed to meet the country’s green energy targets.

He’ll bring with him a slew of roles on recent cross-border deals. Global Power Synergy Pcl, the listed power unit of Thailand’s PTT Group, purchased a $453 million stake in local company Avaada Energy earlier this month. In September, Japan’s Orix Corp agreed to buy a roughly 20 per cent stake in Greenko Energy Holdings for $980 million.

“The decade I spent on this sector, which wasn’t considered hot, initially gave BofA and me a first-mover advantage,” he said.

Wall Street is a long way from Agra, the northern town where two decades ago, Singhal used to have to line up for about two hours every month to pay the bill for electricity – which was frequently interrupted. Like Singhal, who has been based in Mumbai, India’s energy sector has moved on. Coal’s market share fell in 2020, the second year in a row, as wind and solar projects become more cost-efficient and the technology improves.

The Indian green bond market is expanding rapidly this year with a total of seven issues denominated in foreign currency. Sales jumped to an all-time high of $4.1 billion this year to date, data compiled by Bloomberg show. Despite its presence in renewables M&A, Bank of America is a laggard in arranging green bonds from Indian issuers, the data show. The US lender will work on “filling that gap” in the business, Singhal said.

Local regulations in the power sector are still in flux, making it hard for overseas investors to navigate, and several of them have left. Foreign firms will have a hard time achieving scale by taking part in fiercely fought bidding wars on tariffs, Singhal said. He expects overseas institutional players to invest only in larger companies with the prowess to absorb capital and demonstrate growth, which will quicken the consolidation, he said.

Singhal will start at the New York office next month, and will continue to oversee the bank’s renewable deals in India from there.

One area where Singhal wasn’t ahead of the curve? His car, which is still gasoline-powered. When he moves to New York, he will go electric, he said.

[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , ,

RBI imposes Rs 5 crore penalty on Axis Bank, BFSI News, ET BFSI

Banking & Finance

[ad_1]

Read More/Less


The Reserve Bank of India (RBI) on Tuesday said it has imposed a penalty of Rs 5 crore on Axis Bank for contravention of certain provisions of directions issued by the RBI, including on cybersecurity framework. The penalty has been imposed for “contravention of/non-compliance” with certain provisions of directions issued by the RBI. They include ‘Strengthening the Controls of Payment Ecosystem between Sponsor Banks and SCBs/UCBs as a Corporate Customer’; ‘Cyber Security Framework in Banks’; and ‘Reserve Bank of India (Financial Services provided by Banks) Directions, 2016′.

They also include ‘Financial Inclusion-Access to Banking Services-Basic Savings Bank Deposit Account’; and ‘Frauds-Classification and Reporting’.

The RBI said the statutory inspections for supervisory evaluation (ISE) of the bank were conducted with reference to its financial position as on March 31, 2017, (ISE 2017), March 31, 2018, (ISE 2018), and March 31, 2019 (ISE 2019).

The contravention of/ non-compliance with the directions has been revealed by – the examination of the Risk Assessment Reports pertaining to ISE 2017, ISE 2018 and ISE 2019; the report of scrutiny carried out by RBI in the backdrop of the incident relating to a fraud and related correspondence thereto; and the incident report submitted by the bank in June 2020 related to a few suspected transactions and related correspondence.

Notices were issued to the bank advising it to show cause as to why penalty should not be imposed on it for its failure to comply with the directions.

After considering the bank’s replies, oral submissions, and examination of additional submissions made by the bank, the RBI came to the conclusion that the charges of non-compliance with/contravention of the directions were substantiated and warranted imposition of monetary penalty, the central bank said.

The RBI, however, added the imposition of penalty is based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.

Meanwhile, the RBI has also imposed a penalty of Rs 5 lakh on Alibag Co-operative Urban Bank Limited, Raigad, and Rs 1 lakh on The Mahabaleshwar Urban Cooperative Bank Limited, Mahabaleshwar, for deficiencies of regulatory compliance.



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , , ,

Heavy rains shut 1,200 ATMs in five districts in Maharashtra, derail banking ops, BFSI News, ET BFSI

Banking & Finance

[ad_1]

Read More/Less


Heavy rains that wreaked havoc in Maharashtra causing deaths and destruction of property have badly hit operations of banks in the affected districts.

Several bank branches and ATMs in the rain-hit areas have been submerged.

