2 Stocks To Buy From The FMCG And IT Space According To Sharekhan

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Buy Nestle India, says Sharekhan

Sharekhan has set a target price of Rs 22,395 on the stock of Nestle, as against the current market price of Rs 20,030. The broking firm believes that Nestle has maintained its thrust on achieving double-digit revenue growth by penetrating deep in rural markets (covered 89,288 villages), innovation (that contributes 4.3% of sales) and accelerating footprint through new channels.

Nestle is the largest food company with a strong portfolio of brands in the packaged food & beverages space, which will help it achieve good growth at a time when consumers are shifting to trusted brands, rural aspirations are improving, thereby boosting overall penetration.

According to Sharekhan, Nestle is planning to reward its shareholders with a higher dividend in the coming years by transferring Rs. 837 crore from the general reserve to retained earnings.

“We maintain a Buy on Nestle India with a revised price target of Rs. 22,395. Revenues and net profits are expected to clock a CAGR of 14% and 18% over CY2020-23,” the broking firm has said.

Buy L&T Infotech, says Sharekhan

Buy L&T Infotech, says Sharekhan

Sharekhan has set a price target of Rs 5,750 on the stock of L&T infotech as against the current market price of Rs 5142.

According to Sharekhan, L&T Infotech is expected to witness sustainable growth leadership in FY2022E on account of strong client relationships, recovery in impacted verticals, strong spending in top accounts in resilient verticals, prudent hiring and talent policies, and superior digital competency position.

“Further, management eyes net profit margin of 14-15% going ahead despite investments in capability building and bolstering of sales team, aided by strong revenue growth, higher offshoring, productivity enhancement, cost-optimisation measures, and hedging strategy.

We estimate L&T Infotech to report USD revenue/EPS CAGR of 17%/19% over FY2020-FY2024E. At the current market price, the stock is trading at 38x/32x/28x its FY2022E/FY2023E/ FY2024E earnings, which although expensive, is justified given its market-leading revenue growth potential with stable margin, strength in its business model, and strong return ratios. Hence, we maintain our Buy rating on L&T Infotech with a revised price target of Rs. 5,750,”

 Disclaimer

Disclaimer

The above stocks are based on the report of Sharekhan. 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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Reserve Bank of India – Press Releases

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The Reserve Bank of India (RBI) has, by an order dated August 26, 2021, imposed a monetary penalty of ₹5 lakh (Rupees Five Lakh only) on Seyad Shariat Finance Limited, Tirunelveli, Tamil Nadu (the company), for non-compliance with certain provisions of the “Reserve Bank of India (Know Your Customer (KYC) Directions, 2016”. The penalty has been imposed in exercise of powers vested in RBI under the provisions of clause (b) of sub-section (1) of section 58 G read with clause (aa) of sub-section (5) of section 58 B of the Reserve Bank of India Act, 1934, taking into account the failure of the company to adhere to the aforesaid RBI directions.

This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the company with its customers.

Background

The statutory inspection of Seyad Shariat Finance Limited, with reference to its financial position as on March 31, 2017 and March 31, 2019 and the Inspection Reports pertaining thereto, revealed non-compliance with the statutory directions, including, inter alia, the company’s failure to ensure categorization of customers based on risk assessment and risk perception. In furtherance to the same, a notice was issued to the company advising it to show cause why penalty should not be imposed on it for failure to comply with the directions issued by RBI. After considering the company’s reply to the notice, RBI came to the conclusion that the charge of non-compliance with the aforesaid RBI directions was substantiated and warranted imposition of monetary penalty.

