Bandhan Bank Dips 13% In 2 Days; Analysts See Upto 59% Upside

[ad_1]

Read More/Less


Increased provisions and deterioration in asset quality

In the December-ended quarter, the bank took accelerated additional provision on standard assets amounting to Rs 1,000 crore on account of COVID-19.

Bandhan Bank reported a sharp deterioration in asset quality trends with pro-forma gross non-performing assets (GNPA) ratio increasing to 7.1% while collection efficiency in the microfinance institution (MFI) portfolio in its core state of Assam has witnessed a sharp decline, Motilal Oswal Securities said in results update.

“The bank has made higher COVID-related provisions of Rs 1,000 crore during Q3FY21, pre-dominantly towards rising stress in Assam, thus taking additional provisions to 3.6% of loans to manage higher delinquencies in coming quarters,” the brokerage added.

Operating performance remains strong and continues to demonstrate strong deposit performance, led by retail deposits.

The brokerage further said while maintaining a ‘neutral’ rating on the stock on the back of rising asset quality concerns.

Emkay Global bullish on the stock

Emkay Global bullish on the stock

Emkay Global sees an upside of 59% in the share price of Bandhan Bank from its current market price of Rs 315. The brokerage has set a target price of Rs 500 for the bank in the next 12 months.

“We believe that the MFI business is inherently prone to disruptions, be it political or natural adverse events. Being well cognizant of these eventualities, the Bandhan Bank has adopted a strategy to diversify geographically in the MFI business and venture into other products, including relatively secured mortgages, gold loans and so on. However, this transition will take time,” says Emkay Global Financial Services.

The brokerage adds that the bank has been building provisioning buffers on the back of its strong operating profitability to absorb asset quality accidents and reduce earnings volatility.

Fresh blow, but not unexpected

Fresh blow, but not unexpected

Kotak Institutional Equities said Bandhan Bank’s performance on the asset quality front was a “fresh blow, but not unexpected”.

“The long-term growth opportunity, especially outside of microfinance, remains intact, and the bank’s strong liability profile and superior cost structure give it an advantage over its peers,” the brokerage firm said in a note.

The brokerage has cut its price target on the stock by 6%, but retained its ‘add’ rating as it remains positive on the lender’s long-term prospects.

Meanwhile, CLSA Asia-Pacific Markets said that Bandhan Bank’s pre-provision operating profit is the highest among banks, at 9% of the loan book, and will provide a cushion against surging bad loans, but it expects it to struggle on the earnings front in the near-term.

The brokerage firm downgraded the stock to ‘outperform’ from ‘buy’, and cut its price target by a steep 12% to Rs 390.



[ad_2]

CLICK HERE TO APPLY

Bandhan Bank Dips 13% In 2 Days; Analysts See Upto 59% Upside

[ad_1]

Read More/Less


Increased provisions and deterioration in asset quality

In the December-ended quarter, the bank took accelerated additional provision on standard assets amounting to Rs 1,000 crore on account of COVID-19.

Bandhan Bank reported a sharp deterioration in asset quality trends with pro-forma gross non-performing assets (GNPA) ratio increasing to 7.1% while collection efficiency in the microfinance institution (MFI) portfolio in its core state of Assam has witnessed a sharp decline, Motilal Oswal Securities said in results update.

“The bank has made higher COVID-related provisions of Rs 1,000 crore during Q3FY21, pre-dominantly towards rising stress in Assam, thus taking additional provisions to 3.6% of loans to manage higher delinquencies in coming quarters,” the brokerage added.

Operating performance remains strong and continues to demonstrate strong deposit performance, led by retail deposits.

The brokerage further said while maintaining a ‘neutral’ rating on the stock on the back of rising asset quality concerns.

Emkay Global bullish on the stock

Emkay Global bullish on the stock

Emkay Global sees an upside of 59% in the share price of Bandhan Bank from its current market price of Rs 315. The brokerage has set a target price of Rs 500 for the bank in the next 12 months.

“We believe that the MFI business is inherently prone to disruptions, be it political or natural adverse events. Being well cognizant of these eventualities, the Bandhan Bank has adopted a strategy to diversify geographically in the MFI business and venture into other products, including relatively secured mortgages, gold loans and so on. However, this transition will take time,” says Emkay Global Financial Services.

