Get Bank IFSC & MICR codes here.
[ad_1]
|
In the underwriting auctions conducted on June 11, 2021 for Additional Competitive Underwriting (ACU) of the undernoted Government securities, the Reserve Bank of India has set the cut-off rates for underwriting commission payable to Primary Dealers as given below:
Ajit Prasad Press Release: 2021-2022/351 |
||||||||||||||||||||||||||||||||||||
[ad_2]
[ad_1]
A hit to the collection efficiency of microfinance institutions (NBFC-MFIs) owing to protracted Covid-19 curbs will increase asset-quality pressures in the sector, with loans in arrears for over 30 days likely to cross the surge in the aftermath of demonetisation (DeMon), cautioned CRISIL Ratings.
With loans in arrears for over 30 days – or the 30+ portfolio at risk (PAR) mounting, the MFI sector is expected to resort to restructuring of loans to a larger extent than last fiscal as this is perhaps the only practical option to support borrowers and not let accounts slip into the non-performing bucket, the credit rating agency said in a note.
CRISIL Rating assessed that the 30+ PAR could rise to 14-16 per cent of portfolio this month from a recent low of 6-7 per cent in March. This number had surged to 11.7 per cent in March 2017, in the aftermath of demonetisation.
“But unlike last fiscal, when loan moratorium helped keep delinquency increases at bay, more MFIs are likely to opt for permitting restructuring under the Reserve Bank of India (RBI)’s Resolution Framework 2.0 announced last month, and continue with higher provisioning,” CRISIL Ratings said.
Krishnan Sitaraman, Senior Director and Deputy Chief Ratings Officer, CRISIL Ratings, observed that the medical impact of the second wave of the pandemic has been much worse than the first wave, and afflictions have percolated to the rural areas too.
“Ground-level infrastructural and operational challenges, as well as restrictions on movement of people, have impinged on the MFI sector’s collection efficiency.
“Though overall collection efficiency is expected at 75-80 per cent in May, compared to 90-95 per cent in March, pressure on asset quality would be higher as borrowers do not have a blanket moratorium this time, while their cash flows have been impacted by the second wave,” opined Sitaraman.
Considering the current ground-level challenges, the note emphasised that encouraging collections through the digital mode is imperative for MFIs – the way they have transitioned to cashless disbursements.
With 30+ PAR mounting, CRISIL Ratings is of the view that the demand under restructuring 2.0 could be in high-single digits compared to 1-2 per cent seen during restructuring 1.0 for the overall sector.
“Yet, the risk of protracted delinquencies eventually leading to credit costs staying elevated, remains.
“For one, borrowers’ track record of repayment ability is yet to be established for already restructured portfolios. Two, lack of prudence is also a possibility,” the note said.
CRISIL estimates that close to half of the total assets under management (AUM) of NBFC-MFIs of about ₹80,000 crore as on March 2021, were generated from December 2020 onwards.
Given the relatively vulnerable credit profiles of borrowers and the fact that local economic activity is yet to normalise, sustainability of collections, especially for the recent disbursements, will be the key monitorable in the coming quarters, it added.
Ajit Velonie, Director, CRISIL Ratings, said: “To be sure, NBFC-MFIs have created provisions (including a special Covid-19 provision in the fourth quarter last fiscal) estimated at 3-5 per cent of the AUM as on March 2021.
“Considering the likely rise in delinquencies and restructuring, higher-than-normal provisioning is warranted even in the first half of this fiscal to absorb the shocks.”
NBFC-MFIs with adequate liquidity, lower leverage, or those backed by strong parentage, will be better placed to withstand the current situation, he added.
According to CRISIL Ratings, large MFIs rated by it are either backed by strong parentage with access to capital, or have comfortable capitalisation with gearing at about 3-3.5 times, which should allow them to withstand the stress.
They also have the liquidity to cover over two months of debt repayments – even after assuming nil collections – because disbursements have been low, too, which has helped conserve cash.
Nevertheless, the trajectory of recovery, access to incremental funding and capital position will bear watching, especially of the smaller MFIs, the agency said.
[ad_2]
[ad_1]
ED has issued Show Cause Notice to WazirX Crypto-currency Exchange for contravention of FEMA, 1999 for transaction… https://t.co/dcU8XlOugB
— ED (@dir_ed) 1623397497000
ED had initiated FEMA investigation into Chinese owned illegal online betting applications and during the course of the investigation ED observed that the accused Chinese nationals had laundered proceeds of crime worth Rs 57 crore approximately by converting the INR deposits into crypto-currency Tether (USDT) and then transferring the same to Binance (exchange registered in Cayman Islands) Wallets based on instructions received from abroad.
[ad_2]
[ad_1]
Canara Bank said on Friday the IFSC codes of the erstwhile Syndicate bank branches will change with effect from July 1, 2021.
