Stocks in Focus on January 5: Bandhan Bank, Bharti Airtel, Dr Reddys, IGL, SBI and many more
Domestic equity markets advanced for the third consecutive session on Tuesday, January 4, 2022.
Domestic equity markets advanced for the third consecutive session on Tuesday, January 4, 2022. The S&P BSE Sensex climbed 673 points, or 1.14 per cent to trade at 59,856. The NSE Nifty also surged 180 points, or 1.02 per cent, to trade at 17,805. But certain stocks came in the news after the market was closed. These stocks can impact the indices when it reopens on Wednesday, January 5, 2022. List of such five stocks:
Business Updates: Bandhan Bank + AU Small Finance Bank + Bajaj Finance
Bandhan Bank: Private sector lender on Tuesday said that it has achieved 11% YoY and 9% QoQ growth in the loan and advances for the quarter ended December 31, 2021. The loans and advances stood at Rs 89,213 crore. The lenders total deposits grew by 19% YoY and 3% QoQ to Rs 84,500 crore. Current account and saving account (CASA) deposits grew 26% YoY and 5% QoQ to Rs 38,528 crore as of December 31, 2021. The share of retail to total deposits stood at 84 per cent, up from 81 per cent during the same period last year. Collection efficiency for December month was 93%.
AU Small Finance Bank: The largest small finance bank in the country has released its Q3FY22 business updates and reported that its total deposit has increased by 49% YoY and 13.43% QoQ in the reported quarter at Rs 44,278 crore. Gross advances grew 33% to Rs 40,723 crore against Rs 30,523 crore. Current account and saving account (CASA) deposits stood at 39% YoY compared to 22% reported in Q3FY20. Sequentially, the CASA ratio stood at 30% in Q2FY22. The banks AUM grew 26.5% YoY and 10.6% QoQ at Rs 42,027 crore. Disbursements grew by 34.65% YoY and 57.9% QoQ to Rs 8,779 crore. The disbursements to AUM ratio stand at 45.75% against 26.8%QOQ. Its collection efficiency stood at 107% in Q3FY22. The company says that there were no COVID related restrictions during the quarter.
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Bajaj Finance: The financial services company on Tuesday in its business update for the quarter ended December 31, 2021, said that its Assets under management (AUM) stood at approximately Rs 1,81,300 crore in Q3FY22, up 26.3% YoY and 8.63% QoQ. New loans booked during Q3FY22 were 74 lakhs up 23.33% YoY and 17.46% QoQ. Customer franchise as of December 31, 2021, stood at 5.54 crore, up 19.65% YoY and 4.92% QoQ. The Company’s deposit book stood at approximately Rs 30,000 crore as of December 31, 2021, up 26.2% YoY and 4.5% QoQ. Calculated Average ticket size stood at Rs32725.6, up 5.55%YOY & 3.53% QOQ. The Company continues to remain well-capitalized with a capital adequacy ratio (CRAR) of approximately 27.0% YoY and 27.7% QoQ.
Bharti Airtel: The second-largest telecom service provider in India on Tuesday withdrew its plans to change its corporate structure to house all its digital assets under itself, stating that it was well-positioned to invest aggressively into growth opportunities in the Indian market. The scheme of arrangement for the new corporate structure was announced on April 14, 2021. Airtel's businesses continue to be categorised under four key verticals - India, Digital, International and Infrastructure. Airtel added that under the modified scheme, the Company, as previously approved by the Board, will merge its wholly-owned subsidiary Telesonic Networks Limited, resulting in consolidation of its fiber assets into Airtel. In addition, Nettle Infrastructure Investments Limited will also be merged with Airtel. The company will pursue its plan to eventually fold the DTH business (Bharti Telemedia) into Airtel to move towards the NDCP vision of converged services to customers. Previously approved new corporate structure scheme (as announced on April 14, 2021):
1) Amalgamation of Nettle Infrastructure Investments Limited (‘Nettle’), Airtel Digital Limited (‘Airtel Digital’) and Telesonic Networks Limited (‘Telesonic’) with and into Bharti Airtel Limited
2) Demerger of Telecom Business undertaking of Bharti Airtel Limited and vesting of the same with Airtel Limited, its new wholly-owned subsidiary
Besides, The Reserve Bank of India (RBI) on Tuesday said it has included Airtel Payment Bank in the 'Second Schedule to the Reserve Bank of India Act, 1934'. A bank mentioned in the Second Schedule of the Reserve Bank of India Act is known as ''Scheduled Commercial Bank''.
Dr. Reddy’s Laboratories: The pharmaceutical major Dr Reddy’s on Tuesday said it will launch Molflu (Molnupiravir) at Rs 35 per capsule to treat COVID-19 in the country. With 10 capsules per strip, the total course of 40 capsules over 5 days would cost Rs 1,400, making it among the most affordable treatment options available to patients, it added. Molflu is expected to be available from early next week in pharmacies throughout the country with a particular focus on states with a high caseload of COVID-19.
Indraprastha Gas Limited (IGL): The Indian natural gas distribution company IGL has signed an MoU with a government-owned mineral producer, NDMC to establish a waste-to-energy plant & an integrated fueling station in North Delhi to convert Solid Waste into CBG.
State Bank of India: The public lender has invested $2 crore in Merchant Commerce Platform Pine Labs. Besides, India's largest lender has increased the limit for money transactions via Immediate Payment Service (IMPS) from Rs 2 lakh to Rs 5 lakh. There will be no charge for transacting through digital channels. The bank says that its service charge will not be slapped on IMPS up to Rs 5 lakhs.
HUL + Colgate Palmolive: All India Consumer Products Distribution Federation (AICPDF), reportedly, has postponed their movement against Hindustan Unilever Ltd (HUL). There was a dispute on transparency on the margin and the federation has ended the movement after being assured by the company. However, the federation will continue to boycott products like Colgate Max Fresh and Vedshakti brands.
Go Fashion (India) Ltd: SBI Mutual Fund bought 4.61 lakh shares in different schemes. SBI Mutual Fund's total purchase of 29.33Lk shares till January 3, 2021. The total share increased from 4.57 per cent to 5.43%.
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