Month: May 2021

3 Tax Saving Mutual Funds That Investors Should Not Miss

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What are these ELSS Funds?

Equity Linked Savings Funds are mutual fund schemes that are run by asset management companies and invest your money in equities. This means your returns are not guaranteed and they can be volatile. However, you get tax benefits under Sec80C of the Income Tax Act. Amounts invested qualifies for tax benefit up to a sum of Rs 1.5 lakhs. However, one important thing to note is that the income earned is not tax free and would see a 10% long term capital gains tax.

There is a lock-in period of 3 years on the ELSS. Interestingly, the lock-in period on the ELSS is the lowest when you can compare to other tax saving instruments like PPF, ULIPs or tax savings bank deposits, where there is a lock-in of 5-years. However, returns on bank deposits and PPF are more certain. Here are three ELSS instruments that you can invest in:

Canara Robeco Equity Tax Saver Fund

Canara Robeco Equity Tax Saver Fund

Canara Robeco Equity Sax Saver Fund has been great on returns and has a sound portfolio. The fund has a very diversified portfolio, unlike several other equity mutual funds, where the assets under management are largely skewed towards the financial sector.

Among the 5 top holdings of the bank you would find names like Infosys, ICICI Bank, HDFC Bank, Larsen and Toubro and Tata Steel. Interestingly, a steel stock is in the top holdings.

The 1-year returns from the fund is a solid 69 per cent, while the three year returns is 18% and 5-year returns is 17% on an annualized basis.

The one thing about equity mutual funds is that they tend to move largely in line with the markets. If the markets move higher, the returns are superior and so on.

Mirae Asset Tax Saver Fund

Mirae Asset Tax Saver Fund

The Mirae Asset Tax Saver Fund like most other funds has given good returns in the last 1-year, thanks to recovery in the markets following Covid first wave. The 1-year returns are a whopping 82%, while the 3-year returns are 20% and the 5-year returns are 22% on an annualized basis.

Again, like most other ELSS, the funds are invested in mostly the largecap pack including names like HDFC Bank, ICICI Bank, TCS, Axis Bank and Infosys. All of these 5-stocks together form almost 30% of the portfolio.

Investors have to note that Equity Linked Savings Scheme have a lock-in period of 3-years and hence it is not possible to withdraw before this term. So, there is no point in suggesting to investors to stay invested for the longer term.

BOI AXA Tax Advantage Fund

BOI AXA Tax Advantage Fund

This is another fund that has generated good returns in the long term and superb returns in the short term, thanks to the market movement. The one reason to pick this fund is the exceptional rating from Crisil of 5-star. Apart from this, it has been rated 4-star by Value Research. The 1-year returns are a solid 80%, while 3-year returns is close to 15% and 5-year returns at 18% on an annualized basis.

It’s always difficult to hazard a guess on which mutual fund could do well and which could be laggards, given the dynamism with which the markets operate. Until a few quarters ago nobody would buy steel stocks. Today, they feature in holdings of mutual funds. While choosing the above, we have kept in mind track record and the rating of the funds.

Disclaimer:

Disclaimer:

Goodreturns.in has taken utmost care in compilation of data for this article. We are not a qualified financial advisor and any information herein is not investment advice. It is informational in nature. All readers and investors should note that neither Greynium nor the author of the articles, would be responsible for any decision taken based on these articles. Please do consult a professional advisor. Greynium Information Technologies Pvt Ltd, its subsidiaries, associates and authors do not accept culpability for losses and/or damages arising based on information in GoodReturns.in



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HDFC Bank Revises Interest Rates On FD, Check New Rates Here

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Investment

oi-Vipul Das

|

With effect from May 21, 2021, private sector lender HDFC Bank has altered interest rates on selected fixed deposit (FD) tenures. Following the most recent revision, HDFC Bank now offers 2.50 per cent interest on deposits maturing in 7 to 29 days, and 3% on deposits maturing in 30 to 90 days. 3.5 per cent for 91 days to 6 months, and 4.4 per cent for 6 months 1 day to less than one year. On one-year FDs, the bank offers 4.9 per cent interest. Interest on FDs maturing in 2 to 3 years will be 5.15 per cent, 3.0 to 5 years will be 5.30 per cent, and deposits maturing in 5 to 10 years will be 5.50 per cent. Senior folks will continue to receive a 50-basis-point higher than the general public. Senior citizens, on the other hand, will earn 75 basis points more on fixed deposits maturing between five years and ten years. Senior citizens will get interest rates ranging from 3% to 6.25 per cent on FDs with terms ranging from 7 days to 10 years respectively after the most recent revision.

