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RBI more convinced about transient inflation than others, BFSI News, ET BFSI

August 30, 2021 root Banking & Finance

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With the US Federal Reserve and the Bank of England hinting at normalisation, factoring in a more enduring nature of the ‘transient’ high inflation, RBI’s statement appears more dovish in comparison. If indeed the duration of high inflation is longer, RBI may need to re-think its GSAP purchases and start normalising the extant liquidity deluge, which has risen to 5.4 per cent of banks deposits.

Possibly, the enlargement of variable rate reverse repo (VRRR) auctions is a precursor to such a scenario. The litmus test for how transient the inflation spike is lies in the resolution of global supply chain issues, particularly in developed economies, which explains a significant part of high prevailing inflation.

‘Inert’ growth weighs: RBI’s policy announcement on Friday, while keeping policy rates unchanged (reverse repo rate at 3.35 per cent and repo rate at 4 per cent), remains weighed by growth-revival imperatives, which are still ‘nascent and hesitant’ in the context of the impact of Covid Wave 2 as well as potential future waves. The demand condition is seen as inert despite normalisation from the impact of Wave 2 and improved 12-month-forward consumer sentiment.

While corporate performance has been good over the past 12 months, investment demand is anaemic. Pricing power in the manufacturing sector is feeble amid rising raw material costs and rising global commodity prices are a risk to growth outlook.

Pre-emptive action can kill the nascent revival: Given growth concerns, RBI has chosen to look through the recent spike in headline CPI inflation (reached 6.3 per cent in June 2021) as it is seen as transient, driven by supply sided factors, elevate domestic fuel taxes, elevated logistics costs, and high global commodity prices. Initiating pre-emptive normalisation of the ultra-easy monetary policy stance based in near-term spikes in inflation could “kill the nascent and hesitant” growth revival.

RBI scales up inflation projection even as growth to in 2HFY22: Overall, RBI has retained real GDP growth projection for FY22 at 9.5 per cent, based on its earlier scaled-down expectation and largely driven by a favourable base effect. The terminal quarter growth is being seen at 6.1 per cent, in Q4FY22, declining from 21.4 per cent in Q1.

The inflation trajectory has been scaled up to an average of 5.7 per cent for FY22, up 70bp from earlier. Importantly, the terminal quarter inflation is being seen higher at 5.9 per cent, accompanying growth deceleration, reflecting the impact of cost-led inflation on growth. The 4 per cent inflation target is now meant to be achieved over 2-3 years.

Easy financial condition the top priority: Thus, RBI’s stance to sustaining its monetary accommodation reflects its prioritisation of comfortable financial and liquidity conditions. Despite the higher projected inflation, central banks have allowed the banking system’s excess liquidity to remain extremely high. The LAF balance has increased further to Rs 8.5 lakh crore, or 5.4 per cent of bank deposits (Aug 4, 2021), up from the daily average of Rs 5.7 lakh crore in June, 2021. The GSAP purchase of G-sec by RBI is slated to continue (Rs 25,000 crore each on Aug 12 and 24, 2021). The only visible change is the progressive expansion of fortnightly auctions of the variable reverse repo rate (VRRR), rising to Rs 4 lakh crore by end-Sept 2021.

Liquidity support extended: Unlike earlier statements, no additional regulatory measures were announced this time. In light of the impact of Covid Wave 2, liquidity support under the TLTRO window has been extended until Dec 31, 2021. Likewise, the liquidity access potential for banks by dipping into SLR holdings of the G-Sec has also been extended. The resolution framework for stressed accounts that provides resolution based on identified financial performance until March 2022 has been extended to October, 2022. Thus, the liquidity support as an essential tool to ensure systemic financial stability is also maintained.

RBI more dovish than others: RBI’s “whatever it takes” stance crucially hinges on its assumption that the inflation spike will be transient, aligning the views of other central banks including the US Fed and UK’s BoE. Even so, the UK’s BoE has scaled up its inflation forecast by a huge 150bp to 4 per cent by end-2021, which implies that the transitory phase of high inflation will be longer than previously imagined.

Hence, “some modest tightening of monetary policy is likely to be necessary” over the next 2 years to keep inflation under control, as per the BoE. A similar view was expressed earlier by US Fed chairman Jerome Powell. Thus, with the US Fed and BoK indicating QE tapering, RBI’s stance of continuing with GSAP is more dovish. If indeed the duration of high inflation is longer, the RBI may need to think about reducing GSAP purchases and start normalising the liquidity deluge; the distortion created that it is creating in short-term money market rates is cannibalizing bank loan demand Possibly, the enlarged of VRRR auction of Rs 4 lakh crore is a precursor to lower GSAP.

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Bharti Airtel Announces Mega Rights Issue: Here’s What Top Brokerages Recommend

August 30, 2021 root Personal Finance

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Bharti Airtel Rights Issue Details

The Board of Directors approved the issuance of equity shares of the Company with a face value of Rs. 5/- each on a rights basis to eligible equity shareholders of the Company as of the record date in an amount up to Rs. 21,000 Crores.

The Board approved the following terms of the Issue:

(a) Price of the Rights Issue: Rs. 535 per fully paid-up equity share (plus a premium of Rs. 530 per equity share).

