Tag: Managing Director & CEO

Business

Yasho Industries Limited FY22 Performance Update

May 2, 2022 by Rekha Nair 0 Comments #Managing Director & CEO, #Mr. Parag Jhaveri, #Yasho Industries Limited

Mumbai, May 2022: Yasho Industries Ltd (BSE: 541167 | ISIN: INE616Z01012) a leading Indian global manufacturer & supplier of specialty and fine chemicals, has announced its audited financial results for the quarter and financial year ended 31st March, 2022.

Particulars (Rs in Crores) Q4FY22 Q4FY21 Y-o-Y FY22 FY21 Y-o-Y
Total Revenue* 186.2 110.1 69.0% 624.1 369.5 68.9%
EBITDA 27.9 19.2 46.0% 103.7 59.1 75.5%
EBITDA Margin (%) 15.0% 17.8% -280 bps 16.6% 15.6% +100 bps
PAT 13.5 9.1 48.6% 52.7 21.5 145.5%
PAT Margin (%) 7.4% 8.3% -090 bps 8.6% 5.1% +350 bps
Sales in MT 3,002 2,325 29.1% 11,054 7,712 43.3%

* Including other income

Mr. Parag Jhaveri, Managing Director & CEO, Yasho Industries Limited said, “We are pleased to report the highest annual performance for the company. Demand for all major chemicals have seen robust growth in FY22 as compared to FY21 despite all ongoing challenges in the country and the global market.

Total Revenue for the year stood at Rs 624.1 Cr, a growth of 68.9% on YoY basis. Our sales volume for FY22 grew by 43.3% and EBITDA margin grew by 100 bps. Our rubber chemicals, lubricant additives & specialty chemical businesses continue to witness growth.

Our export business has contributed 64% in revenue and has maintained its growth momentum. This was primarily due to the high quality of our products and long-standing relationships with major customers. This quarter we have witnessed unprecedented pressure on the margins due to volatile pricing of raw material, increasing energy & freight costs.

We are pleased to inform you that, we are well on track with our planned capex of Rs. 350 cr. which will bring in an additional capacity of 15,500 MT. Following this expansion, the total capacity of the company will stand at 26,500 MT. The company is awaiting the approval of environmental clearance from the government which we expect to obtain in the coming months.”

Business

ETO Motors is spearheading the Electric Mobility Revolution at the EV Trade Expo

Nov 1, 2021 by Rekha Nair 0 Comments #Chief Guest Shri K. Jagadish Reddy, #ETO Motors, #ETO Motors’ VP – Business Development at ETO Motors, #Govt of Telangana, #Managing Director & CEO, #Mr. N.K. Rawal, #Mr. Rajeev YSR, #the Minister for Energy

Hyderabad: ETO Motors’ made its presence felt at Hyderabad’s EV Trade Expo held at Hitex Exhibition Centre, showcasing its strength as a 360o Electric Mobility solution provider by not only being a manufacturer of the vehicles but also as fleet operator and a charging infrastructure provider.

Headquartered in Hyderabad, ETO Motors thrives on its 3E Principles of Environment, Employment and Empowerment working to reduce the carbon footprint, providing employment & empowerment opportunities, ably demonstrating it at the expo.

Chief Guest Shri K. Jagadish Reddy, the Minister for Energy, Govt. of Telangana commended ETO Motors’, a homegrown company for spearheading the electric mobility revolution across the country. He went on to state, “We are extremely happy to see Telangana taking the lead in the Electric Vehicle revolution”. Also in attendance were Guests of Honor Shri Jayesh Rajan, Principal Secretary, IAS (IT & IND), Shri Aravind Kumar, Principal Secretary, IAS (MA & UD), Shri Sunil Sharma, IAS, Special Chief Secretary (Energy), Shri N. Janaiah, VC & Managing Director, TSREDCO, Govt. of Telangana and Mr. Gopalakrishnan VC – Director Automotive Govt of Telangana.

Mr. N.K. Rawal, Managing Director & CEO, ETO Motors said, “We are very happy to launch the OYES (Own Your ETO Scheme) which takes away the hassle of EMIs, loans & Down payments from the drivers, turning them into entrepreneurs, holding to our 3E principle of Employment, Empowerment & Environment.”

As a part of its empowerment principle, ETO Motors’ has innovative schemes to turn drivers into business owners, especially for women, paving the way for financial independence through a steady income – the Own Your ETO Scheme, lauded by stakeholders & visitors alike.

