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Outlook for Indian banks is stable, says Moody’s, BFSI News, ET BFSI

November 30, 2021 root Banking & Finance

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Banks see robust festival season credit growth

November 17, 2021 root Banking & Finance

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New investments

Further, with stronger balance sheets, the organised corporate sector is well-placed to make new investments in emerging areas.

“As demand recovers, I am sanguine about corporate sector playing a major role in turning the investment cycle that will facilitate absorption of surplus liquidity for productive investment,” the Governor said.

In this background, Das emphasised that it is incumbent upon a competitive and efficient financial system to identify high productive sectors and reallocate resources to harness the growth opportunities.

He opined that banks, in particular, should be investment ready when the investment cycle picks up.

The Governor said: “Improved vaccination and reduced infections have materially reduced extreme health outcomes like hospitalisation and mortality.

“This has boosted consumer confidence. With additional boost coming from the festival fervour and pent-up demand, numerous high-frequency indicators suggest that economic recovery is taking hold.”

Per the data on Scheduled Banks’ Statement of Position in India, deposit accretion was at ₹3,40,496 crore in the reporting fortnight against a de-growth of ₹38,019 crore.

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Know how banks, financials performed this week, BFSI News, ET BFSI

October 23, 2021 root Personal Finance

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The Indian equity market witnessed volatility during the week, with domestic benchmark indices ending in the red in four out of five sessions. The Nifty50 on Friday closed at 18,114, with more than 1% weekly loss, but investors were prompt to take corrections as a buying opportunity.

The Nifty Bank remained the star performer, crossing the 40,000-mark, with more upside to come in banks. Banks, including PSU banks, were the main sectoral gainers while FMCG, Metals, Realty, Pharma and Auto were the largest losers.

According to experts, immediate support for Nifty50 is coming near the 18,000-mark. If the index manages to hold above the mark, the market can expect a swift pullback. Meanwhile, resistance is seen near 18,250-18,350.

Festival demand outlook, Jul-Sep earnings data backed by recovery in economic activity, vaccination numbers crossing 1 bln mark, developments around Asian markets, healthy FPIs and exports data, strong industrial production data, developments around the US economy, inflation fears, global energy crisis, were key driving factors this week.

Weekly Market wrap up: Know how banks, financials performed this week

Monday Closing bell: Market closes higher for seventh session, Nifty PSU Bank gaining nearly 4%

Extending their winning streak into seventh straight session, Indian indices ended with record gains on Monday, led by banks and financial stocks. The Sensex hit a record high of 61,963, while Nifty touched an all-time high of 18,525 intraday.

At the end of the day’s trade, the Sensex settled 0.75% higher at 61,765, while Nifty50 added 0.76% to close at 18,477. The broader market was positive, with midcap and smallcap stocks also clocking stellar gains.

The Nifty PSU Bank outperformed with nearly 4% gains to close at 2,824. The Nifty Bank index also ended the day with strong gains and ended 0.87% higher at 39,864, while Nifty Financial Services closed 0.46% higher at 19,034. Most of the banking stocks had a good run on Monday after strong numbers posted by HDFC Bank.

Tuesday Closing bell: Dalal Street closes in red, snaps seven-day winning streak

Sensex, Nifty witnessed a volatile session on Tuesday, ending in the red after having touched fresh all-time highs earlier in the day. At the closing bell, S&P BSE Sensex finished 0.08% lower at 61,716, while NSE Nifty 50 ended the day at 18,418, down from an intraday high of 18,604.

Broader markets fared worse than the benchmark indices to end deep in the red as Nifty Midcap 50 closed 2.22% lower, while the Smallcap 50 was down 1.47%

The Nifty Bank index touched 40,000 intraday but closed 0.36% lower at 39,540, while Nifty Financial Services ended flat with positive bias to close 0.18% higher at 19,068. After gaining nearly 4% in the previous session, Nifty PSU Bank Index ended 3.74% lower on Tuesday.