(b) Payment terms for the Issue Price: 25% on application, with the remainder paid in two additional calls as determined by the Board/Committee of the Board from time to time based on the Company’s needs over a 36-month period.

(c) Ratio of Rights Entitlement: 1 equity share for every 14 equity shares held by eligible shareholders on the record date.

Motilal Oswal on Bharti Airtel

This capital raise is surprising, according to brokerage company Motilal Oswal, because management has maintained in recent calls that its leverage and liquidity situation is comfortable and self-sustaining, with good FCF creation in all verticals, signalling no extra capital demand.

“The unexpected capital raise may cause a negative reaction in the short term, but we see a good earnings growth opportunity over the next 12 months,” the brokerage said.

The firm has a ‘Buy’ recommendation with a target price of 720 per share on the large-scale opportunity in the next 2-4 quarters, and Bharti Airtel is well-positioned to benefit.

Emkay Global on Bharti Airtel

After rate hikes and amid the potential of a duopolistic market following major weakening of VIL’s financial position, another brokerage, Emkay Global, claimed in a report on Saturday that Airtel stock had outperformed (by 22-37bps) the Sensex in the last 2-3 years. The stock has a ‘Buy’ rating and a target price of Rs 730.

Jefferies

Jefferies maintained a Buy call with a target price of Rs 685 a share, citing the Rs 21000 crore rights offering as a positive factor. According to the brokerage, the corporation may need funds for 5G auctions in the coming three years.

The issuance, which is priced at a 10% discount to the current market price, rewards existing shareholders and serves as a reminder that standalone FCF creation is weak, according to the company.

CLSA on Bharti Airtel

Given the company’s outstanding market share performance, CLSA also maintained a Buy stance with a target price of Rs 780 per share.

Rights Issue and Call options, according to the brokerage, create headroom, keeping gearing comfortable, especially if the government moves on with the 5G spectrum auction.

In order to raise funds, a corporation would issue a rights issue. If current owners agree to purchase extra shares, a firm can use the money to pay off debt, acquire assets, or expand without having to take out a bank loan. Shares of the company were seen trading high by 2.22% at Rs 608 on NSE at 10.13 am IST.

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Reserve Bank of India – Press Releases

August 30, 2021 root Press Releases

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(Amount in ₹ crore, Rate in Per cent)

	Volume (One Leg)	Weighted Average Rate	Range
A. Overnight Segment (I+II+III+IV)	4,37,573.57	3.15	1.00-3.40
I. Call Money	5,274.17	3.19	1.95-3.40
II. Triparty Repo	3,40,155.05	3.15	2.95-3.16
III. Market Repo	91,303.35	3.16	1.00-3.25
IV. Repo in Corporate Bond	841.00	3.40	3.40-3.40
B. Term Segment
I. Notice Money**	1,884.54	3.12	2.40-3.40
II. Term Money^@@	389.00	–	3.10-3.53
III. Triparty Repo	2,866.80	3.17	3.12-3.20
IV. Market Repo	303.19	3.35	2.90-3.45
V. Repo in Corporate Bond	1,055.70	3.50	3.40-5.35

