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Thursday, June 22, 2017

Finance Ministry to finalise capital infusion of Rs 8K-cr within 15 days

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NEW DELHI: The Finance Ministry is giving final touches to infusing around Rs 8,000 crore in public sector banks (PSBs) as part of its second and final tranche for the current fiscal, 2015-16.

The second round of capital infusion is almost ready and in the next few days it should go to Finance Minister Arun Jaitley for approval, sources said.

The entire process should be over within a fortnight and then the respective bank would start receiving funds, sources added.

The second round of funding would be based on the strict parameters, sources said, adding that few banks would be eligible, and include those whose common equity Tier 1 (CET1) capital is lower than 8 per cent.

Some of the banks eligible for fund infusion include IDBI BankBSE -2.57 %, Indian Overseas BankBSE -0.92 % and UCO BankBSE 0.54 % where CET1 has been less than 8 per cent at the end of the third quarter of the current fiscal.

The government has already announced fund infusion of Rs 22,915 crore, out of the Rs 25,000 crore earmarked for 13 PSBs for the current fiscal. Of this, 75 per cent has already been released to them.

The first tranche was announced in July with the objective of enhancing their lending operations and enabling them to raise more money from the market.

Under Indradhanush roadmap announced last year, the government will infuse Rs 70,000 crore in state banks over four years while they will have to raise further Rs 1.1 lakh crore from the markets to meet their capital requirement in line with global risk norms Basel-III.

In line with the blueprint, PSBs are to get Rs 25,000 crore in each fiscal, 2015-16 and 2016-17. Besides, Rs 10,000 crore each would be infused in 2017-18 and 2018-19.

In the Budget 2017-18 speech on February 1, Jaitley announced capital infusion of Rs 10,000 crore for the next fiscal beginning April 1.

GRUH Finance Ltd. – Profit After Tax for the Year Amounted to Rs. 186.20 Crores as Compared to Rs. 155.76 Crores for the Previous Year, an Increase of 20%

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AHMEDABAD, India, January , 2017

Financial Results for Nine Months Ended December 31, 2016

The Board of Directors of GRUH Finance Ltd. (GRUH) – a subsidiary of HDFC Ltd. – has approved the accounts for the quarter ended December 31, 2016 at their meeting held in Ahmedabad on January 13, 2017.

FINANCIAL RESULTS

Profit after tax for the year amounted to Rs. 186.20 crores as compared to Rs. 155.76 crores for the previous year, an increase of 20%.

Loan Portfolio

The loan portfolio as at December 31, 2016 amounted to Rs. 12534.01 crores as against Rs. 10519.36 crores in the previous year – an increase of 19%.

LENDING OPERATIONS

Loan Disbursements

Loan disbursements during the period were Rs. 2870.09 crores as against Rs. 2773.91 crores in the previous period indicating a growth of 3%.

Cumulative loan disbursements as of December 31, 2016 were Rs. 21941.79 crores.

Non-Performing Loans

The aggregate NPAs of the company at Rs. 68.17 crore are 0.54% of the Loan Assets, without taking into account relaxation given by NHB vide circular # NHB(ND)/DRS/Policy Circular No. 77/2016-17 dated November 21, 2016 as against 0.62% of the Loan Assets as on December 31, 2015.

GRUH is required to carry a provision of Rs. 15.63 crore on its Gross NPA portfolio of Rs. 68.17 crore as on December 31, 2016 and Rs. 59.04 crores towards standard assets i.e. a total provision of Rs. 74.67 crore.

However, as a prudent measure, GRUH has made more than the required provision in its books. The total provision carried in the books including the provision for standard assets is Rs. 127.22 crore. As a result, the Net NPA as at December 31, 2016 stands at Rs. NIL indicating Net NPA to loans of NIL.

DEPOSITS

GRUH’s deposit portfolio has increased to Rs. 1503.29 crores, up from Rs. 1389.38 crores last year. GRUH’s Fixed Deposit programme has been rated “FAAA” by CRISIL and “MAAA” by ICRA. The rating of “FAAA” and “MAAA” indicates ‘Highest Safety” as regards repayment of interest and principal. GRUH’s Commercial Paper (CP) is rated at “A1(+)” by ICRA and CRISIL and Non Convertible Debenture (NCD) is rated at “AAA” by ICRA and CRISIL.

