Month: October 2021

Mobile payments surpass credit cards in 2021: Report

Banking & Finance

[ad_1]

Read More/Less


Mobile payments in India are now growing faster than card payments as more consumers and businesses adopt digital payments amidst the pandemic, said the 2021 India Mobile Payments Market Report.

According to the report, payments made via apps that bypass credit cards rose 67 per cent to $478 billion in 2020. They are clocking more than $1 trillion in annualised value in 2021.

“…we expect mobile payments to continue to grow faster than cards due to a growing consumer preference to use smartphones to pay,” said the report published by S&P Global Market Intelligence’s Financial Institutions Research team.

By comparison, credit card transaction value in the industry dropped by 14 per cent in fiscal 2021. For banks, the ongoing pandemic shaved off $524 million in credit card interchange revenue according to its estimates, as consumers hunkered down amid lockdown measures.

“Mobile payments in India accelerated their lead over cards amid the Covid-19 pandemic. Large technology companies intermediating mobile payments are becoming financial supermarkets by cultivating partnerships with financial institutions and securing regulatory licenses.”

It also said that demand for cash is slowing in the wake of rising mobile payment adoption. For each ATM withdrawal, Indians made 3.7 transactions using mobile phones in 2020.

It has also forecast that there continues to be room for rapid growth digital payments in India in the next few years.

“Based on a review of instant payments in four large Asia-Pacific economies, India processed the highest number of real-time transactions in 2020,” it said, while noting that the country’s real-time transactions per capita of 16 in 2020 was the lowest in the group, which includes Australia, Thailand and Singapore.

While PhonePe and Google Pay continue to dominate mobile payments, the report said it does not expect India’s mobile payments market to become a duopoly like in mainland China, where Alipay and WeChat process the bulk of mobile payments.

“Payment fintechs with business-to-business models burn significantly less cash than their consumer-facing brethren,” it further said, adding that large fintechs that work closely with large and small enterprises are poised for overseas expansion and business diversification.

[ad_2]

CLICK HERE TO APPLY

Leave a comment , , ,

Shriram City Union Finance posts 10% growth in Q2 net profit

Banking & Finance

[ad_1]

Read More/Less


Shriram City Union Finance has reported a 10 per cent year-on-year (y-o-y) increase in second-quarter standalone net profit at ₹282 crore, against ₹257 crore in the year-ago quarter.

The board of directors of the non-banking financial company, whose product segments include small enterprise finance, two-wheeler loans, loan against gold and personal loans, among others, have declared an interim dividend of 100 per cent (₹10 per equity share of face value ₹10 fully paid) for the financial year 2021-22.

Net interest income (interest income less finance costs) was up about 6 per cent y-o-y to ₹899 crore (₹851 crore in the year-ago quarter).

‘Microfinance lenders should not put profit above social objectives’

Fee and commission income rose 80 per cent y-o-y to ₹18 crore (₹10 crore) and bad debts recovery soared 200 per cent y-o-y to ₹51 crore (₹17 crore).

Net interest margin increased to 12.91 per cent as at September-end 2021, against 12.58 per cent as at September-end 2020.

Loan disbursements jumped about 110 per cent y-o-y to ₹6,423 crore (₹3,061 crore). Assets under management rose 10.5 per cent y-o-y to ₹30,425 crore (₹27,537 crore).

IndusInd Bank Q2 net profit up 72%

The NBFC said pre-provision profit at ₹579 crore is its highest in 12 quarters.

Gross stage 3 assets (credit-impaired loans) position improved to 6.86 per cent of gross advances as at September-end 2021, against 6.91 per cent as at June-end 2021. However, they were up vis-a-vis the September-end 2020 level of 6.67 per cent.

Net stage 3 assets edged up a shade to 3.47 per cent of net advances vis-a-vis 3.46 per cent in the preceding quarter. These assets were at 3.16 per cent as at September-end 2020.

The company’s consolidated (including results of Shriram Housing Finance) net profit increased by 9 per cent to ₹301 crore (₹275 crore).

Consolidated AUM rose about 14 per cent y-o-y to ₹34,680 crore (₹30,316 crore).

[ad_2]

CLICK HERE TO APPLY

Leave a comment , ,

Crypto exchange WazirX disrupted by the rush to buy Shiba Inu coins

Banking & Finance

[ad_1]

Read More/Less


A record-breaking rally and frantic trading in meme-themed crypto currency Shiba Inu has disrupted crypto exchange WazirX, which is headquartered in Mumbai.

Shiba Inu has rallied more than 100 per cent in the past 24 hours on the back of a petition to get it listed on global stock trading brokerage platform Robinhood. Disruption hurts many people as WazirX has more than 9 million users, sources told BusinessLine.

