Category: Personal Finance

OYO IPO: Files Papers To Raise Rs 8,430 Crore In IPO

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Oyo Hotels & Homes, a hospitality startup, has filed a draught prospectus with capital market regulator Sebi in order to raise $1.2 billion through a public offering, joining a rising number of businesses that are tapping into the public markets.

Oyo intends to issue up to 70 billion rupees worth of new shares, while existing shareholders may sell up to 14.3 billion rupees worth of shares.

OYO IPO: Files Papers To Raise Rs 8,430 Crore In IPO

SoftBank Vision Fund, Lightspeed Venture Partners, and Sequoia Capital India are among the company’s major backers.

OYO is valued at $9.6 billion as of August 20, 2021, after raising $5 million from Microsoft. According to the prospectus, the promoters include founder Ritesh Agarwal, his holding firm RA Hospital Holdings, and SoftBank Vision Fund, the three largest owners. According to reports, the business named Kotak Mahindra Capital, Citigroup, ICICI Securities, Nomura, and Bank of America as primary book managers for the public offering last month.

By early next year, the company is likely to be listed on Indian stock exchanges.

OYO background

Ritesh Agarwal founded Oravel Stays in 2012 to facilitate the listing and booking of low-cost hotels. In May of 2013, he flipped Oravel to OYO after months of research and experience in numerous bed and breakfast homes, guest houses, and small hotels around India.

OYO collaborates with hotels to provide world-class guest experiences in locations across the world. Ritesh Agarwal earned a $100,000 Thiel Fellowship grant from Peter Thiel shortly after starting Oravel Stays, which tremendously aided in the development of his company.

Over the years, the company grew to include thousands of hotels, vacation homes, and millions of rooms in hundreds of cities across India, Malaysia, the United Arab Emirates, Nepal, Brazil, Mexico, the United Kingdom, the Philippines, Japan, Saudi Arabia, Sri Lanka, Indonesia, Vietnam, and the United States, among others. It is even more valuable than the renowned Taj hotel company and the Oberoi hotel chain.

Funding Details

Date Stage Amount Lead Investors
August 20, 2021 Corporate Round $5M Microsoft
July 29, 2021 Corporate Round – Microsoft
July 16, 2021 Debt Financing $660M –
March 11, 2021 Debt Financing $200M Softbank Vision Fund
Jan 6, 2021 Series F $7M Hindustan Media Venture

Story first published: Friday, October 1, 2021, 12:51 [IST]



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2 Stocks To Buy From Infrastructure And Real Estate For Short Term By HDFC Securities

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Engineers India: Buy for a target of Rs. 93 for 3 months

HDFC Securities is bullish on the counter of Engineers India and recommends it as a ‘Buy’ for a target price of Rs. 93 in 3 months. This is a potential upside of over 18 percent from the stock’s last traded price of Rs. 78.5 per share. Stop loss suggested for the stock pick is Rs. 72.

Technical observations:

The scrip is in a short term uptrend as it has been making higher tops and higher bottoms for the last several sessions and has taken out its previous swing high of 76.3. In the previous session due to above average volumes the stock broke out of the 71-76 trading range.

As the stock trades above the 20 day and 50-day SMA, technical indicators suggest positive signals. Daily momentum indicators such as the 14-day RSI have recovered from oversold levels and are in rising mode currently. This augurs well for the uptrend to continue.

“With the intermediate technical setup too looking positive, we believe the stock has the potential to move higher in the coming weeks and therefore recommend a buy”, adds the brokerage firm

Notably, the brokerage recommends the buy on the counter in the price range of Rs. 74.5 to 77.3.

Engineers India is a top engineering consultancy and EPC company that delivers world-class projects for its clients globally. The company’s services are into supply chain management, project management, construction and other specialized services.