RETAIL NETWORK

GRUH has a network of 183 retail offices across 10 states of the country. GRUH has 48 offices in Gujarat, 50 offices in Maharashtra, 17 offices in Karnataka, 29 offices in Madhya Pradesh, 12 offices in Rajasthan, 12 offices in Chhatisgarh, 10 offices in Tamil Nadu, 3 in Uttar Pradesh and one office each in Bihar and Jharkhand. For more information, visit: www.gruh.com

Highlights of Operational Performance

(Rs. in crore)

    
                             December 31,    December 31,
    Detail                       2016            2015      Growth (%)
    Net Interest Margin         375.14          303.90         23
    Non Interest Expenses        65.50          60.22          9
    Operating Profit            333.08          271.48         23
    Profit Before Tax           282.04          236.92         19
    Profit After Tax            186.20          155.76         20
    Outstanding loan
    Portfolio                  12534.01        10519.36        19

Deals buzz: LIC raises stake in Bata India to 7.05%

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Mumbai: Mint brings to you your daily dose of top deals reported by newsrooms across the country.

ICICI Home Finance sale shelved as demonetisation dims real estate outlook

ICICI Bank Ltd’s proposed sale of its home financing unit has been put on hold for the second time this year after talks with private equity fund TPG broke down amid disagreements over valuation and changed market conditions following the government’s demonetization move, according to two people familiar with the development.

TPG entered the fray for the third time in October this year to buy ICICI Home Finance Co. Ltd after parent ICICI Bank’s talks with private equity funds India Value Fund Advisors (IVFA) and Baring Private Equity Asia went sour, the people said, requesting anonymity.

In April, Mint had reported that ICICI Bank had put the plan to sell the subsidiary on the back-burner after a disagreement on the price with potential private equity buyers. Read more.

TVS Infrastructure in talks to buy 86% stake in MJ Logistics

Eredene Capital Plc is in talks with TVS Infrastructure Ltd to sell its entire stake in MJ Logistics Services Pvt. Ltd for approximately Rs80 crore, two people with direct knowledge of the matter said. Eredene is exiting its holding at a loss, the second person said, also declining to be named.

London-based Eredene had invested around £11 million (Rs93.34 crore) in MJ Logistics, a provider of logistics, warehousing and distribution services in north India, for a 90% stake in 2008.

The fair value of the fund’s investment has since declined to £9.2 million (Rs78 crore), a value erosion of about 16%, Eredene had disclosed in its annual report in March. As on March 2016, it held a 86% stake in MJ Logistics. Read more.

Bank of Baroda in talks to buy Central Bank’s housing finance arm

Bank of Baroda is holding discussion to acquire a controlling equity stake in Cent Bank Home Finance (CBHFL), the housing finance subsidiary of Central Bank of India, as it looks to strengthen its position in the home loan segment.

At present, Central Bank owns 64% stake in CBHFL, while HUDCO, UTI and National Housing Bank are the other promoters.

The Press Trust of India reported citing sources that Bank of Baroda has appointed SBI Capital Markets, while Central Bank has engaged a couple of merchant bankers, including IDBI Capital as advisors. Read more.

Paras Healthcare looks to raise Rs350-400 crore from PE funds

Healthcare group Paras Healthcare, which runs Paras Hospitals in north India, has initiated discussion with private equity (PE) funds to raise about Rs350-400 crore to finance expansion, two people aware of the matter said.

The owners will sell about 25-30% stake in the company, the first of the two persons said. The names of the PE funds could not be ascertained. The hospital chain has hired Avendus Capital to advise on the stake sale.

Paras joins several other leading hospital chains in the country which are looking for fund-raising or outright sale.

Others up for sale or stake sale include IDFC Alternatives Ltd-backed Sahyadri Hospitals Ltd; Multiples Alternate Asset Management Pvt. Ltd-owned Vikram Hospital (Bengaluru) Pvt. Ltd; Ascent Capital Pvt. Ltd and OrbiMed Advisors LLC-backed Kerala Institute of Medical Sciences; Mumbai-based maternity clinic chain Surya Mother & Child Care Super Speciality Hospital and Hyderabad-based Sunshine Hospital. Read more.