Weekly Market wrap up: Know how banks, financials performed this week

Wednesday Closing bell: Bears pull down benchmark indices, Bank Nifty close flat with marginal losses

Domestic equity indices continued to fall for the second consecutive session on Wednesday amid heightened volatility. S&P BSE Sensex 0.74% lower at 61,259, while the NSE Nifty 50 index fell 0.83% to settle at 18,266.

In broader markets, the BSE Midcap index shed 1.9% to close at 25,915, and the Smallcap index tumbled 2.3% to end at 28,879.

The trend remained largely negative, with only PSU bank indices closing in the green, up 1.54%. Bank Nifty closed flat with marginal loss of 0.6% at 39,518, while Nifty Financial Services closed 0.58% lower at 18,957. SBI, IndusInd Bank, and Bajaj Finance were the top gainers on the Nifty50 index while Bajaj Finserv was among the top laggards.

Thursday Closing bell: Market ends flat with negative bias, banks and financials outperform

A flat recovery, led by select financial shares, helped key benchmark indices recoup some of their losses. BSE Sensex fell over from the day’s high to end below the 61,000-mark at 60,923. The Nifty50 also oscillated between 18,384 and 18,048 during the day before signing off at 18,178.

The broader markets moved in tandem, with the BSE Midcap and Smallcap indices falling 0.4% and 0.7%, respectively.

The Nifty Bank index, meanwhile, ended 1.3% higher at 40,030 after hitting a new record high of 40,200 intra day, while Nifty Financial Services gained 1.22%, closing at 19,188. Kotak Mahindra Bank rallied 6.5% to close as the top Sensex gainer, followed by HDFC, ICICI Bank and SBI.

Stealing the show, Nifty PSU Bank index added nearly 3%, led by Union Bank of India, Indian Bank, Bank of Maharashtra, UCO Bank, and PNB.

Friday Closing bell: Markets end in red for fourth session, banks and financials fare well

Bulls attempted to make a comeback during the early trade on Friday but failed to hold their ground, forcing Dalal Street to close in the red for the fourth day running.

At close, S&P BSE Sensex fell 0.17% to close at 60,821 while NSE Nifty 50 dropped 0.35% to end at 18,114. Midcap and small-cap indices fared worse than largecap peers, lossing more than 1% each.

Bank Nifty index continued to outperform , closing at 40,323, up 0.73%, while Nifty Financial Services closed 0.59% higher at 19,302. Nifty PSU Bank ended the day with a loss of 0.47%.

HDFC was the top Sensex gainer, jumping 2.25%, followed by IndusInd Bank, and Kotak Mahindra Bank. PNB, Power Finance and Chola Invest were among top drags.

Banks and financial services- September quarter results

HDFC Bank: the bank on Saturday reported a standalone net profit of Rs 8,834 crore, up 18% from Rs 7,513 in the year-ago period. Core operating profits came at Rs 15,131.8 crore, up 18.24% YoY and 4.1% Q-o-Q.

HDFC Bank’s net interest income (NII) plus other incomes increased by 14.7% to Rs 25,085.2 crore. GNPAs were at 1.35% of gross advances as on September 30, 2021, as against 1.47% as on June 30, 2021.

Provisions came down 18.8% at Rs 3924.7 crore. The bank’s loans grew 15.5% from a year ago, about three times the banking sector’s rate.

Federal Bank: Private sector lender reported a near 50% jump in net profit for the September quarter on lower provisions and improvement in asset quality even as its total income shrunk.

The net profit stood at Rs 460 crore compared with Rs 308 crore in the year-ago period. Total income fell about 3 per cent at Rs 3,824 crore from Rs 3,937 crore.

Operating profit fell by about 9% at Rs 865 crore from Rs 947 crore over the same period. However, a 54% lower provisions at Rs 245 crore helped the net profit surge.

YES Bank: The bank today reported a 74.3% y-o-y growth in net profit to Rs 225 crore for the said quarter against analysts’ expectations of a Rs 31 crore net loss.

The NII fell 23.4% y-o-y to Rs 1,512 crore. The healthy bottomline performance of the lender was thanks to a sharp decline in provisions. YES Bank’s provisions for bad loans declined 65% to Rs 377 crore.

