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Personal insolvency proceedings start against Venugopal Dhoot; more promoters in line for action, BFSI News, ET BFSI

Banking & Finance

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Videocon chairman Venugopal Dhoot is already under CBI investigation on charges of causing a wrongful loss to a consortium of Indian PSU banks led by SBI.

After ordering the freezing of assets of Videocon promoter Venugopal Dhoot and other officials, the National Company Law Tribunal (NCLT) has admitted a personal insolvency petition against Dhoot.

Earlier the Ministry of Corporate Affairs (MCA) received permission to freeze Dhoot’s assets.

Asish Narayan has been appointed as the resolution professional (RP) in the case by a division bench led by judicial member Suchitra Kanuparthi and a technical member Chandra Bhan Singh. The next date of hearing is 20 September.

Lenders to Videocon had filed the personal insolvency petition to attach Dhoot’s assets a year ago and its admission now means the recovery process will go on full steam. But it is unclear how the admission of personal insolvency proceedings will impact the NCLT’s order freezing Dhoot’s assets on the MCA plea.

State Bank of India (SBI) the lead lender in the consortium of bank creditors to has also taken Venugopal’s brothers and Videocon co-promoters Rajkumar Dhoot and Pradipkumar Dhoot under the personal bankruptcy law.

Rs 18,000 crore debt

Banks led by SBI are seeking to recover close to Rs 18,000 crore by initiating guarantees given by the Dhoot brothers at different points in time to access loans from banks. Claims from Venugopal Dhoot come to about Rs 6100 crore while two separate petitions have also been filed by SBI has to invoke Rs 6,158 crore of personal guarantee given by Pradipkumar Dhoot and Rs 5353 crore to be recovered from Rajkumar Dhoot which are yet to receive the NCLT go ahead.

These guarantees were given by them for a mix of term and working capital loans granted to the company over the years.

Cyril Amarchand Mangaldas is representing SBI in the case.

The way ahead

Now that NCLT has okayed the recovery process the RP will examine the application and submit his report stating the reasons for approval or rejection of the application within 10 days.

This process is different from the corporate insolvency process and the NCLT will determine going ahead with the personal insolvency based on the report of the RP.

In December over 94% of the creditors by value voted for Vendanta arm Twin Star Technologies as the preferred bidder to take over Videocon. Vedanta’s offer of a little over Rs 3,000 crore was a haircut of more than 95% on admitted claims of Rs 61,770 crore.

Other defaulting promoters

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 banks led by SBI.

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.



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Top Banks With Over 1 lakh APY Enrolments In Fiscal Year 2021-22

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Planning

oi-Sneha Kulkarni

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Any Indian citizen between the ages of 18 and 40 can join the APY through a bank or post office branch where they have a savings bank account.

From the age of 60, a subscriber would be eligible for a minimum guaranteed pension of Rs. 1,000 to Rs. 5,000 per month, based on his contribution. The same pension would be provided to the subscriber’s spouse, and if both the subscriber and the spouse died, the accrued pension wealth up to the age of 60 would be returned to the nominee.

Top Banks With Over 1 lakh APY Enrolments In Fiscal Year 2021-22

During the current fiscal year 2021-22, more than 28 lakh new APY accounts were opened under the Atal Pension Yojana (APY), a government-run guaranteed pension system operated by PFRDA. As of August 25, 2021, the total number of APY enrolments had surpassed 3.30 crore.

Top Banks With Over 1 lakh APY Enrolments In Fiscal Year 2021-22

Sr. No. Bank Name Number of APY acc from April 1, 2021- Aug 24, 2021
1 State Bank of India 7,99,428
2 Canara Bank 2,65,826
3 Airtel Payments Bank Limited 2,06,643
4 Bank Of Baroda 2,01,009
5 Union Bank of India 1,74,291
6 Bank Of India 1,30,362
7 Indian Bank 1,13,739
8 Central Bank of India 1,04,905
9 Punjab National Bank 1,01,459

The system is administered by 266 registered APY Service-Providers, which include a variety of banks and the Department of Posts. Because this scheme is only open to applicants who have a savings bank account, PFRDA recommends all banks to promote it to their current and prospective clients on a regular basis.

In order to broaden the reach of the APY Scheme and benefit existing and potential APY subscribers as well as APY seers, PFRDA has recently undertaken new initiatives such as the addition of new features to the APY mobile App and its availability on the Umang platform, the updating of APY FAQs, the issuance of the APY Subscriber Information Brochure and the APY Citizen Charter in 13 regional languages.