	Auction Date	Tenor (Days)	Maturity Date	Amount	Current Rate / Cut off Rate
C. Liquidity Adjustment Facility (LAF) & Marginal Standing Facility (MSF)
I. Today’s Operations
1. Fixed Rate
(i) Repo
(ii) Reverse Repo	Fri, 27/08/2021	3	Mon, 30/08/2021	5,47,098.00	3.35
(iii) Special Reverse Repo^~	Fri, 27/08/2021	13	Thu, 09/09/2021	6,574.00	3.75
(iv) Special Reverse Repo^ψ	Fri, 27/08/2021	13	Thu, 09/09/2021	611.00	3.75
2. Variable Rate^&
(I) Main Operation
(a) Reverse Repo	Fri, 27/08/2021	13	Thu, 09/09/2021	3,00,027.00	3.42
(II) Fine Tuning Operations
(a) Repo
(b) Reverse Repo
3. MSF	Fri, 27/08/2021	3	Mon, 30/08/2021	2.00	4.25
4. Special Long-Term Repo Operations (SLTRO) for Small Finance Banks (SFBs)^£
5. Net liquidity injected from today’s operations [injection (+)/absorption (-)]*				-8,54,308.00
II. Outstanding Operations
1. Fixed Rate
(i) Repo
(ii) Reverse Repo
(iii) Special Reverse Repo^~
(iv) Special Reverse Repo^ψ
2. Variable Rate^&
(I) Main Operation
(a) Reverse Repo
(II) Fine Tuning Operations
(a) Repo
(b) Reverse Repo
3. MSF
4. Long-Term Repo Operations^#	Mon, 17/02/2020	1095	Thu, 16/02/2023	499.00	5.15
	Mon, 02/03/2020	1094	Wed, 01/03/2023	253.00	5.15
	Mon, 09/03/2020	1093	Tue, 07/03/2023	484.00	5.15
	Wed, 18/03/2020	1094	Fri, 17/03/2023	294.00	5.15
5. Targeted Long Term Repo Operations^	Fri, 27/03/2020	1092	Fri, 24/03/2023	12,236.00	4.40
	Fri, 03/04/2020	1095	Mon, 03/04/2023	16,925.00	4.40
	Thu, 09/04/2020	1093	Fri, 07/04/2023	18,042.00	4.40
	Fri, 17/04/2020	1091	Thu, 13/04/2023	20,399.00	4.40
6. Targeted Long Term Repo Operations 2.0^	Thu, 23/04/2020	1093	Fri, 21/04/2023	7,950.00	4.40
7. On Tap Targeted Long Term Repo Operations^€	Mon, 22/03/2021	1095	Thu, 21/03/2024	5,000.00	4.00
	Mon, 14/06/2021	1096	Fri, 14/06/2024	320.00	4.00
8. Special Long-Term Repo Operations (SLTRO) for Small Finance Banks (SFBs)^£	Mon, 17/05/2021	1095	Thu, 16/05/2024	400.00	4.00
	Tue, 15/06/2021	1095	Fri, 14/06/2024	490.00	4.00
	Thu, 15/07/2021	1093	Fri, 12/07/2024	750.00	4.00
	Tue, 17/08/2021	1095	Fri, 16/08/2024	250.00	4.00
D. Standing Liquidity Facility (SLF) Availed from RBI^$				23,295.80
E. Net liquidity injected from outstanding operations [injection (+)/absorption (-)]*				1,07,587.80
F. Net liquidity injected (outstanding including today’s operations) [injection (+)/absorption (-)]*				-7,46,720.20
G. Cash Reserves Position of Scheduled Commercial Banks
(i) Cash balances with RBI as on		27/08/2021		6,41,437.49
(ii) Average daily cash reserve requirement for the fortnight ending		27/08/2021		6,27,870.00
H. Government of India Surplus Cash Balance Reckoned for Auction as on^¥		27/08/2021		0.00
I. Net durable liquidity [surplus (+)/deficit (-)] as on		13/08/2021		11,32,933.00
^@ Based on Reserve Bank of India (RBI) / Clearing Corporation of India Limited (CCIL).
– Not Applicable / No Transaction.
** Relates to uncollateralized transactions of 2 to 14 days tenor.
^@@ Relates to uncollateralized transactions of 15 days to one year tenor.
^$ Includes refinance facilities extended by RBI.
^& As per the Press Release No. 2019-2020/1900 dated February 06, 2020.
* Net liquidity is calculated as Repo+MSF+SLF-Reverse Repo.
^# As per the Press Release No. 2020-2021/287 dated September 04, 2020.
^ As per the Press Release No. 2020-2021/605 dated November 06, 2020.
^€ As per the Press Release No. 2020-2021/520 dated October 21, 2020, Press Release No. 2020-2021/763 dated December 11, 2020 and Press Release No. 2020-2021/1057 dated February 05, 2021.
^¥ As per the Press Release No. 2014-2015/1971 dated March 19, 2015.
^£ As per the Press Release No. 2021-2022/181 dated May 07, 2021.
^~ As per the Press Release No. 2021-2022/177 dated May 07, 2021.
^ψ As per the Press Release No. 2021-2022/323 dated June 04, 2021.
Ajit Prasad Director
Press Release: 2021-2022/772

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Zomato | Paytm | IPO: What new age tech IPOs mean for the brokerage industry, BFSI News, ET BFSI

August 30, 2021 root Personal Finance

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The Indian brokerage industry has had a very good run in the last one year with the stock market booming despite the ongoing Covid-19 crisis. The otherwise trying time saw the onset of two new strong trends in financial markets – the return of the retail investors and companies coming to the primary market with unprecedented force.

These two factors have kept the brokerage sector busy as well as thriving. On its part, broking companies improved their platforms to promote ease of trading with the adoption of technologies such as artificial intelligence (AI), lowered brokerage fees, and tweaked their offering to suit the needs of new investors.

All these efforts helped the brokerage industry bear fruits and be future ready for the trend that is to stay for a long term. Ratings agency CRISIL estimated broking revenue to have grown around 65-70% during the financial year 2020-21 as against about 7% growth to the previous fiscal. Although the revenue forecast seems dimmer for the current financial year and probably beyond, because of market and regulatory factors, there is no denying that the industry has entered one of its most exciting times.

Riding the IPO boom
What has also ushered in a phase of change for the industry is the launching of initial public offers (IPOs). According to PrimeDatabase, there were 69 public issues which raised Rs 74,707 crore in FY21 and so far, this fiscal, around 24 companies have raised as much as Rs 37,366 crore.

The stock market debut frenzy was triggered by food delivery app Zomato, which raised $1.3 billion from the primary market this year. The owners of fintech apps like Paytm are looking forward to the IPO. The $2 billion public issue is slated to be the largest IPO in India since the Coal India IPO in 2007.
Several other unicorns and interesting start-ups joining the fray include PolicyBazaar, MobiKwik Systems, Nykaa E-Retail, and Delhivery.

There are abundant instances when the IPO mania stretched beyond a point resulting in losses for the investors. Be it the IPO boom of 1992 or the one in 1999 or the IPO boom of 2006-08 which ended with the sub prime crisis.

Time for innovation
The IPO boom is expected to bring many more millennials to the stock market given the value they see in these services companies which are in insurance, food delivery, and ecommerce, things they use on an everyday basis. With the onset of the new-age investors, helped by increased internet penetration and disposable income, the brokerage industry will go through a sea change in terms of use of technology. Already, a new crop of brokerages such as Zerodha have been creating waves in the industry. Existing and traditional brokerage firms too have ensured that they are not left behind in upgrading themselves.