The brokerage adds that the bank has been building provisioning buffers on the back of its strong operating profitability to absorb asset quality accidents and reduce earnings volatility.

Fresh blow, but not unexpected

Fresh blow, but not unexpected

Kotak Institutional Equities said Bandhan Bank’s performance on the asset quality front was a “fresh blow, but not unexpected”.

“The long-term growth opportunity, especially outside of microfinance, remains intact, and the bank’s strong liability profile and superior cost structure give it an advantage over its peers,” the brokerage firm said in a note.

The brokerage has cut its price target on the stock by 6%, but retained its ‘add’ rating as it remains positive on the lender’s long-term prospects.

Meanwhile, CLSA Asia-Pacific Markets said that Bandhan Bank’s pre-provision operating profit is the highest among banks, at 9% of the loan book, and will provide a cushion against surging bad loans, but it expects it to struggle on the earnings front in the near-term.

The brokerage firm downgraded the stock to ‘outperform’ from ‘buy’, and cut its price target by a steep 12% to Rs 390.



[ad_2]

CLICK HERE TO APPLY

What to expect after filing returns

[ad_1]

Read More/Less


Arjun filed his income-tax return (ITR) in July 2020 by himself, paid the taxes due and was so delighted that he had discharged his civic responsibilities that he added the ‘Proud Filer’ badge to his Facebook profile. In January 2021, he received a demand of ₹5 lakhs for not responding to several notices received from the tax department. He approached his tax adviser, Krishna who guides him on the general steps to be taken after filing the ITR.

Arjun: What is the first thing I should do once

I file the ITR?

Krishna: After the ITR is filed, it should be e-verified, or a self-attested copy of the ITR-V (acknowledgement) should be sent to the Central Processing Centre, Bangalore within 120 days, failing which it shall be treated as an invalid return.

Arjun: What are the initial notices sent by the

department?

Krishna: If the ITR is not accompanied by relevant forms or income proofs (as per Form 26AS),, then the ITR may be treated as defective and notice under Section 139(9) will be sent requesting you to rectify the defect. You can respond by logging into the e-filing portal. If you agree to the defects, a corrected ITR should be filed.

If not, the reasons for disagreeing should be submitted. If you do not respond within the given time, the ITR would be considered invalid.

When there are arithmetical errors or inconsistent information across forms etc., a notice under Section 143(1)(a) is sent, requesting you to respond within 30 days. You can respond by clicking on the ‘e-Proceedings’ tab and selecting the appropriate notice. If you do not agree to the adjustment, you can select ‘Disagree’ and provide reasons.

Arjun: Should I respond to an intimation order?

Krishna: Upon processing of the ITR, the department issues an intimation order under Section 143(1). The intimation order shows a comparison of income reported by you and the one computed by the department. You should check if the amount computed by the department matches with the ITR filed. If there are no differences, it means that the return was processed without any errors and no action is required to be taken in such a case.

If the return is processed with certain differences with additional demand, the same can be addressed by clicking on the ‘e-File tab’, selecting ‘Response to Outstanding Demand’ and then selecting suitable option listed. If you agree with the demand, the tax has to be paid online. If you do not agree with the demand (either partially or completely), relevant reasons and documents can be submitted.

Arjun: How is a refund processed?

Krishna: Once the ITR is processed, the refund is issued after checking for outstanding demand if any, from earlier years. If there is an outstanding demand, a notice under Section 245 is issued to adjust the refund due. If the demand details are correct, you can agree to such adjustment.

If not, you can disagree and furnish relevant reasons. The response should be filed within 30 days of receipt of notice, failing which the outstanding demand will be adjusted against the refund. If status of refund is “paid”, you can check if the refund credited is appropriate along with interest, if any. If the status of refund is “unpaid”, it means the refund was processed but not credited to the bank account due to incorrect account details, non-linking of PAN with bank account, etc. On rectifying these issues, you can submit a refund reissue request by clicking ‘Refund Reissue Request’ in ‘My Account’.

Arjun: Is there anything else I should be aware of?

