OPINION, P10 WELL BEING FE LINES Is sustainable travel possible? Maybe Page 9 ACROSS THE AISLE , P CHIDAMBARAM From being a religious practice, fasting has now become a health phenomenon. We dish out some of its pros and cons Page 6 The speech that I might have made The green tour FAST FACTS ON FASTING SPOTLIGHT Follow us on Twitter & Facebook. App available on App Store & Play Store WWW.FINANCIALEXPRESS.COM VOL. XXI NO. 41 SOUND OF SUCCESS NEW DELHI SUNDAY, AUGUST 7, 2022, 30 PAGES, `10 (PATNA `10, RAIPUR `10) P U B L I S H E D F R O M : A H M E D A B A D , FINANCIAL EXPRESS ON SUNDAY 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 , READ TO LEAD H Y D E R A B A D , K O C H I , Q1 PERFORMANCE HPCL sees record loss of `10,197 cr Continued on Page 2 WHAT'S INSIDE STATE BANK OF India (SBI) on Saturday reported a 6.7% year-on-year (y-o-y) fall in its first quarter net profit to `6,068 crore as losses in the treasury portfolio hurt the bank’s non-interest income. SBI’s net interest income (NII), or the difference between interest earned and expended, rose 13% y-o-y to `31,196 crore. The domestic net interest margin (NIM) fell 17 basis points (bps) sequentially 12.9 NIM (%) 3.15 3.23 8 bps 80.4 6,068 6,504 (` cr) Q1FY22 Q1FY23 Change (in %) Net Other Net interest income profit income 11,803 FE BUREAU Mumbai, August 6 Report card 2,312 on Saturday reported its highest ever quarterly net loss of `10,196.94 crore in the June quarter as a freeze on petrol and diesel price revision wiped away record refining margins. A standalone net loss of `10,196.94 crore during April-Junecompareswithanet profit of `1,795 crore in the sameperiodayearago,according to a company’s filing with the stock exchanges. ● Chairman confident of recouping treasury losses over the year 31,196 HINDUSTAN PETROLEUM CORPORATION (HPCL) SBI profit declines 6.7% to `6,068 cr 27,638 PRESS TRUST OF INDIA New Delhi, August 6 6.7 Gross NPA (%) 5.32 3.91 141 bps NIM: Domestic net interest margin Source: BSE to 3.23%. The hit on account of mark-to-market (MTM) losses amounted to `6,549 crore. The MTM hit also had an adverse impact on the With fresh funding and govt push, audio as content is seeing a boom like never before Page 5 SBI’s return on assets (RoA) and return on equity (RoE), which were down 9 bps and 203 bps on a y-o-y basis, respectively. SBI chairman Dinesh Khara said the bank was confident of recouping losses in its investment book over the course of the year. The Reserve Bank of India’s backto-back rate hikes in May and June led to a firming up of yields in Q1FY23 and hit most banks’ bond portfolios. On Saturday, Khara said more than the rate hike, SBI’s treasury performance will be a function of how yields on government bonds move. “The provision we have done is at 7.45% (benchmark) g-sec yield and up to that we are not required to make any additional provisions,” Khara said. Continued on Page 2 K O L K A T A , SEVERAL BANKS HAVE raised ■ LEISURE, P7 ‘Couture being luxury is sustainable by nature’ Designer JJ Valaya on his 30 years in the industry, his action-packed future collaborations and sustainable fashion ■ WORDS WORTH, P4 Call to action their repo rate-linked lending rates(RLLR)aftertheRBIonFriday raised the repo rate by 50 basispoints(bps)to5.40%.Public sectorbanks Bank of Baroda, Punjab National Bank, Union BankofIndiaandprivatesector lender ICICI Bank on Saturday raised theirRLLRs. Post the increase in RLLR, The new rates ■ ICICI, 3 PSBs raise lending rates ■ ICICI Bank’s EBLR stands at 9.10% ■ BoB’s RLLR stands at 7.95%; PNB raises it to 7.90%; BoI’s stands at 8.25% BankofBaroda’sRLLRstandsat 7.95%,with 5.40% as RBI repo rate and a mark-up of 2.55%. The new RLLR will be effective from Saturday.Punjab National Bank has increased RLLR from 7.40% to 7.90%,while Bank of India’s RLLR stands at 8.25%, effective Friday. BankofMaharashtra’sRLLR willstandat7.70%fromAugust 10 and Union Bank of India’s external benchmarked lending rates (EBLR) stand at 7.70%, effectiveAugust 11. Continued on Page 2 M U M B A I , N E W MORE THAN TWO months into the southwest monsoon season (JuneSeptember), average pan-India rainfall is above normal (6% more than the