One-time payments push up Equitas Small Finance Bank losses to ₹224 crore

by Hansraj Agrawal | Aug 8, 2025 | Business

Chennai-based Equitas Small Finance Bank reported a net loss of ₹224 crore in the quarter ended June 2025, as against a profit of ₹26 crore in the same quarter last year.

The loss was attributed to an additional standard asset provision of ₹185 crore in microfinance and ₹145 crore for additional non-performing assets (NPA) provision due to a change in provisioning norms, according to a statement from the company.

Overall deposits registered 18 per cent y-o-y growth. Interest income increased 9.8 per cent y-o-y to ₹1,649 crore in Q1 FY26, compared to ₹1,501 crore in the year-ago period. Net Interest Income for the quarter grew by 8 per cent y-o-y.

In the June 2025 quarter, the private sector bank saw gross advances being muted with contraction in the microfinance loan books and a growth of 18 per cent in the non-microfinance book.

Meanwhile, the retail banking segment saw a loss after tax of ₹432 crore, as against ₹2 crore in the year-ago period. The bank’s net NPA for the quarter stood at ₹342 crore (₹264 crore), the release said.

Published on August 8, 2025

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Gold ETFs see .2 billion inflows globally in July, WGC data shows

Gold ETFs see $3.2 billion inflows globally in July, WGC data shows

by Hansraj Agrawal | Aug 8, 2025 | Business

India and Japan lifted investments into gold ETFs (exchange-traded funds) in July, along with North America and Europe. Overall, global ETFs witnessed inflows to the tune of $3.2 billion in July, data from the World Gold Council (WGC) showed.

July witnessed inflows into gold ETFs in Asia at $93 million, despite an outflow in China. Its investors’ risk appetite improved as they shifted to equities, which saw their strongest performance since September 2004. In India, investments into gold ETFs was $156 million and in Japan, $215 million.

Global gold ETFs’ total assets under management increased to $386 billion in July, up 1 per cent from June to another high. Collective gold holdings increased by 23 tonnes to 3,639 tonnes, the highest month-end in 35 months, data showed.

On track for 2nd best show

Inflows into gold ETFs in North America were $1.4 billion in July, taking total inflows in 2025 to $22 billion. The investments are on track for their second-strongest annual performance.

“While flows remained positive, they did slow month-on-month. We attribute this to a short-term rebound in the dollar and a rise in rates, as expectations for future Fed cuts continue to be pushed further out,” said the WGC.

Some investors most probably booked profits and diverted them into equities, especially as recent trade announcements from Japan and the EU lifted risk appetite. “However, we’re also seeing speculative stocks gain traction, which could point to frothy conditions remerging. Still, the trajectory of US-China trade negotiations will likely remain one of the dominant drivers of future market sentiment,” said the WGC, a body of gold-producing nations.

It said continued inflows into gold-backed ETFs will likely be supported as signs that tariff effects trickle through more meaningfully to growth and/or inflation.

Outflow in Germany

European funds saw their third consecutive monthly investments rise in July. They attracted $1.8 billion. German funds saw investors logging out. “Gold’s outsized strength in British pounds attracted local investors,” the WGC said.

Inflows were witnessed in Switzerland and France too in July. The US tariffs uncertainty until July 27 supported investors’ interest growth concerns in the EU. “This was reflected in a pick-up in physical bar and coin demand, which saw the regional demand more than double year-on-year to 28 tonnes in Q2,” said the global gold organisation. In other regions, modest outflows from the gold ETFs were witnessed

Trading volumes in the gold market were $297 a day on average, higher by 2.3 per cent from June. Over-the-table-counter (OTC) volumes were 2 per cent higher than in June at $154 billion a day, but they were below the first half average of $165 billion. However, they were higher than the 2024 average of $128 billion.

On the Commodity Exchange (Comex), US, trade volumes averaged $137 billion a day, though global ETF activities dropped 15 per cent from June to $4.9 billion a day. Net longs in Comex gold futures were up 12 per cent from June to 676 tonnes, while money managers increased their net longs by 4 per cent.

Published on August 8, 2025

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Unquarantined imports blamed as new pest hits Kashmir’s apple orchards

by Hansraj Agrawal | Aug 8, 2025 | Business

A newly introduced pest, the apple blotch leaf miner, is damaging orchards across Kashmir, with farmers and experts blaming its spread on unquarantined high-density apple varieties imported from Italy and other countries.

The pest tunnels through leaf tissue, leaving pale trails that weaken foliage. Infested leaves curl, dry out and fall prematurely, reducing the tree’s ability to produce energy and, in severe cases, cutting yields.

“We first spotted the disease only six to seven years ago. We had never heard of it before,” said Tariq Ahmad, an apple cultivator from south Kashmir’s Shopian district.

The disease was first detected in 2019-20 in apple farms near the Advanced Centre for Horticulture Development in Zainapora, about 64 km south of Srinagar. The Centre, managed by the Department of Horticulture, has a 60-hectare high-density apple orchard. Farmers allege the disease spread from high-density rootstock imported from Italy and other countries to the centre.

“Conventional apple farms near the centre contracted the disease, which later spread to other villages in the area,” said Mubashir Ahmad, a local farmer. “It threatens the productivity and quality of our apples, putting the livelihood of growers on the line.”

Jammu and Kashmir produces 2.5-2.6 million tonnes of apples annually, accounting for more than 75 per cent of India’s total output. The industry provides employment, directly or indirectly, to 3-3.5 million people.

Waseem, Assistant Professor of Plant Pathology at Sher-e-Kashmir University of Agricultural Sciences and Technology (SKUAST-K), said the disease has engulfed the entire apple belt in south Kashmir, with sporadic outbreaks also reported in the north.

Farmers say the outbreak has already pushed up input costs, forcing them to spend more on pesticides and management practices, while harvest prospects remain uncertain. “The pest is a new addition to the list of existing diseases. Now we have to use additional pesticide sprays,” Ahmad said.

High-density cultivation

In recent years, thousands of farmers across the Valley, especially in the South, have switched to high-density apple varieties, uprooting traditional orchards. The Jammu and Kashmir government plans to expand high-density cultivation to 5,500 hectares by 2026 under the Modified High-Density Plantation Scheme, offering orchardists a 50 per cent subsidy to adopt the model.

Alongside the government’s efforts, several unregistered private players import plant material and distribute it without following quarantine protocols, raising fears of pest and disease outbreaks. “Distribution of plant material without proper quarantine is the main reason behind the spread of this pest,” Waseem said.

Published on August 8, 2025

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Time to allow dual listing of stock exchanges, depositories

by Hansraj Agrawal | Aug 8, 2025 | Business

National Securities Depository Ltd (NSDL) listed its shares a few days ago on the BSE and since then it is making waves. As against the issue price of ₹800, the stock has risen to ₹1,337 in just three days of listing.

However, those who wished to buy the shares of NSDL on the National Stock Exchange (NSE) would not have found the stock. The stock of NSDL did not list on the NSE, as the latter is a promoter.

Likewise, Central Depository Services Ltd (CDSL) and the BSE trade exclusively on the NSE. The current Securities and Exchange Board of India (SEBI) regulations prohibit market infrastructure institutions such as exchanges, clearing corporations and depositories from self-listing to avoid any conflict of interest that might arise while discharging their duty as a front-line regulator for the securities markets.

MIIs regulation

Regulations on MIIs have been rehauled every now and then in the last two-and-half decades ever since they became corporates and demutualised their functioning. The then Finance Minister Jaswant Singh in his 2002-03 Budget announced Corporatisation (from not-for-profit organisation to for-profit organisation) and Demutualisation (to become public listed company) of stock exchanges, by which ownership and trading rights were separated from each other. To implement the initiatives of the then government, SEBI had constituted a committee under the Chairmanship of former Chief Justice of India, MH Kania. The panel submitted its report in August 2002 recommending steps for corporatisation and demutualisation on August 28, 2002.

Incidentally, BSE turned into a public limited company exactly 20 years ago — on August 8, 2005.

Bimal Jalan committee report

Subsequently, SEBI in 2010 constituted another committee under the chairmanship of former Reserve Bank of India (RBI) Governor Bimal Jalan to review the ownership and working of MIIs. The report, submitted in November 2010, raised the bar for existing institutions and prospective entrants. According to the report, these institutions are systemically important for the country’s financial development and serve as infrastructure necessary for the securities market.

Among the major recommendations were no listing (cross-listing) of stock exchanges, restricting anchor investors to Banks, PFIs and having an optimal number of exchanges in India with a cap on profits.

Rejecting many key proposals of the much-debated Bimal Jalan panel, SEBI in 2012 had allowed listing of stock exchanges with several conditions, including limits on ownership so that 51 per cent of the exchanges are always held by the public. It opened the door for cross-listing.

Listing of MIIs

While Multi Commodity Exchange of India was the first to be listed from the sector on March 9, 2012, the BSE got its shares listed on the NSE on February 3, 2017. Shares of CDSL were listed on June 29, 2017.

However, NSE had then opposed the idea of cross-listing — listing on a rival exchange, and wanted to list its shares only on its own platform. However, with the listing of NSDL on a rival platform, it appears NSE has now had a change of heart and is planning to list its shares on the BSE. It now awaits SEBI approval to file its draft red herring prospectus to launch its much-awaited initial public offering.

The time has now come for dual listing, including on its own exchange, as the market regulator has tightened disclosure/insider trading norms as well as general trading rules, making them uniform across exchanges. If allowed, this would also benefit traders and investors, giving them better pricing.

Published on August 8, 2025

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Broker’s call: Titan Company (Buy)

by Hansraj Agrawal | Aug 8, 2025 | Business

Target: ₹4,150

CMP: ₹3,460.40

Titan Company posted consolidated sales growth of 25 per cent y-o-y in Q1-FY26. Standalone jewellery sales (excluding bullion) rose 17 per cent y-o-y, driven by an increase in ticket size (16 per cent y-o-y) due to rising gold prices. Studded jewellery grew 11 per cent y-o-y, and the mix declined 100 bp y-o-y to 29 per cent. The company is expected to face a high base effect in 2QFY26 due to the impact of last year’s customs duty reduction and the benefits from deferred purchases

We maintain our EPS estimates for FY26/FY27.

Titan, with its superior competitive positioning (in sourcing, studded ratio, youth-centric focus, and reinvestment strategy), continues to outperform other branded players. The brand recall and business moat are not easily replicable; therefore, Tanishq’s competitive edge will remain strong in the category. The store count reached 3,322 as of June 2025, and the expansion story remains intact.

The non-jewelry business is also scaling up well and will contribute to growth in the medium term.

We model a CAGR of 16/19/23 per cent in revenue/EBITDA/PAT during FY25-27E. Titan’s valuation is rich, but it offers a long runway for growth with a superior execution track record. Reiterate BUY with a TP of ₹4,150 (60x Jun’27 P/E)

Published on August 8, 2025

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