(Yogesh Dayal)     
Chief General Manager

Press Release: 2021-2022/754

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Reserve Bank of India – Press Releases

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The Reserve Bank of India (RBI) has imposed, by an order dated August 26, 2021, a monetary penalty of ₹3 lakh (Rupees Three lakh only) on Jijamata Mahila Sahakari Bank, Pune, Maharashtra (the bank) for contravention of/non-compliance with the directions issued by RBI on Exposure Norms and Statutory / Other Restrictions – UCBs. This penalty has been imposed in exercise of powers vested in RBI under the provisions of Section 47 A (1) (c) read with Section 46 (4) (i) and Section 56 of the Banking Regulation Act, 1949, taking into account the failure of the bank to adhere to the aforesaid directions issued by the RBI.

The action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.

Background

The inspection report of the bank based on its financial position as on March 31, 2019, revealed that the bank had, inter alia, not adhered to the ceiling on advances to nominal members. Based on the same, a Notice was issued to the bank advising it to show cause as to why penalty should not be imposed for non-compliance with the aforesaid direction.

After considering the bank’s reply to the Notice and oral submissions made during the personal hearing, RBI came to the conclusion that the aforesaid charges of non-compliance with the RBI direction was substantiated and warranted imposition of monetary penalty.

(Yogesh Dayal)     
Chief General Manager

Press Release: 2021-2022/753

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Reserve Bank of India – Press Releases

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The Reserve Bank of India (RBI) has imposed, by an order dated August 26, 2021, a monetary penalty of ₹2.00 lakh (Rupees Two lakh only) on The Muslim Co-operative Bank Limited, Pune, Maharashtra (the bank) for contravention of/non-compliance with the directions issued by RBI on ‘Know Your Customer (KYC)’. This penalty has been imposed in exercise of powers vested in RBI under the provisions of Section 47 A (1) (c) read with Section 46 (4) (i) and Section 56 of the Banking Regulation Act, 1949, taking into account the failure of the bank to adhere to the aforesaid directions issued by RBI.

The action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.

Background

The inspection report of the bank based on its financial position as on March 31, 2019, revealed, inter alia, that the bank had not done periodic KYC updation of accounts. Based on the same, a Notice was issued to the bank advising it to show cause as to why penalty should not be imposed for non-compliance with the aforesaid direction.

After considering the bank’s reply to the Notice and oral submissions made during the personal hearing, RBI came to the conclusion that the aforesaid charge of non-compliance with the RBI direction was substantiated and warranted imposition of monetary penalty.

(Yogesh Dayal)     
Chief General Manager

Press Release: 2021-2022/752

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Reserve Bank of India – Press Releases

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April 14, 2015




Dear All




Welcome to the refurbished site of the Reserve Bank of India.





The two most important features of the site are: One, in addition to the default site, the refurbished site also has all the information bifurcated functionwise; two, a much improved search – well, at least we think so but you be the judge.




With this makeover, we also take a small step into social media. We will now use Twitter (albeit one way) to send out alerts on the announcements we make and YouTube to place in public domain our press conferences, interviews of our top management, events, such as, town halls and of course, some films aimed at consumer literacy.




The site can be accessed through most browsers and devices; it also meets accessibility standards.



Please save the url of the refurbished site in your favourites as we will give up the existing site shortly and register or re-register yourselves for receiving RSS feeds for uninterrupted alerts from the Reserve Bank.



Do feel free to give us your feedback by clicking on the feedback button on the right hand corner of the refurbished site.



Thank you for your continued support.




Department of Communication

Reserve Bank of India


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Reserve Bank of India – Tenders

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1. Reserve Bank of India invites competitive e-tenders/ e-bids for Reserve Bank of India invites competitive e-tenders/ e-bids for Design, Supply, Installation, Testing and Commissioning (DSITC) of Grid Interactive SPV based 104 KWp Solar Power Plant (SPP) for RBI at Byculla Office Building, RBI Officers Quarters at BKC, RBI Officers Quarters at Kailash, Malad (East), RBI Staff Quarters at Bhandup and RBI Staff Quarters at Chembur in Mumbai from eligible bidders as per the specified pre-qualification criteria. The work is estimated to cost of ₹60 Lakhs and the contract duration shall be 16 weeks from the 14th day of work order.