HDFC Bank Revises Interest Rates On FD, Check New Rates Here

HDFC Bank FD Rates (Below Rs 2 Cr)

Tenure Regular FD Rates Senior Citizen FD Rates
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 to less than 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%
Source: HDFC Bank, W.e.f. May 21, 2021

Story first published: Saturday, May 29, 2021, 11:32 [IST]



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SBI Vs Kotak Vs Axis Vs ICICI Vs HDFC: Latest Interest Rates On FDs Compared

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SBI Fixed Deposit Rates

General customers will receive 2.9 percent to 5.4 percent on SBI FDs with terms ranging from 7 to 10 years. Senior citizens will get an additional 50 basis points (bps) on their deposits across the same tenure. From 8 January 2021 these rates are in force.

Tenure Regular FD Rates Senior Citizen FD Rates
7 days to 45 days 2.90% 3.40%
46 days to 179 days 3.90% 4.40%
180 days to 210 days 4.40% 4.90%
211 days to less than 1 year 4.40% 4.90%
1 year to less than 2 year 4.90% 5.50%
2 years to less than 3 years 5.10% 5.60%
3 years to less than 5 years 5.30% 5.80%
5 years and up to 10 years 5.40% 6.20%
Source: SBI, W.e.f. 08.01.2021

HDFC Bank Fixed Deposit Rates

HDFC Bank Fixed Deposit Rates

On deposits maturing between 7 days and 10 years, HDFC Bank pays interest ranging from 2.50 percent to 5.50 percent. Senior citizens can get interest rates ranging from 3% to 6.25 percent on FDs maturing in 7 days to 10 years from HDFC Bank. These rates are in force from May 21, 2021.

Tenure Regular FD Rates Senior Citizen FD Rates
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 to less than 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%
Source: HDFC Bank

ICICI Bank Fixed Deposit Rates

ICICI Bank Fixed Deposit Rates

On deposits maturing in 7 days to 10 years, ICICI Bank offers interest rates ranging from 2.5 percent to 5.50 percent. These rates are effective as of October 21, 2020. Seniors will earn a 50 basis point (bps) higher interest rate than the general public.

Tenure Regular FD Rates Senior Citizen FD Rates
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 less than 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%
Source: ICICI Bank

Kotak Mahindra Bank Fixed Deposit Rates

Kotak Mahindra Bank Fixed Deposit Rates

On term deposits maturing in 7 days to 10 years, Kotak Mahindra Bank offers interest rates ranging from 2.5 percent to 5.30 percent. On the other hand, senior citizens will get an additional rate of 50 basis point (bps). These rates can vary from 3.00% to 5.80% for deposits made by senior citizens. With effect from April 26, 2021, interest rates of Kotak Mahindra Bank FD are in force.

Tenure Regular FD Rates Senior Citizen FD Rates
7 – 14 Days 2.50% 3.00%
15 – 30 Days 2.50% 3.00%
31 – 45 Days 2.75% 3.25%
46 – 90 Days 2.75% 3.25%
91 – 120 Days 3.00% 3.50%
121 – 179 days 3.25% 3.75%
180 Days 4.40% 4.90%
181 Days to 269 Days 4.40% 4.90%
270 Days 4.40% 4.90%
271 Days to 363 Days 4.40% 4.90%
364 Days 4.40% 4.90%
365 Days to 389 Days 4.50% 5.00%
390 Days (12 months 25 days) 4.80% 5.30%
391 Days – Less than 23 Months 4.80% 5.30%
23 Months 5.00% 5.50%
23 months 1 Day- less than 2 years 5.00% 5.50%
2 years- less than 3 years 5.00% 5.50%
3 years and above but less than 4 years 5.10% 5.60%
4 years and above but less than 5 years 5.25% 5.75%
5 years and above up to and inclusive of 10 years 5.30% 5.80%
Source: Kotak Mahindra Bank