GNPAs ratio fell to 15% from 15.6% in the previous quarter. Similarly, net NPA ratio came in at 5.5% as against 5.8% in the previous quarter.

Bank of Maharashtra: Net profit jumps 103 % to Rs 264 cr. The bank’s recovery from written-off accounts stood at Rs 340 crore, including Rs 258 from the DHFL resolution. Net interest margin (NIM) improved to 3.27%, GNPA declined 5.56% and Provision coverage ratio improved to 92.38%.

Banks’ recovery and up-gradation stood at Rs 645 crore from Rs 556 crore last year around the same time.

IDBI Bank: The bank on Thursday reported a 75% jump in net profit to Rs 567 crore from Rs 324 crore in the same period of the last fiscal. The NII grew 9% to Rs 1,854 crore, NIM improved to 3.02%, compared to 2.70% in the second quarter last fiscal.

Bank’s GNPAs declined to 20.92% against 25.08% a year ago. Net NPAs improved 1.62% from 2.67%. Provisions for bad loans and contingencies also rose to Rs 434 crore.

HDFC Life Insurance: The life insurer on Friday announced a 15.9% fall in its consolidated net profit to Rs 274.16 crore in Jul-Sep, as against Rs 326.09 crore a year ago.

Total income, however, rose to Rs 20,478 crore against Rs 16,426 crore a year ago, while the net premium income increased by 52% to Rs 11,445 crore from Rs 10,056 crore, the insurer said in a regulatory filing.

Value of new business (VNB) recorded a robust 30% growth to Rs 1,086 crore over last year. Profit after tax on the other hand stood at Rs 577 crore for H1, 26% lower than H1 FY21.

LIC Housing Finance: Net profit for the said quarter fell 69% at Rs 248 crore as compared with Rs 791 crore in the year-ago period. NIM for the quarter dipped to 2 per cent as against 2.20% in the June quarter.

The company’s total income for the quarter was lower at Rs 4,715 crore as compared to Rs 4,982 crore during the year-ago period. The NII was Rs 1,173 crore as against Rs 1,238 crore.

Its total loan portfolio stood at Rs 2.38 lakh crore registering an 1% y-o-y growth. During the quarter, total disbursements grew 29%. Retail home loan disbursements grew 38%.

L&T Finance Holdings: The company on Wednesday reported a 10% decline in its consolidated net profit to Rs 223 crore. Total income fell to Rs 3,134.46 crore as against Rs 3,508.91 crore during the year-ago period.

Rural finance business saw the highest-ever Q2 disbursement at Rs 4,987 crore, a jump of 51% quarter-on-quarter. The total disbursements in the quarter stood at Rs 7,339 crore.

GNPAs stood at 5.74% during the quarter, amounting to Rs 4,796 crore. Debt-to-equity ratio stood at 4.40 in Q2FY22. Capital adequacy improved to 25.16%.

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RBI’s nod to SFBs and holding companies merger can unlock value for Ujjivan, BFSI News, ET BFSI

July 12, 2021 root Banking & Finance

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Ujjivan Small Finance Bank said it would initiate steps for the amalgamation of the holding company Ujjivan Financial Services Ltd with the bank after RBI’s nod. Samit Ghosh, Founder, Ujjivan Financial Services, helps us understand how it may be good news for shareholders.

Now that, RBI has given nod to SFBs and respective holding companies to apply for a merger, help us understand how really does this help in unlocking share value for you?
This is extremely good news which we were expecting for quite some time and the first in the line of course is Equitas. Equitas and us, we worked earlier on this and we are very glad, it has come through. Basically, there is a holding company structure in which is the Ujjivan Financial Services Ltd. which owns the bank Ujjivan Small Finance Bank and we own 83% of the bank so, what the RBI has committed is that the holding companies can reverse merge into the bank and there will be one entity. Before that, there was the uncertainty of this and consequently, we are the holding company stock– UFSL stock was anywhere between 40% to 50% discount. Now, this discount will gradually narrow, so, there is a tremendous upside on the Ujjivan Financial services stock.The bank stock depends on how the bank actually performs in terms of business, but this is extremely good news for the Ujjivan Financial Services stock- the holding company stock, and that was the original shareholders. We have about 80,000 retail shareholders out of which there are at least 10,000-15,000 employee shareholders, who originally invested in the bank and this is extremely good news for them.

