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APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL XLVIII NO. 56, 26 PAGES, `10.00 (PATNA & RAIPUR `10.00) P U B L I S H E D F R O M : A H M E D A B A D , B E N G A L U R U , C H A N D I G A R H , C H E N N A I , H Y D E R A B A D , K O C H I , K O L K ATA , 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 SENSEX: 55,702.23 ▲ 33.20 NIFTY: 16,682.65 ▲ 5.05 NIKKEI 225*: 26,818.53 ▼ 29.37 HANG SENG: 20,793.40 ▼ 76.12 `/$: 76.26 ▲ 0.16 `/€: 80.81 ▼ 0.38 BRENT: $111.78 ▲ $1.64 GOLD: `51,445 ▲ `545 Sebi can share some documents with RIL, says SC THE SUPREME Court on Thursday advised Sebi to give Reliance Industries (RIL) access to certain documents the company sought in connection with a share acquisition case, but refrained from issuing a directive to that effect, reports Indu Bhan in New Delhi. Sudarshan Venu takes over as TVS Motor MD SUDARSHAN VENU, son ofVenu Srinivasan, has taken over as the MD ofTVS Motor Company, reports fe Bureau in Chennai. Before being elevated to this position, he was the joint MD of the company. Special Features ‘Offline retail continues to be our priority’ Parle Agro is targeting a 30-35% growth in sales this year, says Nadia Chauhan ■ BrandWagon, P7 Fixed income: Smartly navigate interest rate hikes Go for low duration debt funds, smaller tranches in longer duration & pick actively managed funds ■ Personal Finance, P7 ADAYAFTER the Reserve Bank of India (RBI) raised the repo rate, Bank of Baroda (BoB) and ICICI Bank hiked their external benchmark-linkedlendingrates (EBLRs) by40 basis points each. BoB’s newrepo linked lending rate is 6.9%, while ICICI Bank’s EBLR stands at 8.1%. Other major banks’ websites are yet to reflect their updated EBLRs. Kotak Mahindra Bank raised rates by up to 35 bps on retail deposits in some tenor buckets. Thereporatehikehascome as a relief for banks who were unable to raise rates for a portion of their books as they are linkedtothereporate.Spreads, too, can change only with a change in therisk profileof the borrower. According to data from the Reserve Bank of India (RBI),the proportion of floating rate loans linked to external benchmarks stood at 39.2% in December2021.Sixtyninepercentofloanstomicro,smalland medium enterprises (MSMEs) and58%ofhousingloanswere linked to external benchmarks as of December2021. Banking sector analysts said the policy rate hike is a positive for banks, though it is not immediately clear how 1,316 1,31,448 1,288 2,25,294 10.2% 32.9% #of stressed assets; *of admitted claims of FCs; FC: Financial creditors Key cases with low recovery Admitted claims of FCs (` crore) 3,697 3,188 Ideal Energy 1,198 Coastal Oil & Gas Infra 1,042 Bartronics India SVEC Construction 617 from 35.9% up to September 2021, according to the data compiled by the Insolvency and Bankruptcy Board of India (IBBI). In absolute term, the cumulative recoveryforfinancial creditors till the March quarterstood at `2.25 trillion. Analystsblame thereduced Share of floating rate loans Base rate MCLR External benchmark (Per cent to total) 11.9 79.5 4.8 7.8 68.7 20.3 6.8 75.5 17.5 3.9 43 10.2 53 77.7 9.3 6.4 28.6 62.8 Note: Figures in table do not add up to 100 because residual loans are linked to BPLR Source: RBI much it will help their margins, after accounting for the 50-bps hike in the cash reserve ratio (CRR). Continued on Page 10 ■ Bank of England raises rate to 1% with warning of 10% inflation, Page 8 ATPROPERTYPORTALNobroker.com’s HSR Layout office in Bengaluru,new joinees are told thattheyneednotwaittillweekends to search apartments on rent online for their stay; they canbrowseandselectproperties theylike even onweekdays. “Inourownoffice,peopleare findingitdifficulttogetproperties on rent. So, we are telling them not to wait for the weekend to find properties,” Amit KumarAgarwal,co-founderand CEO at Nobroker.com,said. HesaysAdarshFarmRetreat, a plush residential complex in Bengaluru’sBellandurarea,had Average property prices Source: IBBI data 4 NCR LIFE INSURANCE CORPORATION'S (LIC) initial public offering (IPO) was fully subscribed on the second day of the issuancewith bids for166 million equity shares coming in against 162 milliononoffer.Demandfrompolicyholdersandemployeesofthestate-run insurer was strong.The policyholder quotawassubscribed3.11times,while theemployeequotawassubscribed2.2 times.The portion set aside for retail investorswas subscribed 93%. “The LIC IPO has been fully subscribed on the second dayof its opening.There are still four more days to go. So, we look forward for a healthy over-subscription,”Alok Pande, joint secretary, department of investment and public asset management (DIPAM),told FE. Interest from qualified institutional buyers and non-institutional investorsremainedsomewhatmuted on Thursday, as the portion set aside for these investors was subscribed 40% and 