Tag: Decline

Digital payments remain strong, marginal decline in November

Banking & Finance

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Digital payments continued to maintain a strong momentum in November although the value and volume of transactions fell marginally compared to the record highs of October that was led by festive season spends.

The Unified Payments Interface, which crossed the 400 crore mark for the number of transactions in October, continued to remain well above the level.

However, the number of transactions on the UPI platform declined slightly to 418 crore in November 2021 compared to 421 crore transactions recorded in October, according to data from the National Payments Corporation of India.

The value of transactions processed through UPI last month was also buoyant but slightly lower at ₹7.68 lakh crore compared to ₹7.71 lakh crore in October.

Experts believe that UPI will continue to register robust growth and acceptance given the multiple use cases including the AutoPay feature and IPO subscription.

On a daily basis on an average, over 13 crore transactions worth at least ₹25,000 crore took place through UPI in November.

IMPS transactions

Transactions on the Immediate Payment Service (IMPS) platform also remained robust but saw a similar decline to 41.2 crore in November from 43.06 crore in October. The value of transactions processed through IMPS fell to ₹3.64 lakh crore in November from ₹3.7 lakh crore a year ago.

As many as 21.41 crore toll collection related transactions worth ₹3,177.17 crore took place through NETC FASTags in November compared to 21.42 crore payments amounting to ₹3,356.74 crore in October 2021.

Payments through AePS however, bucked the trend to rise marginally in terms of value in November 2021. As many as 9.46 crore transactions worth ₹25,687.66 crore took place through AePS last month compared to 9.68 crore transactions totalling ₹25,410.12 crore in October.

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AU Bank reports 13% decline in Q2FY22 net profit

Banking & Finance

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AU Small Finance Bank reported a 13 per cent year-on-year (y-o-y) decline in second quarter net profit at ₹279 crore despite robust increase in net interest income (NII) as the bottomline in the year-ago period was bumped up by income from sale of part stake in Aavas Financiers.

The Jaipur-headquartered bank had reported a net profit of ₹322 crore in Q2FY21, including ₹126 crore from the aforementioned sale.

Net interest income (difference between interest earned and interest expended) was up 34 per cent y-o-y to ₹753 crore (₹561 crore in the year-ago quarter).

Other income, including processing fee, profit/loss on sale of investments, income from dealing in priority sector lending certificates, declined about 27 per cent y-o-y to ₹191 crore (₹261 crore).

The bank said profit on sale of investment for the previous year includes profit earned on sale of equity shares (part stake) held in Aavas Financiers.

Write-back

AU SFB received a write-back of ₹170 crore in non-performing asset (NPA) provisions in the reporting quarter. It had made a provision of ₹16 crore in the year-ago quarter.

Gross NPA position improved to 3.2 per cent of gross advances as on September-end 2021 against 4.3 per cent as at June-end 2021. Similarly, net NPA reduced to 1.7 per cent from 2.3 per cent.

Sanjay Agarwal, MD & CEO, emphasised that if the one-time gain of ₹126 crore due to part stake sale in Aavas is excluded from the year-ago period net profit, then the bank has posted a 42 per cent increase in net profit in the reporting quarter.

He observed that as the economy is improving, the bank’s customers are coming back on the loan repayment track.

Assets under management were up 24 per cent to ₹38,011 crore. Deposits increased 45 per cent y-o-y to ₹38,011 crore.

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LIC Housing Finance reports 69 per cent y-o-y decline in Q2 net profit at ₹248 crore

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LIC Housing Finance (LIC HFL) reported a 69 per cent year-on-year (yoy) decline in second quarter net profit at ₹248 crore against ₹791 crore in the year-ago quarter due to increase in provisions on account of implementation of resolution plans, especially in the case of corporate entities.

The housing finance company upped the provisions by ₹424.49 crore during the quarter in respect of 113 corporate entities. It had an exposure aggregating ₹4,629.46 crore to them before implementation of the resolution plans.

Total income, including other income, declined 5.35 per cent to ₹4,715 crore. Net interest income dropped 5.25 per cent y-o-y to ₹1,173 crore.

Total disbursements rise

During the quarter, total disbursements at ₹16,110 crore were up 29 per cent y-o-y.

Within overall disbursements, individual home loan disbursements were at ₹14,330 crore as against ₹10,373 crore, up by 38 per cent, whereas project loan disbursements were lower at ₹353 crore as against ₹803 crore.

Net interest margins stood at 2 per cent as against 2.20 per cent for Q1FY22.

Y Viswanatha Gowd, MD & CEO, said, “Business gradually improved towards the end of first quarter in line with the overall sentiments. This is reflected in higher disbursements in Q2…”

“The company expects a better Q3 which coincides with the festival season and hopes to grow the business volumes in the quarters ahead,” he said.

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Max Financial Services net down 49% in Q1 sequentially

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Max Financial Services Limited (MFSL) on Tuesday reported a 49 per cent sequential decline in consolidated net profit for the first quarter ended June 30 at ₹36 crore as compared to net profit of ₹70 crore recorded in the previous March quarter.

On a year-on-year basis, net profit for the quarter under review declined 80 per cent from net profit of ₹182 crore recorded in the same quarter last fiscal.

Total income for the quarter ended June 30, 2021 too declined sequentially by 39 per cent to ₹5943 crore as compared to total income of 9,760 crore in the previous March quarter. However, the total income for the quarter under review was up 7.7 per cent as compared to total income of ₹ 5,517 crore in same quarter last fiscal.

MFSL’s sole operating subsidiary, Max Life registered a 32 per cent jump in new business premium (on APE basis) to ₹875 crore during the quarter under review from ₹661 crore in the year-ago period.

Further, the renewal premium income (including group) rose 21 per cent to ₹2,244 crore, taking the gross written premium to ₹3,484 crore, a spurt of 27 per cent over the first quarter of the previous financial year.

Mohit Talwar, Managing Director, Max Financial Services, said in a statement “Strong focus towards customer measures has helped deliver superior performance across health parameters and will continue to remain an important priority due to the impact of the second wave of the Covid-19.”

“Our partnership with Axis Bank after the conclusion of the deal in April and the longstanding assurance with YES Bank helped partnership channels grow 52% in the first quarter of FY22”, he added.

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