Author: root

FinMin offers citizens prize money to come up with name, logo for new infra fund body

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The Finance Ministry, in association with mygovIndia, has launched a crowdsourcing initiative to coin a name, suggest a tagline and design a logo for a newly created development financial institution (DFI).

“Name, tagline and logo should represent the intent behind setting up of the DFI and be a clear marker of what it will/can do. It should in effect be like a visual signature, easy to recall and pronounce. Each of the three elements would stand out on its own but would represent, a synergized approach,” reads the government statement on www.mygov.in.

Each category will have three prizes of ₹5 lakh, ₹3 lakh and ₹2 lakh. Entries should be submitted by August 15. “Entries will be evaluated on creativity, vibrancy, ability to connect with the theme, citizens and all stakeholders, should reflect the spirit of New India as we celebrate Azadi Ka Amrut Mahotsava with India@75,” the notification said.

Need to rethink financing and development priorities for enabling sustainable infrastructure: FM

The government has decided to create the DFI exclusively to fund infrastructure such as the proposed ₹111-lakh-crore National Infrastructure Pipeline and more than 7,000 other projects, which require timely and large funding.

Government bets big on infrastructure

According to the notification, the DFI will be a development bank with credibility and a mandate through explicit Government support. It will crowd in, not elbow out, other lenders. It will not only provide credit and credit-plus services but, equally, be an enabler and catalyst for a new ecosystem for infra based on collaboration and partnership. It will prioritise risk mitigation, product innovation, accessing green and ethical funds, and helping develop a vibrant bond market.

It would have the size and ambition to make a difference as well as play a counter-cyclical role, whenever needed. It will lend long term, for achieving financial closure for big-ticket infra projects commensurate with a $5-trillion economy. “The design of the DFI itself is path breaking and bold, representing a decisive break from conventional thinking,” the notification said.

In a tweet, the Finance Ministry said that the setting up of a DFI was announced by Finance Minister Nirmala Sitharaman in Budget 2021-22. Both Houses of Parliament passed the National Bank for Financing Infrastructure and Development (NaBFID) Bill 2021 in March, which was later assented to by the President.

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Pencilton raises $330K in a pre-seed round by Jupiter, others, BFSI News, ET BFSI

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HYDERABAD: Pencilton, a teen-focused fintech company, has announced raising $330K in a pre-seed round led by Jupiter (registered as Amica Financial Technologies Pvt. Ltd). The round also saw participation from Nilesh Patel and Prashant Singh (Founders, LeadSquared), Ashish Sharma (MD, Innoven Capital), Abhishek Goyal (Founder of Tracxn), Himanshu Sharma (Founder, Aspiring Minds), Kunal Sinha (Founder, GlowRoad), Vignesh Ramanujam (Partner, Spoonfeed) and angel investor Tirumalareddy Karri.

Pencilton offers a debit card, PencilCard, to teenagers and students to help them manage their expenses while teaching them the basics of money management. An upgrade is expected to its debit card in a few weeks that works with the Pencilton app to enable financial inclusion and digital financial literacy for teenagers. With the new funding, the company aims at product enhancement by building industry-leading backend systems for card issuance, management, and further launching of upgraded products. The company was founded by Vishwajit Pureti, Ashish Singh, Pallavi Tipparaju, and Viraj Gadde in 2020.

In a statement, Vishwajit Pureti said, “This round is important as it serves as a vehicle for us to have some of the best minds from the fintech and startup ecosystem, join us on our mission. We are going to announce many industry-leading initiatives that will help bring the best of fintech tools and digital financial literacy to students across India.”

The company has recently introduced the PencilCard, a RuPay debit card for teens across India that can be activated and managed via the Pencilton app. Teens can use the debit card to manage, receive and spend their pocket money through the help of the app. In addition, parents can also use the app to give pocket money, setting parental controls such as the spend limits, approval of money requests, etc.

Pencilton chose the RuPay card platform as it is a product built in India and line with the Government’s ‘Make in India’ policy. It also allows Pencilton to work closely with NPCI to innovate on various aspects of the fintech ecosystem that will soon help bring some never-before-seen features of fintech, not just in India but the whole world, to the fingertips of the next generation.

“The teen/pre-teen banking segment is nascent and growing rapidly. We believe that the Pencilton team understands the space and is solving both kids’ and parents’ needs,” said Rahool Gadkari, Director of Product, Jupiter, in a statemet.