2. The Earnest Money Deposit (EMD) shall be submitted in the form of Demand Draft, NEFT or Bank Guarantee from scheduled bank. The Demand Draft shall be submitted in sealed cover addressed by name to Shri Ajay Michyari, Regional Director, Reserve Bank of India, Bandra Kurla Complex, Mumbai – 400051 so as to reach Estate Office, Bandra Kurla Complex, Reserve Bank of India, Mumbai – 400051 up to 2.00 PM on October 11, 2021 superscribed as “EMD for Design, Supply, Installation, Testing and Commissioning (DSITC) of Grid Interactive SPV based 104 KWp Solar Power Plant (SPP) for RBI at Byculla Office Building, RBI Officers Quarters at BKC, RBI Officers Quarters at Kailash, Malad (East), RBI Staff Quarters at Bhandup and RBI Staff Quarters at Chembur in Mumbai. Online tenders will be available for viewing /downloading by all firms till 02:00 PM on October 11, 2021.

3. All the Pre-Qualification papers shall be submitted by hard copy or e-mail on or before September 16, 2021. The same shall be examined by the Bank and the eligible participants shall be intimated accordingly.

4. The firms which do not comply with the following pre-qualification criteria and/or do not submit EMD will not be considered for opening of their tender Part-II (Price Bid):

a) The intending bidder must have minimum 5 years of experience in carrying out similar nature of works viz. Design, Supply, Installation, Testing and Commissioning (DSITC) of Grid Interactive SPV based Solar Power Plant (SPP). The similar work* should have been completed on or before March 31, 2016.

b) The intending bidder must have executed successfully “Design, Supply, Installation, Testing and Commissioning (DSITC) of Grid Interactive SPV based Solar Power Plant (SPP), during last five years ending on March 31, 2021 as under:

(a) Three works each costing not less than 40% of Rs. 60 Lakh

OR

(b) Two works each costing not less than 50% of Rs. 60 Lakh

OR

(c) One work costing not less than 80% of Rs. 60 Lakh

c) Minimum yearly turnover of 100% of the estimated cost during last 3 financial years ending March 31, 2021, supported by audited financial statements.

d) Should furnish solvency certificate issued by applicant’s Banker for the estimated cost of work.

5. In addition to above, intending bidders shall also submit following details and supporting documents along with PQ papers for Bank’s examination:

(a) Composition of the firm Full particulars (whether contractor is an individual, or a partnership firm, or a company etc.,) of the composition of the firm of contractors in details should be submitted along with name(s) and address (es), of the partner’s copy of the Articles of Association/ Power of Attorney/other relevant document.
(b) Work experience & Completion of similar works of specified value during the specified period Copies of the detailed work orders indicating date of award, value of awarded work, time given for completing the work etc. and the corresponding completion certificates indicating actual date of completion and actual value of executed similar works should be enclosed in proof of the work experience. The details along with documentary evidence of previous experience, if any, of carrying out works for the Reserve Bank of India at any Centre, should also be given.
(c) Turnover Audited financial statements for last three financial years i.e. 2018-19, 2019-20 and 2020-21 along with a certificate of Chartered Accountant indicating the turnover for these financial years.
(d) Credit worthiness of the contractor and their turnover during the specified period Copies of the Income Tax Clearance Certificates/Income Tax Assessment Orders along with the latest final accounts of the business of the contractor duly certified by a Chartered Accountant should be enclosed in proof of their creditworthiness and turnover for last three years.
(e) Name(s) and address(es) of the Bankers and their present contact executives Written Information about the names and addresses of their bankers along with full details, like names, postal addresses, e-mail IDs, telephone (landline and mobile) nos., fax nos., etc. of the contact executives (i.e. the persons who can be contacted at the office of their bankers by the Bank, in case it is so needed) should be furnished.
(f) Details of bank accounts Full particulars of their bank accounts, like account no. type, when opened etc., should be given.
(g) Name(s) and address(es) of the Clients and their present contact executives Written information about the names and addresses of their clients along with full details, like names, postal addresses, e-mail IDs, telephone (landline and mobile) nos., fax nos. etc., of the contact executives (i.e. the persons who can be contacted at the office of their clients by the Bank in case it is so needed) should be furnished.
(h) Details of completed works (Annex 8) The client-wise names of work(s), year(s) of execution of work (s), awarded and actual cost (s) of executed work (s), completion time stipulated in the contract (s) and actual time taken to complete the work (s), Name(s) and full contact-details of the officers/authorities/departments under whom the work(s) was/were executed should be furnished.
(i) Details of Service setup Full fledged service setup should be available for the specified job either at Mumbai or at nearby city/place wherefrom required quality after sales services can be regularly provided.
(j) Details of registration and copies of registration certificate/ documents for PAN
GST
Office of Labour Commissioner, if applicable

