All posts by Sujata Achary

Chandigarh, January 29, 2025: Vedanta Limited, a global leader in natural resources and technology, and a committed partner in Odisha’s progress for more than two decades, today signed a memorandum of understanding (MoU) worth Rs. 1 lakh crore with the Government of Odisha, on the opening day of Utkarsh Odisha, the state’s global investment conclave organised in Bhubaneswar. The MoU was signed in the presence of Shri Mohan Charan Majhi, Hon’ble Chief Minister of Odisha and Shri Anil Agarwal, Chairman, Vedanta Limited. This transformative commitment aims to accelerate Odisha’s industrial growth by establishing world-class aluminium production facilities and promoting sustainable development across the state.

The collaboration includes the development of a 3 million tonnes per annum (MTPA) aluminium plant and an aluminium park that is poised to emerge as a major hub for downstream producers of aluminium products. Together, the announced initiatives will not only further cement Odisha’s crucial role in the global aluminium value chain, but will also generate 2 lakh employment opportunities and foster MSME growth across sectors like automotive, power, construction, and logistics.

Shri Anil Agarwal, Chairman, Vedanta Limited, remarked, “Odisha has always been integral to Vedanta’s growth story, and its resources have played an indelible role in India’s rise. This MoU represents a significant step toward driving large-scale industrialization and socio-economic development in the state, and a reiteration of our commitment to its progress. We are proud to deepen our decades-long collaboration with the Government of Odisha, ensuring sustainable growth, skill development, and a better quality of life for millions in the state.”

Vedanta’s current investments have led to the creation of the world’s largest single-location aluminium smelter at Jharsuguda, in addition to a world-class alumina refinery at Lanjigarh, which have helped make Odisha the Aluminium Hub of India. The company also operates FACOR, among the nation’s leading producers of ferrochrome, at Bhadrak, in addition to a growing mines portfolio across the state. These operations have sparked the accelerated socio-economic progress of their surrounding regions through the company’s focus on creating educational and healthcare facilities, skill development centres, and Nand Ghars (modern Anganwadi centres), ensuring inclusive development for Odisha’s communities.

As the global demand for aluminium is expected to double by 2030, this MoU strengthens Odisha’s position as an industrial and economic powerhouse, contributing significantly to India’s vision of becoming a global manufacturing leader while reaffirming Vedanta’s role as a catalyst in Odisha’s transformation and India’s industrial evolution.

Chandigarh, 29 January 2025: Ashok Leyland, the Indian flagship of the Hinduja Group and the country’s leading commercial vehicle manufacturer, signed a Memorandum of Understanding (MoU), with Sarva Haryana Gramin Bank to enter into a strategic vehicle financing partnership for its customers. This MoU will enable both Ashok Leyland and Sarva Haryana Gramin Bank to offer customized financial solutions to the customers.

The MoU was signed by Mr. Viplav Shah, Head – LCV Business, Ashok Leyland and Mr. Mithilesh Kumar Jha, General Manager, Sarva Haryana Gramin Bank in the presence of Mr. Sanjeev Kumar Dhupar, Chairman, Sarva Haryana Gramin Bank. Under this partnership, Sarva Haryana Gramin Bank will be able to provide end to end financial solutions to the customers of Ashok Leyland. The partnership will focus on meeting customer needs by providing vehicle loans with convenient monthly repayment plans tailored to their preferences.

Mr. Viplav Shah, Head – LCV Business, Ashok Leyland said, “Ashok Leyland is delighted to collaborate with Sarva Haryana Gramin Bank to offer our customers highly attractive financing solutions. This strategic partnership not only strengthens our market presence but also reinforces our commitment to innovation and customer success. With cutting-edge technology and industry-leading total cost of ownership, our products are designed to drive profitability and value for our customers. We remain steadfast in our commitment to deliver exceptional experiences and building long lasting relationships.”