According to the information ETBFSI received from various sources, more than 1,200 ATMs are down in the five districts of Maharashtra — Ratnagiri, Raigad, Sindhudurg, Kolhapur and Satara. There are about 1,300 ATMs in these districts.

“Many branches and ATMs are impacted. As a result, there is an unavailability of currency. Roads are damaged so vehicle movement is also restricted. Also, a major challenge is that electricity is not yet restored in many parts,” a person who works with the company which refills cash into ATMs, said on the condition of anonymity.

Apart from the above regions, branches and ATMs in Sangli, Pune and Thane districts have also been affected.

The ATMs restoration may take some time as the rains are yet to recede.

“Once the power is restored there are high chances that many ATMs will have to be recalibrated if there is no major damage. But my sense is that around 300 ATMs will remain down for a long time since they were submerged during the flood,” said the person quoted above.

Maharashtra floods

Buses submerged in flood waters in Chiplun (PTI)

The intensity of rains was so high that several bus depots, main roads, and houses were submerged in floodwater.

According to the state government, about 210 people have lost their lives and 4,34,185 people have been evacuated from the flood-affected areas. Also, more than 1,000 villages have been affected and 58,722 animals killed due to incessant rains.

According to local administration, around 5,000 residents were stranded in Chiplun even as a red alert has been issued in the district along with adjoining areas due to the rains.

Chief Minister Uddhav Thackeray and Governor Bhagat Singh Koshyari have toured the flood-hit districts. Relief from the various departments of government, social workers and NGOs is reaching the affected areas but the damage is huge.



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , , ,

Fed notes improving economy, a step toward easing support

Banking & Finance

[ad_1]

Read More/Less


The Federal Reserve said Wednesday that the US economy is strengthening and making progress on the Fed’s employment and inflation goals, a small step toward dialling back its ultra-low-interest rate policies.

The statement the Fed issued after its latest policy meeting said that ongoing vaccinations were helping the economy. But it dropped a sentence it had included after its previous meeting that said those vaccinations have reduced the spread of Covid-19.

That was the only reference to the delta variant that has caused a spike in Covid cases in several hotspots in the United States and many other countries.

The central bank said it’s keeping its benchmark short-term rate pegged at nearly zero, where it has remained since the pandemic tore through the economy in March 2020. The Fed is also buying $120 billion in Treasury and mortgage bonds each month — purchases intended to lower rates on longer-term consumer and business loans to spur more borrowing and spending.

The Fed’s latest policy statement comes as the economy sustains a strong recovery from the pandemic recession, with solid hiring and spending. But it also coincides with uncomfortably high inflation and concerns about the spread of the delta variant.

Key indicators

The economy’s widespread improvement is a key reason why Chair Jerome Powell and other Fed policymakers are believed to be moving closer toward pulling back their economic support. Consumer prices also jumped 5.4 per cent in June from a year ago, the biggest increase in 13 years. And a separate inflation gauge the Fed prefers has risen 3.9 per cent in the past year.

Last month’s inflation surge marked a fourth straight month of unexpectedly large price increases, heightening fears that higher costs will erode the value of recent pay raises and undermine the economic recovery.

The main concern is that the Fed will end up responding too late and too aggressively to high inflation by quickly jacking up interest rates and potentially causing another recession. Earlier this month, Republicans in Congress peppered Powell with questions about inflation.

After a period of broad agreement during the pandemic crisis, the Fed’s policymakers appear divided over how soon to start reducing — or “tapering,” in Fed parlance — the monthly bond purchases. Several regional Fed bank presidents support tapering soon, including James Bullard of the St. Louis Fed, Patrick Harker of the Philadelphia Fed and Robert Kaplan of the Dallas Fed.

But Powell has said that the central bank wants to see “substantial further progress” toward its goals of maximum employment and price stability before it would consider reducing the bond purchases.

Inflation

To make up for years of inflation remaining below 2 per cent, the Fed wants inflation to moderately exceed its 2 per cent average inflation target and to show signs of remaining above that level for an unspecified time.

In recent months, as consumer demand has exceeded the supply of goods and services in some industries, inflation — led by sharp price increases for things like used and new cars, hotel rooms and airline tickets —has topped 2 per cent.

