BOI AXA.
You have got quite a few lenders in your portfolios be it the country’s biggest mortgage financiers, some gold loan companies. There are vehicle financiers like M&M Finance, Piramal, NBFCs with wholesale books which got rerated. Where do you stand as far as the lenders are concerned?
In any lending business, there are two big levers; one is the cost of funds and other is the cost of lending or cost of credit. For the last one year, we have seen the cost of funds coming down very drastically and this was reflected in the NIMs at most of the lenders. But then the perceived cost of credit was very high all through the pandemic and now the market is realising that the perception or the hypothesis which they were working on for the NPA levels somehow is not holding correct. As a result, the market is now looking at lenders more positively and the benefit which they were getting because of low cost of liabilities are getting translated into higher multiples.
DJ Fresh and Euphonik have been cleared of allegations of rape levelled against them. The DJs had been accused on Twitter of raping a young woman before she laid charges against them in Pretoria in mid-January.
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ET Intelligence Group: The aggregate bad loan provisioning by banks fell sequentially for the fourth consecutive quarter in December though some of them increased COVID related provisioning. For a sample of 28 banks, provisioning for bad loans or nonperforming assets (NPA) fell by 27.5% sequentially to Rs 24,149.7 crore in the December quarter. It was the lowest in the seven quarters under observation.
The loan loss provisioning by banks has been benign in the current fiscal year so far on account of various schemes launched by the central bank to reduce the impact of the pandemic. “Bank NPAs this year would tend to be a bit nebulous given the various forbearance dispensations that have been made besides the restructuring schemes that have been introduced,” noted CARE Ratings in a report.