Commercial vehicle finance company Shriram Transport Finance reported a 13% year-on-year decline in net profit, which stood at R301.4 crore, for the quarter ended December 31, due to higher provisioning and increased finance cost. The companys net interest income for the quarter stood at R934.5 crore, up 4.5% from a year ago. Provision has gone up by nearly R40 crore quarter-on-quarter. Other than that, operating expense also increased by another R20 crore," said managing director Umesh Revankar. Gross non-performing assets (NPAs) for the quarter stood at R1,387 crore, up 10% sequentially. As a ratio of total assets, gross NPAs was up 29 basis points (bps) quarter-on-quarter at 3.56% as on December 31. Revankar blamed the weaker economy for the fall in asset quality, since the most of the companys client base is of small individual operators. We have more people for recovery now. We believe in meeting the customers regularly and collect our dues, he said, talking about asset recovery. The company will however not resort to seizing customer assets for recovery, Revankar added.
IFC ups exposure limit in rupee bonds by $50 m
The International Finance Corporation (IFC) has increased its exposure limit by $50 million in the rupee-denominated Indian bonds, which was set up to promote capital market and encourage foreign investment.
This is the second increase to the IFC global rupee bond, which was issued in November 2013 under the $1 billion IFC global rupee bond programme.With this increase the total outstanding amount of the bond reached R2,300 crore (about $380 million).
Sebi slaps R10-lakh fine on Pal & Paul Builders
Capital market regulator Sebi has imposed a penalty of R10 lakh on Pal & Paul Builders for alleged delay in making yearly disclosures to stock exchanges for 14 years. In an order issued on Tuesday, Sebi said that Pal & Paul Builders had utterly neglected its duty of making the disclosures since 1998 and the same continued till 2011. Noting that the firm had demonstrated a casual and unbecoming attitude in fulfilling statutory obligations, Sebi has imposed a penalty of R10 lakh on the noticee viz., Pal & Paul Builders.