Shiba Inu has been on a dream run since Vitalik Buterin, the founder of the world’s second-largest cryptocurrency Ethererum, donated around $1 billion (₹7,324 crore) worth of Shiba Inu coins to India’s Covid Crypto Relief Fund. This fund was set up by Indian cryptocurrency entrepreneur Sandeep Nailwal on April 24. Buterin is a Russian-Canadian programmer and writer who is known to be close to maverick businessman and Tesla promoter Elon Musk.

Last month, Shiba Inu witnessed a rally as Musk tweeted a photo of his puppy dog that resembles the meme coin. Shiba Inu was founded in 2020 by an anonymous person going by the Japanese name Ryoshi who put it on the blockchain network to decentralise its operations.

Indian cryptocurrency market likely to reach up to $241 million by 2030: Nasscom

In the last 24 hours, the rally in Shiba Inu was due to three lakh people signing petitions on Change.org to get it listed on Robinhood. This led to disruption on WazirX on Wednesday. Crypto exchanges trade for 24 hours 365 days. Little known individual Tristan Luke had started the petition to list Shiba Inu on Robinhood and has received more than lakh signatures. The Dogecoin inspired meme coin Shiba Inu is the 11th largest cryptocurrency with a market cap of $32 billion. It is listed exclusively on WazirX in India.

“We are investigating the delays in the WazirX app and website. Team is working on scaling the systems and will update you as soon as it is fixed. Sorry for the inconvenience,” WazirX told its clients in a communication. It also lists scores of other crypto currencies on its platform but has not given any reason for the tech disruption.

NFTs gaining traction in India as celebrities lead the way

Opaque process

According to traders on WazirX, even though the money was transferred from the bank, their orders could not get executed or the orders once placed could not get cancelled. Also, those who traded on Wednesday had no way to know details of their transactions till Thursday morning. Those buying and selling on WazirX platform have to mainly use Mobikwik pay wallets to transfer their money from bank accounts to and fro. Since Wednesday, Mobikwik, too, had been witnessing payment issues, clients told Business Line.

Crypto exchanges are yet to prove themselves on the technology front and clients say that sometimes buying and selling on them and money transfers are tedious. Yet, due to the hype of crypto trading these exchanges now claim to have more traders registered with them than the mainline stock exchanges like the BSE.

Experts say that WazirX and scores of other crypto exchanges should detail their technology and various other details like inventor profile and checks and balances followed by them in handling client money. The total market capitalisation of the global crypto market is nearly $2.6 trillion, which is the same as India’s gross domestic production.

[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , , , ,

Avanti Finance raises Rs 306 cr in equity, debt funding, BFSI News, ET BFSI

Personal Finance

[ad_1]

Read More/Less


Mumbai, Financial inclusion-focussed non-banking lender Avanti Finance has raised USD 15 million (Rs 111 crore) in series-A2 equity funding round from existing investors Oikocredit, Nomura, Bill & Melinda Gates Foundation and the KR Shroff Foundation, as well as Rs 195 crore in debt. With this cash infusion, Avanti has completed its series-A equity and also debt funding round, raising a total of USD 41 million or Rs 306 crore, the Bengaluru-based company said in a statement on Thursday. It did not, however, say from where it has raised the debt.

Avanti will use the funds to strengthen its tech platform and bolster data science, apart from enhancing its product suite and to expand the team, Rahul Gupta, chief executive of Avanti, said.

Avanti has built a digital platform that facilitates a paperless, presence-less, and cashless approach to lending to reduce cost and friction for the un-served and un-derserved, especially in rural India.

Avanti partners with a diverse set of organisations with strong roots in local communities to offer loan products that are hyperlocal and focused on livelihood sustainability across 21 states covering over 200 districts.

Unitus Capital acted as the exclusive financial transaction advisor to Avanti and Abhiraj Krishna Associates acted as the legal advisors to Avanti. PTI BEN MKJ



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , , , , , ,

This Private Sector Bank Revises Interest Rates On FD & RD: Latest Rates Inside

Personal Finance

[ad_1]

Read More/Less


Kotak Mahindra Bank FD Rates For Regular Customers

The bank is now providing an interest rate ranging from 2.50 percent to 5.30 percent for deposits of less than Rs 2 crore with a maturity period of 7 days to 10 years. On deposits maturing in three years to less than ten years, the bank promises the maximum interest rate of 5.30 percent. For regular residents, Kotak Mahindra Bank is now offering the following interest rates on their deposits with a premature withdrawal option, which are in effect from October 27, 2021.

