Morning buzz: Double digit growth in festive shopping, Ajay Goel resigns as Byju's CFO, and more

Consumer durable firms and fashion retailers expect double digit value growth in sales this festive season. Image: Shutterstock

Consumer firms see double digit growth in festive shopping

Consumer durable firms and fashion retailers expect double digit value growth in sales this festive season. Demand is largely coming in premium products and is concentrated in the premium segment as rural markets continue to remain under pressure. Car sales are so far up by 20 percent this festive season while phone sales are up 4-5 percent in volume terms and 20 percent in value terms.  
(Business Standard, Economic Times)  

Ajay Goel resigns as Byju’s CFO  

Ajay Goel, brought in six months ago to streamline Byju’s financial compliance, has quit the company. He will finalise the FY21-22 financials before he leaves, the company said in a statement. Byju’s has named Nitin Golani as its India CFO, saying that 90 percent of the company’s business is in India. According to media reports, Goel is likely to rejoin his previous employer Vedanta.  
(Mint, Economic Times, Financial Express)  

Microfinance rates show no sign of easing

The Reserve Bank of India is unhappy with the fact that rates for microfinance loans have not eased. They have risen to a five-year high of 24.7 percent. While some of this increase has been due to the hike in repo rates, a lot of microfinance companies borrow from banks and have used this period to shore up their buffers. In March 2022, the 10 percent cap on pricing was lifted and there was an expectation that rates would come down.
(BusinessLine)  

Private banks struggle with falling NIMs and CASA  

Private banks, which saw strong loan growth in Q2, struggled with falling NIMs and CASA. NIMs fell 20-50 bps. Even if deposit rates stay flat, NIMs are likely to fall as more and more deposits reprice upwards. On the other hand, low-cost funds in the form of CASA accounts fell with HDFC Bank recording a fall of 490 bps and ICICI Bank seeing a fall of 180 bps. In the case of smaller private lenders, the fall was 100 bps.
(Financial Express)