ETO Motors’ vehicles are made for various applications in logistics – including refrigerated trucks, flatbeds, and garbage tippers. The company also works to install robust charging infrastructure, dedicated driver partner networks as well as three & four-wheeler passenger & cargo electric vehicles.

ETO Motors’ brings close to a decade of experience in the EV industry, having been instrumental in setting up 30 MWs of charging infrastructure and a 5MW charging hub at one location. The newest solution made to ease EV charging woes is the Thunder box, an affordable charging point for homes, small businesses, logistics hubs, parking spaces, malls, residential projects & commercial venues was launched during the expo. Thunder box is designed to work with all 2 & 3 wheelers.

Mr. Rajeev YSR, ETO Motors’ VP – Business Development at ETO Motors said, “India has once again proved to be the most exciting automobile market in recent times. By 2030, India is expected to become the 3rd largest automotive market in the world, and the Indian electric vehicle market size is expected to reach an impressive INR 11.42 Lakh Crores in the same period.”

He went on to add, “The electric mobility market is expected to expand significantly till 2030 and we are proud to be spearheading this revolution from Telangana, the go-to destination for all electric vehicle manufacturing & auxiliaries.”

Business

IOB Felicitates Rupinder Pal Singh

Aug 27, 2021 by Rekha Nair 0 Comments #Indian Overseas Bank, #Managing Director & CEO, #Mr. Partha Pratim Sengupta, #Rupinder Pal Singh

Chennai: Indian Overseas Bank (IOB), a leading public sector bank headquartered in Chennai, felicitated Mr. Rupinder Pal Singh, who was part of the Indian hockey team that won the Bronze medal at the 2020 Olympic Games held in Tokyo. He plays as a fullback and is known for his abilities as one of the best drag flickers in the world. Rupinder Pal Singh is an IOB employee of the bank since 2010.

Rupinder was felicitated with the customary shawl and garland by Mr. Partha Pratim Sengupta, Managing Director & CEO, Indian Overseas Bank in the presence of Executive Directors Mr. Ajay Kumar Srivastava and Ms. S. Srimathy and the staff at IOB’s Central Office premises in Chennai.

Speaking on the occasion, Mr. Partha Pratim Sengupta said, “Rupinder has indeed made IOB proud with his achievement at the recently concluded Tokyo Olympics. We look forward to more such laurels from him. IOB will continue to strongly support him in his hockey endeavours. On behalf of the entire staff at IOB from across the length and breadth of the country and also our overseas branches, I wish to take this opportunity to congratulate him and the entire Indian hockey team for their brilliant performance at the world’s biggest and the most coveted sports event.”

As a token of appreciation, IOB presented Rupinder Pal Singh with a cash prize on the occasion. The bank also announced his one-out-of-turn promotion for his active participation as a member of the Tokyo Olympics and for winning the Bronze Medal.

Business, News

Bank of Baroda felicitates COVID warriors on 114th Foundation Day

Jul 22, 2021 by Rekha Nair 0 Comments #Managing Director & CEO, #Shri. Sanjiv Chadha

New Delhi: Bank of Baroda, one of the country’s largest public sector banks, celebrated its 114th Foundation Day on 20th July 2021 by felicitating COVID warriors across all the 18 zones of the bank pan-India. Each of the zones identified employees who had served the society during the pandemic and showed exemplary courage, passion and dedication towards the society and felicitated them.

Apart from the felicitation of the COVID warriors from the bank, Bank of Baroda also felicitated Shri Mayur Shelke, who is employed as a pointsman with Indian Railways in Mumbai, Maharashtra. Shri Shelke risked his life to save a six year old child from certain death when the latter fell onto railway tracks in front of an oncoming train at Vangani railway station, near Mumbai.

The theme for the 114th Foundation Day is about the “Value” all Barodians create and the “Trust” that the bank enjoys of its 140 million customers. And therefore, the theme for the Foundation Day is ‘CREATING VALUE WITH TRUST’. It is about the ability to offer enriching customer experience and enhanced product offerings with the same trustworthy service that the bank is known for.

Bank of Baroda also announced the soon-to-be-launched ‘bob World’, the next generation digital banking platform. ‘bob World’ would be the digital face of the bank and a modern mobile application, regrouping its various products and services under one common digital umbrella brand.

