OPINION, P2 IDEA EXCHANGE ‘Public discussion could have saved poor from suffering in pandemic. India needed more democracy than was allowed...’ Page 9 The sovereign looks the otherway FE LINES The movement Plastic Free July seeks to inspire millions of people to be part of the solution Page 6 AMARTYA SEN ACROSS THE AISLE , P CHIDAMBARAM No more plastic SPOTLIGHT Follow us on Twitter & Facebook. App available on App Store & Play Store WWW.FINANCIALEXPRESS.COM VOL. XX NO. 37 SAYK FOR KULTURE FINANCIAL EXPRESS ON SUNDAY B E N G A L U R U , Q1 PERFORMANCE HDFC Bank profit up 16% to `7,730 cr 6.73 Gross 0.33 NPA (%) 17,009 8.58 0.48 Q1FY21 Q1FY22 Q1FY21 15 bps % change The Earth is not the limit Politics is defined by geography and now space promises to be the new political battlefield ● Misses street estimates due to low biz volumes amid pandemic FE BUREAU Mumbai, July 17 AMID DISRUPTIONS DUE to ODD & EVEN ROHNIT PHORE Covid-19, the largest private lenderHDFCBankonSaturday posted lower than estimated net profit of `7,730 crore during the June quarter as the asset quality of the bank worsened. Although the net profit of the bank registered a 16.1% year-on-year (y-o-y) growth, the bottomline missed the `7,931-crore consensus estimate by Bloomberg. The net interest income SESSION BY OCT 1 Admissions in varsities QuickPicks to be done US judge rules Obama-era plan by Sept 30, for child migrants illegal says UGC A FEDERALJUDGE in the US state ofTexas has ruled as illegal the Obama-era immigration programme that shielded over 600,000 undocumented immigrants, including thousands of Indians, from deportation, dealing a blow to the Biden administration's efforts to protect people termed as “Dreamers”. Deferred Action for Childhood Arrivals (DACA) was established under the Obama administration in 2012 and granted protection from deportation and work permits to illegal immigrants who came to the country as minors. All gaps in Indian borders to be plugged this year, says Shah UNION HOME MINISTER Amit Shah Saturday asserted that unfenced gaps along India's over 7,500-km-long land border will be sealed by the end of this year, thus covering areas that lead to infiltration and smuggling of arms and narcotics. He asserted that India's security policy was either "influenced or was overlapping" with the foreign policy and it was only after Narendra Modi became prime minister that the country got an independent security strategy. Shah was delivering the annual 'Rustamji memorial lecture' instituted by the Border Security Force (BSF) in memory of its first director general (DG) K F Rustamji. “I assure that there will be no gap in our fencing from 2022," he said. PRESS TRUST OF INDIA New Delhi, July 17 THE NEWACADEMIC sessionin universities and colleges across thecountywillbeginfromOctober 1,while the admission processhastobecompletedbySeptember 30, according to new guidelines of the University GrantsCommission(UGC).Varsitiesandhighereducationinstitutions (HEIs) have been asked to ensure that the admission process for undergraduate coursesbeginsonlyafterthedeclaration of results bythe CBSE, ICSE and all state boards. “It is expected that all school boards will declare their results for class 12 exams by July 31,”the the new UGC guidelines said. Continued on Page 11 K O C H I , 24.13 16.08 0.44 0.45 Q1FY21 Q1FY22 Change 1.0 bps L U C K N O W , M U M B A I , N E W D E L H I , P U N E Complied on tech, now wait for RBI to lift ban: HDFC Bank PRESS TRUST OF INDIA Mumbai, July 17 Continued on Page 11 Net profit K O L K A T A , CREDIT CARDS Continued on Page 11 Net NPA (%) Provisions Source: BSE ■ WORDS WORTH, P4 H Y D E R A B A D , (NII) of the lender, however, grew 9% y-o-y to `17,009 crore, but remained flat sequentially. The bank has acknowledged that business activities remained curtailed for almost two-thirds of the quarter due to Covid-19, which has led to a decrease in retail loan originations, sale of third-party products, card spends and efficiency in collection efforts. The lower business volumes, coupled with higher slippages, resulted in lower revenues, as well as an enhanced level of provisioning. Provisions during the quarter increased 24% y-o-y to `4,831 crore, compared with `3,892 crore in the yearago quarter. 