Month: March 2021

HDFC Bank’s MSME book grows 30% to cross Rs 2 trillion-mark, BFSI News, ET BFSI

Banking & Finance

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MUMBAI: HDFC Bank‘s MSME book grew 30 per cent year-on-year to cross the Rs 2-lakh-crore-mark as of December-end, mainly boosted by the pandemic-induced ECLG scheme under which it disbursed over Rs 23,000 crore. The growth is also driven by a renewed push towards customers in semi-urban and rural areas, the bank has said.

In December 2019, the bank’s MSME book stood at Rs 1.4 lakh crore, which has grown by over 60,000 crore or 30 per cent to Rs 2,01,758 crore by the December 2020 quarter, giving it a 10.6 per cent share system-wide MSME lending, becoming the second-largest lender in this segment after the State Bank of India, the bank added.

“Our MSME lending is back to pre-pandemic levels, with loan book growing at 30 per cent year-on to Rs 2,01,758 crore as of the December 2020 quarter,” Sumant Rampal, senior executive vice-president, business banking and healthcare finance, at the bank told on Friday.

“While the ECLG scheme was the biggest driver boosting the loan book by Rs 23,000 crore disbursed to around 1,10,000 MSME customers, our own renewed push towards customers in semi-urban and rural areas has also helped us during the pandemic, leading to an incremental loan growth of over Rs 60,000 crore,” he said, adding most of the ECLGS disbursals took place only in the past three-four months.

At 30 per cent loan growth, the MSME book is the fastest-growing vertical for the bank. “This is a testimony to our commitment to strengthen the MSME sector that accounts for about 30 per cent of GDP and the largest employer,” Rampal said.

The government launched the third version of the Rs 3-lakh crore emergency credit line guarantee scheme (ECLGS) last November for MSMEs, following the KV Kamath committee report.

On Thursday, Union MSME minister Nitin Gadkari told the Lok Sabha that banks and other financial institutions have cumulatively sanctioned Rs 2.46 lakh crore of the Rs 3 lakh crore scheme, while disbursal stood at low Rs 1.81 lakh crore, as of February 28, according to the data from the National Credit Guarantee Trustee Company, which is the implementing agency of the ECLGS.

The scheme comes with a 2 per cent interest subvention and is a five-year tenor of which the first year gets a payment moratorium.

“Our MSME portfolio is geographically balanced spread across all metropolitan cities, urban, semi-urban and rural regions. And we reached out to them with a suite of customised products which they could access conveniently either through physical or electronic channels,” said Rampal.

The bank offers a range of services to MSMEs, ranging from conventional working capital/term loans, structured cash flow management and financing solutions, trade financing solutions, forex services, individual banking needs of promoters and family, salary accounts plus advisory on investment banking.

Its MSME portfolio is spread across sectors like textiles, fabrication, agri-processing, chemicals, consumer goods, hotels & restaurants, auto components, pharma and the paper industry, and also include the entire selling chain ranging from wholesalers, retailers, distributors, stockists and supermarkets, he said.

On Q4, Rampal refused to share numbers citing the Nasdaq silent period, just saying my team is busy at work and pointed to the large market of 6 crore registered MSMEs, but only 1.2 crore of them borrowing even after all the push by the government and the Reserve Bank.

He said of their 5,500 branches, 1,800 of them have more than 25 per cent of their loans to MSMEs and 4,800 units service this segment of customers. Geographically speaking, the bank is present in 630 districts, of these, 560 districts have MSMEs.

There is no concern on the asset quality front for the bank, which has a history of having the lowest NPAs in the system. In December 2019, the MSME bad loans for the bank were just 0.48 per cent and Rampal said, anyway currently the entire ECLGS book is under mandatory moratorium.

He said, the services industry is still facing challenges and expressed apprehension about the second wave of the pandemic.



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5 Secure Investments For Retirement Planning

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Investment

oi-Vipul Das

|

Everyone enjoys a relaxing and sustainable retirement time after years of intense employment. Many individuals look forward to retirement because it allows them to rest, and enjoy space with their family. In any case, financial issues are the unwanted instances that someone doesn’t want to welcome his or her personal finance space during the retirement years. Individuals nearing their retirement create uncertainty and distress by only thinking about having inadequate funds before they reach retirement age. But, retired people or senior citizens should be mindful of good investment options and ways to generate a steady income so that they can sustain their lives without putting their savings at risk. As a result, senior citizens should think about a portfolio that will provide them with a steady stream of income. For people nearing retirement, here are a few low-risk investing strategies that provide long-term security:

5 Secure Investments For Retirement Planning

Senior Citizen Savings Scheme

The Senior Citizen Savings Scheme, or SCSS, is a government scheme that provides a quarterly income to individuals who have reached the age of 60 or who have chosen to retire at the age of 55. The current interest rate is 7.4 per cent per annum which is paid on a quarterly basis. By making only one deposit with an initial amount of Rs. 1000 up to Rs 15 lakhs, a senior citizen can open an SCSS account. This small savings scheme of the post office comes with a tenure of 5 years which further can be extended to a block of 3 years. The facility of nomination is available while opening an SCSS account by submitting Form C. Under Section 80C of the Indian Tax Act, 1961, SCSS also provides a tax deduction of up to Rs.1.5 lakh.

