Page 12 - Banking Finance October 2022

ROUNDUP

donor human milk from lactating of 35.18 per cent. The small Finance The format of tax audit reports have
mothers and then provide it to infants Banks clocked 27.66 per cent YoY changed significantly since the last re-
in need, officials said. growth. vision in year 2014, which broaden the
responsibility of the chartered accoun-
The centre has been established in Disbursements more than doubled to
tants while discharging their profes-
partnership between the Government Rs 57,842 in April-June 2022 (Q1Fy23)
sional duties in this respect, sources
of Nepal, the European Union and from Rs 27,328 crore during the same
said. Also, guidance was required on
UNICEF. quarter of last year. However, disburse-
certain issues around Goods and Ser-
ment is down around 35 per cent com-
"Premature, low birthweight and small
vices Tax (GST).
pared to the previous quarter (Q4Fy22)
for gestational age babies are vulner-
able in terms of survival and cognitive as lenders were fine tuning their dis-
bursement policy as per the new regu- FPIs pump in Rs. 44,500
development and usually have feeding
problems due to their medical condi- lations, Sa-Dhan said. crore into equities so far in
tions," said Prof. Dr. Amir Babu Loan recovery has improved compared
August
Shrestha, Director, Paropakar Mater- to the previous quarter and reached
After turning net buyers last month,
nity and Women's Hospital. almost 99 per cent in some states.
foreign investors have shown tremen-
However, there are still certain geog-
Microfinance loans grow raphies where collection is below the dous enthusiasm for Indian equities and
have infused close to Rs.44,500 crore
24% YoY in Q1 normal. For example, the collection
in August so far amid softening of in-
efficiency in Assam stood at 50-55 per
The loan portfolio of micro-finance in- flation in US and falling dollar index.
cent.
stitutions (MFI) increased 24 per cent
This was way higher than a net invest-
year-on-year (YoY) to Rs 2.75 trillion by Sectoral non-performing assets was at
ment of nearly Rs 5,000 crore by For-
end of this June from Rs 2.22 trillion a around 12 per cent at the end of June
eign Portfolio Investors (FPIs) in entire
year ago. 2022, and for NBFC-MFIs it was 9 per
July, data with depositories showed.
cent.
Sequentially, the loan book expanded
FPIs had turned net buyers for the first
from Rs 2.62 trillion at end of March
time in July after nine straight months
2022 (Q4Fy22), according to Sa-Dhan, CA Institute issues revised
of massive outflows, which started in
the self-regulatory organisation (SRO)
guidance note on tax au- October last year. Between October
for microfinance.
2021 till June 2022, they sold a mas-
dit
Jiji Mammen, chief executive officer of sive Rs 2.46 lakh crore in the Indian
The CA Institute has issued the Revised
Sa-Dhan, said the sector is on track
equity markets.
Guidance Note on Tax Audit to help its
after overcoming the impact of the
In the coming months, FPI flows are to
members discharge their obligations in
coronavirus. Although it was busy in
remain volatile. However, with the
implementing the Reserve Bank of a timely and effective manner under
fading concerns of rising inflation,
India's regulations during Q1, it has the income tax law.
tightening of monetary policy and per-
clocked a healthy growth. The Revised Guidance Note - eighth
formance of first quarter earnings, in-
Fund flow to the sector has improved edition- was approved at a meeting of
flows are likely to improve in emerg-
but some smaller MFIs still find it diffi- the central council of Institute of Char-
ing markets, said Shrikant Chouhan,
cult to access finance from banks. The tered Accountants of India (ICAI) at
Head - Equity Research (Retail), Kotak
organisation is working towards re- Siliguri.
Securities.
moving this gap, Sa-Dhan said in a
"We have in the recent council meet-
statement.
ing approved the revised Guidance
GST revenue crosses Rs.
Barring banks, portfolio of other micro- Note on Tax Audit. It's going to be a
big change as it is being done after 1.40-lakh crore
finance lenders recorded double digit
growth. Non-banking finance compa- seven or eight years," Debashis Mitra, GST revenue collection has been more
nies working as MFIs recorded growth President of ICAI, told. than Rs 1.4 lakh crore for six months
12 | 2022 | OCTOBER | BANKING FINANCE