Commemorating the 114th Foundation Day, Shri. Sanjiv Chadha, Managing Director & CEO said, “Our employees showed exceptional courage and served our customers. We gratefully acknowledge the services and sacrifices made by our staff members who have been the pillars of strength in these trying times. On this auspicious day, we also bring the next generation, comprehensive digital banking platform ‘bob World’, which is an expression of the customer centric, progressive and global values of the bank. ‘bob World’ brings digital product delivery to help reposition the bank as a new age bank.”

Business World, News

L&T Finance Holdings announces financial results for the quarter and financial year ended March 31, 2021

Apr 30, 2021 by Rekha Nair 0 Comments #L&TFinance Holdings, #Managing Director & CEO, #Mr. Dinanath Dubhashi

Mumbai: The Board of L&T Finance Holdings (LTFH), a leading Non-Banking Financial Company (NBFC-CIC), today announced the financial results for the fourth quarter and financial year ended 31stMarch 2021. LTFH being a CIC, carries out its businesses through its wholly owned subsidiaries.

LTFHis a market leader (ranked No. 1) in Farm Equipment Finance and Renewable Finance and is ranked #3 financier in both Two-Wheeler Finance as well as in Micro Loans (by book size) along with being one of the leading players in the Infrastructure financing space, more particularly in Renewables, Roads and transmission projects. With a sustainable business model, data analytics driven disbursements and collection and a sharp focus on asset quality and portfolio protection, the company remains committed to building a stable and sustainable organization for its consumers and other stakeholders.

In the quarter, LTFH raised ~Rs 3,000 Cr through Rights issue in Q4FY21, which was oversubscribed by 15%. Furthermore, the Company completed the merger of its operating lending entities – L&T Infrastructure Finance Company Ltd. and L&T Housing Finance Ltd., with L&T Finance Ltd. to create a single unified entity for better operational efficiency, superior cash flow synergies and unparalleled growth.

The Company now maintains a very strong capital adequacy of 23.80%.

Commenting on the financial results Mr. Dinanath Dubhashi, Managing Director & CEO, L&TFinance Holdings, said, “With normalcy returning in the latter half, our focused businesses have witnessed continued momentum in disbursements, with increased market share across desired businesses (15% in Farm and 11% in TW finance). At the same time, we have fully dealt with stresscorresponding to first wave of Covid-19 and have adequately provided for the same through prudent provisioning in FY21 itself and are well prepared to remain resilient on the back of strong fundamentals and a strengthened balance sheet. While the second wave has led to uncertainty and change in market dynamics, we believe that our strengths prepare us well to handle these circumstances.”

Key Highlights

The quarter continued to see economic recovery across sectors led by rural and infrastructure space, which helped our businesses. Our Rural franchise was strengthened with highest ever quarterly disbursements, with leadership positions in Farm & Two-Wheeler financing. Our Infra finance segment witnessed robust sell down momentum which touched Rs. 979 Cr in the quarter and NIMs + Fees increased to 8.17%, duly aided by lowest ever quarterly WAC at 7.65%.

A. Disbursements: In Q4FY21, the company continued to witness a strong pick up in disbursements, duly supported by robust sell down momentum in Infra finance and achieved highest ever quarterly disbursements in Rural finance.
Rural Finance:
a. Farm Equipment Finance: LTFH established itself as the No.1 financier in this segment with a significant increase in market share to 15%. Overall disbursements were up 17% YoY in FY21,achieved on the back of early normalization in CE. The disbursements for Q4 were up 40% on YoY basis. The Company leveraged analytics to gain counter share with identified dealers

b. Two-Wheeler Finance: With improved market share, we have been ranked 3rd in the segment with an 11% increase in market share. In Q4FY21, the business CE saw an uptick from Q3FY21, with disbursements in the quarter also up 14% YoY

c. Micro Loans (ML): With nearly NIL disbursements in Q1FY21 and moratorium till May, Micro Loans business registered its highest ever quarterly disbursement at Rs. 3,181 Cr in Q4FY21, up 54% QoQ and 44% YoY. Re-initiated disbursements to new customers in Q4 on the back of availability of customer repayment data.

Housing Finance:
a. Home Loan: In Q4FY21, the business continued to witness a steady pick up, with home loan disbursements registering a QoQ growth of ~35%. The salaried Home Loan segment registered a growth of 32% QoQ in Q4FY21 and 41% YoY

b. Real Estate: LTFH continued its strategy of focus on project completion by lending only to existing projects during the quarter. The Company plans to start new underwriting in FY22.

