NEW DELHI: India’s largest carmaker Maruti Suzuki (MSIL) expects demand for passenger vehicles at urban centres to remain under pressure. “Going ahead, we don’t see strong demand at urban centres. Not that they don’t want the car but they can’t afford it,” MSIL chairman RC Bhargava said on Thursday. According to him, rural demand will, however, remain robust because of good monsoon.
Urban India has been hit primarily by the Covid-19 led economic slowdown. Job losses and salary cuts have significantly reduced the purchasing power of urban masses and uncertainty around recovery has deferred their present spending.
Adding to that, India’s GDP is expected to fall as much as 10 per cent this fiscal. Bhargava said the government can look at stimulating demand once the current momentum fades.
He added there is no need for an immediate cut in GST rate even as two-wheeler makers want it to be slashed by 10 per cent. MSIL on Thursday reported one per cent year-on-year growth in Q2 FY21 standalone profit to Rs 1,371.6 crore.
Bank of Baroda back in the black
NEW DELHI: State-owned Bank of Baroda on Thursday reported a standalone net profit of Rs 1,678.6 crore for July-September quarter (Q2FY21) on the back of lower provisons. In the previous quarter of the current fiscal (Q1FY21), the lender had incurred a loss worth Rs 864.26 crore.
On a yearly basis, PAT grew 128 per cent from Rs 736.6 crore. On a consolidated basis, profit was Rs 1,771.22 crore for Q2FY21, as against a net loss of Rs 678.71 crore in the June quarter. In the year-ago period, however, consolidated net profit stood at Rs 853.41 crore.
Net interest income (NII) came in at Rs 7,507.53 crore for the quarter under review, rising marginally from Rs 7,028 crore income earned in Q2FY20. Global advances rose by 5.3% led by domestic organic retail and agriculture loans which grew by 16.81% and 16.52%.