Stock Target price Potential upside Last traded price
Engineers India Rs. 93 >18% Rs. 78.5

DLF Ltd: Buy DLF for a target price of Rs. 469

DLF Ltd: Buy DLF for a target price of Rs. 469

The leading brokerage firm recommends buying the stock of realty major DLF in the price range of Rs. 417.25-393 for a target price of Rs. 469 to be realized in 3 months. This shall amount to potential gains of 13 percent from the last traded price of Rs. 414.8. Stop loss for the investment idea is suggested at Rs. 385.

Technical observations:

– Stock has formed new lifetime high on weekly chart which is positive sign.

– Higher top and higher bottom formation has been witnessed on all degrees.

– Price has given breakout and moved up sharply.

– Short term trend of the stock remains positive as it is trading above all key moving averages.

– Oscillators like MACD and DMI are showing strength in the stock.

– Plus DI is trading above Minus DI indicating momentum in the current uptrend.

” Considering the Technical evidences discussed above, we recommend buying the DLF at 417.25 and average at 393, for the upside targets of 452 – 469, keeping a stop-loss at 385″, adds the brokerage report.

DLF or Delhi Land & Finance founded in the year 1946, started its real estate journey by developing 22 urban colonies in Delhi. Currently, it is the largest publicly listed real estate entity that has residential, commercial as well as retail properties across 15 states and 24 cities.

Stock Target price Potential upside Last traded price
DLF Rs. 469 13% Rs. 414.8

Disclaimer:

Disclaimer:

The investment ideas are picked from the brokerage report of HDFC Securities. Investors should note that investing in stocks is risky and neither the author, nor Greynium nor the brokerage would be responsible for losses based on a decision from the above article.

GoodReturns.in



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A guide to navigating the new auto debit rules

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New regulations that require a second factor authentication for certain auto debit transactions are becoming operational from October 1, 2021. How will this impact all your automated transactions such as EMIs, phone, gas and electricity bill payments and SIPs? How can you work around the new rules if your bank or merchant is not yet compliant? Read on to know.

Affected transactions

To begin with, not all your automated payments will be affected. RBI’s new guidelines will impact only all recurring contactless payments made through debit/credit cards, UPI and prepaid instruments and this, when done from third party websites and apps.

Transactions initiated on the bank’s website or app will continue hassle-free. For example, if you have automated a payment on your HDFC Bank debit/credit card through their BillPay Service, this can go on.

Also read: Auto debit norms: Payments Council of India seeks extension for smooth transition

Payments initiated through third party apps, that do not comply with RBI’s guidelines may not go through henceforth. This is because the new RBI guidelines mandate such transactions to undergo additional factor authentication. This means that every recurring transaction automated from outside a bank’s portal will now require a second factor authentication by way of an OTP.

For all your automated debits exceeding ₹5,000 per transaction, you will henceforth be required to authorise the banks to carry out the transaction every time the transaction falls due. An OTP will be sent to you 24 hours prior to the transaction, for every payment to go through.

The OTP will be sent on your registered email address and phone number, along with details of the merchant, transaction amount. A link that enables you to modify or cancel the transaction or the recurring mandate itself will also be sent alongside.

Additional factor authentication will only be one-time in nature for payments below ₹5,000 (required at the time of registering the mandate). If you have already registered such mandates with third party apps/websites that are compliant with the new guidelines, your payments will continue hassle free. In case the merchant is not compliant, banks will intimate you to give the one-time additional authentication for such transactions.

It is noteworthy that large private banks, such as HDFC Bank, ICICI Bank, and Axis Bank have been enabling automated payments with additional factor authentication, for e-mandates across various merchants.

In many other banks, this was only available for transactions or standing instructions placed through bank’s net banking, phone banking or UPI portal. Examples for these include your loan EMIs and monthly investments such as SIPs, where in you either signed the NACH/ECS mandate or providing a standing instruction through the bank’s net banking portal.

Following the October 1 deadline, more banks have tied up with select merchants to enable such two-factor authentication as mandated by the RBI. But some are yet to comply.

Tackling non-compliant transactions

Transactions initiated with non-compliant merchants may not go through, starting October 1, 2021. You can make direct payments on the app/ website of the merchant or choose the merchant under your UPI, net banking or card account and pay them when the dues come up.

