Category: Personal Finance

3 Stocks To Buy As Suggested By ICICI Securities

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Ultratech Cement- Margins to sustain despite cost escalations

The consolidated EBITDA of UltraTech Cement (UTCEM) in Q2FY22 was Rs27.1 billion (flat YoY), which is in line with consensus projections.

ICICI Direct expects shares to rise from their current market price and has set a target price of Rs 8,880 for the stock.

Target and valuation

“We believe UTCEM with its large pan-India diversified market presence, premium brand positioning, and increased focus on cost efficiencies is better placed to sustain/improve margins in the medium term. We maintain BUY with a revised target price of Rs8,880/share (earlier: Rs8,600) based on 15x Sep’23E EV/E on quarterly rollover. Key risks: Lower demand/pricing,” the brokerage has said.

According to brokerage, volumes grew 6.5 percent year over year but were unchanged quarter over quarter at 20.11 million tonnes, reflecting a 73 percent utilization rate. EBITDA from India operations increased 2% YoY to Rs27.1 billion, with EBITDA/te falling 17% QoQ and 4% YoY to Rs1,321/te. The company is still concentrating on growing its blended cement market share. The cost of adding 19.5 million tonnes of capacity is projected to be Rs68 billion.

L&T Infotech- Consistently consistent!

L&T Infotech- Consistently consistent!

Larsen & Toubro Infotech (LTI) wowed with solid (8% QoQ, CC) and broad-based growth – across verticals, geographies, and service lines – in a traditionally weak quarter.

ICICI Direct expects shares to rise from their current market price and has set a target price of Rs 7,050 for the stock.

Target and valuation

“If LTI is able to achieve such exit-rate in H2, revenue growth in FY23E too will remain robust (24% YoY, USD) even if demand moderates during FY23. Confident commentary and a stable margin outlook despite the impending cost pressures are encouraging. We upgrade our FY22E-FY24E EPS by up to 11% on back of the strong beat and solid outlook. LTI remains our top midcap BUY and we value it at ~40x Sep’23E EPS, the brokerage has said.

According to brokerage, offshore effort climbed 90 basis points QoQ to 83.6 percent, sustaining margins in a post-wage hike quarter. On the strength of the ‘Great Resignation’ theme playing out globally – across economies and industries – management anticipates the offshore effort share to remain elevated. This is also expected to be a major demand driver in the medium run. It’s commendable that you’ve added good clients to crucial buckets.

ACC- Improving margins to narrow valuation gap

ACC- Improving margins to narrow valuation gap

ACC‘s Q3CY21 EBITDA of Rs7.1 billion (up 6% YoY) was in line with consensus expectations. Total cost/te grew 4.6 percent quarter over quarter (6.8% year over year), owing to increasing gasoline, packing materials, and maintenance costs.

ICICI Direct expects shares to rise from their current market price and has set a target price of Rs 2,710 for the stock.

Target and Valuation

“We believe ACC with its large pan-India diversified market presence, premium brand positioning and increased focus on cost efficiencies is better placed to sustain / improve margins in the medium term. We maintain BUY with revised target price of Rs2,710/share (earlier: Rs2,610) based on 11x Sep’23E EV/E on quarterly rollover. Key risks: Lower demand/prices,” the brokerage has said.

According to ICICI Direct, revenues increased 5% year on year to Rs36.5 billion, which was in line with our expectations. RMC revenues increased by 55 percent year on year to Rs3 billion, mainly to volume growth of 48 percent year on year, boosted by the expansion of the ECOPact concrete range. PAT grew by 24% YoY to Rs4.5 billion, supported by a lower tax rate of 26% vs. 33% YoY.

Disclaimer

Disclaimer

The above 3 stocks to buy are picked from the report of ICICI Securities. Please note investing in stocks is subject to market risks and one needs to be cautious at this point of time as markets have gone-up sharply. Neither the author, nor Greynium Information Technologies Pvt Ltd would be responsible for losses incurred based on a decision made.



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PPF Interest Rate Should Be 6.63% Instead of 7.10%: RBI

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Planning

oi-Vipul Das

|

The Reserve Bank of India in its Monetary Policy Report of October 2021, has claimed that the government has kept interest rates on different small savings schemes steady since Q2:2020-21. The prevailing rates are 47-178 basis points higher than the Q3:2021-22 formula-based rates. This indicates that the government is offering 47-178 basis points more than its formula-based rates for PPF, NSC, and other government-sponsored savings schemes. According to RBI’s formula-based analysis, the applicable PPF interest rate for the current quarter, Q3:2021-22, should be 6.63 percent, but the subscribers are getting 7.10% according to the Government’s announced rate of interest in Q3:2021-22.