Customers have to use the new CANARA IFSC for receiving funds through NEFT/RTGS/IMPS, it said in a statement.
Also read: Canara Bank donates 50 oxygen concentrators
The new IFSC can be obtained through URL canarabank.com/IFSC.html or accessing the website of Canara Bank or by visiting any Canara Bank Branch.
Customers of the erstwhile (e)-Syndicate Bank will have to get new cheque books with changed IFSC & MICR codes, it said.
Swift code of erstwhile Syndicate Bank (SYNBINBBXXX) which is used for sending or receiving SWIFT messages for Foreign Exchange transactions shall be discontinued with effect from July 1, 2021.
“All our customers are advised to use the swift code (CNRBINBBFD) for any of their Foreign Exchange needs,” the statement added.
Canara Bank is the fourth-largest public sector bank in the country after its amalgamation with Syndicate Bank in April 2020, it was noted.
[ad_2]
[ad_1]
|
RBI/2021-22/53 June 11, 2021 The Chairman / Managing Director / Chief Executive Officer of: Madam/Dear Sir, Risk Based Internal Audit (RBIA) Please refer to the circular Ref. No. DoS.CO.PPG/SEC.05/11.01.005/2020-21 dated February 03, 2021 on the captioned subject. 2. On a review, it has been decided that the provisions of the aforesaid circular shall be applicable to Housing Finance Companies (HFCs) also, as stipulated below:
3. The above-mentioned entities shall put in place a RBIA framework by June 30, 2022, in accordance with the provisions of the aforesaid circular. Yours faithfully, (Ajay Kumar Choudhary) |
[ad_2]
[ad_1]
Investment
oi-Roshni Agarwal
Shares of Coal India in intra-day trade on Friday (June 11, 2021) hit a fresh 52-week high of Rs. 165 per share on the NSE, gaining over 5 percent. The gains in the stock price of the state owned entity come on the back of hopes of improved earnings in the near term. The scrip last hit its 52-week high price of Rs. 162.95 on February 26 this year.
Owing to the sharp run up in stock price for the last two weeks, the stock of Coal India in today’s trade reclaimed a market cap of Rs. 1 trillion. At the time of writing this copy, the stock trade at Rs. 161 per share on the NSE and commanded a market cap of Rs. 99,158 crore.
Performance of Coal India shares over a time period
| Time period | % gains or losses | Sensex return |
|---|---|---|
| YTD | 18.89 | 9.87 |
| 1-year performance | 16.95 | 56.43 |
| 3-year performance | -44 | 47.85 |
Motilal Oswal’s take on the Coal India scrip
In a stock update, analysts at the brokerage firm said, “With a recovery in demand, e-auction premiums and realisations have shown signs of an improvement. We expect this to eventually seep in (given some lag between allocation and dispatches) and improve as inventory levels at Coal’s mines reduce. The global thermal coal prices have been on an uptrend, which is encouraging for e-auction realizations”.
With improving offtake and realisations, we see sharp operating leverage coming into play. Notwithstanding any further negative shocks, we expect Coal India’s profitability to recover sharply in FY22 (+29 per cent YoY). Recovery in demand and funds from the Atmanirbhar scheme should help alleviate concerns on stretched receivables, the brokerage firm added.
Should You Continue To Hold Coal India Shares?
Technically also, the scrip of Coal India has shown trend reversal on chart for the very first time since 2016 (i.e. after a gap of 5 years). Experts are of the view that the stock can very easily hit Rs. 200- 210 in 1.5 to 2 months time, implying an upside of 27%.
Other reasons that advocate holding the scrip of Coal India:
• Highly efficient management with a ROE of 38.9%
• Low debt to equity ratio of -0.41 times
• The stock is in a bullish zone technically. Trend has improved from mildly bullish on June 7. A host of factors for the scrip are bullish, including MACD, KST and Bollinger Band.
• The company has delivered negative results for the last six consecutive quarters
• Institutional holdings remain high in the scrip at 28.4%
Disclaimer: The views and investment tips expressed by authors or employees of Greynium Information Technologies, should not be construed as investment advise to buy or sell stocks, gold, currency or other commodities. Investors should certainly not take any trading and investment decision based only on information discussed on GoodReturns.in We are not a qualified financial advisor and any information herein is not investment advice. It is informational in nature. All readers and investors should note that neither Greynium nor the author of the articles, would be responsible for any decision taken based on these articles. Please do consult a professional advisor.
GoodReturns.in
[ad_2]
[ad_1]
The subscriber must first select one PFM from the below list:
The National Pension System (NPS) gives investors two options i.e. Auto Choice and Active Choice for investing in four asset classes: equities, government securities, corporate debt, and alternative investment funds (AIFs).