54.31 Change Q1FY22 READ TO LEAD HDFC BANK HAS complied with 85% of RBI’s asks on technology, and the ball is now in the regulator’s court on when to lift the ban on issuing new credit cards, its managing director and chief executive Sashidhar Jagdishan said on Saturday. Addressing shareholders at his first annual general meeting as the executive head of the largest private sector lender, Jagdishan said a technology audit is also over and the RBI will now be independently taking a view on when to lift the penal actions taken against the bank. Frustrated at repeated tech outages at HDFC Bank, the RBI took an unprecedented action against the lender in December 2020, putting a freeze on it issuing any new credit card, a segment in which it was a market leader, and also barring it from introducing any new digital offerings. “We have given a milestone to the regulator in terms of what are the things we are doing on technology, complying with their advisories and directives. We have covered a very significant portion as we speak. Almost 85% of what we had to do has been covered,” Jagdsihan said. Other income 7,730 (` crore) Net interest income 15,665 34,453 A touch of Awadh Centred on Awadh’s heritage, a museum, archives and community kitchen, proposed to be built at the 5-acre ‘masjid complex’ in Ayodhya, will foster the multicultural fabric of India, says historian Pushpesh Pant 36,771 Total income « Report card ■ LEISURE, P7 C H E N N A I , 6,659 WHAT'S INSIDE C H A N D I G A R H , 4,831 F R O M : A H M E D A B A D , 3,892 P U B L I S H E D 6,289 SUNDAY, JULY 18, 2021, 14 Pages, `10 (Patna and Raipur `10) 4,075 NEW DELHI From K-beauty & K-pop to K-dramas & K-toons, the world is in love with Korean culture Page 5 The Indian hockey team bound for the Tokyo Olympics gets a send-off from Sports Authority of India in Bengaluru on Saturday PHOTO: PTI TOKYO OLYMPICS First Covid-positive case in Olympic Village, not athlete ASSOCIATED PRESS Tokyo, July 17 THE FIRST CASE of a resident testing positive for Covid has been reported in the Olympic Village,Tokyo Olympic organisers said on Saturday. Officials said it was not an athlete,with the Games opening in just under a week on July23. Tokyo officials including Seiko Hashimoto, the president of the organising committee, confirmed the case and said the positive test was Friday. Organisers say for confidentiality purposes they can only offer a vague description and few details. “In the current situation, REPORT CARD that positive cases arise is something we must assume is possible,” said Toshiro Muto, the CEO of the Tokyo organising committee. The person is identified simply as a ‘gamesconcerned personnel’.The person is also listed as a non-resident of Japan. Tokyo officials said the person was placed in a 14-day quarantine. The Olympic Village on Tokyo Bay will house about 11,000 athletes during the Olympics and thousands of other staff. IOC president Thomas Bach said this week there was zero risk of athletes in the village passing on the virus to Japanese or other resident of the village. Organisers say since July 1 and as of Saturday, 44 people under their jurisdiction have tested positive. None involved people living in thevillage and most are identified as contractors for Tokyo 2020 and games-concerned personnel. Thelistincludesoneathlete who tested positive on July 14 and three members of the media. Of the 44,only12 are listed as non-residents of Japan. GROWTH TRAJECTORY BSNL slashes FY21 losses by Digital payments 52% with reduced staff costs the new normal ● Wage bill was down 51% at `6,679 crore KIRAN RATHEE New Delhi, July 17 STATE-OWNED BSNL hasman- aged to reduce its losses by more than 50% at `7,441 crore in FY21 after its wage bill came down by around 51% at `6,679 crore.This was due to a voluntary retirement scheme undertaken by the company following a revival package offered by the government in October 2019. BSNL had posted a massive loss of `15,499 crore in FY20. Thenarrowingofthelosseswas despitethecompany’stotalrevenues declining by 2% at `18,595 crore in FY21. The decline in wage bill brought down the company’s total Financial numbers ` crore FY19-20 Ebitda Loss 2 34,406 26,036 Total expenditure 24 13,597 6,679 51 -6,879 1,177 7,441 ● UPI-based payment apps, e-wallets eyeing smaller towns % change 18,907 18,595 Total income Employee costs FY20-21 SHEENA SACHDEVA New Delhi, July 17 117 15,499 expenditure during the year by 24% at `26,036 crore. As a result BSNL became Ebitda-positiveaftermorethan three years. The company reported a positive ebitda of `1,177 crore in FY21 against negative ebitda or loss of `6,879 crore ayearback. During the year, income from services significantly increased in fibre-to-home (FTTH)andenterprisesegment, while revenues from wireline 52 telephonycontinuedtoremain under