Axis Bank Fixed Deposit Rates

Axis Bank Fixed Deposit Rates

Axis Bank recently changed the interest rates on fixed deposits (FDs), which are effective as on May 21, 2021. The bank’s interest rates on deposits of less than Rs 2 crore for periods ranging from seven to ten years are now 2.5 percent to 5.75 percent for the general public and 2.50 percent to 6.50 percent for senior citizens, following the most recent revision.

Tenure Regular FD Rates Senior Citizen FD Rates
7 days to 14 days 2.50% 2.50%
15 days to 29 days 2.50% 2.50%
30 days to 45 days 3.00% 3.00%
46 days to 60 days 3.00% 3.00%
61 days less than 3 months 3.00% 3.00%
3 months to less than 4 months 3.50% 3.50%
4 months to less than 5 months 3.50% 3.50%
5 months to less than 6 months 3.50% 3.50%
6 months to less than 7 months 4.40% 4.65%
7 months to less than 8 months 4.40% 4.65%
8 months to less than 9 months 4.40% 4.65%
9 months to less than 10 months 4.40% 4.65%
10 months to less than 11 months 4.40% 4.65%
11 months to less than 11 months 25 days 4.40% 4.65%
11 months 25 days to less than 1 year 4.40% 4.65%
1 year to less than 1 year 5 days 5.10% 5.75%
1 year 5 days to less than 1 year 11 days 5.15% 5.80%
1 year 11 days to less than 1 year 25 days 5.10% 5.75%
1 year 25 days to less than 13 months 5.10% 5.75%
13 months to less than 14 months 5.10% 5.75%
14 months to less than 15 months 5.10% 5.75%
15 months to less than 16 months 5.10% 5.75%
16 months to less than 17 months 5.10% 5.75%
17 months to less than 18 months 5.10% 5.75%
18 Months to less than 2 years 5.25% 5.90%
2 years to less than 30 months 5.40% 6.05%
30 months to less than 3 years 5.40% 5.90%
3 years to less than 5 years 5.40% 5.90%
5 years to 10 years 5.75% 6.50%
Source: Axis Bank



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SBI, HDFC Bank don’t want sensitive data made public, BFSI News, ET BFSI

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NEW DELHI: The two largest banks in the country — State Bank of India and HDFC Bank — moved the Supreme Court on Friday and sought a stay on the Reserve Bank of India’s directive to banks to provide financially sensitive data under the RTI Act, saying they feared that it could be detrimental to their business operations and compromise confidentiality of customer information

Though the direction was sought against RBI, it was aimed at the SC’s order that allowed divulging of such data.

Court earlier restrained RBI from disclosure under RTI Act

The SBI, through advocate Sanjay Kapur, said, “In view of the judgment in Jayantilal N Mistry case, the RBI is seeking disclosure of confidential and sensitive information of the applicant bank, including information of its employees and its customers, purportedly under the Right to Information Act, 2005, which are otherwise exempt under the provisions of Section 8 of said Act.”

Appearing for the SBI and HDFC, solicitor general Tushar Mehta and senior advocate Mukul Rohatgi told a bench of Justices L N Rao and Aniruddha Bose that divulging sensitive information like inspection reports/risk assessment reports/annual financial inspection reports of banks would render them vulnerable in the competitive banking sector to rivals, who could exploit the RTI Act to know the trade secrets and internal strengths of successful banks.

The court had earlier restrained the RBI from disclosing such reports under the RTI Act.

However, that interim order got washed away because of the SC’s April 28 order refusing the review the Jayantilal N Mistry judgment.



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Domestic remittances down 20%, may fall further on reverse migration, BFSI News, ET BFSI

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Domestic remittances, which are largely by the migrant workers to their families, have reduced drastically due to pandemic led lockdowns and resultant unemployment.

Money transfers have fallen 10-20% across the country, though the fall is not as sharp as last year during the national lockdown.

According to major remittances companies, the rapid spread of Covid in urban areas and concerns over a total lockdown have already prompted a section of the migrant workforce to leave the big cities. Also, night curfews have halted remittances after 8 pm.

Reverse migration

Fino Payments Bank which sees about Rs 3,000 crore remittances per month, sees further hit due to some reverse migration.

Several migrant workers are fleeing urban centres as they are concerned that a complete lockdown will leave them without jobs and no rents to pay.

Experts see remittances slowly recovering after lockdowns are lifted and may take about four to five months for normalcy to return.

Payment companies are hoping that the lockdowns are lifted in 15 days.

Remittances hub

There are six major corridors within India from where a large chunk of the remittances originates: Delhi, Mumbai, and Gujarat are among them. On the other hand, the states of Bihar, Madhya Pradesh, Rajasthan and Uttar Pradesh are among the biggest receivers of these flows.

Remittances had started picking up in January to March quarter but were impacted in the second half of April and May due to the lockdowns,

However, infrastructure and manufacturing projects, which have put in place an enabling ecosystem for the migrant staff at worksites, could mitigate the impact of reverse migration.

According to the Centre for Monitoring Indian Economy, the unemployment rate for the week of May 23 shot up to 14.73 per cent pan-India and was at 17.41 per cent for urban areas.



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US ETFs see record money inflow this year, BFSI News, ET BFSI

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Investment into US exchange traded funds (ETFs) has risen to record levels this year, driven by a rally in equities and investor preference for passive index-tracking funds over actively managed peers.

According to Refinitiv data, US ETFs attracted a record inflow of $324 billion in the first four months of this year, which was 180% higher than the same period of last year. At the same time, US mutual funds received an inflow of $318 billion, which was a 58% drop.

This surge in inflows is evidence of growing investor interest in ETFs, due to their lower fees and tax liabilities, and better returns compared with active funds in recent years.

Analysts said proposals by the Joe Biden administration to increase the US capital gains tax had also fuelled interest in ETFs.

“Over the last six months, flows have continued to be robust as the elevated savings pile of the private sector found its way into financial assets, benefitting ETFs,” said Komson Silapachai, vice president at investment management firm, Sage Advisory Services, based in Austin.

“The expected increase in capital gains tax later this year should result in a higher preference for ETFs versus mutual funds for the highest tax brackets.”

As most ETFs are passively managed, there is less amount of buying and selling taking place, which leads to lower capital gains and taxes.

Also, ETF redemptions take place through a mechanism called “in-kind transfer” in which ETFs have to deliver baskets of securities to authorized brokers instead of paying cash, which precludes them from being taxed.

According to Refinitiv data, U.S equity ETFs saw a cumulative inflow of $149.6 billion in the first four months of this year, while debt ETFs obtained $283.6 billion.

The Vanguard 500 index fund led this year’s inflows seeing net purchases of $20.7 billion, while iShares Core S&P 500 ETF and Financial Select Sector SPDR Fund procured $11.8 billion and $9.6 billion respectively.

Analysts said the higher inflows were also due to the availability of a variety of ETFs which are focused on certain themes or sectors.

The surge in ETFs was prompted by an SEC rule in 2019 that eliminated some exemptive relief requirements that has made ETF launches expensive and time-consuming.

“The relaxation of the exemption rule requirements has allowed ETFs to be structured to cover narrower segments of the market such as marijuna stocks, ‘high conviction’ stocks, crypto-focused, etc.,” said Warren Ward, founder of financial planning firm, Warren Ward Associates in Houston.

“I suspect this is the main driver of the higher inflows, he said.

“Why choose a single stock if you can utilize a small basket of them instead?”



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HSBC exiting US retail banking to focus on wealth management, BFSI News, ET BFSI

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British banking giant HSBC says it is closing its U.S. retail banking business in order to refocus its efforts on wealth management.

The bank will sell 80 East Coast branches to Citizens Bank and another 10 on the West Coast to Cathay Bank. All deposits and bank accounts will be transferred to those two banks, HSBC said. Another 20 to 25 branches will be converted into wealth management centers, and any remaining branches will be closed.

London-based HSBC is one of the world’s largest banks, but its focus is primarily in Hong Kong, where it was founded, and elsewhere in Asia, and in the UK and Europe.

HSBC announced the move late Wednesday after earlier this year saying was looking to sell or pursue other strategic options for its U.S. retail banking business. The business is small, making it hard to compete against big banks like JPMorgan Chase, which dominate on the East Coast.

“They are good businesses, but we lacked the scale to compete,” said HSBC’s CEO Noel Quinn said in a statement.

The bank expects the sale of its US retail banking business to close by early 2022.



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Indian Bank posts Rs 1,709-crore net profit in FY21 Q4

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Provisions and contingencies were at Rs 839 crore as against Rs 4,042 crore and operating expenses decreased by 4% to Rs 2,530 crore as against Rs 2,637 crore.

Public sector lender Indian Bank on Friday reported a net profit of Rs 1,709 crore for the fourth quarter of FY21. The Chennai-based bank incurred a Rs 1,641-crore net loss in the same quarter last fiscal. Total income of the bank was at Rs 10, 648 crore as compared to Rs 11,485 crore, registering a drop of 7%.

The amalgamation of Allahabad Bank into Indian Bank came into effect on April 1, 2020. Accordingly, the combined financials as on March 31, 2020, were arrived at by aggregation of audited numbers of the two banks, Indian Bank said.

Padmaja Chunduru, MD & CEO, Indian Bank, said all the parameters such as business, earnings, asset quality and capital have made significant improvement in the fourth quarter.

The net interest income of the bank rose by 1% in Q4FY21 to Rs 3,334 crore from Rs 3,310 crore in Q4FY20 and on a sequential basis, it decreased by 23%. The net interest margin (NIM) decreased by 33 basis points (bps) and was at 2.34% as against 2.67%. Non-interest income was at Rs 1,744 crore as against Rs 1,728 crore, on account of higher profit on sale of investment, forex income and PSLC commission.

The CASA deposits recorded a year-on-year (y-o-y) growth of 14% and share of CASA to total deposits was 42% in March 2021 as against 41% a year ago. Growth in CASA was primarily, driven by a y-o-y increase of 32% in current account deposits and 12% in savings account deposits.

The asset quality of the bank improved in Q4, the gross NPA was at 9.85% of gross advances as on March 2021, brought down by 154bps y-o-y from 11.39% as on March 2020. The net NPA came down to 3.37% from 4.19% with a reduction of 82 bps y-o-y. Its total capital adequacy ratio (CRAR) was at 15.71% with growth of 244 bps y-o-y. On a sequential quarter basis, it increased by 165 bps from 14.06% in Q3FY21.

Provisions and contingencies were at Rs 839 crore as against Rs 4,042 crore and operating expenses decreased by 4% to Rs 2,530 crore as against Rs 2,637 crore.

Total business recorded growth of 8% y-o-y, reaching the level of Rs 9,28,388 crore in March 2021 as against Rs 8,57,499 crore in March 2020. Total deposits grew by 10% y-o-y to Rs 5,38, 071 crore as compared to Rs 4,88, 835 crore. Priority sector portfolio increased to Rs 1,30,274 crore from Rs 1, 27, 542 crore, the bank said.

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Northern Arc executes Rs 350-crore MLD deal for Shriram Transport

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STFC is one of the largest asset financing NBFCs for the commercial vehicle industry in the country, partnering with small truck owners for all their assets-related needs.

Chennai-headquartered digital debt platform Northern Arc on Friday announced that it has concluded a Rs 350-crore market-linked debentures (MLD) transaction with Shriram Transport Finance Company (STFC). STFC is one of the largest asset financing NBFCs for the commercial vehicle industry in the country, partnering with small truck owners for all their assets-related needs.

This is the latest in a series of MLD transactions structured, executed and invested in by Northern Arc, through which it has facilitated debt funding for its partners across MSME financing, CV financing and gold loans.

Northern Arc said the issuance was subscribed by multiple reputed capital market investors. As part of its commercial vehicle finance segment, Northern Arc has focused on the financing of used CVs that cater to the needs of driver-turned owners, first-time users, first-time buyers and small road transporters. These customers, who have been impacted due to the pandemic, will benefit from the proceeds of the transaction. STFC’s ability to reach these customers and enable access to credit for borrowers at the grassroots level will ensure substantial economic and social impact.

Bama Balakrishnan, COO, Northern Arc, said, “The transaction exemplifies Northern Arc’s ability to create value for partners across sizes and credit ratings. Through customised product solutions, we have been able to evince the interest of new investors to our sectors and partners.”

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Preparing bank for growth stage once economy opens up: Padmaja Chunduru, MD & CEO, Indian Bank

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Padmaja Chunduru, MD & CEO, Indian Bank

Indian Bank has continued its steady growth in both business and earnings despite the pandemic situation. The capital adequacy ratio at 15.71% is giving good strength to the balance sheet and this will help the bank to lend aggressively when the pandemic-induced lockdown ends and economy opens up.

Padmaja Chunduru, MD & CEO, says that this year her focus will be on leveraging the larger balance sheet size, higher CRAR, wider geographical presence, larger talent pool and enhanced technology. Excerpts from a post-result virtual press:

Having completed the amalgamation process with Allahabad Bank, going forward, what would be the strategy for India Bank?
We will be leveraging the large balance sheet strength achieved by the amalgamation. While the focus will be on capital conservation, there will be potential for increase in corporate exposure. We can take large exposure in corporate sector, we have now much more expertise in due-diligence. We are poised to improve our corporate business as there will be pent-up demand from corporates for loans once the economy opens up. We will be diversifying our asset base. Revenue maximisation and cost optimisation will be another important areas which will be taken up by the bank.

How has been the FY 21 for the bank?
The bank has continued its steady growth in both business and earnings despite the pandemic situation. The capital adequacy ratio was at 15.71% giving good strength to the balance sheet. FY21 has been a special year wherein the bank has successfully completed the amalgamation with Allahabad Bank, including CBS integration of both the banks, with seamless continuity in customer operations. The bank as on date has rationalised 217 branches, 25 zonal offices, 12 currency chests, three large corporate branches, five service branches, six staff training centres and six stressed asset management branches.

What is your recovery target this fiscal? Do you foresee any increased provisioning for the expected slippages due to Covid second wave ?
We expect a recovery of Rs 5,000 crore from both NCLT and non-NCLT this year, but that will also be revised after reviewing the evolving situation. Too early to predict on the likely provision requirement for the coming quarters, whatever will be the situation, we will be able to manage the slippages on the strength of the balance sheet. It is very difficult to project what would be the situation as far as slippages are concerned, given that the RBI has given the dispensation for restructuring. SMEs are the most vulnerable segment and we are offering them restructuring window and a lot of outreach is happening. We expect to keep the slippage ratio below 2%.

Any plans on digital front?
Improving digital penetration, with focus on new age digital products and end- to -end solution for digital lending will also be our focus areas. The investments made by the bank in IT, digital infrastructure security controls during the year are paying dividends. We have implemented strong data analytics models to boost digital business. We are making migration to digital channels in a big way. There has been a 13% shift to digital transactions in FY21. We are bringing in more products on app and net banking.

Any plans to raise capital in FY 22? The growth target for FY22?
We are adequately capitalised, we had raised a total of Rs 4,000 crore during the second and third quarters of the last financial year. We have a board approval to raise around Rs 4,000 crore this financial year. We are not in a hurry, but definitely will look at raising the equity funds. If the market is conducive, we will raise the funds this year itself. As far as growth target is concerned, we could not achieve the target last year as advances did not pick up due to lack of corporate appetite. In the current year, the situation appears to be still uncertain and giving a target would be adventurous. But still, we would expect to have a 10% growth, but of course, we will review it as and when we get some more clarity.

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