During the current fiscal year, about 8 lakh new subscribers have joined the Atal Pension Yojana (APY) through the State Bank of India (SBI). By August 25, the number of APY subscribers has surpassed 3.30 crore, according to data issued by the Pension Fund Regulatory and Development Authority (PFRDA).

Top states having more than 10 lakh enrolments under the APY as on 25th August 2021 are:

Sr. No State Name Number of APY enrolments
1 Uttar Pradesh 49,65,922
2 Bihar 31,31,675
3 West Bengal 26,18,656
4 Maharashtra 25,51,028
5 Tamil Nadu 24,55,438
6 Andhra Pradesh 19,80,374
7 Karnataka 19,74,610
8 Madhya Pradesh 19,19,795
9 Rajasthan 16,16,050
10 Gujarat 13,50,864
11 Orissa 12,45,837

According to PFRDA data, public sector banks have the most APY users, with over 2.33 crore. Regional rural banks (61.32 lakh), private banks (20.64 lakh), small finance banks and payment banks (10.78 lakh), the Department of Posts (3.40 lakh), and cooperative banks came in second and third, respectively (84,627).



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RBI imposes ₹25 lakh penalty on Axis Bank

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The Reserve Bank of India on Wednesday imposed a monetary penalty of ₹25 lakh on private sector lender Axis Bank.

The penalty has been imposed for contravention of non-compliance with certain provisions of directions issued by RBI contained in the Reserve Bank of India – (Know Your Customer (KYC)) Direction, 2016, the RBI said.

RBI conducted scrutiny during February 2020 and March 2020 in a customer account maintained with Axis Bank. It was observed that the bank had failed to comply with the KYC directions and had failed to monitor/carry out on-going due diligence in the account to ensure that the transactions were consistent with its knowledge about the customer, customer’s business and risk profile.

“In furtherance to the same, a notice was issued to the bank advising it to show cause why penalty should not be imposed on it for contravention of the said directions,” the RBI said.

After considering Axis Bank’s reply to the notice and oral submissions made during the personal hearing, RBI concluded that the charge of contravention of / non-compliance with the directions were substantiated and warranted imposition of monetary penalty, it further said.

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Shanti Lal Jain takes charge as MD & CEO of Indian Bank

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Shanti Lal Jain has assumed charge as Managing Director and Chief Executive Officer of Chennai-headquartered Indian Bank from today.

Prior to this, he served as Executive Director of Bank of Baroda since September 2018, according to a statement.

A Post-graduate in Commerce, and a qualified Chartered Accountant, Company Secretary and CAIIB, Jain joined Allahabad Bank in 1993 in middle management cadre. In a career spanning more than 25 years in banking, he handled critical portfolios. Previously, he had worked in a range of industries for over six years.

He has served as Chief Financial Officer, Chief Risk Officer and headed IT department of Allahabad Bank.

Later, he led team Mumbai as Field General Manager (West) and was responsible for Maharashtra, Gujarat and Goa operations having business of about ₹50,000 crore.

Earlier to this, he has served in several branches and administrative offices of the Bank, pan India. Prior to joining Allahabad Bank, he worked in various industries for about 6 years.

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Axis Bank joins green finance rush with first ESG bonds in India, BFSI News, ET BFSI

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Axis Bank has raised $600 million from offshore investors by selling sustainable additional tier-1 (AT1) bonds at a coupon of 4.1 per cent said.

The bank will be using the proceeds towards eligible green and social project categories, as per the term sheet. The bonds will be listed on bourses, including NSE IFSC and India INX IFSC.

The lender launched the issue of the perpetual bonds earlier in the day with the initial pricing guidance at 4.4 per cent, looking to raise up to USD 1 billion.

Axis Bank raised USD 600 million from its GIFT City branch. The issue saw the order book peaking at USD 2.3 billion, as per the sources.

The major investors in the issue included Bluebay, Blackrock, Fidelity and HSBC Asset Management Company, they said.

This was only the third environment, social and governanc-themed bond issue by any lender globally and the first one in India.

The Axis Bank bonds were rated Baa3 (negative) by Moody’s Investors Service, BB+ (stable) by Standard & Poor’s and BB+ (negative) by Fitch Ratings.

