Bank of Baroda (BoB) has raised ₹1,997 crore via an issue of Additional Tier 1 bonds at a coupon rate of at 7.95 per cent. Bonds of ₹1 crore are unsecured, rated, listed, subordinated, non-convertible, fully paid-up Basel III compliant perpetual bonds.
Bids of ₹5,308 crore
The public sector bank informed exchanges that it has received total bids aggregating ₹5,308 crore against issue size of ₹2,000 crore. The issuance was finalised for ₹1,997 crore.
The Bank of Baroda has allotted the bonds to 21 investors.
With effect from 08.01.2021, the State Bank of India is promising the following interest rates on retail domestic term deposits of less than Rs. 2 crores.
Tenors
Rates for Public In % (p.a.)
Rates for Senior Citizens In % (p.a.)
7 days to 45 days
2.9
3.4
46 days to 179 days
3.9
4.4
180 days to 210 days
4.4
4.9
211 days to less than 1 year
4.4
4.9
1 year to less than 2 year
5
5.5
2 years to less than 3 years
5.1
5.6
3 years to less than 5 years
5.3
5.8
5 years and up to 10 years
5.4
6.2
Source: Bank Website
DCB Bank
DCB Bank has recently revised its interest rates on fixed deposits and the new rates are in force from 22nd November 2021. The bank is currently providing the following interest rates on Resident Indian Fixed Deposits of less than Rs 2 crore.
Tenure
Rates for Public In % (p.a.)
Rates for Senior Citizens In % (p.a.)
7 days to 14 days
4.35%
4.85%
15 days to 45 days
4.35%
4.85%
46 days to 90 days
4.35%
4.85%
91 days to less than 6 months
5.05%
5.55%
6 months to less than 12 months
5.25%
5.75%
12 months
5.55%
6.05%
More than 12 months to less than 15 months
5.30%
5.80%
15 months to less than 18 months
5.50%
6.00%
18 months to less than 700 days
5.50%
6.00%
700 days
5.95%
6.45%
More than 700 days to less than 36 months
5.50%
6.00%
36 months
5.95%
6.45%
More than 36 months to 60 months
5.95%
6.45%
More than 60 months to 120 months
5.95%
6.45%
Source: Bank Website
Axis Bank
In the month of November, Axis Bank has also revised its interest rates on fixed deposits. The new rates are in effect from 10th November 2021. The bank’s most recent interest rates on domestic fixed deposits applicable to both regular public and senior citizens are as follows:
Tenure
Rates for Public In % (p.a.)
Rates for Senior Citizens In % (p.a.)
7 days to 14 days
2.5
2.5
15 days to 29 days
2.5
2.5
30 days to 45 days
3
3
46 days to 60 days
3
3
61 days
3
3
3 months
3.5
3.5
4 months
3.5
3.5
5 months
3.5
3.5
6 months
4.4
4.65
7 months
4.4
4.65
8 months
4.4
4.65
9 months
4.4
4.65
10 months
4.4
4.65
11 months
4.4
4.65
11 months 25 days
4.4
4.65
1 year
5.1
5.75
1 year 5 days
5.15
5.8
1 year 11days
5.2
5.85
1 year 25 days
5.2
5.85
13 months
5.1
5.75
14 months
5.1
5.75
15 months
5.1
5.75
16 months
5.1
5.75
17 months
5.1
5.75
18 months
5.25
5.9
2 years
5.4
6.05
30 months
5.4
6.05
3 years
5.4
6.05
5 years to 10 years
5.75
6.5
Source: Bank Website
IDFC First Bank
This private sector bank has also recently revised its interest rates on fixed deposits and the new applicable rates are in force from 23rd November 2021. On Domestic, NRE & NRO Deposits less than Rs. 2 Cr, IDFC First Bank is now providing the below listed interest rates to both regular and senior citizens.
Period
Rates for Public
Rates for Senior Citizens
7 – 14 days
2.50%
3.00%
15 – 29 days
2.50%
3.00%
30 – 45 days
2.75%
3.25%
46 – 90 days
2.75%
3.25%
91 – 180 days
3.25%
3.75%
181 days – less than 1 year
4.75%
5.25%
1 year – 2 years
5.25%
5.75%
2 years 1 day – 3 years
5.75%
6.25%
3 years 1 day – 5 years
6.00%
6.50%
5 years Tax Saver Deposit
6.00%
6.50%
5 years 1 day – 10 years
6.00%
6.50%
Source: Bank Website
Yes Bank
On deposits of less than Rs. 2 Cr maturing in 7 days to 10 years, Yes Bank is now promising the following interest rates w.e.f. 3rd November 2021.
The Reserve Bank of India has accepted 21, some with partial modifications, out of the 33 recommendations of the Internal Working Group set up to review the extant guidelines on ownership and corporate structure for Indian private sector banks.
