RBI steps to boost credit growth risky: Fitch
Indiabulls Real Estate reported a 75.69 per cent decline in consolidated net profit at Rs 49.27 crore for the December quarter from Rs 202.4 crore a year ago, mainly due to higher expenses. Total income rose by 2.33 per cent to Rs 1,317.7 crore from Rs 1,287.59 crore. Expenses rose 20 per cent to Rs 1201.28 crore from Rs 1,001.32 crore. During the quarter, the firm sold its entire stake in Century, which indirectly owns Hanover Square.
New Delhi, Feb 10: Indian Overseas Bank has reported widening of its net loss to Rs 6,075.49 crore during the third quarter, owing to higher provisioning for bad loan. The bank had reported a net loss of Rs 346.02 crore during the October-December period of 2018-19.
Its total income also fell to Rs 5,197.94 crore from Rs
5,688.59 crore in the yearago quarter. Provisioning for bad loans jumped to Rs
6,663.94 crore compared with Rs 2,075.28 crore a year ago. The bank's gross non-performing assets, however, dropped to 17.12 per cent of the gross loans at the end of December
2019, from 23.76 per cent a year ago.
New Delhi, Feb. 10: State-owned gas utility GAIL India on Monday reported 25 per cent drop in third-quarter net profit due to a slump in margins on natural gas marketing as well as LPG and liquid hydrocarbons.
The net profit at Rs
1,250.65 crore, or Rs 2.77 a share, in October-December, was 25.6 per cent lower than Rs 1,681.23 crore, or Rs 3.73 per share, earned in the same period a year ago, the company said.
Revenues from natural gas marketing fell 9.5 per cent to Rs 14,662.67 crore and segment profits dropped 31 per cent to Rs
466.52 crore. Revenues from gas transmission business, however, continued to grow in double digits.
Greater Noida, Feb. 10: Domestic passenger vehicle sales declined 6.2 per cent in January as vehicle demand continued to be stressed by rising cost of ownership and slower GDP growth, automobile industry body Siam said on Monday.
Passenger vehicle sales last month stood at
2,62,714 units against
2,80,091 units in the yearago month, according to data released by the Society of Indian Automobile Manufacturers (Siam). Car sales last month were also down 8.1 per cent at 1,64,793 units compared with 1,79,324 units in the January last year.
Vehicle sales across categories registered a decline of 13.83 per cent to
17,39,975 units from
20,19,253 units in January
2019, Siam said. "Sales of vehicles continue to be stressed due to rising cost of vehicle ownership and slower growth in GDP," Siam President Rajan Wadhera said.
Vehicle prices have gone
The Reserve Bank of India's (RBI) move last week to use unconventional tools to nudge banks to lend more to automotive, housing purchases, and MSME sector are unlikely to support sustainable credit growth until capitalisation improves meaningfully across banks, in particular among state-owned banks, rating agency Fitch said on Monday. The agency also warned that Indian banks have a poor up as manufacturers gear up for the transition to stricter emission norm BS-VI from BS-IV beginning April 1. Besides, many companies had raised prices in January, citing rising input costs.
Wadhera further said, "We are hopeful that the recent announcements by the government on infrastructure and rural economy would support growth of vehicle sales going forward, especially in commercial vehicles and twowheeler segment."
According to Siam, total two-wheeler sales in January fell 16.06 per cent to 13, 41, 005 units compared with 15,97,528 units in the same month last year. track record with restructuring and that the extensions announced for real estate and MSME sectors are likely to defer assetquality pressures unless there is a sustained improvement in macroeconomic conditions.
The RBI, in its sixth bimonthly monetary policy last week, announced allowed exemption from maintenance of cash reserve ratio (CRR) on incremental disbursement on auto, housing and MSME loans. The CRR is the percent of its cash
Amazon has filed a writ petition in Bangalore High Court seeking stay against the competition watchdog’s investigative order against e-commerce biggies.
The petition dated February 10 said that the order issued by the Competition Commission of India (CCI) “has been passed without application of mind” and will cause irreparable loss/injury to the goodwill/reputation of the company.
“An interim stay on the proceedings must be granted as the balance of convenience for stay lies in favour of the petitioner as a bonafide company,” Amazon said
The Competition Commission had ordered a probe against Amazon and Walmart-owned Flipkart in a complaint filed by the Delhi Vyapar Mahasangh (DVM), representing small businesses, in January. The petitioner had alleged that the e-commerce companies were violating the competition laws.
“It needs to be investigated whether the alleged deposits a commercial bank must maintain with the RBI. Banks can now knock off the equivalent of additional loans disbursed to these priority fields between end-January and end-July
2020 from their net demand and time liabilities for the purpose of calculating their cash reserve ratio. The central bank also permitted extension of date of commencement
exclusive arrangements, deep-discounting and preferential listing by the OPs (opposite parties) are being used as an exclusionary tactic to foreclose competition and are resulting in an appreciable adverse effect on competition,” the CCI had said in its order.
Amazon termed the findings of the order “perverse, arbitrary, untenable in law”.
When asked about the of commercial operations of commercial real estate project loans, delayed for reasons beyond the control of promoters, by another one year without downgrading asset classification, and last but not the least announced an extension of one-time restructuring benefit for MSMEs without an asset classification downgrade. “The move is intended to improve monetary transmission, writ petition, Amazon said that the matter was subjudice and hence it could not offer any comments.
“Amazon claims that it follows the FDI policy, then why they are opposing investigation. Let CCI conduct the investigation and it will make position clear,” said Praveen Khandelwal, secretary general of the Confederation of All-India Traders (Cait), an ally of DVM. supporting credit to fields that have multiplier effects...However, most of these sectors have had above-average lending growth in the last few years, either directly or indirectly via non-banks, and could be at risk were the economy to slow. Moreover, these measures are unlikely to support sustainable credit growth until capitalisation improves meaningfully across banks, in particular among state-owned banks.” Fitch Ratings said.
As high as 94 per cent Indian households with a solar home system (SHS) reported an improvement in their quality of life as people felt safer and children found more time to study. One in 10 owners who use SHS to light and power businesses and unlock more work hours reported significant a rise in their income, says a recent study report by Gogla, the global association for the off-grid solar energy industry.
The research surveyed 949 households in South Asia, primarily rural customers. In India, the study covered Assam and Uttar Pradesh.
India has long been one of the key markets for the small-scale solar sector. Nearly 950,000 products, including solar lanterns, solar kits and solar home systems, were sold in the first six months of 2019 alone.
“The ‘Powering opportunities in South Asia Research’ report shows that...small-scale solar continues to have an important role for Indian households. Although a majority of customers are using their solar home systems as a back up to the central grid, the additional energy security and power the systems provide are boosting the quality of life and unlocking economic opportunities for those in rural and remote areas,” said Viraj Gada, Gogla’s India regional representative.