- #Sensex, #Nifty trade lower
- #CEAT & #CanaraBank's announced Q3 results
Agam Vakil in conversation with managemnets on 'Earnings Edge'. #NDTVProfitLive
- #CEAT & #CanaraBank's announced Q3 results
Agam Vakil in conversation with managemnets on 'Earnings Edge'. #NDTVProfitLive
Category
📺
TVTranscript
00:00 58% would be the OEM business.
00:03 Increasingly, we would like to push our international business
00:07 higher than the current 18%, 19% to over 25%
00:13 over the next two to three years, as I have been maintaining.
00:15 So a big push on international saliency is going to happen.
00:19 And it is also margin accretive overall, the international business.
00:23 And to that extent, there'll be a squeeze on the saliency of OEM and replacement.
00:29 Okay, Mr. Banerjee, we'll leave it at that.
00:31 Thank you so much for joining us and taking us through the quarter's earnings,
00:33 as well as the outlook.
00:34 We wish you the best for the future.
00:35 Thank you.
00:36 Thank you very much.
00:37 (MUSIC)
00:43 (MUSIC)
00:48 (MUSIC)
00:53 (MUSIC)
00:58 (MUSIC)
01:03 (MUSIC)
01:08 (MUSIC)
01:13 (MUSIC)
01:18 (MUSIC)
01:23 (MUSIC)
01:28 (MUSIC)
01:33 (MUSIC)
01:38 (MUSIC)
01:43 (MUSIC)
01:48 (MUSIC)
01:53 (MUSIC)
01:58 (MUSIC)
02:03 (MUSIC)
02:08 (MUSIC)
02:13 (MUSIC)
02:18 (MUSIC)
02:23 (MUSIC)
02:28 (MUSIC)
02:33 (MUSIC)
02:38 (MUSIC)
02:43 (MUSIC)
02:48 (MUSIC)
02:53 (MUSIC)
02:58 (MUSIC)
03:03 (MUSIC)
03:08 (MUSIC)
03:13 (MUSIC)
03:18 (MUSIC)
03:23 (MUSIC)
03:28 (MUSIC)
03:33 (MUSIC)
03:38 (MUSIC)
03:43 (MUSIC)
03:48 (MUSIC)
03:53 (MUSIC)
03:58 (MUSIC)
04:03 (MUSIC)
04:08 (MUSIC)
04:13 (MUSIC)
04:18 (MUSIC)
04:23 (MUSIC)
04:28 (MUSIC)
04:33 (MUSIC)
04:38 Welcome back. You're watching Earnings Edge. Here is Canada Bank's MD and CEO
04:43 talking about Q3 earnings where the bank witnessed healthy asset quality growth
04:48 and double digit rise in the profit. Listen in.
04:53 If you observe our figures, our retail term deposits are going consistently and in the current
04:58 financial year so far we have absolute numbers, 31,000 crores it has been grown.
05:03 And every day we see that there is a three digit figure accumulating to this.
05:08 So we want to see that our core deposits like retail term deposits
05:13 and the CASA should grow consistently. Whatever the shortfall we find in the
05:18 for meeting the requirements of the liquidity LCR as well as the credit demand,
05:23 only to that extent we want to go for the bulk deposits. We don't want to be part of that
05:28 what the competition is going on in the market for the bulk deposits. We are not part of
05:33 that competition because we are very cost sensitive.
05:38 So what about raising rates on these TDs?
05:43 No, already our existing triple four scheme is there. That is offering at 7.25% for common public
05:48 and senior citizens already getting at 0.5% extra and super seniors, they are getting it
05:53 over and above again 15 basis points. So that is more than enough and there is an
05:58 accumulation in the retail term deposits in this scheme. I don't see any
06:03 requirement at this moment to increase further.
06:06 Okay, sir. Thank you so much for the clarity. Sir, one very important number that stood out for me
06:11 in these earnings was your other income is up 7.7% on a yearly basis,
06:17 but down on a quarter on quarter basis. Can you please help us understand what exactly is happening here?
06:23 See other income always we should compare from year on year. You should not see that
06:28 sequentially because in the financial year in several quarters, you will get one time
06:34 fee structure like a CGDMSC or like any card income is there and all.
06:40 That's why you have to if the real picture if you want to see that you have to compare year on year.