Former Snapdeal product chief Anand Chandrasekaran invests in Wooplr

Wooplr Technologies Pvt. Ltd, an online marketplace for women’s clothes, has raised an undisclosed amount of funds from Anand Chandrasekaran, a former chief product officer of Snapdeal.

Wooplr will use the funds for product development and marketing, a top executive of the company said.

“Anand is a visionary who knows how to build products. Given his participation, we will be able to learn from his experience and tap into his wide network to grow,” Arjun Zacharia, co-founder and chief executive officer of Wooplr, said in a telephone interview.

Chandrasekaran has invested $25,000-30,000 as part of a larger funding round, in which Wooplr raised less than $1 million from Astarc Ventures in October. Read more.

IOC eyes 26% stake in GSPC’s Mundra LNG terminal

State-run oil giant Indian Oil Corp. Ltd is holding discussion to acquire a 26% equity stake in debt-laden Gujarat State Petroleum Corp. Ltd’s (GPSC) almost-completed Rs4,500 crore Mundra LNG import terminal in Gujarat.

The 5 million tonnes a year import terminal, the third facility in Gujarat for import of natural gas in its liquid form in ships, is nearing completion and GSPC is keen to exit the project completely. “They offered us all of their 50 per cent stake but we are keen to take 26 per cent for now,” the Press Trust of India reported citing an Indian Oil Corp official.

With a view to expand its gas business, IOC is keen to buy a stake in Mundra terminal but does not want GSPC to exit the project completely. Read more.

LIC raises stake in Bata India to 7.05%

State-owned Life Insurance Corporation (LIC) has hiked its stake in footwear major Bata India by 2.03%, taking its total shareholding in the company to 7.05%. LIC bought 26.11 lakh equity shares, amounting to 2.03% stake, from open market during 20 January to 8 December 2016, according to a stock market disclosure. LIC held 5.02% stake in Bata India earlier.

For the second quarter ended September, Bata India reported 36.35% fall in net profit at Rs34.59 crore as against a net profit of Rs54.35 crore in the year-ago period. Read more.

IL&FS exploring sale of controlling stake in capital markets subsidiary

Infrastructure Leasing and Financial Services (IL&FS) is in exploratory talks to divest a controlling stake in its capital markets arm, The Economic Times reported citing sources directly close to the matter.

The sale is not certain. However, IL&FS is seeking to raise as much as Rs600 crore for its 80% stake in IL&FS Securities Services, which offers derivatives clearing and settlement services to as many as 1,000 stockbrokers. Among those approached are said to be US based funds services and investment management giant State Street Corporation and the growth capital arm of private equity fund Carlyle, the paper said. Read more.

Chargesheet filed against builder for housing loan con

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MUMBAI: The police on Friday filed a 500-page chargesheet against Pujit Aggarwal, managing director of Orbit Corporation Ltd in a Rs 2.53 crore cheating case.

Deputy commissioner of the economic offences wing, Sussairaj Jaykumar, said that achargesheet has been filed in one case against Aggarwal.

Aggarwal was arrested on September 8 in a cheating case filed at Azad Maidan police station by Capri Global Capital Ltd. The complainant firm told the police that it had bought three flats in Agarwal’s Orbit Residency Park in Sakinaka in 2010. Ashok Aggawal, the complainant, working with the company as senior vice president, had filed an FIR on May 3, 2016. The complainant alleged that Agarwal had not disclosed to them that the project was mortgaged to LIC Housing Finance Limited.

“Agarwal was supposed to deposit cheques in an escrow account as per the agreement with LICHFL but instead de posited them in another account. The matter came to light after LICHFL took over the project and put it on auction as Orbit defaulted its loan,” the complainant had told police in statement.

When Aggarwal was produced in court 34 other flat buyers came to the police and said that they too had invested in the project but were still waiting for their flats. Aggarwal is in Taloja jail.

Max Financial Services Consolidated Profit Before Tax for the Half Year Ended September 2016 Grew 27% to Rs. 313 cr.

