Month: January 2021

Top 5 Tax Saving FDs With Interest Rate Up To 7.25% For Senior Citizens

Personal Finance

[ad_1]

Read More/Less


Eligibility to open a tax saving FD account

Only resident individuals and Hindu Undivided Families (HUFs) can open a tax saving FD account according to existing income tax legislation. Unless the bank allows you to do so without opening a savings account, you can open a tax saving FD account either with a bank where you currently have a savings account with or with another bank. You will be asked to follow the Know-Your-Customer (KYC) procedure in the above situation. You will be asked to have self-attested copies of your ID proof, address proof and passport size photographs in order to do the KYC procedure. Before submitting the KYC form, you must also take the original documents whose self-attested copy you are presenting with you as bank executives will do the validation.

Interest payouts

Interest payouts

On such FDs, the interest rate provided differs throughout banks. Generally banks offer cumulative interest or non-cumulative options on tax saving FDs from which you can choose from. Cumulative selection implies that by the time of maturity, interest earned on your principal will be reinvested and returned to you. Whereas the interest given by the bank will be paid to you on a monthly, quarterly, semi-annual and annual basis under the non-cumulative alternative. Higher interest rates on tax-saving FDs are typically provided to senior citizens.

Tax saving FD rates for general public

Tax saving FD rates for general public

Banks ROI in %
DCB Bank 6.75
Equitas Small Finance Bank 6.75
AU Small Finance Bank 6.50
IndusInd Bank 6.50
RBL Bank 6.40

Tax saving FD rates for senior citizens

Tax saving FD rates for senior citizens

Banks ROI in %
DCB Bank 7.25
Equitas Small Finance Bank 7.25
AU Small Finance Bank 7.00
IndusInd Bank 7.00
RBL Bank 6.90

Minimum and maximum deposit limit

Minimum and maximum deposit limit

The minimum deposit limit for the investors varies from bank to bank for a tax saving FD. One cannot, though, deposit more than Rs 1.5 lakh in these deposits in a fiscal year.

Maturity period of tax saving FD

Maturity period of tax saving FD

It is generally known to all that tax saving FDs comes with a lock-in period of 5 years. Which means that premature withdrawal is not allowed before 5 years according to the Bank Term Deposit Scheme, 2006. A tax-saving FD cannot be used as collateral or to apply for a loan if compared to regular FDs.

Account holding types

Account holding types

By individually or jointly one can open a tax saving FD. In case of joint-holder the tax benefit under section 80C will only be provided to the primary holder only.

Taxation

Under section 80C of the Income Tax Act, investment amount of up to Rs 1.5 lakh count for tax benefit in a fiscal year. That being said, you must note that in your pocket, interest paid/accrued on the principal is completely taxable. As per your tax slab interest will be applied to your income and taxed. The interest income comes under the classification of ‘Other Sources’ Income. Moreover, if the interest received reaches Rs.40,000 in a financial year from all the accounts kept with the bank, banks subtract tax at source. In order to validate the specifics of the deduction, a TDS certificate will be given.



[ad_2]

CLICK HERE TO APPLY

Leave a comment

Wish To Invest In Gold In 2021: Here Are The Watch-Outs

Personal Finance

[ad_1]

Read More/Less


Investment

oi-Roshni Agarwal

|

Gold prices for now are seeing high volatility and after having run sharply by over 20 percent in the year 2020 while there is expected upside it shall not be of the same order as in the previous year in 2021. So, if as part of your investment portfolio, you even are considering investment in gold, here are the watch-outs that you need not ignore:

Wish To Invest In Gold In 2021: Here Are The Watch-Outs

Wish To Invest In Gold In 2021: Here Are The Watch-Outs

Gold prices currently:

On expectations of a higher US stimulus package and then increasing US yield, gold is seeing huge choppiness and even as the prices have now climbed above Rs. 49000 on the MCX, one can expect more correction. On January 22, 2021, gold prices on the MCX settled lower by as much as Rs. 258 or over 0.5% at Rs. 49,190 levels per 10 gm.