The key recommendations accepted include that the cap on promoters’ stake in long run of 15 years may be raised from the current levels of 15 per cent to 26 per cent of the paid-up voting equity share capital of the bank.
“This stipulation should be uniform for all types of promoters and would not mean that promoters, who have already diluted their holdings to below 26 per cent, will not be permitted to raise it to 26 per cent of the paid-up voting equity share capital of the bank,” the RBI said.
Listing in future
Small finance banks set up in future would be expected to list within eight years of commencement of operations, while universal banks would list within six years of operations.
Significantly, the criteria to assess the ‘fit and proper’ status of promoters or major shareholders as prescribed in the ‘Guidelines for on tap Licensing of Universal Banks in the Private Sector – 2016’ are appropriate and may be continued.
“Going forward, a harmonised approach may be adopted in various guidelines,” the RBI has said.
The RBI said, the consequential amendments in instructions, circulars, master directions, and licensing guidelines following the acceptance of the recommendations (with or without modifications) are being carried out and will be notified in due course.
However, during the interregnum, all stakeholders may be guided by these decisions, it further said.
Reserve Bank of India, Thiruvananthapuram invites e-tender for the captioned work from Bank’s empanelled vendors/contractors under the said category of the work costing between ₹ 10 lakh and ₹ 25 Lakh. The tendering would be done through the e-Tendering portal of MSTC Ltd (https://www.mstcecommerce.com/eprochome/rbi). All interested empanelled vendors /contractors must register themselves with MSTC Ltd through the above mentioned website to participate in the tendering process. The Schedule of e-Tender is as follows:
a. Name of Work
Replacement of Flooring of First floor Corridor, Main Office Building, Reserve Bank of India, Thiruvananthapuram
g. Date of Starting of e-Tender for submission of on line Techno-Commercial Bid and price Bid in MSTC Portal
3:00 PM on December 03, 2021
h. Date of closing of online e-Tender for submission of Techno-Commercial Bid & Price Bid in MSTC Portal
2:00 PM on December 10, 2021
i. Last date of submission of EMD
1:00 PM on December 10, 2021
j. Date & time of opening of tender
3:00 PM on December 10, 2021
k. Earnest Money Deposit
₹ 23,100/- (Rupees Twenty-three thousand and one hundred only) in the form of DD or BG, in favour of Reserve Bank of India, Thiruvananthapuram to be delivered in physical form at Estate Department., Reserve Bank of India, Bakery Junction, Thiruvananthapuram – 695033
OR
₹ 23,100/- (Rupees Twenty-three thousand and one hundred only) in the form of NEFT towards
Beneficiary Name: ESTATE Beneficiary Ac No: 8614038 IFSC Code: RBIS0THPA01
l. Transaction Fee
As charged by MSTC Ltd.
Amendments / Corrigendum to the tender, if any, issued in future will only be notified on the RBI Website and MSTC portal and will not be published in the newspaper.
Export-Import Bank of India (Exim Bank) has committed loans worth $100 million for domestic manufacturers of Covid-19 vaccines or related products.
“These loans are being extended to about half a dozen drug makers in the country during the present financial year,” N Ramesh, Deputy Managing Director, Exim Bank told newspersons here on Friday.
The loans for vaccines are also being extended to other countries. “Our vaccine portfolio in Africa is a significant one with a size of $250 million,” Ramesh said.
This will be an advantage for Indian firms as the financing mandates Africa to source vaccines and related products only from India.
Borrowings
The national export credit agency has already borrowed $2.25 billion through International bonds in 144A – Reg S format.
When asked on the possible size of borrowings for FY22, Ramesh said: “We will be calibrating our borrowings with international economic factors and domestic developments.”
The bank had earlier indicated borrowings to the tune of $3 billion in the current fiscal.
Exim Bank is targeting to achieve financing of $7 billion of project exports over next five years through funds received from Government of India, he said.
Earlier in September this year, the Centre had approved a corpus infusion of ₹1,650 crore National Export Insurance Account.
Credit growth
The bank expects a credit growth of 10 per cent this year, according to Ramesh. This will be driven by ‘good’ demand from EPC, textiles, pharma and petroleum sectors, among others, he added.
Its loan portfolio increased 4.43 per cent year-on-year to ₹1,03,851 crore as on March-end 2021.
Cryptocurrency prices continued to be stable on Indian exchanges 48-hours after major crash of 15-20 per cent across tokens; though with the exception of Sandbox token. It was the highest gainer yesterday but today it is trading below at 12.29 per cent of its peak price from yesterday.
At 10:57 am on WazirX, Bitcoin’s price had slightly gone up by 0.21 per cent, Shiba Inu’s price increased by 4.2 per cent, Tether was up by 2.45 per cent, Ethereum was up by 6.1 per cent and Basic Attention Token (BAT) jumped by 32.6 per cent.
