Author: root

Benefits of PMVVY

Here are the features and benefits of PMVVY which senior citizens can get by applying for it.

Eligibility and policy term: This plan comes with a maturity period of 10 years and individuals with a minimum age of 60 years (completed) with no upper age bar can apply for the scheme.

Pension payment: If the pensioner survives during the policy duration of ten years, he or she will be entitled to a pension in arrears at the completion of each period, according to the mode specified.

Death benefit: The purchase price will be reimbursed to the beneficiary or heir if the pensioner dies during the policy period of ten years.

Maturity benefit: If the pensioner survives to the completion of the policy period of ten years the purchase price, together with the final pension installment, will be payable to him or her respectively.

Premature exit: A pensioner can make a premature exit or withdrawal during the term of the policy in exceptional situations i.e. funding for the serious illness of him or his spouse. In such circumstances, the surrender value payable shall be 98 percent of the purchase price made by the pensioner.

Loan facility: A pensioner under the scheme can also apply for a loan only after the completion of 3 years of the policy term. Upon successful loan application, he or she would get a maximum loan amount of 75% of the purchase price. The interest rate levied on the loan amount is calculated periodically and will be deducted from the policy’s pension amount. The effective interest rate shall be determined using the IRDAI-approved procedure.

Taxation: Apart from the GST exemption on the principal amount, PMVVY doesn’t provide tax benefits to senior citizens. According to LIC, the amount of Tax (GST) paid shall not be considered for the calculation of benefits payable under the plan.

Freelook period: If a subscriber is uncomfortable with the policy’s “Terms and Conditions,” he or she can surrender the product to the corporation within 15 days if purchased offline and 30 days if purchased online of acquisition, explaining the rationale for the concerns. After deducting the charges for Stamp duty and pension paid, if any, the refund amount or the purchase price provided by the policyholder would be refunded to him or her within the free look period.

Mode of pension payment: Pension payments are made monthly, quarterly, semi-annually, and annually. Pension payments would be made via NEFT or the Aadhaar Enabled Payment System. The initial or first installment of pension shall be paid after one year, six months, three months, or one month after the purchase date, according to the manner of pension payment, i.e. yearly, half-yearly, quarterly, or monthly.

Minimum and maximum pension amount

Payment of purchase price

The maximum amount of purchase price authorized to a senior person under all policies under this plan and all policies taken under Pradhan Mantri Vaya Vandana Yojana should not surpass Rs 15 lakhs. The scheme can be adopted with a one-time payment of the purchase price. The pensioner can select either the pension amount or the purchase price. The following are the minimum and maximum purchase prices under various types of pension:

Sample pension rates

According to LIC, the pension rates for Rs 1000/- purchase price are as follows for different modes of pension payment:

4 PSU Bank Stocks That Gave Over 100% Returns

J & K Bank

Jammu and Kashmir Bank Ltd. is an Indian government-owned scheduled banking and financial services corporation based in Jammu and Kashmir. It was founded on October 1, 1938, by Hari Singh, the King of Jammu and Kashmir, it has a market cap of Rs 2,732.52 Crore. The Ministry of Finance, Government of India, owns it. Last month, Jammu & Kashmir Bank said that its board of directors had authorised a proposal to raise up to Rs 150 crore by issuing shares to employees.

Stock lost -19.87 percent over three years, compared to 46.55 percent for the Nifty Smallcap 100. But it gave whoophing return of over 100% in the past year. Since the last three years, the corporation has continuously maintained a NIM of 3.59 percent. CASA currently has 53.66 percent of all deposits. The bank has a poor track record in terms of return on assets (ROA). The three-year average ROA is -0.12 percent. Over the last three years, the company has had a low ROE of -2.70 percent.

Indian Bank

Indian Bank is a financial service and banking corporation controlled by the Indian government. It is owned by the Government of India’s Ministry of Finance, which was founded in 1907 and is based in Chennai, India. Annual sales growth of 84.61 percent surpassed the company’s three-year CAGR of 32.33 percent. CASA currently has 42.30 percent of all deposits.

Over the last three years, the company has grown its profits by 33.64 percent. The stock returned -56.21 percent over three years, compared to 50.8 percent for the Nifty Midcap 100. In the past year, stock returned over 129% to its investors.

Indian Overseas Bank

The Indian Overseas Bank is a prominent government-owned bank in India. It is owned by the Ministry of Finance, Government of India, and has roughly 3,400 domestic branches, 6 overseas branches, and a representative office in Chennai, India. The stock returned 78.83 percent over three years, compared to 41.64 percent for the Nifty 100. CASA currently has 40.26 percent of all deposits. The bank has a poor track record in terms of return on assets (ROA).