Mr. Sanjeev Kumar Dhupar, Chairman, Sarva Haryana Gramin Bank said, “Sarva Haryana Gramin Bank is pleased to partner with Ashok Leyland to offer seamless vehicle financing solutions. This association reflects our dedication to serving the diverse financial needs of commercial vehicle customers. We are confident that this collaboration will enable us to extend our reach and provide tailored financing options to support the growth of businesses in the commercial vehicle segment in the state.”

Ashok Leyland today offers a comprehensive range of trucks and buses to meet the full spectrum of commercial vehicle needs, from intercity light commercial vehicles to long-haul trucks and a wide variety of buses. Ashok Leyland’s vehicles ensure safe transport and driver-friendly options. As a pioneer in technological innovations within the truck and bus segment, Ashok Leyland is fully equipped with a range of buses powered by alternative fuels, dedicated to reducing pollution and promoting an eco-friendly transport system in India.

Sarva Haryana Gramin Bank (SHGB), established under the Regional Rural Bank Act, 1976, operates under the sponsorship of Punjab National Bank with its head office in Rohtak, Haryana. Serving all 22 districts of Haryana through 686 branches and 11 regional offices, SHGB promotes financial inclusion and rural development. Offering savings, loans, and insurance, the bank supports farmers, small businesses, and rural entrepreneurs. With impeccable credit quality and 0% Net NPA, SHGB thrives on innovative, customer-focused banking solutions, fostering sustainable growth and prosperity in rural Haryana.

Chandigarh, January 29, 2025: 360 ONE WAM, India’s premier wealth and asset manager, has entered into a definitive agreement to acquire Batlivala & Karani Securities India Private Ltd [B&K] and Batlivala & Karani Finserv Private Ltd for Rs 1,884 crores (inclusive of Rs 200 crores of cash and cash equivalent). B&K is a leading mid-cap brokerage, servicing almost all leading Foreign and Domestic Financial Institutions. The company is a full-service broker dealing with institutional investors and also offers corporate treasury services to its set of clients, serviced by a team of over 300 professionals.

B&K is a pioneer in providing independent and unbiased research with a coverage of over 450 companies making it a leader in the mid and small cap space.

The acquisition, structured as a combination of a stock swap and part-cash transaction, is subject to regulatory approvals. Once complete, this strategic acquisition will help 360 ONE bolster its Broking Platforms across all market segments (UHNI, HNI, Retail, Institutions) along with growing its Equity Capital Markets business to serve its existing client base. Additionally, B&K’s strong presence in the corporate treasury segment is another area of synergy for 360 ONE’s client base.

As part of the transaction, Saahil Murarka, Managing Director, at B&K Securities will also become a part of the 360 ONE Group and lead the Broking and Capital Markets business.

Karan Bhagat, Founder, Managing Director & CEO, of 360 ONE WAM Ltd., stated, “This partnership marks a pivotal moment for both our firms. This acquisition strengthens our position as a market leader, enabling the integration of research, advisory, and execution capabilities across a wider spectrum of services. We are excited to work with Saahil and his team to grow this business line and deliver better value to our institutional, corporate, and ultra-high-net-worth clients.”

Saahil Murarka, Managing Director, B&K Securities said, “We are incredibly proud of B&K’s history and heritage as one of India’s oldest financial services institutions. This partnership with 360 ONE WAM is a natural progression for us, combining the best our organizations have to offer. B&K’s expertise in equities, institutional, and corporate financial services with 360 ONE’s comprehensive wealth management and asset management capabilities. We look forward to working closely and continuing to deliver exceptional service to our clients.”

Chandigarh, January 29, 2025: TVS Motor Company’s operating revenue grew by 10% at Rs. 9,097 Crores for the quarter ended December 2024 as against Rs. 8,245 Crores reported in the quarter ended December 2023.