Krishna: In the current digital era, most of the correspondences shared by the department are via email or SMS. It is, therefore, imperative to provide correct and active contact details so that these critical intimations are not missed. Further, it is important to respond to the intimations in a timely manner to avoid any adjustments or demand.

Mukesh Kumar is Director and

Swetha is Manager with M2K Advisors

[ad_2]

CLICK HERE TO APPLY

Is mental illness cover worth the money?

[ad_1]

Read More/Less


While all health insurance companies were mandatorily required to cover mental ailments from 1 October 2020, the experience of those suffering from mental conditions and having an insurance cover, is different. Recently, a reader wrote to us saying that public sector health insurers still have mental illnesses under exclusion list and are not offering coverage.

When we checked, we found he was right. Websites of insurers – United India Insurance Company and the New India Assurance Company, had psychiatric and psychosomatic disorders in the exclusion list.

The IRDAI’s mandate to treat mental illnesses at par with physical ailments and remove it from exclusions, has not been implemented by all insurers.

If you are concerned about mental ailments (including depression, bipolar disorder, schizophrenia, anxiety disorders, psychotic disorder and others) and related expenses, do your homework before you sign up for a health insurance policy – go through the policy document and ensure that it covers hospitalisation due to psychological disorders and mental illnesses.

One thing to note is that treatment for mental ailments in most cases is offered as OPD (Out-Patient Department) consultation. Given that most health insurance plans do not cover OPD expenses, and require minimum 24 hours hospitalisation, claims on consultation in OPD, gets rejected.

Cover for mental ailments

To see if at least the private insurers have incorporated coverage for mental ailments in their health policies, we checked a few big players. The policy document for HDFC ERGO’s my:health Suraksha specifically mentions coverage for hospitalisation expenses (it is silent on cover for OPD consultations) to treat mental ailments.

In ICICI Lombard’s Complete Health Insurance plan, mental illness in not in the exclusion list; the policy covers OPD expenses, for additional premium. In Star Health’s Medi Classic Insurance Policy, if the insured person is diagnosed with psychiatric or psychosomatic disorder for the first time and hospitalized for a minimum period of five consecutive days, then the company will pay hospitalization expenses up to the sum insured.

In Manipal Cigna Health Insurance’s ProHealth plan, there is cover for expenses on mental ailments; the policy brochure, though, does not delve into details.

If you are looking for insurance policies that give OPD covers, so that you can claim for OPD treatments and consultation for mental illness, then ICICI Lombard’s Complete Health Insurance plan and Max Bupa’s GoActive plan/Health Premia plan can be considered.

While GoActive covers OPD consultations (with cap on number of consultations), HealthPremia covers OPD treatment (with cap on claim at ₹50,000). Digit’s health insurance plans provides cover for mental illnesses. If the OPD add-on is opted for, then consultations and therapies under OPD are covered too. However, note that this cover comes with co-pay (for first two years) requirement and the maximum benefit one can avail is ₹ 5,000.

Are OPD covers worth it?

OPD covers, when offered either as in-built in the policy or sold as separate riders, are expensive as insurers are certain that the person who buys the cover is going to make claims on it, and there are limited means to cross-check the medical bills they would provide.

So, for the amount of sum insured (SI) they offer, the premium would almost be 70-75%; with section 80D benefit under the Income Tax Act, the asking price will be 50% of the benefit given.

With OPD covers, you also need to note that many a times, the claim will be settled by reimbursement and cashless benefit will not be given. You would also have to note that OPD policies mostly do not cover cosmetic treatments and expenses on vitamins and tonics unless forming part of treatment for injury or disease and expenses on inoculation or vaccination (except for post–bite treatment and for medical treatment for therapeutic reasons).

Keep some free cash with you always for medical emergencies. Even if you have health insurance with OPD cover for mental ailments, the sum insured under the OPD cover may not suffice.

[ad_2]

CLICK HERE TO APPLY

Tax-free vs tax-saving instruments – The Hindu BusinessLine

[ad_1]

Read More/Less


A coffee time conversation between two colleagues leads to an interesting explainer on tax jargons.

Tina: Have you filed your investment proofs for FY21 yet? The deadline set by the HR team is just around the corner.