However, if you want to continue automating transactions with such non-compliant merchants, banks may require you to register the recurring payments on the bank’s portal.

For instance, if you opted for an auto-renewal of your OTT platform subscription, the same may not go through starting October 1, if the same is not compliant with the new guidelines issued by RBI. Do note that while Amazon Prime, Netflix and Hotstar are currently integrated into the common platform, other OTTs haven’t.

How will you know whether your merchant is compliant or not? Fret not. Banks will intimate customers regarding the same through text and email. Customers can then issue the standing instructions afresh to banks, to continue automating the transactions, hassle free.

Leave alone non-compliant merchants, many banks themselves have not yet upgraded their software to comply with the new guidelines. Customers of such banks who have authorised automated payments to merchants need to check with their banks on the status recurring payments.

In the interim, you can make direct payments on the app/ website or choose the merchant under your UPI /net banking/card account and make the payment each time the payment it is due.

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Swing Pricing In Debt Funds: Major Things To Know

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The Securities Exchange Board of India (SEBI) has introduced swing pricing in bond funds to shield debt fund investors from big redemptions by other investors.

The Indian Association of Mutual Funds has been asked to propose broad parameters for determining swing pricing thresholds and an indicative swing threshold range for normal times. For the same, asset management firms (AMCs) are permitted to have additional parameters.

Swing Pricing In Debt Funds: Major Things To Know

Except for overnight funds, gilt funds, and gilt funds with a 10-year maturity scheme, the regulator has established the swing pricing structure for bond fund units. With effect from March 1, 2022, this circular will be implemented.

What is Swing Pricing in mutual funds?

Swing pricing is when a fund’s net asset value (NAV) is adjusted to pass on trading charges to customers who purchase and sell inside their accounts. Its purpose is to shield long-term shareholders from the fund’s transaction activity eroding the value of their accounts.
If a fund’s net inflows or withdrawals surpass a certain amount defined by the fund provider, swing pricing is used. The supplier calculates the NAV as usual before modifying it by the selected swing factor in all cases.

Swing pricing for normal times

The swing pricing methodology during regular times is as follows:

The MFI will provide broad rules for determining thresholds for triggering swing pricing, which the AMCs will follow. AMFI will also give the industry an indication of a swing threshold range at typical times.

In addition, depending on the structure and characteristics of the mutual fund scheme, AMC may be allowed to have other parameters if it so wants. iii. For typical times, AMCs will determine whether swing pricing is applicable and the magnitude of the swing factor based on scheme-specific issues.

Swing pricing for market dislocation

AMFI will establish a set of guidelines for identifying market dislocation and will suggest it to SEBI. SEBI will evaluate if there is a “market dislocation” based on AMFI’s recommendation or on its own. When a market dislocation is announced, SEBI will notify investors that swing pricing would be in effect for a set length of time.

The swing pricing structure will be mandated exclusively for open-ended debt schemes excluding overnight funds, Gilt funds, and Gilt with 10-year maturity funds following the declaration of market dislocation.

The schemes stated in para II(b) above will be subjected to a minimum swing factor as follows, and the NAV will be adjusted accordingly.

Within three months of the date of this circular, all open-ended debt schemes except overnight funds, Gilt funds, and Gilt with 10-year maturity funds.

As a result, swing pricing acts as a “circuit breaker” for mutual funds, increasing the cost of departing schemes and preventing major investors from making rapid withdrawals.

Story first published: Friday, October 1, 2021, 11:11 [IST]



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Equitas Small Finance Bank Revises Interest Rates On FD: Latest Rates Here

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Equitas Small Finance Bank FD Interest Rates For Regular Citizens

Following the most recent adjustment on interest rates, regular citizens will now get a higher return of 6.00% on their deposits maturing in 2 years 1 day 887 days to less than 3 years and 5 years 1 day to 10 years respectively.

Tenure Interest rates for amount less than Rs. 2 crore w.e.f 1st October 2021
7 – 14 days 3.50%
15 – 29 days 3.50%
30 – 45 days 3.50%
46 – 62 days 4.00%
63 – 90 days 4.00%
91 – 120 days 4.35%
121 – 180 days 4.35%
181 – 210 days 4.85%
211 – 270 days 4.85%
271 – 364 days 4.85%
1 year to 18 months 5.85%
18 months 1 day to 2 years 5.75%
2 years 1 day to 887 days 6%
888 days 6%
889 days to 3 years 6%
3 years 1 day to 4 years 5.75%
4 years 1 day to 5 years 5.75%
5 years 1 day to 10 years 6%
Source: Bank Website, with effect from 1st October 2021

Equitas Small Finance Bank FD Interest Rates For Senior Citizens

Equitas Small Finance Bank FD Interest Rates For Senior Citizens

Senior citizens will continue to get an additional rate of 0.50% on their deposits. The latest interest rates on fixed deposits of senior citizens are as follows.

Tenure Rate of interest p.a.
7 – 14 days 4.00%
15 – 29 days 4.00%
30 – 45 days 4.00%
46 – 62 days 4.50%
63 – 90 days 4.50%
91 – 120 days 4.85%
121 – 180 days 4.85%
181 – 210 days 5.35%
211 – 270 days 5.35%
271 – 364 days 5.35%
1 year to 18 months 5.35%
18 months 1 day to 2 years 6.25%
2 years 1 day to 887 days 6.50%
888 days 6.50%
889 days to 3 years 6.50%
3 years 1 day to 4 years 6.25%
4 years 1 day to 5 years 6.25%
5 years 1 day to 10 years 6.50%
Source:Bank Website, with effect from: 1st October 2021

Equitas Small Finance Bank RD Rates

Equitas Small Finance Bank RD Rates

With effect from 1st October 2021, Equitas Small Finance Bank is promising the below-listed interest rates on recurring deposits to both regular and senior citizens.

Tenure Interest rates for amount less than Rs. 2 crore w.e.f 1st October 2021 Interest rates for senior citizens
12 Months 5.85% 6.35%
15 Months 5.85% 6.35%
18 Months 5.85% 6.35%
21 Months 5.75% 6.25%
24 Months 5.75% 6.25%
30 Months 6% 6.50%
36 Months 6% 6.50%
48 Months 5.75% 6.25%
60 Months 5.75% 6.25%
90 Months 6% 6.50%
120 Months 6% 6.50%
Source: Bank Website, with effect from 1st October 2021



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5 SIPs To Invest For October 2021 That Are Rated “No 1” By CRISIL

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Be cautious when investing

Though individuals are investing in SIPs, it is time to be very cautious. The Sensex at 60,000 points is overvalued and even those looking at SIPs, may want to invest smaller lots. In case the markets fall, it maybe more prudent to increase your Systematic Investment Plans, if you are investing in equity mutual funds. At the moment we are suggesting investors, to look for hybrid funds, which allows the fund manager to invest in bonds as well as equities and thus hedge their risk.

Mutual funds that are rated No 1 by CRISIL

Mutual funds that are rated No 1 by CRISIL

Here is a list of mutual funds that are rated as No 1 by CRISIL, in their respective categories.

Name Category 1-year returns 3-year returns
BOI AXA Mid & Small Cap Equity & Debt Fund Hybrid 78.26% 15.62%
PGIM India Flexi Cap Fund Flexi Cap 68.98% 23.47%
Canara Robeco Bluechip Equity Fund Largecap 47.14% 17.14%
IDBI India Top 100 Equity Fund Largecap 51.69% 14.53%
Franklin India Bluechip Fund Largecap 46.70% 12.27%

Why we are recommending only the above 5?

Why we are recommending only the above 5?

To begin with given where the stock markets are we believe that spectacular returns as in the last 1-year is out of the question. We are hence recommending only the hybrid, flexi and largecap mutual funds. In fact, we do not even like flexi cap mutual funds, given that they would have exposure to small and midcap stocks as well.