Pradhan Mantri Vaya Vandana Yojana

The Pradhan Mantri Vaya Vandana Yojana (PMVVY) regulated by Life Insurance Corporation (LIC) is a pension scheme for senior citizens. The scheme provides a guaranteed rate of return on investment because of the sovereign guarantee. By investing in this scheme a senior citizen can get pension benefit on a monthly, quarterly, or yearly basis. The scheme has a ten-year term for which you will get a Rs 1,000 monthly pension for an initial purchase price is Rs 1.5 lakh. It has an overall purchase price of Rs 15 lakh and comes with a Rs 10,000 monthly pension. The interest rate in PMVVY is determined by the frequency of payout, which can be monthly, quarterly, half-yearly, or yearly. Senior citizens must contribute Rs1,449,086 to earn the full annual payout of Rs1.11 lakh. Depending on the frequency of payouts, the interest rate ranges from 7.4 per cent to 7.66 per cent respectively.

Post Office Monthly Income Scheme (POMIS)

Post Office Small Savings Schemes provides a high rate of interest and are good for those who want assured returns like bank FDs. One such small savings scheme is Post Office Monthly Income Scheme and POMIS account can be opened with a minimum of Rs. 1000 and in multiple of Rs. 100 up to a limit of Rs 4.5 lakh in a single account and Rs 9 lakh in case of a joint account. For the current quarter, the interest rate on the Post Office Monthly Income Scheme is 6.6% per annum. Interest will be paid at the end of each month from the date of opening of the account, and so on before the account reaches maturity. You cannot withdraw the amount invested in a Monthly Income Scheme account before 5 years if you open one with a post office. If you withdraw your corpus before the lock-in date expires, you will be charged a penalty on the withdrawal amount, which is calculated based on the time of withdrawal. There is a 2% penalty if you redeem your investment within the first and third year, if you withdraw within the third and fifth year, you will be charged a 1% penalty.

National Pension System (NPS)

Individuals between the ages of 18 and 65 can invest in the National Pension System. The account can also be extended up to an age limit of 70 years which ensures that senior citizens can consider this scheme which is backed by the government of India. Senior citizens can also extend their tenure until they reach the age of 70. Taxpayers can deduct up to Rs.1.50 lakh in NPS contributions under Section 80C of the Income Tax Act. Individuals are also eligible for additional benefits up to Rs.50,000 under Section 80CCD. The money invested in the NPS system is allocated across equity bonds, debt bonds, or both, based on the subscriber’s preference. As a result, NPS has no fixed interest rate, and a senior citizen’s portfolio will only benefit from market-based returns. 60 per cent of the NPS corpus is tax-free as it matures. The remaining 40% of the NPS fund must be used to purchase an annuity for a monthly pension benefit. You can also choose from one of the eight NPS pension fund managers. SBI, UTI, LIC, Aditya Birla, HDFC, Kotak, ICICI Prudential, and Reliance Capital are the fund managers involved. As a result, NPS returns are related to the performance of the equity or debt market. To know more about current NPS returns, click here.

Senior Citizen Fixed Deposit Schemes

Some leading banks of India such as State Bank of India (SBI), HDFC Bank, ICICI Bank, and Bank of Baroda provide special fixed deposit (FD) schemes to elderly people. These banks are promising higher interest rates on term deposits under this scheme than they are currently providing to non-senior citizens. Senior citizens can get 100 basis points more on these deposits at Bank of Baroda (BoB). A senior citizen will get a higher rate of 6.25 per cent for depositing for a tenure of above 5 years to up to 10 years at BOB. Similarly, on these deposits, ICICI Bank gives an 80 basis point higher interest rate. The ICICI Bank Golden Years FD scheme pays a 6.30 per cent annual interest rate to senior citizens. HDFC Bank, on the other hand, pays a 75 basis point higher interest rate on these deposits. The interest rate on a fixed deposit held by a senior citizen under the HDFC Bank Senior Citizen Care FD will be 6.25 per cent. At last, the leading commercial bank of the country State Bank of India offers a special FD scheme for senior citizens that provides an interest rate that is 80 basis points (bps) higher than the general public. SBI currently offers a 5.4 per cent interest rate on five-year fixed deposits to the general public. If a senior citizen deposits money in a fixed account under the special FD scheme, then he or she will get a higher interest rate of 6.20 per cent respectively. These special FD schemes are in effect for senior citizens till 31 March 2021.



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IndiaLends raises $5.1 mn from existing investors ACP Partners, DSG Consumer Partners

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Digital lending platform IndiaLends has raised $5.1 million in a funding round led by existing investors ACP Partners and DSG Consumer Partners.

