Month: October 2021

This Small Finance Bank Revises Interest Rates On FD: Now Get Up To 7.25%

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Investment

oi-Vipul Das

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Fincare Small Finance Bank provides a variety of fixed deposit options with interest rates as high as 6.75 percent. This small finance bank offers a variety of fixed deposit benefits, including flexible preclosure terms, flexible interest payout options of monthly, quarterly, or cumulative FDs, flexible maturity terms ranging from 7 days to 10 years, additional interest rates for senior citizens, along with other factors. Fincare Small Finance Bank allows 4 types of deposit schemes from its customers which are Smart Fixed Deposit, Priority Plus Fixed Deposit, Tax Saver Fixed Deposit, and Recurring Deposits. The bank has adjusted its interest rates on fixed and recurring deposits, and in addition to the higher rates, the bank also offers deposit insurance of up to Rs 5 lakhs through the Deposit Insurance and Credit Guarantee Corporation (DICGC). For a deposit amount of less than Rs 2 Cr, Fincare Small Finance Bank is now offering the following interest rates on term deposits.

Fincare Small Finance Bank Resident Term Deposit Rates (Less than Rs 2 Cr)

Fincare Small Finance Bank Resident Term Deposit Rates (Less than Rs 2 Cr)

Fincare Small Finance Bank is currently delivering the following interest rates to both regular and elderly people with an alternative of premature withdrawal for deposits of less than Rs 2 Cr. Regular customers and senior citizens will now receive the maximum interest rate of 6.75 percent and 7.25% on deposits maturing in 59 months 1 day to 66 months, as the bank today has amended its interest rates on fixed deposits, which are in effect from October 25, 2021.

Tenure Interest rates for regular customers Interest rates for senior citizens
7 days to 45 days 3.00% 3.50%
46 days to 90 days 3.25% 3.75%
91 days to 180 days 3.50% 4.00%
181 days to 364 days 5.00% 5.50%
12 months to 15 months 6.00% 6.50%
15 months 1 day to 18 months 6.00% 6.50%
18 months 1 day to 21 months 6.00% 6.50%
21 months 1 day to 24 months 6.00% 6.50%
24 months 1 day to 30 months 6.50% 7.00%
30 months 1 day to 36 months 6.25% 6.75%
36 months 1 day to 42 months 6.50% 7.00%
42 months 1 day to 48 months 6.25% 6.75%
48 months 1 day to 59 months 6.25% 6.75%
59 months 1 day to 66 months 6.75% 7.25%
66 months 1 day to 84 months 5.50% 6.00%
Source: Bank Website, w.e.f. 25th October 2021

Fincare Small Finance Bank Resident Term Deposit Rates (For amount Rs 1 Cr to less than Rs 2 Cr)

Fincare Small Finance Bank Resident Term Deposit Rates (For amount Rs 1 Cr to less than Rs 2 Cr)

Fincare Small Finance Bank is currently delivering the following interest rates on fixed deposits of Rs 1 Cr to Rs 2 Cr without the option of premature withdrawal, effective from October 25, 2021.

Tenure Interest rates in %
181 days to 270 days 5.10%
271 days to 330 days 5.10%
331 days to 364 days 5.80%
12 months to 15 months 6.15%
15 months 1 day to 18 months 6.15%
18 months 1 day to 21 months 6.15%
21 months 1 day to 24 months 6.15%
24 months 1 day to 30 months 6.15%
30 months 1 day to 36 months 6.15%
Source: Bank Website, w.e.f. 25th October 2021

Fincare Small Finance Bank Recurring Deposit Rates

Fincare Small Finance Bank Recurring Deposit Rates

Fincare Small Finance Bank offers recurring deposits with terms ranging from 7 days to 84 months, and customers will now receive a maximum rate of 6.75 percent on recurring deposits maturing in 59 months 1 day to 66 months, according to the bank’s interest rate adjustment. Fincare Small Finance Bank’s current interest rates on recurring deposits, effective from October 25, 2021, are listed below.