It’s not yet clear how the highly contagious and fast-spreading delta variant of the coronavirus might affect the U.S. or global economies or how the job market will fare in coming months. Hiring could accelerate in September as schools reopen, more parents can take jobs and expanded unemployment aid programs expire.

The bond market is signalling little concern about future inflation, with the yield on the 10-year Treasury note has fallen by nearly a half-percentage point since the spring, to about 1.26 per cent. This also gives the Fed more time to consider its options.

Powell has said the Fed will communicate its intention to taper “well in advance” of doing so. Many economists think that signal will occur in late August or September.

[ad_2]

CLICK HERE TO APPLY

Leave a comment , , ,

3 Stocks To Buy For Solid Returns In One Year, Says ICICI Securities

Personal Finance

[ad_1]

Read More/Less


Sanofi India

Sanofi provides medications for diabetes (insulins and orals), cardiology, thrombosis, anti-infective, CNS, allergy, vitamins, minerals, and supplements, among other therapies.

Lantus, Allegra, and Combiflam are among India’s top 100 pharmaceutical brands.

Sanofi is one of India’s fastest-growing anti-diabetic drug firms.

Sanofi India Q2CY21 Results:

  • Sanofi India announced strong earnings for Q2CY21.
  • Sales increased by 11.1 percent year on year to Rs 789.1 crore.
  • In Q2CY21, EBITDA was Rs 247.1 crore, up 39 percent year on year, with margins of 31.3 percent.
  • PAT was 178.3 crore as a result of this (up 31.9 percent YoY).

Sanofi: Key triggers for future price-performance

Sanofi: Key triggers for future price-performance

“Sanofi’s share price has grown by ~1.7x over the past five years (from ~| 4447 in June 2016 to ~| 7672 levels in June 2021). We remain positive and retain our BUY rating on the stock. We value Sanofi at Rs 9750 i.e. 35x P/E on FY23E EPS,” the ICICI research report said.

Key triggers for future price-performance:

  • Future launches, as well as brand extensions, are planned from the global staple.
  • Access to new compounds from parent, such as the recently introduced anti-diabetic medicine Toujeo Strong balance sheet, solid dividend payout track record, and corporate governance comfort Consistent performance despite price controls on four core brands.

Alternate Stock Idea

Apart from Sanofi, we like Abbott among the MNCs we cover. We continue to believe in Abbott’s excellent growth track in power brands and capacity to launch new products on a consistent basis.

BUY with a target price of Rs 19,235.

TTK Prestige

TTK Prestige

TTK Prestige is India’s top kitchen solutions provider, having successfully transitioned from a pressure cooker manufacturer to a complete line of home and kitchen appliances.

TTK Prestige Q2CY21 Results:

  • With most channels closed in Q1FY22 (save the web channel), revenue fell 36 percent quarter-on-quarter (up 71 percent year-on-year) to | 356.9 crore.
  • Due to price hikes and a stronger product mix, gross margin contraction was limited to 100 basis points (bps) QoQ to 44.6 percent.
  • EBITDA margins shrank by 750 basis points quarter over quarter (up 720 basis points year over year) to 10.9 percent due to negative operating leverage.
  • It still has a significant amount of free cash Rs 490 crore.

TTK: Key triggers for future price-performance

TTK: Key triggers for future price-performance

“TTK has been a consistent compounder with stock price appreciating at 16% CAGR in the last five years. We continue to remain positive and maintain our BUY rating on the stock. We value TTK at Rs 10675 i.e. 44x FY23E EPS, ICICI said in its research report.

Key triggers for future price-performance:

  • The cookware division’s capacity has roughly doubled, and the new factory is slated to be operational in Q2FY22.
  • TTK is also trying to expand its distribution reach in tier-II and tier-III cities in order to capitalise on long-term growth prospects.
  • The company has a robust pipeline of 80 SKUs set to launch in Q2FY22, which will help drive future growth.

CMP: Rs 9186

Target: Rs 10,675

Upside Potemtial: 16%

Target Period: 12 months

Alternate Stock Idea:

Apart from TTK, we also enjoy Butterfly Gandhimati Appliances in our retail coverage.

BUY with a target price of Rs 1000 BGAL has exhibited sustained progress on financial performance metrics, with working capital days and return ratios greatly improved in FY21, it added.