Factors that may come into play in determining gold pricing going forward:

1. Biden’s dole out of a huge US stimulus package:

Now after the US Oval Office has been taken over the new US President, investors are hopeful of a larger stimulus and such a measure boost gold prices as investors take shelter into the yellow precious-metal, gold being regarded as an inflation hedge.

2. KYC measures as was announced earlier for gold jewellery buying:

Now that the KYC for jewellery buying of value less than Rs. 2 lakh has been done away with, there is seen some respite for jewellers and investors. Nonetheless any major announcement on similar front such as disclosure requirement to curb any illicit trade may instill cautious mood and may also weigh on the gold price with a dent in demand.

Interestingly, there is also reported an upward pick-up in physical gold demand, which will also boost prices.

3. Risk-on sentiment may be instilled if all goes well with Covid 19 vaccine administration:

For now the roll of corona vaccine in India has begun and if its successful, there will be faster economic recovery with more positiveness around and this may also push investors’ money into riskier assets. And for now, given the momentum in equities, some of the investors money is already finding its way into Indian equities, there has been reported an addition of 10 million new participants into the equity space on a month on month basis.

4. Dollar’s strength cannot be ignored:

With the Covid 19 led liquidity, there shall be abundance of dollar and this will weigh on the dollar’s index against its rival currencies and hence it shall be bound to decline going forward and this probably will maintain an upside in gold which behaves opposite to dollar movement. . Other indicators in favour of gold include the record-high holding of the precious metal by Central Banks, high global debt, high investment demand, higher bond prices and lower interest rate regimes,” says Subramanya SV, co-founder & CEO at Fisdom.

Now what should investors remember when considering investment into gold:

1. They should see gold as a portfolio diversifer giving the advantage of store of value as well as inflationary hedge that is seen as a safe haven in times of distress.

2. Should look gold as an asset class that helps generate high-risk adjusted return

3. Buying on dips shall be the right strategy and that too in a staggered manner to reach the optimal level in overall financial portfolio.

GoodReturns.in

.



[ad_2]

CLICK HERE TO APPLY

Leave a comment

10 Pros of Investing In Tax Saving FDs

Personal Finance

[ad_1]

Read More/Less


Investment

oi-Vipul Das

|

Those who are hunting for a secure and simple tax-saving choice a tax-saving fixed deposit can be a good bet. Tax saving FD is among the tax saving techniques which can be deposited under section 80C of the Income Tax Act in order to avoid tax. By visiting a bank, submitting the application form and cheque, one can conveniently participate in this FD. In addition, if you can hold the FD in the same bank branch on which you collect the cheque, then the transfer of money can occur easily and within a few hours the deposit can be made. Many banks also enable their net-banking facilities to invest in tax-saving FD if you have exposure to it and are relaxed using it.

This is one of the debt investments providing a tax advantage under section 80C with the shortest lock-in period of five years and providing a periodic interest pay-out alternative. Section 80C tax incentives are often provided by five-year NSCs, although they are cumulative mechanisms that do not provide periodic interest payouts. Consequently, tax saving FDs are a relatively more stable, stable and simple alternative for debt investments. A few considerations to remember before making investments in Tax- Saving FD are as follows:

10 Pros of Investing In Tax Saving FDs

  1. HUFs, resident individuals and minors are allowed to invest in a tax saving FD.
  2. A minimum amount that ranges from bank to bank can be deposited on the FD. For instance, the maximum amount in the fiscal year is Rs 1.5 lakh, which is the cap for investment in tax saving under section 80C.
  3. A tax saving FD comes with a lock-in period of 5 years, but premature withdrawals and loan against these FD’s are not permitted.
  4. With the exception of cooperative and rural banks, a person can deposit in these FD’s through either public or private sector banks.
  5. Deposit in a 5-year post office time deposit is also liable for an exemption under section 80(C) of the Income Tax Act, 1961.
  6. You can either keep these FD’s in ‘Single’ or ‘Joint’ form. In the event of a joint holding type, the tax gain is only applicable to the first owner.
  7. Under a tax saving FD scheme TDS is applicable on the interest received is taxable as per the tax bracket of the holder.
  8. The interest amount is either due on a monthly/quarterly basis or can be reinvested though. By submitting Form 15G (or Form 15H for senior citizens) to the bank, an individual can avoid TDS on the interest received. For investors, if the gross interest earned crosses Rs 40,000 in a financial year with no adjustment on taxation on the interest earned, TDS will be applicable though. Senior citizens can seek a deduction of up to Rs 50,000 on interest received from deposits under section 80TTB on the Income Tax Act.
  9. Under a tax saving FD scheme nomination facility is open. That being said, in the event of a deposit being paid for and kept by or on behalf of a minor, no nomination facility is available.
  10. If compared to the general public senior citizens are provided with higher interest rates on tax saving FDs by most of the banks. For tax saving FDs, this interest rate gap still persists. The post office does not, nevertheless, promise senior citizens with higher interest rates.



[ad_2]

CLICK HERE TO APPLY

Leave a comment

Reserve Bank of India – Tenders

Tenders

[ad_1]

Read More/Less


Reserve Bank Staff College invites e-tenders, under two part system (part I and Part II – price bid) for the work of “Annual Service Contract for Deployment of Trained Fire Safety Personnel (Fire Supervisors and Fire Guards) at Reserve Bank Staff College, Anna Salai, Teynampet, Chennai – 600018”, as per the Schedule of Tender (SOT). The tendering will be done through the e-Tendering portal of MSTC Ltd (http://mstcecommerce.com/eprochome/rbi).

The estimated cost of work is ₹ 52.50 Lakh. The work shall initially be awarded for a period of one year from April 01, 2021 to March 31, 2022 and shall be renewable as applicable and detailed in the tender document.

SCHEDULE OF TENDER (SOT):

a. e-Tender No. RBI/RBSC//465/20-21/ET/465
b. Name of Tender Annual Service Contract for Deployment of Trained Fire Safety Personnel (Fire Supervisors and Fire Guards) at Reserve Bank Staff College (RBSC), Chennai – 600 018
c. Mode of Tender e-Procurement System (Online Part I – Pre-qualification criteria and Techno-Commercial Bid and Part II – Price Bid through www.mstcecommerce.com/eprochome/rbi)
d. Date of Notice Inviting Tender (NIT) available to parties to download January 23, 2021 from 11:00 A M
e. Earnest Money Deposit ₹ 1,05,000/- (Rupees One lakh five thousand only) from each bidder through –

1. NEFT/ RTGS

Beneficiary Name: RBSC CHENNAI
IFSC: RBIS0SCPA01
Account No.: 186003001

or

2. Bank Guarantee in the prescribed format
f. Pre Bid Meeting February 03, 2021 at 11:30 A M at Conference Room, RBSC
g. Date of Starting of e-Tender for submission of on line Techno-Commercial Bid and price Bid at www.mstcecommerce.com/eprochome/rbi February 08, 2021 from 02:00 P M
h. Date of closing of online e-tender for submission of Techno-Commercial Bid & Price Bid along with EMD. February 22, 2021 at 02:00 P M
i. Date/ time/Venue of opening of Tender Part I February 22, 2021 at 03:00 P M at the Reserve Bank Staff College.
(Part II will be opened on a later date after evaluation of Part I. Opening of Part II will be intimated to qualified tenderers)
j. Transaction Fee Payment of Transaction fee as mentioned in the MSTC portal through MSTC payment gateway through /NEFT/RTGS in favour of MSTC LIMITED
k. Address for Communication The Principal
Reserve Bank Staff College
359, Anna Salai, Teynampet,
Chennai 600 018
e-mail: – principalrbsc@rbi.org.in

Tender document can be downloaded from RBI website – www.rbi.org.in – and www.mstcecommerce.com/eprochome/rbi. Any amendment(s) / corrigendum / clarifications with respect to this tender shall be uploaded on the website / e-portal only. The tenderer should check the above website / e-portal for any Amendment / Corrigendum / Clarification before submitting the bid. The College reserves the right to reject any or all the tenders without assigning any reason thereof.