Infrastructure Finance:

LTFH continues to be the market leader in Renewable financing and one of the leading players in Infrastructure finance business with robust pipeline to aid disbursement growth in FY22.The business maintained a steady growth QoQ as situation improved. There was a strong uptick in sell-down and pre-payments, led by a strong sell-down desk and pick up in the sector. Strong emphasis was placed on project monitoring through continuous engagement with contractors and developers as well as use of technology like drones, etc.

B. Liquidity: Q1FY21 saw tightened liquidity situation for NBFCs with pandemic led disruptions, moratorium and closure of few debt schemes by a Mutual Fund.LTFH proactively took necessary measures to remain resilient through the pandemic:

• Q1FY21 – Proactively shored up liquidity to safeguard the company against lockdown and moratorium issues
• Q2FY21 – With ease in systemic liquidity & reduction in uncertainty; gradually reduced negative carry and liquidity
• Q3/Q4FY21- Demonstrated strength by raising low-cost funds as well as prepaying / renegotiating high-cost borrowing
• Sharp decline in cost of funds with Q4FY21 WAC at 7.65% – down 78 bps on YoY basis & 17 bps on QoQ basis

As of March 2021, the company maintained liquid assets in the form of cash, FDs and other liquid investments to the tune of Rs. 10,122 Cr.

C. Highest Credit Ratings: A diversified business presence, strategic importance to L&T, strong resource raising ability and adequate capitalization resulted LTFH and all its lending subsidiaries’ long-term ratings been rated ‘AAA’ by all four rating agencies:

a. CRISIL – May 2020 and in December 2020
b. CARE – October 2020
c. India Ratings – September 2020
d. ICRA – September 2020

Subsequent to the merger of L&T Infrastructure Finance Company Ltd and L&T Housing Finance Ltd into L&T Finance Ltd (L&T Finance) becoming effective, all the Rating agencies have reviewed the ratings of L&T Finance and have assigned / reaffirmed the ‘AAA’ rating in April-21.

D. Focus on Strengthening Balance Sheet:LTFH strengthened its balance sheet by maintaining adequate PCR on GS3 book and additional provision on non-GS3 book for any future economic uncertainty. The GS3 assets of the company stood at 4.97% in Q4FY21 of its book, showing a reduction of 39bps YoY. NS3 registered the sharpest improvement since the introduction of Ind-AS and reduced from 2.28% to 1.57% YoY. The company also strengthened the PCR on Stage 3 assets from 59% in Q4FY20 to 69% in Q4FY21. Asset quality and PCR has improved in FY21 vis-à-vis FY20 despite the impact of Covid, showcasing strong underwriting, robust collection and stringent EWS

 

(Rs. Cr) Q4FY20 Q3FY21 Q4FY21
Gross Stage 3 5,037 4,935 4,504
Net Stage 3 2,078 1,791 1,377
Gross Stage 3 % 5.36% 5.12% 4.97%
Net Stage 3 % 2.28% 1.92% 1.57%
Provision Coverage % 59% 64% 69%

As a prudent measure, LTFH is carrying additional provisions of Rs. 1033 Cr (1.2% of standard book) as of Q4FY21.

E. Focused Lending Book: The share of retail portfolio in the overall book grew to 43.4% in FY21. Within the book, Farm Equipment grew 22% on YoY basis and TW book by 8%. The asset size of our Salaried home loans portfolio also grew by 6% in the same period.

 

(Rs. Cr) Q4FY20 Q4FY21 Book Growth (%)
Focused Lending Business
Rural Finance 27,661 30,080 9
Housing Finance 26,584 23,689 (11)
Infrastructure Finance 38,909 37,543 (4)
Total Focused Book 93,154 91,312 (2)
Defocused Businesses 5,230 2,702 (48)
Total Lending Book 98,384 94,013 (4)

The Average Assets under Management (AAUM) of the Investment Management business stood at Rs.72,728 Cr in Q4FY21. The AUM for Equity and Fixed Income asset classes as on 31stMarch,2021, stood at Rs. 40,374 Cr and Rs. 23,386 Cr, with a growth of 4% and 4%, respectively, on a QoQ basis.

F. Financial Performance

Concerted on-field efforts, data analytics led prioritization and resource allocation has led to an increase in collection volumes across businesses to pre-covid levels as well as strong disbursement momentum, supported by a higher total income.

