Mumbai: The Yes Bank management and other executives on Tuesday relocated to the bank’s new headquarters at Santacruz in suburban Mumbai, which earlier housed Anil Dhirubhai Ambani Group’s headquarters. The bank has begun the process of vacating 10 floors of its rented premises in Indiabulls Finance Centre and shifting to the new premises, which is now called Yes Bank House.
“We are vacating the premises floor by floor and the complete transition will happen over a period of two months,” said Yes Bank MD & CEO Prashant Kumar. He said every month the bank will bring down its rental costs. Last week, the bank’s board approved the shifting of the registered office within the city.
Broking firm, ICICI Direct is bullish on the stock of Suven Pharma and has set a price target of Rs 560 on the stock, which is a good 17% higher from the current levels of Rs 480.
According to the ICICI Direct report, guidance for FY22 suggests a topline growth of 10-15% overall. For Contract Research and Manufacturing Services Pharma (CRAMS), the growth would be 10-15%, while for CRAMS specialty chemicals it would be 5%, while for formulations – 10-20%. Margins to be maintained between 35% and 40% minimum
Suven’s topline performance was in-line with ICICI Direct’s estimates whereas profitability was lower due to lower-than-expected gross margins.
Going ahead, the company hopes to achieve 10-15% growth in FY22 based on order book position. “Cautious guidance notwithstanding, we continue to emphasise on the strong execution capability and focused approach without the burden of success/failure of the innovative pipeline (now part of Suven Life Sciences). We maintain BUY with a target price of Rs 560,” ICICI Direct has said in its report. A good smallcap stock, as pharma shares are likely to be more resilient in case of market shocks.
Polycab
This is another stock from the smallcap space that can be bought today as the stock has been grabbing attention. The company manufactures a slew of products ranging from cables and wires, fans, lighting, switches, switchgear, pumps, appliances etc. Sharekhan has a buy recommendation on the stock with a price target of Rs 2,050, as it sees good movement from the current market price of Rs 1,800.
The broking firm sees strong manufacturing capabilities, strong distribution and leadership in categories has a big positive.
“The stock is currently trading at a price to earnings multiple of 23 time and 19 times its FY2023E/ FY2024E EPS. With a consistent improvement in balance sheet, market share gains and growth acceleration, Project Leap remains constructive in medium to long term growth outlook. Hence, we retain Buy on the stock with a revised target price of Rs. 2050,” the broking form has said. The stock of Polycab was last seen trading at Rs 1,822 on the NSE.
Mphasis
Mphasis is a leading IT company in India. This is another small cap stock that has a buy rating from brokerage firm Motilal Oswal.
Impressive deal wins in FY21 and a healthy deal pipeline is likely to drive near term growth. While the overhang persists in the DXC business (15% of revenue in FY21), strong traction in the Direct International business should continue to drive overall performance.
The management’s ability to defend margin despite supply side pressures is a key positive. The ability to win multiple large Digital transformation deals proactively and under vendor consolidation scenarios indicates strength in its sales and delivery capabilities.
Higher exposure to largely stable verticals (Banking, Financial Services and Insurance – 60% of revenue) should help mitigate risks to some extent. The stock is currently trading 21.5 times FY23E EPS. We value the stock 22 times FY23E EPS. Maintain Buy.
The above mentioned small cap stocks have been picked from brokerage reports. The author, the brokerage or Greynium Information Technologies do not take any responsibility for losses that maybe incurred. The above article is for informational purposes only.
The regulator has proposed to provide a fact sheet on pricing to the borrower by the lending institutions for maintaining transparency.
The Reserve Bank of India (RBI) has proposed a slew of measures to protect micro-finance borrowers from over-indebtedness and enable competitive forces to bring down the interest rates. In a consultative document released on Monday, RBI has proposed to remove the ceiling on interest rates for micro-finance lenders, among other key measures.
Currently, the margins for NBFC MFIs are capped at 12% over and above its cost of funds. Similarly, RBI has suggested not to charge any pre-payment penalty from borrowers. It said there should be no requirement of collateral for giving loans. The Reserve Bank has advocated a greater flexibility in the frequency of repayments for all micro-finance loans. Among other key measures, RBI has proposed to link the loan amount to household income in terms of debt-income ratio.
“Considering the low savings of these households, at least half of their income should be available to meet their other expenses,” RBI said in its consultative document on micro-finance. “Existing loans to the households which are not complying with the limit of 50% of the household income, shall be allowed to mature,” the regulator further said. It has also proposed to do away with two lender exposure rules for a borrower. Currently, not more than two NBFC-MFIs can lend to the same borrower as per RBI’s regulations.
The central bank also observed that all lenders tend to charge high interest rates in line with rates charged by NBFC-MFIs. Ultimately, the borrowers are deprived of the benefits from enhanced competition as well as economy of scale, even in a falling interest rate regime.