Chief General Manager/Principal
Reserve Bank Staff College
359, Anna Salai, Teynampet
Chennai

[ad_2]

CLICK HERE TO APPLY

Leave a comment

HDFC Bank submits plan of action to RBI, hopes to fix outage issue in 3 months, BFSI News, ET BFSI

Banking & Finance

[ad_1]

Read More/Less


New Delhi: The country’s largest private sector lender HDFC Bank has submitted a detailed plan of action to the RBI to address repeated service disruption issues due to outage and hopes to improve its technology platform in three months. Progress is being made on the plan of action provided to the RBI and the bank has taken this positively as it will raise the standard, according to a senior official of HDFC Bank.

The action plan will take 10-12 weeks for implementation, and further timeframe will depend on the RBI’s inspection. Based on the satisfaction level, the regulator will lift the ban, the official said at an analysts meet.

Last month, the Reserve Bank of India (RBI) temporarily barred HDFC Bank from launching new digital banking initiatives and issuing new credit cards after taking a serious view of service outages at the lender over the last two years.

“RBI has issued an order dated December 2, 2020, to HDFC Bank Ltd with regard to certain incidents of outages in the internet banking/ mobile banking/ payment utilities of the bank over the past two years, including the recent outages in the bank’s internet banking and payment system on November 21, 2020, due to a power failure in the primary data centre,” HDFC Bank had said in a regulatory filing.

The bank has been penalised for two major outages, one in November 2018 and the other in December 2019.

Taking a stern view of the repeated outages, RBI Governor Shaktikanta had said the regulator had some concerns about certain deficiencies and it was necessary that the HDFC Bank strengthens its IT systems before expanding further.

“… we cannot have thousands and lakhs of customers who are using digital banking to be in any kind of difficulty for hours together and especially when we are ourselves giving so much emphasis on digital banking. Public confidence in digital banking has to be maintained,” Das had said in December.

HDFC Bank, the largest lender by assets in the private sector, has been classified as a systemically important entity by the RBI in the past. It is also the largest issuer of credit cards and has a significant share in the payment processing segment.

The bank is the largest issuer of credit cards and had 1.49 crore customers as of September 2020 while on the debit cards front, it had 3.38 crore customers.

Earlier, HDFC Bank’s Managing Director and Chief Executive Officer Shashidhar Jagdishan had apologised to customers and promised to work on the deficiencies.



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , ,

Bindu Ananth, Dvara Trust, BFSI News, ET BFSI

Personal Finance

[ad_1]

Read More/Less


Bindu Ananth, Co-founder and Chair at Dvara Trust believes it’s time for India to increase the number of lenders & non-bank lenders to push credit to different segments of the society.

Bindu Ananth, Co-founder & Chair, Dvara Trust.

Speaking at the Digital Lenders Association of India (DLAI) Conclave, she says, India shall look at adding more banks and increase the number of non-banking financial companies (NBFCs) by more than three times in the next 10 years which will help in having a robust financial services sector.

According to her, India’s financial system comprises over 50 scheduled commercial banks and about roughly about 300 NBFCs which are non-deposit taking systemically important and in next 10 years India should look at getting at least 100 high quality banks and 1000 non-deposit taking NBFCs.

