Large govt capex a possible saving grace for economy in FY22: Yes Bank chairman Sunil Mehta

bank of india, Yes Bank, reserve bank of india, Sunil Mehta, international monetary fund, indian economy, MSME

The Indian economy is expected to face some pressure in the current financial year due to the second wave of the pandemic, coupled with weaker consumer sentiment, but a large capex by the government can be a saving grace for the economy,

Yes Bank

Chairman Sunil Mehta said. Large government spending may have a multiplier effect on the economy, encourage private investment and create jobs in the market, he said.

The Indian economy showed contraction by 7.3 per cent in 2020-21 due to the coronavirus pandemic and the subsequent lockdowns.

The second wave of the pandemic in the current fiscal has exerted some pressure on the economic recovery.

The Reserve Bank of India (RBI) has projected the economy to grow at 9.5 per cent in the current financial year, lower than its earlier projection of 10.5 per cent.

The International Monetary Fund (IMF) has also slashed the GDP growth projection for India to 9.5 per cent from 12.5 per cent earlier.

With continued policy support from monetary authorities and the government, the economy is expected to return to a more normal and robust growth path, Mehta said.

“A possible saving grace for the economy in FY22 will be a large budgeted capital expenditure (capex) by the central government, which is expected to unleash a multiplier effect on the economy.

“This will ultimately crowd in private investments and help revive the job market,” Mehta said in his message to shareholders of Yes Bank in the annual report for FY21.

It would be equally prudent to prepare for possible weaker consumer sentiment in FY22. The economy will face some pressure to support adversely impacted unorganised, rural, MSME, and contact-intensive service sectors, among others, he said.

“Discretionary consumption could be affected as consumers, wary of possible third wave, would prefer to build up on precautionary savings,” Mehta said.

Due to the impact of the pandemic on jobs, rising input costs and supply-side constraints, the RBI is expected to keep a watchful eye and monitor inflation trends, Mehta said.

“For now, the RBI is expected to lean towards boosting growth and, hence, persist with easy monetary policy,” he added.

Even as the challenges remain, the circumstances are likely to have created fresh opportunities for the banking sector and it has enhanced digital footprint across all walks of human life, he said.

“Given this backdrop, Yes Bank continues to strengthen its strategic foresight and be future ready.

“We continue to closely monitor the current macroeconomic scenario and I believe that coordinated efforts, together with shareholders’ support, will enable us to deliver our commitment to customers and communities,” Mehta said.

Its Managing Director and CEO Prashant Kumar said Yes Bank is continuing with its transformational journey post-March 2020.

The bank has been able to demonstrate significant progress across all parameters, such as deposit growth, strong growth in retail and MSME advances.

It also successfully raised Rs 15,000 crore capital through a follow-on public offer (FPO) in July 2020 to recapitalise the bank, he said.

On the employee support, Kumar said Yes Bank is working to institute a phase-wise transition to the ‘Work from Anywhere’ (WFA) model to limit staff exposure on the office premises and branches.

“The WFA model, backed by infrastructure support for secure and seamless workflows, will not only provide more flexibility for our employees in planning their work routine, but also create employment opportunities for people who couldn’t join a workplace due to restrictions on commuting and travelling,” Kumar said.

Mehta said the bank has successfully forged the transformation from a precarious situation in March 2020, that too amid the unusual circumstances and unknown risks induced by COVID-19.

“It has successfully delivered a very robust liabilities momentum with a 55 per cent growth in deposits over the previous year. This reflects encouraging customer confidence across all segments,” Mehta said.

On the asset quality front, the bank’s legacy stressed book has shrunk, and the bank is well provided for with a provision coverage ratio of 79 per cent, he said.

“The management, prudently accelerated the provisioning on incremental slippages in FY21, to prevent carrying forward provisioning requirements into FY22. On the back of this, the bank posted an overall loss for FY21,” Mehta said.

Yes Bank reported a net loss of Rs 3,462 crore in 2020-21.

In 2019-20, it had posted the highest-ever loss at Rs 16,418 crore, mainly because of the bank’s reconstruction scheme with the change in guard and the related clean-up exercise. KPM HRS hrs

Internet Explorer Channel Network
News Related

OTHER NEWS

Delhi Police to SC: Need four more months for probe into case against Shivinder Singh

Delhi Police on Thursday told the Supreme Court it needed four more months to complete the probe in a case in which former Fortis Healthcare promoter Shivinder Mohan Singh is ... Read more »

India now as a 'protective' shield' of 100 crore vaccine doses: PM Modi

India now has a strong “protective shield” of 100 crore vaccine doses to combat Covid-19, Prime Minister Narendra Modi said on Thursday, as the country passed this important milestone in ... Read more »

Farmers have right to protest but they can't block roads indefinitely, says SC

The Supreme Court on Thursday said farmers protesting at Delhi borders against the three farms laws have the right to agitate but they cannot block roads indefinitely. A bench headed ... Read more »

