Page 19 - Banking Finance May 2021

ROUNDUP

COVID-19 second wave rate reductions, as announced by state the bank's 4,586 branches spread
governments like Maharashtra. across India and also via on-site
heightens risks for Indian
Dhruv Agarwala, Group CEO, counters at high footfall Jeep brand
banks Housing.com, Makaan.com and dealerships.
According to Fitch, the second wave of PropTiger.com, stated, "The Sumit Bali, President & Head - Retail
COVID-19 infections poses increased residential real estate market in the Lending, Axis Bank, said, "Our strategic
risks for India's fragile economic country is seeing a positive momentum partnership with a prestigious
recovery and its banks. Fitch already on the back of various measures taken automobile brand like Jeep will enable
expects a moderately worse by the centre and state governments, us to reach out to a newer and wider
environment for the Indian banking the RBI and the entire banking system set of customers in India. Both Axis
sector in 2021, but headwinds would (as demonstrated in home loan rate Bank and Jeep India have a strong track
intensify should rising infections and reductions)." record in our respective industries and
follow-up measures to contain the Another reason behind the pick-up in this partnership's complete focus will
virus further affect business and sales was affordability, a combination be on keeping customers first."
economic activity.
of property prices and lending rates.
Fitch forecasts India's real GDP growth "Though the recent surge in covid-19 60% of allocated cases
at 12.8% for the financial year ending infections concentrated in a few settled in a year using
March 2022 (FY22). This incorporates markets is a concern, we expect the
expectations of a slowdown in 2Q21 residential market recovery to faceless tax assessment
due to the flare-up in new Corona Virus continue," Agarwala added. Central Board of Direct Taxes (CBDT)
cases but the rising pace of infections chairman P.C. Mody said that after the
poses renewed risks to the forecast. Jeep India join hands with faceless assessment scheme was rolled
Over 80% of the new infections are in Axis Bank to launch out in August 2020, the Income Tax
6 prominent states, which combined department has settled about 1.15
account for roughly 45% of total financial services initiative lakh assessment orders or nearly 58%

banking sector loans. Any further for customers & dealers of the cases allocated for such
disruption in economic activity in these Jeep India has recently said that it has resolution.
states would pose a setback for fragile inked a pact with Axis Bank for a new According to him, after the scheme
business sentiment, even though a
initiative to provide better retail was launched, 57,985 legacy cases and
stringent pan-India lockdown like the financing options to its customers and 1,36,001 new cases were allocated in
one in 2020 is unlikely.
dealers across the country. This pact faceless assessment scheme. Out of
The operating environment for banks aims to come up with 'Jeep Financial these, 46,822 legacy cases and 59,552
will most likely remain challenging Services' to curate financial solutions new cases have been disposed of.
against this backdrop. This second for Jeep customers as well as brand Mody said, "Where there was a case
wave could dent the sluggish recovery dealers. to raise tax demand, it was done and
in consumer and corporate confidence, According to Jeep India, formation of where there was no need to raise
and further suppress banks' prospects
the entity strategically supports the demand, no tax claim was made."
for new business.
anticipated growth in the business of He further added that in these cases,
Jeep India and a consequent rise in its additional tax demands were there
Home sales rise 12% in customer base. Jeep brand dealers will only in around 8% of the cases, (against
Jan-Mar quarter: Report also be benefitted from the 60% during the earlier system) that
partnership as they will enjoy special
According to a report, home sales involved personal interface and
across 8 prime residential markets in interest rates and will contribute to a resultant element of subjectivity. The
India witnessed a 12% sequential rise more seamless retail process. amount involved in tax disputes were
in the January-March quarter of As part of the partnership, Axis Bank over 11 lakh crore in FY19 end, as per
calendar year 2021. Developers sold a and Jeep India will get access to each official data, up 23% over the year-ago
total of 66,176 homes during the other's growing customer database. level; the Centre's gross tax receipts in
period, helped by stamp duty and circle Jeep customers will be serviced from FY19 was Rs. 20.8 lakh crore. T

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