Our fifth year is in February 2022, and we can apply three months before that -for the reverse merger—with the RBI as per its new direction. RBI will evaluate the proposal and see whether we can go ahead, chances are that things are normal, we will be allowed to reverse merge. There is one issue which was there, by the fifth year the shareholding of the holding company was required to come down to 40% but we are quite confident that since RBI is allowing us to totally reverse, much of it- at the end of five years, going to be waved, so we do not think that is an issue at all. It is good news for the holding company shareholders.

When will this merger process be completed?
We will apply late October-early November and then RBI will give us the approval, I think the process cannot start before our fifth anniversary, which is early February 2022 and the whole legal and all that clauses NCLT etc. can take anywhere between eight to 12 months, so, that is the kind of time frame we are looking at.

Post the merger which entity will remain listed?
The bank will remain, the holding company will completely disappear so all the shareholders of the holding company will then become shareholders of the bank.

What has been the impact of the second wave on your business, are you now seeing faster recovery as compared to what we have witnessed last year and in light of that what would be the outlook on your growth disbursements for FY22?
I am not part of the bank, I think this question you should raise with Nitin Chugh, who is the managing director of the bank but what I can tell you overall in the industry-the second wave has receded to a certain extent, things are much better now, but this kind of crisis, which we are facing is an unprecedented crisis. We had faced an earlier crisis, demonetisation, which was like one shock kind of crisis and we overcame, but here, because of the multiple waves of the COVID crisis–it hits our customer and business in waves and the ultimate solution getting the population of India 70% or 80% vaccinated. Unfortunately today, the vaccine availability is still an issue, hopefully, in a couple of months from the production of the vaccine to the scheduling of the production in India, there will be abundant supply. There was a hesitancy even among our customer base before the second wave, but post the second wave that hesitancy has also gone. As as soon as the vaccines are available and we are able to vaccinate all our customer base or the entire population in India, then there is going to be a solution to this problem.

So, the most important thing to do is proactively help our customer base to get vaccinated, meanwhile RBI has given a lot of restructuring, opportunities for good customers and also to provide them additional cash, which is very important because people have either exhausted their savings or their working capital, and not only the restructuring but providing them the extra cash would help them but this has to be carefully done only for our good customers and that process is sort of a lengthy process. So, I think there is time till September, the bank is undertaking that and most micro finance institutions are undertaking that, it has to be done very carefully and I think that will help us to get out of the crisis.

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Analysts, BFSI News, ET BFSI

June 27, 2021 root Personal Finance

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New Delhi: Macroeconomic data, the pace of vaccination and global trends would be the major drivers for the domestic equity markets this week, analysts said. Besides, the progress of monsoon will also be monitored.

“This week marks the beginning of the new month also, so participants will be eyeing the high-frequency indicators like auto sales and manufacturing PMI during the week. Besides, the progress of monsoon will also remain on their radar.

“While the pace of vaccination drive is certainly encouraging as it gives hope of further unlocking by the states, the cases of new COVID variant might derail the plans,” said Ajit Mishra, VP Research, Religare Broking.

“This week, the market is expected to continue its focus on global events as the domestic market lacks key triggers. Manufacturing PMI data is the major domestic economic data awaiting its release this week.” Vinod Nair, Head of Research at Geojit Financial Services said.

Market participants would also monitor the movement of Brent crude, investment pattern of foreign institutional investors and the rupee.

Nirali Shah, Head of Equity Research, Samco Securities said, “Domestic indices are expected to mirror global equities. June auto sales numbers would give investors a fair idea around the revival of ground-level sentiment.”

“Investors will be watching the progress on daily caseload, vaccination ramp-up and monsoon progress in the near term,” said Binod Modi, Head Strategy at Reliance Securities.

During the last week, the 30-share BSE benchmark gained 580.59 points or 1.10 per cent.

