Month: October 2020

ICICI Bank posts record-high profit; expects normalisation of credit losses by FY22

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The country’s second-largest private lender ICICI Bank posted a record-high quarterly profit on the back of a rise in operating profits and a decline in tax expenses. Profits after tax rose six-fold to Rs 4,251 crore despite a near 20 percent rise in provisions. The bank also made gains of Rs 305 crore by selling a 2 percent stake in ICICI Securities during the quarter.

“We expect normalisation of credit losses by FY22,” Sandeep Batra, president, ICICI Bank sounded a positive note during a media interaction after the bank posted its second-quarter earnings. Alluding to the recovery seen during the quarter from peak-COVID lows, he said collection efficiencies had reached pre-COVID levels already.

“Post the easing of restrictions, there has been a substantial month-on-month increase in disbursements across retail products,” the bank said in its statement.

Mortgage disbursements in Q2 FY21, for instance, crossed pre-Covid levels and reached an all-time monthly high in September 2020. Auto loan disbursements also increased from June 2020 to reach pre-Covid levels in September 2020.

“Disbursements across the rural portfolio have crossed pre-Covid levels in the months of August and September 2020. Credit card spends recovered to about 85 percent of pre-Covid levels in September 2020 led by increased spends in categories such as health & wellness, electronics, and e-commerce,” the bank said.

As of October 28, the bank had sanctioned Rs 16,000 crore to 1.87 lakh borrowers under the Emergency Credit Line Guarantee Scheme, of which almost Rs 10,600 crore had been disbursed.

The bank has received restructuring requests for corporate and SME loans worth approximately Rs 2,100 crore so far, it disclosed during the analyst concall. When asked if more restructuring requests are expected by December 31, when the scheme ends, Batra said the bank was not expecting too many requests to come.

It added Rs 3,017 crore of fresh bad loans in the September quarter, compared to Rs 1,160 crore in the June quarter. Of the total bad loan addition during the quarter, a higher Rs 1,749 crore came from its retail book, and Rs 1,268 crore from the corporate and SME book.

ICICI Bank posted gross non-performing assets (NPA) ratio as a percentage of gross advances stood at 5.63 percent in Q2, compared to 5.99 percent in Q1. Its Net NPA ratio stood at 1.09 percent in Q2 versus 1.34 percent in Q1.

As a percentage of customer assets, its gross NPA stood at 5.17 percent and net NPA at 1 percent. “Including loans amounting to Rs 1,410 crore which was not classified as NPA pursuant to the Supreme Court’s interim order, the gross NPA ratio on a proforma basis would have been 5.36 percent and the net NPA ratio would have been 1.12 percent at September 30, 2020. On a prudent basis, the bank made provisions of Rs 497 crore on these loans in Q2-2021,” the bank disclosed.

The fund-based and non-fund based outstanding to borrowers rated BB and below (excluding non- performing assets) decreased to Rs 16,167 crore as of September 30, 2020, from Rs 17,110 crore on June 30, 2020.

ICICI Bank’s domestic advances grew by 10.3 percent in the September quarter over last year led by a 12.8 percent rise in the retail loan book. Its global advances growth was 6.4 percent over last year, as the overseas loan book declined by 29.5 percent over the same period last year.

Net interest margin (NIM) declined sequentially to 3.57 percent in the second quarter from 3.69 percent in the previous quarter, reflecting surplus liquidity with the bank.

As of September 30, 2020, the bank held Covid-19 related provision of Rs 8,772 crore. Sandeep Batra told the media during the earnings call that the bank had not utilised any of the COVID-19 related provisions yet.

The bank said its board has approved a proposal to seek RBI nod for the re-appointment of Sandeep Bakhshi as managing director and chief executive officer from October 15, 2021, up to October 3, 2023. Already, the board and shareholders have approved Bakhshi’s appointment up to October 3, 2023.

“Portfolio strands on asset quality have been strong. We believe that additional provisions made by the bank will completely cushion the balance sheet against any credit losses,” Batra said.

“We see wide-ranging possibilities for risk calibrated growth going ahead,” he said when asked about the credit growth outlook. We do not give guidance on credit growth and we have been driving risk calibrated operating profit as a target, rather than credit growth in the bank,” he added.

“We have adapted well, we were anyway a digital bank even before Covid, and this Covid has brought out our strength in a significant manner… What we are really trying to do is basic, simple banking. That seems to be working,” Batra signed off.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Mitron TV launches ‘Atmanirbhar Apps’ to bring spotlight on homegrown apps

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Indian short-video platform Mitron TV on Saturday announced the launch of an app discovery platform to promote homegrown apps.

The platform– ‘Atmanirbhar Apps’ — hosts a wide array of apps from categories like e-governance, utility, agriculture, gaming, entertainment, lifestyle, e-learning, among others, it said.

“The vision is to strengthen homegrown technology on a grand scale by making it easier for users to identify Indian apps for their various needs…Mitron TV wants to urge people to become ‘Vocal for Local’ and to bring the spotlight on the Indian apps from various geographies,” a statement said.

Currently, the platform hosts more than 100 apps and plans to bring 500 apps by the end of this year, it added.

These include apps like Kifayat, Grocit, Jain Thela, Home Shoppy, YourQuote, Vridhi Stores, Xploree AI Keyboard, mParivahan, and others, it added.

After PM Modi’s clarion call in May this year to be Atmanirbhar and to focus on the creation of a Made in India ecosystem, we felt that it’s highly important to let users discover noteworthy Indian apps that are doing exceptional work to keep India running,” Shivank Agarwal, co-founder and CEO Mitron said.