Pencilton aspires to educate the younger generation on financial literacy and management and become the most innovative and prominent player in this space.



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ESAF Small Finance Bank files Rs 998 crore IPO papers with Sebi, BFSI News, ET BFSI

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NEW DELHI: ESAF Small Finance Bank has filed preliminary papers with capital markets regulator Sebi to raise Rs 998 crore through an initial public offer (IPO).

The Rs 997.78-crore public issue comprises fresh issue of equity shares worth Rs 800 crore and an offer for sale of Rs 197.78 crore by existing selling shareholders, the draft red herring prospectus (DRHP) filed with Sebi showed.

Under the offer for sale, promoter will be selling shares worth Rs 150 crore, PNB MetLife would be offloading shares to the tune of Rs 21.33 crore, Bajaj Allianz Life will offer shares of Rs 17.46 crore, PI Ventures will sell Rs 8.73 crore worth shares and John Chakola will offer shares worth Rs 26 lakh.

The bank may consider a pre-IPO placement of equity shares for an aggregate amount up to Rs 300 crore. If the pre-IPO placement is undertaken, the amount raised from such placement will be reduced from the fresh issue.

Proceeds from the fresh issue will be used to augment the bank’s Tier – I capital base to meet future capital requirements.

ESAF Small Finance Bank is one of the leading small finance banks in India in terms of client base size, yield on advances, net interest margin, assets under management compound annual growth rate (CAGR), total deposit CAGR, loan portfolio concentration in rural and semi-urban areas and ratio of micro loan advances to gross advances.

As at May 31, 2021, the small finance bank had over 4.68 million customers in 21 states and two union territories.

Axis Capital, Edelweiss Financial Services, ICICI Securities and IIFL Securities have been appointed as merchant bankers to advise the bank on the IPO.

The equity shares of the bank will be listed on BSE and NSE.



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2 Stocks To Accumulate With Potential Upside To Outperform Market, Says KRChoksey

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2 Stocks To Accumulate With Potential Upside To Outperform Market, Says KRChoksey

CMP Target Potential Upside Recommendation Sector
Bajaj Auto Rs 3,836 4,352 13.4% ACCUMULATE Automobile
UltraTech Cement Rs7,490 8,128 8.5% ACCUMULATE Cement

UltraTech Cement

UltraTech Cement

Cement prices have been steady so far in July, owing to the rainfall, which will either keep prices stable or cause them to fall somewhat. In most of the regions, the situation has remained constant. The company witnessed a 6-8 percent increase in regional prices in Q1FY22. In Q1FY22, prices in the East/South were up 10%, the West was up roughly 7%-10%, and the North/Central was up 3-6%.

Ultratech Result Highlights of Q1FY22

  • Ultratech reported a 54.2 percent YoY increase in sales to INR 1,18,298 million, which was generally in line (0.7 percent below) with our forecast.
  • Higher utilisation, sustained demand, and a low base impact drove a 47 percent YoY increase in cement sales volume to 21.5 MT from 14.7 MT in Q1FY21.
  • Capacity utilisation in Q1FY22 was 73 percent, up from 46 percent in Q1FY21.
  • PAT increased by 114.4 percent YoY to INR 17,026 million, however it fell by 4.1 percent on a quarter-on-quarter basis.

KR Choksey expects the stock of UltraTech Cement to hit at least Rs 8,128 as against the current market price of Rs 7490.

UltraTech Cement

UltraTech Cement

“The stock price of Ultratech has rallied ~10% since our last update and is currently trading at FY22E/FY23E EV/EBITDA of 17.7/16.3x. We are optimistic about the company’s growth prospects and apply an EV/EBITDA multiple of 17.5x to FY23E EBITDA, which yields a target price of INR 8,128 per share (earlier INR 7,415 per share); a potential upside of 8.5% over the CMP. Accordingly, we reiterate an ACCUMULATE rating on the shares of UltraTech Cement Ltd,” the research report said.

We remain positive on Ultratech’s growth prospects given its robust financial performance and market leadership position. We expect Ultratech Cement to post a CAGR of 7.6%, 8.9%, and 16.6% in Revenue, EBITDA, and PAT respectively over FY21-23E on the back of a robust demand environment in the country, it added.

CMP: Rs 7,490

Target: Rs 8,128

Potential Upside 8.5%

Market Cap (INR Mn): INR 2,161,687

Recommendation: ACCUMULATE

Sector: Cement.

Bajaj Auto

Bajaj Auto

Bajaj Auto‘s main focus will be on gaining market share, and the company is optimistic about the demand outlook in the international market. Due to the present pandemic situation in India, the company may suffer supply difficulties. Premiumization of sectors will be another focal area for Bajaj Auto in the future.

Result highlights of Q1FY22

  • Bajaj Auto recorded total revenue from operations of INR 73,860 Mn in Q1FY22, up 140 percent year on year (-14 percent QoQ).
  • Domestic volumes increased by 84.2 percent year over year to 342,552 units, while export volumes increased by 160 percent to 556,753 units.
  • Due to a strong increase in input costs in the quarter, EBITDA margin fell 270 basis points QoQ to 15.5 percent (+165 basis points YoY), and EBTIDA for the quarter was INR 11,177 Mn (+174 percent YoY).
  • Net Profit for the quarter was INR 11,699 Mn (+122 percent YoY), with NPM at 16.2 percent (-168 bps YoY).

KR Choksey expects the stock of Bajaj Auto to hit at least Rs 4,352 as against the current market price of Rs 3836.

Bajaj Auto

Bajaj Auto

“We retain our positive stance on Bajaj Auto based on its resilient performance especially in the export markets and the company’s ability to control costs amid demand slowdown. We continue to assign a P/E multiple of 24x on FY23E EPS of INR 180 per share and maintain our Target Price of INR 4,352 per share; implying an upside potential of 13.4% over the CMP. Accordingly, we reiterate an “ACCUMULATE” recommendation on the shares of Bajaj Auto Ltd,” KRChoksey said in its research report.

Taking cues from the Q1FY22 performance, both the domestic and export market is expected to witness a slower recovery due to the piling up of inventory. Margins were under pressure due to an increase in raw material prices. On the other hand, the domestic demand continued to remain under pressure. However, the earnings of the company have witnessed a CAGR growth of 4% from EPS INR 140 in FY16 to EPS INR 168 in FY21, the fall in earnings was mainly due to disruption in production and sales amid nationwide lockdown, it added further.

CMP: Rs 3,836

Target: Rs 4,352

Potential Upside 13.4%

Market Cap (INR Mn): INR 1,110,023

Recommendation: ACCUMULATE

Sector: Automobile

Disclaimer

Disclaimer

The stock recommendations are picked from the brokerage report of KRChoksey. However, neither the author, nor the brokerage, nor Greynium Information Technologies should be held responsible for decisions taken and losses incurred based on the above article. Investors should understand that there are inherent risks involved when investing in the markets. They should hence exercise due caution.



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To strengthen TReDS, Factoring Amendment Bill passed by Lok Sabha, BFSI News, ET BFSI

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The Factoring Amendment Bill which was introduced in the Lok Sabha last year was passed on Monday. The Bill seeks to amend the Act of 2011 and widen the scope of entities which can engage in factoring business.

This Bill is aimed at increasing the traction on the Trade Receivables Discounting System (TReDS) platform introduced by the Reserve Bank of India in 2014.

The Bill will also help the micro, small and medium enterprises (MSME) which are plagued by the issues of delayed payments. Finance minister Nirmala Sitharaman said that the government had also accepted the recommendations by the Standing Committee which had looked into the Bill last year.

Commenting about the Bill, Ram Iyer, Founder & CEO, Vayana Network, said, “This has been a much-needed intervention. Allowing non-NBFC factors and other entities to undertake factoring is expected to increase the supply of funds available to SMEs. This may result in bringing down the cost of funds and enable greater access to the credit-starved small businesses, ensuring timely payments against their receivables. The recommendations of the Standing Committee are expected to increase the traction of TReDS platforms. Steps like integration with GSTN, mandatory listing of the government dues and direct filing of charges will improve the operational efficiency and acceptability of the platforms among the financiers.”

TReDS, which was introduced to improve liquidity with small businesses, has not been able to take off properly. According to the data accessed by ET, of the total transaction volume of about Rs 36,000 crore conducted by the three TReDS exchanges in India so far, only Rs 2,700 crore was from central public-sector enterprises (CPSEs).

TReDS works as an exchange between lenders, buyers and MSMEs. Lenders bid to settle the claims of an MSME supplier upon the acknowledgment of the invoice by the buyer. The buyer then repays the lender, which is usually a bank, after a predetermined period.

There is no collateral involved, and lenders consider the buyer’s credit rating while paying the supplier. RXIL, Invoicemart and M1Xchange are the three TReDS platforms.