Maturity Periods Interest rates Annualized Yield
7 – 14 Days 2.50% 2.50%
15 – 30 Days 2.50% 2.50%
31 – 45 Days 2.75% 2.75%
46 – 90 Days 2.75% 2.75%
91 – 120 Days 3.00% 3.00%
121 – 179 days 3.20% 3.20%
180 Days 4.25% 4.25%
181 Days to 269 Days 4.25% 4.30%
270 Days 4.40% 4.45%
271 Days to 363 Days 4.40% 4.45%
364 Days 4.50% 4.55%
365 Days to 389 Days 4.75% 4.84%
390 Days (12 months 25 days) 4.90% 4.99%
391 Days – Less than 23 Months 4.90% 4.99%
23 Months 5.00% 5.09%
23 months 1 Day- less than 2 years 5.00% 5.09%
2 years- less than 3 years 5.15% 5.25%
3 years and above but less than 4 years 5.30% 5.41%
4 years and above but less than 5 years 5.30% 5.41%
5 years and above upto and inclusive of 10 years 5.30% 5.41%
Source: Bank Website. W.e.f. 27th October-2021

Kotak Mahindra Bank FD Rates For Senior Citizens

Kotak Mahindra Bank FD Rates For Senior Citizens

Senior citizens will continue to receive an additional rate of 0.50 percent across all tenures after the bank’s most recent adjustment on fixed deposit interest rates. The bank is now providing elderly citizens a maximum rate of 5.80 percent on deposits of less than Rs 2 crore maturing in three to less than ten years. Senior citizens will now get the following interest rates on their fixed deposits.

Maturity Periods Interest rates Annualized Yield
7 – 14 Days 3.00% 3.00%
15 – 30 Days 3.00% 3.00%
31 – 45 Days 3.25% 3.25%
46 – 90 Days 3.25% 3.25%
91 – 120 Days 3.50% 3.50%
121 – 179 days 3.70% 3.70%
180 Days 4.75% 4.75%
181 Days to 269 Days 4.75% 4.81%
270 Days 4.90% 4.96%
271 Days to 363 Days 4.90% 4.96%
364 Days 5.00% 5.06%
365 Days to 389 Days 5.25% 5.35%
390 Days (12 months 25 days) 5.40% 5.51%
391 Days – Less than 23 Months 5.40% 5.51%
23 Months 5.50% 5.61%
23 months 1 Day- less than 2 years 5.50% 5.61%
2 years- less than 3 years 5.65% 5.77%
3 years and above but less than 4 years 5.80% 5.93%
4 years and above but less than 5 years 5.80% 5.93%
5 years and above upto and inclusive of 10 years 5.80% 5.93%
Source: Bank Website. W.e.f. 27th October-2021

Kotak Mahindra Bank Recurring Deposit Interest Rates

Kotak Mahindra Bank Recurring Deposit Interest Rates

Kotak Mahindra Bank also allows recurring deposits where depositors can select maturity amount and monthly investment amount according to their convenience. The bank has also revised its interest rates on recurring deposits and following the most recent adjustment made on 27th October 2021, Kotak Mahindra Bank is now promising a maximum rate of 5.30% to the general public and 5.80% to senior citizens on their deposits maturing in 3 years to less than 10 years. Below listed are the latest interest rates on recurring deposits for both regular and senior citizens.

Tenure Interest Rate p.a. (%) Senior Citizen Rates p.a. (%)
6 Months 4.25% 4.75%
9 Months 4.40% 4.90%
12 Months 4.75% 5.25%
15 Months 4.90% 5.40%
18 Months 4.90% 5.40%
21 Months 4.90% 5.40%
24 Months 5.15% 5.65%
27 Months 5.15% 5.65%
30 Months 5.15% 5.65%
33 Months 5.15% 5.65%
3 years – less than 4 years 5.30% 5.80%
4 years – less than 5 years 5.30% 5.80%
5 years – 10years 5.30% 5.80%
Source: Bank Website. W.e.f. 27th October-2021



[ad_2]

CLICK HERE TO APPLY

Leave a comment

UCO Bank Q2 net zooms 583% to ₹205 crore

Banking & Finance

[ad_1]

Read More/Less


Riding on the back of a higher growth in net interest income and lower provisions, UCO Bank registered nearly 583 per cent rise in net profit at ₹205 crore for the quarter ended September 30, 2021, compared with ₹30 crore in the same period last year.

Net interest income (NII) grew by 15 per cent to ₹1,598 crore during the quarter under review, against ₹1,394 crore same period last year.

Provisions during the quarter came down by nearly 22 per cent to ₹1,019 crore (₹1,301 crore).

