The LGL Group, Inc. Announces Fourth Quarter 2021 Revenue, Backlog, Cash and Marketable Securities in Advance, Updates Progress of Its Spin-Off MtronPTI, and Sets Earnings Release Date and the fourth quarter 2021 conference call

ORLANDO, Fla., February 14, 2022 – LGL Group, Inc. Advance Announces Fourth Quarter 2021 Revenue, Backlog, Cash and Marketable Securities, Updates Progress of Its Spin-Off MtronPTI and sets the date for its fourth quarter 2021 earnings conference call.

Flash Report: The company’s revenue, backlog, cash and marketable securities and other highlights for the fourth quarter of 2021 are as follows:

Michael Ferrantino, President and CEO, said, “Despite the continuing headwinds related to COVID, we are beginning to benefit from the avionics market recovery and progress in our defense and space businesses. The improvement in backlog came from the recovery in the avionics market and strong defense orders, including a $6.3 million order in the fourth quarter for a major missile defense program, including the most are expected to ship after 2022. I am optimistic about our future as our markets improve and we execute our strategies to improve operations securing the delivery of superior technology to our customers.”

James Tivy, LGL’s Chief Financial Officer, added: “During 2021, we sold approximately 1.46 million shares of our IRNT common stock from LGL’s SPAC investment. This SPAC investment generated over $17 million in pre-tax gross proceeds for the year. The Company continues to hold 1.34 million shares of IRNT common stock of which approximately 300,000 shares are hedged and in-the-money. »

As previously announced, the LGL Group Board of Directors has approved the spin-off of M-Tron Industries, Inc. (“MtronPTI”). The spin-off is expected to be structured as a tax-free pro rata distribution to all LGL shareholders on a record date to be determined. If completed, upon entry into force of the transaction,

LGL shareholders would hold shares in both companies. Completion of any spin-off would be subject to various conditions, including shareholder and applicable regulatory approvals. It is also expected that MtronPTI will be treated as discontinued operations from a GAAP reporting perspective, effective upon shareholder approval. There can be no assurance that the potential split transaction will be completed in the manner described above, or at all. If LGL proceeds with the spin-off, it does not expect to complete the transaction until the second quarter of 2022.

LGL believes that, if completed, the potential spin-off of MtronPTI would allow shareholders to more clearly assess the performance and future potential of each entity on a stand-alone basis, while allowing each to pursue its own business strategy and capital allocation policy. Separating MTronPTI as an independent public company positions the business to increase value for both MTronPTI and LGL Group. The split allows each company to tailor its strategic plans and growth opportunities, more effectively mobilize and allocate resources, including capital raised through debt or equity offerings, use to flexibly own shares as currency for teammate incentive compensation and potential acquisitions and to provide investors with a more focused investment opportunity.

The LGL group is continuing its profitable growth efforts internally and through acquisition. The LGL Group, on a pro forma stand-alone basis post-split, will continue to own and grow its frequency reference and time standard timing solutions business through its subsidiary Precise Time and Frequency LLC (“PTF”), and is expected to retain substantially all of the company’s cash and marketable securities.

The LGL Group has successfully established several businesses over its history, including Lynch Interactive, The Morgan Group, Tremont Advisors and others. MTronPTI itself sought to become an independent publicly traded company via an IPO, filing a Form S-1 registration statement with Needham & Company as an underwriter in 2000. This IPO was withdrawn due to market conditions. MTronPTI today has an established and formidable presence in its key markets and if the split is completed, the standalone MTronPTI would continue to provide state-of-the-art engineering solutions to its defense and aerospace customers. The potential spin-off is therefore a continuation of the company’s strategy of growing businesses and positioning them as independent entities to improve shareholder value and alignment.

About LGL Group, Inc.

The LGL Group, Inc., through its two main subsidiaries MtronPTI and PTF, designs, manufactures and markets high technology electronic components used to control the frequency or timing of signals in electronic circuits, and designs standards high-performance frequency and time reference systems that form the basis of timing and synchronization in various applications.

Based in Orlando, Florida, the company has additional design and manufacturing facilities in Yankton, South Dakota, Wakefield, Massachusetts and Noida, India, as well as local sales offices in Hong Kong. and in Austin, Texas.

For more information about the company and its products and services, contact James Tivy at The LGL Group, Inc., 2525 Shader Rd., Orlando, Florida 32804, (407) 298-2000, or visit www.lglgroup.com, www. ptf-llc.com and www.mtronpti.com.

Caution Regarding Forward-Looking Statements

This press release may contain forward-looking statements made in reliance on the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as than amended. Forward-looking statements include all statements that do not relate solely to historical or current facts, and can be identified by the use of words such as “may”, “will”, “expect”, “plan”. , “estimates”, “anticipates”, “plans”, “believes”, “potential”, “should”, “continue” or negative versions of these or other comparable words. These forward-looking statements are not guarantees of future actions or performance.These forward-looking statements are based on information currently available to us and our current plans or expectations and are subject to a number of uncertainties and risks that could materially affect current plans, anticipated actions and our future financial condition and results. Some of these risks and uncertainties are described in greater detail in our filings with the Securities and Exchange Commission. We have no an obligation (and we expressly disclaim any such obligation) to update or change our forward-looking statements, whether as a result of new information, future events or otherwise.

###

Contact:

James Tivy

The LGL Group, Inc.

[email protected] (407) 298-2000

This is a stunning reversal of opinion on MGNREGA, which was derided just a decade ago by the private sector, political commentators and then Chief Minister Narendra Modi as a ‘handout’ for the poor that would make them lazy and indolent.

Ironically, the economic study of 2021-22 proudly states that MGNREGA has provided a safety net for over 110 million poor Indians. As a reminder, all publicly traded companies and unicorn start-ups combined employ only seven million people.
But, in reality, more than 110 million would have depended on MGNREGA this year, if the program had not run out of money after just six months in the current fiscal year. Demand for work under MGNREGA, which is by definition an unemployment insurance scheme for people in dire straits, is at record highs and apparently many have been turned away due to lack of funds.

In this context, the FM introduced a new economic philosophy in the budget that moves away from direct government social assistance for the needy towards indirect economic impact. Denying expectations of an extended and expanded MGNREGA, FM instead cut the budget for the program and reallocated it to government capital expenditure.

To be clear, lowering the demand for MGNREGA should be our primary economic goal as a nation. It is a demand-driven program and if people are able to find better quality jobs than working for minimum wage, the demand for MGNREGA and therefore spending will also be lower. But dismissing people for lack of funds and artificially suppressing the demand of MGNREGA does not suit a democratically elected government.

The idea that government should step in when private investment is lukewarm and demand is lackluster in an economy is sound and well-established economic theory. In itself, embarking on a program of productive public investment to stimulate economic activity, stimulate demand and catalyze private investment is a laudable goal. The question is: was it right to cut MGNREGA’s spending to fund government investments in this perilous time? And the natural corollary question will be: how else could such a government investment program have been funded?

The Union Government plans to spend an additional Rs 2.5 crore on capital expenditure next year compared to the current year, including Rs 1 crore in loans to states exclusively for expenditure of investment. Sixty percent of this additional investment amount is expected to come from a reduction in food (ration), fertilizer, fuel subsidies and MGNREGA.

The government’s fundamental premise is that we are past the pandemic blues and next year will be a normal year. Extra food grains given during the pandemic can be withdrawn and food subsidies can be reduced by Rs 80,000 crore is believed. Similarly, the government seems to believe that the demand for MGNREGA will decrease next year and has reduced its allocation by around Rs 30,000 crore. The government’s belief that next year will be a “business as usual” pre-pandemic year is a dangerous gamble.

It is important to remember that in September 2019, outside of the budget cycle, there was a sudden announcement of a dramatic reduction in corporate tax rates. As a result, of the more than nine lakh companies that filed tax returns last year, the top 433 companies with profits above Rs 500 crore paid taxes at the effective rate of 20%, while at in fiscal year 2019, these companies paid an effective tax rate. by 27 percent.

The profits of these top 400 companies have doubled and their market value has tripled since 2019. But the total number of people employed by these companies has remained the same. To put it simply, corporate tax cuts have so far cost the government Rs 3 lakh crore (Rs 1.5 lakh crore per year), they have doubled corporate profits, but created no new job.

Since the government believes that next year will be a normal year like 2019, the corporate tax rate could have been reduced to the 2019 rate. This could have generated at least an additional Rs 1 lakh crore in tax revenue, probably more , which could have been used to increase capital expenditure without the need to reduce welfare.

There would have been no economic or social repercussions of this decision since these companies did not increase their investments or create jobs after the tax cuts and they were used to paying taxes anyway tax rate. Similarly, with booming stock markets and massive increases in the capital wealth of the few, an increase in securities trading and capital gains taxes could have yielded at least another Rs 50,000 crore, to be used to increase capital expenditure. India’s capital gains and corporate tax rates are among the lowest in the world, and have yielded no ‘dividend’ in terms of investment or jobs for people. There was a clear and justified rationale for boosting government investment spending by raising corporate and capital gains tax rates and not cutting social spending at such a precarious time for the economy.

Increasing public investment to stimulate economic activity is in principle a good philosophy. Reducing MGNREGA expenditures is an optimal objective but one that must be achieved naturally and not forcefully. Reducing social spending to finance investment spending in the hope of “falling off” economic benefit is a dangerous bet at the present time. Especially, when there were other, more prudent ways to raise funds by increasing progressive direct taxes on large corporations without deleterious impact. For the good of the nation, I sincerely hope that the dangerous bet of the Modi government to finance public investments by reducing safety net allocations will pay off, although I remain skeptical.

This column first appeared in the print edition of February 12, 2022 under the title “At the expense of the poorest”. Chakravarty is a political economist and chairman of Congress party data analysis

By Radharaman Hari Kothandaraman

Although this year’s budget avoided too many sector-specific announcements, the only sector that should have deserved special attention was the textile and clothing industry, the second largest job generator in the country.

Given the context of the Covid-19 pandemic and its negative impact on employment and consumption, one would have thought that textiles would have received special attention in this budget from the Minister of Finance.

After a dramatic decline in demand in 2020-2021, the textile and apparel industry has made a steady comeback in the current fiscal year thanks to a rebound in exports and a revival in domestic demand. The industry is far from out of the woods, however, facing a long road to recovery due to several headwinds.

The sector has for many years faced enormous competitive pressure from rival textile exporting countries such as Pakistan, China, Vietnam and Bangladesh and has recently been plagued by an unprecedented rise in the cost of many incoming raw materials which reflected the boom in the global raw materials market. prices.

Additionally, recent talks over a proposal to hike the GST on textiles have significantly dampened confidence in an industry that was once by far the largest industrial sector in the country. With consumption weak due to successive local and national lockdowns, the sector was in desperate need of positive policy measures in this budget.

As the second largest source of employment in India after agriculture, the textile industry should be seen as a strategic sector that could be used to boost both consumption and employment, thus creating a multiplier effect on the economy. economy.

Given the emphasis on infrastructure creation and sustainable development underlined by the Minister of Finance, it might have been useful to allocate funds for the establishment of centralized effluent treatment plants in textile clusters across the country to manage the dye effluents that the industry produces in large quantities each year. This could, in addition to reducing pollution of our water bodies, allow the industry to position itself as a sustainable fashion leader in the global fashion industry.

Another initiative that could have had a considerable positive impact is the granting of enhanced minimum support prices on agricultural activities linked to the sector such as cotton and sericulture. This would have led to long-term incentives for farmers in these sectors, thus ensuring commodity price stability in the years to come.

As a temporary measure, the government could at least also have considered interest rate subsidy programs for loans granted to this sector for a minimum period of one year – a measure that could avoid a build-up of bad debts and a future crisis of confidence among lenders in lending to industry.

The country’s textile sector is not limited to large garment units and factories. A large majority of its capacity comes from semi-organized rural artisans who are not covered by any of the government programs. To help this critical section of the rural workforce, the government could channel some of the funds through its rural employment guarantee programs (such as MGNREGA) to artisans employed either by private contractors, NGOs or cooperatives in rural areas, thus strengthening artisan communities across the country. to get better wages and job dignity, especially in these difficult times.

Many artisans in remote parts of the country find it difficult to stock raw materials in advance due to a lack of adequate working capital, which makes them vulnerable to sudden increases in raw material prices. Lack of access to capital therefore further handicaps the handloom sector which faces strong competition from cheaply manufactured substitutes that are often imported into the country. Giving priority sector status to the hand weaving and handicrafts sectors and better access to credit through microfinance institutions would greatly benefit these small entrepreneurs.

Finally, given the upcoming deliberations in the GST Council on the proposal to increase GST rates on textiles, it is hoped that the Union Government will use its substantial voice in the Council not only to postpone the rate hike, but also to reduce the GST on labour-intensive textiles. such as looms to stimulate demand and encourage more employment in a sector that probably remains one of the largest segments of the economy not covered by most government economic incentives.

Radharaman Hari Kothandaraman is the Founder, CEO and Lead Designer of The House of Angadi. He is also creative director of design brand Advaya and recently launched international luxury ready-to-wear brand, Alamelu.

The government could raise around Rs 1-1.3 lakh crore in FY22 divestment proceeds, which largely hinges on the proposed mega IPO of Life Insurance Corporation in March.

While the IPO of LIC would help the government narrow the shortfall from the budgeted divestment target of Rs 1.75 lakh crore for FY22, it could again set a target of around Rs 1.75 lakh crore for the next fiscal year as some of the big-ticket strategic sales such as that of fuel retailer-refiner BPCL and IDBI Bank originally planned for this fiscal year are expected to wrap up next fiscal year.

Without the IPO of LIC, government divestment proceeds would be around Rs 30,000 crore in FY22.

The IPO of LIC is fast-tracked in consultation with the Securities and Exchange Board of India (Sebi) and the Draft Red Diversion Prospectus (DRHP) filed with the regulator in the first week of February would be as perfect as possible, according to the Department of Investment and Public Assets Management Secretary Tuhin Kanta Pandey told FE last week, reiterating the government’s determination to complete the country’s largest IPO in March.

The government could mop up around Rs 1 lakh crore if it dilute a 10% stake in the public sector insurer, but the extent of the problem is not yet clear as market sentiments could decide. The government has collected Rs 27,330 crore or 16% of the FY22 divestment target.

The government could extract a few thousand rupees from the privatization of helicopter service provider Pawan Hans (unlisted) and the sale of part of the stake of SUUTI (Specified Undertaking of The Unit Trust of India) in Axis Bank or ITC by March 2022. SUUTI 7.92% stake in ITC is worth around Rs 21,000 crore and 1.55% stake in Axis Bank is worth around Rs 3,700 crore at current market prices.

The privatization of BPCL, which was scheduled for FY22, will likely be completed in FY23, as no decision has yet been made on financial tenders. In November 2020, several bidders, including Vedanta, Apollo Global Management and Think Gas (I Squared Capital), expressed interest in the government’s 52.98% stake in BPCL. However, US private equity firm I Squared Capital has reportedly dropped out of the race to buy the state-owned oil company, due to the deal’s complex structure and lack of backers for the deal.

The market value of the Centre’s entire stake in BPCL is worth around Rs 44,000 crore at current prices. The government would probably want a premium to the market valuation for its stake in BPCL. It can fetch 50,000 to 60,000 crore rupees.

Other significant deferrals to the next financial year include the government’s proposed 45.48% stake in IDBI Bank, worth around Rs 24,500 crore at current market prices. By making appropriate changes to the railways land licensing policy, the government could offload a 30.8% stake in the Container Corporation worth around Rs 12,000 crore at current prices. current market. The privatization of the Shipping Corporation of India could yield around Rs 4,000 crore. With the Supreme Court recently clearing the sale of the government’s remaining 29.54% stake in Hindustan Zinc, worth around Rs 39,000 crore, this could be another big divestment in the coming year. exercise 23.

In the FY22 budget, the government announced the privatization of two public sector banks and a general insurance company. But these operations should be included in the divestment program for the next fiscal year. According to sources, Niti Aayog has already recommended the sale of Indian Overseas Bank (96.38% worth around Rs 38,000 crore at current market prices) and Central Bank of India (93.08% Rs 17,575 crore) to the Core of Secretaries on Divestment, headed by the Cabinet Secretary. In addition, a public sector general insurance company is likely to be privatized.
There will also be a few other smaller deals, although the bulk of next year’s divestment proceeds will come from strategic sales/privatizations.

Approval from the Reserve Bank of India (RBI) for the establishment of this dual structure is still awaited, banking industry sources said. The RBI has now advised that acquisition and resolution should be housed under the same legal entity. Accordingly, NARCL and IDRCL are reworking the arrangement under which the two processes will be under the control of the former.

NARCL was established and received a license from the RBI to operate as an asset reconstruction company. Simultaneously, a separate company has been set up to operate as an asset management company, named IDRCL, which will provide asset management and resolution and will also assist in operational aspects, related to price discovery and aim to evolve the best possible recovery and resolution process. NARCL is majority owned by public sector banks with a 51% stake, but in the case of IDRCL, 51% of the shares are in private hands.

Normally, a single entity to be held liable as owner and for the recovery of assets is the practice followed in all geographies. A “master and agent mechanism” or similar arrangement may eventually evolve to address this issue. The Indian Banks‘ Association would have liked a dual structure, with the AMC as a private entity, outside the reach of the regulatory entities. However, the RBI has not yet accepted this dual structure. “An early decision on the matter is expected and will be welcome given the crucial role of the proposed bad bank,” a banking source said.

A senior government official said the government expects this issue to be resolved soon and the first batch of resolutions should come into force before the end of March. The first batch of Rs 90,000 crore NPA was to be acquired by NARCL in January. “We cannot let it drag on because the delay has a cost and harms the recovery. The dual structure is common in the capital market where Sebi is the regulator, and it is the best possible solution. The RBI will see how best to regulate it,” the official said.

Tarun Bhatia, MD and Head of Kroll South Asia, said: “The delay appears procedural and hopefully should be resolved soon. In accordance with the previously agreed process, NARCL would acquire the NPAs and IDRCL would drive the resolution process. “It is believed that this should be resolved soon as the government is keen for NARCL to initiate the process as soon as possible,” he said.

As a proactive and sustainable solution with NPAs in the banking sector, the Minister of Finance had, in this year’s Union budget, announced the establishment of NARCL to take over the distressed debt of banks and the manage according to the market.

“The intention was to acquire high-value non-performing assets (NPAs) from banks and place them with an entity that will take appropriate action to affect recovery/resolution. It would also help banks focus and concentrate on their core function of new landing. The repossession of assets worth Rs 2 lakh crore has been considered in a phased manner,” said Jyoti Prakash Gadia, MD, Resurgent India.

With a combination of post-Covid moratorium and clawbacks, there was an actual decline in NPAs from Rs 8.4 lakh crore in 2020 to Rs 7.8 lakh crore in 2021. “However, the pandemic has had a negative impact on certain sectors such as tourism, aviation, entertainment and private employment/salary. Retail NPAs should therefore increase in addition to the most affected sectors, which could require a special stimulus package,” said Gadia.

The government has approved a 5-year guarantee of up to Rs 30,600 crore for security receipts to be issued by NARCL as non-monetary consideration on the transfer of NPAs. This will address banks’ and RBI’s concerns over additional provisioning, an analyst said.

Banks that transfer their distressed assets will get 15% of the value in cash and 85% in the form of marketable securities receipts. The government guarantee will cover the difference between the face value of the security receipts and the realized value of the assets when they are ultimately sold to potential buyers. The government guarantee, valid for five years, helps improve the value of security receipts, their liquidity and their negotiability. A form of contingent liability, the guarantee does not imply any immediate outflow of funds for the State.

“NARCL has commenced operations and the sale of the banks’ distressed debt to NARCL is expected to have a positive impact on the banks’ books and operations. The impact would be seen by PSBs in FY23, and a positive proposal in terms of government guarantee/infusion of funds into the wrong bank can be expected in the next budget,” Brickwork Ratings said in a statement. report.

With so many CRAs in the private sector, the reason for a separate national CRA was the extremely slow process of selling to private CRAs due to valuation issues, slower and longer resolution given the fragmentation of ARC assets/legal hurdles and potentially huge initial capital. / cash needed to buy big NPA, he said.

Bankers have also been questioned by auditors and central agencies over transactions, which have largely clogged the decision-making process and hindered the transfer/resolution of NPAs. Thus, a national ARC, with a different legal and operational structure and government support, waivers and financial support, was essential to break the chain.

“We have seen the economic recovery this year, but it is necessary to hang on to it and not let it (the momentum) run out of steam. The Center is also in talks with states to ensure that infrastructure projects are deployed on the ground, ”the official said. Calls for tenders for projects under the NIP are expected to accelerate next year. Even though capital spending has been lower than forecast so far, the government expects it to approach the Rs 5.54 lakh crore budgeted for 2021-22 by the end of March.

“The objective of the budget is to maintain a restrictive fiscal position but with the necessary push on spending where it is needed, especially infrastructure projects, which can be done by redefining spending priorities,” said another government official, indicating that the government could opt. for a more moderate fiscal consolidation compared to the current level of 6.8% of gross domestic product.

As a key step in stimulating private sector investment in the infrastructure sector, the government should remove the directive to seek bank guarantees for infrastructure projects and possibly replace them with bonds. This has been one of the main demands of the chambers of industry. ahead of budget. With typically 20% of funds tied up in bank guarantees, this move could potentially free up nearly Rs 8 lakh crore of private sector funds on all NIP projects, according to industry estimates.

“(Among our various budget suggestions), we said to have bonds instead of bank guarantees, because as you spend more on infrastructure, and if you want these kind of jobs and you have to provide bank guarantees, it is a lot of unnecessary costs in the system. The United States and places like that have bonds, just like insurance that you have, that can be kept in case someone goes back on their contracts, ”CII TV chairman Narendran told The Indian Express.

Bank guarantees “unnecessarily increase the costs of the project and will be the main obstacle to the rapid completion of construction under the NIP … It is time to go for revolving bank guarantees or insurance bonds,” said the FICCI in its list of budget suggestions for finance. ministry.

Some of the key reform measures in this year’s budget, particularly with respect to the privatization of two state-owned banks and some key government enterprises, will carry over into next year.

The Centre’s capital expenditure has been slower than the target rate indicated in the budget. Between April and November, the first eight months of this fiscal year, the government committed 49.4% or Rs 2.73 lakh crore of its total budget target for capital spending.

With nominal gross domestic product (GDP) hitting a 17.6% higher level in the first advance estimates released on Friday than the budget level of 14.4% for fiscal year 22, the government is expected to have a larger margin budgetary. Economists said, however, that given the pace of government spending below budget so far for this fiscal year, it is possible that this additional fiscal space could be useful for presenting a smaller budget deficit rather than being used to launch other expenditure during the last quarter of fiscal year 22. The Ministry of Finance has held review meetings with states, departments and ministries to review the status of capital expenditure and the implementation of infrastructure projects.

The 2021-22 Union budget provided for a down payment of Rs 5.54 lakh crore. The government had also earmarked over Rs 2 lakh crore for states and autonomous bodies for their capital spending. The National Infrastructure Pipeline was launched in 2020 with a projected infrastructure investment of around Rs 111 lakh crore in fiscal year 2020-2025 to build infrastructure across the country. The PIN was launched with 6,835 projects, which was then extended to over 9,000 projects covering 34 sub-sectors.

Through PTI

MUMBAI: The threat of a third wave of COVID-19 poses high risks to the quality of banks’ assets, especially the restructured loan portfolio, according to a report by the national rating agency ICRA. In addition to bad debts, lenders are likely to face challenges on the profitability and credit fronts due to the disruption caused by the Omicron variant of the coronavirus, the agency said.

He also sees a 15 to 20 basis point increase in borrower restructuring requests. The agency’s vice president (financial sector notes) Anil Gupta said: “With the increased spread of the new COVID-19 variant, i.e. Omicron, there is a strong possibility that a third wave is occurring. “

He added that a third wave poses a high risk to the performance of borrowers who have been affected by the previous waves and therefore poses a risk to the trend of improving asset quality, profitability and creditworthiness. .

Gupta also said banks have restructured most loans with a moratorium of up to 12 months. “Therefore, the restructured book is expected to start coming out of the moratorium from the fourth quarter of fiscal 2022 and the first quarter of fiscal 2023,” he said. During the two waves of the pandemic, the Reserve Bank of India (RBI) announced the 1.0 and 2.0 resolution framework to provide relief to borrowers and banks.

With the gradual restructuring under the COVID 2.0 program, the overall standard restructured loan portfolio for banks has grown to 2.9 percent of standard advances as of September 30, 2021 (two percent as of June 30, 2021), according to the report.

Most of these restructurings concern borrowers impacted by COVID 1.0 and 2.0. The agency said restructuring under the Covid 1.0 program is estimated at 34% (or Rs 1 lakh crore) of the total standard restructured loan portfolio of Rs 2.85 lakh crore for banks as of September 30, 2021.

And, under COVID 2.0, it is estimated at 42% or Rs 1.2 lakh crore. The balance included micro, small and medium enterprises (MSMEs) and other restructurings, he said.

The report adds that banks implemented around 83% of the total requests received under COVID 2.0, leading to an overall restructuring of Rs 1.2 lakh crore in loans until September 30, 2021. “As requests restructuring can be implemented until December 31. 2021 (as part of the COVID 2.0 agenda), the incremental restructuring could increase by 15 to 20 basis points from current levels, ”the agency said.

Gupta added that the third wave could revive demand for restructuring loans, including those that were already restructured. “In such a case, the visibility on the performance of the restructured loan portfolio, which was previously expected for fiscal year 2023, can now be expected for fiscal year 2024, as the moratorium on existing restructured loans could be extended”, did he declare.

According to ICRA estimates, 60 percent of the total restructuring of Rs 1 lakh crore under Covid 1.0 was represented by business and the balance (or Rs 0.4 lakh crore) by retail and of MSMEs. “Therefore, the restructuring under COVID 2.0, which was available to retail borrowers and MSMEs, was 3 times the restructuring under COVID 1.0,” he said.

The report states that the restructuring also led to the upgrade of accounts, which would have slipped earlier. This, coupled with the strong recovery of Dewan Housing Finance Ltd (DHFL) in the second quarter of fiscal 2022, has led to the highest recoveries and upgrades for banks in the past three years.

As a result, despite the high gross slippage rate of 3.2 percent in the second quarter of fiscal 2022 (3.5 percent in the first half of fiscal 2022 and 2.7 percent in fiscal 2021), gross and net non-performing advances (NPAs) remained on a downward trend, he mentioned.

DUBLIN, 23 December 2021 / PRNewswire / – The “Indian Commercial Vehicle Outlook” report has been added to ResearchAndMarkets.com offer.

Since 2017, India’s commercial vehicle industry has adapted to regulations that focus on construction quality and safety, exhaust emission reduction and asset traceability; the goal is to bring vehicles up to global standards. OEMs have made significant investments to adhere to these standards and improve supply chain efficiency.

Heads of government want to reduce india dependence on imported oil and adopt cleaner modes of transport. The government-mandated shift from Bharat Stage IV (BSIV) emission standards to the stricter BSVI regime by april 2020 reducing carbon emissions and improving air quality has resulted in a 10-15% increase in commercial vehicle costs due to changes in engine architecture and requirements for new on-board diagnostics. For fleet operators, this means a longer wait to realize a return on investment.

Electrification is a longer term goal

The COVID-19 pandemic dealt another blow to commercial vehicle sales in fiscal 2021 after a sharp decline in the previous one due to a combination of other factors. Government-imposed national lockdowns and other travel restrictions have contributed to a decline in freight transport; lower fleet utilization rates have increased operators’ total cost of ownership and reduced profitability.

As commercial vehicle buyers consider ways to reduce operating expenses and maintenance costs, they look for ways to deliver more value per liter of fuel used, tonne of cargo transported, or kilometer driven and are turning to vehicles with connectivity, comfort and convenience. features to maximize uptime. Other headwinds and cost reduction opportunities can cause owners and operators to return to dealerships to place orders for new vehicles earlier than expected.

Main topics covered:

1. Strategic imperatives

• Why is it more and more difficult to grow taller?
• Strategic imperative 8
• The impact of the three main strategic imperatives on the Indian commercial vehicle industry
• Growth opportunities fuel the engine of the growth pipeline

2. Industry overview

• Industry overview
• The impact of Covid-19 on the industry
• Other Factors Affecting the Industry
• Review of forecasts for 2021
• Predictions for fiscal year 2022
• Sales forecasts

3. Analysis of growth opportunities

• Presentation of PESTEL
• Trend analysis
• Powertrain adoption strategies
• Switch to natural gas
• Factors influencing the transition to the electric vehicle
• Telematics in commercial vehicles
• Regulatory impact
• Scrapping policy
• Key areas of intervention for manufacturers

4. Universe of growth opportunities

• Growth Opportunity 1 – Last Mile Delivery
• Growth Opportunity 2 – Electrification
• Growth Opportunity 3 – Advanced Connectivity and Security Features
• List of exhibitions

For more information on this report, visit https://www.researchandmarkets.com/r/tlkhk2

Media contact:

Research and markets
Laura Wood, senior
[email protected]

For EST office hours, call + 1-917-300-0470
For USA / CAN call toll free + 1-800-526-8630
For GMT office hours, call + 353-1-416-8900

US Fax: 646-607-1907
Fax (outside the United States): + 353-1-481-1716

View original content: https://www.prnewswire.com/news-releases/india-commercial-vehicle-outlook-2021-2022-factors-influencing-the-electric-vehicle-transition-301450386.html

SOURCE Research and Markets