HSBC deposits

Last month UK-based Hong Kong and Shanghai Banking Corp (HSBC) has raised $400 million of green deposits in India and identified financing opportunities to use those funds. Under its strategy, the bank first finds avenues to finance before raising the resources. The loans are extended for renewable projects, biodiversity linked initiatives, clean transportation and pollution control. Once the loans are sanctioned they are matched with deposits.

HDFC issue

HDFC, India’s largest private-sector mortgage financier, too announced last month the launch of a new green deposit plan to attract environmentally conscious depositors.

The company plans to raise these deposits from individuals to lend to projects by retail borrowers.

It plans to use these funds to lend to standalone homes which use environment-friendly practices, like putting up solar panels and water recycling, or even to women borrowers or self-help groups.

AT1 bonds

The bank is the third lender in quick succession to raise money from the AT1 route after HDFC Bank raised USD 1 billion from overseas investors last month, and SBI raised Rs 4,000 crore earlier in the day from domestic investors.
The AT1 capital instrument had received a setback after Yes Bank’s investors lost over Rs 8,400 crore of bets after a write-off in the RBI-led bailout.



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Reserve Bank of India – Press Releases

Press Releases

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Government of India has announced the sale (re-issue) of Government Stock detailed below through auctions to be held on September 03, 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
4.26% GS 2023 3,000 72 72
6.10% GS 2031 14,000 334 334
6.76% GS 2061 9,000 215 215

The underwriting auction will be conducted through multiple price-based method on September 03, 2021 (Friday). PDs may submit their bids for ACU auction electronically through Core Banking Solution (E- Kuber) System between 09:00 A.M. and 09:30 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.

Ajit Prasad
Director   

Press Release: 2021-2022/798

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3 Listed REITs Stocks In India 2021

Personal Finance

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Brookfield India Real Estate Trust REIT

Brookfield India Real Estate Trust REIT is a commercial real estate vehicle established in India. The Company’s goal is to offer its unitholders with risk-adjusted total returns. During the quarter ended June 30, 2021, Brookfield India Real Estate Trust recorded a 3.8 percent increase in net operating income to 169.6 crores. It also announced a 181.7 crore payout to unitholders.

Operating lease rental collections remained strong at nearly 99 percent. Operating lease rental income increased by 7.3 percent to 161.6 crores in the April-June quarter, up from 150.7 crores in the previous year’s quarter.

During the first quarter of this fiscal year, total revenue was 222.67 crore, with a profit of 73.83 crores, according to the company.

Embassy REIT

Embassy REIT

Embassy REIT owns and runs a 42.4 million square foot (“msf”) portfolio of eight infrastructure-like office parks and four city-center office buildings.

Embassy REIT, sponsored by Embassy and Blackstone, is Asia’s first and largest REIT (by area). The corporation owns and operates 42.4 million square feet of space (million square feet). It has eight office parks, two hotels, and a 100 megawatt solar power facility. Embassy Office Parks REIT reported a 12 percent increase in net operating income to Rs 2032 crore for the fiscal year ended March 2021, compared to the preceding financial year.

India’s first listed Real Estate Investment Trust (REIT) and Asia’s largest also recorded a 10% growth in revenues for FY2021 to Rs 2,360 crore, up from Rs 2144 crore in FY19-20, according to the company.

Mindspace REIT

Mindspace REIT

K Raheja Corp Group is the sponsor of Mindspace REIT. With a total leasable area of 30.2 msf, it has a solid portfolio of office spaces across Mumbai, Pune, Hyderabad, and Chennai. Mindspace Business Parks REIT, which is sponsored by K Raheja Corp and Blackstone Group, has announced a net operating income of over Rs 358 crore, with a portfolio size of 30.2 million sq ft, up from 29.5 million sq ft.

It has raised Rs 375 crore in market-linked debentures at a rate of 6.65 percent per annum, as well as Rs 75 crore in non-convertible debentures at a rate of 6.69 percent per annum. As of March 31, the REIT’s average cost of debt was 7.1 percent.

3 Listed REITs Stocks In India 2021

3 Listed REITs Stocks In India 2021

REITs Stocks BSE NSE
Brookfield India Real Estate Trust REIT 267.51 267.34
Embassy REIT 361.95 361.25
MINDSPACE BUSINESS REIT 290.44 290.00

How do REITs generate returns for investors?

How do REITs generate returns for investors?

Any investment should aim to build wealth for investors and/or provide a steady stream of income. REITs provide unitholders with both of these advantages. Investors can get monthly dividends and/or interest payouts, providing consistent income, while also receiving capital gains through the sale of REIT units on stock exchanges.