06:45 You should not look at that the quarter on quarter. If you look at our last December quarter,
06:50 our fee based income is 1,606 crores. Whereas compared to this year,
06:56 it is 1,772 and with a 10.34% growth rate is there.
07:01 The 10% is growing at a fee based income is a good growth.
07:05 Okay, sir. Got it. So have you made any provisions on AIF investments
07:10 and why I'm asking this question is largely stemming from because a lot of banks across the system
07:15 are making some sort of the other announcements regarding this.
07:19 So anything from Canara Bank side on this? It's very, very, very minuscule amount.
07:24 It's only 7.82 crores and we have provided 100%.
07:29 That's the management of Canara Bank. We slip into a short break on that note.
07:33 But on the other side, we get you a conversation with Punjab National Bank Housing. Stay tuned.
07:39 [MUSIC]
07:46 [MUSIC]
07:51 [MUSIC]
07:57 [MUSIC]
08:03 [MUSIC]
08:10 [MUSIC]
08:17 [MUSIC]
08:25 [MUSIC]
08:31 [MUSIC]
08:38 [MUSIC]
08:45 [MUSIC]
08:53 [MUSIC]
08:59 [MUSIC]
09:06 [MUSIC]
09:13 [MUSIC]
09:21 [MUSIC]
09:27 [MUSIC]
09:34 [MUSIC]
09:41 [MUSIC]
09:49 [MUSIC]
09:55 [MUSIC]
10:01 Welcome back. We are now in conversation with the CEO and MD of P&B Housing Finance, Mr. Girish Kuzgi.
10:09 Mr. Kuzgi, good afternoon. Thanks for joining in.
10:11 Let's start by taking your assessment of the quarter gone by, the hits and misses here,
10:16 and what can we expect going forward?
10:18 Good afternoon. I think if you look at P&B Housing, we are through a transformational journey since last one year.
10:26 And if you have to look at the asset growth, let's say one year back on retail, especially it used to be about negative or zero.
10:34 And from there, we've reached to a stage where on a way over here now at 13.2% asset growth on retail.
10:42 We had taken a conscious call to run down corporate book, which used to be about 18,000 crores.
10:47 Now we have ran down that book. Now the book as of December is 2,200 crores.
10:52 So on a way over here, disbursement is about 22% growth.
10:56 So if you see, we should not see one quarter. We should see, we should obviously, we should see quarter three.
11:02 We should also see, you know, what has happened in the last few quarters, directionally, and where we are headed.
11:07 So talking about the quarter, obviously, x one of the revenue is flat.
11:16 The reason for that is that we are running down the corporate book.
11:19 So that would have an impact in terms of revenue.
11:23 And also there was a one off for us, which impacted negatively.
11:26 Otherwise, if you see in terms of disbursement in last four years, in last 16 quarters,
11:33 last three out of four quarters has been the highest disbursement.
11:38 Number one. Number two, in terms of retail asset growth,
11:42 last three quarters out of four quarters has been the highest in last four quarters.
11:47 So I'm saying if you look at last four years, last three quarters, we've done well, both on disbursements and book.
11:54 So directionally, we are there. Only thing is, you know, since it's a transformational journey, we had a lot of things to do.
11:59 Obviously, we are trying to get things in order.
12:01 So obviously, there was a bit of hit on NIM.
12:08 So but going forward, we had guided about three and a half percent.
12:11 So we'll be able to maintain that. In terms of growth, we had guided 17 percent.
12:15 It looks like this year we might end up around 15 percent.
12:18 But the guidance for coming year on retail growth is going to be about 17 percent.
12:25 Understand better, what will the retail loan mix look like?
12:30 How much of it will be from non-housing and how much will it be from individual housing?
12:36 So currently our focus is only on retail. Retail is about 96.5 percent of the entire portfolio.
12:44 And that was by design since we had taken a call to run down corporate book.
12:49 Within retail, currently we are operating in two segments.
12:52 One is prime and the second is affordable. Affordable, we just started about a year back.
12:57 And now the book is about 1100 crores and the rest is prime.
13:01 Coming April, we are going to start one more vertical called as the emerging markets.
13:07 So within retail, we'll be operating in three out of four, that is prime, emerging market and affordable, which is Roshni.
13:15 The only segment where we won't be there is super prime.
13:19 So we'll be in all the three out of four segments.