The Company’s Operating EBITDA grew by 17% at Rs. 1,081 Crores for the third quarter of 2024-25 as against EBITDA of Rs. 924 Crores in the third quarter of 2023-24. The Company’s Operating EBITDA margin for the quarter is highest at 11.9% as against the Operating EBITDA margin of 11.2% reported in the third quarter of 2023-24. The Company’s Profit Before Tax (PBT) grew by 8% at Rs. 837 Crores for the third quarter of 2024-25 as against PBT of Rs. 775 Crores in the third quarter of 2023-24. PBT for the quarter includes a fair valuation loss of Rs. 41 Crores as against a gain of Rs.65 Crores during Q3 of last year.

The overall two-wheeler and three-wheeler sales including exports grew by 10% registering 12.12 Lakh units in the quarter ended December 2024 as against 11.01 Lakh units in the quarter ended December 2023. Motorcycle sales grew by 6% registering 5.56 Lakh units in the quarter ended December 2024 as against 5.23 Lakh units in the quarter ended December 2023. Scooter sales for the quarter ended December 2024 grew by 22% at 4.93 Lakh units as against 4.04 Lakh units in the third quarter of 2023-24. Three-wheeler sales for the quarter under review are at 0.29 Lakh units as against 0.38 Lakh units during the third quarter of 2023-24.

Electric Scooter sales for the quarter ended December 2024 grew by 57% at 0.76 lakh units as against 0.48 lakh units in the quarter ended December 2023.

Cumulative nine months results

Operating revenue grew by 13% at Rs. 26,701 Crores for the nine months ended December 2024 as against Rs. 23,608 Crores for the nine months ended December 2023.

The Company’s Operating EBITDA grew by 21% at Rs. 3,121 Crores for the nine months ended December 2024 as against EBITDA of Rs. 2,588 Crores for the nine months ended December 2023. The Company’s PBT grew by 19% at Rs. 2,517 Crores for the nine months ended December 2024 as against Rs. 2,109 Crores during the nine months ended December 2023. The Company’s PAT grew by 16% at Rs. 1,858 Crores for the nine months ended December 2024 as against Rs. 1,598 Crores during nine months ended December 2023.

The Company’s two-wheeler sales including exports grew by 14% registering 34.29 Lakh units in the nine months ended December 2024 as against 30.13 Lakh units registered in the nine months ended December 2023. Motorcycle sales grew by 10% registering 16.31 Lakh units in the nine months ended December 2024 as against 14.79 Lakh units in nine months ended December 2023. Scooter sales for the nine months ended December 2024 grew by 19% registering 14.01 Lakh units as against the sales of 11.74 Lakh units in the nine months ended December 2023. The Company’s two-wheeler exports grew by 19% at 7.78 Lakh units in the nine months ended December 2024 as against 6.52 Lakh units in the nine months ended December 2023. Total three-wheeler sales is at 0.98 Lakh units for the nine months ended December 2024 as against 1.16 Lakh units during nine months ended December 2023. Electric vehicles grew by 40% registering sales of 2.03 Lakh units for the nine months ended December 2024 as against 1.44 Lakh units during the nine months ended December 2023.

Chandigarh, January 29, 2025: Interio, one of India’s leading furniture brands under the Godrej Enterprises Group, has launched UPMODS, an innovative furniture range designed to meet the evolving needs of modern Indian consumers. Tailored for homeowners who value personal style, adaptability, and sustainability, UPMODS sets a new benchmark in furniture ownership with its unparalleled customization and upgradability.

UPMODS offers consumers the flexibility to modify their furniture without the need for complete replacements, providing a sustainable alternative that evolves with their lifestyles. With 2450 combination options, this platform-based approach empowers homeowners to upgrade, refurbish, and personalize their furniture effortlessly, enabling a complete transformation of their home’s look and feel.

Dr. Dev Narayan Sarkar, Senior Vice President and Head of Consumer Business, Interior, said, “The future of interior design lies in personalization and practicality, driven by the growing demand for multifunctional spaces that adapt to individual lifestyles. Today’s design-conscious consumers seek furniture that not only reflects their unique style but also evolves with their needs. UPMODS is our innovative response to this trend—a premium yet accessible furniture solution that supports sustainable living by reducing waste and eliminating the need for frequent replacements.”