REITs use their Net Rental Income to pay out dividends and interest. After deducting some important expenses connected to management and maintenance of the facilities, this is the income that a REIT obtains from renting out and leasing Commercial Real Estate.

Because REITs are listed on stock exchanges and traded, the price of individual units fluctuates based on their performance and market demand. A REIT’s outstanding performance, like that of Equity Stocks and Mutual Funds, leads to an increase in the price of REIT units, which can then be sold for a profit and deliver Capital Gains to the investor.

Disclaimer

Disclaimer

Investing in stocks is risky and investors should do their own research. The author, the brokerage firms or Greynium Information Technologies are not responsible for any losses incurred due to a decision based on the above article. Investors should hence exercise due caution as are at record peaks. Please consult a professional advisor.



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3 Stocks For Gains Up To 23% In The Short Term By HDFC Securities

Personal Finance

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Indiamart Intermesh:

The B2B company as per HDFC Securities is in intermediate uptrend as it has been making higher tops and higher bottoms for the last several months. Over the last several weeks, the stock has been consolidating in a range between the 6650-7844 levels. On Monday, the stock has broken out of this range on the back of above average volumes.

Technical indicators positive

Technical indicators are giving positive signals as the stock is trading above the 20 and 50 day SMA. Weekly momentum indicators like the 14-week RSI have bounced back from oversold levels and are in rising mode now. This augurs well for the uptrend to continue. With the intermediate technical setup too looking positive, we believe the stock has the potential to move higher in the coming weeks and therefore recommend a buy. The stock has suggested a target price of Rs. 9715, against its current price of Rs. 7870, implying an upside of 23 percent.

Rain Industries:

Rain Industries:

The brokerage is bullish on the world’s leading producer of calcined petroleum coke, coal tar pitch as well as other high quality advanced materials. HDFC Securities has set out a target price of Rs. 270, implying gains of 20.53% from the current price of Rs. 224. The investment horizon or time horizon is a short term of 3 months.

As per the brokerage firm, “the stock has also breached above downward sloping trend line We observe a formation of bullish pattern on daily and weekly time frame. Momentum oscillators like RSI and MACD are giving bullish indication suggesting bullish movement for the stock for few more weeks. The overall chart pattern of RAIN indicates long trading opportunity.” “One may look to create positional long as per the levels mentioned above”, adds the brokerage report. HDFC Securities for the ‘Buy’ of Rain Industries recommends at stop loss of Rs. 193.

Shriram Transport:

Shriram Transport:

The company has suggested a target price of Rs. 1580, implying gains of 18% from the current price level of Rs.1340 per share.

Technical indicators paint a positive outlook for the scrip.

The stock after being in a range between the 1216-1320 levels for the last few sessions, the stock has broken out of this range on Monday on the back of healthy volumes. “Technical indicators are giving positive signals as the stock is trading above the 20 day SMA. Daily momentum indicators like the 14-day RSI have bounced back from oversold levels and are in rising mode now. This augurs well for the uptrend to continue. With the intermediate technical setup too looking positive, we believe the stock has the potential to move higher in the coming weeks and therefore recommend a buy”, says the brokerage report.

Disclaimer:

Disclaimer:

Stock markets investments are subject to risk. Investors should not construe the above report for investment advice. Please do your own study and analysis before making equity or equity related bets.



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Axis Bank completes pricing of overseas AT-1 bonds

Banking & Finance

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Axis Bank has completed the pricing of its overseas AT-1 bonds to raise $600 million.

“We are pleased to inform that the Bank, acting through its GIFT City branch, has completed the pricing of its US dollar denominated Basel III Additional Tier 1 Notes,” it said in a stock exchange filing.

The coupon rate for the bonds have been set at 4.10 per cent per annum.

Also read: RBI imposes ₹25 lakh penalty on Axis Bank

“The proceeds of the Notes will be used towards financing or refinancing, in whole or in part, new or existing Eligible Green Project Categories and Eligible Social Project Categories under the Issuer’s Sustainable Financing Framework,” it further said.

The private sector lender had on August 30 said it has initiated the process of issuing of the debt instruments, in the form of the AT-1 1 Notes in foreign currency, subject to market conditions.

“This will be a sustainable bond under the Sustainable Financing Framework of the bank. The issuance is part of the existing Global Medium Term Notes programme of the bank,” it had said at the time.

