Scheme: An open ended dynamic asset allocation plan
Benchmark- CRISIL Hybrid 50+50 – Moderate Index TRI
Exit Load
NIL – If units purchased or switched in from another scheme of the Fund are redeemed or switched out up to 10% of the units (the limit) purchased or switched on or before 1 year from the date of allotment
1% of the applicable NAV – If units purchased or switched in from another scheme of the Fund are redeemed or switched out in excess of the limit on or before 1 year from the date of allotment
NIL – If units purchased or switched in from another scheme of the Fund are redeemed or switched out after 1 year from the date of allotment
Application Amount
Rs. 5000/- and in multiples of Rs. 1 thereafter
Additional Purchase: Rs. 1000/- and in multiples of Rs. 1 thereafter
Features of the SBI Balanced Advantage fund:
1. Optimal asset allocation: Various parameters are accounted for to determine the accurate mix of assets for fund deployment. The assets are equity, for the purpose of making arbitrage gains as well as in fixed income assets.
2. Lower liquidity: Dynamically managed Debt and Arbitrage portion of the scheme helps in reducing the volatility when the equity market become unfavourable.
3. Complete flexibility: Investors can choose between 0-100% in debt or equity
4. SWP (A) facility: the fund comes with an option that allows withdrawal of some fixed portion of the investment or specified amount to get regular cash flow.
Who should invest in SBI Balanced Advantage Fund?
Risk averse equity investor class with an investment horizon of a minimum of 3 years and chasing capital appreciation and wealth creation need to target such funds. The fund also typically adjusts between equity and debt allocation in view of the market momentum, so those of you who don’t want to actively track your investment can take peace by investing in this SBI fund.
Portfolio creation in the fund
Here the fund’s portfolio is constructed using these 3 points:
1. Valuations- Here relative valuation are given a higher importance and so equity valuation are compared to debt valuation across markets and time. When equities are seeming to be expensive, more of the funds are channelized into debt and vice-versa.
2. Sentiment: To arrive at a better asset allocation and here the sentiment index is developed which considers several factors such as market internals, positioning etc. These factors provide a sense of where we are positioned in the fear to greed spectrum. When the mood is depressing, more of allocations are made into equity and in the other case when it is devouring, most of it is allocated to debt.
3. Earnings outlook: Earnings outlook is also given a due weightage to arrive at the selection of stocks.
Conclusion:
For reducing the volatility and to yield optimal returns through automatic adjustment between equity and debt, the fund aims to provide offer optimal risk-reward ratio. So, risk averse investors who do not have a high penchant for risk can take an exposure into this fund and at the same time can get higher flexibility with their equity or debt allocation.
The Payments Infrastructure Development Fund (PIDF) Scheme was announced by the Reserve Bank on January 5, 2021. The objective of the scheme was to encourage deployment of Points of Sale (PoS) infrastructure (both physical and digital modes) in tier-3 to tier-6 centres and north eastern states.
The Reserve Bank has now decided to include street vendors identified as part of the PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi Scheme) in tier-1 and tier-2 centres as beneficiaries under the PIDF Scheme. As hitherto, the street vendors in tier-3 to tier-6 centres will continue to be covered under the Scheme.
This decision to expand the targeted beneficiaries under the PIDF scheme will provide fillip to the Reserve Bank’s efforts towards promoting digital transactions at the grass root level.
There are only a few takers for the debt restructuring facility offered by the Reserve Bank of India (RBI) under its Resolution Framework 2.0 amid demand recovery, according to a Crisil Ratings survey of about 4,700 companies rated by it.
Crisil Ratings’ investment grade rated corporates have shown resilience amid the pandemic and hardly anyone is planning to avail restructuring 2.0.
Sub-investment grade
In fact, the survey shows that as much as 95 per cent of those opting for, or are inclined to seek restructuring, belong to the sub-investment grade rating category.
Within the sub-investment grade companies, four out of five are rated in the ‘B’ or lower rating categories, clearly indicating that only companies with weak credit quality are exploring restructuring, the credit rating agency said.
Crisil cautioned that any weakening of sentiment around recovery, and a likely third wave leading to fresh curbs on economic activity, will influence more companies to seek restructuring 2.0.
“This could be especially true for the smaller ones that typically experience more stress. Greater clarity will emerge closer to the September 30, 2021, deadline set by the RBI for invoking the restructuring plan,” it said.
Crisil emphasised that these are preliminary readings from the survey, and may not be reflective of the inclination among those not rated by it.
In particular, most of the micro and small enterprises in India are unrated, it added.
Resolution Framework 2.0
The RBI had, on May 5, 2021, announced the Resolution Framework 2.0 for Covid related stressed assets of individuals, small businesses and micro, small and medium enterprises (MSMEs) with aggregate exposure of up to ₹25 crore.
This facility is available provided the aforementioned entities had not availed benefits under any of the earlier restructuring frameworks (including Resolution Framework 1.0 dated August 6, 2020), and were classified as standard accounts as on March 31, 2021.
Referring to the RBI raising the aggregate debt threshold under Resolution Framework 2.0 to ₹50 crore from ₹25 crore on June 4, 2021, the agency said, “This increase in threshold led to about two-thirds of the Crisil-rated mid-sized companies becoming eligible for the restructuring 2.0 scheme.”
Corporates give restructuring option a miss
Crisil opined that the fact that only a handful of companies are exploring the restructuring option could be reflective of a relatively improved business outlook accompanying a pick-up in economic activity in the aftermath of the pandemic’s second wave.
Subodh Rai, Chief Ratings Officer, Crisil Ratings, said, “The quick recovery in demand after moderation during the second Covid-19 wave, and sanguinity around economic growth have led corporates to give the restructuring option a miss.
“The more localised and less stringent nature of curbs/restrictions during the second wave has meant relatively lower disruption in business activities compared with the first wave. So the muted response is par for the course.”
Nitin Kansal, Director, Crisil Ratings, said, “Most of the companies that have opted for, or are contemplating restructuring 2.0 belong to the low-to-medium resilience sectors such as hospitality, educational services, textiles, construction and gems and jewellery.
“Demand recovery in some of these remains uncertain because of the continuing overhang of the pandemic.”
The phrase “trading” simply refers to the process of exchanging one item for another. We normally think of this as the process of trading commodities for money, or just buying something.
It’s the same approach when it comes to trading in the financial markets. Consider the case of a stock trader. They are, in fact, purchasing shares (or a small portion of a corporation). When the value of those shares rises, they profit by reselling them at a greater price. This is how trading works.
Individuals can analyse whether the price of assets will be higher or lower in a given period of time using various modern investing mechanics.
Binomo is a cutting-edge trading platform that caters to both novice and experienced traders. It is the modern way to trade online. All of Binomo’s traders use a customized trading platform. The platform implements the SSL protocol to encrypt and secure all data, ensuring that your payments remain safe at all times. This is one of the most effective online trading platforms for learning and earning additional income.
What is Binomo?
Binomo is an online trading platform for individuals who seek to increase their income while learning professional trading abilities. It is an online trading platform that emphasizes trading transparency. Under no circumstances would Binomo defraud a trader.
Is Binomo a reliable platform?
The International Financial Commission recognizes it as true, and safe in India. Verify My Trade has given it a certificate for high-quality trades. Traders can investigate evaluations of the broker on the internet through forums like Quora for more verification.
Binomo is safe and secure, both on the website and in the app, as proven by several positive trader reviews and comments. Binomo was also named the best trading platform at the FE Awards in 2015 and the IAIR Awards in 2016. It also answers the question of whether or not the Binomo investment is genuine.
What types of accounts does Binomo offer?
Binomo traders can choose from four different account tiers. These different accounts are specified based on the amount of funding you put into the platform, like with many other online platforms. This implies that increasing your tier does not involve any additional fees or program participation; all you have to do is increase the amount you deposit to alter your account type over time. The four types of account are;
Standard Account
Gold Account
VIP account
Demo Account
How to register and log in to Binomo?
It is a user-friendly website registering with Binomo: Step 1 Visit Website www.binomo.com. Step 2: Login page and click the “Sign in” option. Step 3: Enter a valid email address and a password Step 4: Choose a currency for your account – You can’t change it after registration. Step 5: Read the Client Agreement and Privacy Policy and click on accept Step 6: Click on “Create account” Step 7: Sign in using the email and password created.
How to get training on Binomo?
A Binomo demo account is a fantastic way for traders to learn the fundamentals. It provides a training budget of $1000. Binomo offers customers training and a demo account where they can learn how to trade without putting their capital at stake. Go to Binomo’s Help Center, which is similar to Wikipedia and contains hints and FAQs. Despite the fact that Binomo offers a variety of trading techniques, no strategy can guarantee a perfect trade result. To create accurate projections and earn extra funds, trading necessitates a thorough examination of the market. Contests can be found on www.binomo.com, and traders can enter them. To join and get empowerment for further trading, look for the trophy icon.
How does the trading platform work?
Binomo accepts a variety of deposit options. Investments can be made in India via deposit methods such as NetBanking, UPI, Paytm, Indian exchangers, or GooglePay. Binomo does not charge a withdrawal fee, some charging $31 for each bank transfer. Funds can be withdrawn from Binomo using the same payment systems that were used to deposit it, and it can take anywhere from a few minutes to three days or more, depending on the account status and payment method.
How to make a deposit and withdrawal on Binomo?
Depositing funds is a straightforward procedure. All you need to do is click the yellow Deposit funds button and fill out the required information. The Deposit button may be found on the main Binomo website. It can be found in the upper right corner of the website. Here is the minimum amount you must deposit. The money will be automatically converted if you are using a different currency.
Step Select Payment and Country
You will then be routed to a page where you must select your country’s name and payment method. If you decide to deposit funds with a card, be sure it is current and has your name. It must also handle international internet transfers.
Enter the amount
Depending on the card you’re using, enter the amount you’re depositing. Manually enter the number or select one of the pre-defined financial items on the left side. You can also gain VIP status on Binomo if you deposit $1,000 or more
Following that, you will be prompted to enter your card information, including the card number, expiration date, CVC code, and cardholder name. Click the Confirm and pay button.
Transaction confirmation
A new page will appear, prompting you to enter the 3D secure code in order to assure the safety of your internet transmission. As a one-time authorization password, it will be emailed to your mobile device.
If you have problems with authorization, you should contact your bank to activate this feature.
In a new window, you’ll see a confirmation of the transaction’s successful completion. The deposited funds will be immediately available for trading on the Binomo platform.
How to Withdraw Funds From Binomo?
You must be logged into your Binomo account to use this feature. In the top-right corner of the platform, click on your profile symbol. Then select “Cashier.”
You will be led to a page where you can make a withdrawal request. Choose the “Withdraw Funds” tab. Then you’ll have to decide how much money you want to transfer and how you want to withdraw it. The final step is to click the yellow “Withdrawal Request” button.
Payout amount
There is a minimum withdrawal amount of $10/€10 or its equivalent in your country’s currency. However, in some countries, a reimbursement for a smaller amount might be requested. Contact the Binomo support team to confirm the minimum withdrawal amount in your area.
Withdrawal method
It is recommended that you utilize the same method that you used to make the original investment. It also depends on the payment method. This will help the entire procedure go more smoothly. Either a bank card or an electronic wallet can be used.
What are the pros and cons of the Binomo app?
Pros of trading in Binomo;
The app is customer-friendly and straightforward to use.
It is quite easy for customers with hectic schedules to trade while on the go.
Beginners can use a demo account to practice trading with virtual funds for free.
A large number of educational resources, such as videos and tutorials, are available to help beginners become acquainted with the program.
The platform provides tournaments with appealing conditions for various accounts.
Online customer service is available 24 hours a day, seven days a week.
There is no withdrawal commission.
Available in a variety of languages.
For traders in India, the minimum deposit amount is relatively modest – merely $5.
Traders can learn how to forecast using strategies and analytic tools.
Cons of trading in Binomo;
Some payment methods are not accessible.
There are a limited number of assets to pick from (70+).
Not supported in some countries.
It is impossible to block your account on your own – you must visit the website or contact the support service.
Only after depositing funds may you participate in tournaments via the app.
Binomo Mobile App
On Google Play/AppStore, look for the Binomo logo to find the mobile app, download it, and log in. On Android and iOS, Binomo offers a free app for investing and trading. There is no Binomo program or app for computers (both Windows and Mac). Log in using the website’s desktop version.
How to contact customer service?
Customers can contact Binomo for help through a variety of methods, the most popular of which being live chat. Live assistance is offered immediately through the Binomo platform, so traders don’t have to open a new window to talk to the support team about their questions and issues. A backup email support service is also available, with a response time of typically 24 hours: support@binomo.com
It should be noted that trading carries the risk of capital loss!
For investment related articles, business news and mutual fund advise
The pandemic has forced the brokerage industry to reassess all the business models and their respective go-to-market strategies, which is leading to either an extreme or a moderate disruption, said Bhawna Agarwal Country Head, India – Strategy & Growth, Enterprise Group, HPE India.
“One common theme across all business adoption or acceleration of digital is that it has become completely pervasive. So, all across the section of clients for us, especially the stock brokers, we’re adopting this fast digital way of interacting as well as investing,” she said at the panel discussion on Brokerages Fighting Disruption Digitally at ETBFSICXO
Rising expectations
Sandeep Bhardwaj, CEO, IIFL Securities feels that after using Netflix or Amazon, people don’t differentiate between a banking application or a broking application. “They feel like a broking apps should be like that. This is where it becomes challenging for any brokerage to bring that experience. UI, UX gives millennial users an experience of their taste,” he said.
The whole ecosystem we’re working on for catering to the needs of the new generation needs everything to be faster, quicker, better and simpler, said Jaideep Arora, CEO, Sharekhan.
“Our entire digital platform team has an average age of 26 years, so when they know for whom they are making a product, they end up creating the same scenario for them. So that is what we are trying to do to get that seamless experience,” Bhardwaj of IIFL Securities said.
A lot of data is being used to really understand how we give the right advice to the right customer in the best manner possible. So basically there’s a digital innovation happening in the account opening onboarding process, said Arora.
“Mixing behavioural science with the technology to leverage is what the entire solution is all about at the end of the day. How we create a user experience, leveraging AI and ML will define the user lifecycle throughout his life,” said Bhardwaj.
Digital is all about collaboration with FinTechs. Rather than building everything in-house and spending money, it’s all about collaborative work. So it becomes far easier to implement those solutions which are readily available, says Bhardwaj.
Having a very collaborative opensource and working with FinTechs and even smart customers and coming with a lot of solutions can help the whole system, and it will be a win-win across the industry, said Arora of Sharekhan.
“In this ecosystem, the learning is that you are not alone, you have to collaborate with FinTechs, you need to have rich API’s, engage with other partners and customers as well. You have to cover all aspects of digital transformation at all levels and really immerse into it, and then you truly grow. This is what our belief is,” he said.
Government of India has announced the sale (re-issue) of Government Stock detailed below through auctions to be held on August 27, 2021.
As per the extant scheme of underwriting notified on November 14, 2007, the amounts of Minimum Underwriting Commitment (MUC) and the minimum bidding commitment under Additional Competitive Underwriting (ACU) for the underwriting auction, applicable to each Primary Dealer (PD), are as under:
(₹ crore)
Security
Notified Amount
Minimum Underwriting Commitment (MUC) amount per PD
Minimum bidding commitment per PD under ACU auction
5.63% GS 2026
11,000
262
262
New GoI FRB 2034
3,000
72
72
6.64% GS 2035
10,000
239
239
6.67% GS 2050
7,000
167
167
The underwriting auction will be conducted through multiple price-based method on August 27, 2021 (Friday). PDs may submit their bids for ACU auction electronically through Core Banking Solution (E- Kuber) System between 09:00 A.M. and 09:30 A.M. on the date of underwriting auction.
The underwriting commission will be credited to the current account of the respective PDs with RBI on the date of issue of securities.
“The expansion in Tier 1 capital reinforces Barclays’ commitment to India, and will enable further growth of the bank’s corporate and investment banking and private clients businesses,” the statement said.
Jaideep Khanna, Head of Barclays, Asia Pacific, and Country CEO, India, said, “The capital infusion in the bank reflects the success and strong track record of our India franchise built over the last three decades.
“We have ambitious growth aspirations, and the investment will help accelerate that as we look to leverage the attractive opportunities that the present situation offers.”
Khanna observed that as economic activity gathers momentum, there is increased demand for capital from clients.
“We are well placed to support their objectives and remain committed to working closely with them,” he added.
Barclays Bank’s operations in the country comprises financing, advisory and risk management businesses within investment bank; corporate banking, including cash management and trade finance; private clients business for high and ultra high networth individuals and family offices.
As part of its expansion in the country, Barclays Bank PLC had inaugurated its International Banking Unit (IBU) branch at GIFT City in Gujarat in February 2021.
The Reserve Bank of India has appointed Shri Ajay Kumar as Executive Director (ED) with effect from August 20, 2021.
Prior to being promoted as ED, Shri Ajay Kumar was heading the New Delhi Regional Office of the Bank as Regional Director.
Shri Kumar has, over a span of three decades, served in foreign exchange, banking supervision, financial inclusion, currency management and other areas in the Reserve Bank.
As Executive Director, Shri Kumar will look after Department of Currency Management, Foreign Exchange Department and Premises Department.
Shri Kumar is Masters in Economics from Patna University, MS in Banking from ICFAI and Certified Bank Manager from Institute of Bank Management and Research, Hyderabad. He has undertaken Executive Management Programme from Kellogg School of Management, Chicago and holds other professional qualifications including Certified Associate of Indian Institute of Banking and Finance (CAIIB).
Tamanna Inamdar: How do you view the govt’s new asset monetisation plan in light of past experiences? Subhash Chandra Garg: Monetisation has two clearly stated objectives which are very worthwhile.
One, you have invested some money in road or airport or rail or whatever, and now you need more money to invest. Therefore, the asset which has been created is passed on to private entrepreneurs to operate it, and then take that capital back to invest into something new.
Two, better operation of an asset. A toll road operated by NHAI or an airport operated by AAI or an electricity distribution company run by a state entity gets better operated if it is operated by private entity.
There is immense sense in monetising operating assets. There is lot of confusion and unnecessary misinformation that monetisation is sale of assets, which it is not. And sale of asset is not a bad thing. I do not think the government should be defensive about it.
There is no need to be defensive about selling banks, insurance companies, BPCL etc. That is a different route which should be taken to its logical course. What can get appropriately sold should be sold and monetised. There is nothing wrong about it. It is a perfectly justifiable thing to do.
One concern is over who gets these assets. Can it create monopolies with these going into the hands of a few, like people fear? In India, operating of important assets is too much decentralised. There are actually too many operators. There is a necessity for large efficient players to run road assets or airport assets.
For example, buses and trucks in many states have single owners. They cannot invest, they cannot maintain those assets. Same is the case with the government. The Airport Authority of India has over 130 airports, but it cannot maintain them well.
There are 5 to 10 good operators in the country and three or four very good airport operators. Only about 20 airports are at best going to or have gone into private hands. So I think this concern over monopolies is completely misplaced.
India is a very large country with a huge number of entrepreneurs. We should only actually consolidate. Take example of telecom. There are three operators. Does it serve the country’s interest badly? Should there be 20-25 telecom operators?
The same thing applies to roads or rail. If we have 5, 10 or 20 strong players, I think we will be better off. This concern is overblown. I do not think it is in national interest to be worried about potential monopolies.
Similar plans in the past haven’t had roaring success. What is your take on this particular plan? That is where the main challenges lie. The government did very well in monetisation of six airports in 2019, but thereafter there hasn’t even been a single transaction.
In roads also, we have struggled. There have been only five packages so far of ToT. Two of them did not take off at all in last five years; we have only done three. There is not much success anywhere else.
Now, this particular plan which talks of Rs 6 lakh crore over four years — that is Rs 1,50,000 crore a year — is simply too ambitious. I do not think there is any likelihood of it getting done. The institutional mechanisms which we have created are also not at all conducive for this to happen.
I honestly think that the government will not be able to deliver on it. If it does even 20% of what it is saying, I would be very happy.
When the government comes up with these mega pipelines — infrastructure pipeline earlier, monetisation pipeline now — the numbers are staggering, very big. There is absolutely no capacity, no clarity of structure. The sheer inability and the record of the government in carrying out such transactions makes me very suspicious.
As I said, I do not see more than 20% of it being met. My estimate is that the government, in four years, will end up with only 10% of this pipeline being achieved.
After almost two harrowing years of the pandemic, bank chief executives are looking ahead for a period of stability and growth with predictions of an uptick in credit demand.
Sanjay Singh, Deputy CEO, BNP Paribas India
Sanjay Singh, Deputy CEO, BNP Paribas India
“All the factors are favouring the capex revival. Low interest rates, lower leverage, efficient ecosystem, and demand uptake. All are indicating that capex will resume in next six months,” Sanjay Singh, Deputy CEO, BNP Paribas India, said at the CEO Panel discussion BFSI Leaders: Unlocking Business Value at ETBFSI Summit.
Singh said his bank’s focus is to embrace the best of traditional banking and a mix of new-age technologies.
Rajeev Yadav, MD & CEO, Fincare Small Finance Bank
Rajeev Yadav, MD & CEO, Fincare Small Finance Bank
Focus on risks
Along with growth and revival, bankers are also focused on risks.
Risk taking in the post pandemic world is a very important factor for all. Retail lending is a safer bet than corporate, said Rajeev Yadav, MD & CEO, Fincare Small Finance Bank. “Being a retail bank, we are taking retail risk. Retail lending is stabilised and fear of incremental lending is no more there,” he said.
Sunil Prabhune, Chief Executive-Rural & Housing Finance and Group Head-Digital, IT & Analytics, L&T Financial Services
Sunil Prabhune, Chief Executive-Rural & Housing Finance and Group Head-Digital, IT & Analytics, L&T Financial Services said that the business metrics have changed and the vaccination of employees is now an integral factor.
“Liquidity is not a problem anymore. We are extra conscious about risks and are focusing on how to retain customer franchise by maintaining the relation without meeting the customer. The strategy is to use data intelligence rather than conventional wisdom or rule of thumb for decision making,” he said.
During the pandemic it’s okay to miss top-line success because survival is the major objective, Yadav of Fincare said. “Shouldn’t worry about any loss of GDP or growth. As compared to 2019 data we are doing better,” he said.
On growth
Bank CEOs see a lot of pent-up demand.
“On an average credit demand is muted but there are pockets where demand is thriving. Use of behavioral analytics, machine learning, tailoring asset strategy etc. has helped us to recover faster, said Prabhune of L&T Financial Services, adding that his company’s disbursement this quarter was 3-3.5 times of the last quarter.
Nitesh Ranjan, ED, Union Bank of India said credit demand is subdued right now but definitely recovering from what is seen in the last six months across the spectrum. “Push from the government will help. The demand is high in Agri, renewable energy, Infra and warehousing,” he said.
“In the new normal world, we look at data and decide business operations. We are a rural bank and our rural business is shaping up better than pre-Covid,” Yadav of Fincare said,
Covid didn’t have any impact on businesses that are part of essential services, i.e. agri, dairy, he said, adding that credit demand is reasonably strong.
Future trends
The focus is on the next 3-5 years, how to better leverage digital and data, how to build capacity to manage people and continuously invest in the right risk architecture, said Ranjan of Union Bank of India.
Can banks build their own super app since they have a large customer base, asked Anand Dalmia, Co-founder, Fisdom. “With a super app, banks can offer more service to customers,” he said.
Prabhune of L&T Financial Services said “Monitoring is not something when it’s going wrong. Our focus is to detect what is something like to happen rather than what has happened. Can we predict if a customer is going to delay his payment for a day?”
Yadav of Fincare wants to focus on basic banking objective which the bank missed due to the pandemic. “We would like to have in-house talent rather than depending on the others,” he said.
Learnings from Covid
Ranjan said the PSU bank merger was a major challenge along with Covid. “Overnight we doubled the size. But we are seeing a much better period than what we have seen. With vaccination, we will be in a better place and business continuity is also improving.”
All of us had plans for 3-5 years. Covid taught us to accelerate the plans to one year.
Dalmia of Fisdom said during the pandemic FinTechs gained a lot due to digital adoptions by banks. We focused on getting more partners onboard. “We have collaborated with 10 banks. Banks have many retail customers, which is beneficial for FinTechs.”
