Archive: January 23, 2023

Pre-Budget Expectation Quote on retail & D2C industry: Ahmad Hushsham, Co-founder, Yoho

“The Indian government is committed to promoting economic growth and development, and this focus has continued since the pandemic. We hope to see a budget that outlines a plan for increasing economic growth along with more investment in infrastructure and incentives for corporate capital expenditure. One important step in this direction would be simplifying the GST structure. Currently, the GST rate on footwear with a sale price above INR 1000 is 18% and the rate on footwear with a sale price below INR 1000 is 12%, which is confusing. Additionally, in the past, GST was set at a rate of 5%. However, it has significantly increased over the past few years and is now at 12% and 18%. This amidst increased cost of raw materials is hurting the industry. Reducing the GST rate and having a uniform rate on all footwear would lead to lower prices and potentially increase consumer demand.

Another way to support growth and development would be to encourage the local production of footwear raw materials, components, co-polymers, moulds, and machinery at competitive prices under the “Make in India” initiative. This could boost India’s export ambitions and create employment, leading to lower overall prices and improving consumer sentiment.”

Unique morning concert Jaltarang, held at Buddha Statue in Hussain Sagar Lake

Hyderabad, January2023…..Tatva Arts, the pioneers in Morning Concerts in Parks, Public Places hosted yet another unique program Jaltarang at Buddha Statue, in Hussain Sagar Lake on Sunday early morning at 6.30am to 8.30am.

It was rare and unique announced Gajender, one of the organisers of the Concert which was held in support with ICCR–Indian Council for Cultural Relations, Zonal Office(South), Ministry of External Affairs, Govt of India, Bengaluru and NMDC(National Mineral Development Corporation)

About 200 music lovers enjoyed this rare concert. It was performed by Milind Tulankar and supported by Ganesh Tanwade with Tabla

Arvind Kumar, Special Chief Secretary; Praveen Kumar, Executive Director of NMDC and others graced it.

Our body has 70% water. Here at Budha statue we are surrounded by 100% water. It is my great fortune to perform Jaltarang, meaning Water waves amidst water(pani ke beech mein), said Milind. It works as music therapy.

The Jal-tarang, is one of the most rarely heard instruments! One of the oldest instruments in the world ‘Jal-tarang’ comes from ‘Jal’ meaning water, and ‘tarang’ that connotes the “waves in water”. Jal-tarang is an ancient Indian wave instrument which continues to play till today in the Indian classical music repertoire to produce both ‘Ragas’ and light melodies, he shared.

The venue is different and exciting. It is a lifetime experience, said Milind.

Milind is one of the handful of Jaltarang performers exist in India said Akhilesh, one of the organisers

Milind began his performance with sare jahan se accha…… involving the audience to sing in chorus to the music. He used 17 porcelain bowls to produce the music. He bagan first performance without tabla for twelve minutes. People closed their eyes, meditated, and maintained pin drop silence to enjoy the music. These instruments are 85 years old. My grandfather used to use them. I have been using them for 35 years. He played notes for the Roja film. Then I played raga parameshwari. Concluded with the performance by Bhairavi Dhun. The performance continued for 90 minutes. Audience fully enjoyed the performance

The performance was super. I enjoyed it thoroughly. I have also experienced pin drop silence, said Anuradha Thakur, a music lover

It was a great experience. My day started fresh with music, said Avanthika.

Kotak Mahindra Bank Announces Results

Bengaluru, 23 January 2023: The Board of Directors of Kotak Mahindra Bank (“the Bank”) approved the standalone and consolidated results for Q3FY23, at the Board meeting held in Mumbai, today. 

Kotak Mahindra Bank standalone results

The Bank’s PAT for Q3FY23 stood at ₹ 2,792 crore, up 31% from ₹ 2,131 crores in Q3FY22 (₹ 2,581 in Q2FY23).

Net Interest Income (NII) for Q3FY23 increased to ₹ 5,653 crore, from ₹ 4,334 crores in Q3FY22, up 30% YoY. Net Interest Margin (NIM) was 5.47% for Q3FY23.

Fees and services for Q3FY23 was ₹ 1,847 crore, up 23% YoY.

Operating profit for Q3FY23 was ₹ 3,850 crore, up 43% YoY (Q3FY22: ₹ 2701 crore).

Customers as at December 31, 2022, were 39.0 mn (30.7 mn as at December 31, 2021).

Customer Assets, which comprise Advances and Credit substitutes, increased by 24% to ₹ 3,39,313 crore as at December 31, 2022, from ₹ 2,74,569 crore as at December 31, 2021 (₹ 3,21,324 crore as at September 30, 2022). Advances increased by over 23% to ₹ 3,10,734 crore as at December 31, 2022, from ₹ 2,52,935 crore as at December 31, 2021 (₹ 2,94,023 crore as at September 30, 2022).

CASA ratio as at December 31, 2022, stood at 53.3%.

As at December 31, 2022, COVID-related provisions stood at ₹ 400 crores. In accordance with COVID Resolution Framework announced by RBI, the Bank has standard restructured fund-based outstanding of ₹  281crore (0.09% of Advances). Under the MSME Resolution Framework, the Bank has standard restructured fund-based outstanding of ₹ 484 crores (0.16% of Advances) as at December 31, 2022.

