Bankers, BFSI News, ET BFSI

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MUMBAI: Bankers on Wednesday welcomed the measures announced by RBI as a nuanced attempt to address not just economic concerns but public health issues as well.

SBI Chairman Dinesh Kumar Khara said the unscheduled statement from Governor Shaktikanta Das has targeted moves to alleviate the troubles faced by multiple sectors.

“…the series of measures announced today reflect a novel approach. The decision to create a dedicated Rs 50,000 crore fund for ramping up Covid related healthcare infrastructure reflects RBI’s commitment to transcend boundaries by addressing not only economic health but also public health,” he said in a statement.

He also appreciated the decision to augment the lending firepower of small finance banks (SFBs) through priority sector tag, restructuring framework for individuals and small businesses, cash reserve ratio flexibility for lending to SMEs and the measures to help the state governments through ways and means advances relaxations.

MFIN, a self-regulatory organisation of micro-lenders, was very appreciative of the attempt to infuse liquidity for small MFIs by classifying and recognising SFBs’ lending to smaller NBFC-MFIs as priority sector lending.

The body’s chief executive Alok Misra said Das had met sector representatives looking at the “severity of the situation” and followed it up with the steps on Wednesday.

From the non-bank lenders, Mahindra Finance‘s Managing Director and Vice Chairman Ramesh Iyer said the measures aimed at individuals, small businesses and micro borrowers are a timely move, and welcomed the restructuring proposals.

“It’s (restructuring) an important announcement looking at the present economic landscape, this will provide as an impetus for businesses to recover from COVID-19 pandemic blues,” he said, adding that the moves to rationalise certain components of the extant KYC (know your customer) norms will support financial institutions to operate in a more efficient way.

Paul K Thomas, who heads the ESAF Small Finance Bank, said the RBI’s core focus on small lending and the last-mile delivery of credit to individuals and small businesses and the schemes to boost the provision of immediate liquidity to SFBs will go a long way in expediting economic recovery.

SFBs will now be permitted to give fresh lending to smaller micro-finance institutions (MFIs) with asset size of up to Rs 500 crore for on-lending to individual borrowers as priority sector lending.

This will add impetus to the SFBs who have been consistently playing a prominent role by acting as a conduit for the last-mile delivery of credit to individuals and small businesses, he said.

Private sector lender Kotak Mahindra Bank’s Group President for Consumer Banking, Shanti Ekambaram said the RBI has announced some timely liquidity measures that will provide relief to the most vulnerable by ensuring credit flow to individuals and small businesses and also give them greater repayment flexibility.

Viral Sheth, finance controller at Moneyboxx Finance, said several states with a huge rural population like Uttar Pradesh, Bihar and West Bengal are witnessing sharp rise in new cases and it was imperative to provide a helping hand to vulnerable sections of individuals and small businesses.



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3 Banks That Offer You Savings Interest Of Upto 7%

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Equitas Small Finance Bank with 7%

Equitas Small Finance Bank offers an interest of 7% for balances above Rs 1 lakh. This probably is the highest amongst all banks in the country. The bank is offering a selfeSavings, which is a digital bank account which can be opened with a web based interactive video form by registering using Aadhaar & PAN. Interest of upto Rs 10,000 on the savings bank account is exempted from Income Tax in India.

Equitas Small Finance Bank as the name suggests is a small finance bank. These banks like full fledged commercial banks are regulated by the Reserve Bank of India. In terms of safety, we know that sums of upto Rs 5 lakhs in savings account and deposits have an insurance cover, through the Deposit Insurance and Credit Guarantee Corporation, which is a RBI subsidiary.

IndusInd Bank

IndusInd Bank

IndusInd Bank, unlike Equitas Small Finance Bank is a full fledged commercial bank. The Bank offers an interest rate of 6% on balances in the savings account of more than Rs 10 lakhs.

The one problem that we have with savings account interest rates is that banks keep changing the rates and hence you could lose. Unlike an FD, where you can lock-in money for a particular duration, in the case of savings account you can get caught if interest rates fall. Let’s say you have Rs 10 lakhs and you have a choice of placing it in a FD with interest rate of 6.75%. However, you choose to keep in the savings account with 7% interest and if the bank decides to reduce the interest to 5% and FD rates also fall, you lose. IDFC First Bank was a few months ago offering interest rates on savings account of 7%. It has now reduced the same to 5%.

