Government of India has announced the sale (re-issue) of Government Stock detailed below through auctions to be held on September 09, 2021.
As per the extant scheme of underwriting notified on November 14, 2007, the amounts of Minimum Underwriting Commitment (MUC) and the minimum bidding commitment under Additional Competitive Underwriting (ACU) for the underwriting auction, applicable to each Primary Dealer (PD), are as under:
(₹ crore)
Security
Notified Amount
Minimum Underwriting Commitment (MUC) amount per PD
Minimum bidding commitment per PD under ACU auction
5.63% GS 2026
11,000
262
262
GoI FRB 2034
3,000
72
72
New GS 2035
10,000
239
239
6.67% GS 2050
7,000
167
167
The underwriting auction will be conducted through multiple price-based method on, September 09, 2021 (Thursday). PDs may submit their bids for ACU auction electronically through Core Banking Solution (E- Kuber) System between 9.00 A.M. And 9.30 A.M. on the date of underwriting auction.
The underwriting commission will be credited to the current account of the respective PDs with RBI on the date of issue of securities.
CollegeDekho, a college admissions and education services platform, on Wednesday said it has raised $26.5 million (about ₹200 crore) in an ongoing funding round, led by Winter Capital Partners, ETS Strategic Capital and Calega. Existing investors, Man Capital and Rajeev Chaba also participated in the series B round, a statement said.
The company had last raised $8 million in May 2019.
ETS Strategic Capital is the private equity investment arm of ETS, creator of TOEFL and GRE tests.
Fund deployment
The company plans to use the proceeds of the funding to further improve its offerings for students and colleges, increase its investment in product and technology, expand internationally and “grow new verticals like Ed-Fin-Tech and Student Accommodation”, the statement said.
CollegeDekho operates a Common Application Form (CAF) platform that enables students to apply to multiple colleges with a single click.
For studying abroad, CollegeDekho offers a range of services across profile building, test preparation, application assistance, university selection and visa assistance.
“The tremendous response we are seeing from students, parents and colleges continues to energise us to build world class products and services for them. All of this would not have been possible without the passion and commitment of the CollegeDekho family,” Ruchir Arora, Founder and CEO of CollegeDekho, said.
He added that with this fund raise, the company plans to invest in making “its products and services even more lovable for our students and colleges, as well as expand into new geographies and business verticals”.
This series B funding round has been advised by IBIS Capital and Cilix Capital.
Former YES Bank managing director and chief executive officer Rana Kapoor ignored warnings fromt the treasury and risk management teams, which led to huge losses, the latest charge sheet by the Central Bureau of Investigation showed.
The charge sheet was made public last week, and was reviewed by The Hindustan Times. “Investigation revealed that Rana Kapoor had shown undue personal interest in aforesaid investment and took premeditated decision of investment without discussing the matter with concerned officials, who were having adverse view against such investments,” said the supplementary charge sheet filed by CBI on July 13.
The CBI and Enforcement Directorate (ED) are investigating the loans issued by YES Bank when Kapoor was its MD and CEO (till January 2019).
Furthermore, Kapoor had misled the board through a false declaration on May 17, 2018, to enhance the exposure limit of DHFL from Rs 2,100 crore to Rs 4,000 crore, the chargesheet said. As a result, the board approved investment of Rs 2,000 crores and Rs 700 crore in a public issue of non-convertible debentures of DHFL. This was despite the investment team advising against the issue.
According to the CBI, Kapoors were paid huge bribes by Dewan Housing Finance Corp (DHFL) in lieu of favours extended by the bank. It alleged that a total of Rs 600 crore was paid in the form of investment.
The ED has alleged that loans worth around Rs 30,000 crore, when Rana Kapoor headed the bank, have turned into bad loans and Rs 20,000 crore have become non-performing assets.
So far, the ED has attached assets worth Rs 2,400 crore in the case, which include Rs 900 crore from Kapoors and Rs 1,411 crore from DHFL’s Kapil and Dheeraj Wadhawan.
Harsha Bangari on Wednesday took charge as the Managing Director of Export-Import Bank of India (India Exim Bank).
The top position in the bank was vacant ever since David Rasquniha completed his three-year tenure as MD in May 2021.
Prior to her elevation as MD, Bangari was the Deputy Managing Director (DMD) of the bank, which is the national export credit agency. She joined Exim Bank in 1995.
Fixed Deposits (FDs) have always stood as a traditional financial instrument to invest money, be it a big amount or a small amount, to keep the money secure with an assured return. However, for the young population of India is not it is as lucrative as for the older demographics. The major reason behind this is sinking interest rates on FD, and the trend is likely to continue in the next few years. Coupled with this problem, there is also a challenge of a high inflation rate at 5.59%, which only worsened due to the pandemic. As the INR is losing its value, concerned citizens are not quite okay to put keep their money static for a long time, some investors with better risk appetites are also diversifying portfolios with investment in commodities. People, fall into the higher tax slab, some of them are also not comfortable with this taxable income.