benchmark), reports Sandip Das. Rainfall deficiency in eastern states —Uttar Pradesh (-43%), Bihar (-33%), West Bengal (-24%) and Jharkhand (-48%) — has hit paddy sowing and can impact rice production. However, central India, State-wise monsoon performance Jammu & 18 Kashmir and Ladakh Punjab 11 -6 Haryana 23 Himachal Pradesh -10 Uttarakhand Gujarat 10 -43 Rajasthan on underwriting, saw combined loss of `26,364 cr in 5 yrs through FY21 PM Narendra Modi felicitates vice-president-designate Jagdeep Dhankar in New Delhi on Saturday PTI PHOTO -33 PRESS TRUST OF INDIA New Delhi, August 6 STATE-RUNGENERAL insurance BHARAT PETROLEUM CORPORATION Ltd on Saturday reported a net loss of `6,291 crore in Q1 FY23 on holding fuel prices despite rise in cost. The net loss of `6,290.8 crore in April-June compared with `3,192.58 crore in the same period a year back, the company said, reports PTI. Revenue from operations rose to `1.38 trillion from `89,688.98 crore in April-June 2021. The company earned $27.51 on turning every barrel of crude oil into fuel in the quarter as against $4.12 per barrel gross refining margin a year back. Dhankharwas declared elected asthevice-presidentofIndiaon Saturday after he bagged 528 votesagainsthisrivalcandidate MargaretAlva’s182.Dhankhar, 71, will succeed M Venkaiah Naidu,whodemitsofficeAugust 10.The returning officer of the vice-presidentialelectionsaidof NDA CANDIDATE JAGDEEP the total 780 electors,725 cast their ballots but 15 votes were found to be invalid. Theturnoutwas92.94%,he said, adding that a candidate needed356votestogetelected. Of all the valid votes, Dhankhar secured 74.36%.He hasthehighestwinningmargin in the last six vice-presidential elections held since 1997. Continued on Page 2 companies didn’t comply with finance ministry guidelines on underwriting of group policies and witnessed huge losses on account of their health cover business, the Comptroller and Auditor General (CAG) has revealed in its latest report. The combined ratio (claims paid plus expenses divided by premium earned) of group healthinsurancesegmentsofall 10 Arunachal Pradesh -9 Jharkhand -48 -14 20 Manipur West Bengal Odisha Maharashtra -10 Nagaland -39 -24 5 -27 Tripura -7 Chhattisgarh -1 Mizoram Telangana Goa 85 -3 Karnataka Andhra Pradesh 35 28 Benchmark – long period average (average rainfall 1970-2021) Tamil Nadu Kerala -15 102 Deficient (-59% to –20%) Normal (-19% to 19%) Excess / large excess (20% more) GRAPHIC BY VVENKATESULU Source: IMD Not in good health Combined ratio of group health insurance segments of all four public sector general insurers ranged from 125% to 165% between FY17 and FY21 REUTERS August 6 ELON MUSK SAID that if pany,Oriental Insurance Company and National Insurance Company — incurred a combined loss of `26,364 crore in theirhealthinsuranceportfolio in the five years through FY21, the CAG said. Continued on Page 2 Continued on Page 2 ■ Instances of multiple settlements of claims and claim payment in excess of sum insured signify major lapses the four public-sector general insurers ranged from 125% to 165%betweenFY17andFY21, way above the ceiling of 100% stipulated by the finance ministry,the CAG pointed out. The four insurers — New India Assurance Company, United India Insurance Com- Musk: Deal on ifTwitter gives proof of real accounts Twitter could provide its method of sampling 100 accounts and how it confirmed that the accounts are real, his $44-billion deal to buy the company should proceed on its original terms. “However, if it turns out that their SEC filings are materially false,then it should not,” Musk tweeted early on Saturday. In response to a Twitter user asking whether the US SEC was probing “dubious claims”by the company,Musk tweeted “Good question, why aren’t they?”