“The Delhi-NCR-based firm will use the funds to expand its technology platform, increase its market footprint and amplify its product offerings to meet the pent-up demand in a post-Covid economic recovery,” it said in a statement on Friday.

The company plans to double disbursements to ₹4,000 crore in the next 18 to 24 months with a focused outreach towards retail consumers living across tier I-II cities and tier III towns.

It has disbursed over ₹2,000 crore in personal loans since launch and has more than 80 lakh customers.

“IndiaLends also intends to extend its outreach to the underserved customers, people who are worthy of getting access to credit but are unfortunately left out owing to the lack of reliable credit history,” it further said.

Gaurav Chopra, founder and CEO of IndiaLends, said the fresh round of financing will help the company usher in the next phase of growth. “This investment is a testament to the fact that the sector is going to witness an upward curve in the days to come,” he said.

Apart from traditional banks and NBFCs, IndiaLends also offers pre-qualified loans from all major fintech and P2P lenders to its customers.

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SBI Chairman, BFSI News, ET BFSI

Banking & Finance

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The country’s largest lender State Bank of India has seen a perceptible increase in the number of transactions happening at its multiple digital channels, with the percentage moving from 60 per cent in the pre-pandemic period to 67 per cent currently, Chairman Dinesh Khara said.

The rise in the number of digital transactions at the bank was largely driven by pick up in e-commerce during the pandemic-induced lockdown, which restricted movement, he said.

“When e-commerce picked up, it was actually the digital channels we are offering that got wider currency and acceptability. That is one of the reasons our digital transactions have gone as high as 67 per cent now.

“I think it is a phenomenal number, considering the fact that we are a bank which is serving all kinds of customers – digitally savvy and not digitally savvy,” Khara told PTI in an interaction.

He said the ecosystem such as round the clock availability of Real Time Gross Settlement System (RTGS) and National Electronic Fund Transfer (NEFT), which got created recently, also helped the bank in scaling up its digital transactions.

“I think part of it (higher digital transactions) is coming from the ecosystem and a part of it has come from the bank’s own effort,” he noted.

The lender’s digital lending platform – Yono (You Only Need One App) – has achieved significant growth during the current financial year.

At present, there are 35 million registered users of Yono and the bank is opening over 35,000-40,000 savings accounts per day with the help of the mobile app, he said.

During the current financial year, around Rs 16,000 crore worth of pre-approved personal loans (PAPL) have been disbursed to 12.82 lakh customers through Yono, Khara said.

While 59,000 crore car loans aggregating to around Rs 4,000 crore were sanctioned, the bank could generate 15,000 home loan leads worth Rs 4,000 crore with the help of Yono, he added.

The platform also helps in distributing products of the bank’s subsidiaries including SBI Life Insurance, SBI General Insurance and SBI Card and SBI Mutual Fund.

So far in this fiscal, close to 25 lakh personal accident policies and seven lakh life insurance policies have been issued using the Yono platform, Khara said.

“As more and more users are coming and using it (Yono), we are only ensuring that it becomes all the more robust so that it is in a position to handle and generate more volumes and create value for the bank, while also improving the experience of our customers,” he said.

The bank is constantly augmenting the infrastructure required to support an increasing number of transactions through all its digital channels, he said.

Khara said the bank’s topmost priority is to provide safety to customers using its digital channels and has significantly scaled up capabilities to deal with any kind of cyber frauds.

“We have ensured that the firewalls are strong enough and there should be adequate protection both at the end point as well as the server level,” he said adding that the bank continuously keeps reviewing protection levels to ensure that all channels and networks stay protected.

According to Kiran Shetty, CEO and Regional Head, India and South Asia for SWIFT, who was also part of the interaction, while the COVID-19 pandemic accelerated digital transactions and payments, it also necessitated remote working conditions, resulting in banks and financial institutions further ramping up their security infrastructure as cyber threats continued to grow. The Society for Worldwide Interbank Financial Telecommunication (SWIFT) is a network that enables financial institutions to send and receive information about financial transactions in a secure environment.

“At SWIFT, we actively support the global financial community in the fight against cyber-attacks by fostering a more secure financial ecosystem,” Shetty said.

He said SWIFT’s solutions such as Payment Controls System allows banks to mitigate fraudulent attacks by monitoring transactions on a real-time basis and detecting these potentially high risk transactions, alerting the teams and combined with the ability to block payments and transactions, prevents cybercrimes.

Shetty said SWIFT also runs a customer security program which its members need to follow. There are 31 principles to protect the environment in which SWIFT infrastructure operates.

Khara said products from SWIFT have added to the transparency for customers, both in terms of tracking the status of various payments and the transaction costs.

He said going forward, digitisation is more likely a default option as the bank serves a variety of customers in different geographies but physical branches will remain.

“It is not an ‘either-or’ situation. Physical and digital will co-exist. Our strategy is going to be phygital,” Khara concluded.