As the industry and its needs evolve, technological innovations will become all the more visible. The innovations will not be restricted to investors looking at the Indian market but also beyond into more matured and bigger markets in the West. Global investments will be another area that will keep brokerages on their toes in the year ahead.

Bumps that can be straightened out
There are opportunities for revenue growth and the brokerage industry is likely to face pressure from the new regulatory changes. Two key implementations that will impact revenue growth are the upfront margin requirement mandated by the Securities and Exchange Board of India from last year and the phased increase in peak margin requirements, which will go up to 100% by September 2021. So even if new client additions bring in more revenue, these requirements would dent full potential. If Sebi were to reconsider its decision on these policies, the brokerage industry would be able to ride high.

(The author, K K Maheshwari, is President at Association of National Exchanges Members of India (ANMI). The views are his own)

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Bank of Maharashtra mulls FPO to cash in on retail investor demand, BFSI News, ET BFSI

August 30, 2021 root Banking & Finance

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“Investors have shown a lot of enthusiasm in the bank’s scrip considering the promising performance of the bank since the last two years which resulted in a sharp rise in the bank’s share price. The Bank may come up with FPO in view of demand from retail investors in future at an opportune time,”bank’s MD & CEO A S Rajeev

Bank of Maharashtra, which has been adjudged best performer among PSBs for the last fiscal, is looking to come up with a follow-on public offer at an opportune time.

“Investors have shown a lot of enthusiasm in the bank’s scrip considering the promising performance of the bank since the last two years which resulted in a sharp rise in the bank’s share price. The Bank may come up with FPO in view of demand from retail investors in future at an opportune time,” bank’s MD & CEO A S Rajeev told ETBFSI.

The bank recently raised Rs 400 crore via qualified institutional placement as it took benefit of consistent performance in the last ten quarters and the current market scenario.

To support the projected growth and improve the CRAR level, the bank may further raise capital in the form of Tier I /Tier II bonds at an opportune time.

At present, the bank is well capitalised with CRAR as of Q1 FY22 at 14.46% as against the minimum requirement of 10.875%. The CET-1 capital ratio of the Bank stood at 11% as against the minimum requirement of 7.375%.

“Looking forward and considering present market condition, we are targeting growth in gross advances by 16-18% for the current fiscal, the bank’s Board has created an enabling provision to raise Rs 5,000 crore capital for business growth. We are projecting advances level of Rs 125,000 crore in this financial year,” Rajeev said.

Expansion plans

Bank of Maharashtra is on an expansion mode and wants to have branch presence in all the districts of the country. In the last fiscal, the bank opened 132 outlets, of which new branches are 86. The bank has been able to mobilise Rs 1,000 crore in just nine months of their operation.

“During current fiscal, we are all set for opening branches at 200 banking outlets with a hub and spoke model i.e. branches to act as hubs and surrounding centres through customer service points (CSPs) managed by Business Correspondents as spoke. We are targeting the Business centres, where ample opportunities are available for business growth, Rajeev said.

The bank plans utilisation of technology and data analytics to tap into previously untapped markets through product innovation & using artificial intelligence.

Reducing NPAs

Rajeev said the bank is taking conscious efforts to monitor recoveries including asset sales, one-time settlements etc. To push loan recoveries in stressed assets, the lender has come up with effective settlement schemes with attractive terms. “Keeping present scenario into consideration, we are also giving priority in small NPA accounts up to Rs 1 crore dues by extending compromise offer under non-discretionary and non-discriminatory policy. Recovery machinery at all levels are geared up through phone calls, emails, virtual interaction with the borrowers and through the Specialized SAMB and ARB branches,” he said. The bank organises recovery camps at regular intervals which helps in arriving amicable resolution. Mega e-auction through e-Bikray platform with appropriate publicity has been carried out including tie-up arrangements with real estate agencies at notified places to fetch favourable outcome, Rajeev said.

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Government extends tenure of UCO Bank’s MD & CEO for 2 years, BFSI News, ET BFSI

August 30, 2021 root Banking & Finance

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State-owned UCO Bank on Saturday said the government has extended the term of its MD and CEO Atul Kumar Goel for two years.

The central government, through a notification dated August 26, extended the term of office of Atul Kumar Goel as UCO Bank’s managing director and chief executive officer (MD & CEO), for a period of two years or until further orders, whichever is earlier, the bank said in a regulatory filing.

Goel’s current term was to expire on November 1, 2021.

On Friday, Punjab National Bank and Bank of Maharashtra had also informed about extensions given to their MD & CEOs.

The government has also extended the terms of two executive directors each in Punjab National Bank and Union Bank of India, and one executive director of Central Bank of India.

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How it affects traders, BFSI News, ET BFSI

August 30, 2021 root Personal Finance

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From September 1, traders will have to shell out 100 per cent margins upfront for their trades due to the new peak margin norms of Sebi kicking in. Traders taking intra-day positions will be the most impacted since in the earlier system margins were calculated on end-of-the-day basis. Now, margin requirements will be calculated four times every session bringing even intraday positions under the ambit. These changes in the margin norms have created furore amongst traders as they will now have to deploy more cash as margin. ET takes a look at the impact of the new norms on market participants.