As at December 31, 2022, GNPA was 1.90% & NNPA was 0.43%. Credit cost on advances for Q3FY23 was  27 bps (annualized) (including standard provisioning; excluding reversal of COVID & restructuring). The provision coverage ratio stood at 77.6%. 

The Capital Adequacy Ratio of the Bank, as per Basel III, as at December 31, 2022, was 21.7% and the CET I ratio of 20.7% (including unaudited profits) 

Consolidated results at a glance 

Consolidated PAT for Q3FY23 was ₹ 3,995 crore, up 17% from ₹ 3,403 crores in Q3FY22 (₹ 3,608 crores for Q2FY23).

PAT of Bank and key subsidiaries given below:

AUM (Policyholders’) of Kotak Mahindra Life Insurance as on December 31, 2022, grew 15% YoY to ₹ 56,643 crore.

At the consolidated level, the Return on Assets (ROA) (annualized) was 2.76% for Q3FY23 (2.60% for Q3FY22) and the Return on Equity (ROE) (annualized) was 15.04% for Q3FY23 (14.81% for Q3FY22)

Consolidated Capital Adequacy Ratio as per Basel III as at December 31, 2022, was 23.2% and the CET I ratio was 22.3%. (including unaudited profits)

Consolidated Capital and Reserves & Surplus as at December 31, 2022, was ₹ 1,07,670 crore (₹ 93,141 crores as at December 31, 2021). The Book Value per Share was ₹ 540.

Consolidated Customer Assets grew by 22% from ₹ 3,09,042 crore as at December 31, 2021, to ₹ 3,77,400 crore as at December 31, 2022.

Total assets managed/advised by the Group as at December 31, 2022, were ₹ 4,05,269 crore up 5% over ₹ 3,86,465 crore as at December 31, 2021.

 The financial statements of Indian subsidiaries (excluding insurance companies) and associates are prepared as per Indian Accounting Standards in accordance with the Companies (Indian Accounting Standards) Rules, 2015. The financial statements of subsidiaries located outside India are prepared in accordance with accounting principles generally accepted in their respective countries. However, for the purpose of preparation of the consolidated financial results, the results of subsidiaries and associates are in accordance with Generally Accepted Accounting Principles in India (‘GAAP’) specified under Section 133 and relevant provisions of the Companies Act, 2013.

Quote on Budget Expectations for the Real Estate sector | Savills India

“The Indian economy has grown at a strong rate in recent years, fueled by consumer demand and government efforts to promote manufacturing and attract foreign investment, despite global uncertainty. However, there are potential challenges, mainly emanating from variety of external factors, which can slow the pace of economic activity and keep inflation stubbornly close to RBI’s outer limit of tolerance. Hence, there is a greater anticipation from the upcoming budget. While the industry will look for higher budgetary allocations, easier capital availability, and greater relaxations, the middle-class population, which has not had many direct sops in the recent past, will eagerly look forward to direct benefits like tax-cuts or higher deductions. Increased funding for social welfare programs, measures to control prices of essential goods and services, and initiatives to create job opportunities, etc., will all be expected from the upcoming budget.

The real estate sector is looking to the Union Budget with expectations of further support in the form of policies that will not only benefit the industry but also have a positive impact on the overall economy of the country. An area of high priority for the government is increasing tax benefits for home buyers. Raising the cap for deducting interest payments on home loans to Rs 5 lakh is a real need and should be a key consideration. Further, the higher allocation for the SWAMIH fund will be a great help for stalled projects. Several sectors like life sciences, data centres, EVs, warehousing, etc., are poised for high growth in India. Infrastructure status for real estate sector will act as a catalyst for these sectors too.” – Anurag Mathur, CEO, Savills India

Mr. Manish Bansal, Director, Window Magic quotes on Budget 2023 Expectations;

“The pandemic-affected micro, small, and medium-sized enterprises (MSMEs) received much-needed relief from the Union Budget of 2022.

Given that the economy is recovering from the pandemic and the next budget is scheduled for 2023, there is the confidence that measures will be introduced that will further aid the rise of the MSME sector, which is the cornerstone of India’s economy.

A little over 30% of our GDP is made up of MSMEs, who also account for 50% of the revenue from all exports. One of the most important things MSMEs need is an easy line of credit because their working capital is often strained by supplier chain issues and late payments.

Government must simplify or increase accessibility to working capital. MSMEs must be given more consideration by banks. Because many MSMEs under-market their products and do not fully utilise technology, MSMEs would tremendously benefit from marketing and technological education.

The central government may significantly increase the contribution this economic pillar brings to India’s prosperity by proposing favourable measures and programmes for MSMEs in the Union Budget 2023.

The MSME sector is anticipating this year’s budget announcements for initiatives like continued support for last-mile lending through programmes like CGTMSE and ECLGS, increased investments in infrastructure and digitisation, and encouragement of the growth of an ecosystem that is favourable for the development of MSMEs.”