Vina: No, I am yet to invest in tax-free instruments for this year.

Tina: What? You mean tax- saving instruments?

Vina: Yeah potato, po-tah-toh! Aren’t they the same thing said differently?

Tina: No. While both tax-free and tax-saving instruments ultimately help in lowering your tax outgo, they aren’t the same.

Vina: Why? What is the difference?

Tina: If you want to save tax on interest or any other incomefrom your investments, you should be investing in a tax-free instrument.

Tax-free bonds issued by State-owned companies such as PFC, NHAI, HUDCO and REC, with a maturity of 10 years or more, are one such example.

You can buy these bonds either during their primary issue or from the secondary market once they get listed.

The existing issues of these bonds currently pay interest rates in the range of 7.6 to 9.0 per cent per annum for varying maturities, and the entire interest income is exempt from tax. Hence, the term ‘tax-free’.

Vina: Oh cool! But in this case, my tax savings are limited only to the extra interest income that I pocket by not having to pay any tax on it, right?

Tina: Yes! If you want to save tax on your existing income, like in your case, you should opt for investing in tax-saving instruments.

Say, your income comes to ₹5 lakh a year. You can invest in certain instruments specified under Section 80C of the Income Tax Act and claim deduction of up to ₹1.5 lakh a year. These include five-year term deposits with banks or the Post Office, deposits in Sukanya Samriddhi Account, contribution to the Public Provident Fund and subscriptions to certain notified NABARD bonds. .

Since investing in these instruments reduces your taxable income and so your tax liability, these are labelled as “tax-saving”.

Remember that income from these tax-saving instruments may or may not be exempt from tax.

Vina: All right, now I get it. They aren’t same at all.

Tina: Yes. Tax-saving instruments help reduce your overall income that is subject to tax, to the extent of investment made. On the other hand, tax-free instruments help you only save tax on the interest income from such instruments.

Vina: Wow, that’s simply put!

[ad_2]

CLICK HERE TO APPLY

How you should evaluate returns from bonds

[ad_1]

Read More/Less


Retail investors have flocked to the ₹5,000-crore bond offer from Power Finance Corporation (PFC), prompting an early closure. One hopes they’ve applied with a good understanding of how this bond compares to other fixed-income avenues. The offer did have some attractive options for retail folks. But reports that did the rounds of the mainstream and social media suggested that when it comes to evaluating bond returns, it is quite okay to compare apples not just to oranges, but also to grapes.

Mind the risks

Company officials promoting the PFC bond were eager to explain how it offered better returns than the National Savings Certificates (NSC). This isn’t strictly true. But even if it were, higher rates on the PFC bond, far from making it more attractive, would indicate higher risks to your capital. In the bond market, high interest rates correlate directly to credit risk.

As a key lender to the troubled power sector with gross NPAs of 7.4 per cent in FY20, PFC’s business carries a fair degree of risk. This is mitigated by the Government of India owning 55.9 per cent stake in PFC, lending it a quasi-government status. The PFC bond is a riskier instrument than the NSC because the latter is Central government-backed and doesn’t require you to take on any business risks.

When evaluating an NCD, it is best to see how much of a spread (extra return) it is offering over a risk-free instrument, which is a Central government bond. Today, the market yield on the five-year government bond is 5.3 per cent. At 5.8 per cent, the five-year PFC bond offered a 50-basis point spread over the G-Secs.

At 6.8 per cent, the NSC, which carries lower risks than PFC, offers 150 basis points (bps) over the G-sec, making it a better choice. The average spreads on five-year AAA, AA and A rated bonds over comparable government securities are currently 37 bps, 104 bps and 300 bps, respectively.

Check tenure

Bank fixed deposits tend to be the default option for investors seeking safety. So, many comparisons have been made between the PFC bonds and bank FDs. Most of these are simplistic comparisons of 5- and 10-year PFC bonds (coupons of 5.8 per cent and 7 per cent) with SBI’s 1- to 5-year deposit rates (5-5.4 per cent).