Dixon Technologies

Dixon Technologies

Dixon Technologies, India’s top electronic manufacturing (EMS) provider and one of the government’s PLI scheme’s largest beneficiaries, works in both OEM and original design manufacturing (ODM).

Dixon Technologies Q1FY22 Results:

  • Customer additions and a reduced base helped revenue grow 261 percent YoY to | 1867 crore.
  • The EBITDA margin shrank by 70 basis points to 2.6 percent as a result of a shift in product mix, with larger contributions from lower-margin products.
  • Due to a low base and larger revenues, PAT grew to | 18 crore (9x growth YoY).

Dixon Technologies: Key triggers for future price-performance:

Dixon Technologies: Key triggers for future price-performance:

“Dixon’s share price has grown by ~8x over the past three years (from ~| 566 in July 2018 to ~| 4,380 levels in July 2021). We maintain our BUY rating on the stock Target Price and Valuation: We value Dixon at Rs 5050 i.e. 52x P/E on FY23E EPS, ” ICICI said.

Key triggers for future price-performance:

  • The Indian EMS business is worth $23.5 billion, and Dixon now has a market share of 3-4 percent, leaving room for expansion and growth.
  • The PLI plan is expected to increase domestic mobile output by 5 times. Dixon is one of the biggest winners.
  • Dixon’s future sales will be driven by new segments such as electronics/IT products, telecom devices, LED lighting, and AC components.

Alternate Stock Idea

In addition to Dixon, Havells is a favourite of ours.

A rebound in Lloyds sales and an improvement in margin would be a trigger for Havells’ future revenue growth. BUY with a target price of Rs 1345, it added.

3 Stocks To Buy For Solid Returns In One Year

3 Stocks To Buy For Solid Returns In One Year

Company CMP Target Upside Potential
Sanofi 7960 9750 22%
TTK Prestige 9186 10675 16%
Dixon Technologies Rs 4,380 Rs 5,050 15%

Disclaimer

Disclaimer

Stock investing is risky, and investors must exercise caution. Neither Greynium Information Technologies Pvt Ltd nor the author are liable for any losses caused as a result of decisions made based on the information provided in this article. Investors should exercise prudence while the markets have reached new highs. Please seek professional advice before investing large sums of money.



[ad_2]

CLICK HERE TO APPLY

Leave a comment

Sundaram Home Finance looks to raise Rs 2,500 crore

Banking & Finance

[ad_1]

Read More/Less


On the outlook, Lakshminarayanan said while the longer-term outlook remains strong with the demand for housing being expected to grow in coming years.

Sundaram Home Finance on Wednesday said that to fund its growth plans, the company is looking to raise Rs 2,500 crore this year through a mix of debt instruments and bank funding. The home finance subsidiary of Sundaram Finance on Wednesday registered a net profit of Rs 40.04 crore for Q1 of FY22, against Rs 33.94 crore in the same quarter the previous year, registering an increase of 18%.

The company has reported disbursements of Rs 249crore, compared to Rs 99.98 crore, the company said in a statement.

Lakshminarayanan Duraiswamy, MD, said, “The second wave of Covid led to an uncertainty during the quarter, but the relaxation of lockdown in most states in June led to a partial bounce back in demand in the real estate space towards the end of Q1. The disbursements in Q1 were driven by mid-market segments, especially the salaried class in tier II and III towns.”

On the outlook, Lakshminarayanan said while the longer-term outlook remains strong with the demand for housing being expected to grow in coming years. “We are cautiously optimistic on the growth prospects for the rest of the year and believe that the worst is behind us,” he said.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , ,

Dhanlaxmi Bank Q1 profit rises 11.5%

Banking & Finance

[ad_1]

Read More/Less


The Thrissur-based lender had reported a net profit of Rs 6.09 crore in Q1 of FY21 and Rs 5.28 crore in the preceding quarter.

Dhanlaxmi bank on Wednesday  reported a 11.5% year-on-year (y-o-y)  increase in its first quarter net profit to Rs 6.79 crore largely due to lower provisions for bad loans.The Thrissur-based lender had reported a net profit of Rs 6.09 crore in Q1 of FY21 and Rs 5.28 crore in the preceding quarter.

Provisions and contingencies have been reduced by almost 94.3 % to Rs 2.1 crore ,as against Rs 37.02 crore provided in the year-ago period. Asset quality has worsened with Gross NPA as a percentage of  gross advances was reported at 9.27% for the quarter under review as against 9.23% in the fourth quarter and 6.89% in Q1 of FY21.