The prescribed ceiling on lending rate for NBFC-MFIs has had an unintended consequence of not allowing competition to play out and most lenders have similar levels of pricing.
The regulator has proposed to provide a fact sheet on pricing to the borrower by the lending institutions for maintaining transparency.
The suggested framework in the consultative document is intended to be made applicable to the micro-finance loans provided by all entities regulated by the Reserve Bank. It is aimed at protecting borrowers of such loans from over-indebtedness as well as enabling competitive forces to bring down the interest rates by empowering the borrowers to make an informed decision, RBI said.
The comments and suggestions on the consultative document can be sent by July 31, 2021.
The capital adequacy ratio (CRAR) stood at 15.32% that includes capital inclusion of Rs 4,100 crore by the Centre in FY21.
Chennai-based public sector lender Indian Overseas Bank (IOB) on Monday a reported a 143% jump in its net profit to Rs 350 crore for the fourth quarter of FY21, compared with Rs 144 crore in the corresponding quarter of the last fiscal year. The bank has reported a total income of Rs 6,074 crore for Q4 as against Rs 5,537 crore in the same quarter previous financial year, registering 9.7% growth. The board of directors has approved a capital raising plan to the tune of Rs 2,000 crore. MD & CEO Partha Pratim Sengupta told media persons through a virtual meet that there has been good improvement, both QoQ and YoY, on all financial parameters.
“ If you look at the FY21 earnings performance, I would say it is a red-letter day for the bank, it has achieved an annual profit after the year 2014. In quarterly results, we have been making steady progress since March 2020, after making profit post being in the red continuously for 18 quarters,” he said.
Increase in other income, decrease in cost of deposits and profit from treasury operations have contributed to the profitability of the bank in the fourth quarter, according to him.IOB, which has been under prompt corrective action (PCA), has approached banking regulator RBI a couple weeks ago, with the plea to release the lender form the list of PCA. “We have fulfilled all the requirements which qualify the bank to come out of PCA. Now, it is up to the regulator to take a call on it,” Sengupta said.
The bank had been planing to come out of PCA by focusing on recovery, low-cost deposits and less capital consuming advances. He said the bank’s asset quality has improved significantly. Net NPA stood at 3.58%, which is within prescribed RBI guidelines.
During the quarter GNPA reduced by Rs 430 crore. GNPA ratios reduced to 11.69% from 14.78%, QoQ. The provision coverage ratio improved to 90.34%. The bank has made a recovery of Rs 3,934 crore in Q4 as against Rs 2,377 crore in the corresponding quarter last fiscal year. The bank’s interest income stood lower at Rs 4, 057 crore for the quarter as against Rs 4,442 crore while other income almost doubled to Rs 2,016 crore as against Rs 1,095 crore. The capital adequacy ratio (CRAR) stood at 15.32% that includes capital inclusion of Rs 4,100 crore by the Centre in FY21.
Reserve Bank of India, in the public interest, had issued directions to Dr.Shivajirao Patil Nilangekar UCBL, Nilanga, District Latur, Maharashtra in exercise of powers vested in it under sub-section (1) of Section 35A read with Section 56 of the Banking Regulation Act, 1949 (AACS) from the close of business on February 16, 2019. These directions were modified from time to time, the validity of which was last extended upto June 14, 2021. These directions shall continue to apply to the bank for a further period of one month from June 15, 2021 to July 14, 2021, subject to review. The Directions stipulate certain restrictions and / or ceiling on withdrawal / acceptance of deposits. A copy of Directions is displayed at the bank’s premises for interested members of public to peruse. Reserve Bank of India may consider modifications of the Directions depending upon the circumstances. The issue of Directions should not per se be construed as cancellation of banking license by the Reserve Bank of India. The bank will continue to undertake banking business with restrictions till its financial position improves.
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.
It has been over a week now since the launch of the new e-filing portal 2.0 but still a lot of functionalities on the portal are not working and due to which taxpayers are stuck with the various tax related processes. This is even as the finance minister Nirmala Sitharaman during the last week tagged Infosys and Nandan Nilekani in a tweet, asking them to not let down the country’s taxpayers in respect of the quality of service being extended.
25 Common Errors Being Faced By Taxpayers On The New Income Tax Portal 2.0
Here is the list of 25 common errors faced by taxpayers on the E-filing 2.0 Portal:
1. DSC not being re-registered: The department asked taxpayers to re-register their digital signatures afresh beginning June 7 as the migration of the previously loaded DSC for the taxpayer could not happen owing to concerns. Nonetheless, due to glitches, DSC re-registration or updation is not happening at the site.