(With inputs from ET Bureau)



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To strengthen TReDS, Factoring Amendment Bill passed by Lok Sabha, BFSI News, ET BFSI

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The Factoring Amendment Bill which was introduced in the Lok Sabha last year was passed on Monday. The Bill seeks to amend the Act of 2011 and widen the scope of entities which can engage in factoring business.

This Bill is aimed at increasing the traction on the Trade Receivables Discounting System (TReDS) platform introduced by the Reserve Bank of India in 2014.

The Bill will also help the micro, small and medium enterprises (MSME) which are plagued by the issues of delayed payments. Finance minister Nirmala Sitharaman said that the government had also accepted the recommendations by the Standing Committee which had looked into the Bill last year.

Commenting about the Bill, Ram Iyer, Founder & CEO, Vayana Network, said, “This has been a much-needed intervention. Allowing non-NBFC factors and other entities to undertake factoring is expected to increase the supply of funds available to SMEs. This may result in bringing down the cost of funds and enable greater access to the credit-starved small businesses, ensuring timely payments against their receivables. The recommendations of the Standing Committee are expected to increase the traction of TReDS platforms. Steps like integration with GSTN, mandatory listing of the government dues and direct filing of charges will improve the operational efficiency and acceptability of the platforms among the financiers.”

TReDS, which was introduced to improve liquidity with small businesses, has not been able to take off properly. According to the data accessed by ET, of the total transaction volume of about Rs 36,000 crore conducted by the three TReDS exchanges in India so far, only Rs 2,700 crore was from central public-sector enterprises (CPSEs).

TReDS works as an exchange between lenders, buyers and MSMEs. Lenders bid to settle the claims of an MSME supplier upon the acknowledgment of the invoice by the buyer. The buyer then repays the lender, which is usually a bank, after a predetermined period.

There is no collateral involved, and lenders consider the buyer’s credit rating while paying the supplier. RXIL, Invoicemart and M1Xchange are the three TReDS platforms.

(With inputs from ET Bureau)



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MSME bankruptcies involving less than Rs 1 crore put on fast-track with pre-pack law, BFSI News, ET BFSI

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The government has introduced a bill in the Lok Sabha to amend the insolvency law and provide for a pre-packaged resolution process for stressed MSMEs.

The proposed amendments would enable the government to notify the threshold of a default not exceeding Rs 1 crore for initiation of pre-packaged resolution process. The government has already prescribed the threshold of Rs 10 lakh for this purpose.

The Insolvency and Bankruptcy Code (Amendment) Bill, 2021 will replace the ordinance that was promulgated on April 4 as part of efforts to provide relief for MSMEs adversely impacted by the pandemic.

The bill seeks to have a new chapter in the Code to facilitate pre-packaged insolvency resolution process for corporate persons that are Micro, Small and Medium Enterprises (MSMEs).

The process

Generally, under a pre-packaged process, main stakeholders such as creditors and shareholders come together to identify a prospective buyer and negotiate a resolution plan before approaching the National Company Law Tribunal (NCLT). All resolution plans under IBC need to be approved by NCLT.

The bill seeks to specify a minimum threshold of not more than Rs 1 crore for initiating pre-packaged insolvency resolution process as well as provisions for disposal of simultaneous applications for initiation of insolvency resolution process and pre-packaged insolvency resolution process, pending against the same corporate debtor.

There would be a penalty for fraudulent or malicious initiation of pre-packaged insolvency resolution process or with intent to defraud persons, and for fraudulent management of the corporate debtor during the process.

Further, punishment would be meted out for offences related to pre-packaged insolvency resolution process.

“Unlike the CIR Process where the control is transferred to the Interim Resolution Professional, in this process, the control remains with the existing management and only in case of fraud, the NCLT may shift control to Resolution Professional. The process is intended to be swift and efficient.

The timeline for completion of the pre-packaged insolvency resolution process is shorter than the normal Corporate Insolvency Resolution (CIR) period.

What experts say

Rajiv Chandak, Partner at Deloitte India, said the bill covers provisions pertaining to pre-packaged insolvency process for MSME units.

“Lenders are awaiting similar provisions for larger corporates. Pre-packaged insolvency can help in resolving stress early and cut resolution time for corporates staring at default,” he added.

Anoop Rawat, Partner, Insolvency & Bankruptcy at Shardul Amarchand Mangaldas & Co said the amendments are in line with the IBC ordinance that was promulgated on April 4, 2021.