13:22 The mix is going to be, I think, incrementally for the coming year, Roshni is going to contribute about 18 to 19 percent.
13:30 And emerging market that we are going to start that will also have a decent share.
13:36 So in terms of product mix, we are looking at about 25 to 28 percent of non-home and the rest from home.
13:45 In terms of profile, we would be anywhere between 60 to 65 on salad and the rest simple protein.
13:53 Right. So can you give us also an indication when it comes to credit costs going forward?
13:57 So I believe at the end of the second quarter, you had given us, you know, an idea of around point four percent next next year onwards.
14:07 Is that how things could take place? And what are the factors that could in fact help you reduce your credit costs?
14:14 We had guided 60 bids for the current year. But if you look at first nine months, we are at 32 bids.
14:21 So I think quarter four also will be on similar lines and even coming year it will be on similar lines.
14:26 So for coming year, we had guided 40 bids.
14:29 I think it looks like it will be on what we have seen in the first nine months for next few quarters and for the coming year as well.
14:35 So that is the guidance on credit cost.
14:38 And we also have a lot of opportunity for write backs, both from corporate and retail.
14:45 So I think this is one opportunity which will unleash in next few quarters.
14:49 OK, so an idea on the affordable segment as well. How are things panning out there?
14:54 How are things shaping up? And if you could give us an idea about what the, if not the next quarter, but what FI25 could look like in this particular segment?
15:05 So we had initially had a plan of opening 100 branches in affordable.
15:11 We opened 100 branches. We saw very good traction, a lot of opportunity in this space.
15:16 And therefore, we upped our target and we additionally are opening 60 branches.
15:22 So by March, in another two and a half months time from now, so we will be 160 branches on the affordable side.
15:29 And overall, we will be at about 300.
15:33 And from April, the new vertical is going to start, that is the emerging market.
15:38 On affordable, as I mentioned, the mix is getting changed.
15:42 Incrementally, if you have to look at this year, it will be about maybe 10 to 11 percent.
15:47 And for coming year, affordable could contribute about 18, 19 percent on the incremental basis.
15:55 Sure, sir. So also in terms of expansion in geographies, of course, most of your business does come from geographies
16:02 like Maharashtra, a lot from Delhi, Tamil Nadu and Telangana.
16:07 Can you give us an idea about where the company is looking to expand in what areas and where and what pockets are they seeing a lot more opportunity?
16:18 So I think directionally on prime, Roshni and emerging market, we'll be focusing on all the zones,
16:25 but they'll be a little bit more focused on south because A, opportunity B, we also have an opportunity of getting higher yield.
16:33 So the skewness would be slightly towards south and north would be almost about one third and west should be about 28, 29.
16:42 So this would be the mix. All right, sir. So finally, going into this particular quarter, that's the fourth quarter.
16:50 So any challenges that there could that you that that they may be in store going ahead?
16:58 I think if I were to talk about challenges in quarter four, there seems to be no challenge per se,
17:04 but obviously, since the corporate book is running down, so I think that we need to try to make up through higher disbursements in quarter four,
17:12 which we are geared up to. Otherwise, there is no incremental challenge that we are facing.
17:17 So I think that's where we are. All right, Mr. Kusgi, we leave it at that.
17:23 Thank you so much for joining us and taking us through all that we can expect with respect to PNB Housing Finance.
17:30 Of course, we'll keep an eye on a whole host of factors that the management has already shared with us.
17:35 And of course, PNB Housing Finance is one of the main players as far as the particular sector is concerned.
17:43 So we'll be keeping an eye on that one for sure. But on that note, we shift now focus to the general insurance space,
17:49 where the General Insurance Council will make cashless hospitalization available for all policyholders.
17:55 My colleague, Monal, caught up with Tapan Singhal, CEO of Bajaj Allianz General Insurance,
18:00 and began by asking him more about this initiative. Here's what he had to say.
18:06 The endeavor that we had was, if we look at it from a customer perspective, if he insures with X company, Y company,
18:11 they would have a certain panel of hospitals, maybe a thousand, some hundred.
18:16 But collectively, the industry would have close to 40,000 hospitals in the panel.
18:19 So why should a customer be limited to a certain number of hospitals?
18:23 We said, why not as an industry come together and endeavor to reach 100% cashless, which currently is at 63%, no?