PPF Interest Rate Should Be 6.63% Instead of 7.10%: RBI

Similarly, the interest rates of Post Office Term Deposits maturing in 1 year, 2 years, 3 years and 5 years should be 3.72%, 4.23%, 4.74%, and 6.01% instead of 5.50% for 1 to 3 years and 6.70% for 5 years of maturity period. Similarly, for the NSC VIII issue, the government should offer 6.14 percent interest rather than the current rate of 6.8 percent, a difference of 66 basis points. In the third quarter of FY 2021-22, the prevailing interest rates for Recurring Deposit Account, Monthly Income Scheme, Kisan Vikas Patra, Senior Citizens Saving Scheme, and Sukanya Samriddhi Account Scheme should be 4.74 percent, 5.98 percent, 6.38 percent, 6.76 percent, and 7.13 percent, respectively, instead of what the government is paying now.

In its report issued on 8th October 2021 RBI has said that “With the moderation in interest rates on bank deposits and unchanged interest rates on small savings, the latter have become attractive to depositors. The growth in accretions under small savings has consistently been above that of bank deposits since 2018 and the gap has widened, with implications for monetary transmission as and when credit demand picks up.”

RBI Monetary Policy Report On Interest Rates on Small Savings Instruments – Q3:2021-22

Interest Rates on Small Savings Instruments – Q3:2021-22
Small Savings Scheme Maturity (years) Spread (% point) Average G-sec Yield (%) of Corresponding Maturity (June 2021 – August 2021) Formula based Rate of Interest (%) (applicable for Q3:2021-22) Government Announced Rate of Interest (%) in Q3:2021-22 Difference (basis points)
1 2 3 4 (5) = (3) + (4) 6 (7) = (6) – (5)
Savings Deposit – – – – 4 –
Public Provident Fund 15 0.25 6.38 6.63 7.1 47
Term Deposits
1 Year 1 0 3.72 3.72 5.5 178
2 Year 2 0 4.23 4.23 5.5 127
3 Year 3 0 4.74 4.74 5.5 76
5 Year 5 0.25 5.76 6.01 6.7 69
Recurring Deposit Account 5 0 4.74 4.74 5.8 106
Monthly Income Scheme 5 0.25 5.73 5.98 6.6 62
Kisan Vikas Patra 124 Months 0 6.38 6.38 6.9 52
NSC VIII issue 5 0.25 5.89 6.14 6.8 66
Senior Citizens Saving Scheme 5 1 5.76 6.76 7.4 64
Sukanya Samriddhi Account Scheme 21 0.75 6.38 7.13 7.6 47
Sources: Government of India; FBIL; and RBI staff estimates.

Post Office Savings Schemes Interest Rates

For the sixth quarter (October-December), the Union Ministry left the interest rates on Post Office Savings Schemes unaltered. The following are the current interest rates on various small savings schemes.

Small Savings Schemes Interest Rates For Q3:2021-22
Post Office Savings Account(SB) 4.0% per annum
5-Year Post Office Recurring Deposit Account (RD) 5.8​ % per annum
Post Office Time Deposit Account (TD) 5.5% for 1 to 3 year A/c, and 6.7​ % for 5 year A/c
Post Office Monthly Income Scheme Account (MIS) 6​.6​ % per annum
Senior Citizen Savings Scheme (SCSS) 7.4 ​% per annum
15 year Public Provident Fund Account (PPF) 7.1 % per annum
Sukanya Samriddhi Accounts 7.6​​% Per Annum
National Savings Certificates (NSC) 6.8 % compounded annually but payable at maturity
Kisan Vikas Patra (KVP) 6.9 % compounded annually
Source: indiapost.gov.in

Story first published: Wednesday, October 20, 2021, 10:21 [IST]



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2 Stocks To Buy From Emkay Global and Motilal Oswal For Good Returns

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Marico Industries: Price target of Rs 635

Motilal Oswal has set a price target of Rs 635 on the stock of Marico, as against the current market price of Rs 575. According to Motilal Oswal in 2QFY22, Marico witnessed improving demand trends across categories with the unlocking of the economy. Revenue growth in the quarter was in the low 20s, with volume growth close to the double digits on a 2-year CAGR basis.