“It gives better visibility of resolution as compared to a normal CIR process since a base resolution process need to be in place prior to initiation of the process at NCLT,” Rawat noted.

Government measures

In the wake of the pandemic, the government has taken various steps including increasing the minimum amount of default to Rs 1 crore for initiating a corporate insolvency resolution process.

Besides, the government had suspended fresh filing of corporate insolvency resolution applications in respect of defaults arising during the period between March 25, 2020, and March 24, 2021.

To deal with emerging market realities, the Code has been amended on earlier occasions also.

The Code, which came into force in 2016, was enacted to consolidate and amend the laws relating to reorganisation and insolvency resolution of corporate persons, partnership firms and individuals.



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3 Stocks That Sharekhan Has A Buy Call For Robust Returns

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Buy Tata Motors with a price target of Rs 430

Sharekhan expects the stock of Tata Motors to hit at least Rs 430 as against the current market price of Rs 291.30.

The brokerage believes that the Q1FY22 results were weak, as indicated by the management earlier this month, due to chips shortage impacting JLR business and lockdown restrictions, impacting commercial vehicles and passenger vehicles businesses.

Sharekhan sees a number of positives for Tata Motors. According to the broking firm, the JLR management maintained medium to long-term targets and continued to execute reimagine strategy. Commercial vehicles and passenger vehicles sales to recover in India, led by expected normalisation of economic activities and preference for personal mobility amid COVID-19.

“We expect all-round improvement in Tata Motors’ business and expect earnings to turn positive in FY2022 and rise by 69.1% in FY2023E, driven by a 16.7% Compounded Annual Growth Rate in revenue during FY2021-FY2023E and a 130 bps rise in EBITDA margin,” the brokerage has said. Sharekhan says to buy the stock with a target price of Rs 430 in the future.

Buy JSW Steel for a price target of Rs 850: Sharekhan

Buy JSW Steel for a price target of Rs 850: Sharekhan

The broking firm has set a price target of Rs 850 on the stock of JSW Steel as against the current market price of Rs 710.

The company sees many positives on the stock, including a noticeable decline in net debt to EBITDA 1.9x in Q1FY2022 versus 2.6x in Q4FY202

The firm has also said that the sharp 22% beat in consolidated EBITDA margin at Rs. 29,608/tonne (up 42% q-o-q) were led by strong realisations. Financial performance of overseas subsidiaries improved as they clocked positive EBITDA of Rs. 282 crore (versus an EBITDA loss of Rs.322 crore in Q4FY2021).

“We believe that JSW Steel is one of best bets in the Indian steel space given strong volume/margin led earnings growth outlook and potential long-term value creation from recently acquired Bhushan Power and Steel Ltd. Hence, we maintain our Buy rating on JSW Steel with a revised price target of Rs. 850. At the current market price, the stock is trading at 8x its FY2022E EV/EBITDA and 6.9x FY2023E EV/EBITDA,” the brokerage firm has said.

Persistent Systems

Persistent Systems

Sharekhan also has a buy call on the shares of Persistent Systems a mid level IT company. The brokerage has set a target of Rs 3,600 on the stock as against the current market price of Rs 3,161.

According to the broking firm, there was a strong beat in revenue growth. “Q1FY2022 witnessed higher billing rates, healthy deal TCVs, aggressive employee addition and strong client additions. EBIT margin improved 39 bps q-o-q to 13.5%,” the brokerage firm has said.

According to Sharekhan strong US Dollar revenue growth of 27.3% y-o-y, robust client additions (four clients in the over $5 mn category on q-o-q) and Strong growth in healthcare & life science (up 32.5% y-o-y) vertical and India business (up 57.9% y-o-y) were the key positives.

“Given strong earnings growth potential, strong balance sheet and M&A opportunities, we retain a Buy on the stock with a revised target price of Rs. 3,600,” the brokerage has said.

Disclaimer

Disclaimer

The stock recommendations are picked from the brokerage report of Sharekhan. However, neither the author, nor the brokerage, nor Greynium Information Technologies should be held responsible for decisions taken and losses incurred based on the above article. Investors should understand that there are inherent risks involved when investing in the markets. They should hence exercise due caution.



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Equitas board approves merger of holding company with bank

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Both EHL and Equitas Small Finance Bank are listed on the stock exchanges and EHL holds a 81.98 % stake in the bank.