Jana Small Finance Bank

Jana Small Finance Bank

Jana Small Finance Bank is offering an interest rate of 6% on balances between Rs 1 lakh and upto 10 Lakhs. For balances of more than Rs 10 lakhs upto Rs 50 crores, the interest being offered is Rs 6.50%. If you have a balance of more than Rs 50 crores, the interest that is being offered is 6.75%.

Jana Small Finance Bank as the name suggests is a small finance bank and investors often ask about their safety. We cannot predict safety, all we can do is give you some information, telling you that there is an insurance guarantee for sums upto Rs 5 lakhs. The interest rates being offered on the savings bank account is as good as fixed deposits.

About the author

About the author

Sunil Fernandes has spent 26 years covering business and finance in India and abroad. Sunil has worked with frontline daily newspapers including Hindustan Times, Deccan Herald and Gulf Times. He has also worked with investment magazines like Dalal Street Investment Journal and Oman Economic Review. His forte remains stocks, mutual funds and tax planning.



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AIBEA opposes govt decision to privatise IDBI Bank, BFSI News, ET BFSI

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All India Bank Employees’ Association (AIBEA) has opposed the government’s move to privatise IDBI Bank, terming the decision as a “retrograde” move. The association said the government should control a minimum of 51 per cent share capital of the bank.

The bank came into trouble as some private corporate houses cheated IDBI Bank by not repaying the loans taken, while the need of the hour is to take action against the defaulters and recover the money, the bank union said in a statement.

The Cabinet on Wednesday gave in-principle approval for strategic disinvestment along with transfer of management control in IDBI Bank in line with the Budget announcement earlier this year.

The central government and LIC together own more than 94 per cent equity of IDBI Bank.

“The need is to take action on the defaulters and recover the money. Unfortunately, now the decision has been taken to sell the bank to a private company. IDBI Bank is a national asset and should not be sold away in this fashion. It is a retrograde move,” AIBEA said.

If sold to a private company, the existing reservation in jobs for SC/ST category will be withdrawn, it said, adding this is social injustice to the unemployed youth of this country.

The only major problem of the bank is its huge bad loans of Rs 36,000 crore as of March 31, 2021 (22 per cent). Out of the operating profit of Rs 1,900 crore for the year ended March 2021, Rs 1,500 crore have been set off for provision for bad loans, AIBEA Secretary General C H Venkatachalam said.

“Now to camouflage these ills of the bank, the bank is being sold away. We express our strong protest against this decision and urge upon the government not to proceed with the sale of IDBI Bank,” he said.

AIBEA said bank’s deposits of Rs 2.3 lakh crore is people’s money and it should be used for their welfare and national development, not for the private corporate loot.

IDBI was started as a Development Financial Institution (DFI) in the 1960s. It was later converted as IDBI Bank much against the statute approved by Parliament earlier, it added.

It said the bank played a leading role in financing industrial development in the country.



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This Shipping Company Stock Offered 27% Returns In Just 3 Days

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Investment

oi-Roshni Agarwal

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The shares of GE Shipping amid volatility in the markets have provided return of 27% considering Friday’s closing price of Rs. 314.9. On the NSE, the shares were last trading at Rs. 401, while on the BSE the price was at Rs. 402.4 per share.

This Shipping Company Stock Offered 27% Returns In Just 3 Days

This Shipping Company Stock Offered 27% Returns In Just 3 Days

Notably, on Wednesday, amid boost up market sentiment, the shipping company posted gains of close to 17% on the BSE. It is also the stock’s over three-year high price.

Other gainers from the shipping segment
Stock % Gain on May 5, 2021
Shreyas Shipping & Logistics 20%
Essar Shipping 19.62%
Shipping Corporation of India 8%
Seacost Shipping Services 3%

Why the gains in the shipping stock price?

As per a Reuters report, main sea freight index of the Baltic exchange surged on Tuesday on the back capesize vessel rates in nearly 11 years. The Baltic dry index tracking rates for capesize, panamax and supramax vessels ferrying dry bulk commodities gained 3.4 per cent.