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Covid-19: UK-based banks announce financial and medical support for employees in India

May 22, 2021 root Banking & Finance

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Barclays and Standard Chartered Bank have announced a slew of measures, including salary advance, enhanced insurance limits and doctors on call, for their employees in India to help them deal with the Covid-19 pandemic.

Barclays has introduced a new set of measures, including facilitating vaccinations, enhanced insurance limits, uncapped paid leave, financial aid and support channels, for its over 20,000 employees in India to deal with the Covid-19 pandemic.

Some of the aforementioned measures will also be available to the families of the London-headquartered Barclays, whose India operations include banking, securities, technology and shared services.

Also read: India inc attract customers with ‘pandemic’ focussed products

The Bank, in a statement, said hospitalisation insurance limits have been raised and certain costs not covered by insurance, such as PPE equipment charges, will be covered.

“All employees can take uncapped paid leave to give sufficient time to recuperate from Covid-19, get vaccinated, and for taking care of a family member.

“Junior colleagues will receive one month’s salary in advance to help manage unforeseen expenses,” it added.

Also read: Several businesses suspend operations in India, help staff as coronavirus ravages

The Bank said employees have access to a 24/7 Covid care helpline, online doctor consultations, a peer-to-peer support network, and a 24/7 confidential helpline that provides free counselling services.

Standard Chartered said its comprehensive benefit programme for its over 25,000 employees in India will include financial reimbursement of expenses incurred towards Covid-19 related medical treatment for parents and parent-in laws up to ₹2.50 lakh per patient with ICU admission and up to ₹1.25 lakh per patient with any other hospitalisation for Covid-19 treatment.

Also: As staff call in sick, India Inc turns a care-giver with well-being interventions

The London-headquartered Bank said it will provide interest free salary advance of up to six months gross pay to meet the expenses incurred on account of Covid-19 related medical emergencies. The repayment will commence following a six-month moratorium period.

In the unfortunate case of an employee passing away, their family will receive financial protection in the form of four times of the annual gross compensation, Standard Chartered said in statement. This increased insurance cover is applicable to all employees, it added.

On medical support, the Bank has constituted a team to assist employees in the hospitalisation process.

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FinMin asks States to vaccinate banking industry personnel on ‘priority’ basis

May 14, 2021 root Banking & Finance

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The Finance Ministry has once again written to the States requesting them to consider putting in place a special dispensation for vaccinating the staff of banks, insurance companies, business correspondents, payment systems and other financial services providers on ‘priority’ basis.

In a letter written on Friday to the Chief Secretaries of States, Debashish Panda, Secretary, Department of Financial Services (DFS), has re-emphasised their critical role in ensuring that branches/offices remain open and functional and continue to provide the complete suite of services to customers. The DFS letter has highlighted that vaccinating the staff of banks and other financial services providers on priority will go a long way in boosting their morale and enhancing their enthusiasm for seamless provision of financial services. The letter pointed out that many bank officials had even succumbed to the virus with some of them losing their lives.

“Since bank staff have to necessarily commute from their homes to their offices/branches and the said officers/branches have to function and remain physically open, may I request your personal attention in kindly instructing all district my magistrates/superintendent of police and other local authorities to cooperate with bank and financial services employees, provide adequate safety and security to them and not hinder or impede their functioning or movement,” said Panda in his letter. It may be recalled that the finance Ministry had, on April 22, written to the State governments to put in place a special system to vaccinate the employees of banks, insurance companies and financial services providers, including banking correspondents and cash logistic providers, on a priority basis.

Unfortunate instances

Besides the request to the States for vaccinating bankers on priority, the DFS secretary has also drawn attention to some unfortunate instances that had taken place recently in different States/UTS, where bank employees have been manhandled by State law enforcement authorities. “Likewise, offices of banks and branches have occasionally been ordered to shut down even during permitted banking hours, accompanied by threats. While bank employees are already braving risks to their health and need to be assured about their safety, these incidents result in the exact opposite and end up demoralising them and their families, which leads to disruption in services. This becomes an impediment to account holders access to funds in their hours of need, disbursement of DBT payments, extension of credit to mitigate disruptions to business which should otherwise be uninterrupted and seamless,” said Panda.