. Twitter declined to comment on the tweet when contacted by Reuters. This is way above the ceiling of 100% stipulated by finance ministry lapses FE BUREAU New Delhi, August 6 IN THE NEWS BPCL Q1 net loss `6,291 crore 6% more than benchmark Assam 9 Bihar Madhya Pradesh 34 Meghalaya Sikkim Uttar Pradesh 43 Country as a whole (% deviation from normal benchmark during June 1, 2022 – August 6, 2022) flouted finmin norms ● Breached rules P U N E the south peninsula and the northwest regions have received more rainfall than normal so far, giving a boost to sowing of pulses, oilseeds, coarse cereals, sugar and cotton. Predicting normal August-September period rainfall pan-India, the India Meteorological Department has, however, forecast below normal rains for east and northeast regions. Dhankhar elected CAG REPORT 14th VP of India PSU general insurers In excerpts from Journey of a Nation, author Sanjaya Baru reiterates why climate change will remain a major challenge for India’s growth D E L H I , Rainfall above normal; deficit in paddy-growing regions Banks raise lending rate FE BUREAU Mumbai, August 6 L U C K N O W , Toyota drives India sales on Maruti Suzuki rebadged wheels ● With over 50% sales coming from tie-up, Toyota Kirloskar Motor attracting a new set of customers VIKRAM CHAUDHARY New Delhi, August 6 THE TIE-UP between Suzuki andToyota has started paying dividends to the latter’s Indian division in terms of sales. In July,Toyota Kirloskar Motor (TKM) sold 19,693 cars in the domestic market — its highest-ever sales in a single month — registering 50% growth compared to the fig- ure in July 2021. Automotive analysts FE spoke with said without the help of Maruti Suzuki, TKM wouldn’t have reached the milestone. Considerthis: In July2022, TKM sold 9,939 units of the Glanza and Urban Cruiser (these are the rebadged versions of Maruti Suzuki Baleno and Vitara Brezza, respectively), and 9,754 units of the Innova Crysta, Hilux, Fortuner, Legender, Camry and Vellfire (Toyota’s ‘own’ cars) put together. On May28,2018,inTokyo, Toyota MotorCorporation and Suzuki Motor Corporation agreed to start discussing new joint projects in the fields of technological development, vehicleproductionandmarket development. The same day they announced mutual supply of vehicles for the Indian market to benefit both TKM and Maruti Suzuki. The first car under that joint venture was the Glanza (launched on June 6, 2019), and second was the Urban On fast track TKM sold 19,693 cars in India in July 2022 9,939 were the Glanza and the Urban Cruiser (rebadged versions of Maruti Suzuki Baleno and Vitara Brezza, respectively) ■ Of these ■ The Glanza (launched on June 6, 2019) has cumulatively sold 78,694 units ■ The Urban Cruiser (launched on September 23, 2020) has cumulatively sold 61,623 units Cruiser (launched on September 23, 2020). Till July 2022, TKM had sold 140,317 units of both (78,694 units of the Glanza and 61,623 units of the Urban Cruiser). Of these, more than 65% Glanza customers are firsttime Toyota buyers, and a whopping 95% of Urban CruiserSUVshavebeenbought by non-Toyota customers. “Both these cars have given TKManentirelynewsetofcustomers,who maynot have otherwiseenteredtheToyotafamily because TKM earlier didn’t have a car at a price point they could buy,” Tadashi Asazuma, executive vice-president,sales & customer service, TKM, had recently told FE. AToyota dealer from Delhi NCR added that even though the Indian customer knows that the Glanza and the Urban Cruiser are rebadged Maruti Suzuki cars, “she is able to enter the Toyota family at a lower price point”. An automotive analyst, who has consulted with both Maruti Suzuki and TKM, told FE that,on its own,TKM could have sold only half the number, which it did. “TKM sold 9,754 units of its‘own’cars in July 2022, which is 49.5% of its sales,” he said. “While its New Delhi models like the Innova Crysta and the Fortuner have solid demand in their niche segments (premium MPV and full-size SUV, respectively), the carmaker doesn’t have any‘volume’ models in India. Its only small hatchback, the Etios Liva, was discontinued when the BS6 emission norms were implemented April 1,2020,onwards,as did its sedans, the Corolla Altis and Etios.” He added that the partnership will only strengthen henceforth, helping boost sales of both the carmakers. Continued on Page 2
The Financial Express (FE) is a business paper that’s closest to the people who are in the business of business. From business policies to market trends to new developments, The Financial Express comes packed with incisive news on every relevant issue.