Clearing some of the air around uncertainty and confusion on the draft Crypto bill, Finance Secretary TV Somanathan on Thursday in an interview with CNBC-TV18 said that people had just overreacted to the development of the crypto bill which will be tabled in the parliament’s winter session.
“However, one thing I can say very clearly is that crypto will not be legal tender by any means. Gold is not a legal tender, silver is not a legal tender and alcohol is also not a legal tender, beyond that I will not be in a position to say anything more,” he said.
Employees of cryptocurrency companies in India are a worried lot as the fate of the industry hangs in the balance.
Vinshu Gupta, Founder and Director, Nonceblox Blockchain Studio said “It is easy to use privacy coins to launder money or use a crypto mixer to hide drug or blood money but crypto also employs over 50,000 people in India and has immense potential to push India as a true 21st century super power.”
“The crypto industry needs regulation but it should be inclusive. A taxation process like TDS where profits are taxed at withdrawal sources in India like exchanges is a good strategy to start. The more it becomes an open-ended ecosystem, the more value it will bring to the Indian economy,” he added.
Cryptocurrencies have gained prominence ever since the RBI ban was lifted in March 2020. India now has 15 home-grown crypto currency exchange platforms, consisting of more than 10 crore investors. According to broker discovery and comparison platform BrokerChooser, the total number of crypto owners in India now stands at 10.07 crore, which puts it ahead of every other country in the world. US stands at second position with the number of crypto owners at 2.7 crore, followed by Russia (1.7 crore) and Nigeria (1.3 crore). In comparison, the number of stock investors registered with the BSE/NSE in India has risen to 7.4 crore at present while for mutual funds it stands at 11.4 crore. In terms of share of crypto investors as a percentage of the population, India stands at fifth position at 7.3 per cent trailing Ukraine (12.7 per cent), Russia (11.9 per cent), Kenya (8.5 per cent) and US (8.3 per cent).
Indian crypto investments cross $10 billion
According to crypto research and intelligence business CREBACO, Indian crypto investments have increased to over $10 billion from $0.9 billion in April 2020, as crypto markets touched all-time highs.
“Currently, the government is set to introduce ‘The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021’ in the winter session of Parliament beginning 29 November for consideration and passing. The bill aims to create a facilitative framework for the creation of the official digital currency to be issued by the RBI. It also seeks to prohibit all private cryptocurrencies in India, however, it allows for certain exceptions to promote the underlying technology of cryptocurrency and its uses. Currently, there is a lot of uncertainty but the government is making efforts to soon put out proper regulation with regards to crypto investment as it is quickly getting widespread across India,” said Hemang Jani, Head – Equity Strategy, Broking & Distribution, Motilal Oswal Financial Services.
Prevention is better than cure, you must have heard this many times. This goes the same here. Take a break from your credit cards or even freeze your card to reduce the temptation to take on extra debt. Prepare a budget to get an overview of all your expenses. A budget is surely a tool that could smartly tackle the debt. Knowing your expenses reduces your unwanted spending.
2. Increase your income
Increasing your income is the first and one of the smartest ways to reduce your debt temptation. The more revenue you put toward your debt, the sooner you’ll be able to eliminate it completely. Get yourself involved in putting some extra income which could help reduce your debt burden in the meantime.
3. Build an Emergency Fund
Building an emergency fund is another smart way of reducing the debt temptation. It sounds counter-intuitive but it is effective in reducing any potential debt. It allows your use in reducing the debt instead of touching your saving account. These savings offer you a safety net that you can utilize for unexpected needs, it also prevents you from going for your credit card.
4. Inquire with your Creditor for a lower interest rate
A higher interest rate does nothing but increases your debt hole because the interest amount goes towards the monthly interest charge making your actual balance higher. It is always to inquire your creditor (credit card issuers) for a lower interest rate. Interest rates are negotiable and asking for a lower interest rate could help you to reduce your debt. If you have a good payment history it is more likely to could get a power interest rate on your credit card.
5. Withdraw from your Retirement fund
Withdrawing from your retirement fund is another smart way to reduce your debt, but it should be your last option in the extreme case. It is highly recommended only in cases when you have no other option or you have other sources of income besides your monthly income. It is important to understand that Retirement fund withdraw could impact your saving post-retirement along with your interest, capital, and dividends, you could have earned from that money.
6. Debt Settlement
If you owe more than what you can repay in the set time period or your accounts are past the due date, debt settlement may be a good option to consider. In debt settlement, you ask your creditor to consider a one-time or lump-sum payment that is less than the whole total in order to settle down the bill completely. Creditors usually accept settlement proposals only on accounts that are in default or are about to default.
Debt settlement can have a negative impact on your credit score and should be utilized only as a last resort. Debt settlement could be also done by negotiating directly with the creditor. It’s a good option to negotiate directly or take the help of a reputable debt relief company.