Explaining the rationale behind doubling the number of lenders she says while the share of NFBCs in total credit has grown twice from 10% to 20% in the last decade, the advantage of a non-deposit taking NBFC is that it doesn’t pose systemic risks and thinks there is really a growing recognition that NBFCs have a set of core capabilities that banks in some sense might find it impossible to replicate.

She also believes that banks & NBFCs should coexist in a collaborative manner and service the millions of micro, small and medium enterprises (MSMEs) and focus on product innovation & dynamic risk-based pricing models, which is the need of the hour.

She acknowledged that digital lenders in India, specifically the ones serving MSMEs and small businesses have started using dynamic risk-based pricing algorithms and moved away from general risk assessments to more specific ones. Bindu explained the concept of risk ordinality, where risk at the same level shall be priced similarly and less risky customers shall receive credit at a different rate as compared to high-risk customers. According to her, banks and traditional NBFCs have struggled and found it difficult to address differential pricing.

Bindu also touched upon embedded financing which is driving far more contextual relationships as platforms serve the real economy and users and offers a huge opportunity for growth but less innovation is seen in this space in terms of the range of financial services and products.

In the context of embedded finance, she cautions companies to be careful with respect to consumer protection and grievance redressal mechanism.

According to her the innovation in embedded financing shall be accompanied by good thinking in terms of what happens when things go wrong as the customer only interacts with the platform and the actual lender is in the background.

Bindu concludes, India has a phenomenal opportunity to drive innovation on the product side be it the range of products and pricing of products for different segments.

Bindu Ananth was formerly associated with ICICI Bank’s Microfinance division and has also been the head for new product development in its Rural Banking Group. She was also the former Board Chair of Northern Arc Capital.



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , ,

2 Stock Buy Ideas For Gains In 3-5 Weeks By HDFC Securities

Personal Finance

[ad_1]

Read More/Less


Investment

oi-Roshni Agarwal

|

After indices have hit a record high and major moves such as change of guard in the US are behind us, there is expected some consolidation in the near term even as the overall trend seems positive. On Friday, on global sell-off and fresh concerns over corona leading to fresh restrictions in countries like China, Indian indices too saw profit booking but the long term trend line resistances as per monthly chart) could come into play. This is even as one may expect continuance of volatility ahead of budget announcement.

2 Stock Buy Ideas For Gains In 3-5 Weeks By HDFC Securities

2 Stock Buy Ideas For Gains In 3-5 Weeks By HDFC Securities

Here are two stock picks by HDFC Securities for gains in 3-5 weeks:

1. SBI Cards and Payment Services Ltd – Buy-Target Price – Rs. 1100 In 3-5 Weeks

As the stock saw sharp upside in Wednesday’s session, the chart now signals higher highs and lows, which indicate strength of an uptrend in the stock price. The volume has seen an expansion during recent upside breakout and daily 14 period RSI is placed around 70 levels. And hence pick up of RSI from here on suggest strengthening of upside momentum.

Buying can be initiated in SBI Cards at CMP (997.15), add more on dips down to Rs 960, wait for the upside target of Rs 1100 in the next 3-5 weeks. And you can place a stoploss of Rs 935. The last traded price for the counter have been Rs. 1032, an upmove of 5% even as the overall market saw sluggish momentum.

2. Godrej Consumer – Buy- Target price: Rs. 880 In 3-5 Weeks

While the stock has underperformed in line with the indices, there was traction in the stock in the week gone by and there could be valid upside breakout of a larger triangle pattern and one may expect further sustainable upside in the near term. Also the weekly momentum oscillator like RSI/Stochastic give signals to positive momentum.

Buying can be initiated in Godrej Consumer at CMP (799), add more on dips down to Rs 765, wait for the upside target of Rs 880 in the next 3-5 weeks. Place a stoploss of Rs 745. Last traded price for the counter has been Rs. 790 per share on the NSE.