The UPMODS range features:

Sofa Platform : A versatile core chassis supporting multiple configurations. Consumers can start with a 3-seater and expand to a sectional. Removable upholstery, interchangeable armrests, and various fabric and color options enable complete personalization.

Dining Collection : Adaptable table sizes with mix-and-match chair designs, under structure, tabletop designs and much more. The range allows upgrades from a 4-seater to a 6 or 8-seater, with multiple material and finish options for a personalized dining experience.

Bed Range : Contemporary designs with modular components, including interchangeable headboards and flexible storage configurations. Options for size upgrades and diverse material combinations cater to different bedroom aesthetics.

UPMODS combines form, functionality, and sustainability, addressing the limitations of traditional furniture with its innovative modular design. By offering affordable upgrades and customizable elements, it empowers homeowners to keep their spaces aligned with changing trends while reducing environmental impact.

With UPMODS, Interio continues to shape the future of home décor, ensuring that modern Indian homes reflect evolving lifestyles without compromising on style, comfort, or sustainability.

By Mr. Ashutosh Upadhyay, Founder, Cognio Labs

In the ever-evolving landscape of modern finance and cybersecurity, artificial intelligence stands at a fascinating crossroads. Like a guardian angel equipped with quantum-speed processing power and superhuman pattern recognition abilities, AI offers unprecedented protection. Yet, this same power harbors potential for sophisticated deception and attack. For auditors and accountants, understanding this duality isn’t just academic—it’s becoming a critical professional necessity.

The Protective Shield: How AI Safeguards Systems

The days of sample-based auditing are fading into history. Modern AI systems analyze every transaction in real-time, identifying anomalies that would take human teams months to uncover. Consider a recent case at a global manufacturing firm: an AI system detected a complex accounts payable fraud scheme by identifying subtle patterns in seemingly legitimate vendor payments—patterns invisible to traditional audit procedures.
In fraud prevention, AI systems are revolutionizing detection capabilities. Neural networks don’t just match known fraud patterns; they predict new ones. A European bank recently prevented a massive fraud attempt when its AI system detected anomalous patterns in international wire transfers that appeared legitimate but deviated microscopically from established business relationships.
Security protocol automation has evolved from convenience to necessity. AI-driven continuous monitoring adapts in real-time to emerging threats, learning from every transaction, login attempt, and data access pattern to build an increasingly sophisticated understanding of normal versus suspicious behavior.

The Dark Side: AI as a Weapon

However, this same sophistication that makes AI an effective guardian also makes it a formidable weapon in the wrong hands. Criminals now deploy AI systems to create nearly undetectable fraudulent transactions that mirror legitimate patterns. In a striking example, an AI-generated deepfake voice recently convinced a bank manager to authorize a $35 million transfer by perfectly mimicking a trusted client’s voice and speech patterns.
The rise of polymorphic fraud schemes—attacks that constantly evolve to evade detection—represents a new frontier in financial crime. These AI-driven systems automatically adjust their patterns based on success and failure, learning from each attempt to become more effective. Traditional rule-based fraud detection systems increasingly struggle against these adaptive threats.

Professional Implications: The New Frontier

This technological arms race has profound implications for audit professionals. The traditional sampling approach to audit evidence is becoming obsolete. Today’s auditors must understand:

• How AI models make decisions and what constitutes appropriate evidence
•  The potential for AI systems to be compromised or manipulated
• The importance of maintaining professional skepticism even with AI-generated conclusions
•  Methods for validating AI model outputs
•  Techniques for documenting and justifying AI-assisted decisions

Future Outlook: Evolution of Professional Judgment

The future of auditing lies not in replacing professional judgment with AI, but in augmenting it. Tomorrow’s auditors must be as comfortable evaluating AI systems as they are analyzing financial statements. This includes developing expertise in:

•  AI model validation techniques
•  Risk assessment of AI-generated conclusions
•  Documentation standards for AI-assisted auditing
•  Ethical considerations in AI deployment

Conclusion
The AI safety net in financial security is neither inherently good nor evil—it is a sophisticated tool whose impact depends entirely on its deployment and monitoring. For audit professionals, the challenge extends beyond learning to work with AI systems to developing the wisdom to know when to trust them and when to question their conclusions.
In this new landscape, professional scepticism remains your most valuable asset. As AI systems become more sophisticated, the ability to question, validate, and understand their conclusions becomes not just valuable, but essential for professional survival. The future belongs not to those who simply embrace AI, but to those who understand both its promise and its perils.

Innovative financing and leasing solutions are needed to address the unique challenges of EV adoption, as traditional financing models often prove to be adequate due to high upfront costs, battery ownership concerns, and limited access to credit. A new wave of startups is emerging to overcome these barriers by providing specialized EV leasing and green financing options that prioritize affordability and accessibility, enabling more individuals and businesses to transition to electric vehicles.

These startups are eliminating the need for substantial upfront investments and converting costs such as battery ownership into manageable monthly payments through flexible leasing models. They also partner with original equipment manufacturers (OEMs) and fleet operators to deliver comprehensive solutions that encompass vehicle acquisition, maintenance, and real-time fleet monitoring. By leveraging advanced technologies like IoT-based fleet management systems and data-driven credit assessments, they are improving operational efficiency and reducing costs.

Through their innovative approach, these companies are accelerating EV adoption, contributing to the growth of sustainable mobility, and making EV ownership a reality for a wider audience, thus propelling India toward a greener and more inclusive future.

Revfin:

One of the top online consumer loan platforms, Revfin, works to increase financial inclusion in India. Through its cutting-edge technologies and unconventional data analysis, Revfin provides people with easy-to-access lending solutions. By collaborating with Zappit to offer airport pickup services, Revfin has recently extended its offerings to the 4W EV market. Additionally, it has expanded its financing options and established a micro secondary market for EVs by working with other EV manufacturers and leasing firms.

Urja Mobility

UrjaMobility is a brand owned by MTOW Mobility Private Limited based at New Delhi.This Energy focused Company focus to work towards making owning an EV easily and believe “Battery is the new fuel” and this belief it presents battery leasing for commercial category for Electric Two Wheelers (L2), Electric Three Wheelers (L3, L5) and convert this upfront cost towards the battery (energy) to an easy MLV (Monthly Lease Value).

ALT Mobility

ALT Mobility is an EV leasing platform specialising in fleet management across seven cities. The Delhi-based startup offers easy financing for EV-as-a-service and last-mile delivery, with zero upfront costs. By paying a small security deposit and monthly lease, you can save up to 20 percent on monthly expenses. Partnered with 8+ OEMs like Piaggio and Euler Motors, ALT Mobility also provides a Fleet OS app for real-time vehicle and fleet monitoring.

Ecofy

Ecofy, India’s green-only NBFC, supports sustainable initiatives by offering affordable, hassle-free EV loans with minimal documentation and competitive interest rates. Financing up to 90 percent of the vehicle’s on-road price at 1/6th the cost per km compared to diesel, Ecofy is becoming a key player in EV financing. Partnered with brands like Ather, Mahindra, and Ola Electric, Ecofy provides financial assistance for electric two- and three-wheelers in both individual and corporate segments.

Greaves Finance

Greaves Finance Ltd., through its 100% ev-focused lending platform evfin, is India’s only ev-focused non-banking financial company (NBFC) and a wholly owned subsidiary of Greaves Cotton Ltd. With a mission to democratise the EV experience, Greaves Finance Limited, under its platform evfin, provides innovative financing solutions exclusively tailored to electric vehicle ownership, supporting the growth of sustainable mobility in India.