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India banning Bitcoin would be a terrible idea

Banking & Finance

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If India proceeds with a rumoured ban on cryptocurrency, it wouldn’t be the country’s first attempt to impose currency controls. This time, however, a ban is even less likely to succeed — and the consequences for India’s economy could be more dire. The country shouldn’t make the same mistake twice.

In the 1970s and 80s, at the height of what was known as the Licence Raj, Indians could only hold foreign currency for a specific purpose and with a permit from the central bank. If a businessman bought foreign exchange to spend over two days in Paris and one in Frankfurt, and instead spent two days in Germany, the Reserve Bank of India would demand to know why he’d deviated from the currency permit. Violators were routinely threatened with fines and jail time of up to seven years.

India to propose cryptocurrency ban: senior official

Imports required additional permits. Infosys Ltd founder Narayana Murthy recalls spending about $25,000 (including bribes) to make 50 trips to Delhi over three years, just to get permission to import a $150,000-computer. Plus, since any foreign exchange that the company earned notionally belonged to the government, the RBI would release only half of Infosys’s earnings for the firm to spend on business expenses abroad.

Naturally a black market, with all its unsavoury elements, emerged for foreign currency. The government doubled down, subjecting those dealing in illicit foreign exchange to preventative detention, usually reserved for terrorists. Businessmen selling Nike shoes and Sony stereos were arrested as smugglers.

The system impoverished Indians and made it impossible for Indian firms to compete globally. There’s a reason the country’s world-class IT sector took off only after a balance of payments crisis forced India to open up its economy in 1991.

Indian millennials drawn to Bitcoin’s charms

Negative factors

While details of the possible crypto ban remain unclear, a draft Bill from 2019 bears eerie resemblance to the 1970s controls. It would criminalise the possession, mining, trading or transferring of cryptocurrency assets. Offenders could face up to ten years in jail as well as fines.

Such a blanket prohibition would be foolish on multiple levels. For one thing, enforcing the law would be even more difficult than under the Licence Raj. Raids once aimed at seizing dollars and gold bars would face the challenge of locating a password or seed phrase holding millions in Bitcoin. Nor can the government seize or even access the network of computers scattered across the world mining cryptocurrency and maintaining blockchain ledgers.

To enforce a ban, authorities would have to develop an intrusive surveillance system that could track all digital and internet activity in the country. Thankfully, India does not have the state capacity to pull that off. More likely, its efforts will only drive the cryptocurrency market underground.

That would almost certainly give rise — again — to an ever-evolving set of arbitrary rules imposed by the central bank and tax department, optimised mostly to extort bribes. Young coders and start-up founders would face harsh and arbitrary raids. Unlike the “smugglers” of the 1970s, some of India’s most elite and entrepreneurial workers are engaged in these new financial technologies; persecution could spur a brain drain.

Tax evasion won’t be addressed

Ordinary Indians would be deprived of the very real benefits of cryptocurrency. The ban would prevent Indians from capitalising on crypto-asset appreciation, which blockchain evangelist Balaji Srinivasan has called a “trillion-dollar mistake.” India receives the highest inflow of global remittances and using blockchain networks could save Indians billions in transfer fees. Meanwhile, elite Indians with options will flee the country, taking their wealth and innovations with them.

And none of this will address the government’s real fear: tax evasion. Granted, unlike gold bars and dollars under the mattress, cryptocurrency is hard if not impossible to track. Some users will no doubt exploit that fact to hide earnings from the tax authorities.

But, just like its disastrous predecessor — the government’s snap decision in 2016 to render 86 per cent of India’s currency notes invalid overnight — banning cryptocurrency to fight “black money” would be like setting fire to the forest in order to smoke out a few sheep. A far better solution would be to streamline India’s complex tax code, broaden the tax base and make enforcement less arbitrary, thus encouraging more Indians to pay what they owe.

Long-term solution

The government’s second worry is preventing capital flight and volatility during economic crises. Cryptocurrency would allow Indians to bypass the current restrictions on capital account convertibility and invest abroad more easily. But again, protecting Indians from global volatility by banning cryptocurrency would be like making roads safer by eliminating cars. The real long-term solution is for the government to gradually reduce controls over capital mobility and make India a more desirable investment destination.

Instead of criminalising digital currencies, the government should take a hard look at India’s restrictions on financial transactions and bring them in line with the changing world. Liberalisation in 1991 made India a world leader in IT. Opening up even further could place Indians where they belong — at the frontier of fintech innovation, not under suspicion.