2. Newly incorporated companies or firm not able to register themselves: This to create their e-filing account.
3. Forget password option not working at various places
4. OTP for the various tax related transactions not being received on the registered mobile number of the taxpayer
5. ITR or Income tax returns for the different financial years cannot be downloaded in PDF format
6. Acknowledgments by the department in respect of the filed ITR cannot be downloaded
7. The new e-filing 2.0 fails to auto-populate DIN or Director Identification number
8. Challan numbers not getting validated
9. TDS returns cannot be filed
10. Unable to file 15CA/15CB i.e. in respect of foreign remittance and for the same CBDT has allowed some relaxations
11. The tab for e-proceedings not functional
12. Grievances filed with the portal are deleted even before resolution.
13. Previous grievances registered with the portal are not showing
14. ITR return for fy 2021( AY 2021-22) cannot be filed
15. Previous outstanding demands not showing
16. Taxpayer accounts over the portal are getting locked, if the login fails on account of non-operatability of the portal
17. Refund reissue request cannot be made
18. Form 26AS cannot be viewed
19. PAN data mismatch error is coming when there is absolutely no error
20. PAN number not showing as valid
21. JSON utility not available: For the AY 2022, the department has come up with the JSON utility that replaces the earlier Excel and Java edition of ITR utilities.
22. When filing ITR verification on selecting ‘Self’ in capacity, name is getting disappeared and shown in validation errors.
23. UDIN (Unique Document Identification number) updation for last month audit as well as other certifications also not possible via the new interface
24. Rectification option for ITRs not available
25. Return processed in March 2021 now is being shown as ‘under processing’
GoodReturns.in
For investment related articles, business news and mutual fund advise
Allow Notifications
You have already subscribed
Story first published: Monday, June 14, 2021, 22:37 [IST]
The Reserve Bank of India (RBI) has clarified that its “one year look back” stipulation introduced in its April 27 circular on appointment of statutory auditors in public sector banks, Urban Cooperative Banks and NBFCs will only be applicable prospectively, that is, from financial year 2022-23.
This look back stipulation was introduced to ensure that the audit firm had not provided any non-audit services to the Group entities during the 12 months period before the audit firm was appointed in the bank or NBFC concerned.
RBI clarifies
The RBI has now, in the Frequently Asked Questions (FAQ) on the April 27 circular, clarified that this look-back condition will not apply for auditor appointments for FY 2021-22.
In another significant clarification, the RBI has modified the earlier April 27 prescribed blanket kind of restriction on appointment of audit firms as auditors of banks and NBFCs in situations where the concerned audit firm had provided audit or non-audit service to any group entity of that bank or NBFC.
Cap on assignments
While earlier this norm was seen to be applicable across the Group, the RBI has now in the FAQ made it clear that this restriction does not apply to all group entities, but applies only to entities in the Group that are RBI regulated.
Also, the central bank has in the ‘Frequently Asked Questions’ issued on its April 27 circular made it clear that the cap (upper limit) on number of assignments an audit firm can undertake in a year in respect of banks, UCBs and NBFCs are applicable for audit of all RBI regulated entities, irrespective of their asset size. It maybe recalled that April 27 circular of RBI had stipulated that an audit firm cannot do audit of more than four commercial banks, eight NBFCs and eight UCBs in a year.
Experts’ speak
Jamil Khatri, Partner, BSR& Co LLP, said the concerns of the industry in the areas of the short rotation period, the requirements for joint audit and the cap on the number of audits that can be done by an audit firm, have not been addressed in the current set of clarifications.
Amarjit Chopra, former CA Institute President, said that RBI’s clarification on the one year look back norm and also on the group entity aspect is quite pragmatic and will provide flexibility in the appointment of auditors.
Ashok Haldia, former Secretary of the CA Institute, said that the FAQ has opened the door for an audit firm engaged in audit/non-audit work of group entity (not regulated by RBI) to be appointed as statutory auditor of any of the RBI regulated entity within the group. However, the board/audit committee may find it challenging to assess and take responsibility that there is no conflict of interest and independence of auditor is ensured, as required in FAQ, as in most cases it may be difficult to disentangle explicit and implicit relationship that exists between group entities. These may find it difficult to justify in case doubt arises in future, he added.
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.
Please refer to the captioned RFP issued through MSTC e-commerce portal on May 17, 2021 (Event No. RBI/Central Office/DIT/22/20-21/ET/759) and notification published on the Bank’s website www.rbi.org.in on May 18, 2021 inviting application from eligible vendors for renewal of Annual Maintenance Contract (AMC) and Facility Management Service (FMS) for Computer Hardware and other Peripherals at Reserve Bank of India through e-tender route. The Commercial Bid Opening of the RFP was scheduled for June 14, 2021 (Monday) at 3.30 PM.
2. In this regard, it is to inform that the Commercial Bid Opening has been re-scheduled on June 18, 2021 (Friday) at 12:00 PM. The corrigendum to this effect has also been uploaded on MSTC e-commerce web portal.
Chief General Manager Department of Information Technology Date: June 14, 2021
Financial Express is now on Telegram. 