6. In the event of intending bidder’s failure to satisfy the Bank; the Bank reserves the right to not allow him to participate in tendering process.

7. A pre-bid meeting (off-line mode) of the intending bidders will be held on October 01, 2021 at 11.00 AM at Estate Office, BKC, Reserve Bank of India, Mumbai. The duly filled in tender documents shall be uploaded on MSTC site till 2.00 PM on October 11, 2021. No further clarifications/queries will be entertained after the pre-bid meeting.

8. (a) Tender forms can be downloaded for viewing from the website www.mstcecommerce.com w.e.f. August 26, 2021 from 5.00 PM.

(b) EMD of ₹ 1,20,000/- (Rupees One Lakh Twenty Thousand only) in the form of DD, NEFT or Bank Guarantee issued by a scheduled Bank should be submitted on or before 2.00PM on October 11, 2021.

(c) Tenderers shall submit all the information and the documents as mentioned in the tender.

After examination, if any of the bidder is not found to possess the required eligibility, their tenders will not be accepted by the Bank for further processing.

9. Part I of the tenders will be opened on-line at 3.30 PM on October 12, 2021 in the presence of the authorized representative of the bidders who choose to be present. Part-II (Price bid) shall be opened of the eligible bidders on a subsequent date which will be intimated to the eligible bidders in advance.

10. The applicants/tenderers have to upload

  1. Client’s certificate as per format given in the tender from their clients for whom they have carried out “eligible works” in terms of the eligibility (Pre-qualification) criteria explained in this notice.

  2. Banker’s certificate as per format given in the tender from their banker/bankers.

The client’s certificate shall be accepted only when the same is signed by an official of the rank of Executive engineer/Superintendent Engineer or equivalent in respect of a Government/Semi Government organization or a PSU and only when they are supported by adequate proof of payment received by the contractor for the work done by him. The client’s certificate issued by the private organizations shall also accompany Tax Deducted at Source (TDS) certificates. Applications/tenders uploaded without the above certificates may be rejected. The Bank shall have the right to independently verify these certificates.

The Bank shall evaluate the said reports before processing the tenders and opening of price bid of the tenders. If any bidder is not found to possess the required eligibility for participating in the tendering process at any point of time and/or his performance reports received from his clients and/or his bankers are found unsatisfactory, the Bank reserves the right to reject his offer even after opening of Part-I of the tender. The Bank is not bound to assign any reason for doing so.

11. Any amendments / corrigendum to the tender, if any, issued in future will only be notified on the RBI Website and MSTC Website as given above.

12. The Bank is not bound to accept the lowest tender and reserves the right to accept either in full or in part any tender. The Bank also reserves the right to reject all the tenders without assigning any reason there for.