28th January New Delhi: Insight Cosmetics, a proudly Made in India brand, has officially earned Cruelty-Free PETA certifications, marking a significant milestone in its journey toward creating ethical beauty solutions. This achievement reflects the brand’s dedication to producing cruelty-free products that align with the values of today’s conscious consumers.

Founded on the belief that every living being deserves love and respect, the brand has always been driven by a deep sense of responsibility to both people and the planet. This commitment is evident in its promise to create products that are not only high quality but also ethically produced, without harm to animals.

According to Mr. Mihir Jain, Sales and Marketing Director, Insight Cosmetics, “We’ve always believed that true beauty is compassionate, and today we stand proud as a cruelty-free PETA-certified brand. For us, this certification is more than just a badge; it’s the culmination of years of hard work, passion, and a promise to create beauty that is cruelty-free and full of kindness.”

The brand is dedicated to making ethical beauty accessible, showing that consumers don’t have to compromise on quality or style to make responsible choices. Insight’s product range is not only PETA-certified and vegan but also dermatologically tested and Safe-certified by Bureau Veritas, ensuring that every product meets the highest standards of safety and efficacy.

To promote its Cruelty-Free PETA status, the brand has also launched a series of innovative campaigns like “Bus Shelters.” Along with the creative campaigns, the brand is also collaborating with influencers who share the brand’s ethical values to showcase products with the prominent vegan badge in stores and on digital platforms.

CHENNAI: Federal Bank announced the Financial Results for the quarter ended 31st December 2024. The key highlights of the results are as follows:

The Bank has delivered its highest-ever operating profit, achieving a remarkable ₹1,569.46 crore. The Bank’s sustained focus on growth and operational excellence has also led to an impressive financial trajectory, highlighted by the following key metrics:

•  Operating Profit: Highest ever at ₹1,569.46 crore.
•  Net Interest Income: At an all-time high of ₹2,431.34 crore, reflecting a 14.50% YoY growth.
•  Fee Income: Witnessed a strong 21% YoY growth.

The Bank has achieved its best asset quality performance in over a decade, reflecting its robust risk management framework and commitment to financial prudence. Key highlights are:

•  Gross Non-Performing Assets: Reduced to 1.95%.
•  Net Non-Performing Assets: Declined to 0.49%.
•  Provision Coverage Ratio: Strengthened to 74.21%.

The Bank continues to demonstrate strong business momentum, with substantial year-on-year growth across deposits, advances, and key product categories.Highlights of the Bank’s performance include:

• Total Deposits: Increased by 11% YoY, reflecting strong customer trust and engagement.
•  Total Net Advances: Achieved a growth of 16% YoY, driven by focused lending strategies.
• Average CASA: Grew by 11% YoY, underlining the strength of the Bank’s core business engine
•  NRE Deposits: Registered a solid 10% YoY growth, showcasing the Bank’s popularity among non-resident customers.
•  Credit Cards: Expanded by 24% YoY, reflecting enhanced customer adoption.

 Commercial Vehicle/Construction Equipment (CV/CE) and Micro Advances: Delivered robust growth of 39% and 50% YoY, respectively.

Management Commentary

Mr. KVS Manian, MD & CEOstated “This quarter has been pivotal for us as we strategically reoriented both the asset and liability sides of our balance sheet, addressing fundamental aspects to position the Bank strongly for the future. We have chosen to focus on granular retail deposit growth instead of high value, expensive deposits. We have also consciously avoided low yielding or high-risk assets for the sake of growth. Notwithstanding this disciplined approach, we have achieved a year-on-year growth of 15% in advances and 11% in deposits, positioning us competitively within the sector. We achieved this with minimal disruption. Our asset quality has reached its strongest levels in a decade. In alignment with our commitment to building a robust foundation, we have undertaken accelerated provisioning for certain riskier asset classes this quarter. We remain steadfast in our focus on building a high-quality franchise that delivers value to all stakeholders whether through superior customer service and relationships, an enhanced employee proposition, or consistent and sustainable earnings quality. As we look ahead, we are optimistic about future opportunities and confident in our ability to create enduring value for all our stakeholders.”