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Reserve Bank of India – Press Releases

Press Releases

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(Amount in ₹ crore, Rate in Per cent)
  Volume
(One Leg)		 Weighted
Average Rate 		Range
A. Overnight Segment (I+II+III+IV) 4,07,448.99 3.21 0.01-5.30
     I. Call Money 10,924.00 3.26 1.90-3.50
     II. Triparty Repo 2,93,504.20 3.26 2.90-3.35
     III. Market Repo 1,02,795.79 3.08 0.01-3.50
     IV. Repo in Corporate Bond 225.00 3.70 3.50-5.30
B. Term Segment      
     I. Notice Money** 217.30 3.21 2.50-3.60
     II. Term Money@@ 83.00 – 3.30-3.50
     III. Triparty Repo 805.00 3.33 3.15-3.35
     IV. Market Repo 520.00 1.77 0.01-3.50
     V. Repo in Corporate Bond 0.00 – –
  Auction Date Tenor (Days) Maturity Date Amount Current Rate /
Cut off Rate
C. Liquidity Adjustment Facility (LAF) & Marginal Standing Facility (MSF)
I. Today’s Operations
1. Fixed Rate          
     (i) Repo          
     (ii) Reverse Repo Thu, 18/03/2021 1 Fri, 19/03/2021 3,99,249.00 3.35
2. Variable Rate&          
  (I) Main Operation          
     (a) Reverse Repo          
  (II) Fine Tuning Operations          
     (a) Repo          
     (b) Reverse Repo – – – – –
3. MSF Thu, 18/03/2021 1 Fri, 19/03/2021 13.00 4.25
4. Long-Term Repo Operations –   –   –
5. Targeted Long Term Repo Operations – – – – –
6. Targeted Long Term Repo Operations 2.0 – – – – –
7. Net liquidity injected from today’s operations
[injection (+)/absorption (-)]*		       -3,99,236.00  
II. Outstanding Operations
1. Fixed Rate          
     (i) Repo          
     (ii) Reverse Repo          
2. Variable Rate&          
  (I) Main Operation          
     (a) Reverse Repo Fri, 12/03/2021 14 Fri, 26/03/2021 2,00,007.00 3.51
  (II) Fine Tuning Operations          
     (a) Repo          
     (b) Reverse Repo          
3. MSF          
4. Long-Term Repo Operations# Mon, 17/02/2020 1095 Thu, 16/02/2023 499.00 5.15
  Mon, 02/03/2020 1094 Wed, 01/03/2023 253.00 5.15
  Mon, 09/03/2020 1093 Tue, 07/03/2023 484.00 5.15
  Wed, 18/03/2020 1094 Fri, 17/03/2023 294.00 5.15
5. Targeted Long Term Repo Operations^ Fri, 27/03/2020 1092 Fri, 24/03/2023 12,236.00 4.40
  Fri, 03/04/2020 1095 Mon, 03/04/2023 16,925.00 4.40
  Thu, 09/04/2020 1093 Fri, 07/04/2023 18,042.00 4.40
  Fri, 17/04/2020 1091 Thu, 13/04/2023 20,399.00 4.40
6. Targeted Long Term Repo Operations 2.0^ Thu, 23/04/2020 1093 Fri, 21/04/2023 7,950.00 4.40
D. Standing Liquidity Facility (SLF) Availed from RBI$       32,617.06  
E. Net liquidity injected from outstanding operations [injection (+)/absorption (-)]*     -90,307.94  
F. Net liquidity injected (outstanding including today’s operations) [injection (+)/absorption (-)]*     -4,89,543.94  
G. Cash Reserves Position of Scheduled Commercial Banks
     (i) Cash balances with RBI as on 18/03/2021 4,35,017.17  
     (ii) Average daily cash reserve requirement for the fortnight ending 26/03/2021 4,55,339.00  
H. Government of India Surplus Cash Balance Reckoned for Auction as on¥ 18/03/2021 0.00  
I. Net durable liquidity [surplus (+)/deficit (-)] as on 26/02/2021 8,64,316.00  
@ Based on Reserve Bank of India (RBI) / Clearing Corporation of India Limited (CCIL).
– Not Applicable / No Transaction.
** Relates to uncollateralized transactions of 2 to 14 days tenor.
@@ Relates to uncollateralized transactions of 15 days to one year tenor.
$ Includes refinance facilities extended by RBI.
& As per the Press Release No. 2019-2020/1900 dated February 06, 2020.
* Net liquidity is calculated as Repo+MSF+SLF-Reverse Repo.
# As per the Press Release No. 2020-2021/287 dated September 04, 2020.
^ As per the Press Release No. 2020-2021/605 dated November 06, 2020.
¥ As per the Press Release No. 2014-2015/1971 dated March 19, 2015.
Ajit Prasad
Director   
Press Release : 2020-2021/1266

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How To Open A Fixed Deposit Account In SBI, Axis, HDFC & ICICI Bank Online?

Personal Finance

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Investment

oi-Vipul Das

|

A fixed deposit is a form of investment offered by banks and non-banking financial companies (NBFC). As compared to the returns provided by a normal savings account, FDs have a higher return against the amount deposited. The word “fixed deposit” derives from the fact that it has a defined period. The FD investment period generally can vary from 7 days to 10 years. For a risk-averse investor as well as senior citizens a fixed deposit portfolio is a must bet to get high and promised returns which vary from one bank to another. Though the interest rates are guaranteed and tenure is fixed, an investor must keep in mind that he or she can withdraw the amount only after the maturity period and even premature withdrawal is open but only for some emergencies with some penalties. Investors are advised to consider interest rates, service legitimacy and other considerations before opening an account with a bank, NBFC or corporate. When it comes to open a fixed deposit account the only leading banks of India that comes to mind are SBI, ICICI, Axis and HDFC. Hence, if you want to open a fixed deposit account with any of these banks, you are in the right place. So let’s get started.