WHAT WILL CHANGE FOR TRADERS FROM SEPTEMBER 1?
Traders taking bets on futures and options (F&O) markets will have to shell out higher margin money making these trades more expensive. Essentially, they are required to cough up 100 per cent of margin upfront under the new peak margin norms. These margins would apply even to intra-day positions i.e. the ones where the trader enters and sells the contracts within the same market session. Currently, the upfront margin required is 75 per cent of the total margin. In other words, if a trader wants to buy a Nifty contract worth Rs 10 lakh, the margin at 20 per cent would be around Rs 2 lakh. Until August 30, the upfront margin was only Rs 1.75 lakh.

WHAT IS PEAK MARGIN?
Until last year, margins were collected based on end-of-the-day positions. For example, a client had exposure to Rs 1 crore worth F&O securities as on yesterday and he has taken up further exposure of Rs 1 crore during the current market session. In the old system, traders were not required to pay margin money for the Rs 1 crore additional exposure taken until the end of the session. This benefited the active traders since if the additional exposure taken was sold off by the end of the session, the transaction wouldn’t need any special margin money to be brought in. The Securities and Exchange Board of India (Sebi) introduced the peak margin system late last year and it was to be implemented in four phases: first phase with 25 per cent peak margin, second phase with 50 per cent peak margin, third phase with 75 per cent peak margin and finally the complete implementation of upfront margin with effect from September 1. Under the peak margin system, the margin requirement is no longer calculated on the basis of end-of-the- day positions. Instead, the exchanges will sample the prices four times every session and the margins would be calculated based on this. So even the intra-day positions will come under margining.

WHY THE CHANGES?
The intention behind the changes was to control the leverage being taken by some of the traders and thereby reduce systemic risks. Many traders were taking extremely risky bets intra-day which were not being captured in the margin system. Brokers used to allow such positions as long as the margin money in their bank accounts was more than total leverage taken at the end of the market session. But now, the margin will be calculated based on the four price samplings of the exchange and during every point of the trading session, the margin money must be adequate or greater than the requirement.

WHY ARE TRADERS ANGRY?
Changes in rules have evoked strong reactions from the trader and broker community since they will have to shell out more money to bet in the futures market. The core of their contention is that intra-day positions will now need upfront margins. Also, if a trader falls short of these margins during the session, he would be liable to pay a penalty. So, if there are any wild price movements and margins of a trader fall short of the requirement, the same will be penalised. Brokers lobby ANMI has made several representations to exchanges, Sebi and the finance ministry seeking relief from these new rules.

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Comparison of top bank personal loan rates, BFSI News, ET BFSI

August 30, 2021 root Personal Finance

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A personal loan comes in handy when we are short of funds and need the money as soon as possible. A personal loan is an unsecured loan given by a lender. While taking this loan, the potential borrower is not required to provide collateral or security against the loan, unlike in a gold loan where gold jewellery is taken as security by the lender.

Read on to find out more about personal loans.

Where can you avail a personal loan?
While one can approach one’s friends and relatives for a personal loan, lending institutions such as banks and non-banking financial companies (NBFCs) offer personal loans in a more structured and ‘on-tap’ format. Apart from banks like State Bank of India (SBI), HDFC Bank, NBFCs such as Tata Capital, Bajaj Finserv also offer personal loans. As personal loan from one’s friends and relatives may not always be readily available, we shall consider the more structured format of personal loans offered by lending institutions.

Maximum and minimum amount
The minimum and maximum amount that can be taken varies from one lending institution to another. For instance, according to its website, SBI offers a maximum personal loan of Rs 20 lakh to salaried individuals. On the other hand, HDFC Bank offers personal loans up to Rs 12 lakh, as per the bank’s website.

According to Tata Capital’s website, you can take a minimum personal loan of Rs 75,000 and maximum of Rs 25 lakh depending on your eligibility.

Fixed or floating interest rate
While taking a loan, one should check with the lender if the interest rate offered on the personal loan is fixed or floating. In case the interest rate is fixed, changes in the bank’s MCLR will not impact your equated monthly instalment (EMI) amount. Also, do remember that normally the interest rates charged on personal loans are much higher than on home loans or loans against gold because the former are unsecured loans.