As India administers 100 cr COVID-19 vaccine doses, experts urge caution, say pandemic not yet over

Even as India reached the landmark of 100 crore COVID-19 vaccinations on Thursday, experts urged caution and said that the pandemic is far from over. Former Director-General of Indian Council ... Read more »

Varroc Engineering up 8% as HDFC AMC ups shareholding

NEW DELHI: Shares of Varroc Engineering jumped almost 8 per cent on Thursday as HDFC Asset Management Company took a 0.58 per cent stake in the company through open market ... Read more »

Shoppers Stop rallies 20% after upbeat Q2 results

New Delhi: Shares of Shoppers Stop zoomed as much as 20 per cent on Thursday after the company reported a strong set of numbers in September 2021 quarter. The retail ... Read more »

UK borrowing halves in first half of tax year as Rishi Sunak readies budget

British public borrowing fell by around half in the first six months of the current financial year compared with a year earlier, when the economy faced the full force of ... Read more »

Green hydrogen to account for 20% of European power demand by 2050: Statkraft

Hydrogen produced from renewable energy sources will account for 20% of Europe’s power consumption in 2050, and for 10% globally, a report published by Norwegian power company Statkraft on Thursday ... Read more »

100 heritage monuments to be lit in colours of Indian flag to mark 100 crore COVID vaccination feat

The Archaeological Survey of India (ASI) will light up 100 of its heritage monuments in colours of the national flag to mark 100 crore COVID-19 vaccine doses being administered in ... Read more »

Over 103 crore COVID-19 vaccine doses provided to States, UTs: Centre

The government has provided more than 103.5 crore COVID-19 vaccine doses to States and union territories (UTs), said the Union Health Ministry on Thursday. A total of 1,03,53,51,045 vaccine doses ... Read more »

Gauri Lankesh murder: SC sets aside HC order quashing charge sheet against accused for KCOCA offences

The Supreme Court on Thursday set aside the Karnataka High Court order quashing the charge sheet against an accused in the murder of journalist Gauri Lankesh for purported offences under ... Read more »

Shah Rukh Khan meets Aryan Khan at Arthur Road jail

Actor Shah Rukh Khan paid a visit to his son Aryan who is lodged in Mumbai’s Arthur Road jail in a drugs haul case, on October 21. The the 23-year-old was arrested after ... Read more »

100 crore vaccination milestone: 61% Indian citizens willing to take third dose, finds survey

Source: AP As India achieved the 100 crore COVID-19 vaccine doses milestone, at least 61 percent of citizens have expressed willingness to take the third dose of COVID-19 vaccine, if ... Read more »

Havells slumps 7% on disappointing Q2 results

NEW DELHI: Shares of Havells India slumped more than 7 per cent in early trading Mumbai on Thursday as the consumer electrical goods maker posted a 7.34 per cent fall ... Read more »

Why Indian Doctors Are Taking Booster Shots Of COVID-19 Vaccine

Ever since the pandemic first struck, doctors and healthcare workers have emerged as our first line of defence against infection. Their contributions have been widely reported and lauded. Some of ... Read more »

MG Motor India sells out first batch of SUV Astor within 20 minutes of opening bookings

MG Motor India – the British brand owned by China’s SAIC – has sold out the first batch of SUV Astor within 20 mins of opening booking Thursday. Deliveries for ... Read more »

Uttarakhand flash floods and landslides: Death toll mounts to 54, five missing

Flash floods and landslides caused by heavy rains in Uttarakhand have claimed the lives of 54 people in the last few days. A total of 19 people have sustained injuries ... Read more »

Achieved 100 crore COVID-19 vaccinations through collective effort, says Bhupender Yadav

Union Minister for Environment, Forest and Climate Change Bhupender Yadav on Thursday said the landmark of 100 crore COVID-19 vaccinations has been achieved through collective effort. “Today we’ve achieved 100 ... Read more »

The hydra-headed monster that wants to gatecrash your retirement party

Fixed deposits or FDs, the play-safe savings investment bet for many Indians, now fetch a negative return due to high inflation. That is, the interest you earn on your FD ... Read more »

L&T Finance Holdings sheds almost 5% after dip in Q2 profit

NEW DELHI: Shares of L&T Finance Holdings dropped almost 5 per cent in early Mumbai trading Thursday as the non-banking financial company reported a fall of 10 per cent in ... Read more »

Cruise drugs case: Bombay HC to hear Aryan Khan's bail plea on October 26

The Bombay High Court on Thursday said it would hear on October 26 the bail plea filed by Aryan Khan, son of superstar Shah Rukh Khan, in connection with a ... Read more »

Jhunjhunwalas hike stake in Titan for first time since Dec 2019

NEW DELHI: The jhunjhunwala duo, Rakesh and his better half Rekha, bought Titan Company shares in September quarter on a net basis for the first time since December quarter of ... Read more »