“Within Saffola franchise, Saffola Edible Oils had a muted quarter, largely due to volatility in edible oil prices leading to trade destocking. The Foods and Premium Personal Care portfolios continued to grow smartly. The International business delivered double-digit constant-currency growth as positive trends were witnessed in all markets (ex- Vietnam),” the brokerage has said.

New products do well for Marico

New products do well for Marico

According to Motilal Oswal, Marico has done very well in Honey and Noodles, with encouraging response. Saffola Oodles is among the top five selling Pasta and Noodle brands on Amazon, while MealMaker Soya Chunks already has 14% market share in modern trade (MT) and is now available nationally. Honey, Noodles and Soya Chunks are product categories that could achieve Rs 1 billion in sales. It expects the Foods business to clock Rs 5b/INR8.5-10b in sales by FY22/FY24

Rationale to buy the stock of Marico

Rationale to buy the stock of Marico

According to Motilal Oswal the sustained topline momentum, with improving margin prospects over the trough seen in 1QFY22, has led to an improved outlook.

The brokerage has listed several positives including the ongoing topline growth momentum in each of its core segments and significantly higher growth rates/targets in the Foods portfolio. Apart from thus Rs 5 billion is targeted from the ‘Digital-first’ range of products are highly encouraging developments for a business that had an only 6% sales CAGR over FY15-20, before it reported double-digit growth in FY21.

“This much required diversification could lead to higher multiples compared to past. Valuations at 48.9x FY23E EPS is reasonable given strong earnings growth expectation.

Maintain Buy with target price of Rs 635 per share (50x Sep’23E EPS),” the brokerage has said.

Buy Ultatech Cement, says Emkay Global

Buy Ultatech Cement, says Emkay Global

Emkay Global has placed a buy call on the stock of Ultratech Cement with a price target of Rs 8,500 on the stock. According to the management it has guided for grey cement volume growth to be in the range of 6-8% YoY in H2FY22.

“Factoring in higher opex/ton due to input cost inflation, we cut our FY22-24 EBITDA estimates by 3-4%. We roll over to Dec’22 from Sep’22 and maintain our target price at Rs 8,500. Our DCF-based target price (11.25% WACC, 8% FCFF growth post FY26) implies a 1-year forward EV/EBITDA of 15x (vs. 15.6x earlier). Maintain Buy,” Emkay Global has said.

Disclaimer

Disclaimer

The above stocks are picked from the brokerage report of Motilal Oswal and Emkay Global. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the article.



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Mudra NPAs rise as Covid hits MSMEs

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In the past too, Reserve Bank of India (RBI) officials underlined the rising levels of stress in Mudra loans

The ratio of gross non-performing assets (NPAs), or bad loans, in the loans outstanding under the Pradhan Mantri Mudra Yojana (PMMY) stood at 11.98% as on March 31, 2021, the Micro Units Development & Refinance Agency (Mudra) has said in response to a Right to Information (RTI) query.

In absolute terms, the value of gross NPAs in Mudra loans as on March 31, 2021, was Rs 34,090.34 crore, while the value of loans outstanding under the scheme stood at Rs 2.84 lakh crore on the same date. While comparable data on Mudra loan NPAs for the last two years are not publicly available, at the end of FY18, the bad loan ratio under the scheme was a much lower 5.38%, as per Mudra’s annual report for that year.

The pandemic has hit small businesses harder than their larger counterparts and that may be putting pressure on loans taken by them, including Mudra loans. On Tuesday, analysts at Crisil Ratings said that the micro, small and medium enterprises (MSME) segment, despite benefiting from the emergency credit line guarantee scheme, is likely to see asset quality deteriorate and will require restructuring to manage cash-flow challenges. “In fact, restructuring is expected to be the highest for this segment, at 4-5% of the loan book, leading to a jump in stressed assets to 17-18% by this fiscal end from ~14% last fiscal,” the agency said in a report.

Similarly, bankers have expressed concern about asset quality in the MSME segment. In an interview with FE in August, Bank of Baroda MD & CEO Sanjiv Chadha had said that the MSME segment has been more challenged than others because for the last one year, they have been impacted by lockdowns and demand disruption. However, he was hopeful of a pullback. “My own sense is that both for MSME and retail, the kind of slippages we saw in the last quarter (Q1FY22) was peak distress, and that should start diminishing over the next few quarters,” he added.