At the moment we are recommending only hybrid funds, where the fund manager has the flexibility to switch between debt and equity. We will be covering Hybrid mutual fund SIPs in a separate article. We also urge investors to start switching to debt mutual funds, given the way markets have rallied in the last 1-year. I mean, it may also be time to protect your capital, if not entirely than partially at the very least.

Disclaimer:

Disclaimer:

Investing in mutual funds poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies and the author are not liable for any losses caused as a result of decisions based on the article. The above article is for informational purposes only and investors should exercise some discretion.



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Aditya Birla Sun Life AMC IPO fully subscribed on Day-2, BFSI News, ET BFSI

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The initial public offer of Aditya Birla Sun Life AMC Limited was fully subscribed on the second day on Thursday. The Rs 2,768.25-crore initial share sale received bids for 2,99,46,460 shares against 2,77,99,200 shares on offer, translating into 1.08 times subscription, according to an update on the NSE.

The qualified institutional buyers (QIBs) category was subscribed 6 per cent, non-institutional investors 40 per cent and retail individual investors (RIIs) two times.

The initial public offer is of 3,88,80,000 equity shares.

The initial share-sale is entirely an offer for sale, wherein two promoters — Aditya Birla Capital and Sun Life (India) AMC Investments — will divest their stake in the asset management firm.

The price range for the offer is Rs 695-712 per share.

Aditya Birla Sun Life AMC on Tuesday said it has collected Rs 789 crore from anchor investors.

Aditya Birla Sun Life AMC Ltd, the investment manager of Aditya Birla Sun Life Mutual Fund, is a joint venture between Aditya Birla Group and Sun Life Financial Inc of Canada.

Asset management firms like Nippon Life India Asset Management, HDFC AMC, and UTI AMC are already listed on the stock exchanges.

Kotak Mahindra Capital Company, Bofa Securities India, Citigroup Global Markets India, Axis Capital, HDFC Bank, ICICI Securities, IIFL Securities, JM Financial, Motilal Oswal Investment Advisors Limited, SBI Capital Markets and YES Securities (India) are the managers of the offer. PTI SUM BAL BAL



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Home loans set for a big boost this festive season, BFSI News, ET BFSI

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Home loans are set to get a boost this festive season as easing Covid curbs give buyers confidence and rates stay rock bottom due to ample liquidity

Buyers confident about the economy are set to cash in on low rates to buy homes.

Housing sales have jumped over two-fold during the July-September period at 62,800 units across seven major cities on better demand driven by low mortgage rates and hiring in IT/ITeS sector, according to property consultant Anarock.

Sales of residential properties stood at 29,520 units in the year-ago period and 24,560 units in the previous quarter.

Housing prices appreciated by 3 per cent across the seven cities to Rs 5,760 per square feet in Q3 of 2021 calendar year from Rs 5,600 per square feet in Q3, 2020.

The ongoing WFH (Work For Home) culture continues to influence residential sentiment on two major fronts – overall housing demand and unit sizes.

About 80 per cent of respondents to a survey by consultant JLL expected to make a purchase in the next three months.

Fierce competition

Competition among lenders in the home loan space is also set to boost home loans.

Kotak Mahindra Bank is offering home loans at a lower rate of 6.50 per cent is a festive period offer available only for two months till November 8, and the lowest offering is for those having the highest credit scores coming from the salaried segment.

In the past, its rivals which include HDFC and SBI, have responded to rate cuts by slashing their own offering. The rate cut comes at a time when demand for home loans is falling in the country and may spark similar offers from rivals.

Large banks like the State Bank of India already offer home loans at as low as 6.65 per cent and 6.75 per cent, respectively, while the interest rates for HFCs is between 7.45 per cent and 10 per cent.

Nirmal Bang Institutional Equities said in a note, “The demand momentum seen in housing loans last year has tapered off and organic growth for the housing finance industry has been softening,” the brokerage house said. The organic growth in the home loan segment for large banks has been slowing over the last 45-50 days.