Tenure Interest rates in %
7 days to 45 days 3.00%
46 days to 90 days 3.25%
91 days to 180 days 3.50%
181 days to 364 days 5.00%
12 months to 15 months 6.00%
15 months 1 day to 18 months 6.00%
18 months 1 day to 21 months 6.00%
21 months 1 day to 24 months 6.00%
24 months 1 day to 30 months 6.50%
30 months 1 day to 36 months 6.25%
36 months 1 day to 42 months 6.50%
42 months 1 day to 48 months 6.25%
48 months 1 day to 59 months 6.25%
59 months 1 day to 66 months 6.75%
66 months 1 day to 84 months 5.50%
Source: Bank Website, w.e.f. 25th October 2021

Story first published: Monday, October 25, 2021, 16:05 [IST]



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Federal Bank | Jhunjhunwala stock: Q2 was good; expect momentum to be strong Q3 onwards: Shyam Srinivasan, BFSI News, ET BFSI

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“Our platform is strong, our fintech arrangements are robust and improving and we will keep investing into that,” says Shyam Srinivasan, MD & CEO, Federal Bank.

Tell us a little bit about how the second quarter looked overall.
Q2 was a good quarter for Federal Bank. All of us know that the biggest test for a bank in very challenging times is the quality of the credit and I am quite pleased. For many quarters, we have been quite consistent about the underwriting and it is interesting that in a time like this, it shows up as a good portfolio. Our slippages were low and the recovery upgrades were higher than the slippages in this quarter. So, we had a writeback in provisions and there was no credit provision. Having said that, we increased our standard asset provision for the stress book or the restructured book. We just prudently built up coverage over a period of time.

Credit growth was modest. Deposit growth was excellent. Savings growth was excellent. Our other income did very well. So many bricks that we have been laying over many quarters are beginning to show up well. The most satisfying part is that in challenging times, we came out better than what many expected of us. It gives us confidence that we can perform even better from here. So on balance, Q2 was a good platform to spring into growth. Hopefully India and the economy is on a trend up. We think we can tap into that and start gaining share, which we have been doing consistently and hopefully Q3 onwards the trajectory and the momentum is strong.

How are the recoveries shaping up and how they are likely to pan out going forward?
I would think the earlier signs of a recovering economy are two things – one is how is our existing client servicing and their dues, particularly on products that are extremely important to them like home loans and vehicle loans; the second is how consumption is playing out. Both are showing good signs of recovery. People were clearing their dues and we saw a good pick up in retail and small business momentum. These are usually signs of optimism and activity happening in the economy. There are pockets like contact businesses which are still going through their own challenges,

I would say on balance there is a positive trend and as Gati Shakti and other big developments start kicking into the country and long-term infra kicks in, we would see even corporate credit growing. Once that goes, that snowballs into incremental growth across the chain. We have to be a little watchful of how the next two-three quarters play out but early signs of recovery are visible through better consumption, particularly in new-age segments. The recovery upgrades have been strong and one can see spends going up.

Debit card spends have picked up back to pre-pandemic levels. I would think the signs of recovering a healing economy is visible and suddenly with well over 100 crore people vaccinated at least one time, the worst fear probably is behind us.

Could you give us a sense of how that credit growth is likely to shape up? Do you anticipate it to be significantly higher based on the uptick in the consumption economy?
We should look at two things in credit growth; one is the aggregate credit growth which still is in the 6-7% year-on-year. But if one disaggregates the credit growth and looks at how some segments are growing, one begins to see pick up in retail, in small businesses as well as commercial banking. It is only the large ticket corporate credits that have not picked up. But that is heavily led by corporates who have access to cheaper money through other instruments and that is not showing as credit growth.

Second is that as the investment cycle picks up and which could be two to three quarters out, credit will come back to early teens.

How are you looking at the ROA as well as the ROE?
Firstly let me begin with digital. You have probably been watching our digital progress. I am not talking about digital in terms of the number of transactions that are digital; that is now a given and it is well over 80-85%. But what is important is how we as a bank have chosen to work with digital. We chose fintech partnerships as a very meaningful part of our incremental growth and we went out and created a super technology architecture which enables fintechs to plug and play with us fast. We have tied up with a couple of new banks, we have arrangements with some of the best brokerage houses, credit card platforms. All of that are beginning to give us momentum on new business building.

As I mentioned in our investor call, well over three lakh accounts have been built on the newer bank platforms. Of course, these are early days. There has been only 90-1,000 days since this started growing but it is evident that that platform is working and customers are able to onboard themselves literally unaided.

So the fintech journey of the bank is well and truly on and certainly in the passage of time, that will only get better. We are well capitalised. Thankfully our credit quality holds back. We grew 10% year-on-year in the first half and I would think the second half usually tends to be better. So, it should get somewhere in the early teens but we will have to watch out how the next two quarters play out. We are more optimistic about the opportunities ahead. Our platform is strong, our fintech arrangements are robust and improving and we will keep investing into that.



