Reserve Bank of India – Press Releases

Press Releases

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Reserve Bank of India vide directive DCBS.CO.BSD-I./D-9/12.22.111/2016-17 dated March 30, 2017 had placed The Kapol Cooperative Bank Ltd Mumbai, Maharashtra under Directions from the close of business on March 30, 2017 for a period of six months. The validity of the directions was extended from time-to-time, the last being up to October 31, 2021.

2. It is hereby notified for the information of the public that, the Reserve Bank of India, in exercise of powers vested in it under sub-section (1) of Section 35 A read with Section 56 of the Banking Regulation Act, 1949, hereby directs that the aforesaid Directions shall continue to apply to the bank till April 30, 2022 as per the directive DOR.MON.D-43/12.22.111/2021-22 dated October 27, 2021, subject to review.

3. All other terms and conditions of the Directives under reference shall remain unchanged. A copy of the directive dated October 27, 2021 notifying the above extension is displayed at the bank’s premises for the perusal of public.

4. The aforesaid extension and /or modification by the Reserve Bank of India should not per-se be construed to imply that Reserve Bank of India is satisfied with the financial position of the bank.

(Yogesh Dayal)     
Chief General Manager

Press Release: 2021-2022/1125

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3 Stocks To Buy And Power Your Portfolio In November

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Gujarat Gas

Motilal Oswal sees a near 25% upside in the stock of Gujarat Gas and has recommended buying the same for an upside target of Rs 775.

“In our conference last month, the company had reiterated its intent to sustain margins at Rs 4.5-5.5/scm for the full year FY22/23. To combat the current high spot LNG prices, Gujarat Gas took a price hike of Rs 9.5/scm in PNG-industrial, taking its realisation to Rs 47/scm (highest ever). This hike was in addition to the Rs 4.5/scm hike taken in the last week of Aug’21,” the brokerage has said.

According to the brokerage the addition of 60+ new industrial units at Morbi, expansion of current units, and emergence of a ceramic cluster at Aniyari (potential of 0.5mmscmd) will continue to drive the company’s volume growth.

“We maintain Buy and value the stock at 26x Dec’23E EPS to arrive at our target price of Rs 775. Any underperformance by Gujarat Gas on the EBITDA/scm or volume growth front v/s our projections poses a key risk for the stock,” the brokerage has said.

Dalmia Bharat

Dalmia Bharat

Motilal Oswal also has a buy call on the stock of Dalmia Bharat with a price target of Rs 2,500, as against the current market price of Rs 20212.

Dalmia Bharat has commenced commercial production at its 2.25mt grinding unit (Line 2) in Cuttack, Odisha and has also begun trial-runs at the acquired plants of Murli Industries (3mt grinding capacity in Maharashtra).

“We estimate Dalmia Bharat to achieve a sales volume CAGR of 10.8% over FY21-24E, driven by its capacity expansions. The company’s capital allocation policy aims to improve shareholder return and should be taken positively if executed properly. We maintain our estimates and Buy rating on the stock,” the brokerage has said.

AU Small Finance Bank

AU Small Finance Bank

AU Small Finance Bank reported a net profit of Rs 2.8 billion (up 42% YoY – adjusted for the AAVAS sale in 2QFY22; MOSLe: INR2.2b), driven by lower provisions, which stood negligible at Rs 36 million due to sharp recoveries and upgrades, resulting in a release of provisions. These provisions were utilized to increase contingent provisions, which now stand at Rs 3 billion (0.84% of loans).

AU Small Finance Bank reported a strong 2QFY22, led by robust core operating performance, while negligible provisions drove the sharp earnings beat. Asset quality improved significantly, supported by healthy recoveries/upgrades, while collection efficiency improved to 109%.

“On the business front, Retail deposit mix continues to improve, while AUM growth remains strong. We will review our estimate and target price after the earnings concall on 29th Oct’21,” the brokerage has said.

