The September quarter results are extraordinary. At a time when lending came to a halt, these guys managed to lend more and cover more of the previously leant money.
Some key big investors are also investing in the company. After the recent small bank license fail
VG Mathew MD& CEO of the bank addressed the call:Highlights by Capital Mkt
Bank has improved business growth to 13% in Q2FY2016 from 12% in the previous quarter. Bank has maintained the advances growth steady at 12% at end September 2015, despite decline in the gold loan book.The decline in Loan-to-Value (LTV) ratio and price volatility has led to the drop in gold loan book. As per the bank, the prospects for growing gold loan book has improved with the reduced price volatility.
Bank is strongly focusing on retail and SME loans segment, while proposes to further deepen relationships with retail and SME customers. Bank intends to emerge as a bank of choice in the SME segment. The bank is planning to set up more housing loan hubs to boost home loans growth.Bank has recorded loan growth of 13% in the first half of FY2016, while expects loan growth to be higher in the second half of FY2016. Bank has targeted loan growth of 30% for auto and housing segments, 20% for agriculture and SME segments and 12% for small corporate loans (Rs 25-50 crore).
Fresh slippages of advances jumped to Rs 222 crore in Q2FY2016, mainly contributed by one pharma sector account of Rs 119 crore from restructured advance book. Another small corporate account contributed slippages of Rs 37 crore, while rest of the slippages came from smaller accounts in Q2FY2016.Bank has restructured one account from road sector with the exposure of Rs 95 crore in Q2FY2016, mainly on account of change in date of commencement of commercial operation.
Outstanding restructured advance book of the bank stood at Rs 2000 crore at end September 2015. As per the bank, about 44% of the restructured advance relates to power sector, and expects these account to show turnaround with the recent measures announced by the government.Regarding the non-power sector restructured advances, bank sees no major concerns, which includes about 11 accounts with the exposure of Rs 50 crore and above each.Bank always intends to maintain GNPA ratio below 2%. However, the GNPA ratio increased above 2% mark in Q2FY2016 due to slippages of one large pharma account. Bank expects to bring GNPA ratio below 2% by end March 2016.Bank has improved the NIM to 2.81% in Q2FY2016 supported by rationalization of liabilities. Meanwhile, bank is working on further rationalization of liabilities and expects to sustain NIM at current level.Bank witnessed surge in employee expenses in Q2FY2016 mainly on account of one-off leave encashment provisions of Rs 5 crore and another Rs 5 crore of provisions related to employee wage revision. Bank expects to improve cost-to-income ratio to 56% by end March 2016 and proposes to further improve cost-to-income ratio to 50% in the medium term.Bank recorded large write-back of Rs 37.9 crore of restructured advances provision in Q2FY2016 on account of change in working of sacrifice provision for restructured advance as well as slippages of large restructured advance account to NPA category in Q2FY2016.
Regarding the emerging competition from the newly licensed banks, bank has been strongly working on improvising its net and mobile banking platform.
Till the recovery takes place. It will grow north of 25% once things improve.
Friends,this might be a bit old news for some but I came across this just now.Is this something we need to be concerned about?
Are there any regulatory issues that might prop up?How does this reflect upon the management and corporate governance?
So gruh seems to be settling down to a more sedate trajectory of 20% type of PAT growth
It appears to be result of some well published accounts going bad. Nothing to be worried about for the long term believers.
Sudhin Choksey Interview
Gross NPA at 0.58%, asset quality under pressure: GRUH Fin
Hello All,
The above thread is more focused on opening the demat account for a NRI. However the crux of the discussion would be, after opening the demat account:
How would one continue to invest in equities without violating any US or Indian tax regulations?
The process of filing the tax within the US? (no need to declare tax in India, if the earning is only in Equities (please be aware of LTCG and STCG) and not earning from any other source
Point 1 being answered will eliminate many of our doubts/concerns. It would be helpful to get other hoarders view on this. Appreciate your time.
Thanks,
Manju
SKS reports another set of good numbers.
http://corporates.bseindia.com/xml-data/corpfiling/AttachLive/12D7EED0_E780_401B_9666_45D7E77E3923_202506.pdf
Loan Disbursals up - 57%
NII up - 59%.
NP up - 37%
Cost of borrowings down 90 BPs to 11.2% from 12.1%.
Cost to income ratio down by 5.3% to 47% from 52.3%.
Gross NPA 0.2% and Net NPA 0.1%.
ROE of 26.9%.
Avg. ROA of 5%.
H1 Book Value of 94.9 and 119 including deferred tax arrangement.
Collection efficiency of 99.7%.
Cap. Adequacy ration of 24.6% against RBI mandated 15%.
Profit guidance raised to 290 Crs. from 235 Crs.
Regards.
We should not read too much into the way (behavioural part) he is answering questions. I think what he is trying to say is that CCL enters into yearly contractual arrangements and these shipments need to be delivered in an year. And it might happen that a shipment may not be released on 30th September but got released on 1st October instead and therefore revenue not booked in the previous quarter and will be booked in next quarter. Hence he is trying to emphasis that it is not an actual de-growth and one should look at annual numbers rather than QoQ comparisons (be it previous Qtr. or last years same Qtr.)
That is the way I may read it. Using the word 'may' as I am not invested in CCL and therefore might not seriously dig into the reasons behind the numbers. Just offering a view point.
Regards.