Regional Director

Mumbai :
Date :


Schedule of Tender (SOT)

Name of Work: Design, Supply, Installation, Testing and Commissioning (DSITC) of Grid Interactive SPV based 104 KWp Solar Power Plant (SPP) for RBI at Byculla Office Building, RBI Officers Quarters at BKC, RBI Officers Quarters at Kailash, Malad (East), RBI Staff Quarters at Bhandup and RBI Staff Quarters at Chembur in Mumbai
a. E-Tender NO RBI/Mumbai/Estate/79/21-22/ET/108
b. Mode Of Tender e-Procurement System
(Online Part I – Techno-Commercial Bid and
Part II – Price Bid through www.mstcecommerce.com/eprochome/rbi
c. Estimated cost of work ₹ 60 Lakhs (Rupees Sixty lakhs only)
d. Date of NIT available to parties to download
(View Tender Time)
August 26, 2021 from 05:00 PM onwards
e. Date of Starting of e-Tender for submission of on line Techno-Commercial Bid and price Bid (Start Bid Date and Time) www.mstcecommerce.com/eprochome/rbi August 26, 2021 from 05:00 PM onwards
f. last date of submission of Pre-qualification documents September 16, 2021 till 05.00 PM
g. Schedule of Off line pre-bid meeting of eligible bidders only. October 01, 2021 at 11.00 AM at Estate Office, BKC, Reserve Bank of India, Mumbai
h. Date of closing of online e-tender for submission of Techno-Commercial Bid & Price Bid (Close Bid Date and Time) October 11, 2021 till 2.00 PM
i. Date & time of opening of Part-I (i.e. Techno-Commercial Bid) October 12, 2021 from 3.30 PM onwards
j. Date and Time of Opening of Part II (Price Bid) Shall be intimated to the eligible bidders subsequently
k. Earnest Money Deposit (EMD) ₹ 1,20,000/- (Rupees One Lakh Twenty Thousand only) by NEFT, in the form of DD or Bank Guarantee from scheduled bank on or before 2:00 PM on October 11, 2021.

The DD shall be submitted in sealed cover addressed by name to Shri Ajay Michyari, Regional Director, Bandra Kurla Complex, Reserve Bank of India, Mumbai -400051 so as to reach Estate Office, BKC, Reserve Bank of India, Mumbai- 400051

NEFT Details
A/c No – 04861436223
IFSC CODE – RBIS0MBPA04
(5th & second from last digit are zero)

l. Last date of submission of EMD 1,20,000/- (Rupees One Lakh Twenty Thousand only) October 11, 2021 till 2.00 PM
m. Transaction Fees
(To be paid in consultation with MSTC preferably one day prior to the final date of submission)
Rs. 3000/- plus GST @18%
To be paid through MSTC payment Gateway/ NEFT/RTGS in favour Of MSTC Ltd.

Regional Director

Mumbai :
Date :

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PSBs to make additional provision of over ₹21,300 cr for higher family pension, NPS

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Public sector banks will have to make an additional provision of over ₹21,300 crore annually on account of revision of norms to calculate family pension and higher contribution toward National Pension System (NPS).

“Keeping in view the requirements of the Accounting Standard (AS15R) issued by the Chartered Accountants of India and also as per the Companies Accounting Rules (2006), the incremental provision towards the Family pension as per the actuarial estimate is ₹20,302.9 crore,” a note prepared for the proposal, seen by BusinessLine, said.

The note also mentioned that special dispensation will be sought from the Reserve Bank of India (RBI) to allow provisions over next five years to avoid any immediate adverse impact on the balance sheets of the banks.

On Wednesday, Financial Services Secretary Debashish Panda said the government has approved the Indian Banks’ Association’s (IBA) proposal to increase the family pension to 30 per cent of last salary drawn. In continuation of the 11th bi-partite settlement on wage revision of public sector bank employees, which was signed by the IBA with the unions on November 11 last year, there was a proposal for enhancement of family pension and also the employers’ contribution under the NPS.

According to Panda, the scheme, earlier, had slabs of 15, 20 and 30 per cent of the pay that a pensioner drew at that point of time. It was capped subject to a maximum of ₹9,284. “That was a very paltry sum and Finance Minister Nirmala Sitharaman was concerned and wanted that to be revised so that family members of bank employees get a decent amount to survive and sustain,” he said.