Disclaimer

Disclaimer

The above stocks are picked from the brokerage report of Motilal Oswal. 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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Reserve Bank of India – Press Releases

Press Releases

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(Amount in ₹ crore, Rate in Per cent)
  Volume
(One Leg)		 Weighted
Average Rate 		Range
A. Overnight Segment (I+II+III+IV) 3,534.55 2.83 1.95-3.35
     I. Call Money 964.95 2.98 2.50-3.18
     II. Triparty Repo 2,554.60 2.78 1.95-3.35
     III. Market Repo 15.00 3.00 3.00-3.00
     IV. Repo in Corporate Bond 0.00   –
B. Term Segment      
     I. Notice Money** 6,118.36 3.26 2.00-3.55
     II. Term Money@@ 394.00 – 3.40-4.25
     III. Triparty Repo 3,74,364.05 3.30 3.10-3.40
     IV. Market Repo 1,03,806.01 3.32 2.00-3.45
     V. Repo in Corporate Bond 0.00 – –
  Auction Date Tenor (Days) Maturity Date Amount Current Rate /
Cut off Rate
C. Liquidity Adjustment Facility (LAF) & Marginal Standing Facility (MSF)
I. Today’s Operations
1. Fixed Rate          
     (i) Repo          
    (ii) Reverse Repo Fri, 29/10/2021 3 Mon, 01/11/2021 1,84,740.00 3.35
    (iii) Special Reverse Repo~          
    (iv) Special Reverse Repoψ          
2. Variable Rate&          
  (I) Main Operation          
     (a) Reverse Repo          
  (II) Fine Tuning Operations          
     (a) Repo          
     (b) Reverse Repo          
3. MSF Fri, 29/10/2021 3 Mon, 01/11/2021 455.00 4.25
4. Special Long-Term Repo Operations (SLTRO) for Small Finance Banks (SFBs)£          
5. Net liquidity injected from today’s operations
[injection (+)/absorption (-)]*		       -1,84,285.00  
II. Outstanding Operations
1. Fixed Rate          
    (i) Repo          
    (ii) Reverse Repo          
    (iii) Special Reverse Repo~ Fri, 22/10/2021 12 Wed, 03/11/2021 5,465.00 3.75
    (iv) Special Reverse Repoψ Fri, 22/10/2021 12 Wed, 03/11/2021 2,900.00 3.75
2. Variable Rate&          
  (I) Main Operation          
     (a) Reverse Repo Fri, 22/10/2021 12 Wed, 03/11/2021 4,18,395.00 3.99
  (II) Fine Tuning Operations          
     (a) Repo          
     (b) Reverse Repo Tue, 26/10/2021 7 Tue, 02/11/2021 2,00,019.00 3.99
3. MSF          
4. Long-Term Repo Operations# Mon, 17/02/2020 1095 Thu, 16/02/2023 499.00 5.15
  Mon, 02/03/2020 1094 Wed, 01/03/2023 253.00 5.15
  Mon, 09/03/2020 1093 Tue, 07/03/2023 484.00 5.15
  Wed, 18/03/2020 1094 Fri, 17/03/2023 294.00 5.15
5. Targeted Long Term Repo Operations^ Fri, 27/03/2020 1092 Fri, 24/03/2023 12,236.00 4.40
  Fri, 03/04/2020 1095 Mon, 03/04/2023 16,925.00 4.40
  Thu, 09/04/2020 1093 Fri, 07/04/2023 18,042.00 4.40
  Fri, 17/04/2020 1091 Thu, 13/04/2023 20,399.00 4.40
6. Targeted Long Term Repo Operations 2.0^ Thu, 23/04/2020 1093 Fri, 21/04/2023 7,950.00 4.40
7. On Tap Targeted Long Term Repo Operations€ Mon, 22/03/2021 1095 Thu, 21/03/2024 5,000.00 4.00
  Mon, 14/06/2021 1096 Fri, 14/06/2024 320.00 4.00
  Mon, 30/08/2021 1095 Thu, 29/08/2024 50.00 4.00
  Mon, 13/09/2021 1095 Thu, 12/09/2024 200.00 4.00
  Mon, 27/09/2021 1095 Thu, 26/09/2024 600.00 4.00
  Mon, 04/10/2021 1095 Thu, 03/10/2024 350.00 4.00
8. Special Long-Term Repo Operations (SLTRO) for Small Finance Banks (SFBs)£ Mon, 17/05/2021 1095 Thu, 16/05/2024 400.00 4.00
Tue, 15/06/2021 1095 Fri, 14/06/2024 490.00 4.00
Thu, 15/07/2021 1093 Fri, 12/07/2024 750.00 4.00
Tue, 17/08/2021 1095 Fri, 16/08/2024 250.00 4.00
Wed, 15/09/2021 1094 Fri, 13/09/2024 150.00 4.00
D. Standing Liquidity Facility (SLF) Availed from RBI$       21,695.80  
E. Net liquidity injected from outstanding operations [injection (+)/absorption (-)]*     -5,19,441.2  
F. Net liquidity injected (outstanding including today’s operations) [injection (+)/absorption (-)]*     -7,03,726.2  
G. Cash Reserves Position of Scheduled Commercial Banks
     (i) Cash balances with RBI as on 29/10/2021 6,63,314.11  
     (ii) Average daily cash reserve requirement for the fortnight ending 05/11/2021 6,36,507.00  
H. Government of India Surplus Cash Balance Reckoned for Auction as on¥ 29/10/2021 0.00  
I. Net durable liquidity [surplus (+)/deficit (-)] as on 08/10/2021 11,92,495.00  
@ Based on Reserve Bank of India (RBI) / Clearing Corporation of India Limited (CCIL).
– Not Applicable / No Transaction.
** Relates to uncollateralized transactions of 2 to 14 days tenor.
@@ Relates to uncollateralized transactions of 15 days to one year tenor.
$ Includes refinance facilities extended by RBI.
& As per the Press Release No. 2019-2020/1900 dated February 06, 2020.
* Net liquidity is calculated as Repo+MSF+SLF-Reverse Repo.
# As per the Press Release No. 2020-2021/287 dated September 04, 2020.
^ As per the Press Release No. 2020-2021/605 dated November 06, 2020.
€ As per the Press Release No. 2020-2021/520 dated October 21, 2020, Press Release No. 2020-2021/763 dated December 11, 2020, Press Release No. 2020-2021/1057 dated February 05, 2021 and Press Release No. 2021-2022/695 dated August 13, 2021.
¥ As per the Press Release No. 2014-2015/1971 dated March 19, 2015.
£ As per the Press Release No. 2021-2022/181 dated May 07, 2021 and Press Release No. 2021-2022/1023 dated October 11, 2021.
~ As per the Press Release No. 2021-2022/177 dated May 07, 2021.
ψ As per the Press Release No. 2021-2022/323 dated June 04, 2021.
Ajit Prasad
Director   
Press Release: 2021-2022/1124