7. Credit Counselling Agencies
It’s always good to take advice and suggestions when you lack ideas. Credit Counselling is one of the smartest ways to bring your debt in control. There are a number of credit counseling agencies that could help you in managing your finance and settling down your budget issues. These agencies are organizations or companies with a deep understanding of finance and credit issues.
All you need to do is send a lump-sum payment amount to the agency every month, and they will break it up and deliver it to your creditors on your behalf. Credit counseling differs from debt settlement in that it does not need you to be in default, and the aim is to pay off your debts in full.
FILE PHOTO: An India Rupee note is seen in this illustration photo June 1, 2017. REUTERS/Thomas White/Illustration/File Photo
Lenders may soon be able to lay their hands on overseas assets of defaulting firms and personal guarantors.
The government has proposed adopting a global model law that will enable lenders to apply the Insolvency and Bankruptcy Code to defaulters’ assets lying overseas. These will include the offshore personal assets of the promoter if they have issued a personal guarantee. The changes would also allow the execution of orders against defaulters by overseas courts that have adopted the model law.
The government has invited public comments on the proposed modifications by December 15.
The model law lays down the basic framework for cooperation between domestic and foreign courts and domestic and foreign insolvency professionals.
Personal guarantors
In the case of a personal guarantor, their ‘habitual’ place of residence will be taken into account to decide the jurisdiction where the main bankruptcy proceedings will happen. Debt recovery tribunals and the National Company Law Tribunal (NCLT) benches and their appellate tribunals are platforms where overseas creditors could initiate or participate in proceedings against personal guarantors in India.
The introduction of a cross-border insolvency law in the IBC, that is in line with international best practices and suitable for the Indian context, may be beneficial to all stakeholders. Draft part Z, as recommended by the insolvency law committee, is under consideration for enactment,” the ministry said, while proposing the additional measures regarding personal guarantors.
The changes were proposed after the ILC, constituted under the corporate affairs ministry to review the implementation of the IBC, noted the lack of a framework for cross-border insolvency. The government has decided to put in place a comprehensive framework for this purpose based on UNCITRAL model law on cross-border insolvency, which could be made a part of the IBC by inserting a separate chapter for this purpose.
In January 2020, the government had constituted a crossborder insolvency rules/regulations committee to recommend subordinate legislation.
Banks have approached the National Company Law Tribunal for invoking personal guarantees of promoters of 17 defaulting companies.
The defaulting promoters include those of Punj Lloyd, Amtek Auto, ABG Shipyard, Videocon, Varun Shipping, and Lanco, according to reports.
Armed with a Supreme Court order, banks are looking to invoke personal guarantees of tycoons from Venugopal Dhoot to Kapil Wadhawan to recover unpaid loans from their delinquent firms
The guaranteed debt
According to an estimate, the top 10 personal guarantors have guaranteed debt of over Rs 1.6 lakh crore. Among the big names, former promoters of Bhushan Steel and Power Sanjay Singhal and his wife Aarti Singhal had furnished personal guarantees worth up to Rs 24,550 crore to take loans from a consortium of bank led by State Bank of India.
The former promoter of Reliance Communications, Anil Ambani, has also given a personal guarantee against the loan taken. Erstwhile promoter Wadhawan stands guarantee to loans taken by DHFL, which is sitting on debt of about Rs 90,000 crore, while Dhoot has also given a personal guarantee to a portion of Rs 22,000 crore loan to Videocon.
NEW DELHI: Shares of Indiabulls Housing climbed 4 per cent in Friday’s session after Societe Generale and BNP Paribas Arbitrage sold 51 lakh shares of the housing finance company for around Rs 113 crore through open market transactions on Thursday.
The scrip touched a high of Rs 236.50 as against the previous close of Rs 226.55 on the BSE.
According to data on bulk deals available from the National Stock Exchange, Societe Generale offloaded 27.40 lakh shares of Indiabulls Housing Finance while BNP Paribas Arbitrage sold 23.59 lakh shares of the domestic housing finance company.
The stocks were sold in the range of Rs 221.34-221.75 piece per share, the data showed. As of September 2021, Societe Generale held 58.77 lakh shares amounting to a 1.27 per cent stake in Indiabulls Housing, while BNP Paribas Arbitrage shareholding was 71.82 lakh shares or 1.56 per cent.
Reports said on Wednesday that the company was committed to de-promoterising, with the promoter –led by Sameer Gehlaut—likely to pare stake below 10 per cent from the present quantum of 21.69 per cent.
Indiabulls Housing may be considering secondary market transactions such as through qualified institutional placement or an offer-for-sale in its efforts to reduce promoter stake, reports said.
The National Stock Exchange had on Thursday barred Indiabulls from trading in the futures and options segment as the derivative contract of its securities had breached 95 per cent of the market-wide position limit.