Interest rate, loan amount offered by banks for personal loans

BANKS	Personal Loan Amount	Tenure	RoI (%)
AU Small Finance Bank	Upto 7.5 Lacs	Upto 60 months	11.49% – 23.00%
Axis Bank	Upto 15 Lacs	Upto 60 months	12.00% – 21.00%
Bandhan Bank	>=50000 and <=5 Lacs	12 – 36 Months	15.90% – 20.75%
Bank Of Baroda	>=50000 and <=10 Lacs	48 – 60 Months	10.50% to >=16.15%
Bank Of India	Upto 10 Lacs	36 – 60 Months	10.75% – 12.75%
Bank Of Maharashtra	Upto 10 Lacs	60 months	9.55% – 12.90%
Canara Bank	Upto 20 Lacs	Upto 60 months	12.40% – 13.90%
Central Bank Of India	Upto 10 Lacs	48 Months	9.85% – 10.05%
City Union Bank	>=5000 and <=5 Lacs	12 Months	>=9.50%
Dhanlaxmi Bank	>=1 Lacs and <=15 Lacs	12 – 60 Months	11.90% – 15.70%
Federal Bank	Upto 25 Lacs	48 Months	10.49% to 17.99%
HDFC Bank	Upto 15 Lacs	12 – 60 Months	10.50% – 21.00%
I O B	Upto 5 Lacs	60 Months	>=10.80%
ICICI Bank	Upto 20 Lacs	60 Months	10.50% – 19.00%
IDBI Bank	>=25000 and <=5 Lacs	12 – 60 Months	8.30% – 14.00%
IDFC First Bank	>=1 Lacs and <=40 Lacs	12 – 84 Months	>=10.49%
Indian Bank	>=50000 and <=5 Lacs	12 – 36 Months	9.05% – 13.65%
IndusInd Bank	>=50000 and <=15 Lacs	12 – 60 Months	10.49% – 31.50%
J & K Bank	Upto 1.50 Lacs	48 Months	>=10.80%
Karnataka Bank	Upto 5 Lacs	Upto 60 months	>=12.45%
Karur Vysya Bank	Upto 10 Lacs	12 – 60 Months	9.40% – 19.00%
Kotak Mahindra Bank	>=50000 and <=20 Lacs	12 – 60 Months	>=10.75%
Punjab & Sind Bank	>=1 Lacs and <=3 Lacs	Upto 60 months	9.35% – 11.50%
Punjab National Bank	Upto 10 Lacs	Upto 60 months	8.95% – 14.50%
RBL Bank	Upto 20 Lacs	12 – 60 Months	14.00% – 23.00%
South Indian Bank	>=1 Lacs and <=10 Lacs	Upto 60 months	11.95% – 12.65%
State Bank Of India	>=25000 and <=20 Lacs	06 – 72 Months	9.60% – 15.65%
Union Bank Of India	>=5 Lacs and <=15 Lacs	Upto 60 months	8.90% – 13.00%
Yes Bank	>=1 Lacs and <=40 Lacs	12 – 60 Months	>=10.99%
Ujjivan Small Finance Bank	>=50000 and <=15 Lacs	12 – 60 Months	>=11.49%

All data sourced from Economic Times Intelligence Group (ETIG)
Data as on August 29, 2021Eligibility to apply for personal loans
The eligibility criteria for sanctioning personal loans vary from lender to lender. To be eligible for a personal loan from SBI, your minimum monthly income should be Rs 15,000 irrespective of whether you have a salary account with the bank or not as per the bank’s website.

In case of HDFC Bank, to be eligible for a personal loan an individual should be between 21 years and 60 years of age and should have a job for at least two years, with a minimum of one year with the current employer. Further, if salary account is maintained with HDFC Bank, then the individual should have minimum Rs 25,000 net income per month. If the individual is not an HDFC Bank account holder, then he/she should have minimum Rs 50,000 net income per month.

Your credit score will also play an important role in determining whether or not you are eligible to get the personal loan.

Tenure of personal loans
Usually, a personal loan is offered for a maximum of five years by lending institutions such as banks. However, the tenure can vary from lender to lender.

Charges in personal loan
To avail a personal loan, a bank or NBFC will levy certain charges such as processing fees, stamp duty and other statutory charges etc. These charges vary from lender to lender.

Further, a lender can also levy pre-payment charges or pre-closure charges. Therefore, before taking a loan from the lender do check the different types of charges leviable.

Disclaimer: The data/information given above is subject to change, hence before taking any decision based on it, please check terms and conditions with the bank/institution concerned.

For any queries or changes, please write to us on etigdb@timesgroup.com or call us at 022 – 66353963.

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CBDT Extends Due Dates For Electronic Filing of Various Forms Under Income-tax Act, 1961

August 30, 2021 root Personal Finance

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Taxes

oi-Vipul Das

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Published: Monday, August 30, 2021, 8:43 [IST]

The Central Board of Direct Taxes (CBDT) has extended the deadline to file certain electronic forms under Income-tax Act 1961. The decision is made by the tax department in response to the concerns identified by taxpayers and other stakeholders in e – filing of various Forms under the standards of the Income-tax Act of 1961. In its press release issued on 29th August 2021, CBDT has said that “On consideration of difficulties reported by the taxpayers and other stakeholders in electronic filing of certain Forms under the provisions of the Income-tax Act,1961 read with Income-tax Rules,1962 (Rules), Central Board of Direct Taxes (CBDT) has decided to further extend the due dates for electronic filing of such Forms.”