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Surge in non-Covid health cover claims, average ticket size: ICICI Lombard CEO

Banking & Finance

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In a breather to non-life insurance companies, Covid-related health insurance claims have dropped with the ebbing of the second wave of the pandemic.

However, there has been a rise in non-Covid-related health claims and their average ticket size has risen significantly, said Bhargav Dasgupta, Managing Director and CEO, ICICI Lombard General Insurance. If this trend continues, it could impact health insurance premium.

Average ticket size

According to Dasgupta, the insurer has seen a 20 per cent increase in the average ticket size of these claims over two years, from 2019-20 to now, which is about 10 per cent compounded growth.

“As Covid claims have come down, the frequency of non-Covid health claims has gone up. Some of the other infectious diseases have spiked this year such as malaria, chikungunya and dengue. Also, there was some amount of backlog of the elective surgeries that have now caught up in this quarter,” he said in an interview with BusinessLine, adding that the ticket size of claims has gone up for similar ailments.

“We’ll have to see if it’s a temporary increase or permanent in nature. This could perhaps be because of additional RT-PCR tests that hospitals have do or some more procedures that they’re following, but hopefully that will stabilise,” he said, adding that if healthcare costs continue to increase at the level they are going up it could start impacting the premium for customers.

Dasgupta said that the insurer increased pricing on its corporate health portfolio, but is on the wait-and-watch mode on retail health insurance.

“On the retail side, we have to go back to the IRDAI and seek price increase. As of now, we’ve not done that. This is just one quarter data; we want to wait for this fiscal and see the data and then decide. We are not using the Covid spike to ask for a price increase because that would not be fair on customers,” he stressed.

Between April and September 2021, the insurer received 72,059 Covid-related health claims and 2,38,409 claims for non-Covid cases.

Dasgupta, however, continues to be confident about growth prospects, and said there is a structural increase in the demand for health insurance.

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Analysts, BFSI News, ET BFSI

Personal Finance

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The Fed interest rate decision, domestic macroeconomic data announcements and quarterly earnings will be the major sentiment drivers for the equity market in a holiday-shortened week ahead, analysts said. Investors will also take cues from the monthly auto sales numbers to be announced on Monday.

Equity markets will remain closed on Thursday for Diwali Laxmi Pujan and on Friday for Diwali Balipratipada. “Due to the festival of Diwali, markets will have a truncated three-day trading session this week.

“Key events to watch out for this week will be India’s PMI data for October and US Fed meeting which will provide some direction to the market,” Siddhartha Khemka, head (retail research) at Motilal Oswal Financial Services Ltd, said. Selling by foreign funds, weak global markets and mixed earnings weighed on market sentiments last week.