Interest rates now
Major nationalized banks and private banks are having all-time low FD interest rates now, for example in SBI it’s 3.50% – 5.70%, in HDFC it’s 3.50% – 6.25%, in Axis bank it’s 3.50% – 6.50%. Here is a list of FD interest rates of top Indian banks. However, FD interest rates for senior citizens are marginally higher than other age groups.
Bank
Tenure
FD Interest Rates (PA for
SBI
7 days – 10 years
3.50% – 5.70%
HDFC Bank
7 days – 10 years
3.50% – 6.25%
Axis Bank
7 days – 10 years
3.50% – 6.50%
Bank of Baroda
7 days – 10 years
4.25% – 6.15%
ICICI Bank
7 days – 10 years
3.50% – 6.00%
Punjab National Bank
7 days – 10 years
4.25% – 5.80%
IDBI Bank
15 days – 20 years
3.10% – 5.90%
Canara Bank
7 days – 10 years
4.25% – 5.85%
RBL Bank
7 days – 10 years
5.00% – 7.25%
Yes Bank
7 days – 10 years
5.00% – 7.25%
Source: WishFin, September, 2021
It is important to remember that, in 2015, Indian nationalized banks used to give 8% to 9% per annum (PA), private banks 8% to 9.25% PA, and foreign banks 6.75% to 8.6% PA interest rates for FD, making public banks an obvious preference for FDs. However, these rates too were reduced at that time. Now, within 5-6 years the situation has changed largely and people are moving out from this traditional instrument.
Union government of India was already trying to keep the interest rates low for the last few years, and when the pandemic hit, RBI decided to push more liquidity in the economy. Eventually, the banks’ FD interest rates did not show any intention to get better. In October 2019 RBI’s repo rate was 5.15%, in March 2020 at the initial period of the Covid-19 pandemic it was 4.40%, and from May 2020 to date, it is at 4.00% making it an all-time low. Hence the FD interest rates too are very poor while the interest rates for loans are better affordable now.
Where else can you invest?
When someone is stepping out from the FDs, a better risk appetite should be grown. There are multiple mutual funds options with the Systematic Investment Plan (SIP) facility with good returns that will make you a disciplined and systematic investor. But with a lesser risk appetite and desire to get an assured return, there are other government financial instruments. RBI’s Sovereign Gold Bond has become quite a popular investment opportunity now that offers you a hedge against inflation, diversifies your portfolio, and assured income from the government of India, from any registered bank.
However, if you are a senior citizen, you can choose the senior citizens saving scheme (SCSS) by the RBI that will fix your money (up to Rs. 15 lakh) for five years, but will offer you quarterly interest at 7.4% PA. If you are not a senior citizen but have an amount that needs to be secured, you can also invest it under the name of your parent, who must be a senior citizen. On the other hand, you can also invest (up to Rs. 15 lakh) in the Pradhan Mantri Vay Vandana Yojana (PMVVY), administered by the Life Insurance Corporation of India (LIC), at a 7.4% interest rate PA. Another monthly income option is the Post Office Monthly Income Scheme (POMIS) that offers a 6.6% interest rate PA but the highest investment in the scheme is allowed only Rs. 4.5 lakh.
With the concern of an all-time low FD interest rate, these are some of the popular assured investment options. Even if the government increases the interest rates, the level is not anticipated to reach as high as 5 years back. Also, you cannot keep your money safe from inflation. So, before choosing an FD option, you must be concerned about the purpose of your investment, your risk appetite, taxation, and for what tenure you want to keep your money. The above investment options, rather than FDs, will be wise to explore.
For investment related articles, business news and mutual fund advise
The Reserve Bank of India (RBI) has granted its approval for the re-appointment of V. Vaidyanathan as the Managing Director & Chief Executive Officer of IDFC FIRST Bank.
The Bank, in a regulatory filing, said Vaidyanathan’s re-appointment as MD & CEO is for three years, effective from December 19, 2021.
Further, the aforesaid re-appointment is subject to shareholders’ approval at the ensuing Annual General Meeting of the Bank scheduled to be held on September 15, 2021.
Vaidyanathan took over as the MD & CEO of IDFC FIRST Bank in December 2018 after Capital First and IDFC Bank merger.
The National Payments Corporation of India (NPCI) and Nasdaq-listed Fiserv Inc. entered into an understanding that will enable the launch of plug-and-play RuPay credit card stack, ‘nFiNi’.
This BaaS (banking-as-a-service) programme provides a ready stack of services required for fintechs and banks to issue RuPay credit cards, NPCI said in a statement.
Fintechs will now be able to co-create new credit card programmes sponsored by banks on nFiNi. The programme will empower fintechs to swiftly and effectively launch new credit cards for retail as well as corporate customers, NPCI said.
“This will bring in significant efficiencies for banking and fintech institutions at various levels in terms of operations and customer management. The programme will further enable these institutions to expand their market base to new-to-credit customer,” the statement said.
NPCI is an umbrella organisation for operating retail payments and settlement systems in India. Fiserv Inc. is a global payments and financial technology company.