The company posted a consolidated Earnings before Credit Cost (EBCC) of Rs. 1,481 Cr in Q4FY21, a 24 % increase YoY, from Rs. 1,192 Cr in Q4FY20.
o Steady increase in Fee income each quarter (Rural fee up by 5% in FY21 despite disbursements being down by 15%); OverallFee income up by 46%% YoY in Q4FY21
o Reduction in cost of funds by 78 bps YoYfrom 8.43% in Q4FY20 to 7.65% in Q4FY21
o Increase in total income by 16% YoY in Q4FY21
o Reduction in GS3 from 5.36% to 4.97% YoY; NS3 reduced from 2.28% to 1.57% YoY; Increase in PCRfrom 59% to 69% YoY
The PBT for Q4FY21 stood at Rs. 828 Cr, up 135% QoQ and 88% YoY (Rs. 440 Cr in Q4FY20).
o PAT (before exceptional items) of Rs.428 Cr in Q4FY21 vs Rs.386 Cr in Q4FY20
o After one-time exceptional items, PAT for Q4FY21 is Rs. 267 Cr

Mr. Dubhashi further added, “The merger of our three operating lending entities into one entity will enhance governance standards and we also believe that the simplified structure will lead to operational efficiencies and cash flow synergies, thereby creating long term value for stakeholders.Through FY21, LTFS has shown the ability to deal with extremely tough conditions and has emerged strongly. With the recent capital raise, we are suitably placed to deliver medium to long-term growth with increase in retailisation& well positioned to weather any short-term disruptions arising from second wave of Covid.”

Business World, News

Maruti Suzuki partners with Karnataka Bank to offer attractive car loans

Apr 1, 2021 by Rekha Nair 0 Comments #Executive Director (Marketing & Sales), #Karnataka Bank, #Managing Director & CEO, #Maruti Suzuki India Limited, #Mr. Mahabaleshwara M.S, #Mr. Shashank Srivastava

New Delhi: Maruti Suzuki India Limited (MSIL) has signed a Memorandum of Understanding (MoU) with Mangaluru-headquartered private sector lender Karnataka Bank to introduce attractive finance options for customers purchasing their favourite car from the Company. Customers can avail the benefits across 858 branches of Karnataka Bank at metro, urban, semi-urban and rural locations.

Under this collaboration, customers can avail loans up to 85% of the on-road price of all new cars from Maruti Suzuki ARENA and NEXA showrooms. The car loans will bear an interest rate linked to the external benchmark lending rate. Customers can opt for tenure of up to 84 months for their loans.

Rolling out the customer-friendly initiative, Mr. Shashank Srivastava, Executive Director (Marketing & Sales), Maruti Suzuki India Limited, said, “This partnership is aimed to make the vehicle buying journey easy and affordable for our customers. Rapid technological development and new digital consumer behaviours are determining auto sales across India. In recent years, Maruti Suzuki has taken many initiatives in this direction, including the launch of digital Smart Finance platform and innovative schemes to help customers buy new cars at an attractive rate of interest and customized EMI as per their requirements. In FY2020-21, under the tie-up with partner financiers, we have financed more than 9.7 Lakh vehicles. We are confident that the latest tie-up with Karnataka Bank will help meet the diverse finance requirements of our customers.”

Commenting on the partnership, Mr. Mahabaleshwara M.S, Managing Director & CEO, Karnataka Bank, said, “This partnership with Maruti Suzuki India will boost the consumers’ convenience and ease, at the same time they can have the delightful experience of our digital car loan product, to fulfil their aspirations of owning world-class products from Maruti Suzuki. Karnataka Bank offers car loans through our digital and wide branch network with an indigenously developed end-to-end digital platform for existing as well as new customers, enabled with faster processing capabilities. The partnership offers unflinching commitment towards providing best in class services to our customers as well as the potential buyers of Maruti Suzuki vehicles.”

Business World

Governor of Maharashtra Felicitated Gloocal Communications For Effective Healthcare Communication During Covid19 Pandemic

Feb 23, 2021 by Neel Achary 0 Comments #a leading healthcare PR agency based in Mumbai, #Gloocal Communications Pvt. Ltd, #Managing Director & CEO, #Parag Dhurke

Gloocal Communications Pvt. Ltd, a leading healthcare PR agency based in Mumbai was felicitated today in the presence of Hon’ble Shri Bhagat Singh Koshyari, Governor of Maharashtra as ‘Covid Warrior’ at the11th anniversary of Dhagdagti Mumbai a weekly newspaper. The institution recognized individuals and companies who had worked during the Covid19 pandemic helping, supporting people, and front runner healthcare sector during the pandemic situation. Present during the occasion was Shri. Rahul Shewale, Member of Parliament, leading Doctors, Mumbai Police Officials, BMC health Officials, Social Workers & NGOs.