Why gains in the GE Shipping counter in 3-days of 27%

The company’s board will meet on May 7 to discuss the issue of NCDs up to an amount not over Rs. 1000 crore by way of private placement. The board will also to consider and approve audited financial results for the year ended March 31, 2021 and recommendation of final dividend, if any, the company said.

Also, HDFC Mutual Fund has taken an exposure of additional over 2 percent stake in the company via open market. Post the acquisition, the stake of HDFC mutual fund has increased to 7.235 from the 5.13% earlier.

GoodReturns.in



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EPF Covid Claim: Nominee Can Claim EPF Insurance Upto Rs 7 Lakh Form V IF

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Planning

oi-Sneha Kulkarni

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The Employees’ Provident Fund Organisation (EPFO) raised the overall assurance value under the Employees’ Deposit Linked Insurance (EDLI) scheme to Rs 7 lakh from Rs 6 lakh, in a bid to support crores of employees affected by the coronavirus pandemic. In this case, when an account holder dies, how will the nominee or legitimate heirs claim the Employees’ Provident Fund (EPF)? The issue is critical, and not only the provident fund holder but also his or her immediate family must be aware of and prepared for all possibilities. If the scheme subscriber expires, the Employees’ Provident Fund Organisation (EPFO) permits the entire EPF sum to be paid to the nominee. Those protected by EPF are automatically granted membership in EDLI. The Employees’ Deposit-Linked Insurance Scheme, established in 1976, offers insurance coverage to the employee’s nominee in the event of the employee’s death while on the job.

Death Due To Covid? Nominee Can Claim EPF Insurance Upto Rs 7 Lakh

What is the purpose of Form 5 IF?

Nominees, family members, and legal heirs can fill out PF Form 5 IF to seek insurance benefits after the death of an active EPFO member. It’s worth noting that the benefit is only available if the participant died while on active duty.
The gain under the Employees’ Deposit Linked Insurance Scheme, 1976 is only available to the person(s) entitled to the deceased member’s Provident Fund accumulations if the member died while in service.

Things to know before filling the form

To ensure that all benefits under the three Schemes are processed, the form should be submitted with Form 20 (for claiming Provident Fund dues) and Form 10 D/10C (for Pension/Withdrawal Benefit as applicable).
Filling out the form in block letters is required, and no overwriting is permitted.
Only the offline method can be used to fill out the form.
The application must be attested by the last employer for whom the member worked.
To have the money credited to your bank account, you must apply a canceled cheque to the form.

Documents required to submit for death claim

1. Death Certificate of the member
2. Guardianship certificate if the claim on behalf of a minor family member/nominee/legal heir is by other than the natural guardian.
3. In the event of a legitimate heir’s claim, a succession certificate is required
4. Copy of a canceled/blank cheque of the bank account in which payment is opted.
5. If the members were the last working in an institution exempted under the EPF Scheme 1952, the employer of such an establishment must include the PF records for the previous 12 months under the Certificate section, as well as an attested copy of the Member’s Nomination Form.

Who can Fill EPF Form 5 IF?

Nominees (members of the family) designated under the EPF Scheme
In the event that no one is nominated, all members of the family are automatically included (except the major son, married daughters with husbands who are alive, and married granddaughters with husbands who are alive)
In the absence of a family and a nomination, the legal heir of a minor nominee/family member/legal heir is appointed.

Link to download the Form-

https://www.epfindia.gov.in/site_docs/PDFs/Downloads_PDFs/Form5IF.pdf

Details of the claimant/guardian

  • Name
  • Date of Birth
  • Relation with the deceased
  • (Information of the minor nominee/heir and the guardian’s connection to the minor if the claimant is a guardian.)
  • Claimant’s Full Postal address
  • Mode of remittance- Cancelled cheque should be attached with the application
  • Advance Stamp Receipt
  • Certificate to be filled by the Employer
  • IF withdrawal Register

Claimants and employers must both sign the application form in the designated area.

It’s possible that the institution would be closed, and no officer will be able to certify the claim form. In such cases, the member must have the form attested by one of the authorities mentioned below:

  • Magistrate
  • A Gazetted Officer
  • Post/Sub-Post Master
  • President of the Village Panchayat where there is not Union Board
  • Chairman/Secretary/Member of Municipal/District Local Board
  • Member of Parliament/Legislative Assembly
  • Member of CBT/Regional Committee EPF
  • Manager of the Bank in which the Bank Account is maintained
  • Head of any recognized educational institution

If the account holder dies, the applicant or beneficiary may use the OTP on his or her Aadhaar-linked mobile to submit an EPF Composite Death Claim Form.



