New Delhi, Jul 25 () The finance ministry has moved a file for extension of tenure of three public sector banks’ managing directors, including Punjab National Bank (PNB), according to sources. Besides, the sources said the ministry has also recommended the Department of Personnel and Training (DoPT) for extension of 10 executive directors (EDs) of various public sector banks.
The three-year term of S S Mallikarjuna Rao, MD and CEO of PNB, is coming to an end on September 18 but the finance ministry has recommended for extension for four months till January 31, 2022, when Rao attains his superannuation age of 60 years.
Atul Kumar Goel’s term as MD and CEO of UCO Bank has been recommended for a two-year extension beyond November 1 this year. A S Rajeev, MD and CEO of Bank of Maharashtra, has been suggested for an extension of two years beyond December 1.
The finance ministry has simultaneously forwarded the name of S L Jain for the appointment of MD and CEO of Indian Bank. The BBB, the headhunter for state-owned banks and financial institutions, had recommended the name of Jain in May after the interview.
With regard to EDs, the ministry has recommended names of 10 for extension of their term till their superannuation age or two years, whichever is earlier.
The MD and CEO of a public sector undertaking is given a maximum tenure of five years as a government guidelines.
According to sources, the ministry sought extension of the executives from the Appointments Committee of Cabinet (ACC). The proposal has been sent to the Dof Personnel and Training for the same after consultation with BBB. The final call for extension will be taken by the ACC.
Interestingly, the Banks Board Bureau (BBB) has also invited applications for appointment of new MDs of PNB.
For PNB, the BBB on June 16, had sought public application for the MD and CEO post. The eligibility criteria as announced in public notice is that the applicant should be in the age group of 45 to 57 years in mainstream banking, of which, at least one year has to be at the board level.
The compensation offered is in line with the MD and CEO of a large public sector bank, it said. DP ANZ HRS hrs
The Indian stock market is now experiencing its record peaks as the Nifty is hanging around 15,800, which is causing discomfort among equity investors. As a result, it would be better for investors to switch from equity investments to debt. Investing
HDFC Bank‘s Aditya Puri emerged as the highest grossing banker among the top three private sector lenders in his retirement year with total emoluments of Rs 13.82 crore. His successor Sashidhar Jagdishan, who took over as the chief executive and managing director of the largest private sector lender on October 27, 2020 grossed a salary of Rs 4.77 crore for the fiscal year, which included payments as a group head till his elevation. Puri’s overall payments included Rs 3.5 crore as post-retirement benefits.
Its immediate rival ICICI Bank‘s MD and CEO Sandeep Bakhshi “voluntarily relinquished” his fixed compensation of basic and supplementary allowances for FY21, which had seen wide-scale impact of the COVID pandemic, as per the second largest lender’s annual report.
Bakhshi, however, did receive allowances and perquisites amounting to Rs 38.38 lakh, the document said, adding he also got Rs 63.60 lakh as performance bonus from ICICI Prudential Life Insurance Company as deferred variable pay for FY17 and FY18.
Amitabh Chaudhry, who has been leading the third largest private sector lender Axis Bank, got paid Rs 6.52 crore, the bank’s annual report said, adding that the top management was not given any salary increment in FY21.
In the case of ICICI Bank, material risk takers including executive directors, chief financial officer and company secretary voluntarily opted for a 10 per cent salary reduction from May 1 in their payments, possibly because of the impact of COVID. Its executive director in-charge of wholesale banking Vishakha Mulye grossed Rs 5.64 crore, as per the annual report.
When compared with the bank’s median salary, the allowances drawn by Jagdishan were the highest at 139 times the median salary of a bank employee, while Chaudhry earned 104 times the median and ICICI Bank executive directors drew 96 times the median salary.
Data available for ‘crorepati’ bankers, or those earning above Rs 8.5 lakh a month, revealed that HDFC Bank had 200 executives in this exclusive club, including key management personnel, serving officials and those who left the lender midway through the fiscal year.
In comparison, Axis Bank had 69 bankers in the category who served throughout the year, while 17 employees who would otherwise have been in the club left it midway through the year, as per the annual report.
Fixed deposits are appropriate for you in the debt category if you are a risk-averse investor searching for consistent returns over a period ranging from 7 days to 10 years. Fixed income alternatives in the debt category, such as fixed deposits, provide consistency to your portfolio by offering guaranteed returns in both the short and long term. If you wish to invest for three years, you may choose from a variety of options such as savings accounts, liquid funds, gold investment, treasury bills, fixed maturity plans, and so on. However, among all of these alternatives, we prefer investing in fixed deposits for three years. The rationale for this is that you will not only receive higher assured returns but your deposits will also be insured by DICGC up to Rs 5 lakhs. So investors, especially senior citizens who want to invest for a short-term goal of 3 years, here are the top 5 banks promising higher interest rates on fixed deposits.
Top 5 Private Banks Offering Higher Interest Rates On 3-Year Fixed Deposits
For a deposit amount of less than Rs 2 Cr, here are the top 5 private sector banks offering the best interest rates on 3 years fixed deposits.
Banks
Regular FD Rates
Senior Citizen FD Rates
DCB Bank
6.50%
7.00%
IndusInd Bank
6.50%
7.00%
RBL Bank
6.10%
6.60%
Yes Bank
6.00%
6.50%
IDFC First Bank
5.75%
6.25%
Source: Bank Websites
Top 5 Public Sector Banks Promising Best Interest Rates On 3-Year Fixed Deposits
Here are the top 5 public sector banks giving the best interest rates on three-year fixed deposits for deposits of less than Rs 2 Crore.
Banks
Regular FD Rates
Senior Citizen FD Rates
Union Bank of India
5.40%
5.90%
Canara Bank
5.40%
5.90%
Punjab & Sind Bank
5.15%
5.65%
Bank of Baroda
5.10%
5.60%
IDBI Bank
5.10%
5.60%
Source: Bank Websites
Top 5 Small Finance Banks Providing Higher Interest Rates On 3-Year Fixed Deposits
Below are the top 5 small finance banks promising best interest rates on 3 years fixed deposits for a deposit amount of less than Rs 2 Cr.
Banks
Regular FD Rates
Senior Citizen FD Rates
Ujjivan Small Finance Bank
6.75%
7.25%
North East Small Finance Bank
6.75%
7.25%
Jana Small Finance Bank
6.50%
7.00%
Equitas Small Finance Bank
6.35%
6.85%
Suryoday Small Finance Bank
6.25%
6.50%
Source: Bank Websites
For investment related articles, business news and mutual fund advise
Allow Notifications
You have already subscribed
Story first published: Sunday, July 25, 2021, 16:47 [IST]
Data available for ‘crorepati’ bankers, or those earning above Rs 8.5 lakh a month, revealed that HDFC Bank had 200 executives in this exclusive club. (File image)
HDFC Bank’s Aditya Puri emerged as the highest grossing banker among the top three private sector lenders in his retirement year with total emoluments of Rs 13.82 crore.
His successor Sashidhar Jagdishan, who took over as the chief executive and managing director of the largest private sector lender on October 27, 2020 grossed a salary of Rs 4.77 crore for the fiscal year, which included payments as a group head till his elevation. Puri’s overall payments included Rs 3.5 crore as post-retirement benefits.
Its immediate rival ICICI Bank’s MD and CEO Sandeep Bakhshi “voluntarily relinquished” his fixed compensation of basic and supplementary allowances for FY21, which had seen wide-scale impact of the COVID pandemic, as per the second largest lender’s annual report.
Bakhshi, however, did receive allowances and perquisites amounting to Rs 38.38 lakh, the document said, adding he also got Rs 63.60 lakh as performance bonus from ICICI Prudential Life Insurance Company as deferred variable pay for FY17 and FY18.
Amitabh Chaudhry, who has been leading the third largest private sector lender Axis Bank, got paid Rs 6.52 crore, the bank’s annual report said, adding that the top management was not given any salary increment in FY21.
In the case of ICICI Bank, material risk takers including executive directors, chief financial officer and company secretary voluntarily opted for a 10 per cent salary reduction from May 1 in their payments, possibly because of the impact of COVID. Its executive director in-charge of wholesale banking Vishakha Mulye grossed Rs 5.64 crore, as per the annual report.
When compared with the bank’s median salary, the allowances drawn by Jagdishan were the highest at 139 times the median salary of a bank employee, while Chaudhry earned 104 times the median and ICICI Bank executive directors drew 96 times the median salary.
Data available for ‘crorepati’ bankers, or those earning above Rs 8.5 lakh a month, revealed that HDFC Bank had 200 executives in this exclusive club, including key management personnel, serving officials and those who left the lender midway through the fiscal year.
In comparison, Axis Bank had 69 bankers in the category who served throughout the year, while 17 employees who would otherwise have been in the club left it midway through the year, as per the annual report.
A Recurring Deposit is a form of term deposit marketed by banks that enables risk-averse investors, particularly elderly citizens, to deposit a predetermined amount each month, similar to a mutual fund SIP, and earn interest income comparable to that provided on Fixed Deposits or FDs. Investing in recurring deposits is well-known for addressing short-term requirements, so it’s ideal for investors with short-term financial goals who don’t want to risk their portfolio with market-based returns.
Apart from the interest rates, let me make it clear that investing in recurring deposits also falls under the guidelines of DICGC. This implies that recurring deposits just like a fixed deposit account or savings account are also insured up to Rs 5 lakhs by DICGC. By keeping all these factors in mind, here we have compiled the top 10 public, private, and small finance banks that are offering the best interest rates on recurring deposits as of now.
Top 10 Private Sector Banks Promising Higher Interest Rates On Recurring Deposits In 2021
Here are the top 10 private sector banks promising higher interest rates on recurring deposits in 2021:
Sr No.
Banks
Regular RD Rates
Senior Citizen RD Rates
W.e.f.
1
Yes Bank
6.50%
7.25%
June 3, 2021
2
RBL Bank
6.50%
7.00%
July 2, 2021
3
DCB Bank
6.50%
7.00%
15 May, 2021
4
IndusInd Bank
6.50%
7.00%
June 4, 2021
5
IDFC First Bank
6.00%
6.50%
May 1, 2021
6
Axis Bank
5.75%
6.50%
June 22, 2021
7
ICICI Bank
5.50%
6.30%
October 21, 2020
8
Bandhan Bank
5.50%
6.25%
June 7, 2021
9
HDFC Bank
5.50%
6.00%
August 25, 2020
10
Kotak Mahindra Bank
5.25%
5.75%
July 23, 2021
Source: Bank Websites
Top 10 Public Sector Banks With Higher Interest Rates On Recurring Deposits
List of commercial banks offering best interest rates on recurring deposits in 2021:
Sr No.
Banks
Regular RD Rates
Senior Citizen RD Rates
W.e.f.
1
Union Bank of India
5.60%
6.10%
July 7, 2021
2
Canara Bank
5.50%
6.00%
08.02.2021
3
Punjab & Sind Bank
5.30%
5.80%
16.05.2021
4
Bank of Baroda
5.25%
6.25%
16.11.2020
5
IDBI Bank
5.25%
5.75%
July 14, 2021
6
Punjab National Bank
5.25%
5.75%
01.05.2021
7
Indian Overseas Bank
5.25%
5.75%
09.11.2020
8
Indian Bank
5.15%
5.65%
05.02.2021
9
Bank of India
5.15%
5.65%
01.07.2021
10
Central Bank of India
5.00%
5.50%
10.07.2021
Source: Bank Websites
Top 10 Small Finance Banks Offering Best Interest Rates On Recurring Deposits In 2021
Here are the top 10 small finance banks that are not only promising interest rates up to 8% on recurring deposits but also fall under the deposit insurance cover up to Rs 5 lakhs of DICGC.
Sr No.
Banks
Regular RD Rates
Senior Citizen RD Rates
W.e.f.
1
North East Small Finance Bank
7.50%
8.00%
April 19, 2021
2
Utkarsh Small Finance Bank
7.00%
7.50%
July 1, 2021
3
Ujjivan Small Finance Bank
6.75%
7.25%
March 5, 2021
4
Jana Small Finance Bank
6.75%
7.25%
June 10, 2021
5
Suryoday Small Finance Bank
6.75%
6.75%
June 21, 2021
6
Equitas Small Finance Bank
6.50%
7.00%
June 1, 2021
7
Fincare Small Finance Bank
6.50%
7.00%
May 17, 2021
8
ESAF Small Finance Bank
6.50%
7.00%
May 2, 2021
9
Capital Small Finance Bank
6.25%
6.75%
June 3, 2021
10
AU Small Finance Bank
6.25%
6.75%
June 23, 2021
Source: Bank Websites
For investment related articles, business news and mutual fund advise
Allow Notifications
You have already subscribed
Story first published: Sunday, July 25, 2021, 13:29 [IST]
Under the Gratuity Act, 1972, employees are only entitled for gratuity if they have completed 5 years of constant employment with a specific company or employer. However, regardless of whether the five years have been fulfilled or not, the gratuity amount will be paid to the nominee in the event of an employee’s demise. Only family members can be nominated under the Gratuity Act, an employee can nominate any Indian citizen if he or she has no family members.
Under the Gratuity Act, a family of an employee is classified for a male employee as his wife, children (married or unmarried), dependent parents or dependent parents of his wife, and the widow and children of his deceased son if any. Whereas for a female employee, family refers to her husband, children (married or unmarried), dependent parents or her husband’s dependent parents, and widow and children of her deceased son, if any, under the Gratuity Act 1972. To make a nomination under the rules of the Gratuity Act 1972 here’s all you need to know about.
Gratuity Rules, 1972-1
The Central Government accordingly sets the following nomination rules in virtue of the authority given by sub-section (1) of section 15 of the Payment of Gratuity Act, 1972 (39 of 1972). According to the official website of labour.gov.in/
1. A nomination shall be in Form ‘F’ and submitted in duplicate by personal service by the employee, after taking proper receipt or by sending through registered post acknowledgment due to the employer,
in the case of an employee who is already in employment for a year or more on the date of commencement of these rules, ordinarily, within ninety days from such date, and
in the case of an employee who completes one year of service after the date of commencement of these rules, ordinarily within thirty days of the completion of one year of service:
Provided that nomination in Form ‘F’ shall be accepted by the employer after the specified period, if filed with reasonable grounds for delay, and no nomination so accepted shall be invalid merely because it was filed after the specified period.
2. Within thirty days of the receipt of nomination in Form ‘F’ under sub-rule (1), the employer shall get the service particulars of the employee, as mentioned in the form of nomination, verified with reference to the records of the establishment and return to the employee, after obtaining a receipt thereof, the duplicate copy of the nomination in form ‘F’ duly attested either by the employer or an officer authorised in this behalf by him, as a token of recording of the nomination by the employer and the other copy of the nomination shall be recorded.
3. An employee who has no family at the time of making a nomination shall, within ninety days of acquiring a family submit in the manner specified in sub-rule (1), a fresh nomination, as required under sub-section (4) of section 6, duplicate in Form ‘G’ to the employer and thereafter the provisions of sub-rule (2) shall apply mutatis mutandis as if it was made under sub-rule (1).
4. A notice of modification of a nomination, including cases where a nominee predeceases an employee, shall be submitted in duplicate in Form ‘H’ to the employer in the manner specified in sub-rule (1), and thereafter the provisions of sub-rule (2) shall apply mutatis mutandis.
5. A nomination or a fresh nomination or a notice of modification of nomination shall be signed by the employee or, if illiterate, shall bear his thumb impression, in the presence of two witnesses, who shall also sign a declaration to that effect in the nomination, fresh nomination or notice of modification of nomination, as the case may be.
6. A nomination, fresh nomination or notice of modification of nomination shall take effect from the date of receipt thereof by the employer.
Source: https://labour.gov.in/
For investment related articles, business news and mutual fund advise
Allow Notifications
You have already subscribed
Story first published: Sunday, July 25, 2021, 11:11 [IST]
Standard Chartered Bank, with 100 branches in 43 cities and a record spanning since 1858, is India’s largest international bank in terms of bank branches. The bank has recently revised its fixed deposit interest rates, which are in effect from July 23, 2021. Standard Chartered Bank is providing a 1.75 percent interest rate on FDs with a maturity of 7 to 59 days, 2.30 percent for FDs with a maturity of 60 to 89 days, and 3.5 percent for FDs with a maturity of 90 to 120 days. After the most recent adjustment, Standard Chartered Bank offers a 3.25 percent interest rate on FDs maturing in 121 days to less than 180 days. The bank will now pay 4.40 percent interest on deposits maturing in 181 days to less than 210 days. For deposits maturing in 211 days to 364 days, Standard Chartered Bank provides a 4.60 percent interest rate. On various maturities, Standard Chartered Bank gives elderly folks a higher rate. On deposits expiring in 7 days to 5 years, senior residents will get an interest rate ranging from 1.75 percent to 5.90 percent respectively.
Standard Chartered Bank FD Rates In 2021
Here are the most recent interest rates of Standard Chartered Bank fixed deposits for a deposit amount of less than Rs 2 Cr.
Tenure
Less than Rs 2 Cr
Less than Rs 1 Cr (Senior Citizens)
7-9 days
1.75%
1.75%
10-14 days
1.75%
1.75%
15 -17days
1.75%
1.75%
18-20days
1.75%
1.75%
21-23days
1.75%
1.75%
24-26 days
1.75%
1.75%
27-29days
1.75%
1.75%
30-32 days
1.75%
1.75%
33-35 days
1.75%
1.75%
36-38 days
1.75%
1.75%
39-41 days
1.75%
1.75%
42-44 days
1.75%
1.75%
45 -47 days
1.75%
1.75%
48-50 days
1.75%
1.75%
51-53 days
1.75%
1.75%
54-56 days
1.75%
1.75%
57-59 days
1.75%
1.75%
60-74 days
2.30%
2.30%
75-89 days
2.30%
2.30%
90 -104 days
3.50%
3.50%
105-120 days
3.50%
3.50%
121 -149 days
3.25%
3.25%
150-164 days
3.25%
3.25%
165-180 days
3.25%
3.25%
181-210 days
4.40%
4.40%
211-226 days
4.60%
4.60%
227 – 269 days
4.60%
4.60%
270 days-345 days
4.60%
4.60%
346 days-364 days
4.60%
4.60%
1yr – 375days
5.30%
5.80%
376 -390 days
5.20%
5.70%
391 days to 18 Months
5.20%
5.70%
18M to 21M
5.40%
5.90%
21M to 2 Yrs
5.25%
5.75%
2 Yrs to 3 Yrs
5.40%
5.90%
3 Yrs to 4 Yrs
5.35%
5.85%
4 Yrs to 5Yrs
5.40%
5.90%
Source: Standard Chartered Bank
For investment related articles, business news and mutual fund advise
Allow Notifications
You have already subscribed
Story first published: Sunday, July 25, 2021, 10:21 [IST]
The bank claims to have made higher than required provisioning due to change in policy for non-performing advances.
Private lender ICICI Bank on Saturday reported a 78% year-on-year (y-o-y) jump in its net profit to Rs 4,616 crore during the June quarter (Q1FY22). The bank was able to report a strong bottomline mainly on account of robust net interest income (NII) and lower provisioning. NII of the lender rose 18% y-o-y and 5% quarter-on-quarter (q-o-q) to Rs 10,936 crore. However, provisions fell sharply to Rs 2,852 crore in the reporting quarter, down 62% y-o-y, compared to Rs 7,594 crore in Q1FY21.
Sandeep Batra, executive director, ICICI Bank, said, “The retail disbursements moderated in April and May due to the containment measures in place across various parts of the country.” With the gradual easing of restrictions, disbursements picked up in June and July, he added.
The net interest margins (NIM) of the bank increased 20 basis points (bps) y-o-y and 5 bps sequentially to 3.89%. Although the management did not gave any specific guidance on margins, the lender expects NIMs to maintain the same level in the coming quarters. The asset quality of the lender worsened during the June quarter. Gross non-performing assets (NPAs) ratio of the lender increased 19 basis points (bps) to 5.16%, compared to gross NPAs of 4.96% in the previous quarter.
Similarly, net NPAs ratio increased 2 bps to 1.16% from 1.14% in the March quarter. The gross NPA additions were Rs 7,231 crore in Q1FY22. Recoveries and upgrades of NPAs, excluding write-offs and sale, were Rs 3,627 crore during the June quarter.
As of June 30, the bank had restructured loans worth Rs 3,891 crore under the Reserve Bank of India’s one time restructuring scheme. This included retail loans worth Rs 925 crore and corporate loans worth Rs 2,956 crore. The bank held provisions worth Rs 632.35 crore against these restructured loans.
The bank claims to have made higher than required provisioning due to change in policy for non-performing advances. “The change in policy resulted in higher provision on non-performing advances amounting to Rs 1,127 crore for aligning provisions on outstanding loans to the revised policy,” it said. Based on current assessment of the portfolio, the bank also wrote back Covid-19 provisions amounting to Rs 1,050 crore made in earlier periods.
The non-interest income (excluding treasury income) increased by 56% y-o-y to Rs 3,706 crore. The non-interest income included fee income of Rs 3,219 crore, which grew 53% y-o-y.
Total advances increased by 17% y-o-y to Rs 7.38 lakh crore. The retail loan portfolio grew by 20% y-o-y and comprised 61.4% of the total loan portfolio. 4.0% of total loans at June 30, 2021. The growth in the domestic corporate portfolio was about 11% y-o-y driven by disbursements to higher rated corporates and public sector undertakings across various sectors.
Total deposits increased by 16% y-o-y to Rs 9.26 lakh crore. Average current account deposits increased by 32% y-o-y and average savings account deposits increased by 22% y-o-y in Q1FY22. Similarly, total term deposits increased by 9% to Rs 5.01 lakh crore during the June quarter.
The bank’s capital adequacy ratio remained 19.27%, compared to the minimum regulatory requirements of 11.08%.
State Bank of India (SBI) on Saturday opened a new branch at the President’s Estate in New Delhi.
The branch, which was inaugurated by President Ram Nath Kovind, will provide all types of banking services to the residents of President’s Estate, India’s largest bank said in a statement.
The branch will offer safe deposit lockers and is also equipped with ATM, cash deposit machine and self-service passbook printer, it added.
Dinesh Khara, Chairman, SBI, said, “The branch will offer a convenient and seamless banking experience to all the customers. This branch at President’s Estate is a jewel in the crown for SBI.”
Financial Express is now on Telegram. 