The board of directors of Equitas Small Finance Bank (ESFBL) has approved a scheme of amalgamation of Equitas Holdings (EHL ) with ESFBL. The scheme is awaiting approvals from the Reserve Bank of India and Sebi. EHL is the holding company of the ESFBL.

Upon the scheme’s coming into effect, each of the equity shareholders of EHL would be allotted 226 equity shares of Rs 10 each, credited as fully paid up of ESFBL, in respect of every 100 equity shares.

ESFBL had, in July 10, clarified that the Reserve Bank of India (RBI) had permitted the Chennai-headquartered bank to apply to the banking regulator for the approval of its amalgamation scheme, which would facilitate the merger of promoter entity EHL with the bank.

In accordance with the RBI small finance bank licensing guidelines and the RBI clarification issued on January 1, 2015, a promoter of small finance bank can exit or cease to be a promoter after the mandatory initial lock-in period of five years, depending on the RBI’s regulatory and supervisory comfort and Sebi regulations in this regard at that time.

In the case of ESFB, the said initial promoter lock-in expires on September 4, 2021, and the bank had requested RBI if a scheme of amalgamation of the promoter and holding company (EHL) with the bank, resulting in the exit of the promoter, could be submitted to the RBI for approval, prior to the expiry of the five years.

Both EHL and Equitas Small Finance Bank are listed on the stock exchanges and EHL holds a 81.98 % stake in the bank.

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IndusInd Bank net profit doubles on lower provisions

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The capital adequacy ratio (CAR) stood at 17.57% during the quarter under review, compared to 15.16% as on June 30, 2020.

IndusInd Bank on Tuesday reported a 112% year-on-year (y-o-y) jump in net profit to Rs 975 crore for the quarter ended June 2021, on the back of reduced provisioning and higher other income. Provisions declined 18% YoY to Rs 1,844 crore, but remained flat sequentially. The lender’s operating profit increased 9.4% YoY to Rs 3,130 crore as the net interest income (NII) grew 8% YoY to Rs 3,564 crore. Other income increased 18% YoY to Rs 1,781 crore.

The net interest margins (NIM) declined 22 basis point (bps) YoY and seven bps quarter on quarter (QoQ) to 4.06%.
MD and CEO Sumant Kathpalia said, “The economy once again showed resilience with higher activity levels compared to the first wave, supported by effective fiscal and monetary support. The first few weeks of July are giving us confidence that collection efficiency is returning as clients are paying back in time.” The collection efficiency fell in April and May, but quickly picked up in June to 96%, he added.

The lender’s asset quality worsened during the June quarter. Gross non-performing assets (NPAs) ratio increased 21 basis points to 2.88%, compared to gross NPAs of 2.67% in the previous quarter. Similarly, net NPAs ratio increased 15 basis points to 0.84% from 0.69% in the March quarter. In the quarter ended June 30, the bank added Rs 2,762 crore worth bad loans, owing to collection issues during the quarter. Of this, Rs 2,342 crore came from the consumer finance book.

“The bank has followed a conservative provisioning approach with net NPA of 0.84% and a surplus provision of Rs 2,050 crore outside this for contingencies if any,” Kathpalia said. The lender has strengthened its balance sheet by increasing provision coverage ratio (PCR) to 72% in June 2021 from 67% in June 2020.

Non-interest income got a boost from core-fee income, which increased 78% YoY to Rs 1,214 crore. Operating expenses, however, grew 14% YoY to Rs 2,166 crore in the June quarter, as against Rs 1,902 crore for the corresponding quarter of the previous year.

Advances grew 6% YoY to Rs 2.1 lakh crore, but remained flat sequentially. The bank was cautious in loan growth, given the challenging operating environment, Kathpalia said. Corporate advances, however, rose 10% YoY to Rs 92,407 crore. “We’re seeing a lot of demand from large corporate borrowers. The only issue there is price. Still, we will manage to either be at industry growth levels, or might exceed it in corporate lending,” Kathpalia said, adding the bank may report credit growth of 16-18% for the ongoing fiscal.

Deposits grew 26% YoY and 4% QoQ to Rs 2.7 lakh crore. Current account savings account (CASA) deposits increased to Rs 1,12,349 crore with current account deposits at Rs 32,422 crore and saving account deposits at Rs 79,927 crore. CASA deposits comprised 42% of total deposits as of June 30, 2021, compared to 40% during Q1FY21.The capital adequacy ratio (CAR) stood at 17.57% during the quarter under review, compared to 15.16% as on June 30, 2020.

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