Home loan AUM growth

Even as lenders jostle for home loan pie, the assets under management of the segment across banks and non-banks are likely to grow by 15% over the next three to five years, according to ICICI Securities.

This would be on the back of the rise in disbursements and improved affordability.

“Factors such as low interest rates, stamp duty cut, benign real estate prices, etc. have improved affordability to own a house. ‘Work from home’ has kindled incremental housing demand. Construction too was not adversely impacted during the second wave,” the brokerage said.

Home loan growth fell to 8% over the previous three financial years as compared to 17-18% earlier while disbursements fell to Rs 5.3-5.5 lakh crore due to the pandemic. However, it has now risen to a run-rate of Rs 7-8 lakh crore.



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2 Pharma Stocks To Buy According To Sharekhan For Upside Of 20% To 31%

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Buy Laurus Labs, long-term drivers in place

Sharekhan sees a good upside in the stock to Rs 800, as against the current market price of Rs 607, which implies an upside potential of 31%.

According to Sharekhan, Laurus is fortifying its position in the FD and synthesis segments, strengthening its presence in non- ARV space and growing in new area of biologics.

The company is building new capacities that would support the robust demand and also propel growth in the coming years. Emerging opportunities from patent expiry of drugs in areas of anti-diabetes and cardiology offer significant potential for Laurus.

“The sturdy growth prospects that are well supported by capacity expansion plans, the management has targeted for a $1bn revenues by FY2023, thus translating in to a strong growth trajectory. Diversification of revenue base and plans to enter new therapeutic areas of cardiology and anti-diabetes would also be the key growth drivers. At the current market price, the stock trades at 24.8 times and 19 times its FY22E and FY23E EPS respectively. Further the stock price has corrected by 16% from its highs and this provides a good entry point for investors. As the concerns are overdone, we re-iterate Buy recommendation on the stock of Laurus with an unchanged price target of Rs. 800,” Sharekhan has said.

Buy Gland Pharma, says Sharekhan

Buy Gland Pharma, says Sharekhan

Sharekhan has set a price target of Rs 4,400 on the stock of Gland Pharma, as against the current market price of Rs 3,700.

According to Sharekhan, Gland Pharma has a well diversified product portfolio, strong product pipeline would drive the Core markets performance, while expanding geographic footprint with plans to enter China bodes well from growth perspective.

“A confluence of multiple growth drivers is expected to boost Gland Pharma’s overall performance. A well-diversified and sturdy product portfolio, expansion of geographic footprint with a focus on entering the high potential China markets (leveraging parent company’s strength), sustained opportunities from Sputnik vaccine, and foray in to the biosimilar CDMO space would be the key growth drivers for Gland. A sturdy Rs. 770 crore capex plan spread across FY2022-FY2023E and a strong compliance track record coupled with established customer relations are the key positives and provide ample growth visibility,” the brokerage has said.

Good growth in core markets for Gland

Good growth in core markets for Gland

According to Sharekhan, Gland’s core markets consist of the US, Europe, Australia and Canada and account for 68% of FY2021 revenue. A well-diversified product portfolio, strong product pipeline and focus to expand geographic footprint are the growth levers for Gland. After a positive response from new markets entered in such as Singapore, Israel, Saudi Arabia, and CIS countries, Gland aims to enter the high-potential China markets by leveraging its parent company’s strengths.

“Structurally being an established player in injectables, Gland Pharma is set to benefit from the rising preference for injectables. At the current market price, the stock is of Gland trading at a P/E multiple of 46.2x/30x, its FY2022E/FY2023E EPS, thus pointing towards room for expansion. The stock price has corrected 14% from its highs and this provides a good entry point for investors. We reiterate our Buy recommendation on the stock with unchanged price target of Rs. 4,400,” the brokerage has said.

Disclaimer

Disclaimer

The investment ideas are picked from the brokerage report of Sharekhan. Investors should note that investing in stocks is risky and neither the author, nor Greynium nor the brokerage would be responsible for losses based on a decision from the above article.