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Steel Stocks Gave Gains Of Over 450% In Last One Year: Should You Invest In Them Even Now?

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Here we look at the last 1-year stock performance of some of the major steel companies:

Stock Closing price as on May 5, 2021 Closing price as on May 5, 2020 % Gain
Tata Steel 1070.15 272.65 292%
JSW Steel 717.7 163.9 337%
SAIL 130.3 28.43 358%
Jindal Steel and Power 439.4 85.95 411%
Tata Steel BSL 93.6 16.75 458%

What has been aiding the rally in steel stocks in 2020-2021?

What has been aiding the rally in steel stocks in 2020-2021?

Now as we see some of the see steel stocks to increase up to 5 times, here we will know what is fuelling the rally in steel stocks and is there more upside left?

Market Factors, Pricing and FIIs fuelling gains in steel stocks

Steel price gains:

The whole metal pack has been buzzing in trade and in fact in the lackluster April the gains in the metal pack to the tune of over 20% was the main highlight with JSW Steel posting gains of over 50% and Tata Steel over 20% alone in April month. And talking specifically about steel stocks the gains are on the back of increase in price of steel and improved earnings outlook. On Wednesday (May 5, 2021), Tata Steel beat estimates on account of higher income and posted consolidated net profit of Rs. 7162 crore for the March ended quarter of FY21.

As of April, steel prices have gone up by more than Rs. 19000 per ton as per a report.

Demand recovery:

Note that a hike in steel prices has been brought on because of tight supply, improved demand as well as increase in international exports.

Supply crunch with China cutting on production and importing steel on a net basis:

Also as per a news report, Tangshan, the largest steel manufacturing province in China has resorted to production cuts at a time when demand has been reviving. The cut in production has been owing to environmental reasons. And considering it, China has become the net importer of steel in 2020 also after a gap of 12 long years and hence there is witnessed a strong bull run in steel stocks.

Multiple Covid waves has been one reason held responsible for limiting steel supply, cited one of the news daily quoting JSW Steel. Also, the company added that the various stimulus measures taken by the governments are boosting both demand and prices of the commodity. And the massive demand is seen across sectors including construction, auto and chemicals and this is real demand and not hoarding of steel by stockiest.

FIIs increasing their stake in Indian listed steel stocks

Adding to the gains is also the fact that foreign institutional investors are increasing their exposure in these stocks as they remain bullish. Say for instance, FIIs in the just ended March quarter have upped their stake to 18.56% from 16.87%.

Is there more upside in steel stocks left and Should you invest in steel stocks even now?

Is there more upside in steel stocks left and Should you invest in steel stocks even now?

And this price rally is expected to continue for at least two quarters and once the production sets in and even the output that was once non-viable comes into the market, there could be pricing pressure on steel and consequent pressure on steel stocks.

It is being cited that PSU steel stock like SAIL is gaining for reasons beyond the divestment plan of the government. And owing to margins benefit, the stock was seen to have further upside of 20-25% from price levels as reached in April 2021.

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RBI provides Rs 50,000-crore liquidity for extending Covid-19 loans to healthcare

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SS Mallikarjuna Rao, MD and CEO of Punjab National Bank, said on-tap liquidity of Rs 50,000 crore for Covid-related health care sector along with the incentives for banks like priority sector classification and higher interest on surplus liquidity window will ease access to emergency health services.

By Ankur Mishra

The Reserve Bank of India (RBI) on Wednesday announced immediate liquidity of Rs 50,000 crore for banks for enabling them to extend Covid loans to healthcare entities. This liquidity window available at the repo will remain open till March 31, 2022. Under this scheme, banks can provide fresh lending support to vaccine manufacturers, hospitals and also patients for treatment, among others.

Banks are also being incentivised for quick delivery of credit under the scheme through extension of priority sector classification up to March 31, 2022, RBI governor Shaktikanta Das said. The loans will continue to be classified under the priority sector till repayment or maturity, whichever is earlier.

In an interaction with CNBC TV 18, State Bank of India (SBI) chairman Dinesh Kumar Khara said measures will help in creating health infrastructure and will encourage banks to create Covid books. Banks are expected to create a Covid loan book under this scheme. Such banks will be eligible to park their surplus liquidity up to the size of the Covid loan book under the reverse repo window at a rate which is 40 bps higher than the reverse repo rate.

Khara further said two vaccine manufactures have reached out to SBI for loans, and they can be given loans under the new facility.

Bankers also feel that the scheme from the RBI will ease access to emergency health services. CII president Uday Kotak said, “RBI governor has taken the financial sector battle against Covid 2.0 head on with a clear focus on protecting lives and livelihoods.”

SS Mallikarjuna Rao, MD and CEO of Punjab National Bank, said on-tap liquidity of Rs 50,000 crore for Covid-related health care sector along with the incentives for banks like priority sector classification and higher interest on surplus liquidity window will ease access to emergency health services.

Under the scheme, banks can provide fresh lending support to a wide range of entities including vaccine manufactures; importers/suppliers of vaccines and priority medical devices; hospitals/dispensaries; pathology labs; manufactures and suppliers of oxygen and ventilators; importers of vaccines and COVID related drugs; logistics firms and also patients for treatment.

Echoing the views of bankers, Rashmi Saluja, executive chairperson, Religare Enterprises, said: “The central bank has shown lot of foresight by announcing flow of unhindered liquidity to the healthcare sector in order to boost production of vaccine, Covid-related medicines and ramp up oxygen supplies.” This special lending window of Rs 50,000 crore has been classified under priority sector lending and will ensure steady flow of loans to the healthcare sector, she added.

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Loan recasts: Small borrowers get fresh relief from RBI

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The resolution framework 2.0 may be an acknowledgement that its predecessor may not have fully addressed the stress emerging from Covid, as suggested by the limited number of retail accounts restructured. Bankers have also acknowledged this.

The Reserve Bank of India (RBI) on Wednesday allowed lenders to carry out a fresh round of restructuring of small borrower accounts which had not availed of the benefit of the recast scheme for Covid-related stress last year.

Individuals and small businesses with loans of up to Rs 25 crore who have never undergone restructuring before and who were classified as standard as on March 31, 2021, shall be eligible under the new scheme, titled resolution framework 2.0.

“The resurgence of Covid-19 pandemic in India in recent weeks and the associated containment measures adopted at local/regional levels have created new uncertainties and impacted the nascent economic revival that was taking shape. In this environment the most vulnerable category of borrowers are individual borrowers, small businesses and MSMEs,” RBI governor Shaktikanta Das said in an unscheduled morning address.

Further relief was offered to borrowers whose accounts have already been restructured under the August 6, 2020, framework. Retail and micro, small and medium enterprises (MSME) loans where the resolution plan permitted a moratorium of less than two years will now be eligible for an increase in the period of moratorium. Alternatively, lenders could extend the residual tenor up to a total of two years. In the specific case of MSMEs restructured earlier, lending institutions were also permitted as a one-time measure, to review working capital sanctioned limits, based on a reassessment of the working capital cycle and margins.

Lenders said a fresh restructuring scheme was expected. There was also a sense of relief that the scheme on offer was not a blanket one, like the moratorium.

Suresh Khatanhar, DMD, IDBI Bank, said the framework is a timely one which will ensure comfort to those impacted by the renewed surge in Covid cases. “This will be a structured, monitored scheme where specific gaps will be addressed,” Khatanhar said. He explained that restructuring is a more flexible option as compared to the credit guarantee-backed liquidity support offered last year. “Here the support is not limited to 20%. They have also allowed reassessment of working capital limits. So the problems here can be addressed in a more comprehensive manner,” he said.

SS Mallikarjuna Rao, MD and CEO, Punjab National Bank (PNB), said allowing a reassessment of the working capital cycle for MSMEs restructured earlier shall help align the working capital cycle to the present business environment.

Some industry players wondered whether two years would be time enough for the worst-hit sectors to get back on their feet. Jyoti Prakash Gadia, managing partner, Resurgent India, said entities which extend their moratorium period under the recast scheme will be expected to revive their operations by 2022 and start paying their instalments after two years. “However, it is still uncertain that the revival of adversely affected sectors such as hospitality, travel and tourism and leisure will take place within the span of two years,” he said.

The resolution framework 2.0 may be an acknowledgement that its predecessor may not have fully addressed the stress emerging from Covid, as suggested by the limited number of retail accounts restructured. Bankers have also acknowledged this.

In January, Sanjiv Chadha, MD and CEO, Bank of Baroda (BoB), had said retail borrowers accounted for a very small proportion of the bank’s restructured book. “Therefore, we have not been able to address whatever stress might be there at least through the restructuring mode — which means that either people will either actually start paying up on time [or]there is a fair possibility that some stress will come through NPAs (non-performing assets),” he had said.

Analysts described the latest measures as more moderate compared with last year’s moratorium. Srikanth Vadlamani, vice-president – senior credit officer, financial institutions group, Moody’s Investors Service, said, “This measure (resolution framework 2.0) is much milder than the blanket loan moratorium given last year and the proportion of restructured loans will be lower. Nevertheless, the need for this measure highlights the re-emergence of downside risks to banks’ asset quality.”

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Yes Bank expects 15% loan growth in FY22: Prashant Kumar, managing director and chief executive officer

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Overall, I think there would be some impact, but not much.

Yes Bank is expecting a loan growth of 15% in the current financial year (FY22). In an interview with Ankur Mishra, managing director and chief executive officer Prashant Kumar says 15% credit growth in FY22 will not be difficult as the bank has disbursed Rs 15,000 crore even in the March quarter. He says current wave of Covid-19 will have some impact, but not to the extent of last year. Excerpts:

What is your assessment on the impact of pandemic? Has the bank done any stress test?
This is too early. My reading is that economic impact will not be that much, compared to what happened last year. Last year was complete lockdown, everything was closed. It came to almost zero, but this year there are only restrictions. Lot of activities are happening. But definitely there is going to be some impact. Last month, we have seen all-time-high GST collections of Rs 1.4 lakh crore, industrial production is happening, movement of goods are happening. So, once we hit the peak, it will start coming down. And now we have the vaccine available. So, economic recovery will happen much faster.

How has been collection efficiency in the March quarter (Q4FY21) and during April? Has there been some impact of Covid-19 so far?
We have reached to the pre-Covid levels during the March quarter as far as collection efficiency is concerned. In the March quarter, our collection efficiency remained somewhere around 96%. In the first 15 days of April, we were at the same level. We are still awaiting data after April 15. Overall, I think there would be some impact, but not much.

You have managed your credit deposit (CD) ratio at 102% in Q4 in line with the target to keep it around 100%. Now, as the deposits are growing rapidly, how do you plan to keep the balance?
On the deposits part, we are continuously reducing rates. Last one year, we have reduced more than 100 basis points (bps) on fixed deposits (FDs). On the savings side also, we have reduced rates. Basically, we have to keep balance in deposits growth in terms of what are the opportunities for credit. We are looking for a credit growth of around 15% for overall book. And if credit growth is 15%, deposits has to grow more than 15%. But definitely not at a very high rate. We are not looking to gain market share in deposits or remain very aggressive, but it is more in terms of managing our asset liability. So, if we see due to liquidity more deposits would be coming, we will further reduce our rate of interest.

What gives you confidence for loan growth of 15% in FY22?
I think that should not be difficult because even in the last quarter we have disbursed Rs 15,000 crore. It is not reflecting in our number as we have made additional provisions which reduce your net loan book. Secondly, we were following a strategy on the corporate side for some of the assets where the concentration was high. So, that exercise is now over. Going forward, it will be only growth. The only caveat is that pandemic should not bring any unexpected surprise.

NII de-growth during the March quarter has been attributed to interest reversals and one-offs. How do you see NII growth going forward?
If you don’t have that kind of slippage, your NII growth will be largely in line with your loan growth. So going forward, double-digit growth of NII should be definitely possible in FY22.

What is your outlook on net interest margins (NIMs)?
We are expecting to reach at 3% till March quarter in the current financial year (Q4FY22).

Overall, you were able to do Rs 4,933 crore cash recovery in FY21. What is your target for June quarter and FY22, considering the pandemic?
It is very difficult to guide for June quarter, but definitely we should be able to reach at least Rs 5,000 crore cash recovery during FY22. Why I am saying this is because we were able to achieve a similar target in six months of FY21 as first two quarters (Q1FY21 and Q2FY21) were almost a washout. And we were immediately recovering from reconstruction and moratorium. The recovery can be more than Rs 5,000 crore during FY22. We can definitely do better than FY21.

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Reserve Bank of India – Tenders

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E-Tender for providing trained fire-fighting services at RBI Office Premises located in Kanpur for an initial period of one year (01st July 2021 to 30th June 2022)

Reserve Bank of India invites e-tender for “providing trained fire-fighting services at RBI Office Premises located in Kanpur for initial period of one year (1st July 2021 to 30th June 2022) The e-tendering shall be done through the e-tendering portal of MSTC Ltd (http://mstcecommerce.com/eprochome/rbi). All eligible and interested companies/agencies/firms must register themselves with MSTC Ltd through the above-mentioned website to participate in the e-tendering process. The Schedule of e-tender is as follows:

Schedule of Tender

E-Tender No. RBI/Kanpur/HRMD/76/20-21/ET/734
a) Estimated cost ₹40,00,000/- (Rupees Forty lakhs only)
b) Mode of e-tender e-Procurement System (Online Part I – Technical Bid and Part II – Price Bid through
www.mstcecommerce.com/eprochome/rbi
c) Type of e-tender Open (Twin Bid System)
d) Date of NIT available to parties to download May 05, 2021, 03:00 PM
e) Pre-bid meeting Offline. May 12, 2021 at 12:00 NoonVenue: PROTOCOL & SECURITY CELL, 2nd Floor, Reserve Bank of India, M.G. Road, Kanpur – 208001 (Uttar Pradesh)
f) Earnest Money Deposit (EMD) through NEFT and upload the details on the MSTC portal. Also intimate/ forward the transaction details (UTR number OR scanned copies (in PDF) to psokanpur@rbi.org.in and/or pradeeprathore@rbi.org.in ₹.80,000/- (₹. Eighty Thousand Only) paid through NEFT/ Net banking to
Beneficiary Name- Reserve Bank of India
Beneficiary A/c No – 186003001
IFSC – RBIS0KNPA01 (5th and 10th digit is Zero).
(ii) E-Tender Fees NIL
g) Last date of submission of EMD. May 26, 2021 up to 01:00 PM
h) Date of Starting of e-tender for submission of on-line Technical Bid and price Bid at http://mstcecommerce.com/eprochome/rbi May 05, 2021, 03:00 PM
i) Date of closing of online e-tender for submission of Technical Bid & Price Bid. May 26, 2021 up to 01:00 PM
j) Date & time of opening of Part-I (i.e. Technical Bid). Date of opening of Part II i.e. price bid shall be informed separately May 26, 2021 at 02:00 PM
k) Validity of the e-tender 90 days from the date of opening of Techno– Commercial bid
l) Performance Bank Guarantee 5% of the contract value (valid for the entire period of currency of contract).
m) Transaction Fee (Non-refundable) (To be paid separately by the tenderers to MSTC vide MSTC E-Payment Gateway for participating in the e-tender) Rs.2,360/- (Including GST @18%)
n) Helpdesk numbers of MSTC Ltd for any technical queries regarding MSTC Portal while quoting bids for e-tender 033 40645207, 033 40609118, 033 40645316, 033 22901004 and 033 22895064.
The bidders can also submit their issues vide e-mail at helpdesk@mstcindia.co.in

2. Intending tenderers shall pay a sum of Rs.80,000/- (Rs. Eighty Thousand Only) as earnest money through NEFT / RTGS to Reserve Bank of India, Kanpur.

3. Applicants intending to apply will have to satisfy the Bank by furnishing documentary evidence in support of their possessing required eligibility and in the event of their failure to do so, the Bank reserves the right to reject their bids. E-tenders without EMD shall not be accepted under any circumstances.

4. The Bank shall not be bound to accept the lowest tender and reserves the right to accept either in full or in part any tender. The Bank also reserves the right to reject all the tenders without assigning any reason thereof.

5. Any amendments / corrigendum to the tender, if any, issued in future shall only be notified on the RBI Website and MSTC Website as given above and shall not be published in the newspaper.

Regional Director
Reserve Bank of India
Kanpur

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