GoodReturns.in



[ad_2]

CLICK HERE TO APPLY

Leave a comment

This 2-Wheeler Shares Can Give Decent Returns

Personal Finance

[ad_1]

Read More/Less


Investment

oi-Sunil Fernandes

|

Broking firm, Motilal Oswal has a “neutral” rating on the stock of Bajaj Auto, with a price target of Rs 4,000 on the stock. “Bajaj Auto’s operating performance was driven by a favorable mix, lower marketing spends, and operating leverage. It has both near (3W recovery) and long term (premiumization and exports) levers, which are fairly reflected in current valuations.

We upgrade our FY21E/FY22E EPS by 7%/5% to factor in mix, cost savings, and an upgrade in KTM’s PAT. Maintain Neutral,” the broking firm has said.

Management commentary as per report of Motilal Oswal Institutional Equities

This 2-Wheeler Shares Can Give Decent Returns

  • Outlook: Domestic 2W sales were back to last year’s levels. Base effect will drive growth, but on a like-to-like basis it would be in low single digits. Domestic 3Ws would see a QoQ recovery, but decline 50% YoY. The growth momentum in exports would continue, with 12-15% growth in most markets. If Association of South East Nations (ASEAN) recovers, it would clock its best ever exports.
  • 2W export volumes have recovered well with: a) South Asia (excluding Sri Lanka) and Africa back to pre-COVID levels, b) Latin America 80-90% levels, and c) ASEAN at 50% levels. 3W exports are seeing a gradual recovery with Latin America at 50-60%, ASEAN at 25%, and other markets at or above pre-COVID levels. Bajaj Auto has gained market share in all export markets.
  • Raw material costs is estimated to increase by 3pp QoQ due to commodity cost inflation. It has raised prices by 1% each in domestic 2W/3W in 3QFY21 and by 1.25% in Jan’21 for domestic 2W. It also hiked export prices to cover capping of MEIS incentives and rise in RM cost. Price increases have to be calibrated as demand recovery is fragile, and might be required to be phased out.
  • Electric Vehicles: Chetak e-scooter bookings remains closed since the end of Mar’20 due to supply chain issues. It expects to iron out these issues in the next 2-3 months and would look to expand its presence in the top 24 cities by FY22- end (from two cities at present). It is actively pursuing development of e3W and e-Qute, and plans to launch one in 2HFY22.
  • Capital expenditure (capex) for FY22/FY23 would be higher than the normal run-rate as it would be investing Rs 6.5 billion for a new plant for high-end Bikes (commissioning in FY23). Capex for FY22/FY23 would be Es 5.5-6 billion per annum.



[ad_2]

CLICK HERE TO APPLY

Leave a comment

This 2-Wheeler Shares Can Give Decent Returns

Personal Finance

[ad_1]

Read More/Less


Investment

oi-Sunil Fernandes

|

Broking firm, Motilal Oswal has a “neutral” rating on the stock of Bajaj Auto, with a price target of Rs 4,000 on the stock. “Bajaj Auto’s operating performance was driven by a favorable mix, lower marketing spends, and operating leverage. It has both near (3W recovery) and long term (premiumization and exports) levers, which are fairly reflected in current valuations.

We upgrade our FY21E/FY22E EPS by 7%/5% to factor in mix, cost savings, and an upgrade in KTM’s PAT. Maintain Neutral,” the broking firm has said.