How To Open A Fixed Deposit Account In SBI, Axis, HDFC & ICICI Bank Online?

Steps to open a fixed deposit account in SBI

Customers of SBI can conveniently open an FD online by depositing a minimum amount of Rs 1000 at any time using the online facility. Simply transfer the funds from your bank account to the appropriate FD account. If you’ve opened an FD online, you can renew and close it at any time. To open an SBI FD account, follow the steps below.

  • Visit SBI Net Banking portal and click on ‘Login’
  • Now enter the required credentials in order to sign in to your net banking account.
  • Click on ‘e-TDR/e-STDR (FD)’ under the fixed deposit option, and then click on ‘Proceed’. One thing to note here is TDR stands for term deposit, and STDR stands for Special Term Deposit. The interest on an STDR deposit is incurred only at maturity, while the interest on a TDR deposit is paid at specified periods.
  • Select the type of FD account you want to open and then hit “Proceed.”
  • Now select the account from which you want to debit the money towards your FD account.
  • Select the FD principal amount and enter it in the ‘Amount’ section. If you are over 60, select the ‘Senior Citizens’ button. On FDs, senior citizens get 50 basis points more than regular customers.
  • Now choose a deposit tenure and maturity date.
  • Select your term deposit account’s maturity instruction i.e. auto renew principal and interest, auto renew principal and repay interest or repay principal and interest.
  • Now accept the ‘terms and conditions’ and click on ‘Submit’
  • The particulars of your FD (name, nominee, and so on.) will appear on the screen. Click the ‘OK’ button and you are done.
  • Please make note of the transaction number for potential use. By selecting the required alternatives, you can print or save the acknowledgement as a PDF too.

SBI FD Rates

Below are the current interest rates of SBI Fixed Deposit for a deposit amount of below Rs 2 Cr, w.e.f 8-1-2021.

Tenure ROI in % for non-senior citizens ROI in % for senior citizens
7 days to 45 days 2.9 3.4
46 days to 179 days 3.9 4.4
180 days to 210 days 4.4 4.9
211 days to less than 1 year 4.4 4.9
1 year to less than 2 year 5 5.5
2 years to less than 3 years 5.1 5.6
3 years to less than 5 years 5.3 5.8
5 years and up to 10 years 5.4 6.2

Steps to open a fixed deposit account in Axis Bank online

To open a fixed deposit account with Axis Bank online, you must deposit a minimum of Rs 5000, and if you open one in a bank branch, you must deposit a minimum of Rs 10,000. Follow the steps below to open an FD account online with Axis Bank.

Via net banking

  • Sign in to your net banking account and click on the ‘Deposit’ option
  • Now click on the ‘Create Fixed Deposit’ option
  • Now fill in all the required credentials and confirm the same.
  • The selected amount will be debited from your Savings Account upon confirmation, and your Fixed Deposit account will be generated instantly. Promptly, you will get an online receipt for the Fixed Deposit you have made. The deposit amount and interest rate will be determined by the date of application, which is the day on which the amount is debited from your savings account effectively.
  • If you have enrolled for e-statement, the Fixed Deposit acknowledgement will be forwarded to your registered e-mail ID once it has been generated. Physical advice will be submitted to your registered address if you have not registered for e-statement. After one business day of effective deposit, you will be able to download the Fixed Deposit advice via Online Banking.

Via mobile banking

  • Open the Axis Bank Mobile Banking app on your mobile phone and sign in to your account using the required credentials.
  • Now tap on ‘Open FD’ and fill in all the required credentials and confirm the same.
  • The selected amount will be debited from your Savings Account upon confirmation, and your Fixed Deposit account will be generated instantly. Promptly, you will get an online receipt for the Fixed Deposit you have made.
  • If you have enrolled for e-statement, the Fixed Deposit acknowledgement will be forwarded to your registered e-mail ID once it has been generated. Physical advice will be submitted to your registered address if you have not registered for e-statement. After one business day of effective deposit, you will be able to download the Fixed Deposit advice via Online Banking.

Axis Bank FD Rates

Below listed interest rates are for a deposit amount of below Rs 2 Cr, w.e.f 18/03/2021.