He has also highlighted that the Home Ministry had, in its April 29 order, declared banking industry as providers of essential services.

The Parliamentary Standing Committee on Home Affairs on the management of Covid 19 pandemic had recently recognised banking and other financial services industry personal as ‘Covid Warriors’.

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States, UTs not giving priority to bankers to get vaccinated, says AIBOC

May 14, 2021 root Banking & Finance

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The All India Bank Officers’ Confederation (AIBOC) has requested the Union Ministry of Health Services & Family Welfare (MoHFW) to suitably intervene so that bank employees and other service providers can avail of Covid-19 vaccination easily and on priority basis.

The Association said despite the Parliamentary Standing Committee on Home Affairs recognising bankers as frontline Covid-19 warriors, till date no perceptible initiative has been taken by any State Government/Union Territory (UT), save and except Arunachal Pradesh, for arranging vaccination to the bank employees/workers and their families on priority basis.

Vaccinate banking and insurance sector staff on ‘priority basis’: FinMin to States

‘Undue procrastination’

Emphasising that bankers are rendering yeoman service to the nation during the pandemic to keep the wheels of the economy moving, Soumya Datta, General Secretary, AIBOC, said: “As per information available, nearly 1,500 bankers have succumbed to the virus. The toll has been heavy in the resurgent second wave which has wreaked havoc. It is extremely unfortunate that several young employees and officers below the age of 45 have succumbed to this pandemic.”

Banks roll out special schemes to protect, treat employees amidst Covid surge

Datta observed that had these bankers been vaccinated in time along with other frontline workers, number of precious lives could have been saved.

“This undue procrastination has caused deep angst and resentment across the nation amongst bankers. While all State Governments and UTs arranged for vaccination for the frontline workers particularly for healthcare workers and police department, the bank employees and officials continue to be ignored,” he said.

In a letter to Rajesh Bhushan, Secretary, MoHFW, Datta requested him take up the issues with appropriate authorities in States and UTs for procuring sufficient quantity of vaccine for Bankers, their family members and all service providers, including casual/ contractual workers, business correspondents, workers in cash logistic companies and cash-in-transit companies connected with banks, ATM maintenance personnel, banking correspondents, and security guards on priority basis.

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Karnataka Bank will focus on cost-light liability portfolio, says MD

May 7, 2021 root Banking & Finance

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The Mangaluru-based Karnataka Bank navigated the challenges posed by the Covid pandemic last year, and earned a net profit of ₹451.20 crore in the first nine months of 2020-21 against the profit of ₹431.78 crore for the full year of 2019-20.

In an interview to BusinessLine, Mahabaleshwara MS, MD and CEO of the bank, highlighted the strategies that helped the bank to perform better, and its plans for the current financial year amidst the second Covid wave. Excerpts from interview:

India is witnessing the second wave of Covid. How is your bank planning to tackle this fresh challenge?

The first half of the last fiscal was spent in understanding and fighting the pandemic while the business was muted and there was no clear picture about the Covid pandemic. Our innovative business principle of ‘conserve, consolidate and emerge stronger’ immensely helped us to tide over the said crisis-like situation and be able to come out with satisfactory numbers. But now the situation is different. At least now, we have one year of experience in navigating through the pandemic and that is a huge advantage.

To overcome Covid wave 2.0, as in the previous fiscal, our bank will continue to practice the principle of ‘conserve, consolidate and emerge stronger’ along with the required cost cutting measures this year too. We will continue to be cautious and conservative. We will focus on developing a cost-light liability portfolio by concentrating more on CASA and low-cost retail term deposits besides developing a healthy asset portfolio which is largely protected against the ill effects of pandemic in the long run to tide over the economic challenges associated with the Covid wave 2.0.

Your recent letter to the shareholders mentioned that the bank is aiming at a ‘moderate’ growth of 12 per cent for 2021-22. What are the reasons for this moderate outlook?