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CSB Bank posts 72pc rise in Q2 net profit at Rs 118 cr, BFSI News, ET BFSI

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CSB Bank on Monday reported a 72 per cent jump in net profit at Rs 118.57 crore in the second quarter ended September. The Kerala-based private sector lender had reported a net profit of Rs 68.90 crore in the corresponding quarter of the previous fiscal.

Total income during July-September in FY22 rose to Rs 555.64 crore, as against Rs 513.77 crore in the year-ago quarter, CSB Bank said in a regulatory filing.

On the asset front, the bank’s non-performing assets (NPAs) rose to 4.11 per cent of the gross advances as of September 2021, as against 3.04 per cent a year ago.

In absolute terms, gross NPAs stood at Rs 586.83 crore, higher than Rs 387.42 crore.

Net NPAs or bad loans stood at 2.63 per cent (Rs 370 crore) as against 1.30 per cent (Rs 163.52 crore).

Stock of CSB Bank traded 1.41 per cent up at Rs 310.10 apiece on BSE. PTI KPM RUJ RUJ

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Need to improve quality, depth of audit: RBI Governor Shaktikanta Das

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Undesirable practices and structures, including incorrect assumptions in determining provisioning requirement for financial assets, diversion of funds and/or transfer of profits to connected parties, and real transactions getting camouflaged beneath various layers of IT solutions, should draw the attention of the auditors, according to Reserve Bank of India Governor Shaktikanta Das.

“One of the important roles of audit is to check the so called smart accounting practices, if any, followed by management to overstate profits or understate expenses / liabilities,” Das said in his address at the National Academy of Audit and Accounts (NAAA), Shimla.

Referring to Ind-AS (Indian Accounting Standards), which has been implemented for all listed companies (other than banks) in India, including NBFCs having net worth of more than ₹250 crore, the Governor observed that within Ind-AS, Ind-AS 109 with Expected Credit Loss (ECL) approach allows the management to exercise discretion and judgment in determining the provisioning requirement for their financial assets.

Das said: “Such flexibility and forward-looking nature of assessment, however, poses the ‘model risk’,that is, the model may rely on incorrect assumptions and may be far from representing the real-life scenarios. “This has been observed in several cases. Hence, auditors are expected to test the models used by the entities, challenge the management and validate the model outputs.”

Diversion of funds

The Governor said of late, several instances of related party transactions, without following ‘arms-length’ principle and established transfer pricing mechanism, have been observed.

“There have been instances of diversion of funds and/or transfer of profits to connected parties through various means – intra-group loans on favourable terms, over or under invoicing of transactions, asset transfers without fair valuation, etc,” he said.

Das emphasised that auditors need to identify and thoroughly scrutinise related or connected party transactions to ensure that there is no undue transfer of income or assets.

‘See-through’ IT layers

The Governor also flagged cases of manipulation and misstatement of the true nature of financial statements by employing opaque technological means (IT black boxes).

“Real transactions are camouflaged beneath various layers of IT solutions by a few entities. As such, auditors need to be technologically savvy and be able to ‘see-through’ the layers of information technology to detect the real nature of hidden transactions,” he said.

Das said since RBI, as the supervisor of the financial system, relies and leverages on the work done by auditors, the audit professionals are being sensitised through various fora to improve the quality of their reporting

He highlighted that:“We are constantly engaged with individual auditors, audit firms and the Institute of Chartered Accountants of India (ICAI) to improve the quality and depth of audit. A lot of work has been done in this area, but lot more needs to be done.”

Good governance

The Governor said the management has the responsibility for demonstrating, through its actions, the importance of ethical conduct.

While this is relevant for all businesses, it is even more important for financial institutions which hold public trust and depositors’ money in fiduciary capacity.

Das felt that financial sector entities, the audit community and the financial sector regulators and supervisors have to work together and take proactive steps to ensure good governance and ethical practices to build a strong and resilient financial sector.

Tech adoption

The Governor stressed that the auditing profession cannot afford to lag in adoption of technology. “Adopting technology tools such as computer-assisted audit tools and techniques (CAATTs) through constant upgradation and integration of new technologies will bring in a lot of efficiency in audits.

“In parallel, it has to be kept in mind that adoption of such technology tools for auditing cannot replace professional judgment,” he said.