In the past too, Reserve Bank of India (RBI) officials underlined the rising levels of stress in Mudra loans. In November 2019, RBI deputy governor MK Jain had said that while a push as massive as the Mudra scheme would have lifted many beneficiaries out of poverty, there was some concern at the growing level of NPAs among these borrowers. “Banks need to focus on repayment capacity at the appraisal stage and monitor the loans through their life cycle much more closely,” he had said.

PMMY was launched on April 8, 2015, with the aim of aiding micro entrepreneurs to access credit from the formal financial system. The three categories of loans under the scheme are Shishu (less than Rs 50,000), Kishore (between Rs 50,000 and Rs 5 lakh) and Tarun (over Rs 5 lakh and up to Rs10 lakh). The agency Mudra offers refinance to commercial banks, non-banking financial companies and microfinance institutions against loans to micro enterprises.

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Axis AMC partners with Inversion to raise Rs 3500 crore buyout fund, BFSI News, ET BFSI

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Axis Asset Management Co Ltd, promoted by Axis Bank, and Inversion Advisory Services, today announced that they have entered into a partnership to invest in underperforming companies.

They plan to raise upto Rs 3,500 crore for the proposed new fund under its Alternative Investment Fund registration. The plan is to acquire controlling stake primarily in pre-stressed, stressed, distressed and other underperforming assets.

Chandresh Nigam, MD & CEO, Axis AMC said, “With our entry into the exciting space of turnaround investing, we believe we have created a unique proposition for investors looking to participate and benefit from the India growth story.”

The new partnership aims at helping potential companies with strong performance and operational capabilities which may be facing temporary headwinds owing to special circumstances including unsustainable debt, temporary disruptions, among others to get on a credible turnaround path.

The Investment Manager will employ a team to evaluate potential opportunities. Inversion would provide management support to acquired companies with its team of functional & industry experts.

Akhil Gupta, Chairman, Inversion Advisory Services said, “The combination is ideal to not just exploit large untapped potential in this space but also serve an important social purpose in saving a large number of jobs and capital already invested by shareholders, lenders and vendors in such companies”.



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Axis AMC partners with Inversion to raise Rs 3500 crore buyout fund, BFSI News, ET BFSI

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Axis Asset Management Co Ltd, promoted by Axis Bank, and Inversion Advisory Services, today announced that they have entered into a partnership to invest in underperforming companies.

They plan to raise upto Rs 3,500 crore for the proposed new fund under its Alternative Investment Fund registration. The plan is to acquire controlling stake primarily in pre-stressed, stressed, distressed and other underperforming assets.

Chandresh Nigam, MD & CEO, Axis AMC said, “With our entry into the exciting space of turnaround investing, we believe we have created a unique proposition for investors looking to participate and benefit from the India growth story.”

The new partnership aims at helping potential companies with strong performance and operational capabilities which may be facing temporary headwinds owing to special circumstances including unsustainable debt, temporary disruptions, among others to get on a credible turnaround path.

The Investment Manager will employ a team to evaluate potential opportunities. Inversion would provide management support to acquired companies with its team of functional & industry experts.

Akhil Gupta, Chairman, Inversion Advisory Services said, “The combination is ideal to not just exploit large untapped potential in this space but also serve an important social purpose in saving a large number of jobs and capital already invested by shareholders, lenders and vendors in such companies”.



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2 Public Sector Banks That Revised Their Interest Rates On FD In October 2021

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Investment

oi-Vipul Das

|

While investing in fixed deposits, it is imperative to analyse the applicable interest rates, since this consideration helps you to plan your goals depending on the maturity duration you have chosen. In the same month where the Reserve Bank of India held the repo rate and reverse repo rate constant at 4 percent and 3.35 percent, respectively, two public sector banks in India altered their interest rates on fixed deposits as well. The following are the two public sector banks that have modified their interest rates on fixed deposits of less than Rs 2 crore.

2 Public Sector Banks That Revised Their Interest Rates On FD In October 2021

Indian Bank

Indian Bank revised its fixed deposit interest rates for deposits of less than Rs 2 Cr and Rs 2 Cr to Rs 5 Cr on October 5, 2021. Following the most recent adjustment, Indian Bank now offers the highest interest rate of 5.25 percent to the general public and 5.75 percent to senior citizens on deposits maturing in 3 years to less than 5 years and 5 years, respectively. The bank offers Senior Citizen Domestic Term Deposit Accounts where senior citizens will continue to earn an additional rate of 0.50% p.a. for an amount up to Rs 10 crore for all tenors. The latest interest rates on fixed deposits of Indian Bank are listed below.