CBDT Extends Due Dates For e-Filing of Various Forms Under Income-tax Act, 1961

On consideration of difficulties reported by taxpayers & other stakeholders in electronic filing of certain Forms under the IT Act,1961, CBDT has further extended the due dates for electronic filing of such Forms. CBDT Circular No.16/2021 dated 29.08.2021 issued. pic.twitter.com/iOadU8ImUQ

— Income Tax India (@IncomeTaxIndia) August 29, 2021

According to CBDT the further details are as follows:

1. The application for registration or intimation or approval under Section 10(23C), 12A, 35(1)(ii)/(iia)/(iii) or 80G of the Act in Form No. 10A required to be filed on or before 30th June, 2021, as extended to 31st August, 2021 vide Circular No.12 of 2021 dated 25.06.2021, may be filed on or before 31st March, 2022;

2. The application for registration or approval under Section 10(23C), 12A or 80G of the Act in Form No.10AB, for which the last date for filing falls on or before 28th February, 2022 may be filed on or before 31st March, 2022;

3. The Equalization Levy Statement in Form No.1 for the Financial Year 2020- 21, which was required to be filed on or before 30th June, 2021, as extended to 31st August, 2021 vide Circular No.15 of 2021 dated 03.08.2021, may be filed on or before 31st December, 2021;

4. The Quarterly statement in Form No. 15CC to be furnished by authorized dealer in respect of remittances made for the quarter ending on 30th June, 2021, required to be furnished on or before 15th July, 2021 under Rule 37BB of the Rules, as extended to 31st August, 2021 vide Circular No.15 of 2021 dated 03.08.2021, may be furnished on or before 30th November, 2021;

5. The Quarterly statement in Form No. 15CC to be furnished by authorized dealer in respect of remittances made for the quarter ending on 30th September, 2021, required to be furnished on or before 15th October, 2021 under Rule 37BB of the Rules, may be furnished on or before 31st December, 2021;

6. Uploading of the declarations received from recipients in Form No. 15G/15H during the quarter ending 30th June, 2021, which was originally required to be uploaded on or before 15th July, 2021, and subsequently by 31st August, 2021, as per Circular No.12 of 2021 dated 25.06.2021, may be uploaded on or before 30th November, 2021;

7. Uploading of the declarations received from recipients in Form No. 15G/15H during the quarter ending 30th September, 2021, which is required to be uploaded on or before 15th October, 2021, may be uploaded on or before 31st December, 2021;

8. Intimation to be made by Sovereign Wealth Fund in respect of investments made by it in India in Form II SWF for the quarter ending on 30th June, 2021, required to be made on or before 31st July, 2021 as per Circular No.15 of 2020 dated 22.07.2020, as extended to 30th September, 2021 vide Circular No.15 of 2021 dated 03.08.2021, may be made on or before 30th November, 2021;

9. Intimation to be made by Sovereign Wealth Fund in respect of investments made by it in India in Form II SWF for the quarter ending on 30th September, 2021, required to be made on or before 31st October, 2021 as per Circular No.15 of 2020 dated 22.07.2020, may be made on or before 31st December, 2021;

10. Intimation to be made by a Pension Fund in respect of each investment made by it in India in Form No. 10BBB for the quarter ending on 30th June, 2021, required to be made on or before 31st July, 2021 under Rule 2DB of the Rules, as extended to 30th September, 2021 vide Circular No. 15 of 2021 dated 03.08.2021, may be made on or before 30th November, 2021;

11. Intimation to be made by a Pension Fund in respect of each investment made by it in India in Form No. 10BBB for the quarter ending on 30th September, 2021, required to be made on or before 31st October, 2021 under Rule 2DB of the Rules, may be made on or before 31st December, 2021;

12. Intimation by a constituent entity, resident in India, of an international group, the parent entity of which is not resident in India, for the purposes of sub-section (1) of section 286 of the Act, in Form No.3CEAC, required to be made on or before 30th November, 2021 under Rule 10DB of the Rules, may be made on or before 31st December, 2021;

13. Report by a parent entity or an alternate reporting entity or any other constituent entity, resident in India, for the purposes of sub-section (2) or sub-section (4) of section 286 of the Act, in Form No. 3CEAD, required to be furnished on or before 30th November, 2021 under Rule 10DB of the Rules, may be furnished on or before 31st December, 2021;

14. Intimation on behalf of an international group for the purposes of the proviso to sub-section (4) of section 286 of the Act in Form No. 3CEAE, required to be made on or before 30th November, 2021 under Rule 10DB of the Rules, may be made on or before 31st December, 2021.

On the other side, the Income Tax Department has confirmed via its Twitter handle that “Date of payment under the Direct Tax Vivad se Vishwas Act, 2020 (without additional amount) extended to 30th September, 2021. The last date for payment of the amount (with additional amount) remains 31st October, 2021.”

Date of payment under the Direct Tax Vivad se Vishwas Act, 2020 (without additional amount) extended to 30th September, 2021. The last date for payment of the amount (with additional amount) remains 31st October, 2021.
Press release issued. pic.twitter.com/gNPPUEbEEF

— Income Tax India (@IncomeTaxIndia) August 29, 2021

Regarding the tax refunds, the Income Tax Department has also requested taxpayers through its Twitter handle that “The Deptt requests taxpayers to respond online quickly, so that ITRs in such cases of AY 20-21 can be processed expeditiously. The Deptt has also commenced processing of ITRs 1 & 4 for AY 21-22 & refunds, if any, will be issued directly to the bank account of the taxpayer.”

The Deptt requests taxpayers to respond online quickly, so that ITRs in such cases of AY 20-21 can be processed expeditiously. The Deptt has also commenced processing of ITRs 1 & 4 for AY 21-22 & refunds, if any, will be issued directly to the bank account of the taxpayer (5/5)

— Income Tax India (@IncomeTaxIndia) August 29, 2021

The department has further clarified that “CBDT issues refunds of over Rs. 51,531 crore to more than 22.99 lakh taxpayers between 1st April,2021 to 23rd August,2021. Income tax refunds of Rs. 14,835 crore have been issued in 21,70,134 cases & corporate tax refunds of Rs. 36,696 crore have been issued in 1,28,870 cases.”