Yes. The bank has set a moderate growth target of 12 per cent for business turnover for the current fiscal. Considering the Covid second wave that is sweeping the country with enormous impact on health and business in the short and medium term, we expect growth challenges in key sectors during the first half of the current year. Even though MSME and agriculture sectors are less impacted which are the main components of our retail loan book growth, the entire ecosystem of the economy already took a shock and it may need sufficient time to come out of this, if there are no more waves of Covid going forward.

We also expect the customers to be conservative in investing in new or big projects or expansion of business. Our focus will be to conserve, maintain the asset quality and grow steadily with quality during this fiscal. However, the bank will always be in a ‘ready mode’ to catch up business at any stage of economic rebound, beating our own guidance level. We have superior digital loan journey infrastructure and in a better position to encash such opportunities on the very first sight of economic turnaround.

Do you think the fresh Covid wave will lead to the increase in the NPAs in the coming days? If yes, how are you planning to handle that?

Even though the economic impact of the second wave of Covid pandemic and the related lockdowns ,etc have just started unfolding, no one can take it lightly and it may be too early to foresee the impact. The banking industry in India has fully exhibited its resilience and was able to face the challenges posed by the first wave of Covid, mainly because of the ‘economic vaccines’ in the form of regulatory packages such as moratorium, OTR / MSME restructuring, Emergency Credit Line Guarantee Scheme, charging of simple interest during moratorium, etc announced by the Government / Reserve Bank of India.

By opting for the said ‘economic vaccines’, the borrowers managed their cash flow with extended loan period. However, now the country is better placed with all its populace in the age group of 18 years and above are poised to get vaccines. Further, the borrowers have also remodelled their business and became more agile. However, it is also expected that revival and recovery may take more than the expected time. RBI has also recently announced a ‘booster dose’ with various relief measures both for the bankers as well as individual borrowers, small borrowers and MSMEs. This is expected to give the required impetus to the economy. Hence, the response for Covid 2.0 and going beyond, should be collective, comprehensive, decisive and long lasting besides forward looking.

Going by the current trend (until a major portion of India gets vaccinated), Covid waves are likely to recur at regular intervals. How is your bank planning to handle this?

The good news is that the Government has allowed vaccination for individuals aged 18 years and above. With vaccination initiatives and also with more awareness being created among the public about the this, it is hoped that maximum people would get vaccinated in about two-three months considering the current progress. It is expected that once the herd immunity is developed, the surge of Covid would also come down significantly. Like previous fiscal, our bank would continue to be cautious in lending and would ensure adding remunerative and quality assets besides focusing on a cost-light liability portfolio. Necessary steps will be taken at our disposal to protect the interest of all our stakeholders. With the strong fundamentals and improved capital adequacy ratio, we are confident of sailing smooth this year also in spite of unforeseen challenges.

Like earlier economic shocks such as the global recession, global financial crisis of 2007-08, this time too Indian banking sector, I am sure, will withstand the challenges and come out with flying colours. We will stand rock solid with the Government, RBI and the customers.

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Get vaccinated, get a discount, offers Reliance General Insurance

May 4, 2021 root Banking & Finance

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In a bid to encourage Covid-19 vaccination, Reliance General Insurance has announced that it would offer additional discount to customers who are either purchasing or renewing the Health Infinity cover.

“The company aims to provide additional ease to its customers who are in the process to either buy or renew their Health Infinity insurance policy with Reliance General Insurance, by offering an additional one-time 5 per cent discount to customers who have taken the Covid-19 vaccination,” the private sector insurer said in a statement on Tuesday.

Strong winds of change set to sweep health insurance sector

Eligible if first dose taken

The additional discount will be over and above the other discounts applicable at the time of buying the policy, it further said, adding that customers who have taken the first dose of the vaccine would also be eligible for the benefit.

Health insurance premium may not rise this year

“By the means of this incentive, we want to encourage individuals to prioritise their health at this critical hour and get themselves vaccinated at the earliest,” said Rakesh Jain, CEO, Reliance General Insurance.

While vaccination was available for all citizens above 45 years of age, from May 1, anyone above 18 years of age is eligible for vaccination.

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