“This is going to be a truncated week on account of Diwali where the market is heading this festival season with a mood of profit-booking. The week will start with auto sales numbers for October where expectations are low, while the market will also gauge the consumers’ sentiments on Dhanteras and Diwali,” Santosh Meena, head (research) at Swastika Investmart, said.

Important earnings are lined up this week including names like HDFC, IRCTC, Tata Motors, Bharti Airtel, HPCL, Sun Pharma, Eicher Motors and SBI, he added. Yesha Shah, head (equity research) at Samco Securities, said, “Although the trading week ahead will be shorter than usual, it can undoubtedly be eventful. The news flow and market sentiment may be largely dominated by the upcoming FOMC (Federal Open Market Committee) meeting.”

Shah added that Indian automakers will report their monthly sales figures. “Despite the advent of the festive season, shortages of semiconductors, rising freight and commodity prices may continue to squeeze margins and weaken sales,” Shah added. Last week, the 30-share BSE benchmark tumbled 1,514.69 points or 2.49 per cent.

“Markets are expected to remain bearish in the short term due to profit-booking across various sectors and weak global cues. The Q2 result season is in progress with the market getting mixed responses from companies declaring their results. Along with the corporate earnings, the market has to deal with macro numbers,” Rahul Sharma, co-founder of Equity99, said.

Vinod Nair, head (research) at Geojit Financial Services, said India’s manufacturing and services PMI data to be released this week will be a key indicator in determining the economic progress for October. “Additionally, decisions of the Fed in its meeting this week will be a major factor that will drive global equities in the coming days,” he added.

Also Read:

The company has deferred the purchase window for new orders by over a month from the original November 1 timeline. Says it wants to prioritise deliveries to existing customers and reduce waiting period between purchase orders and final delivery in future.



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In a first, personal loans beat credit to industry, BFSI News, ET BFSI

Banking & Finance

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MUMBAI: The share of personal loans in bank credit has for the first time overtaken overall loans to the industry sector during the second quarter of the current financial year. This has happened with loans to industry as of end-September 2021 shrinking by Rs 66,239 crore over March 2021 levels, while loans to individuals grew Rs 73,011 crore during the period.

According to data released by the Reserve Bank of India, bank credit outstanding on the last Friday of September was Rs 109.5 lakh crore. Of this, the share of loans to industry dropped to 26% (Rs 28.3 lakh crore) from 27% a year earlier. Personal loans, which were a quarter of all bank loans in September 2020, increased to 27% (Rs 29.2 lakh crore) by end-September 2021.

The drop in bank credit to the industry segment was largely due to companies in core industries deleveraging. Loans to iron and steel industries dropped by Rs 39,249 crore and loans to chemicals (which includes fertilisers, drugs and petrochemicals) shrunk by Rs 10,146 crore in the six months ended September. The few sectors which saw growth in credit were roads, ports and power. However, even this was not enough to show positive credit growth in the infrastructure segment.

Overall credit outstanding to large industry shrunk by 5% in the first six months of the fiscal. This has pulled down industrial loan growth to 2.3% despite credit to small and medium businesses rising.

In the personal segment, banks added Rs 20,096 crore of home loans to their portfolio in the last six months. They also increased their auto loan and gold loan book by Rs 3,000 crore each. Other personal loans were up by Rs 45,000 crore. Overall loans outstanding in the personal loan segment grew by Rs 73,000 crore in the six months ended September 2021. This has expanded the personal loan portfolio to Rs 29.18 lakh crore.

The data appears to indicate that banks have wrested market share from finance companies in the credit market. Typically, NBFCs borrow from banks and debt markets and lend. Bank credit to NBFCs, which is the largest component in loans to services sector, shrunk by Rs 61,124 crore in the last six months. This has resulted in the share of credit to NBFCs dropping from 9% (Rs 9.4 lakh crore) on end March 2021 to 8% (Rs 8.8 lakh crore) as of end September 2021. This has resulted in outstanding bank credit to the services sector declining by 3% since March 2021.

According to bankers, the decline in bank credit to large companies could be attributed to their deleveraging coupled with shifting to the debt market where cheaper money is available through commercial paper. Some businesses are seeing better cash realisations and do not feel the need to borrow.