CBDT issues refunds of over Rs. 51,531 crore to more than 22.99 lakh taxpayers between 1st April,2021 to 23rd August,2021. Income tax refunds of Rs. 14,835 crore have been issued in 21,70,134 cases &corporate tax refunds of Rs. 36,696 crore have been issued in 1,28,870 cases(1/5)

— Income Tax India (@IncomeTaxIndia) August 29, 2021

Story first published: Monday, August 30, 2021, 8:43 [IST]

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Google’s push into Indian retail banking is a threat to traditional lenders, BFSI News, ET BFSI

August 30, 2021 root Banking & Finance

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Will banking meet the sorry fate of newspapers? With the tech industry creeping up on licensed deposit-taking institutions in India, it’s time to take the question seriously.

Alphabet Inc.’s Google already provides one of the two most popular payment wallets in the country. But now Google Pay wants to push time-deposit products of small Indian banks that don’t have much of a retail liability franchise of their own. According to a press release, Equitas Small Finance Bank will offer Google Pay customers up to 6.85% interest on one-year funds as part of a “branded commercial experience” on the platform. The Mint newspaper, which has reviewed the application interface built by Setu, a Bangalore-based fintech, says other lenders may also sign up.

The move has global significance. It shows the tenuous nature of the hold financial institutions have on a core operation like deposit-taking, and their vulnerability to an assault from online search, social media and e-commerce behemoths. Alphabet, Facebook Inc. and Amazon.com Inc. may pose a far bigger challenge to brick-and-mortar lenders than fintech startups that don’t have the scale of platform businesses. Just like in India, deposit-strapped challenger banks might throw the keys to tech intermediaries with hundreds of millions of active users. When the giants storm the fortress, even larger banks will lose control of banking.

China’s homegrown tech titans have already shown how easy it is to dislodge traditional lenders from lending. In a growing network of users, real-time nonfinancial data can be a more powerful predictive tool than credit scores relied upon by banks. Adding a layer of financial activity to an online platform brings in yet more information. Before Beijing stepped in to clip its wings, Jack Ma’s Ant Group Co. pursued this advantage to the hilt.

Silicon Valley never had a chance in China. However, it’s in a stronger position in the world’s second-most-populous nation, where everything to do with money is increasingly about plugging into an open network. Banks’ historic moat has been breached by tech innovation.

For instance, the government’s digital identification system for 1.3 billion people has made paper trails and physical presence redundant, and turned the banks’ cumbersome know-your-customer processes (verifying an address or being introduced by another account holder) into a cheap utility with standard protocols. A wallet can establish customer identity as easily as a bank and manage the process of seeking her consent.

Nor do India’s deposit-taking institutions have any special advantage left in moving retail money. Yes, they still hold the accounts for sending or receiving funds. But rather than transacting on their bank apps or cards, customers prefer to use Google Pay or Walmart Inc.’s PhonePe to pay one another and merchants. The two wallets were used to transfer 5 trillion rupees ($70 billion) last month, giving the duo an 85% share of a market that has more than 50 apps, including from banks.

That’s the power of platforms’ data-network-activity, or DNA, loop, as researchers at the Bank for International Settlements describe it. When Facebook’s WhatsApp Pay is fully ready, the half a billion Indian users of the messaging service are bound to give it a leg-up in financial businesses.

The environment is ripe for Silicon Valley to encroach into banking. Equitas doesn’t have a pre-existing relationship with the Google Pay customer to whom it’s marketing fixed-term products. Even after getting the money, the lender might not get to build long-term association with the saver. Once the deposit matures, the money will simply get swept back into whichever bank’s account it came from. Since it won’t even take two minutes for a platform to book deposits from scratch, if another lender offers a better deal, idle funds might go there next. Customer loyalty, which is often just plain inertia, will no longer ensure stickiness. Savers will gain.

If the playbook is successful, the likes of PhonePe and WhatsApp Pay might also want to copy it. For a fee, platforms can easily extend their insights into consumer behavior and payment flows to influence deposit mobilization. The higher the commission, the lower the banks’ profit. India’s state-run lenders, in particular, will need to become more efficient. Or they’ll have to lobby with regulators to rein in the tech giants. Amazon, Google and Facebook were all competing to build a brand-new payment network in India, But the central bank has put the license on hold because of data safety concerns, according to a separate report in Mint last week.

Globally, banks and regulators have been bracing themselves for the challenge from Diem, a Facebook-backed project that promises to replicate major global currencies to broaden financial inclusion. But lenders can be on a slippery slope even without new payment instruments. As Big Tech asserts control over the flow of yield-seeking savings, an imposing high-street presence will no longer serve as a ticket to cheap funding.

Regulated institutions may be left holding a license to take deposits — and a thick rule book accompanying that privilege — but platforms will decide if a bank’s promotional offer is to be displayed prominently or buried in an obscure corner. The same slow, painful decline that gutted the print media after readers and advertisers moved online and publishers lost their sway over them may be waiting in the wings for banking, too.

(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)

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