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Mispricing of risk due to excess liquidity: Dinesh Khara, chairman, State Bank of India

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“During Covid, demand has certainly got affected and hopefully with the revival of the economy, demand should be back on track.” (File image)

Corporate demand has to pick up in order for credit growth to pick up, Dinesh Khara, chairman, State Bank of India, tells Shritama Bose in an interview. There has been a tendency to misprice risk amid an excess of liquidity, he adds. Edited excerpts:

Credit growth has become a serious problem for the banking sector. What would it take for it to pick up from the current 6-6.5% levels?
The credit growth is also a reflection of the real economy. There are a couple of reasons which we have seen in the past. Almost about Rs 2 lakh crore worth of deleveraging has happened in the corporate sector and naturally, it has impacted credit growth. So even if we are growing at 12-14% in retail, it will not show up in the banking sector credit growth if corporate credit doesn’t grow.

We have also observed that for large corporates sanctioned limits have remained unutilised to the extent of about 30%. Similarly, for the mid-corporate sector, the credit limits have remained unutilised to the extent of about 25%. Even for term loans, etc that we sanction, the unutilised limits are as high as 25-30%. During Covid, demand has certainly got affected and hopefully with the revival of the economy, demand should be back on track.

In August, the government had said there would be a fresh round of credit outreach programmes in October. How are you planning that?
We are all working on the nitty-gritties of the outreach programme and very soon, we should be in a position to announce it under the aegis of IBA (Indian Banks’ Association).

The focus would be to encourage people to borrow and to generate demand with the convenience of the funds available in the form of loans. It will be for all segments.

Pricing has hit rock-bottom in the wholesale market. How are you strategising in such a market?
Naturally, one has to decide up to what level one should go. That is something on which we have already made up our mind. Pricing has multiple components — the cost of resources, the risk premium we assign, based on which we arrive at the price that should be offered. We are quite cognisant of the various price dynamics and accordingly we are quoting prices which should take care of all stakeholders’ interests.

What is your outlook on liquidity? Is it hurting margins?
The system is still in a surplus mode. For the foreseeable future, we don’t see any challenge in terms of liquidity. There is ample liquidity to take care of the credit needs of customers. I can very well see that there is some kind of mispricing of risk because of the excess liquidity, but eventually it’s a call taken by each bank based on their thinking around balance sheet growth. Those would be the reasons for them going for a particular kind of pricing.

How persistent is the Covid-induced stress in small accounts?
I would give the example of the first quarter of the current financial year when there was a containment announced for various cities and there were mobility restrictions for almost two months. That affected the ability of our people to carry out collections. But effective June 16, when the mobility restrictions were eased, our employees could reach out to customers and we saw a significant pullback. Collection efficiency has improved for the system as a whole as also for us. It isn’t weighing too much on our mind, but we need to be alert and active to ensure that the collection efficiency is the best.

With the high competition in the home loan segment, are you ensuring credit quality?
The lending is being done based on credit scores, which are quite reliable. Even otherwise, we have got sufficient margin in our loan-to-value, which takes care of the volatility seen in prices. So, we are not too worried about the risk complexion of the portfolio with the reduction in interest rates.

What are your plans for Yono and how much of the business is coming from there?
We have strengthened Yono over a period of time. It is not just for retail, we have Yono Business, Yono Agri and Yono Global. We are working on all these components and trying to see how best we can make the journeys easier for the customer and make the app more and more intuitive. During the current financial year, we have disbursed about Rs 9,000 crore worth of pre-approved personal loans to about 4.5 lakh-odd customers. We have sanctioned 8,000-odd home loans aggregating to about Rs 6,000 crore and more than 10 lakh agri gold loans aggregating to over Rs 15,000 crore. We have reviewed Kisan credit cards worth Rs 5,000 crore to about 3.5 lakh customers with the help of Yono. We have sold mutual funds worth Rs 4,700 crore and 1.28 lakh life insurance policies. We’ve also sold 21.72 lakh personal accident policies aggregating to Rs 123 crore worth of premium.

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