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New Delhi, Delhi, India

H1 FY2017 Results Highlights:
MFS Consolidated Revenues*: Rs. 5,306 Cr., grew 18%
Max Life Revenues*: Rs. 5,286 Cr., grew 17%; Shareholder Profits: Rs. 344 Cr., grew 31%
Max Life AUM as at 30th Sep 2016: Rs. 39,647 Cr., grew  21%

Max Financial Services Ltd. (MFS), the first company to be listed following the demerger of the erstwhile Max India, today announced impressive financial results for the first half of FY2017. MFS, which was India’s first listed company providing pure access to the life insurance sector, reported strong performance, with consolidated revenues of Rs. 5,306 Cr*. and consolidated Profit Before Tax (PBT) of Rs. 313 Cr. in H1 FY2017, growing 18% and 27%, respectively, over the corresponding period last year.

In Q2 alone, the Company reported consolidated revenues and PBT of Rs. 3,064 Cr. and Rs. 175 Cr., growing 18% and 26% over Q2 FY2016, respectively.

MFS’ sole operating subsidiary Max Life Insurance performed strongly on all business parameters maintaining its position as the best-in-class provider of long-term savings and protection products. Max Life reported revenues* of Rs. 5,286 Cr. in H1 FY2017, growing 17% over the same period last year, while New Sales in the first half of the year, increased 22% to Rs. 1,120 Cr. The company also reported Shareholders’ PBT of Rs. 344 Cr., 31% higher compared to last year.

Max Life’s Assets Under Management (AUM) stood at Rs. 39,647 Cr. as at 30th September 2016, growing 21% over last year.

In August 2016, the Board of Directors of Max Life Insurance Company, Max Financial Services Ltd., Max India Limited and HDFC Standard Life Insurance Company Ltd. (HDFC Life), at their respective meetings had finalized agreements for the amalgamation of business between the entities through a composite Scheme of Arrangement. In the ensuing period, both the entities have progressed with regulatory approvals as planned.

Commenting on MFS’ performance, Mr. Rahul Khosla, President, Max Group and Chairman, Max Life Insurance said, “Max Life Insurance has steadily grown to become one of the largest and fastest-growing private life insurers in the country. As we work towards completing the proposed merger with HDFC Life over the next few months, we will continue to focus on our strengths of selling long-term savings and protection products, through a well balanced distribution architecture including productive bancassurance partnerships and a profitable agency force  while ensuring the best returns and protection for our policyholders.”

Sharing an update on the status of the proposed merger of Max Life with HDFC Life, Mr. Mohit Talwar, Managing Director, Max Financial Services Ltd. said, “Since the signing of the definitive agreement in August, we have made satisfactory progress in the regulatory filings process and approvals are expected as per anticipated timelines. We have filed applications with the Competition Commission of India, the Insurance Regulatory and Development Authority of India (IRDAI) as well as both the National Stock Exchange and the Bombay Stock Exchange.”

The proposed merger is subject to applicable board, shareholder, regulatory, respective High Courts and other third-party approvals.

About Max Group

The Max Group is a leading Indian multi-business conglomerate with a commanding presence in the Life Insurance, Health & Allied businesses and packaging sectors. In FY 2016, the Group recorded consolidated revenues of Rs 14,237 Cr. It has a total customer base of 9 million, nearly 240 offices spread across India and people strength of 22,500 as on 31st March 2016.The Group’s investor base includes marquee global financial institutions such as Goldman Sachs, KKR, IFC Washington, Fidelity, Ward Ferry, New York Life, Wasatch and Invesco.

The Max Group comprises three holding companies, namely Max Financial Services, Max India and Max Ventures & Industries.

About Max Financial Services Limited

Max Financial Services Limited (MFS), a part of the US$ 2 billion Max Group, is the parent company of Max Life, India’s largest non-bank, private life insurance company. MFS actively manages a majority stake in Max Life Insurance Company Limited, making it India’s first listed company focused exclusively on life insurance. Max Life is a joint venture with Mitsui Sumitomo Insurance (MSI), a Japan headquartered global leader in life insurance.

 

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