Management commentary as per report of Motilal Oswal Institutional Equities

This 2-Wheeler Shares Can Give Decent Returns

  • Outlook: Domestic 2W sales were back to last year’s levels. Base effect will drive growth, but on a like-to-like basis it would be in low single digits. Domestic 3Ws would see a QoQ recovery, but decline 50% YoY. The growth momentum in exports would continue, with 12-15% growth in most markets. If Association of South East Nations (ASEAN) recovers, it would clock its best ever exports.
  • 2W export volumes have recovered well with: a) South Asia (excluding Sri Lanka) and Africa back to pre-COVID levels, b) Latin America 80-90% levels, and c) ASEAN at 50% levels. 3W exports are seeing a gradual recovery with Latin America at 50-60%, ASEAN at 25%, and other markets at or above pre-COVID levels. Bajaj Auto has gained market share in all export markets.
  • Raw material costs is estimated to increase by 3pp QoQ due to commodity cost inflation. It has raised prices by 1% each in domestic 2W/3W in 3QFY21 and by 1.25% in Jan’21 for domestic 2W. It also hiked export prices to cover capping of MEIS incentives and rise in RM cost. Price increases have to be calibrated as demand recovery is fragile, and might be required to be phased out.
  • Electric Vehicles: Chetak e-scooter bookings remains closed since the end of Mar’20 due to supply chain issues. It expects to iron out these issues in the next 2-3 months and would look to expand its presence in the top 24 cities by FY22- end (from two cities at present). It is actively pursuing development of e3W and e-Qute, and plans to launch one in 2HFY22.
  • Capital expenditure (capex) for FY22/FY23 would be higher than the normal run-rate as it would be investing Rs 6.5 billion for a new plant for high-end Bikes (commissioning in FY23). Capex for FY22/FY23 would be Es 5.5-6 billion per annum.



[ad_2]

CLICK HERE TO APPLY

Leave a comment

Asset quality improves: Yes Bank reports Rs 151-crore profit on strong interest income

Banking & Finance

[ad_1]

Read More/Less


Advances during the December quarter rose 1.7% sequentially to Rs 1.69 lakh crore.

Yes Bank on Friday reported a net profit of Rs 151 crore for the December quarter (Q3FY21) because of healthy interest income and an improved asset quality. The lender had incurred a loss of Rs 18,560 crore in Q3FY20. Sequentially, the net profit increased 17.05%.

The operating profit for the quarter under review increased 68% QoQ to Rs 2,286 crore. The lender had reported an operating loss of Rs 6 crore during the same quarter last year. The net interest income (NII) increased 140% year-on-year (YoY) and 30% QoQ to Rs 2,560 crore.

Prashant Kumar, managing director and chief executive officer, said the lender is seeing a very good improvement in the business as well as profitability. “We expect our advances to grow by 12% in the next financial year (FY22).”

Advances during the December quarter rose 1.7% sequentially to Rs 1.69 lakh crore. The lender disbursed Rs 12,000 crore of retail loans in Q3FY21, surpassing its own target of Rs 10,000 crore for the quarter.

Kumar also said the bank will continue its focused approach on recovery. “We are hopeful that recovery in the fourth quarter will be better than the third quarter,” he said. The bank has made a cash recovery of Rs 1,512 crore in the December quarter.

Kumar said the bank has made adequate provisions for the restructuring and standstill non-performing assets (NPAs). “We have invoked restructuring to the extent of Rs 8,000 crore. The bank has made Rs 2,683-crore provision for the same,” he said.

The asset quality showed an improvement in Q3FY21. Gross NPAs improved 154 basis points (bps) to 15.36%, compared to 16.90% in the previous quarter. Net NPAs came down 67 bps to 4.04% from 4.71% in the September quarter. “There will be an addition of 4.5% in gross NPAs if the Supreme Court direction on not allowing banks to declare fresh NPAs is lifted,” Kumar said.

The provision coverage ratio stood at 76.8% as on December 31, 2020. The net interest margin improved to 3.4%, showing a Y-o-Y growth of 200 bps and Q-o-Q rise of 30 bps.

Deposits rose 7.7% sequentially to Rs 1.46 lakh crore. The current account savings account (CASA) ratio stood at 26%, compared to 24.8% at the end of September 2020.

The bank has the approval of the board for raising Rs 10,000 crore. “It is an enabling provision for raising funds as and when required,” Kumar said. The capital adequacy ratio stood at 19.6% as on December 31, 2020.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , ,
1 … 21 22 23 24 25 … 87