Period % per annum (For deposits of less than Rs 2 Cr)
7 days to 14 days 2.8
15 days to 29 days 2.8
30 days to 45 days 2.8
46 days to 90 days 3.25
91 days to 120 days 3.35
121 days to 180 days 3.5
181 days to less than 9 months 4
9 months to less than 1 year 4.4
1 year 4.95
Above 1 year to less than 2 years 5
2 years to less than 3 years 5.1
3 years to less than 5 years 5.25
5 year 5.25
Above 5 years 5.15
Source: Bank Website

Central Bank of India

The other public sector bank is the Central Bank of India, which has also changed its fixed deposit interest rates, and the new applicable rates are in force from 10.10.2021. Upon the recent revision on interest rates, the bank is now offering the highest interest rate of 5.00% to the general public and 5.50% to senior citizens on deposits maturing in 2 years to 10 years. On their deposits, senior citizens will continue to get an additional card rate of 0.50% per annum across all tenors. The bank’s most recent interest rates on fixed deposits are provided below.

Maturity Period Less than 2 cr w.e.f 10.10.2021 2 Cr to 10 Cr (Single deposit) w.e.f 10.07.2021 (Linked with REPO Rate)
7 -14 days 2.75 2.9
15 – 30 days 2.9 2.9
31 – 45 days 2.9 2.9
46 – 59 days 3.25 2.9
60 – 90 days 3.25 2.9
91 – 179 days 3.8 2.9
180 – 270 days 4.25 3
271 – 364 days 4.25 3.25
1 yr to less than 2 yrs 4.9 3.25
2 yr to less than 3 years 5 3.25
3 yr to less than 5 years 5 3.25
5 years & above upto 10 years 5 3.25
Source: Bank Website

Story first published: Tuesday, October 19, 2021, 17:45 [IST]



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All You Need To Know About NPS Corporate Bond Funds & Its 5 Year Returns

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NPS Scheme C Tier-1 Returns

According to the NPS Trust, HDFC Pension Fund delivered the highest result in this category under the NPS Scheme C Tier-1, with a 1-year return of 7.06 percent, a 3-year return of 11.53 percent, and a 5-year return of 8.78 percent as of October 15th, 2021.

Pension Fund AUM (Rs Cr) Subscribers NAV Returns 1 Year Returns 3 Years Returns 5 Years
Aditya Birla Sun Life Pension Management Ltd. 97.53 20,652 14.5692 6.38% 10.88% NA
HDFC Pension Management Co. Ltd. 4332.13 8,78,001 22.3773 7.06% 11.53% 8.78%
ICICI Pru. Pension Fund Mgmt Co. Ltd. 2005.52 3,86,362 34.0074 6.66% 10.86% 8.53%
Kotak Mahindra Pension Fund Ltd. 364.68 53,989 32.7362 6.43% 10.04% 7.75%
LIC Pension Fund Ltd. 1071.54 2,42,883 22.0923 6.37% 11.31% 8.42%
SBI Pension Funds Pvt. Ltd 3946.61 8,94,263 34.1653 6.49% 11.08% 8.53%
UTI Retirement Solutions Ltd. 540.24 94,785 30.3249 5.94% 10.63% 8.10%
Benchmark Return as on 15/10/2021 7.66% 12.07% 8.75%

NPS Scheme C Tier-II Returns

NPS Scheme C Tier-II Returns

LIC Pension Fund Ltd. has given the highest returns of 10.05 percent in the last year under the NPS Scheme C Tier-II, with a three-year return of 11.99 percent. The benchmark returns for the NPS Scheme C Tier-II have been 7.66 percent in the last year, 12.07 percent in the last three years, and 8.75 percent in the last five years.

Pension Fund AUM (Rs Cr) Subscribers NAV Returns 1 Year Returns 3 Years Returns 5 Years
Aditya Birla Sun Life Pension Management Ltd. 8.07 7,405 14.5692 6.38% 10.88% NA
HDFC Pension Management Co. Ltd. 244.6 1,31,171 20.9809 6.53% 11.21% 8.69%
ICICI Pru. Pension Fund Mgmt Co. Ltd. 119.83 57,470 31.5219 6.40% 10.71% 8.42%
Kotak Mahindra Pension Fund Ltd. 26.74 16,057 28.6359 5.99% 10.61% 8.10%
LIC Pension Fund Ltd. 52.04 42,326 21.0094 10.05% 11.99% 8.64%
SBI Pension Funds Pvt. Ltd 171.33 1,33,016 30.8364 5.97% 10.60% 8.23%
UTI Retirement Solutions Ltd. 27.88 18,786 29.0071 5.75% 10.53% 8.12%
Benchmark Return as on 15/10/2021 7.66% 12.07% 8.75%