In the NBFC segment, the classification of a large borrower as a non-performing asset by banks could have added to the decline in the segment. The home loan portfolio displays more consistency and does not occasionally shrink like other segments because home loans are long term and fresh disbursements have a compounding impact on the size of the portfolio.



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RBI, BFSI News, ET BFSI

Banking & Finance

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Customers of stressed Punjab & Maharashtra Co-Operative Bank (PMC Bank) will not get up to Rs 5 lakh insurance cover in the first lot as the multi-state co-operative bank is under the resolution process. Deposit Insurance and Credit Guarantee Corporation (DICGC) in the first lot will pay customers of 20 stressed banks except PMC Bank. For the first lot, the mandatory 90 days period concludes on November 30.

It is to be noted that RBI had in June given in-principle approval to a consortium of Centrum Financial Services and fintech startup BharatPe to acquire the stressed PMC Bank.

Clearing decks for the takeover, the RBI earlier this month gave licence for small finance bank to the consortium.

Recently, the DICGC said there may be a need to invoke the provisions of Section 18 A (7) (a) of the Deposit Insurance and Credit Guarantee Corporation (Amendment) Act, 2021,

As per the Section 18 A (7) (a) of the Act, if a stressed bank is under the resolution process, the period for disbursement of Rs 5 lakh can be further extended by 90 days.

“The Reserve Bank finds it expedient in the interest of finalising a scheme of amalgamation of the insured bank with other banking institution or a scheme of compromise or arrangement or of reconstruction in respect of such insured bank, and communicates to the Corporation accordingly, the date on which the Corporation shall become liable to pay every depositor of such insured bank may further be extended by a period not exceeding ninety days,” it said.

In September 2019, the RBI had superseded the board of PMC Bank and placed it under various regulatory restrictions after detection of certain financial irregularities, hiding and misreporting of loans given to real estate developer HDIL.

The Reserve Bank of India (RBI) had imposed restrictions on the withdrawal of deposits from these stressed banks. Of the 20 banks, 10 are from Maharashtra, five from Karnataka, and one each from Uttar Pradesh, Kerala, Rajasthan, Madhya Pradesh, and Punjab.

Last year, the government increased the insurance cover on deposits by five times to Rs 5 lakh. The enhanced deposit insurance cover of Rs 5 lakh came into effect from February 4, 2020.

Every bank used to pay 10 paise as an insurance premium per Rs 100 of deposit. It was raised to 12 paise per Rs 100 in 2020. It cannot be more than 15 paise at any point in time per Rs 100 deposit.

It is to be noted that the enhanced deposit insurance cover of Rs 5 lakh is effective from February 4, 2020. The increase was done after a gap of 27 years as it has been static since 1993.



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Banks with 95% cards implement RBI order on recurring payments, BFSI News, ET BFSI

Banking & Finance

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MUMBAI: A month after the RBI’s fresh rules on mandates for recurring card payments kicked in, banks accounting for over 95% of credit cards in the market are compliant with the new system. Over 20 lakh e-mandates have been registered by cardholders with a host of merchants.

According to payment industry sources, the banks whose credit cards are eligible for new standing payment mandate include SBI, Axis Bank, HDFC Bank, Yes Bank, American Express, Bank of India, Bank of Baroda, ICICI Bank, HSBC, RBL Bank, IndusInd Bank and Kotak Mahindra Bank. Several banks have enabled the mandate for both debit cards as well as credit cards.

Automatic recurring payments also require the merchant to be on-boarded to the new e-mandate framework. The compliant businesses include most of the OTT (over-the-top) streaming platforms, private life & general insurance companies, global IT giants like Google, Facebook, Microsoft and McAfee, as well as some edtech companies.

Interestingly, Indian cardholders who have registered with overseas service providers, having payment gateways abroad, are not subject to the new rules. This is because the RBI has no jurisdiction to impose second-factor authentication in those markets. It is up to the customer to disable international transactions on their cards.

What has facilitated the fast on-boarding of merchants is IT solutions like SI Hub developed by BillDesk and Mandate HQ developed by Razorpay. However, some domestic banks like Canara Bank & Punjab National Bank and Standard Chartered Bank were until last week in the process of making the necessary system changes.

According to the sources, card-based recurring transactions are 2.5% in terms of the number of transactions and 1.5% in terms of the value of the total card payments done in the country. On average, approximately 75% of domestic recurring transactions are of values of up to Rs 5,000. The corresponding figure for cross-border recurring transactions is approximately 85%.