A holistic approach is required while integrating technology tools in audit. The Governor said:“The profile of tomorrow’s auditor will be that of a critical, yet constructive challenger, with a clear focus on public interest and quality audits. There is a need to be even more professional, qualified, impartial, value-driven, ethical and display awareness and foresight.”

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IPO: This Payment Bank To Raise Around Rs 1300 crore, Public Issue Opens On Oct 29

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oi-Sneha Kulkarni

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The capital markets regulator, the Securities and Exchange Board of India (SEBI), has approved Fino Payments Bank’s Rs 1,300-crore initial public offering (IPO). Fino Paytech Ltd, which owns 100 percent of the company, will issue a fresh issue of Rs 300 crore and sell up to 15.60 million shares in the IPO.

IPO: This Payment Bank To Raise Around Rs 1300 crore, Issue Opens On Oct 29

After Nykaa’s Rs 5,352-crore IPO, the Fino Payment initial public offering (IPO) will be the second to open for subscription this week. On November 12th, the company intends to list on stock exchanges.

The offer will be closed on November 2 by the company, which employs an asset-light business model that primarily relies on fee and commission-based income produced by its merchant network and key commercial connections.

Fino Payments Bank intends to use the proceeds from its new offering to boost its Tier-I capital base in order to meet future capital needs.

Fino Payment Bank is supported by major investors such as Blackstone, ICICI Group, Bharat Petroleum, and the International Finance Corporation (IFC).

The issue’s book running lead managers are Axis Capital, CLSA Capital, ICICI Securities, and Nomura Financial Advisory and Securities.

The fresh issue’s net proceeds will be utilized to supplement the company’s tier I capital base in order to meet future capital requirements. It is tier 1 capital ratio was 56.25 percent in FY 21.

There are roughly 17,269 active BCs in India right now. As of March 2021, it also had 54 branches and 143 customer service points.

The lender earned Rs 791.03 crore in the fiscal year 2021, up from Rs 691.40 crore the previous year. The net income for the period was Rs 20.47 crore, compared to a loss of Rs 32.04 crore the previous year.

IPO Open Date Oct 29, 2021
IPO Close Date Nov 2, 2021
Basis of Allotment Date Nov 9, 2021
Initiation of Refunds Nov 10, 2021
Credit of Shares to Demat Account Nov 11, 2021
IPO Listing Date Nov 12, 2021

Story first published: Monday, October 25, 2021, 14:30 [IST]



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Punjab a preferred investment destination for companies, says industry minister, BFSI News, ET BFSI

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Chandigarh, Punjab has become a preferred investment destination for the global firms in the last few years because of strong ecosystem and business friendly policies, state industries minister Gurkirat Singh Kotli said on Sunday. In the last four-and-a-half years, investors from across the globe as well as those from different regions in the country have shown their confidence in Punjab, which has resulted in securing investments worth Rs 99,000 crore in various sectors, he further said.

The sectors include bicycle, agri and food processing, logistics, pharmaceuticals, chemicals, textiles, alloy and steel and engineering.

“The investments are coming into the state from companies from diverse countries including the US, the UK, the UAE, Denmark, Germany, France, Spain, Italy, Japan, South Korea, New Zealand and Singapore,” said Kotli.

He said Punjab has not only witnessed global firms investing in the state for the first time but also the existing players have expressed their satisfaction and enthusiasm by expanding their presence and operations in the state.

“The investors’ confidence in the growth story of Punjab, even in the times of the COVID-19 crisis, is a testimony to the state’s strong infrastructural and policy framework,” said the minister in an official statement.

Pertinently, the state government has made consistent efforts in the last four and a half years to develop an ecosystem where both the domestic and global businesses can thrive competitively.

Ahead of a two-day Progressive Punjab Investors Summit-2021 on October 26 and 27, Punjab Chief Minister Charanjit Singh Channi on Saturday met a delegation of German companies operating in the state.

The chief minister said the state actively promotes business, trade and infrastructure development in partnership with the industry.

Channi said the investments of over Rs 99,000 crore reflects the enormous confidence and trust in the conducive and sustainable ecosystem in the state to boost industrial activity and create humongous entrepreneurial opportunities and jobs for the state’s youth.

He impressed upon the industry from the length and breadth of the world to choose Punjab as a progressive partner being the most preferred destination to realise their dreams.