Net NPA ratio is reported at 4.58 % compared to 4.76 % reported in the preceding fourth quarter and 2.18 % in the comparable quarter of last fiscal year.

In value terms, gross NPAs increased  to Rs 641.53 crore from Rs 464.45 crore in the year-ago period. The total income  for  Q1 of FY22 is seen lower by 14.2% YoY to Rs 239.02 crore, while the bank’s interest income decreased to Rs 218.10 crore and income from other sources fell to Rs 20.92 crore from Rs 41.97 crore. Provision coverage ratio (including technical write off) as of June 30, 2021, is 75.66 %.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.



[ad_2]

CLICK HERE TO APPLY

Leave a comment , ,

IDBI Bank net up fourfold on recovery of Kingfisher dues, higher other income

Banking & Finance

[ad_1]

Read More/Less


The net interest margin (NIM) of the lender improved 125 basis points (bps) YoY to 4.06%, but declined 108 bps, sequentially.

Private lender IDBI Bank on Wednesday reported a 318% year-on-year (y-o-y) jump in net profit to Rs 603 crore for the quarter ended June 2021, due to higher other income and recovery from Kingfisher Airlines account. The strong bottom-line was reported by the lender despite a 84% y-o-y increase in provisioning to Rs 2,173 crore.

It’s operating profit increased 109% year on year (YoY) to Rs 2,776 crore on the back of 41% y-o-y growth in the net interest income (NII) to Rs 2,506 crore. Total recovery from Kingfisher Airlines during the quarter was Rs 733 crore, of which the interest portion of Rs 455 crore got reflected in NII and the principal amount of Rs 278 crore was shown in other income component by the lender.

Other income increased 63% YoY and 39% quarter on quarter (QoQ) to Rs 1,639 crore, which included commission exchange and brokerage of Rs 404 crore and treasury income Rs 690 crore, among others. The net interest margin (NIM) of the lender improved 125 basis points (bps) YoY to 4.06%, but declined 108 bps, sequentially.

Rakesh Sharma, MD and CEO, IDBI Bank, said, “The bank’s capital and liquidity position is strong and would continue to be the focus area. We are expecting credit growth of 8-10% by the end of March 2022.”

The asset quality remained a mixed bag during the June quarter. The gross non-performing assets (NPAs) ratio of the lender increased 34 basis points to 22.71%, compared to gross NPAs of 22.37% in the previous quarter. However, net NPAs ratio improved 30 basis points to 1.67% from 1.97% in the March quarter. “We are expecting GNPAs to come below 15% due to loans being transferred to National Asset Reconstruction Company (NARCL) and expected loan growth,” Sharma said.

Recovery from technically written off accounts improved to Rs 331 crore during the June quarter, compared to Rs 117 crore in Q1FY21 and Rs 269 crore in Q4FY21.

The lender has strengthened its balance sheet by increasing provision coverage ratio (PCR) by 271 basis points to 97.42% in June 2021. While the cost of deposits reduced by 93 basis points YoY to 3.72%, the cost of funds came down 98 basis points YoY to 3.98%. Similarly, cost to net income ratio decreased by 1923 basis points YoY to 33.02% during the June quarter.

Advances declined 6% YoY and 3% QoQ to Rs 1.56 lakh crore. However, the retail corporate ratio in gross advances improved to 62:38 from 57:43 as on June 2020. As the lender has come out of the Reserve Bank of India’s prompt corrective action framework, the bank aims to grow its base in corporate credit. “We will look to engage with corporates in cautious and calibrated manner,” Sharma said.

Deposits grew 1% YoY to Rs 2.2 lakh crore, but declined 3% sequentially. The share of current account savings account (CASA) in total deposits improved 489 basis points YoY to 52.44%, compared to 47.55 in June 2020. IDBI Bank is working towards realising business synergies with LIC.

For the quarter, the bank has done a premium collection of Rs 32 crore for LIC and earned a fee income of Rs 5 crore, it said. The capital adequacy ratio (CAR) stood at 16.23% during the June quarter, compared to 13.37% as on June 30, 2020.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.



[ad_2]

CLICK HERE TO APPLY

Leave a comment , ,
1 … 9 10 11 12 13 … 110