But it is plain wrong to compare rates on a 1-5 year instrument with a 5-10 year instrument. In the fixed-income market, investors are always compensated for longer holding periods with higher rates, given the time value of money and higher business uncertainties that come with lending for the longer term. If you would really like to compare PFC’s bonds with bank FDs, you would be better off looking at similar tenures. PFC’s three-year bond offered 4.8 per cent against the 5.3 per cent on SBI’s three-year FD. Its five-year bond will fetch 5.8 per cent against 5.4 per cent on the SBI FD.

Even then, the decision on the tenure of fixed-income security what you should buy should be based on your view on how interest rates will move in future and not on absolute rates.

If you buy a 10-year bond today and rates move up in the next 2-3 years, you’d risk capital losses if you try to switch to better-rated instruments.

Beware of market risks

Some have compared PFC bonds to debt mutual funds and concluded the latter are better.

Debt mutual funds which invest in high-quality bonds (corporate debt funds and PSU & banking funds) have delivered category returns of over 9 per cent for one year and 8 per cent for three and five years.

But comparing trailing returns of debt funds to the future returns on PFC bonds is akin to zipping on a highway using the rear-view mirror.

Returns on debt funds in the last one, three and five years have been boosted by falling rates triggering bond price gains.

Should rates bottom out or begin to rise, these gains can swiftly turn into losses. To gauge future returns on debt funds, the current yield to maturity (YTM) of their portfolios and their expense ratios are more useful.

Current YTMs of corporate bond funds are in the 4.5-5.5 per cent range with annual expenses at 0.4-1 per cent for regular plans, pointing to returns of 3.5-5.1 per cent from here, without budgeting for rate hikes. PFC bonds, by offering you a predictable 5.8 per cent for five years, are a better bet if you think rates are bottoming out.

[ad_2]

CLICK HERE TO APPLY

This is the peak in terms of NPAs and slippages: YES Bank chief

[ad_1]

Read More/Less


Private sector lender YES Bank will focus on recoveries and opening CASA accounts and believes that Covid-related stress on its books would start easing in coming quarters.

“Our understanding is that this is the peak in terms of non-performing assets and slippages and now it would start coming down,” said Prashant Kumar, Managing Director and CEO, YES Bank.

Three factors

Kumar attributed this to three factors –improving collection efficiency, lower cheque bounce rates and throughput through accounts.

Also read: YES Bank posts Q3 net of ₹151 crore

“Collection efficiency is now at 96 per cent as against pre-Covid level of 97 per cent. The cheque bounce rate, which was normally at seven per cent to eight per cent rose to 18 per cent during Covid and is now at nine per cent. Through put through accounts has also reached almost pre-Covid levels. It means there is good churning in accounts, incidence of bounce backs are not there,” he told BusinessLine in an interaction after the bank’s third quarter results.

For the quarter ended December 31, 2020, YES Bank posted a standalone net profit of ₹150.71 crore with robust growth in net interest income. However, gross NPAs stood at 15.36 per cent of gross advances with proforma gross NPAs at nearly 20 per cent. The bank has also invoked loan restructuring of ₹8,062 crore.

Kumar expressed confidence that the bank’s Covid-related provisioning of ₹2,683 crore will take care of the restructuring invoked and also likely slippages.

On turnaround of the bank

When asked about the turnaround of the bank since the reconstruction scheme, Kumar expressed satisfaction in terms of the business strategy but highlighted the need for higher recoveries and taking care of the pandemic impact on the loan book.

“Turnaround in the sense of the business strategy and going on that path is very clear. But one part of the turnaround is the recovery from existing NPAs. The real turnaround story will be complete when you will recover a substantial portion. The impact of pandemic on the loan book and how to take care of it in the next 12 months,” he said.

The private sector lender has made recoveries of about ₹3,000 crore and has a target of ₹5,000 crore for the fiscal year.

“The P&L impact of the recovery was about ₹2,500 crore. It is very positive. We would like to touch the target of ₹5,000 crore and hopefully be near it,” he said.

As part of its deposit mobilisation efforts, YES Bank is also targeting opening one lakh CASA accounts per month. In December, it opened 85,000 accounts.

[ad_2]

CLICK HERE TO APPLY

With 8.5% Return Should I Invest In This Fund For PPF-like Benefits?