Strong Growth and Resilient Balance Sheet Performance

The Bank continues to demonstrate strong growth and resilience, with the total business of the Bank reaching ₹4,96,744.97 crore as of 31st December 2024, reflecting a robust year-on-year growth of 13.21%.

•  Deposits: Total deposits increased from ₹2,39,591.16 crore as of 31st December 2023 to ₹2,66,375.43 crore as of 31st December 2024.
•  Advances: On the asset side, net advances grew from ₹1,99,185.23 crore as of 31st December 2023 to ₹2,30,369.54 crore as of 31st December 2024. Key segments contributing to this growth include:

o Retail Advances: Up by 13.00%, reaching ₹73,498.54 crore.

o Business Banking Advances: Increased by 13.21% to ₹18,923.18 crore.

o Commercial Banking: Registered a substantial growth of 24.76%, reaching ₹25,880.00 crore.

o Corporate Advances: Achieved a 7.62% growth, totalling ₹77,464.94 crore.

o Commercial Vehicle/Construction Equipment Advances: Recorded outstanding growth of 38.53%, reaching ₹4,235.00 crore.

Highest Ever Operating Profit

Federal Bank delivered its highest-ever operating profit of ₹1,569.46 crore for the quarter ended 31st December 2024. This achievement underscores the Bank’s strong financial performance and operational efficiency. The Bank also reported a robust net profit of ₹955.44 crore for the same period.

Highest Ever Net Interest Income:

•  NII grew by an impressive 14.50%, reaching an all-time high of ₹2,431.34 crore as of 31st December 2024, compared to ₹2,123.36 crore in the previous year.
•  Total income increased by 17.17%, reaching ₹7,724.90 crore.
•  Earnings per Share on an annualized basis stood at ₹15.45.

Robust Asset Quality:

•  Gross NPA: ₹4,553.31 crore, constituting 1.95% of gross advances.
•  Net NPA: ₹1,131.17 crore, representing 0.49% of net advances.
•  Provision Coverage Ratio (excluding technical write-offs) stood at 74.21%.
•  Recovery and upgradation during the quarter totalled ₹335 crore.
•  The Bank has recognized accelerated provisioning of ₹292 crore during the quarter.

Net Worth and Capital Adequacy:

•  The Bank’s net worth increased to ₹32,077.05 crore as of 31st December 2024, compared to ₹28,084.72 crore in the previous year.
•  Capital Adequacy Ratio, as per Basel III guidelines, was a strong 15.16%.

Expanding Footprint:

• The Bank now operates 1,550 banking outlets, including 46 new outlets in FY25, alongside 2,054 ATMs and cash recyclers (including Mobile ATM) as of 31st December 2024.

Anuj Puri, Chairman – ANAROCK Group

Going by the sagging sales and supply of affordable housing(*) in India over the past few years, it is easy to forget that this segment was once the housing industry’s veritable poster child. Nevertheless, not too long ago, Indian real estate developers took it very seriously, regularly engaging with their architects to design smaller units to contain prices and ensure sales continuity.

This trend peaked when the Union Government put in concerted efforts to promote affordable housing via the ‘Housing for All’ program. In this period, the government announced many attractive incentives for buyers and developers of such housing. The affordable housing story took on an appealingly patriotic ‘nation building’ sheen and even big brand developers got into the fray (albeit at times by creating ‘sister’ brands for it) to not dilute their reputations as ‘lifestyle housing’ creators.

The supply share of this segment was nearly 40% of the total supply in 2018 and 2019. Cities like Pune, Kolkata, Chennai, and NCR were witnessing consistently high supply of such homes, riding on stimuli such as lower GST rates and tax breaks.

The Pandemic Effect

The COVID-19 pandemic profoundly changed these dynamics, and as of today, we cannot say whether this change is temporary or long-term. In any case, as the nation awaits the Union Budget of the Modi 3.0 government, there is no doubt that the stakes for the languishing affordable housing sector are very high. In fact, it is hoped that Budget 2025-26 will be a resuscitating turning point for it.

