Connect with us
Tuesday,02-March-2021

Business

Axis Bank’s Q3FY21 net profit falls 36%

Published

on

Axis-Bank

Lending major Axis Bank’s net profit for the third quarter of 2020-21 fell 36 per cent due to higher provisioning.

Accordingly, the bank’s net profit fell to Rs 1,116.6 crore from Rs 1,757 crore reported during the corresponding period of the previous fiscal.

The bank said profit after tax for the quarter was adversely impacted to the extent of Rs 1,050 crore on account of prudent expenses and provisioning charges.

However, the banking major’s net interest income grew by 14 per cent to Rs 7,373 crore from Rs 6,453 crore reported during the like period of the previous fiscal.

“Net interest margin (NIM) for Q3FY21 was 3.59 per cent as against 3.57 per cent for Q3FY20,” the bank said in a statement.

As per the statement, specific loan loss provisions for Q3FY21 were Rs 1,053 crore, compared to Rs 2,962 crore in Q3 last year.

“The bank has made provisions on “90+ DPD” accounts not classified as NPA pursuant to the Supreme Court judgment, at rates that would have applied to these accounts per extant provisioning rules for NPA in the banks, amounting to Rs 3,899 crore during the quarter.”

“The bank holds cumulative provisions of Rs 11,856 crore at the end of Q3FY21. It is pertinent to note that this is over and above the NPA provisioning included in our PCR calculations.”

Notably, these cumulative provisions translate to a standard asset coverage of 2.08 per cent as on December 31, 2020.

“As on 31st December 2020, the bank’s reported Gross NPA and Net NPA levels were 3.44 per cent and 0.74 per cent respectively as against 4.18 per cent and 0.98 per cent as on 30th September 2020.”

“Absent the standstill to asset classification post August 31, 2020 pursuant to the Supreme Court judgment, the bank would have been required to report GNPA per RBI’s extant IRAC norms for asset classification.”

Accordingly, the GNPA ratio as per said IRAC norms as on Dec 31 would have been 4.55 per cent and Net NPA ratio would have been 1.19 per cent.

“This reflects decline of 45 bps and 90 bps respectively on a YoY basis and an increase of 27 bps and 16 bps on GNPA and NNPA respectively on a sequential basis.”

Business

Petrol and diesel prices unchanged for 3rd straight day

Published

on

Petrol

The rise in the prices of petrol and diesel has paused for the last three days as oil marketing companies (OMCs) have decided to wait and watch the developments on global oil market before finalising their India retail strategy.

The OMCs kept the pump price of petrol and diesel unchanged on Tuesday. With this, petrol continues to be priced at Rs 91.17 a litre and diesel Rs 81.47 a litre in the national capital.

Across the country as well, petrol and diesel prices remain unchanged.

Sources in OMCs said that price pause on Tuesday followed subdued movement in product price in global markets. The crude oil, which has been on fire for the last couple of weeks, has also shown some downward movement lately, staying at less than $63 a barrel now.

Petrol and diesel prices have been rising continuously since February 9. In the 14 increases since then, prices have gone up by Rs 4.22 per litre for petrol while diesel rate has risen by Rs 4.34 a litre in Delhi.

The increase in the previous weeks has taken petrol past the historic high levels of Rs 100 a litre in several cities across the country.

In Mumbai, petrol prices is just Rs 2.4 per litre short (Rs 97.57 a litre) of touching the three-figure mark of Rs 100 per litre for the very first time ever. Diesel prices in the city are closing on Rs 90 a litre (Rs 88.60 a litre).

In all the other metros, petrol is over Rs 90 a litre-mark, while diesel is well over Rs 80 a litre. Premium petrol had crossed Rs 100 per litre mark in several cities in Rajasthan, Madhya Pradesh and Maharashtra a few days back.

Since fuel prices are benchmarked to a 15-day rolling average of global refined products’ prices and dollar exchange rate, pump prices can be expected to remain northbound over the next few days even if crude price stabilises.

Petrol and diesel prices have increased 26 times in 2021 with the two auto fuels increasing by Rs 7.46 and Rs 7.60 per litre, respectively, so far this year.

Oil company executives said that petrol and diesel prices may increase further in the coming days as retail prices may have to be balanced in line with global developments to prevent the OMCs from making a loss on sale of auto fuels.

Continue Reading

Business

Government-NUSI ink MoUs for Rs 225 Cr benefits to seafarers

Published

on

Indian-seafarers

In a third major achievement in 3 months, the National Union of Seafarers of India (NUSI) signed six memorandums of understanding (MoUs) with the Centre to extend various benefits worth Rs 225-crore to the 4,00,000 Indian seafarers across all categories, a top unionist said here on Tuesday.

The MoUs were signed between NUSI General Secretary Abdulgani Y. Serang and Director-General of Shipping Amitabh Kumar ahead of the crucial Maritime India Summit (MIS) starting Tuesday, and as part of the NUSI’s 125th anniversary celebrations.

“For the first time in Indian maritime history, the six MoUs have been signed for the welfare, training, medical, education and other requirements of the sea-farers,” Serang told IANS.

The scope of the MoUs includes: Financial assistance for Covid-19 vaccination to all seafarers, sponsorship to seafarers or their families to study at the Indian Chapter, World Maritime University in Sweden, Training and Skill Enhancement to seafarers free of cost.

Other important areas covered are: Medical and education assistance to seafarers and their families, and also educational help to kin of retired/deceased seafarers, said NUSI Spokesperson Sunil Nair.

The NUSI claimed that it was their third major milestone for the seafarers in the past three months at the height of the pandemic when the Indian and global maritime industry suffered hugely.

In December, the NUSI and FSUI clinched an agreement with Indian National Shipowners Association (INSA) for a hefty 40 per cent wage hike with retrospective effect to all seafarers.

In January, the government agreed to extend the provident fund, gratuity, and pension to all ranks of seafarers serving on both Indian or foreign flag ships, after years of struggle by NUSI.

However, with the efforts of Shipping Minister Mansukh Mandaviya and Prime Minister Narendra Modi, the demands have been accepted which will go a long way to ensure the financial, medical and academic well-being of the seafarers and their families after they retire, the NUSI leaders said.

Continue Reading

Business

Shipping Corp shares up 15% as government gets multiple EoIs

Published

on

Shipping-Corporation-of-India-Ltd

Shares of Shipping Corporation of India Ltd surged over 15 per cent on Tuesday as its disinvestment process gathered momentum with the government receiving multiple Expressions of Interest (EoI) for the privatisation of the company.

Around 12 p.m., its shares on the BSE were trading at Rs 120.15, higher by Rs 16.45 or 15.86 per cent from its previous close.

Taking to Twitter, Tuhin Kanta Pandey, the Secretary for Department of Investment and Public Asset Management (DIPAM) on Monday said: “Multiple Expressions of Interest have been received for privatisation of Shipping Corporation of India Limited. The transaction will now move to the second stage.”

The Union government proposes to sell its entire shareholding of 63.75 per cent in the listed entity to a buyer that will take over the company with full management control.

The government expects to complete the privatisation in the coming financial year. Presenting the Union Budget for FY22, Finance Minister Nirmala Sitharaman had said that all the announced disinvestment processes will be completed during the upcoming fiscal.

Continue Reading
Advertisement
Advertisement

Trending