Channi further said that these consultations with industry would go a long way in improving the delivery of governance thus ensuring ease of doing business in the state. PTI CHS VSD MR MR



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Fintech platform Groww raises $251 m in Series-E funding

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Fintech platform Groww has raised $251 million at a valuation of $3 billion, led by ICONIQ Growth. The current round also saw participation from investors like Alkeon, Lone Pine Capital and Steadfast.

Groww’s existing investors Sequoia Capital, Ribbit Capital, YC Continuity, Tiger Global and Propel Venture Partners also participated in the round.

Extending reach

Started in 2016, Groww enables Indian retail investors to invest in direct mutual funds, stocks, ETFs and IPO. Groww plans to extend its reach to the under-penetrated geographies, strengthen the team and scale tech infrastructure. The company also plans to continue making significant investments in spreading financial education and awareness.

Lalit Keshre, CEO and Co-Founder of Groww, said, “Over the last five years, we have built a product that customers love and have lowered the barriers to investing across India. We are making a difference in the lives of millions of Indians by democratising access. And it seems the journey has just begun with such a huge opportunity ahead of us.”

Financial services market

“Groww has been helping transform the way India invests by building a platform that exemplifies simplicity, trust, and constant innovation. The financial services market in India is already large, growing rapidly, and ripe for disruption. During the last couple of years, Groww has demonstrated that they are ready to seize that opportunity through strong accelerating momentum predicated on strength of technology,” said Yoonkee Sull, partner at ICONIQ Growth.

Groww was founded by Lalit Keshre, Harsh Jain, Neeraj Singh and Ishan Bansal. Groww enables retail investors to access financial products and services through its web and mobile app on both iOS and Android. Groww is backed by marquee investors, including Sequoia Capital India, Y Combinator, Ribbit Capital, Tiger Global and Iconiq Growth.

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With Stock Markets At Record Highs, Here’s What Investors Should Now Do!

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Here’s what investors should now do with markets at record jighs

Alpha Strategist by Motilal Oswal Private Wealth has suggested that the strategy for Equity is to invest 50% in lump sum and 50% in a staggered manner over the next 3 months in Multicap strategies and select Mid & Small Cap strategies (MFs, PMS, AIF).

According to the report, 70% – 80% of the Fixed Income portfolio should be biased towards high quality short to medium term accrual strategies with minimum investment horizon of 3 years.

“Within the above allocation, 20-30% can be allocated towards long maturity and high quality roll-down strategies,” the report has said.

Outlook for equity markets

Outlook for equity markets

According to Motilal Oswal Private Wealth Equity markets continued the strong uptrend on both absolute and relative basis to global peers in September.

“In CYTD’21 Nifty is the best performer globally with 26% return in INR terms. In the month of September broader markets made a comeback too with Nifty Mid cap/Nifty Small Cap closing 6.9%/6.1% higher outperforming Nifty which closed 2.8% higher.

Global equities ended mostly lower on the back of rising bond yields amid rising prices, and China’s power and realty sector crisis. MSCI World Indices/EM closed -4.5% and -5.6% lower respectively,” it has noted.

Markets look expensive

Markets look expensive

Equity Market looks expensive on a trailing basis compare to historical average, however, on forward basis it seems to be near slightly above its historical average. Nifty’s 12-month trailing P/E of 27.7x and P/B of 3.7 is at a 35% and 28% premium to its LPA of 20.4x & 2.8x respectively. While Nifty’s 12-month forward P/E is 15% above LPA.

Motilal Oswal Private Wealth Equity markets has crafted a unique model, Temperature Gauge, based on the Motilal Oswal Valuation Index. MOVI is basically an index which is calculated based on the Price to Earnings (PE), Price to Book Value (PB) and Dividend Yield (DY) on the components of Nifty 50.

Using FY22 projected EPS for Nifty 50, the temperature gauge index is in the range of 120-125. Whenever Temperature Gauge Index has been at the levels of 120-125, the forward returns shows a higher probability of positive returns.

Disclaimer

Disclaimer

The above stocks are picked from the brokerage report of Motilal Oswal Institutional Equities. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the article.



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RBI’s Sovereign Gold Bond (SGB) Scheme Opens On Oct 25, Should You Invest In The Commodity?

