Tenders are invited from reputed contractors for ‘Removal and sale of Shredded Currency Note (compressed soiled notes)/shreds Briquettes’. For full details of eligibility and for downloading the tender documents/detailed procedures for submitting application through MSTC Portal, please visit www.rbi.org.in under ‘Tenders Column’. The tender documents will be available for download from April 26, 2021. E-tender may be submitted only through MSTC Portal (https://www.mstcecommerce.com/) after registering with them. The tender shall be submitted in the ‘MSTC e-procurement portal’ before 2:00 P.M. on May 17, 2021.
For any queries regarding the tender, please contact Reserve Bank of India, Issue Department, Fort Glacis, No.16, Rajaji Salai, Chennai-600001 or contact No: 044 -25381390 or by way of email to issuechennai@rbi.org.in
Developers are facing issues of transporting labour and construction material to sites due to the new restrictions. With oxygen supply to steel and cement industries diverted to medical use dropping there may be bottlenecks in input supplies. Also, the government has indicated it may borrow more from the market, which would raise funding costs for the projects.
If the Covid wave continues for long, the infrastructure projects will face a setback and lead to their re-rating. Cost overruns
Already projects are lagging even before the new Covid wave hit
As many as 448 infrastructure projects, each worth Rs 150 crore or more, have been hit by cost overruns totalling
more than Rs 4.02 lakh crore, according to a report. The Ministry of Statistics and Programme Implementation monitors infrastructure projects worth Rs 150 crore and above.
Of the 1,739 such projects, 448 reported cost overruns and 539 were delayed. “Total original cost of implementation of the 1,739 projects was Rs 22,18,210.29 crore and their anticipated completion cost is likely to be Rs 26,20,618.44 crore, which reflects overall cost overruns of Rs 4,02,408.15 crore (18.14 per cent of original cost),” the ministry’s latest report for January 2021 said.
The expenditure incurred on these projects till January 2021 is Rs 12,29,517.04 crore, which is 46.92 per cent of the anticipated cost of the projects.
Project delays
However, the report said the number of delayed projects decreased to 401 if delay is calculated on the basis of the latest schedule of completion.
Further, for 941 projects neither the year of commissioning nor the tentative gestation period has been reported.
Out of 539 delayed projects, 106 projects have overall delays in the range of 1-12 months, 131 projects have delays of 13-24 months, 187 projects reflect delays in the range of 25-60 months and 115 projects show delays of 61 months and above. The average time overrun in these 539 delayed projects is 44.65 months. Reasons for time overruns as reported by various project implementing agencies include delay in land acquisition, delay in obtaining forest and environment clearances, and lack of infrastructure support and linkages.
Delay in tie-up for project financing, delay in finalisation of detailed engineering, change in scope, delay in tendering, ordering and equipment supply, and law and order problems, among others, are the other reasons, the report said.
Amid strict protocol that would need to be adhered in the month of May when Covid 19 second wave is expected to hit its peak, banks’ body SLBS has also asked several States to reduce working hours.
Check Complete List Of Bank Holidays In May 2021
So, for different bank related tasks, it shall be at best to view the days in May when the banks in the country shall be functional.
May 2021 Bank holiday list
As per RBI’s site, the banks in May 2021 will remain closed for 5 days. Note in all of the states the banks shall not be closed for 5 days as some of the holidays apply to a particular state where the particular festival is celebrated.
1-May : Labour day On this day banks of Kolkata, Kochi, Mumbai, Nagpur, Panaji among others shall be shut 7 May-Jumat Ul vida Only banks in the state of J&K will remain closed 13 May- Ramzan Id 14 May- Bhagwan Shri Parshuram Jayanti 26 May- Buddha Pournima
Also, banks shall not function on May 8 and May 22, being second and fourth Saturday, respectively.
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Citi, which recently announced plans to exit consumer banking operations in 13 markets, is understood to be in talks with a number of foreign lenders, including DBS Bank, for its India business.
Sources close to the development said Citi is keen to exit its India consumer banking operations soon and would like to sell the entire set-up in one go.
“Talks with DBS Bank are at an advanced stage and they are keen to take up the entire consumer banking operation,” said a person familiar with the development.
Citi declined to comment to an email query sent by BusinessLine on the issue.
“At this juncture, the details are still unclear. However, we have always been open to exploring sensible bolt-on opportunities in markets where we have a consumer banking franchise (India, Indonesia, China and Taiwan) and where we can overlay our digital capabilities to serve our customers better,” a DBS spokesperson said in response to an email query by BusinessLine.