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Google Pay Join Hands With Equitas SFB To Offer Digital FD: Check Details

Personal Finance

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Investment

oi-Vipul Das

|

For the investors who want to open a fixed deposit account from the convenience of their home just with some simple taps, Equitas Small Finance Bank has taken a move to provide its customers with the option to open a fixed deposit account through Google Pay. The bank has partnered with Google Pay (G Pay) to enable Google Pay (only Android) users to book an FD account without having or opening a savings account. Once the FD matures, the principal including the interest amount would be transferred to the Google Pay user’s existing or linked bank account, which means that starting from opening an account till maturity proceeds, the entire process will be done digitally and the collaboration undoubtedly will have a positive impact on senior citizens.

The partnership is timed to coincide with the bank’s 5th anniversary, which will take place on September 5th, 2021. Equitas Small Finance Bank currently offers up to 6.50% interest on FD, but apart from the higher interest rate compared to that of the leading public and private sector bank, customers who book an FD account with the bank will also get an insurance cover benefit up to Rs 5 lakh provided by the Deposit Insurance and Credit Guarantee Corporation which is nothing but a subsidiary of Reserve Bank of India.

Equitas Small Finance Bank Fixed Deposit

Equitas Small Finance Bank Fixed Deposit

Equitas SFB allows you to open a fixed deposit account for a maturity period ranging from 7 days to 10 years. This flexible tenure will result in you covering your both short-term and long-term financial goals. By offering higher yields on fixed deposits and a digital account maintaining approach through Google Pay, the bank is now the industry-first to join hands with Google Pay. To meet the needs of your investment and wealth creation, you can pick a term according to your goal and enjoy guaranteed returns by investing with Equitas FD through Google Pay. According to the official website of the bank, the benefits of opening a fixed deposit account are:

  • Idle funds can be used
  • Best in class Interest Rates
  • Attractive FD interest rates up to 6.5% p.a. for senior citizens
  • Partial and full premature withdrawal allowed
  • No premature withdrawal penalty for all FDs booked for senior citizens on or after 2nd December 2019 (Not applicable for grouping)
  • No penalty on premature withdrawal above 6 months
  • Nomination facility available
  • Interest frequency available – reinvestment, quarterly payout, and monthly payout.

Equitas Small Finance Bank Fixed Deposit Interest Rates

Equitas Small Finance Bank Fixed Deposit Interest Rates

With effect from 1st June 2021, fixed deposit rates for domestic/NRE/NRO (for INR) deposits of less than Rs 2 Cr are as follows.

Tenure Regular FD Rates Interest Rates For Senior Citizens
7 – 14 days 3.50% 4.00%
15 – 29 days 3.50% 4.00%
30 – 45 days 3.50% 4.00%
46 – 62 days 4.00% 4.50%
63 – 90 days 4.00% 4.50%
91 – 120 days 4.75% 5.25%
121 – 180 days 4.75% 5.25%
181 – 210 days 5.25% 5.75%
211 – 270 days 5.25% 5.75%
271 – 364 days 5.25% 5.75%
1 year to 18 months 6.35% 6.85%
18 months 1 day to 2 years 6.25% 6.75%
2 years 1 day to 887 days 6.35% 6.85%
888 days 6.50% 7.00%
889 days to 3 years 6.35% 6.85%
3 years 1 day to 4 years 6.25% 6.75%
4 years 1 day to 5 years 6.25% 6.75%
5 years 1 day to 10 years 6.50% 7.00%
Source: Bank Website

How to open Equitas SFB Fixed Deposit Account On Google Pay?

How to open Equitas SFB Fixed Deposit Account On Google Pay?

  • Open Google Pay app on your mobile phone and head to the ‘Businesses and bills’ section.
  • Tap on the logo of Equitas SFB or you can directly search for the same.
  • Now select the amount you want to deposit and then select the tenure for which you want to maintain your deposit through the Equitas Bank Spot.
  • Now enter your personal details and complete the KYC procedure by entering your PAN and Aadhaar number.
  • Now complete the transaction using your existing bank account through Google Pay UPI.
  • Customers can also track their existing deposits as well as open a new one online. They can also make premature withdrawals by following some simple in-app steps. Upon which the maturity proceeds will be directly transferred to the bank account linked with Google Pay on the same business day;

Story first published: Thursday, September 2, 2021, 9:47 [IST]



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