[ad_1]

Read More/Less


Investment

oi-Vipul Das

|

Public Provident Fund is a prominent choice for long-term debt investment, providing assured returns at comparatively higher interest rates along with income tax gain under section 80-C and tax-free maturity amount and interest. That being said, there is another similar enticing investment opportunity promising higher interest that most individuals can’t ignore if they are salaried individuals. Voluntary Provident Fund, also referred to as the Voluntary Retirement Fund, is an extension to the Employee Provident Fund which provides comparable privileges as PPF, but with an additional benefit of higher interest rate that is much stronger than PPF. At present, the interest rate on VPF and EPF is 8.5 percent, while for the current quarter, the government has kept the PPF rate at 7.1 percent. In comparison to both liquidity and yields, VPF outperforms PPF. The interest rate available to the VPF is the same as that of the EPF, and is usually higher than the interest rate given by the PPF. The EPF interest rate for FY20 is set at 8.5 per cent as of now, respectively.

With 8.5% Return Should I Invest In This Fund For PPF-like Benefits?

Why should I consider VPF?

If your company is authorized by the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, your EPF account is contributed up to 12% of your basic salary+DA (dearness allowance) per month. There is, though, a voluntary contribution clause over and above the standard 12% of your basic salary. Per financial year, you can contribute up to 100% of your basic wage plus DA to the voluntary provident fund, plus your EPF contribution. The VPF investments generate the same benefit received from the contributions of the employee and the employer.

This is the only reason that VPF is regarded as a very desirable investment option. 8.5 percent of the current interest in VPF investments is far higher than that of the Public Provident Fund (PPF). The Government of India periodically changes the rate of interest provided by the EPF, based on different considerations. The VPF contributions will also have the same lock-in period as the EPF, as the VPF contributions are deposited in the employees’ EPF account. Pursuant to the provisions of Section 80C of the Income Tax Act, 1951, VPF contributions rendered to EPF accounts are liable for tax deductions. You can therefore contribute as much as you need, but the tax exemptions open to taxpayers are limited to Rs 1,50,000 per year, and you can save tax of up to Rs 46,800 per year.

Premature withdrawal facility

As we all know that the tenure of VPF is the same as EPF. That being said, if one withdraws from his or her VPF account before the end of five years, the balance withdrawn will be taxable in compliance with his or her tax slab, if the individual resigns or retires from his employment. That being said, for defined purposes, such as buying a property, reimbursing a home loan, health needs, schooling or the marriage of children, you can use non-refundable advances against your EPF and VPF deposits. The withdrawal amount will rely on the purpose that the employee makes use of such advances, and years of employment. You can withdraw 100 percent of your EPF balance if you leave your job and stay unemployed for two months, and this will also cover your VPF savings.

How can I open a VPF account?

To fill out a VPF registration form, you just have to contact your HR and your account will be triggered which is no doubt a hassle-free process. Unlike PPF as the contribution amount is automatically deducted from your salary you don’t have to remember for making a deposit towards your VPF account each year. In order to increase or decrease your contribution towards VPF from your salary you can request your employer in written application anytime as per your convenience. In comparison, you won’t have to do any documentation work to make advantage of the VPF tax benefits. It will be determined automatically on Form-16 by your employer.

Conclusion

Your retirement is miles away if you are a salaried person between the age group of twenties or thirties. If you invest in equities, you can create a bigger retirement benefit but here you may face risks. But traditionally, relative to other fixed income vehicles like PPF, EPF and VPF, equities have often returned better yields. That being said, if you are searching for a risk-free long-term retirement alternative as part of the debt investment in your portfolio, you should consider VPF and PPF and the latter between the two. For investors near to retirement, VPF is also a great option to boost their debt holdings. Even if VPF was designed to provide the salaried group with post-retirement financial stability, equity mutual fund holdings are regarded to be the strongest retirement alternative for the general public. VPF contributions may be considered as part of their asset allocation approach by those entering their retirement age. These investors’ VPF contributions will boost their retirement portfolio’s financial flexibility thus receiving better returns if compared to bank FDs and other small savings schemes.



[ad_2]

CLICK HERE TO APPLY

DCB Bank Q3 profit flat at ₹96.21 crore

[ad_1]

Read More/Less


DCB Bank reported a net profit of ₹96.21 crore for the third quarter of the fiscal, which was almost the same as ₹96.7 crore in the same period last fiscal.