Separately, many banks are understood to be keen on Citi’s credit card business in India, which had 26.4 lakh customers as of February 2020.
Why DBS?
DBS Bank India Limited is first among large foreign banks to start operating as a wholly-owned, locally incorporated subsidiary in India and has been keen on expanding its operations in the country.
In November, Lakshmi Vilas Bank was also amalgamated with DBS Bank India, giving it access to a large customer base.
However, it could take at least six months for any transaction to be finalised, according to analysts.
According to a report by JM Financial, Citi’s Indian consumer business has a sizeable presence, with retail loans totalling about ₹3,200 crore.
“It needs to be seen whether all these businesses will be sold together or piecemeal. Also, payment consideration, in cash vs stock, will be a critical determinant to decide the eventual buyer. Since Citi functions in India through a “branch route” versus a wholly-owned subsidiary (like DBS Bank), the transaction will mostly be asset sale. In our view, the process could take 6-12 months until a final winner emerges,” it said.
On fixed deposit investments there is a provision of TDS deduction in case the interest accrued exceeds some value in a financial year. And now this TDS deduction amounts to be heavy for the investor in 2 ways:
Did You Know: You Can Get TDS From FD Interest Deducted From S/B A/c
1. Loss of interest amount deducted as TDS 2. Additionally there is also loss of the compound interest that would have been earned for the remaining FD tenure, on the amount i.e. deducted as tax.
Now new as may sound to many there is a way to avoid the second type of loss and that is by getting the tax deducted from your linked savings or current account balance with the bank instead of from the interest accrued on the fixed deposit instrument.
When Is TDS deducted on FD?
For citizens of India, in case the FD interest in a particular fiscal year is Rs. 40000 and Rs. 50,000 in case of senior citizen then 10% TDS is to be deducted from the amount accrued as interest income on FD. And if the investor has not furnished the PAN the TDS rate still goes higher to 20%. For non-resident ordinary account holder, the TDS rate is still higher at 30 percent.
While, only a small number of investors go on to calculate the loss due to TDS income, it is more pronounced in case of long term FDs. Say for instance when you have booked a Rs. 10 lakh FD for 5 year term at an interest rate of 6.15%, you may lose Rs. 4729 over and above the TDS due to compounding.
TDS may also be deducted from the FDs principal amount
Tax deduction at source for FDs wherein bank at the point of source deducts tds is in most cases deducted from the accrued interest. But if the interest income is not sufficient then TDS can be deducted from the FDs principal amount as well. So because of it, the FD amount that was to earn compound interest at the decided rate for the next quarter comes down.
FD Maturity value on the receipt is provided without considering TDS
Importantly, when once books an FD with the bank, the bank hands over the FD receipt on which the maturity amount considering the time of deposit as well as rate is given. But this maturity value does not take into account the TDS value. And so the maturity value is not only reduced due to the TDS deducted but also because of compounding interest that the deducted TDS amount would have earned during the remaining course of the deposit.
Ways to Get the Full Maturity value on FDs
If the depositor’s total taxable income including interest income from FD is below the basic tax exemption limit you can prevent such a tax deduction by submitting form 15G or 15H with the bank.
Another way is to spread your FD investment across banks such that total interest income in a particular financial year remains below the threshold of TDS deduction.
TDS deduction on FD allowed from Savings or Current account
Now if your bank allows that the TDS on FD interest can be deducted from the savings or current account then the full interest on FD without TDS will earn compound interest on the remaining deposit tenure. This way you will get the full maturity value mentioned on the FDR.
Banks providing facility to get TDS deducted on FD from savings or current or overdraft account
Leading bank including SBI has allowed this facility and customers can link savings or current account for TDS deduction via net banking.
Post it the TDS deduction in lieu of the FD interest shall be from the linked savings bank or current account.
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Mutual funds that invest in foreign companies are known as international mutual funds. These funds are also known as international or global funds. Investing in these carries a greater risk of loss, but it also has the potential for higher returns. Investors now want to adopt more about foreign markets and how to profit from them. As a result, a slew of foreign funds with varying portfolio compositions and structures have been introduced. International mutual funds invest mainly in equity, equity-related instruments, and debt instruments issued by companies not listed in India.
Types of international mutual fund:
Global Funds
Global funds invest in large enterprises all over the world. It may also involve the investor’s country of residence. International mutual funds, on the other hand, invest in companies all over the world, except the investor’s home country.
Regional Funds
Regional funds invest everywhere in the world in companies from a particular geographic area.
Country Funds
A country funds are when an individual invests in a fund that is only open in one foreign country and nowhere else. This is one of the simplest funds to invest in abroad because the data is not distributed through many countries.