“Once on-boarded, the fintechs, which largely cater to the new-to-bank-and-credit customer, will be able to issue credit to this segment through the nFiNi platform,” NPCI said.
Powering RuPay cards
The nFiNi platform will power RuPay cards (including National Common Mobility Card) by offering access to needed services through the NPCI network combined with FirstVisionTM cloud-based open API integrations from Fiserv.
Nalin Bansal, Chief of Corporate Relationships & Fintechs, NPCI said, “We believe this will accelerate the penetration of RuPay cards in the country as well as lead to increased penetration of credit in the market in both urban and rural space.
“It is important to provide a robust tech stack of services to these institutions which will not only help them in seamless integration of products and services but also allow them to reach out to a greater number of customers more effectively.”
Rishi Chhabra, General Manager – India & Sri Lanka, Fiserv said the service-oriented architecture and open APIs of locally-hosted FirstVision facilitate rapid application development to enable new capabilities to be brought to market more quickly, while at the same time, facilitating regulatory compliance.
7 preferred largecap stocks to buy from the Eagle eye report
FY 2022 (E) EPS
FY 2023 (E) EPS
Current market price
Infosys
52.6
65.6
1693
HUL
38.4
47.5
2770
ICICI Bank
30.8
39
720.4
SBI
39
50.4
432
HCL Tech
49.3
58.9
1179
Ultratech
237.5
305.7
7970
Titan
17.8
29.9
2031
Nifty valuations remain at a premium
According to Motilal Oswal, India has outperformed the emerging market index and has posted highest gains in Aug’21. “The Nifty outperforms Midcap and Smallcap index for first time in CY21 and Defensives lead gainers on IT/Consumer outperformance,” the brokerage has said.
According to the India Strategy- The Eagle Eye Report by Motilal Oswal Financial Services, the Nifty crossed the 17,000 points mark in August of this year, putting India ahead of emerging market and global peers.
“From the lows in March of this year, global equities markets have increased by 75% in market capitalization to USD 119 trillion. While closely tracking the reduction in real yields, Bank Nifty has lagged Nifty. As top 100 firms gain from cost efficiency and pricing power to enhance EBITDA margins and profits, big corporations are getting bigger. The first quarter of FY22 earnings season has broadly met expectations, with cyclicals leading the way.
GDP- 1QFY22 Real/Nominal GDP increased by 20.1 percent /31.7 percent YoY, helped by a soft 1QFY21 base. Investment and private consumption were sharp contributors to economic growth. Macro Trends- Government gross receipts as % of BE at multi-year high while fiscal deficit is at multi-year lows. In the months of July and August, the south west monsoon was in short supply. COVID-19 active cases fell to 387k in August of this year, with vaccination rates increasing to 6.1 million per day in August vs. 4.3 million in July,” the brokerage has said.
Disclaimer
Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage houses are not liable for any losses caused as a result of decisions based on the article. The above article is for informational purposes only and has been taken from the report of Motilal Oswal Financial Services. Be careful while investing as the Sensex has now crossed 58,000 points.
Founded in 2019, Cross Tower is a digital assets capital markets firm that has gone ahead to offer digital assets trading to both professional as well as institutional clientele. The company on Tuesday (September 7, 2021) launched its crypto trading platform in India.
Though the platform will be a new facility, it is an acclaimed player commanding 4th rank among 152 global exchanges by CryptoCompare- a company that leads in the authority of the global crypto data. The ranking has been suggested after taking into account asset and market quality, security, KYC, regulations, data and the team.
Introductory offer: To expand its base and also as a token of courtesy the company shall be providing its first 1000 customers with an opportunity to earn up to 500 on their first trade.
How to begin trading on Cross Tower crypto trading platform?
The new user would need to first create and get his credentials verified on the platform by visiting the India link. After you are done with KYC verification, for which proof of identity and proof of address are required, you can get on to access the 40 cryptos available for trading over the CrossTower platform in Indian Rupees.
2. Vauld:
This is a trading, lending Singapore-based crypto exchange that also offers its services in India. The company aims to treat its customers’ cryptos as a separate asset class and offer services to ensure technologies based on blockchain are usable as of today. So, in all the crypto company aims to enable the core elements of banking for every crypto user, including store of value, capital growth, easy spending and as an exchange.
How to trade on Vauld?
Using VAULD app you need to first create your account, which will then need to be activated via the link sent on your registered email address.
Post this step, you would need to enter your credentials then again a one-time OTP will be received on your email and you can then begin your cryptocurrency investment journey in just 3 steps:
– Complete your KYC in just 2 minutes
– Deposit INR to Vauld
– Buy cryptos
Now the company has been increasing its crypto base available for trade and Dogecoin, SHIBA INU, Cardano are some of the latest additions to its 25 other newly listed tokens.
Disclaimer:
Cryptocurrency are a novel asset and millennials are resorting to them for making quick gains, while risks lies with the asset class, there is a risk at the hand of the crypto exchange, so you need to certain with its safety also.