47%, respectively. Experts, Apr 2021 Apr 2022 % Change 4 4 3 5 2 3 4 Bengaluru Hyderabad Kolkata Top 7 MMR Pune Chennai cities Source: Anarock Property Consultants many properties available on renttwoyearsago.Now,itisdifficulttogetanythingdespitethe factthatthecomplexhas1,000 properties.AtWadhwaAddress, a posh apartment complex in Mumbai’sGhatkopararea,Vinit Mathlani, a real estate consultantwhostaysinthesamecomplex,says that there are over 50 6.4 11.3 3.1 2.4 0.9 market appetite for toxic assets in the wake of the pandemic — on top of inordinate delay in resolution, caused byprotracted legal tussles and bottlenecks in the adjudicating system — for the poor recovery. Continued on Page 2 RBI made off-cycle hike to avoid bigger ones in Jun,Aug SHRITAMA BOSE Mumbai, May 5 THE MONETARY POLICY committee (MPC) opted for an out-of-cycle repo rate hike so as not to miss its inflation targetintwoconsecutivequarters and be compelled to go forbiggerraisesatitsJuneandAugust meetings, according to people in the know. Sources said the MPC’s hand was forced by three developments that transpired after the April policy meeting. The first was the March consumer price index (CPI) reading of 6.95%, which came in higher than expectations of most forecasters. The second was a firm and rising trend in consumer prices sourced from the Department of Consumer Affairs, mandis and e-commerce platforms, which suggested a further inch-up in food prices in April. The third development was the decision by Indonesia to ban palm oil exports,which would further hit edible oil prices in India. Continued on Page 10 LIC IPO fully subscribed on Day 2 RUCHIT PUROHIT & PRASANTA SAHU Mumbai/New Delhi, May 5 (`/sq.ft) 4,650 4,830 10,750 11,200 5,060 5,260 5,580 5,775 4,240 4,450 4,990 5,110 4,400 4,540 5,660 5,881 RAGHAVENDRA KAMATH Mumbai, May 5 Recovery for FCs (%) Kudos Chemie Day after: Large banks raise rates FE BUREAU Mumbai, May 5 6,84,901 Residential rents go through the roof however,said that demand from high net-worthindividualsistypicallyseen on the last dayof the issue. Withaviewtofacilitatetheprocess, thegovernmenthasrequestedallbank branches designated to process ASBA (Application Supported by Blocked Amount) applications to remain open forthe public on Sunday,May8. With the issue being subscribed fully,the government has managed to successfully raise `21,000 crore by selling a3.5%stake,offeringsharesat `902-949. Ahead of the IPO, the insurer raised `5,627 crore from 123 anchor investors at the upper price band of `949. The insurance behemoth is expected to list on the exchanges on May 17 at a valuation of `6 trillion. The issue will close for subscription on Monday,May 9. New Delhi Growth in average rents % increase in rent (In the last 1 year) 10 9 Chennai Liquidation value# Realisation for FCs Recovery for FCs* 12,610 HIGH DEMAND, LOW INVENTORY Bengaluru Admitted claims of FCs BANIKINKAR PATTANAYAK New Delhi, May 5 RECOVERY FOR FINANCIAL creditors from the resolution of stressed firms under the Insolvency and Bankruptcy Code (IBC) crashed to a record quarterlylowof 10.2% of their admitted claims in the three months through March,in yet another reminder for an urgent need for interventions to prevent the erosion of toxic asset value. In fact,at `1,288 crore,the realisation for financial creditors in the March quarter dropped below the assets’ liquidation value (`1,316 crore) for the first time. This is for a second straight quarter when recovery by financial creditors remained well below par — it was just 13.4% in the December quarter. Consequently, cumulative recovery for lenders where resolution took place dropped to just 32.9% till March 2022 Jan-Mar Cumulative 2022 (Up to Mar 2022) (` crore) Mar 2021 Mar 2020 FUTURE ENTERPRISES, a Future Group company, has sold its 25% stake in Future Generali India Insurance Company to joint venture partner Generali Participations Netherlands NV for `1,266.07 crore, reports fe Bureau in Mumbai. Recovery by financial creditors drops below liquidation value for first time in Q4 Cases where resolution took place Public sector banks Mar 2021 Mar 2020 Future sells 25% stake in insurance JV for `1,266 cr IBC recovery falls to new low of 10% Private sector banks Mar 2021 Mar 2020 ALMOSTTHREE times as many people have died as a result of Covid-19 as official data show, a new WHO report stated, reports Reuters. It further said almost half of the deaths that until now had not been counted were in India. UNIVERSE OF BIDDERS SHRINKS SCBs IN THE NEWS Half of ‘uncounted Covid deaths’ in India, says WHO *As on May 2 6 7 6.5 7 Delhi-NCR NEW DELHI, FRIDAY, MAY 6, 2022 Pune RBI signals strong action against inflation with latest hike EDITORIAL Hyderabad SAUGATA BHATTACHARYA INTERNATIONAL, P8 Mumbai OPINION, P6 Source: Nobroker.com people wanting to take apartments on rent but hardly any flat is available. Continued on Page 2