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Personal Finance

oi-Kuntala Sarkar

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BI’s Sovereign Gold Bond (SGB) scheme 2021-22 – series VII opens today on Monday, October 25, that will be in operation till October 29. For the upcoming 5 days, investors will be able to invest in the RBI SGB scheme, and the date of issuance is November 2, 2021. The issue price of SGB VII has been fixed at Rs. 4,765 per gram. The nominal value of the bond will be based on the simple average closing price of gold, published by the India Bullion and Jewellers Association Ltd (IBJA), for gold of 999 purity of the last 3 business days of the week preceding the subscription period. Sovereign Gold Bond (SGB) is a virtual form of investment in 24 carat gold.

Sovereign Gold Bond (SGB) Scheme Opens On Oct 25, Should You Invest In Gold?

Should You Invest In The RBI’s Sovereign Gold Bond (SGB) Scheme Now?

At the present Indian market, 24 gold rates are being quoted between Rs. 4760 and Rs. 4770, in October. One should remember that in the last month in September, 24 carat gold rates started with Rs. 4738, which ultimately dropped to Rs. 4549, at the end of the month, with a 3.99% fall in the Indian gold price. But September has been a very concerning month for gold rates, due to a recovering US economy. October has been in a better position. But certainly, when an investor would like to invest in gold, he/she would like to wait for a time when gold rates will be down.

Here comes the question of the US Tapering timeline. US Fed Chairman Jerome Powell is being hawkish about the tapering timeline and he might announce tapering in the first week of November, which is not very far. With tapering, US Government Bond Yield will hike and gold rates will eventually fall significantly.

So, if somebody wants to wait for Powell’s comments and he/she will have to wait till November. The prices are expected to fall. Now the gold rates in the international markets are staying around $1770-$1800/oz, which can drop in November. With the concerns of high inflation rates, the gold rates are heading north now.

RBI’s next Sovereign Gold Bond (SGB) scheme 2021-22, that is series VIII, will be in operation from November 29 to December 3, 2021. So, that is the end of the month. The gold market is a very volatile market, like other commodity markets. So, the fall in gold rates is only anticipated, not confirmed. The global economy and US economy will be the determining factors.

(Also Read: Why Investors Should Put Money In The Sovereign Gold Bond Scheme?)

Tranche Subscription Date Date of Issuance
2021-22 Series VII October 25-29, 2021 November 2, 2021
2021-22 Series VIII November 29-December 3, 2021 December 7, 2021
2021-22 Series IX January 10-14, 2022 January 18, 2022
2021-22 Series X February 28-March 4, 2022 March 8, 2022

However, Investing in the RBI’s Sovereign Gold Bond (SGB) Scheme is a far better and wiser mode of investing in gold than investing in physical gold, because the investor does not need to store the gold personally. Hence, no concern of theft will be attached to it.

What is RBI’s Sovereign Gold Bond (SGB) Scheme?

RBI’s Sovereign Gold Bond (SGB) is a government bond or security that is considered against virtual gold. If an investor buys an SGB, the investor will be given government security by the RBI, while the central bank will store the physical gold in its vault. Additionally, SGB offers, a fixed interest rate of 2.5%, payable half-yearly, which will be paid on the scheme’s maturity along with the principal amount. The investor will have to wait for 8 years for the maturity of the bond to redeem the cash or get the physical delivery of the gold. One can also trade SGB in the secondary market.

Sovereign Gold Bond (SGB) is a wise investment tool with a long-term outlook. The need of diversifying the investment portfolio, is one of the best commodity options, to keep a hedge against inflation and uncertainties.

What Is RBI Sovereign Gold Bond (SGB) Scheme? Benefits And Upcoming Tranches, 2021-2022)What Is RBI Sovereign Gold Bond (SGB) Scheme? Benefits And Upcoming Tranches, 2021-2022)

(Also read: How To Invest In The Sovereign Gold Bond Scheme Recently Issued By The RBI?)

Opinion

Chirag Mehta, Senior Fund Manager, Alternative Investments, Quantum AMC told media, “Gold’s bread and butter have been the ultra-accommodative monetary stance of global central banks and that is starting to normalize as economies open up and the pandemic fades. But over the next couple of quarters as global supply chains disrupted by the pandemic try to keep up with rising demand, rising inflation could be a drag on growth. Thus, gold’s utility as a portfolio risk diversifier and an asset that tends to keep up with inflation could come to the fore. Consumer demand is also coming back as the Indian economy continues to recover, supporting gold prices.”

Story first published: Monday, October 25, 2021, 13:16 [IST]



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