This is a small effort by Mitron TV to celebrate self-reliance and promote domestic businesses, he added.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Subhash Chandra Garg says FM Nirmala Sitharaman booted him out of finance ministry

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Former finance secretary Subhash Chandra Garg has said finance minister Nirmala Sitharaman asked for and insisted on his transfer from the ministry of finance in June 2019, within a month of her taking over as minister.

“Serious difference also developed on some key issues like economic capital framework of RBI, a package for dealing with problems of non-banks, resolution of non-banks, partial credit guarantee scheme, capitalisation of non-banks like IIFCL and other financial entities and the like,” Garg wrote in his blog explaining the reasons for his voluntary retirement.

He said that Sitharaman has a very different personality, knowledge endowment, skill-set, and approach for economic policy issues and that it became quite apparent very early, that working with her was going to be quite difficult and it might not be conducive to undertaking necessary reforms for the attainment of the objective of building a $10 trillion economy of India.

He said Sitharaman came with some pre-conceived notions about him and did not seem comfortable working with him.

He wrote that he did not want to work in the government outside the ministry of finance, as that was the place where an officer got the widest possible view of the Indian economy.

“The budget was due to be presented on 5th July, within 35 days of her taking over as Finance Minister. Despite quite a few episodes of acrimony which had made the working environment unpleasant, I decided that I would do everything possible to see that budget was not harmed and it was delivered on time,” he wrote. However, he had made up his mind in the month of June 2019, much before the Budget was presented, that he would take voluntary retirement from the service.

“Dr. P. K. Mishra, then Additional Principal Secretary, who oversaw appointments and transfers in the PMO, asked me to come over for a chat on 18th July… Both of us agreed that the best course would be for me to make way for the new FM to ‘function smoothly’,” he wrote.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

ICICI Bank Q2 net profit at Rs 4,251.33 crore, beats estimates

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The country’s second-largest private sector lender ICICI Bank on Saturday reported a net profit of Rs 4,251.33 crore for the quarter ended September 30, 2020.

In the corresponding quarter last year, the bank posted a net profit of Rs 1,131.20 crore. CNBC-TV18 Polls had predicted a profit of Rs 3,142 crore for the quarter under review.

Total income (standalone) in July-September 2020 stood at Rs 23,650.77 crore, up from Rs 22,759.52 crore in the same period a year earlier, ICICI Bank said in a regulatory filing.

Net interest income (NII), which is the difference between the interest income a bank earns from its lending activities and the interest it pays to depositors, rose 16 percent year-on-year (YoY) to Rs 9,366 crore. The net interest margin stood at 3.57 percent in Q2.

Fee income increased sequentially by 49 percent in Q2-2021 over Q1-2021 reflecting the increase in customer spending, borrowing, and investment activity. Retail fees constituted 76 percent of total fees in Q2-2021.

Net non-performing asset (NPA) ratio decreased from 1.23 percent on June 30, 2020, to 1.00 percent on September 30, 2020; including loans not classified as NPA pursuant to the Supreme Court’s interim order, net NPA ratio would have been 1.12 percent, the bank said.

The lender said total deposits grew by 20 percent year-on-year to Rs 832,936 crore on September 30, 2020. 17 percent growth in average current and savings account (CASA) deposits in Q2-2021. The average CASA ratio was 40.3 percent in Q2-2021.

The provision coverage ratio increased from 78.6 percent on June 30, 2020, to 81.5 percent on September 30, 2020. Additionally, the bank held COVID-19 related provisions of Rs 8,772 crore on September 30, 2020.

Total capital adequacy ratio of 19.33 percent and Tier-1 capital adequacy ratio of 17.89 percent on a standalone basis at September 30, 2020 (including profits for the six months ended September 30, 2020).

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Minimum government, maximum governance: PM Modi’s mantra to IAS probationers

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Prime Minister Narendra Modi on Saturday advised the probationary civil servants to take decisions in the national interest by following the mantra of ‘minimum government and maximum governance’.

Addressing the IAS probationers through video conference from Kevadiya in Gujarat, where he paid tributes to Sardar Vallabhai Patel on his 145th birth anniversary earlier in the day.

Modi told the probationers that they were entering the service at a crucial juncture when India is about to enter the 75th year of its Independence.

“A government does not run on policies alone. People for whom the policies are meant to need to be involved. People are not the receiver of the government’s policies and programmes. They are the real driving force,” he said.

“So we should move from the government towards governance. You will be faced with two ways, one of comfort, name, and fame, another of struggle, difficulties, problems. But I can tell you from my experience that you will face real difficulties when you choose an easy way out,” he said.

“The turn at which the country stands today, the role of you bureaucrats is of minimum government, maximum governance. You have to ensure how to reduce your interference and also ensure the empowerment of common people,” he said.

“I would also request that whatever decision a civil servant takes should be in the national interest and meant to strengthen the unity and sovereignty of the country and keep India’s constitutional spirit high,” the PM said.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Prime Minister Narendra Modi launches seaplane service in Gujarat

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Prime Minister Narendra Modi on Saturday launched a seaplane service between the Statue of Unity near Kevadiya in Gujarat’s Narmada district and Sabarmati Riverfront in Ahmedabad.

Modi inaugurated the service by boarding the twin-engine plane from pond-3 close to Sardar Sarovar Dam near Kevadiya.

Before boarding the plane, Modi spent some time at the water aerodrome and took details about the service.

The 19-seater plane carrying Modi would land on the waters of Sabarmati Riverfront in around 40 minutes after covering a distance of around 200 kilometers, officials said.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow