Latest News | Coriander Futures Rise on Spot Demand

New Delhi, May 28 (PTI) Coriander prices on Thursday rose Rs 21 to Rs 5,755 per quintal in futures trade as speculators widened their holdings tracking firm trend in spot market.

On the National Commodity and Derivatives Exchange, coriander for June delivery went up by Rs 21, or 0.37 per cent, to Rs 5,755 per quintal with an open interest of 3,060 lots.

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Similarly, coriander for delivery in July went up by Rs 37, or 0.65 per cent, to Rs 5,715 per quintal with an open interest of 580 lots.

A firm trend in spot market and restricted supplies from producing regions pushed up coriander prices here, market analysts said. PTI SRS RUJ RUJ 05281137 NNNNas touched record highs since the beginning of the lockdown nearly two months ago, and corporates have reportedly adopted measures like wage cuts in the face of the difficulties businesses are experiencing.

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"Even if there is a disruption in the salary of 10-15 per cent, it's not going to shake the ecosystem to an extent of lending completely going through a rejig or re-evaluation," Kapil said during an online video chat with bank executives.

He, however, was quick to add that if the corporates are looking at moderation in salaries or in the increments, the same needs to be watched carefully from a prudential perspective.

There will be a rise in precautionary saving in the immediate future and discretionary spending will return to normal in the next few months, he said.

Kapil said retail lending as a whole is an under-penetrated sector in the country, which means that even in the case of a slowdown in the economy, there exists ample opportunity for small-ticket loans.

Drawing from the micro-lending segment's experiences and how it has sprung back from crises like the floods in Kerala last year or after the demonetisation to ensure that portfolio delinquencies remain low, Kapil hoped the middle-class segment will also display the same resilience in the current crisis.

On the auto loans front, where the bank is the largest vehicle financier, Kapil said there is enough scope for the original equipment manufacturers to be optimistic or positive about on the new sales front that will also help the financiers.

He explained that social distancing requirements will keep people off shared cabs or using ride-hailing apps in general, while the otherwise pragmatic public transport options will also not be patronised at least for two months.

Additionally, there is also pent up demand in the last few months and if one adds digital lending interventions which will make it convenient to borrow, there is scope for the sales to go up, he said.

Kapil, who is credited with launching the almost instant online personal loan product four years ago, said he sees similar evolution on the auto loan side as well where the entire loan taking journey goes online and the customer gets a vehicle delivered after a few clicks.

At present, HDFC Bank has digitised parts of a customer's loan availment journey and once the same is increased to 90 per cent by integrating all the stakeholders on a single platform, that is where the benefits will become visible, he said.

He also welcomed the government's interventions for the small business segment in the Rs 20 lakh crore economic stimulus package, saying capital is the bigger constraint for business and facilitating the same through various interventions like loan guarantees is more beneficial than the tax reforms which were undertaken last year in the face of GDP growth plummeting.

Kapil said the biggest learning from the crisis has been remote working and stressed that organisations will have to be agile to have innovations inculcated as a practice.

(This is an unedited and auto-generated story from Syndicated News feed, LatestLY Staff may not have modified or edited the content body)