Tenure ROI in % for non-senior citizens ROI in % for senior citizens
7 days to 14 days 2.5 2.5
15 days to 29 days 2.5 2.5
30 days to 45 days 3 3
46 days to 60 days 3 3
61 days < 3 months 3 3
3 months < 4 months 3.5 3.5
4 months < 5 months 3.5 3.5
5 months < 6 months 3.5 3.5
6 months < 7 months 4.4 4.65
7 months < 8 months 4.4 4.65
8 months < 9 months 4.4 4.65
9 months < 10 months 4.4 4.65
10 months < 11 months 4.4 4.65
11 months < 11 months 25 days 4.4 4.65
11 months 25 days < 1 year 5.15 5.4
1 year < 1 year 5 days 5.15 5.8
1 year 5 days < 1 year 11 days 5.1 5.75
1 year 11 days < 1 year 25 days 5.1 5.75
1 year 25 days < 13 months 5.1 5.75
13 months < 14 months 5.1 5.75
14 months < 15 months 5.1 5.75
15 months < 16 months 5.1 5.75
16 months < 17 months 5.1 5.75
17 months < 18 months 5.1 5.75
18 Months < 2 years 5.25 5.9
2 years < 30 months 5.4 6.05
30 months < 3 years 5.4 5.9
3 years < 5 years 5.4 5.9
5 years to 10 years 5.75 6.5

Steps to open a fixed deposit account with HDFC Bank online

If you are an existing customer of HDFC Bank having an active savings account, you can conveniently open an HDFC FD account online or offline by depositing an initial amount of Rs 5,000. In case you don’t have a savings account with HDFC Bank, you will have to go through the KYC procedure to open an FD account successfully. Below are the steps you can follow to open an HDFC Bank Fixed Deposit account online:

  • Sign in to your HDFC Bank Net Banking account and under the ‘TRANSACT’ section, click on ‘Open Fixed Deposits’
  • Now select your branch, fill in the tenure and amount, name a nominee, and click ‘Confirm’ to proceed.
  • Once you are done the fixed deposit advice, which acts as a receipt for your deposit will be available to download for potential use.

HDFC Bank FD Rates

The below rated are applicable from 13th Nov 2020, for a deposit amount of less than Rs 2 Cr.

Tenure ROI in % for non-senior citizens ROI in % for senior citizens
7 – 14 days 2.50% 3.00%
15 – 29 days 2.50% 3.00%
30 – 45 days 3.00% 3.50%
46 – 60 days 3.00% 3.50%
61 – 90 days 3.00% 3.50%
91 days – 6 months 3.50% 4.00%
6 months 1 days – 9 months 4.40% 4.90%
9 months 1 day < 1 Year 4.40% 4.90%
1 Year 4.90% 5.40%
1 year 1 day – 2 years 4.90% 5.40%
2 years 1 day – 3 years 5.15% 5.65%
3 year 1 day- 5 years 5.30% 5.80%
5 years 1 day – 10 years 5.50% 6.25%

Steps to open a fixed deposit account with ICICI Bank online

One can conveniently apply for an ICICI Bank FD by depositing an initial amount of Rs 10,000 across multiple platforms such as internet banking and mobile banking. Using their debit card, mobile banking or Twitter banking services, one can also apply for an FD for a term spanning from 7 to 10 years. To open an FD account with ICICI Bank online, follow the steps below:

  • Visit the ICICI Bank Net Banking portal and sign in to your net banking account using the required credentials.
  • Now select the ‘Deposits’ option, under the ‘My Accounts’ section.
  • Now click on the ‘Open Now option and then select the ‘Fixed Deposit’ option
  • Now enter all the required details such as savings account number from which you want to get the money to be debited, type of deposit, deposit amount, tenure, PAN number (if depositing Rs 50,000 or more), and other specifics.
  • Once you’ve double-checked your details, press the “Submit” button. On the screen, a ‘Request Confirmation’ will appear, and you will get the fixed deposit advice on your registered email ID instantly.

ICICI Bank FD Rates

The below-listed interest rates are in force from Oct-21, 2020 for a deposit amount of less than Rs 2 Cr.

Tenure ROI in % for non-senior citizens ROI in % for senior citizens
7 days to 14 days 2.50% 3.00%
15 days to 29 days 2.50% 3.00%
30 days to 45 days 3.00% 3.50%
46 days to 60 days 3.00% 3.50%
61 days to 90 days 3.00% 3.50%
91 days to 120 days 3.50% 4.00%
121 days to 184 days 3.50% 4.00%
185 days to 210 days 4.40% 4.90%
211 days to 270 days 4.40% 4.90%
271 days to 289 days 4.40% 4.90%
290 days to less than 1 year 4.40% 4.90%
1 year to 389 days 4.90% 5.40%
390 days to < 18 months 4.90% 5.40%
18 months days to 2 years 5.00% 5.50%
2 years 1 day to 3 years 5.15% 5.65%
3 years 1 day to 5 years 5.35% 5.85%
5 years 1 day to 10 years 5.50% 6.30%
5 Years (80C FD) 5.35% 5.85%



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Federal Bank plans to buy microfin co to expand biz, BFSI News, ET BFSI

Banking & Finance

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Mumbai: Federal Bank MD & CEO Shyam Srinivasan has said that the private bank sees an opportunity to grow both organically and through acquisition. The bank is interested in acquiring a microfinance business as part of its focus on growing the retail high-margin category.