Gloocal Communications Pvt. Ltd is one of the leading strategic PR firms in Mumbai, known for its comprehensive and cutting edge approach, developing brand image, offering strategic advice on image management, visibility, and building a smooth relation between the brand and its audience. The agency provided uninterrupted services even during the Covid19 crisis. When a crisis occurs, proactive, quick, and detailed communication is essential. The agency excels in crisis management and communication and produced the best possible outcome.

Parag Dhurke, Managing Director & CEO, Gloocal Communications Pvt. Ltd, said, “It focuses on analyzing data in depth and comes up with innovative strategies to deliver great stories with its dedicated team. The agency was successful in highlighting the struggle of Covid warriors, their ordeal, and experiences captured aptly by reputed news channels. The agency educated people by dispelling myths surrounding Coronavirus with its strong communication strategies, well-structured and researched stories. ”

“We are honored to be felicitated by our Governor and are committed to working towards client satisfaction and maintaining their reputation. We are happy and proud to be able to serve our clients who believe in us and stood by us during these tough times” concluded Bhaskar Tare, Founder & Director, Gloocal Communications Pvt. Ltd

Business World, News

L&T Finance Holdings Ltd. (LTFH) announces financial results for Q3FY21

Jan 18, 2021 by Rekha Nair 0 Comments #LTFH, #Managing Director & CEO, #Mr. Dinanath Dubhashi

Mumbai: The Board of L&T Finance Holdings (LTFH), a Non-Banking Financial Company (NBFC), present in lending businesses including Rural, Housing and Infrastructure finance,today announced the financial results for the quarter ended December 31, 2020.

LTFH is a market leader in Farm Equipment finance, and among the top five financiers in Two-Wheeler finance, number three financier in Micro Loans and one of the leading players in financing of Infrastructure sectors like renewables and roads. With a sustainable business model, data analytics led collection and disbursements, and a sharp focus on asset quality, the company remains committed to building a stable and sustainable organization for its consumers and other stakeholders.

Commenting on the financial results Mr. Dinanath Dubhashi, Managing Director & CEO, LTFH, said, “Post Covid, the rural economy has performed better than urban and this trend is reflected in our disbursements, which are almost at pre-covid levels. The festive season uptick and a steady recovery in collection volumes also underline our rural performance. Our strong performance in Infra disbursements should be seen alongside the sell-down volumes, which have increased on a YoY basis. It allows us to generate more fee income while proportionately reduces the need for allocating higher capital.”

Key Highlights of Q3FY21:

The quarter saw a strong economic recovery across sectors led by rural and infrastructure. Higher farmer income, positive rural sentiment, combined with the festive season helped maintain market share in farmequipment and two-wheeler finance.

A. Disbursements: The company witnessed excellent pick-up in disbursements across businesses and has achieved highest quarterly disbursement since Q1FY20.

  • Rural Finance: The quarter witnessed steady QoQ&YoY improvements in disbursements across Farm Equipment Finance and Two-Wheeler Finance.
  1. Farm Equipment Finance: Disbursements grew at 43% QoQ(13% YoY), which was the highest quarterlydisbursement since FY17. It witnessed increased business from top dealers on the back of strengthened Trade Advance (TA) proposition
  2. Two-Wheeler Finance: Disbursement growth was at 50% QoQ(10% YoY) and the business continues to see growth momentum
  3. Micro Loans (ML): Strong pickup in ML disbursements QoQ, up 53%, owing to improved collection efficiency. However, disbursements were down 19% YoY as focus remained on existing customers
  • Housing Finance:
  1. The Home Loan business which is focused largely on the salaried segment and direct sourcing, witnessed moderate pickup in disbursements. Home loans to the salaried segment constituted 94% of Q3FY21 disbursements, standing at approx. 93% of Q3FY20 levels
  2. Real Estate: Continued to be selective in disbursements with focus on providing support to existing projects to ensure project completion.
  • Infrastructure Finance: Highest quarterly disbursement since Q1FY19. The business continues to maintain strong emphasis on portfolio monitoring and disbursement focus towards existing projects completion.

 B. Liquidity: Astute treasury management and abundant market liquidity has helped in reducing cost of borrowing, leading to increase in NIMs+Fees to reach 39%

  • Reduction in cost of borrowing by 50bpsQoQ (from 8.32% in Q2FY21 to 7.82% in Q3FY21)
  • Maintained lower average liquid assets during the quarter
  • Prepayment for high cost borrowing and renegotiation of interest rates

AAA rating and strong parentage has helped LTFH bring down the cost of funds this quarter. As of December 2020, the company maintained Rs. 16,442 Cr of liquidity including assets in the form of cash, FDs and other liquid investments of Rs. 7,709Cr

C. Highest Credit Ratings: A diversified business presence, strategic importance to L&T, strong resource raising ability and adequate capitalization resulted in LTFH and all its lending subsidiaries’ long-term ratings rated ‘AAA’ by all four rating agencies:

  1. CRISIL – May 2020 and in December 2020
  2. CARE – October 2020
  3. India Ratings – September 2020
  4. ICRA – September 2020

 D. Balance Sheet: LTFH continues to maintain a strong capital adequacy of 82%.  Furthermore, the ongoing traction in our analytics-based collection efforts augurs well with our objective of building a strong balance sheet.

The Gross Stage 3 assets of the company stood at 5.12%in Q3FY21 of its book, showing a reduction of 82bps YoY. The company also strengthened the PCR on Stage 3 assets from 57% in Q3FY20 to 64% in Q3FY21.

Period Q3FY20 Q2FY21 Q3FY21
Gross Stage 3 5,662 4,921 4,935
Net Stage 3 2,458 1,530 1,791
Gross Stage 3% 5.94 5.19 5.12
Net Stage 3% 2.67 1.67 1.92
Provision Coverage % 57 69 64

As a prudent measure, LTFH continues to carry the additional provisions of Rs. 1,739 Cr in Q3FY21. This is on account of macro prudential provisions, COVID-19 and accelerated Expected Credit Losses (ECL) provisions on Stage 1 & 2 assets, which are over and above the ECL model on GS3 and Stage 1 & 2 assets.

 E. Focused Lending Book: Within the focused lending book, the Rural Finance book grew by 4% YoY, aided by growth in Farm Equipment Finance book by 18%,and the Two-Wheeler Finance book by 9%. The Home Loan segment grew by 3%YoY.

 

Rs. Cr Q3FY20 Q3FY21 Book Growth (%)
Focused Lending Business
Rural Finance 27,594 28,828 4
Housing Finance 26,689 26,174 (2)
Infrastructure Finance 39,674 41,456 4
Total Focused Book 93,956 96,459 3
Defocused Businesses 5,497 3,640 (34)
Total Lending Book 99,453 1,00,099 1

 

The Average Assets under Management (AAUM) of the Investment Management business stood at Rs.68,976 Cr in Q3FY21. The AUM for Equity and Fixed Income asset classes as on 31December 2020 stood at Rs. 38,906 Cr and Rs.22,483 Cr, with a growth of 9% and 20%,respectively, QoQ basis.

Financial Performance:

LTFH is focused on leveraging the power of data and analytics to build a ‘collection-led disbursement’ model, which, along with economic recovery in the rural segment, has led to a significant improvement in collection efficiency and a strong pickup in disbursements (QoQ). The sentiment continues to remain positive in the rural sector.

The company posted a consolidated PAT of Rs. 291 Cr in Q3FY21, a 10% increase QoQ, from Rs. 265 Cr inQ2FY21

  • PAT in Q3FY21 saw a 51% reduction YoY, from 591 Cr in Q3FY20
  • NIMs+Fees at 39% (Q3FY21) vs 7.29% (Q3FY20), highest ever since FY17
  • Reduction in GS3from 94%to 5.12% YoY;NS3 reduced from 2.67% to 1.92% YoY; Increase in PCR from 57% to 64% YoY
  • The cost of funds has gone down by nearly 50 bps for the entire book from 32% in Q2FY21 to 7.82% in Q3FY21

Mr. Dubhashi further added, “In the long term, structural changes such as government initiatives, normal monsoons and better infrastructure will continue to improve financial health in rural. We will maintain focus on capitalizing on our market leadership position in Farm Equipment and Two-Wheeler Finance to drive business volumes.”