stress. Revenues from mobile services declined marginallydue to the impact of the pandemic, absence of 4G services and stiff competition from private players. The company’s FTTH revenues increased at `937 crore in FY21 compared to `517 crore a year back,while mobile revenues were down at `7,716 crore from `8,067 crore in the previous fiscal. UPI-BASED DIGITAL payment apps,which were on a growth trajectory even before the pandemic, are thriving in the new normal. A joint report by research firms Worldpay and FIS says 39.7% of India’s e-commerce payments were done through digital wallets in 2020 and wallets have now become the leading online payment method in the country. With consumers increasingly opting for digital transactions over cash ones, and with the simultaneous Gaining traction 39.7% of India’s e-commerce payments were done through digital wallets in 2020 UPI-based digital transactions have increased by 110% in volume and 109% in value, from June 2020 till June 2021 Spends through UPI have seen a rise of 29% in the average ticket size of transactions during the pandemic, year-on-year, from June 2020 till June 2021 growth in e-commerce and internet penetration in India, digital payments are expected to continue on an upward trajectory. The transition of small businesses to online media has also led to this growth. Continued on Page 11 India,Africa to drive refurbished smartphone market,says report Changing gears: India’s love for SUVs going strong RISHI RANJAN KALA New Delhi, July 17 INDIAAND AFRICA are among the key regions that will drive sales of second-hand smartphones going ahead. The refurbished handset market in these regions is expanding on the back of improvements in domestic tech and repair capabilities, market analyst firm Counterpoint Research said. “We expect more secondary market volumes to move to other areas such as Africa, Japan, India, and OVERTAKING CHINA ■ Refurbished handset market in India, Africa expanding due to improvements in domestic tech & repair capabilities ■ China gradually becoming more difficult place for secondary market ■ There is still high demand, but costs have increased for key components Europe.There are established secondarymarket companies, with new companies also moving into these regions. There is also an appetite for flagships from premium brands but at mid-tier pricing,” Glen Cardoza, senior research analyst at Counterpoint Research, said. Additional trade-in offers and a focused approach on circulareconomy initiatives are fuelling the demand in developed regions like Europe. Continued on Page 11 ● Head-to-head, UVs outsell sedans, hatchbacks in first quarter of FY22 VIKRAM CHAUDHARY New Delhi, July 17 INWHATCONFIRMS Indiancar buyers’ increasing preference for utility vehicles (UVs) over sedans and hatchbacks, in the first quarter (April-June) of FY22 the former have outsold the latter in the sub-segments both are present in (excluding Sales 2021 (units) Hatchbacks & sedans* January-March 3,79,742 2,83,816 April-June Utility vehicles 3,48,194 2,86,092 *Not including the mini segment where there are no UVs (April-June quarter sales are overall lower because very few cars were sold in April, due to Covid-19 second wave) Source: Siam the mini segment— cars under 3,600 mm in length — where there are only hatchbacks). According to sales data by the Society of Indian Automo- bile Manufacturers (Siam), in the April-June 2021 period, hatchbacks and sedans put together sold 2,83,816 units, while UVs sold marginally more at 2,86,092 units. This was a reverse of the trend in the January-March 2021period,whenhatchbacks and sedans sold 3,79,742 units, and UVs trailed at 3,48,194 units. Part of the reason, analysts told FE, is six new UVs being launched in recent months (Nissan Magnite in December, new Jeep Compass in January, Renault Kiger and Tata Safari in February, Citroen C5 Aircross in April, and Hyundai Alcazar in June) whose sales pickedupinApril-June,evenas there were no new sedans launched and just two hatch- New Delhi backs (new Hyundai i20 in November and Tata Altroz iTurbo in January). However,the bigger reason is consumers’ realisation that UVs are‘more carpercar’(incidentally,thiswas the tagline of Tata Indica,a hatchback). Som Kapoor,partner,automotive sector, EY India, said Indian car buyers have started realising that UVs have comparatively more space, and offer better comfort, driving experienceandmanoeuvrability, compared to sedans or hatchbacks. Continued on Page 11
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