Srinivasan said that Federal Bank is now on a par with any new-generation bank in terms of digital capability and operations and had sound asset quality due to its focus on retail. “Financially we have done very well. There are some metrics around return on asset (RoA) expansion that we are targeting. This essentially means a change in margin profile,” said Srinivasan.

Federal Bank had said that its RoA would grow from 0.76 to 1.25 in five years and were on course to achieve it, but Covid has delayed it by one year to FY23. The bank will also be launching its credit cards shortly and expanding personal loans.

According to Srinivasan, in the banking sector, half the market is concentrated among the top 7-8 lenders. The remaining 50% is highly fragmented with 17-18 banks having a 1% to 3% market share, which throws up consolidation opportunities. “In Kerala, we have a 17% share, but the state is only 3% of the market. Outside Kerala, we are 1%. In the long term, I see a huge opportunity for growth and consolidation,” he said.

Srinivasan said that Federal Bank has invested a lot in its platform and people, and now it was time to leverage the investment and capability. He said that to explore acquisition opportunities in microfinance, the bank would wait for a quarter as the current stand-still on the classification of loans as non-performing assets (NPAs) did not give a clear picture of asset quality.

Srinivasan, who was hired from StanChart Bank in 2010, adopted a strategy of ‘digital at the fore, human at the core’, which meant upscaling technology, going slow on branch expansion but expanding their footprint by having more customer-facing employees. Federal Bank has also many fintech partnerships. It is about to launch two neobank partnerships that will enable it to get access to a new segment of customers for its personal loans and credit card products.



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Fix systems to reduce failures, banks urge non-bank partners

Personal Finance

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As a result, it falls to the banks to ensure the success and security of digital payment transactions.

Banks have started asking non-bank partners to upgrade their information technology (IT) systems to minimise payment failures. The move follows a high incidence of transaction failures in the latter half of 2020, and regulatory guidelines which place the onus of ensuring payment security controls on banks.

In 2020, massive on-boarding of new digital users onto payment platforms was accompanied by outages in bank systems and resultant transaction failures. Matters were complicated by the fact that a large number of transactions, especially those made through the Unified Payments Interface channel, involve multiple hops across entities. Instances of fraud and data breaches have also been reported with some entities.

Taking cognisance of a series of outages at HDFC Bank that rendered its customers incapable of completing transactions, the Reserve Bank of India (RBI) in December 2020 imposed business restrictions on the bank. In February this year, the RBI issued a master direction on digital payment controls which shall apply to scheduled commercial banks, small finance banks, payment banks and credit card-issuing non-banking financial companies. As a result, it falls to the banks to ensure the success and security of digital payment transactions.

Sameer Shetty, head, digital banking, Axis Bank, said that most reported instances of data leakages have happened with non-bank entities. Some outages, too, have originated outside banks. The lender is now extending disaster recovery exercises and the whole discussion to its partners as well.

“There is a bunch of activities we are carrying out internally, such as framing policies on the kind of vendors we work with, what data we share, how we do information checks of their systems. We have now become very aggressive in terms of doing regular audits and checks of vendors so that their security systems are of similar levels,” he said. The bank is also working to see how it can encrypt more and more data.

At the same time, the entire ecosystem involved in digital payments will have to come together to smoothen the creases. Veena Sivaramakrishnan, partner, Shardul Amarchand Mangaldas & Co., said given that outsourcing is a regulated activity for banks, it is no surprise that banks are reaching out to their partners to upgrade and match the IT requirements of the bank itself. “In addition to ensuring a smooth payment flow, this will ensure reduction in manual intervention and personnel error. These measures will ensure that the trust reposed in the banking system continues to stay strong,” she said.

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CSB Bank plans 30% increase in branch numbers

Banking & Finance

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CSB reported an 89 % y-o-y increase in its third quarter net profits to Rs 53.05 crore on higher interest and treasury income.

CSB Bank said on Thursday it plans to increase its number of branches by 30% year-on-year, having opened 101 new branches in FY21. Currently, the Thrissur-based lender has 474 branches and 309 ATMs across 18 states and two union territories.

Narendra Dixit, retail head, CSB Bank, said, “We are increasing our pan-India distribution, which will complement our significant distribution strength in Kerala and the south and help us in offering seamless services across the country to our valued customers. We have significant distribution in deeper geography and now, we are leveraging that to build a strong agri and financial inclusion model in these markets.”

He said the bank has created digital on-boarding facilities via CSB Wink, which offers digital account opening, e-wallet facilities, online FD services and virtual debit cards, and will aid in higher deposit centres to provide an evenly distributed footprint.

The app, CSB Wink, enables customers to open an account instantly from home. Besides, CSB Bank is working on expanding its product suite, services, and digital banking platform with investments in technology aimed at improving customer experience.

CSB reported an 89 % y-o-y increase in its third quarter net profits to Rs 53.05 crore on higher interest and treasury income.

“By opening new branches, the bank will look at enhancing its market outreach and catering to lending towards the MSME and agri sectors, while also growing their CASA and gold loan business,” Dixit said.

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.

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