NPS Pension Fund Managers

NPS Pension Fund Managers

The subscriber is required to select one of the available PFMs under NPS which are as follows:

1. Birla Sun Life Pension Management Limited

2. HDFC Pension Management Company Limited

3. ICICI Prudential Pension Funds Management Company Limited

4. Kotak Mahindra Pension Fund Limited

5. LIC Pension Fund Limited

6. Reliance Capital Pension Fund Limited

7. SBI Pension Funds Private Limited

8. UTI Retirement Solutions Limited

Investment options under NPS

Investment options under NPS

NPS offers two types of investment options: Active Choice and Auto Choice. Under the Active Choice option, a subscriber has the option to effectively choose how his or her money is invested and the subscriber must specify the PFM, Asset Class, and percentage of allocation for each scheme of the PFM. The allocation to four asset classes (equity, corporate debt, government bonds, and alternative investment funds) should be defined under a single PFM by a subscriber. The four asset classes are as follows:

  • Asset class E – Equity and related instruments
  • Asset class C – Corporate debt and related instruments
  • Asset class G – Government Bonds and related instruments
  • Asset Class A – Alternative Investment Funds including instruments like CMBS, MBS, REITS, AIFs, Invlts, etc.

Under the auto-choice option, investments will be deposited in a life-cycle fund. A predefined strategy will decide the amount of money invested across three asset classes, which will fluctuate depending on the age of the subscriber. Auto Choice is the ultimate pick for a subscriber who wishes to automatically minimize risk to more risky investment alternatives as he or she matures. A subscriber’s investment exposure to equity and corporate debt declines as they become older and there are three distinct options provided under the ‘Auto Choice’ option relying on the risk appetite of the Subscriber i.e. Aggressive, Moderate, and Conservative.



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Indian banks face rise in bad loans to 8-9% of lending -CRISIL, BFSI News, ET BFSI

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MUMBAI – Indian banks are likely to see a rise in gross non-performing assets (NPA) to 8-9% of total lending at the end of this fiscal year from 7.5% last year, rating agency CRISIL said in a report on Tuesday.

The rises will be led by retail clients and the micro, small and medium (MSME) segments, said Krishnan Sitaraman, senior director and deputy chief ratings officer, noting they represent 40% of total bank credit.

“Stressed assets in these segments are seen rising to 4-5% and 17-18%, respectively, by this fiscal year-end (March 2022). The numbers would have trended even higher but for write-offs, primarily in the unsecured segment,” Sitaraman said.

Last year the Reserve Bank of India (RBI) allowed banks to offer a six-month moratorium to all small borrowers.

It later permitted lenders to offer a one-time loan-restructuring facility to help avert mounting bad loans and to allow borrowers more time to repay their debt.

Despite these measures, stressed assets in the retail segment will rise, with home loans which is the largest segment being the least impacted and unsecured loans being the worst, CRISIL said.

The corporate segment is expected to be more resilient as a large part of the stress in the corporate portfolio was already recognised during an asset quality review initiated by the RBI in 2015, CRISIL said.

The agency said the performance of the restructured portfolio will need close monitoring but slippages from the restructured book are expected to be lower this time around.

“Recent trends indicate that a reasonable proportion of borrowers, primarily on the retail side, have started making additional payments as their cash flows improve, said Subha Sri Narayanan, director at CRISIL Ratings.

“MSMEs, however, may take longer to stabilise and we remain watchful.”

Reserve Bank of India (RBI)



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Indian stocks rise on IT, financial boost, BFSI News, ET BFSI

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BENGALURU, – Indian shares rose on Tuesday to hit another record high, led by gains in information technology and financial stocks, with investors betting on strong corporate earnings for the September quarter.

The NSE Nifty 50 index was up 0.5% at 18,571, while the S&P BSE Sensex rose 0.63% to 62,156.48 by 0355 GMT.

The Nifty IT index rose 1.8% and was the top gainer among the sub-indexes.

Shares of information technology services provider Larsen and Toubro Infotech surged 10% after reporting strong September quarter results.

Consumer giant Hindustan Unilever is among a slew of companies that will report earnings later in the day.

The Nifty metals index rose 0.6% as global prices surged on fears of production and supply cuts.

The Nifty bank index was up 0.6%, while the finance index gained 0.7%.

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