The three-year average ROA is -1.51 percent. Over the last three years, the company has had a dismal ROE of -28.53 percent. It is a banking company having a market cap of Rs 46,310.91 Crore. e most recent financial year, the Gross NPA and Net NPA were 14.78 percent and 5.44 percent, respectively. In the past year, the stock has generated return of 124%, which is good when compared to its peers.

State Bank of India

The State Bank of India, based in Mumbai, Maharashtra, is an Indian multinational public sector bank and financial services statutory entity. SBI is the world’s 43rd largest bank and the only Indian bank in the Fortune Global 500 list of the world’s largest firms for 2020, ranking 221st.

In comparison to the Nifty 100, which returned 41.64 percent over three years, the stock returned 58.46 percent. CASA currently holds 45.40 percent of all deposits.

Over the last three years, the company has seen a 72.32 percent increase in profit. The bank has a poor track record in terms of return on assets (ROA). The three-year average ROA is 0.29 percent.

Over the last three years, the company has had a low ROE of 5.64 percent. The stock has returned 119% percent over the last year, which is great when compared to its peers.

Disclaimer

Please keep in mind that past results may not be indicative of future performance. Different types of investments include different levels of risk, and there is no guarantee that any single investment, investment strategy, or product mentioned in this article will perform well in the future. When it comes to stock selection, historical returns might be a useful metric. Returns, on the other hand, should not be the primary consideration for an investor. Investing in stocks is risky and investors need to be cautious. Neither Greynium Information Technologies Pvt ltd nor the author would be responsible for any losses incurred based on decisions made from the article.

Mastek

Sharekhan believes that Mastek is expected to clock an earnings CAGR of 24% over FY2021-FY2024E, led by strong growth in the UK public sector. According to the brokerage the company delivered a very strong set of results, with better-than-expected performance on all fronts.

Sharekhan says that Mastek would leverage Evosys clientele for cross-sell opportunities and its management remains confident that the UK private sector’s growth rate would match the company’s growth rate in coming years.

“Given huge opportunities in the cloud migration space, healthy deal pipeline, and opportunity in SAP compete market, we believe that Evosys would report another year of strong growth in FY2022. With an improvement in average deal sizes, strong deal wins and higher spends on digital and cloud transformation, we expect Mastek is likely deliver strong revenue growth of 25.8% y-o-y in FY2022,” Sharekhan has said.

“Given a healthy balance sheet and strong order bookings, we maintain a Buy on Mastek with a revised price target of Rs 2,950,” the brokerage adds.

Gland Pharma

Sharekhan also has a buy call on the stock of Gland Pharma. According to the brokerage, the company reported a strong performance for Q1FY22 and results were ahead of estimates. The sales and PAT reported a growth of 30.5% and 12% YoY respectively.

According to Sharekhan, new capacities and ramp up in Covid drugs were key positives for the company.

“Strong growth in the RoW and India markets, double digit growth in the Core markets and Vaccine led opportunities would be the key growth drivers for company. Strong domain expertise and growth prospects, sturdy earnings track record and strong financials are the key positives for Gland Pharma,” the brokerage has said.

“At the current market price, the stock trades at 47.3x/30.8x its FY2022E/FY2023E EPS. Strong domain expertise and growth prospects, sturdy earnings track record, and strong financials are key positives for Gland. We retain our Buy recommendation on the stock with a revised target price of Rs. 4,400,” the brokerage has said.

Buy Bajaj Finance stock, says Sharekhan

Bajaj Finance is among the top NBFCs in the country with a strong presence in retail lending. Sharekhan believes the business transformation steps that are underway for Bajaj Finance, would not only be positive for business sustainability, scalability, but also position Bajaj Finance to take advantage of a strong economic upturn expected in FY2022E.

Sharekhan says that the company is armed with factors such as a strong balance sheet, robust risk management, and prudent management. “Bajaj Finance is a strong franchise for the long term and is well-placed to ride over medium-term challenges. We maintain our Buy rating on the stock with an unchanged price target of Rs. 7,000,” the brokerage has said in its latest report.

Bajaj Finance shares were last trading at Rs 6,100 on the National Stock Exchange. This means there is a potential upside of at least 15% from the current levels.

Disclaimer

Investing in stocks is risky and investors need to be cautious. Neither Greynium Information Technologies Pvt ltd nor the author, nor the brokerage house mentioned would be responsible for any losses incurred based on decisions made from the article. Investors are also advised caution as the markets are now at a record high. Please consult a professional advisor and avoid investing lumpsum amounts.