 

Technology

ICICI Prudential Life Launches AI-powered voice chatbot on Google Assistant

Sep 2, 2020 by Gouri Achary 0 Comments #Artificial Intelligence (AI), #ICICI Prudential Life, #ICICI Prudential Life Insurance, #ICICI Prudential Life LiGo, #Managing Director & CEO, #May I talk to ICICI Prudential Life LiGo"., #Mr. N S Kannan

Septemeber, 2020:ICICI Prudential Life Insurance has introduced its customer service chatbot ‘LiGo’ on ‘Google Assistant’.This would enable the Company’s policyholders to have their queries addressed by simple voice commands such as “Ok Google, I want to speak to ICICI Prudential Life LiGo” or “May I talk to ICICI Prudential Life LiGo”.

Expanding its innovation quotient by leveraging digital technologies such as Artificial Intelligence (AI) the Company has added another layer of convenience for its customers. Extending LiGo functionalities to Google Assistant is part of the Company’s strategy to be present on platforms preferred by customers and to offer them an immersive experience

Customers can instantly access information on their policies by activating ‘Google Assistant’ on their Android smartphones and speaking out their policy number or registered phone number. It is as simple as asking Google for directions or traffic.

In this ever-evolving digital world where speed, efficiency and convenience are continually being enhanced, there has been rapid adoption of AI-powered voice assistants by individuals owing to personalized, and immediate experiences being provided. Available in Indian English’ and with support for nine Indian languages, Google Assistant enables people to have a conversation with Google, and get things done in their world in a natural and personalized way.

Mr. N S Kannan, Managing Director & CEO, ICICI Prudential Life Insurance said,”At ICICI Prudential Life, all our innovations hinge around customer-centricity. Sometime back we embarked on our hyper-personalization journey built on the pillars of 3 Vs – Video, Voice and Vernacular. Catering to the evolving needs of our customers, we have enabled our customer service voice bot LiGo on ‘Google Assistant’, making it accessible on all platforms and devices it is available on. Accessing policy information based on voice commands provides unmatched convenience and instant gratification. With the addition of this digital enabler, there will be a transformation in the way customers interact with the Company. We will continue to innovate to further empower our customers”

By leveraging new-age technologies the Company has introduced a bouquet of digital enablers to address every requirement of a customer during the policy lifecycle –from on-boarding to servicing the needs of the customers. For instance, customers can use the Company’s digital enablers to transact online and each of the digital enablers, i.e. WhatsApp, the Company website, mobile app and Chatbot LiGo are almost equivalent to a virtual branch. On Chatbot LiGo about 3.5 lakh voice chats per month are conducted. Customers can leverage any of these digital enablers to perform an assortment of transactions.

Business World

DBS Bank India appoints Prashant Joshi as Managing Director and Head of National Distribution

Aug 18, 2020 by Gouri Achary 0 Comments #DBS Bank India, #Managing Director & CEO, #Prashant Joshi as Managing Director & Head of National Distribution, #Surojit Shome

DBS Bank India announced the appointment of Prashant Joshi as Managing Director & Head of National Distribution today. He brings with him close to three decades of experience in the banking sector across consumer, SME and corporate banking with leading banks and financial institutions. He will report to Surojit Shome, Managing Director & CEO of DBS Bank India Limited.

Commenting on the announcement, Surojit Shome, Managing Director & CEO, DBS Bank India said, “The bank is on a strong growth trajectory and we are very pleased to have Prashant on board to accelerate this momentum. His deep understanding and experience in both retail and SME segments will be invaluable to the bank’s growth plans as we expand our footprint across India.”

Prashant joins DBS Bank India from IndoStar Capital Finance, where he held the position of Chief Operating Officer and was responsible for setting up the SME and affordable housing finance business. Apart from this, he also managed the Operations & Technology platforms for all businesses.

Prior to IndoStar Capital Finance, Prashant has worked with Deutsche Bank for eight years and was responsible for creating a successful retail banking franchise. He has also created high quality, profitable SME and retail assets businesses at Standard Chartered Bank and IDBI Bank respectively. For the first decade of his career, Prashant worked in project finance and corporate finance at ICICI Limited and Rabo India Finance (a Rabobank subsidiary). He holds a bachelor’s degree in Commerce from the University of Bombay and is a qualified cost accountant. He also holds a Postgraduate Diploma in Management from the Indian Institute of Management, Calcutta.