Global Sector Funds
Global sector funds invest in companies from all over the world that are part of a particular industry. The main goal is to obtain insight into a particular industry.
List of 8 Best International Funds for 2021
Fund Name
Returns (%) 1 year
3 Years CAGR Returns %
Edelweiss Greater China Equity
60.8
25.77
PMG India Global Equity Opportunities Fund
65.24
32.77
Franklin India Feeder Franklin US Opportunities Fund
50.81
27.08
Nippon India US Equity Opportunities Fund
55.45
26.58
DSP World Mining Fund
84.5
19.66
Aditya Birla Sun Life International
41.12
16.99
ICICI Prudential US Bluechip Equity Fund
43.97
24.71
Principal Global Opportunities Fund.
81.55
15.69
Edelweiss Greater China Equity Off-shore Fund
Since its inception, the Edelweiss Greater China Equity Off-shore Fund has generated an average annual return of 18.63 percent. JP Morgan Fund’s Greater China Fund is part of a fund-of-funds scheme. Equity fund that mainly invests in companies based in the Greater China Region (China, Hong Kong, and Taiwan) or that conduct their primary business activities there.
Tax Implications
If you redeem before one year, your returns will be taxed at 15%. On returns of Rs 1 lakh or more in a financial year, you must pay a 10% LTCG tax after one year.
PGIM India Global Equity Opportunities Fund
PGIM India Global Equity Opportunities Fund Direct-Growth is an international scheme operated by PGIM India Mutual Fund under the Equity category. The scheme, which has an AUM of 6527 crores and is run by Alok Agarwal, was launched on January 1, 2013. The scheme aims to generate long-term capital growth by investing primarily in units of overseas mutual funds that concentrate on agriculture and/or affiliated/allied sectors’ anticipated growth.
Franklin India Feeder
The fund primarily invests in units of Franklin U.S. Opportunities Fund, an overseas Franklin Templeton mutual fund that primarily invests in shares in the United States of America, in order to provide capital appreciation. The fund primarily invests in small, medium, and large-cap U.S. companies with high growth potential in a variety of industries.
Nippon India US Equity Opportunities Fund
Invests mainly in high-quality, high-growth stocks listed on recognized US stock exchanges. Morningstar Investment Advisor India Private Ltd. provides research support. The scheme aims to provide investors with long-term capital appreciation by investing mainly in equity and equity-related securities of companies listed on recognized stock exchanges in the United States, with the remainder in debt and money market securities in India.
DSP World Mining Fund
The fund’s primary holdings will be BlackRock Global Funds – World Mining Fund units. A large portion of the fund’s assets will also be invested in units of other related overseas mutual fund schemes. The DSP World Mining Fund’s direct strategy has an expense ratio of 1.53 percent.
Aditya Birla Sun Life International Equity Fund -Plan A
The scheme will only invest in stocks from other countries. The plan’s goal is to build a portfolio that is geographically diversified, to take advantage of low correlation between countries, and to build a portfolio of high quality – high growth. Without any market capitalization or industry bias, it employs a hybrid technique with top-down and bottom-up approaches.
ICICI Prudential US Bluechip Equity Fund
Invests in shares and equity-linked securities firms that are publicly traded in the United States. Invests in stocks of large-cap firms that are part of the S&P index. Invests in equity and equity-linked securities of companies that are publicly traded on recognized US stock exchanges.
Principal Global Opportunities Fund.
The Scheme’s investment objective is to provide long-term capital appreciation by investing primarily in overseas mutual fund schemes and a portion of its corpus in Money Market Securities or units of Principal Mutual Fund’s Money Market/Liquid Schemes. The scheme aims to develop a high-quality portfolio of overseas-listed equity and equity-related instruments. Out of the list of approved shares, it will seek to find qualifying stocks that can provide long-term capital appreciation.
Disclaimer: The views and investment tips expressed by authors or employees of Greynium Information Technologies, should not be construed as investment advice to buy or sell stocks, gold, currency or other commodities.
Mumbai, HDFC Bank on Saturday said it has deployed mobile ATMs across India to assist customers during the lockdown.
“At restricted, sealed areas, the ‘Mobile ATMs’ will eliminate the need for general public to move out of their locality to withdraw cash,” the bank said in a statement.
“During the lockdown last year, HDFC Bank successfully deployed mobile ATMs in over 50 cities and facilitated lakhs of customers in availing cash to meet their exigencies.”
Accordingly, customers can conduct over 15 types of transactions using the ‘Mobile ATM’, which will be operational at each location for a specific period.
The ‘Mobile ATM’ will cover 3-4 stops in a day.
“We hope our mobile ATM will provide a great support for people who want to avail basic financial services without having to venture far from their neighbourhood,” said S. Sampathkumar, Group Head – Liability Products, Third Party Products and Non-Resident Business at HDFC Bank.
“This service will also be of great help to all the healthcare workers, and other essential service providers who have been working tirelessly to combat the pandemic.”
New Delhi, Apr 24 () Karnataka Bank on Saturday said it is targeting to grow its business at 12 per cent to over Rs 1.42 lakh crore in the current fiscal year and will gradually increase the share of retail loan in its portfolio. In a communication to shareholders, the bank said it strives to see 2021-22 as a year of excellence on the back of its healthy business growth, ‘Cost-Lite’ liability portfolio and strengthened fundamentals.
“For the new Financial Year, the Bank is planning to grow its business at a moderate 12 per cent to take the total business turnover (i.e. total of Deposits and Advances) to around Rs 1,42,500 crore,” it said.
As a realignment strategy in its advances portfolio, the private sector lender said it has been eyeing credit exposure of minimum 50 per cent to retail, 35 per cent to mid corporates and not more than 15 per cent to large corporates.
The intent is to minimise the concentration on large corporate borrowers and to ensure continued sustainability, it said.
“The bank has been moving towards the said direction in a sustainable manner. Besides, the yield on the retail and mid corporate advances has been better than the large corporates and also, the risk is widespread across the portfolio than that of concentration in the case of large corporate exposure,” Mahabaleshwara M S, Managing Director & CEO, Karnataka Bank said.
He said COVID-19 came as a challenge in 2020-21 along with the “M-cap related misleading campaign against the private sector banks, including our bank by a section of media”.
Regarding the Supreme Court‘s order on not levying any interest on loans during March-August period of 2020, the lender said it already made ex-gratia payment of difference between compound interest and simple interest for these six months to the eligible borrowers in accordance with RBI directive.
In case of remaining accounts, the penal or compound interest charged on the borrower accounts may have to be refunded and adjusted towards next installment due within a reasonable time from the date of Supreme Court order dated March 23, 2021.
“Further, with the vacation of stay order, NPA marking has also resumed,” it said.
Mahabaleshwara said in spite of turbulent banking environment and unforeseen hurdles, the bank has been able to sail through 2020-21.
On the way forward, he said the bank is striving hard to see Karnataka Bank among the top three in the peer group by focussing on a healthy, consistent, sustainable and remunerative business and by continuing the efforts in recovery process. KPM ANU ANU
The Kolkata-headquartered Srei group owes nearly Rs 18,000 crore to as many as 15 lenders, including SBI, Axis Bank and UCO Bank.
After the appointment of KPMG as a forensic auditor of Srei Infrastructure Finance as proposed by its lenders for proposed debt realignment plans, the company has also hired another forensic auditor, DmKH & Co, as per the advice of the independent directors as good governance.
Notably, the Reserve Bank of India (RBI) appointed an auditor in November last year to conduct a special audit of Kolkata-based NBFC Srei Infrastructure Finance and its wholly-owned subsidiary Srei Equipment Finance (SEFL), one of the major players in the construction and mining equipment financing space.
Earlier, Srei proposed a debt restructuring as it stated that the outbreak of Covid-19 created an unprecedented situation and payments of its borrowers had been stuck. The lenders, however, proposed appointment of a forensic auditor before approving the debt realignment plans. And, accordingly, they named KPMG for conducting the forensic audit.
In a stock exchange filing on Saturday, Srei Infrastructure Finance said, “This is to inform that the board at its meeting held on April 23, 2021, noted the appointment of KPMG Assurance and Consulting Services LLP and DmKH & Co. as the Forensic Auditors of the company as advised by the bankers as step towards the proposed debt realignment plan and by the Independent Directors of the company as good governance respectively.”
Srei has a consolidated debt of around Rs 20,000 crore from Indian banks and around Rs 10,000 crore through bonds and from other financial institutions. Last month, the board of Srei Equipment Finance (SEFL) had constituted a Strategic Coordination Committee (SCC), comprising of Independent Directors, to coordinate, negotiate and conclude discussions with potential strategic and/or private equity investors, to raise fresh capital for the business in consultation with the management.
On Saturday, SEFL said it has received an expression of interest (EoI) for capital infusion from US-based Cerberus Global Investments B.V. Earlier, SEFL also received EoIs for capital infusion of about USD 250 million from US-based multi-strategy investment firm Arena Investors LP and Singapore-based global financial services company Makara Capital Partners. “SEFL has proceeded with discussions with both Arena Investors and Makara Capital and the company’s Strategic Coordination Committee, chaired by independent director Malay Mukherjee, is currently engaged in discussions with the private equity (PE) funds to bring capital into the business,” according to statement issued.
Significantly, Srei Equipment Finance had approached National Company Law Tribunal (NCLT), Kolkata with a Scheme of Arrangement which proposes arrangement with six types of creditors i.e., secured debenture holders, unsecured debenture holders, secured external commercial borrowings (ECB) holders, unsecured ECB holders, perpetual debt instrument (PDI) holders and individual debenture holders (including such debt transferred from SIFL pursuant to slump exchange). “The Scheme of Arrangement broadly proposes moratorium in terms of coupon payments during January 1, 2021 to June 30, 2021 along with postponement of redemption dates based on the type of creditor,” Care Ratings said in a note on the company on March 6, 2021. Consequent to the Scheme of Arrangement proposed by the company, NCLT, Kolkata passed an order dated December 30, 2020.
As per the NCLT order, the meeting of secured debenture trustees/holders, unsecured debenture trustees/holders, secured ECB lenders, unsecured ECB lenders, PDI holders, debenture trustees representing individual debenture holders will be held on May 15, May 29, June 12, June 26, July 10, July 24, 2021, respectively for the purpose of their considering, and if thought fit, approving, with or without modification, the said Scheme of Arrangement, according to the Care Ratings note.
The average current account deposits increased (CASA) by 34% y-o-y. Average savings account deposits increased by 21% y-o-y during Q4FY21.
ICICI Bank on Saturday reported a 261% year-on-year (y-o-y) rise in its net profit at Rs 4,402 crore in the March quarter (Q4FY21) on the back of healthy interest income and reduced provisioning.
The operating profit of the lender increased 15.6% y-o-y to Rs 8,540 crore.
The interest income (NII) increased 17% y-o-y and 5.24% quarter-on-quarter (q-o-q) to Rs 10,431 crore.
Provisions for the lender declined 51.7% y-o-y to Rs 2,883 crore.
However, the bank has made an additional Covid-19 related provision of Rs 1,000 crore in the March quarter. The provision coverage ratio stood at 77.7% at the end of March, 2021.
Sandeep Batra, executive director, ICICI Bank, said, “The growth in business banking continued to be robust,leveraging the bank’s distribution network and digital platforms such asInstaBIZ and Trade Online.”
The credit card spends in Q4-2021 increased substantially over Q3FY21 driven by spends across electronics, wellness and jewellery categories, he added. Speaking on the impact of the current wave of Covid-19, Batra said, “There has been a bit of a slowdown in the current quarter, but these are still early days as yet.”
The net interest margin (NIM) of the lender declined 3 basis points (bps) y-o-y at 3.84%, but increased 17 bps sequentially.
The asset quality of the lender deteriorated a bit during the March quarter, after the standstill on declaring non-performing assets was lifted by the apex court. Gross non-performing assets (NPAs) ratio of the lender increased 58 bps to 4.96%, compared to 4.38% in the previous quarter.
Similarly, net NPAs ratio increased 51 bps to 1.14% from 0.63% in the December quarter. During the quarter, the gross NPA additions, excluding borrowers in the proforma NPAs as of December 31, 2020, were Rs 5,523 crore, Batra said . “Recoveries and upgrades, excluding recoveries from proforma NPAs, write-offs and sale, from non-performing loans were at 2,560 crore in Q4 FY21,” he added.
Advances grew 14% y-o-y to Rs 7.33 lakh crore. The retail loan portfolio grew by 20% y-o-yand 7% sequentially. “The growth in the performing domestic corporate portfolio was about 13% y-o-y driven by disbursements to higher crated corporates and public sector undertakings (PSUs) across various sectors to meet their working capital and capital expenditure requirements,” the bank said.
Deposits saw a robust growth of 21% y-o-y at Rs 9.32 lakh crore. The average current account deposits increased (CASA) by 34% y-o-y. Average savings account deposits increased by 21% y-o-y during Q4FY21.
The fee income of the lender increased 6% y-o-y to Rs 3,815 crore. There was a treasury loss of Rs 25 crore in Q4FY21,compared to a profit of Rs 242 crore during the same quarter last year. The treasury loss in the March quarter reflects the increase in yields on fixed income and government securities, the bank said.
The capital adequacy ratio of the lender stood at 19.12% and tier-1 capital adequacy ratio of 18.06% at the end of the March quarter.
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