UCO Bank sees ‘improved investor appetite’

Out of PCA framework

The bank had recently come out of the Prompt Corrective Action (PCA) measure of Reserve Bank of India following the compliance of norms by maintaining minimum regulatory capital, net NPA, and leverage ratio on an ongoing basis.

RBI takes UCO Bank out of PCA framework

The operating profit increased by 24 per cent at ₹1,334 crore (₹1,076 crore).

Gross non-performing asset (NPA) as a percentage of total advances declined to 8.98 per cent (11.62 per cent); while net NPA came down to 3.37 per cent (3.63 per cent).

[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , , , ,

Form 26AS; Check Latest Eight New Features Added By Income Tax Department

Personal Finance

[ad_1]

Read More/Less


Taxes

oi-Sneha Kulkarni

|

The Income Tax Department will now provide full details of taxpayers’ financial transactions, such as foreign remittances, the purchase and receipt of dividends on mutual funds, and other off-market transactions reported by depositories in Form 26AS, in order to prevent information suppression by taxpayers.

Form 26AS; Check Latest Eight New Features Added By Income Tax Department

One of the most crucial tax forms for any taxpayer is Form 26AS, also known as a Tax Credit Statement. It accurately reflects the amount of tax you have paid to the IRS, either directly or through other taxpayers.

What is form 26AS?

Form 26AS is a consolidated yearly tax statement that includes information on taxes deducted at source, taxes collected at source, advance tax paid by the assessee, and self-assessment tax. This data pertains to a Permanent Account Number (PAN).

The annual information statement, also known as Form 26AS, will now include the following eight new features:

  1. Information on foreign remittances reported on Form 15CC
  2. Details on TDS on salary in Annexure II of the last quarter’s Form 24Q TDS Statement
  3. Information from other taxpayers’ ITRs
  4. Interest earned on a prior financial year’s income tax refund
  5. PAN information in Form 61/61A, which indicates that if a taxpayer receives a PAN after submitting Form 61, it should be entered in Form 26AS.
  6. Depository/Registrar and Transfer Agent (RTA) reported for Off Market Transactions, which refers to trades that are not settled through an exchange’s clearing organisation.
  7. RTA has disclosed dividend information for a mutual fund.
  8. RTA-reported information on mutual fund purchases.

What is included in form 26AS?

Form 26AS would include information on pay break-up, any deductions to be claimed by the employee, his/her income from other sources and residential property, as well as the overall tax burden.

Its format has altered since last year to include specific financial transactions of taxpayers, which will be supplied in the form of a Statement of Financial Transactions (SFTs).

Buying and selling stocks, real estate, and other financial instruments, as well as making cash payments for bank draughts, Reserve Bank of India-issued pre-paid instruments (such as mobile wallets), cash deposits in a financial year, and payment of credit card bills, are all examples (both cash or and other modes).

Other information about taxpayers, such as Aadhaar number, date of birth, cellphone number, email address, and address, will be included in the new form.

The data must be submitted within three months of receiving it, starting from the end of the month in which it was received. Off-market transactions will also be included in the Form. The necessary depositories or registrars, as well as transfer agents, are responsible for reporting such transactions. Details on the sale or purchase of a motor vehicle, the opening of a demat account with a depository, and hotel payments, among other things, will be added to the database.

Story first published: Thursday, October 28, 2021, 14:27 [IST]



[ad_2]

CLICK HERE TO APPLY

Leave a comment

PayU launches tokenisation solution – The Hindu BusinessLine

Banking & Finance

[ad_1]

Read More/Less


PayU on Thursday launched its tokenisation solution ‘PayU Token Hub’, which will enable businesses to comply with RBI’s latest guidelines on online card data storage whilst allowing issuing banks to also generate their own tokens.

Built on PayU-owned Wibmo in part partnership with major card networks including Visa, MasterCard as well as with leading issuing banks, this solution offers both network tokens and issuer tokens under single hub.

Also read: Top banks in fray for Citi’s India credit card business

PayU Token Hub is as an interoperable plug-n-play solution, to enable card on file and device tokenisation using a single integration point. The solution is available to all merchants, including PayU’s 3.5 lakh merchants and 65 issuers supported by Wibmo.

Manas Mishra, Chief Product Officer, PayU India said, “We welcome the new RBI guidelines, as they empower the customer and ensure safer transactions. PayU has built the most innovative & robust solution to manage easy compliance with these guidelines for all players in the ecosystem. PayU Token Hub is fully interoperable, providing best of network and issuer tokens for card-on-file use cases extensible to device tap-and-pay. It will ensure that popular payments use cases including EMI, subscriptions, instant refunds and offers engines which rely on card numbers can continue seamlessly.”

