Page 21 - Icra

SBI and ICRA see economy growing in double-digits in June quarter

Low base, robust recovery in contact-intensive services sector to boost expansion

Banks' AT-1 bond issuances may decline to Rs 20,000 cr in FY23: Report

The issuance of Additional Tier-1 (AT-1) bonds by banks is likely to more than halve to Rs 20,000 crore this fiscal compared to the all-time high amount of Rs 42,800 crore raised in FY22, says a report. AT-1 bonds are those debt instruments without a terminal maturity date. In FY22, a majority of the funds raised through the instrument were to refinance bond issues done in FY17, Icra Ratings said in the report on Monday. Majority of the bonds have a call option in the fifth year, resulting in the significant jump in new issuances which are basically for refinancing the earlier obligations. The issuances in FY17 stood at Rs 32,100 crore for the state-owned banks and Rs 10,900 crore for private sector lenders. In FY18, the amounts stood at Rs 10,900 crore and Rs 23,500 crore, respectively, Icra said. According to the report, lenders have already refinanced the FY18 bonds because of the lower interest rates in FY22. Lenders have already raised Rs 5,320 crore from the instrument in t

AT1 bond issuances likely to fall to around Rs 200 bn in FY2023: Icra

The additional tier 1 (AT1) bond issuances are likely to fall sequentially to around Rs 200 billion in FY2023, from an all-time high of nearly Rs 428 billion in FY2022

'High ATF prices, rupee depreciation may pose threat to carriers' recovery'

Elevated Aviation Turbine Fuel (ATF) prices and Rupee depreciation are likely to pose a serious threat to the recovery process for domestic carriers, credit ratings agency ICRA said on Wednesday. In India, ATF accounts for around 45 per cent of the operational cost of an airline. Besides, as much as 35-50 per cent of the airlines' operating expenses are US dollar driven, as per ICRA. An area of concern remains the ATF prices, which surged by around 77 per cent Y-o-Y in August, given the elevated crude oil prices due to geo-political issues arising from the Russian invasion of Ukraine, the ratings agency said. On an aggregate basis, it said a return to normalcy will lead to recovery in passenger load factors, which, in turn, will aid revenues; however, these two factors will continue to weigh on the domestic airlines'' earnings in FY23. This apart, the expected launch of Jet Airways and the entry of Akasa Air, are likely to intensify the competition for the domestic carriers. "ICR

Interim wage hike likely to hit margins of West Bengal tea estates: Icra

The impact would be lower for producers of quality tea, given the price premium they enjoy over the average market realisations, Icra said in a report.

Credit rating of Rs 35,000 cr debt could be lowered due to RBI diktat: Icra

Power, healthcare, engineering, construction, and roads sectors account for 60% of the total entities whose ratings could potentially be affected

New credit rating rules could see 100 Indian ICRA-rated firms downgraded

The companies likely to be affected are mostly in the power, healthcare, engineering, construction and roads sectors

Housing finance companies likely to grow at 10-12% in FY23: Report

The upwards revision of the growth of HFCs was in expectation of a continued improvement in disbursements.

Cement firms to see lowest operating margins in seven years: ICRA

In FY23, the volume for the cement industry is expected to grow by 7-8 per cent to around 388 million metric tonne

Lifestyle & grocery retailers reverse FY21 trend, hire over 180,000 people

The total number of employees in eight of the top retailers in India went up 57 per cent to 4,90,000 in FY22, with Reliance Retail hiring the most number of people at 1,61,000

India's core sector maintains double-digit growth at 12.7% in June

8 infra sectors grew 12.7% YoY in June; there was a contraction MoM

Open access II: India's attempt to expand scope of green energy initiatives

The new guidelines expanding consumer choices to green energy will remain subject to the uncertainties and quirks of state policy

Experts expect some inflation, CAD relief after US Fed hikes rates

MPC will be guided more by domestic inflation-growth dynamics than US central bank measures, they say

Microfinance loan securitisation grows over two-fold YoY in Q1FY23

Better recoveries, adequate credit enhancements spark investor confidence

Banks urge RBI to extend HTM leeway beyond Mar 2023 as bond losses pile up

Bankers have sought permission to park a larger quantum of securities in the portfolio than is currently permitted amid an environment of rising bond yields.

LIC adds Rs 1,983 cr in kitty by offloading shares in Siemens, Icra

LIC said its holding in Siemens decreased by over 2 per cent from October 14, 2020, to July 18, 2022, at an average cost of Rs 2,701.19 per piece.

CRISIL, Icra, CARE: Major hurdles yet to be conquered by rating agencies

Despite the 15 per cent rally on Wednesday, CARE Ratings still trades 38 per cent lower from its 52-week high; Similarly, CRISIL and ICRA too are down 14 per cent from their respective 52-week highs.

Banks may incur Rs 13,000 cr MTM losses in Q1 on rising bond yields: Icra

State-owned lenders, which hold large quantities if G-Secs, to face brunt of yield spike

CPI inflation pegged at 6.8-7.25% in June; IIP growth at 14.5-24% in May

According to MPC's own projections, the inflation rate may not come down below 6% on average before the fourth quarter of the current financial year

IREDA may raise up to Rs 15,000 crore via long-term bonds in FY23

IREDA has a well-diversified borrowing profile, with access to funds through tax-free bonds, taxable bonds, bank/financial institution (FI) loans, masala bonds and foreign currency loans