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Private banks’ net profit up 26% as economic revival kicks in, BFSI News, ET BFSI

Banking & Finance

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The net profit of private banks rose 26 per cent year on year in the July-September 2021 quarter and 21.9 per cent sequentially over March-June 2021 (Q1), as the pandemic ebbed and economic recovery has taken hold.

The 12 private lenders posted a collective net profit of Rs 21,965 crore during the second quarter.

Provisions and contingencies of the lenders that have declared results fell both 22 per cent year on year and 30.2 per cent quarter on quarter to Rs 12,805 crore. The provisions include those for one time restructuring of loans announced by the RBI in May.

Net interest income was up 10.8 per cent y-o-y and 2.5 per cent sequentially. Other income rose 15.7 per cent to Rs 22,638 crore.

Gross non-performing assets grew 1.1% to Rs 1.73 lakh crore y-o-y, but fell 3.5 per cent sequentially from about Rs 1.8 lakh crore in the June quarter.

Net NPAs rose by 27.5 per cent y-o-y to Rs 42,895 crore, but fell sequentially by 7.3 per cent from Rs 46,280 crore in June 2021.

ICICI Bank

ICICI Bank posted a higher-than-expected 29.6% on-year rise in net profit to Rs 5510 crore in July-September, which was highest in the bank’s history. As the bank maintained 17% growth in advances, and further improved on net interest income and margins, asset quality ratios provided additional support to the bottomline by keeping provision costs low.

Axis Bank

Axis Bank reported an over 86% year-on-year rise in net profit to Rs 3130 crore for the September quarter, benefiting from an improvement in asset quality, which led to a fall in provisioning. The bank expects consumer and business confidence to continue to trend upward in Oct-Mar on the back of a rise in vaccination coverage and as the economy opens up, pent-up demand and spends materialise.

Federal Bank

Federal Bank posted a higher than expected net profit of Rs 460 crore in the September quarter, led by a fall in overall provisions as the lender reported improvements in asset quality. The bank’s net profit rose 49.6 per cent on year, and 25.3 per cent on quarter. This was supported by a faster-than-industry credit growth that fuelled a rise in core ratios such as net interest income and net interest margins.

YES Bank

Yes Bank’s net profit jumped 74 per cent year-on-year in the September quarter to Rs 230 crore on the back of a sharp fall in provisioning. Going ahead, a sharp reduction in overdue loans and sustained momentum in loan recoveries and upgrades augurs well for the overall asset quality of the bank.

RBL Bank

RBL Bank posted a 78.6 per cent on-year fall in net profit for the September quarter at Rs 30 crore due to higher provisions amid an increase in bad loans. For April-June, the private sector lender had reported a net loss of Rs 460 crore. Slippages, gross non-performing assets ratios, and provisions had peaked in the reporting quarter, and the lender was on track to see growth, the bank said.



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Axis AMC raises Rs 400 crore via Growth Avenues AIF-I, BFSI News, ET BFSI

Personal Finance

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Axis Asset Management Company, an arm of private sector lender Axis Bank, has raised around Rs 400 crore through first close of Axis Growth Avenues AIF-I, aiming to fund ideas with deep technology as their USP. The asset management company is aiming to raise a total of Rs 1,000 crore through the close-ended fund, including a greenshoe option of Rs 500 crore. It is confident of completing the entire fundraising in this quarter, based on response and commitments from investors.

The fund has achieved the first close with investments from family offices, high networth individuals (HNIs) and non-resident Indians (NRIs). The fund will be investing primarily in mid-to-late stage technology-enabled companies with scaleable business models and a favourable risk-return profile. The sector-agnostic fund will be investing in companies catering to latent demands with multiyear growth potential and differentiated business model.

Axis Growth Avenues AIF-I will be exploring both primary and secondary investment opportunities with the proposed portfolio size of eight to 10 companies, with deal size ranging from Rs 25 crore to Rs 100 crore each.

The AMC has a strong pipeline of investments and expects to start deploying funds from the AIF soon. “The strong response that we are receiving for the Axis Growth Avenues AIF-I, reflects the confidence investors and partners have in us, as well as the potential of this segment. It will be our endeavour to ensure we deploy this money in companies that offer exciting long term growth opportunities and are aligned with our investment philosophy,” said Chandresh Nigam, chief executive, Axis AMC.

Total fund term will be five years from its final closing and may be extended for two additional periods of one year each. The AIF is looking to capitalise on innovation and growth in the economy and to invest in companies that are benefiting from these trends. It will be primarily focused on investing in fintech, technology, ecommerce and edtech.



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