18:30 Why can't from a customer perspective, he or she has a choice of full range of hospital, irrespective from where they've insured?
18:36 I think I'm very proud of the industry that all leaders came together and they said, let's do this, no?
18:41 From a customer perspective, with the guidance of regulator and to see how do we pull it forward.
18:45 And this is what we have come together to say that as a customer, it doesn't matter whether your company has an empanel hospital or not.
18:53 If the hospital is empaneled anywhere, you just walk in to give your company notice that I'm going to have a surgery here,
18:58 and the company will be endeavor to get you cashless, no? Irrespective of where you're going.
19:04 So also, could you help us understand what are the sort of timelines that the customer would have to inform prior if at all?
19:12 And what would be the case in case of elective surgeries, emergencies?
19:16 How would these be addressed? I think these are questions that our viewers would like.
19:20 So if it's an elective surgery, which typically is about 83-85% of surgeries happening,
19:24 then you just have to, which means that you are aware of the surgery happening.
19:28 So just give your company 48 hours, and within that, they will get you cashless.
19:33 If it's an emergency, obviously, you can't give them 48 hours and you'll just go into the hospital.
19:36 But within admission, and within 48 hours of your admission, the company will endeavor to give you cashless.
19:41 I think that is what the timelines have been set up to begin with.
19:44 But as we progress, it will get shorter and shorter.
19:47 And that is all that we have for you on this show.
19:50 But on the other side, we get you a lot more in terms of stocks and market coverage.
19:54 Stay tuned to NDTV Profit.
19:56 [Music]
20:03 [Music]
20:08 [Music]
20:12 [Music]
20:24 [Music]
20:28 [Music]
20:38 [Music]
20:48 [Music]
20:52 [Music]
21:16 [Music]
21:20 [Music]
21:44 [Music]
21:48 [Music]
22:02 [Music]
22:06 [Music]
22:20 [Music]
22:24 [Music]
22:38 [Music]
22:42 [Music]
23:06 [Music]
23:10 [Music]
23:24 [Music]
23:28 [Music]
23:42 [Music]
23:46 [Music]
24:00 [Music]
24:04 [Music]
24:28 [Music]
24:32 [Music]
24:44 [Music]
24:48 [Music]
25:12 [Music]
25:16 [Music]
25:30 [Music]
25:34 [Music]
25:48 [Music]
25:52 [Music]
26:17 Hello and welcome to the Portfolio Manager.
26:20 On this show, we try and get in experts who are managing public money
26:25 to try and understand how they are thinking about the portfolio construct under the current circumstances.
26:30 Our guest today is Sanjay Parikh, founder and CIO of Soham Asset Managers.
26:35 It is a fund which aims to create a portfolio of sustainable and reasonably valued businesses
26:43 following the GARP approach which is growth at reasonable price with an aim to provide superior risk adjusted returns over the long term.
26:51 Sanjay by himself has tremendous experience.
26:54 From 2012 to 21, he was a Senior Fund Manager at Nippon Life AMC, prior to that with ICICI Prudential AMC and Ask Investment Managers.
27:02 Sanjay, great having you. Thanks for taking the time out. Hope all is well.
27:05 Thank you, Niles. Thank you. My pleasure.
27:08 Tell us Sanjay, how do you think about the market environment currently and therefore as a result of that,
27:14 what is the kind of portfolio construct that you do? Is it more safe? Is it more biased towards large caps?
27:21 And is it different from what you would otherwise do?
27:23 Yeah, Niles. So, good afternoon. Essentially, you know, ours is a large cap fund
27:29 where we have said that at least 70% always would be large cap.
27:34 Our average holding of large cap in the last 19 months has been 78%.
27:40 Right now, we have moved up further, which is right around 82% in large cap.
27:46 And then mid and small cap is another 16%. And the rest is, of course, cash.
27:53 So, our thesis has been that there is enough scope of alpha creation possibility even in large cap.
28:01 And if you see the one year, three year, five year returns of Nifty,
28:06 in fact, for one year, it's very starking where the Nifty returns on one year has been 17, 18%.
28:12 But the average of the top 10, and I'm talking of average of the top 10 has done 65% plus.
28:18 And the worst of the top 10, the average of the worst of the top 10 has just done 1 or 2%.
28:24 So, this is the divergence in return.