RBI mandated that only banks and networks will be allowed to store customer card data w.e.f January 1, 2022, hampering customer payments experience at a e-commerce business levels. While the current guidelines are specific to card data storage, PayU Token Hub will soon expand to enable businesses to safely store and create tokens across other popular payment modes like UPI and net banking and contactless device payments.

[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , ,

Nykaa IPO Retail Portion Fully Subscribed Within 1 Hour Of Opening

Personal Finance

[ad_1]

Read More/Less


Investment

oi-Roshni Agarwal

|

As had been the buzz around the Nykaa IPO, there has been seen phenomenal interest in the online fashion retailing company. In just hour, the retail portion has been fully subscribed. As per the NSE data, retail investors as against the available quota of 47,53,187 shares have made an application for 55,47,960 shares by noon.

Nykaa IPO Retail Portion Fully Subscribed Within 1 Hour Of Opening

Nykaa IPO Retail Portion Fully Subscribed Within 1 Hour Of Opening

Overall subscription status as at 12:08 pm as per the brokerage app shows to be 0.35*. On an overall basis, investors made bids for 83,24,076 equity shares or only 31 per cent as of 11.45 am, against the total issue size of 2,64,85,479 equity shares.

A host of brokerages have given a ‘Subscribe’ rating to the IPO given the potential the company has in the online cosmetic and fashion industry as well as the market share it can still garner.

Know whether or not you should tap this investment opportunity.

From the over Rs. 5000 crore IPO, the company will be issuing equity worth Rs. 630 crore and the remaining shall be an OFS.. Marwadi Shares and Finance has a word of caution for investors and has given the IPO with a ‘subscribe with caution’ rating.
Considering the TTM as of June 2021, adjusted EPS of Rs 2.54 on a post-issue basis, the company is going to list at a P/E of 443.46 with a market cap of Rs 53,204 crore, it said.

The chances of listing gains as well as long term prospects as rated by Angel Broking on its app are moderate.

GoodReturns.in



[ad_2]

CLICK HERE TO APPLY

Leave a comment

IPO financing costs double as 5 IPOs set to hit market, raise Rs 31,000 crore, BFSI News, ET BFSI

Personal Finance

[ad_1]

Read More/Less


After the Reserve Bank of India capped the borrowing from NBFCs for IPO subscription to Rs 1 crore per borrower, investors have been hit by doubling interest rates in the last two months.

Funding rates have shot up as many large-sized IPOs are scheduled within a short span of time. Interest rates have risen to 12-13 per cent in the last two months as liquidity has tightened in the system. Liquidity is further seen going down in the next couple of weeks and funding rates may rise further. With five IPOs scheduled to hit the market by November 3 and aiming to raise Rs 31,000 crore, the demand for funds is bound to go up amid a liquidity crunch.

Five IPOs

Five companies are looking to mop up over Rs 31,000 crore cumulatively between October 28 and November 10. Industry players expect Nykaa to be the biggest draw. Its IPO is expected to generate bids between Rs 80,000 crore and Rs 90,000 crore in the HNI category.

NBFCs issue seven-day commercial papers (CPs) to meet this funding requirement. The CPs are issued at 5.5 to 6.5 per cent. Industry players said the huge borrowing requirement had also led to a 100-200 basis points increase in CP rates.

Bajaj Finance, Kotak Securities, IIFL, JM Financial, and Motilal Oswal are among NBFCs that are looking to borrow or have borrowed from the CP market to lend to HNIs to apply for IPOs of Nykaa and others.

Rising costs

With the increase in funding rates, the cost per share has gone up drastically for wealthy investors.

For instance, at 7% for seven days, the cost for one share of Nykaa comes at around Rs 151 for 100 times HNI portion subscription. At 11%, the cost will go up

to Rs 237 per share, and at 13%, it will be Rs 280 per share. This means investors will make money only if the Nykaa lists with a premium of more than Rs 280 per share if one borrows at 13%.

The IPOs of Nykaa and PB Fintech are currently traded at a grey market premium of Rs 670 and Rs 220 apiece, respectively.

Raising funds

While the Nykaa IPO will hit the market on Thursday to raise Rs 5,352 crore, the PB Fintech IPO will open for subscription on Monday, November 1, to raise

Rs 5,710 crore. There is demand for nearly Rs 1 lakh crore from high-net worth investors for these two IPOs against the availability of Rs 50,000-60,000 crore at one time

NBFCs are readying a war chest of close to Rs 2 lakh crore to lend to high net worth individuals (HNIs) for their IPO bets.



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , , , ,
1 … 10 11 12 13 14 … 122