The bank’s net interest income increased by four per cent to ₹335 crore for the quarter ended December 31, 2020 as against ₹323 crore a year ago.

Non-interest income increased by 66 per cent to ₹154 crore.

Provisions rose to ₹147.71 crore from ₹59 crore.

In a statement on Saturday, DCB Bank said that apart from provisions for gross non-performing assets, it is holding provisions as on December 31, 2020 of ₹229 crore for Covid-related stress, ₹56 crore for specific standard assets, ₹47 crore for restructured standard assets, ₹106 crore as floating provisions and ₹81 crore for standard assets provisions.

“This amounts to 2.05 per cent of net advances as at December 31, 2020,” it said.

It also reported ₹687 crore as net restructured standard advances including Covid-19 relief, largely contributed by mortgages, commercial vehicles and SME and MSMEs.

The gross NPA as on December 31, 2020 was at 1.96 per cent and net NPA was at 0.59 per cent as against 2.15 per cent and 1.03 per cent, respectively, on December 31, 2019.

If the bank had classified borrowers accounts as NPA after August 31, 2020, its gross NPA ratio and net NPA ratio would have been 3.70 per cent and 1.92 per cent, respectively.

[ad_2]

CLICK HERE TO APPLY

Readers’ Feedback – The Hindu BusinessLine

[ad_1]

Read More/Less


This is in the context of the article ‘Growth opportunity stocks (PEG Screener)’ that was published on January 17. PEG should not be taken in isolation.

––NS Raman

BusinessLine Research Bureau says: Agreed! We have added a couple of other parameters, too, to our screener. Besides, this is only a preliminary short-list for investors to do further research on.

This is in the context of the ‘Statistalk’ titled ‘Equity MF investors continue to book profits’ that was published on January 20. Nicely summerised report.

––@Equiideas09

This is in the context of the article ‘Take note of EPFO Pension Scheme’ that was published on January 17. Excellent article, Ms Satya.

––KE Raghunathan

This is in the context of the article ‘Simply put: How cashless garage facility benefits you’ published on January 17. A well-written story; very easy for common man’s understanding. The conversational style is really effective to take the message to the readers.

––Narayanan

I have been subscribing to BL for a long time. The Portfolio edition makes every Sunday very interesting.

––AS Nellaiyappan

I am a regular subscriber of BusinessLine and am very glad to read your BL Portfolio as well. It is very informative.

While thanking you for this, I would request you to write on mediclaim policies offered for senior citizens by various insurers (private as well as public sector) as I understand that most of them are hesitant to offer such policies.

––MP Parameswaran

BLRB says: Thank you for your feedback. We will strive to write on this issue in the coming weeks. Keep reading!

The newly launched Sunday edition BusinessLine Portfolio is an excellent initiative by The Hindu group. As the senior citizen population is gradually increasing, a section of the edition may please be devoted exclusively for senior citizens, covering management of retirement corpus, medical/insurance schemes, deposit/mutual fund schemes, housing schemes, FAQs on tax matters, government concessions, etc.

––Bhaskaran S

BLRB says: Thank you for your feedback. We do write for senior citizens from time to time across our pages. We will strive to do more on this front.

Success stories of individuals who created wealth by way of long-term investment in equities may be included in Portfolio. Likewise, the tragedies of persons who lost everything due to mistakes committed and excess greed will also be a good lesson for investors, especially new entrants.

The concept of PE ratio may be explained in detail so as to enable a layman to understand whether a scrip is expensive or not.

––Jose KF

BLRB says: Thank you for your feedback. We will strive to write on the topics you have suggested.

I started reading BusinessLine three years ago. The content is very useful for learning and upgrading one’s knowledge. I am very much passionate about finance. I regularly read Sunday BL Portfolio and share the content on my networks — LinkedIn, Instagram, Facebook. It will definitely help increase financial literacy of the readers.

––Baranitharan J

BLRB says: We are glad you find Portfolio content useful.

[ad_2]

CLICK HERE TO APPLY

1 20 21 22 23 24 87