India's vaccination drive outpaces most countries as it breaches 100 crore inoculation mark

With an uptick in the world’s largest vaccination drive against COVID-19, India on Thursday crossed inoculation of 100 crore vaccine doses, according to the Ministry of Health and Family Welfare. ... Read more »

Online abuse: Banning anonymous social media accounts is not the answer

In the wake of the tragic death of the member of parliament for Southend West, David Amess, fellow MPs have been talking about how to best protect both politicians and ... Read more »

China: Crunch time for Evergrande as unit sale collapses

The collapse of China Evergrande’s planned $2.5 billion sale of a property services unit has left the troubled company closer than ever to its end, ramping up fears it will ... Read more »

COVID-19 Vaccine Tracker: India achieves 100-crore-vaccinations milestone on October 21

Representative image. India has achieved the milestone of 100 crore (one billion) vaccinations on October 21. India accounts for about 15 percent of the total vaccine doses administered worldwide as ... Read more »

'India scripts history,' PM Modi says, as nation reaches 100-crore COVID jab milestone

Prime Minister Narendra Modi. As India reached an extraordinary milestone of giving away 100 crore COVID-19 vaccine doses on October 21, Prime Minister Narendra Modi congratulated the nation and expressed gratitude to ... Read more »

India sees over 18,000 new COVID-19 cases, 160 deaths

A single-day rise of 18,454 fresh cases pushed India’s COVID-19 tally to 3,41,27,450, while the number of active infections rose to 1,78,831, according to the Union Health Ministry data updated ... Read more »

Union Health Minister Mansukh Mandaviya congratulates nation as COVID-19 vaccinations cross 100 cr mark

Union Health Minister Mansukh Mandaviya on Thursday congratulated the citizens of India on crossing 100 crore COVID-19 vaccination coverage and attributed the achievement to Prime Minister Narendra Modi. “Congratulations India! ... Read more »

Dolly Khanna buys this media stock amidst speculations over takeover by Adani Group

New Delhi: Amid speculations in the market that the Adani Group is eyeing NDTV, seasoned investor Dolly Khanna has bought a fresh stake in the media stock. As per the ... Read more »

China Evergrande secures extension on defaulted $260 mln bond -REDD

China Evergrande Group has secured an extension on a defaulted bond, financial provider REDD reported on Thursday, offering rare respite to the developer a day after a deal to sell ... Read more »

Sensex, Nifty rise in early trade; selling in IT shares keep upside capped

NEW DELHI: Domestic stocks were off to a positive start on Thursday, tracking a firm trend across Asian markets. Upside was, however, capped as investors were cautious over Brent crude ... Read more »

Cruise drugs case: Shah Rukh Khan meets son Aryan Khan in Mumbai jail

Bollywood superstar Shah Rukh Khan on Thursday met his son Aryan Khan at the Arthur Road jail in Mumbai where the latter has been lodged following arrest in a case ... Read more »

India crosses record one billion jabs

India has crossed the milestone of administering one billion Covid-19 vaccines, nine months after the second most populous country in the world initiated this mammoth movement. On social media platforms, ... Read more »

Government to mark big billion jabs milestone with India's largest khadi tricolour, illumination, song

Since the beginning of the country’s vaccination drive, 69.26 crore people have received at least one dose of Covid-19 vaccine, and 27.88 crore are fully vaccinated. (Representative image) India has ... Read more »

100 crore COVID-19 vaccines: These Indian states administered the most doses

A healthcare worker gives a dose of the COVISHIELD vaccine against the coronavirus disease (COVID-19), manufactured by Serum Institute of India, to a farmer in his field, during a door-to-door ... Read more »

Standing Tall: Five stocks seeing long positions despite market weakness

MUMBAI: In the mini-correction that took place in the broader market over the past two sessions, analysts noted a marked deterioration in the risk appetite of investors, especially retail. Many ... Read more »

100 Crore Vaccination LIVE Updates: India set to cross milestone; series of events lined up to mark occasion

100 Crore Vaccination LIVE Updates: India is likely to hit the milestone of administering 100 crore doses of COVID-19 vaccines today. The total vaccine doses administered in the country crossed 99.7 ... Read more »

Kerala Lottery Result: ‘Karunya Plus KN-391' lottery winners to be announced at 3 pm

Kerala had set up India’s first lottery department in 1967. Kerala Lottery Result October 21: The Kerala State Lottery Department is set to announce the winners of the ‘Karunya Plus KN-391’ ... Read more »

Stocks shuffle higher with a wary eye on Evergrande

SINGAPORE: Asian stocks eked small gains on Thursday but the upbeat mood that lifted the Dow Jones and bitcoin to records ebbed on fresh worries about China’s property sector after ... Read more »
On free-english-test.com you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic