Month: August 2021

Home loans defy Covid blues

Banking & Finance

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If the home loan portfolios of major banks, as reflected in the first quarter numbers, is any indication, Covid-19 has not deterred home buyers.

A comparative analysis of housing loan data of banks for the first quarter shows a significant increase ranging from six per cent to about 14 per cent compared with the corresponding quarter of the previous fiscal.

For State Bank of India, the home loan portfolio increased 11 per cent to ₹5,05,473 crore in the first quarter of the current fiscal ended June 30, 2021, constituting 23 per cent of the bank’s total domestic advances compared with ₹4,55,443 crore in the year-ago period. That Covid did not impact demand for home loans is also evident from the fact that in the previous year (FY20-21), SBI posted only a 10.72 per cent growth in the segment.

SBI is not alone. Canara Bank’s home loan portfolio, too, increased 13.15 per cent during the period at ₹65,136 crore. In the previous year, the growth in portfolio was only 10.6 per cent. Punjab National Bank is also in the same league as it registered a 6.1 per cent growth.

 

Key drivers

On what drove the surge in home loans, a senior SBI official said: “Bank employees braved the pandemic and processing of loan applications and disbursal were not adversely impacted. In the absence of corporate loan growth, there has also been greater focus on retail loans, of which home loans constitute a major chunk.’’

Sanjiv Chadha, Managing Director & CEO, Bank of Baroda, said: “Home loans are growing pretty much as per market.’’ During the pandemic times, home loans, along with gold and car loans, are seen as ‘very safe’ for business, say bankers.

The growth in home loans will be sustained in the current year too, say analysts. Banks are also stepping up efforts to sustain the growth.

SBI has sharpened its focus on housing loans. As part of its ‘Monsoon Dhamaka’ offer, it announced a 100 per cent waiver on processing fees till August 31. Before the offer, the processing fee was 0.40 per cent.

Other banks are also gearing up to woo customers with special offers for the coming festival season.

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New credit cards: RBI partially lifts curbs on HDFC Bank

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In a major relief for HDFC Bank, the Reserve Bank of India has partially lifted the ban on the private sector lender and has allowed it to issue new credit cards.

“The bank has received a letter from the RBI lifting the restriction on sourcing of new cards,” said a person briefed on the development.

The bank will have to submit a board-approved letter of commitment to continued compliance with IT requirements, the person said, adding that it is expected the lender will submit it shortly. The restriction on digital launches will continue as of now.

The Reserve Bank of India had in December last year directed HDFC Bank to temporarily halt sourcing of new credit card customers as well as launches of digital business generating activities planned under its proposed programme Digital 2.0.

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Reserve Bank of India – Press Releases

Press Releases

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April 14, 2015




Dear All




Welcome to the refurbished site of the Reserve Bank of India.





The two most important features of the site are: One, in addition to the default site, the refurbished site also has all the information bifurcated functionwise; two, a much improved search – well, at least we think so but you be the judge.




With this makeover, we also take a small step into social media. We will now use Twitter (albeit one way) to send out alerts on the announcements we make and YouTube to place in public domain our press conferences, interviews of our top management, events, such as, town halls and of course, some films aimed at consumer literacy.




The site can be accessed through most browsers and devices; it also meets accessibility standards.



Please save the url of the refurbished site in your favourites as we will give up the existing site shortly and register or re-register yourselves for receiving RSS feeds for uninterrupted alerts from the Reserve Bank.



Do feel free to give us your feedback by clicking on the feedback button on the right hand corner of the refurbished site.



Thank you for your continued support.




Department of Communication

Reserve Bank of India


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MPC voted to give growth a chance to claw back into the sunlight: RBI Bulletin

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The Monetary Policy Committee (MPC) voted to give growth a chance to claw its way back into the sunlight, according to an article in the Reserve Bank of India’s latest monthly bulletin.

The MPC’s decision — to keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 4 per cent and continue with the accommodative stance — is backed by all available evidence – mobility-, activity- and survey-based, according to the article ‘State of the Economy’.

 

“Yet it is, in the ultimate analysis, a judgement call because at the heart of the association between growth and inflation, a sacrifice is embedded,” according to the article put together by 23 RBI officials, including Deputy Governor MD Patra.

The authors observed that a reduction in the rate of inflation can only be achieved by a reduction in growth; an increase in growth is only possible by paying the price of an increase in inflation, always and everywhere.

 

“Called the sacrifice ratio in economics, the latest estimates for India suggest that for a one percentage point reduction in the rate of inflation, 1.5-2 percentage points of GDP growth have to be foregone,” assessed the authors.

The authors posed the question: “But what if the MPC doggedly attacks the supply shock induced price pressures in spite of the current state of the pandemic-ravaged economy and as a consequence, economic activity wilts into depression?”

The authors emphasised that no amount of humility will wipe away the tears then.

“Also, our MPC is India-focused; it has to be. It must choose what is right for India, emulating none, not emerging nor advanced peer,” they added.

The article noted that so far, inflation is on track to staying within the trajectory envisaged (average 5.7 per cent in FY22) and it is likely to stabilise during the rest of the year.

“In our view, this is a credible forward-looking mission statement for the path of inflation,” the authors said.

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Multibagger: These 3 BSE SME Stocks Have Given Returns Between 1000-5000 Percent

Personal Finance

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Aditya Vision

Aditya Vision, founded in 1999, is a Small Cap business in the Retail sector with a market capitalization of Rs 920.00 crore. The stock returned 1156.01 percent over three years, compared to 36.93 percent for the Nifty Smallcap 100.

At the time of listing, Aditya Vision had a lot size of 8000 business shares at a price of $15. This equates to a total investment of Rs. 1.20 lakh (15 x 8000). If a winning bidder had held on to his shares until now, his 1.2 lakh would have grown to 61.188 lakh. The company has given gains of 4,899 percent since its inception. The company has increased by 2,996 percent in the last year.

The SME stock on the BSE is currently selling at Rs.764 per share.

Raghav Productivity Enhancers

Raghav Productivity Enhancers

Raghav Productivity Enhancers was founded in 2009, is a Small Worth business in the Metals – Non Ferrous sector with a market cap of Rs 808.49 crore. The business’s first public offering (IPO) was priced at Rs 39 per equity share, with 3000 company shares in one lot. This suggests that a minimum investment of 1.17,000 (39 x 3000) was required.

For the first time in five years, the company is debt-free. On August 2, shares of Raghav Productivity Enhancers, a relatively unknown company, were trapped in the upper circuit for the seventh session in a row. Rakesh Jhunjhunwala, dubbed “Big Bull,” will invest up to Rs 31 crore in the company.On the BSE, the SME stock is currently trading at Rs.743 per share. The company has given gains of 2, 498 percent since its inception. The company has increased by 578 percent in the last year.

Investors who bought in Raghav Productivity Enhancers and held onto the stock after share issuance would have seen their 1.17 lakh investment grow to today’s 22.30 lakh.

Shree Ganesh Remedies

Shree Ganesh Remedies

The company Shree Ganesh Remedies Ltd. was founded in 1995. Its share price presently is 352.65. It currently has a market capitalization of Rs 352.88 crore. The company reported gross sales of Rs. 584.26 crores and total income of Rs.626.04 crores in the most recent quarter.

The lucky bidders were rewarded with a 10 percent listing gain on the BSE SME stock when it debuted on the exchange at 40. Today the share price of Shree Ganesh Remedies is Rs 356.90 per share.

Had a lucky bidder been invested in this SME stock till now, its total value of 1,08 lakh would have now grown to 9,91 Lakh. The company has given gains of 1,110 percent since its inception. The company has increased by 273 percent in the last year.

Disclaimer

Disclaimer

The views and investment tips expressed by authors or employees of Greynium Information Technologies, should not be construed as investment advise to buy or sell stocks, gold, currency or other commodities. Investors should certainly not take any trading and investment decision based only on information discussed on GoodReturns.in



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Insurers look to IRDAI to hike premium

Banking & Finance

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Amid mounting losses facing general insurers, the insurance regulator is understood to be examining the proposal to increase the premium for Covid-specific cover, but a decision is yet to be taken.

According to sources close to the development, the Insurance Regulatory and Development Authority of India (IRDAI) is set to call a meeting of the actuaries to further discuss the issue of re-pricing of Corona Rakshak and Corona Kavach policies.

Non-life insurers, which had earlier also made a representation to increase the premium for these policies, have now pointed to their Q1, saying it is difficult to survive without a hike in the rates of these policies. “Non-life insurers are bleeding on the back of huge claims on health covers due to Covid. The combined ratios of many private sector general insurers are as high as 125 per cent.

“A review of the rates of these policies is much needed, especiallysince their premium is so low,” noted the head of a general insurance company.

Another insurance executive said companies are awaiting further word from the IRDAI to come out with revised rates. “There has been some discussion, but we are still waiting for further directions,” he said.

The Corona Kavach and Corona Rakshak policies were launched last year by all insurers to provide Covid-specific cover to customers.

Corona Kavach is a family health insurance policy for Covid-19, while Corona Rakshak is a defined benefit policy. Premiums for these policies are as low as ₹150 in some cases.

The third wave

The second wave of the pandemic led to a rise in claims by at least two to three times for health insurance compared to the first wave last year, and insurers are now preparing for a third wave as well.

Some companies have also indicated that they may increase premiums for health cover across the board this year.

Insurance companies have paid Covid-related health claims of over ₹15,000 crore since the start of the pandemic.

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Reserve Bank of India – Press Releases

Press Releases

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April 14, 2015




Dear All




Welcome to the refurbished site of the Reserve Bank of India.





The two most important features of the site are: One, in addition to the default site, the refurbished site also has all the information bifurcated functionwise; two, a much improved search – well, at least we think so but you be the judge.




With this makeover, we also take a small step into social media. We will now use Twitter (albeit one way) to send out alerts on the announcements we make and YouTube to place in public domain our press conferences, interviews of our top management, events, such as, town halls and of course, some films aimed at consumer literacy.




The site can be accessed through most browsers and devices; it also meets accessibility standards.



Please save the url of the refurbished site in your favourites as we will give up the existing site shortly and register or re-register yourselves for receiving RSS feeds for uninterrupted alerts from the Reserve Bank.



Do feel free to give us your feedback by clicking on the feedback button on the right hand corner of the refurbished site.



Thank you for your continued support.




Department of Communication

Reserve Bank of India


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Bounce rates for auto-debit transactions fall in July

Banking & Finance

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In an indication of easing financial stress amongst borrowers, the number of unsuccessful auto-debit requests declined in July, reversing a three-month trend that started with the second wave of the pandemic and localised lockdowns.

Data with the National Payments Corporation of India from the National Automated Clearing House (NACH) reveals that the number of unsuccessful auto-debit requests in July was at its lowest level this fiscal year.

Of the total auto-debit transactions of 8.64 crore in July 2021, 2.87 crore were unsuccessful or returned while 5.77 crore were successful. This translated into a bounce rate of 33.23 per cent in July.

Elevated bounce rates

Auto debit bounce rates have remained elevated since the start of this fiscal year at 34.05 per cent in April and then increasing to 35.9 per cent in May and 36.5 per cent in June. It was at a low of 32.8 per cent in March.

Auto debit transactions are typically done by customers for recurring payments such as EMIs and insurance premiums. The data does not capture intra-bank transactions.

With the second wave of the pandemic affecting normal life and economic activities, many banks and NBFCs had reported rising stress and a drop in payments by their borrowers in the first quarter of the fiscal as a large part of the economy was impacted. Some had also attributed the drop to widespread infections and difficulties in collections.

Recovery by June-end

However, by the end of June, collection efficiency had begun to improve and it further recovered in July.

“Non-banks reported a steep deterioration in asset quality (stressed loans up 75-1,150 basis points quarter on quarter) during the quarter, owing to lower collections in April and May 2021. Collections picked up in June 2021 and further increased in July 2021,” said a report by Kotak Institutional Equities, adding that early trends in the second quarter are encouraging, though there may be wide variations in the pace of recovery.

The report further noted that banks also reported a higher level of upgradations as banks were able to resume collections and recoveries towards the last few weeks of the first quarter.

Equitas Small Finance Bank recently said that collection efficiency in July improved to 104.62 per cent from 83.49 per cent in June.

Nitin Chugh, MD and CEO, Ujjivan SFB, said that collection efficiency recovered to 78 per cent in June 2021 against 94 per cent in March, and further recovered to 93 per cent in July.

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Spice Money sets up 1 lakh micro-ATMs in rural India

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Spice Money on Tuesday said it has established a network of one lakh micro-ATMs (mATM) operating across rural India.

“During the pandemic induced lockdown, micro-ATMs emerged as the key driver to assist people with cash withdrawal and other essential services. Spice Money’s mATM network grew multifold from just over 18,000 in February 2020 to over 1,00,000 as on today,” it said in a statement.

The company covers 95 per cent of the rural pincodes in India with more than 7 lakh Adhikaris on its network, maximising the reach of the micro-ATMs to the financially underserved and cash-driven parts of the nation, it further said.

Spice Money witnesses over ₹1,000 crore worth of transaction on a monthly basis on its mATM network.

“While establishing a lakh – strong ATM network is a milestone for us, we will continue growing our reach and supporting more rural customers in their financial needs,” said Sanjeev Kumar, Chief Executive Officer, Spice Money.

Sonu Sood, Brand Ambassador and Advisory Board Member, Spice Money noted that micro-ATMs can play a crucial role in bridging the gap in financial services by bringing the convenience of banking transactions right to the next door kirana stores in rural India.

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Reserve Bank of India – Press Releases

Press Releases

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April 14, 2015




Dear All




Welcome to the refurbished site of the Reserve Bank of India.





The two most important features of the site are: One, in addition to the default site, the refurbished site also has all the information bifurcated functionwise; two, a much improved search – well, at least we think so but you be the judge.




With this makeover, we also take a small step into social media. We will now use Twitter (albeit one way) to send out alerts on the announcements we make and YouTube to place in public domain our press conferences, interviews of our top management, events, such as, town halls and of course, some films aimed at consumer literacy.




The site can be accessed through most browsers and devices; it also meets accessibility standards.



Please save the url of the refurbished site in your favourites as we will give up the existing site shortly and register or re-register yourselves for receiving RSS feeds for uninterrupted alerts from the Reserve Bank.



Do feel free to give us your feedback by clicking on the feedback button on the right hand corner of the refurbished site.



Thank you for your continued support.




Department of Communication

Reserve Bank of India


Next

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