As on March 31, the total number of pensioners stood at around 5.66 lakh and family pensioners at over 1.55 lakh.

 

National Pension System

The system prescribes contributory pension system where originally it was decided that employees will contribute 10 per cent of their basic plus dearness allowance while a matching amount will be provided by the government employer. On December 10, 2018, it was decided that for a Central government employee, the mandatory contribution by the employer would be raised to 14 per cent from April 1, 2019. The same mechanism will now be valid for employees of public sector banks.

“Based on the feedbacks received from the banks, the additional cost on account of increased contribution will be of the order of ₹1,080 crore per annum for all the PSBs,” the note mentioned above said. This will have an impact on nearly 60 per cent (around 4.68 lakh) bank employees out of a total strength of over 7.79 lakh.

Higher payout by the employer would translate into an increase in the accumulated corpus of employees covered under NPS. This will result in greater pension payouts after retirement without any additional burden on the employee. As on date, an employee can withdraw 60 per cent of total corpus for which she/he does not have to pay any tax, while the remaining 40 per cent of the amount utilised for purchasing an annuity from the Annuity Service Provider, registered and regulated by the Insurance Regulatory and Development Authority of India (IRDAI) and empanelled by the Pension Fund Regulatory and Development Authority (PFRDA), is also tax exempt.

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Reserve Bank of India – Press Releases

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I. SUMMARY – PURCHASE RESULTS

Aggregate Amount (Face Value) notified by RBI : ₹25,000 crore
Total amount offered (Face Value) by participants : ₹72,822 crore
Total amount accepted (Face Value) by RBI : ₹25,000 crore

II. DETAILS OF PURCHASE ISSUE

Security 7.59% GS 2026 8.28% GS 2027 7.59% GS 2029 7.88% GS 2030 6.64% GS 2035
No. of offers received 76 52 89 82 267
Total amount (face value) offered (₹ in crore) 8,762 4,686 12,739 8,614 38,021
No. of offers accepted 20 14 39 29 50
Total offer amount (face value) accepted by RBI (₹ in crore) 4,496 2,105 7,622 4,376 6,401
Cut off yield (%) 5.6935 6.0700 6.3421 6.4527 6.8192
Cut off price (₹) 107.24 111.07 107.40 109.27 98.40
Weighted average yield (%) 5.7336 6.0888 6.3856 6.4629 6.8215
Weighted average price (₹) 107.08 110.97 107.13 109.20 98.38
Partial allotment % of competitive offers at cut off price NA NA NA NA 64.26

Ajit Prasad
Director   

Press Release: 2021-2022/750

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Reserve Bank of India – Press Releases

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The Reserve Bank of India will conduct a Variable Rate Reverse Repo auction on August 27, 2021, Friday, as under:

Sl. No. Notified Amount
(₹ crore)
Tenor
(day)
Window Timing Date of Reversal
1 3,00,000 13
(September 10, 2021 being a holiday)
10:30 AM to 11:00 AM September 09, 2021
(Thursday)

2. The operational guidelines for the auction as given in the Reserve Bank’s Press Release 2019-2020/1947 dated February 13, 2020 will remain the same.

(Yogesh Dayal)     
Chief General Manager

Press Release: 2021-2022/749

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Reserve Bank of India – Press Releases

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Security 7.59% GS 2026 8.28% GS 2027 7.59% GS 2029 7.88% GS 2030 6.64% GS 2035
Total amount notified (₹ in crore) Aggregate amount of ₹25,000 crore
(no security-wise notified amount)
Total amount (face value) accepted by RBI (₹ in crore) 4,496 2,105 7,622 4,376 6,401
Cut off yield (%) 5.6935 6.0700 6.3421 6.4527 6.8192
Cut off price (₹) 107.24 111.07 107.40 109.27 98.40

Detailed results will be issued shortly.

Ajit Prasad
Director   

Press Release: 2021-2022/748

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