After the pandemic, housing demand changed considerably. Now, Indians wanted larger and multi-functional homes with a comprehensive spread of lifestyle amenities. In a very real way, the movement restrictions of COVID-19 gave rise to national-level claustrophobia. Also, the concept of homes as separate spaces from workplaces was displaced – they now had to be able to serve as both residential facilities and offices.

In a fairly short time, the once robust supply of affordable housing tottered and dwindled. Its total supply share reduced from 40% in 2018 to 16% in 2024. The target clientele, consisting of blue-collar workers, lower-paid workforces and those just starting out in their careers, were severely cash-strapped and obviously, buying homes did not feature among their immediate priorities. Instead, the rental market picked up after the pandemic abated and businesses sent out their ‘return to office’ call.

The previously popular model of modest beginnings with smaller ‘starter’ homes and leveraging capital appreciation and career growth to eventually upgrade to bigger ones lost its appeal. Indians who were considering homeownership at all had their eyes on the biggest units they could afford. This trend continues even today, and essentially small-sized affordable housing plays no role in it.

Shrinking Supply

At the developers’ end, constantly rising input costs comprising of land, labour and construction materials (compounded by the low profit margins of affordable housing and the withdrawal of all relevant fiscal benefits) caused their previous enthusiasm for affordable housing to dwindle. Instead, they turned their focus on what was and continues to sell well – bigger units with good lifestyle amenities.

In 2024 and as of now in January 2025, Bangalore is devoid of any supply in this segment. Hyderabad and Chennai are seeing only a minimal 2% supply share. The only cities with any sizeable activity in this segment are Kolkata and MMR. In both these cities, nearly 31% of the total upcoming supply is priced below INR 40 lakh.

NCR has witnessed a drastic reduction in its share of affordable housing, falling from 62% in 2020 to only 11% in 2024. In terms of both demand and supply, NCR is showing far greater interest in high-end and luxury properties, which is evident from the rise in the value of inventory sold during the year. Residential apartments sold in the NCR primary market in 2024 is estimated to be valued at INR 90,000 Cr, which is 32% more than in 2023. In value terms, NCR is second only to MMR.

PMAY – Current Status

While certainly not breaking any records, the Pradhan Mantri Awaas Yojana – PMAY (Urban) – has made steady progress since it was announced in mid-2015. Data by Ministry of Housing and Urban Affairs indicates 118.64 lakh homes have been sanctioned as of 20th January 2025. Nearly 90.22 lakh units have been completed, and nearly 112.50 lakh have been ‘grounded’. In terms of the financials, nearly INR 200,000 Cr of central assistance has already been committed.

Despite fairly good progress, PMAY must be made accessible to more people, and awareness about it also needs a big shot in the arm. New adaptable, sustainable and low-cost construction technologies can be used to rapidly develop large mass housing projects. The government should also try to eliminate bottlenecks in property records.

An important aspect of PMAY is interest subsidy on home loans, and direct subsidy for individual house construction or enhancement. However, to qualify for these subsidies, properties need title documents – a big hurdle, since India’s land records system is far from sophisticated enough right now to address the task holistically and at scale.

Any announcements that Union Budget 2025-26 will make in context with affordable housing will doubtlessly involve PMAY. Creative solutions and strong political will can bring this vitally important programme back to centre stage, which is where it belongs.

Is the Tide Turning?

Nationally, rising prices have led to a gradual tapering down of luxury housing, and this may trigger an inflection point where the cycle can once again turn positive for the affordable segment. Any substantial announcement for the affordable housing segment in the upcoming Union Budget can strengthen the trend and give affordable housing a seriously needed leg-up.

Even if such measures don’t initiate a full-blown revival, they can at least improve this segment’s overall prospects. Finally, a healthy housing market caters to a broad range of buyers and doesn’t favour just one segment.