Based on your risk behaviour and personal preferences, you can allocate the funds according to your choice. The PFM, Asset Class, and per cent of allocation in each scheme of the PFM can be specified by the subscriber according to his or her choice. Under this option, there are four asset classes: equity, corporate debt, government bonds, and alternative investment funds, from which the allocation must be stated under a single PFM.
NPS subscribers can choose multiple Asset Class under a single PFM using the active choice option, as shown below:
The maximum allowed equity investment will be determined by the equity allocation matrix described below. The equity allocation will go down according to the subscriber’s age.
| Age (years) | Max. Equity Allocation |
|---|---|
| Up to 50 | 75% |
| 51 | 72.50% |
| 52 | 70% |
| 53 | 67.50% |
| 54 | 65% |
| 55 | 62.50% |
| 56 | 60% |
| 57 | 57.50% |
| 58 | 55% |
| 59 | 52.50% |
| 60 & above | 50% |
| Source: npscra.nsdl.co.in |
NPS provides another option for members who have less exposure to equity investments. In case of less asset allocation knowledge, a subscriber can select the Auto Choice option. Under this option, investments will be made in a life-cycle fund. A predefined portfolio will decide the portion of contribution invested throughout three asset classes in this option. At the earliest age of registration (18 years), the auto choice will include investing 50% of pension money in E Class, 30% in C Class, and 20% in G Class. Under this choice, the CRA system will select the scheme as well as the allocation ratio depending on the age of the Subscriber at the time of registration. Individuals’ presence in equity and corporate debt appears to decline as they become older. There are three alternative alternatives accessible inside ‘Auto Choice’ based on the risk tolerance of the Subscriber – Aggressive, Moderate, and Conservative. The following funds are described in-depth:
This Life cycle fund allows for an equity investment cap of 75% of total assets. The equity investment exposure begins at 75% till the age of 35 and subsequently decreases according to the subscriber’s age.
| Age | Asset Class E | Asset Class C | Asset Class G |
|---|---|---|---|
| Up to 35 years | 75 | 10 | 15 |
| 36 years | 71 | 11 | 18 |
| 37 years | 67 | 12 | 21 |
| 38 years | 63 | 13 | 24 |
| 39 years | 59 | 14 | 27 |
| 40 years | 55 | 15 | 30 |
| 41 years | 51 | 16 | 33 |
| 42 years | 47 | 17 | 36 |
| 43 years | 43 | 18 | 39 |
| 44 years | 39 | 19 | 42 |
| 45 years | 35 | 20 | 45 |
| 46 years | 32 | 20 | 48 |
| 47 years | 29 | 20 | 51 |
| 48 years | 26 | 20 | 54 |
| 49 years | 23 | 20 | 57 |
| 50 years | 20 | 20 | 60 |
| 51 years | 19 | 18 | 63 |
| 52 years | 18 | 16 | 66 |
| 53 years | 17 | 14 | 69 |
| 54 years | 16 | 12 | 72 |
| 55 years & above | 15 | 10 | 75 |
This Life cycle fund allows for an equity investment cap of 50% of total assets. The equity investment exposure begins at 50% till the subscriber is 35 years old and subsequently decreases as the subscriber’s age increases.
| Age | Asset Class E | Asset Class C | Asset Class G |
|---|---|---|---|
| Up to 35 years | 50 | 30 | 20 |
| 36 years | 48 | 29 | 23 |
| 37 years | 46 | 28 | 26 |
| 38 years | 44 | 27 | 29 |
| 39 years | 42 | 26 | 32 |
| 40 years | 40 | 25 | 35 |
| 41 years | 38 | 24 | 38 |
| 42 years | 36 | 23 | 41 |
| 43 years | 34 | 22 | 44 |
| 44 years | 32 | 21 | 47 |
| 45 years | 30 | 20 | 50 |
| 46 years | 28 | 19 | 53 |
| 47 years | 26 | 18 | 56 |
| 48 years | 24 | 17 | 59 |
| 49 years | 22 | 16 | 62 |
| 50 years | 20 | 15 | 65 |
| 51 years | 18 | 14 | 68 |
| 52 years | 16 | 13 | 71 |
| 53 years | 14 | 12 | 74 |
| 54 years | 12 | 11 | 77 |
| 55 years & above | 10 | 10 | 80 |
This Life cycle fund allows for an equity investment maximum of 25% of total assets. The equity investment exposure begins at 25% till the age of 35 and subsequently decreases as the subscriber’s age increases.
| Age | Asset Class E | Asset Class C | Asset Class G |
|---|---|---|---|
| Up to 35 years | 25 | 45 | 30 |
| 36 years | 24 | 43 | 33 |
| 37 years | 23 | 41 | 36 |
| 38 years | 22 | 39 | 39 |
| 39 years | 21 | 37 | 42 |
| 40 years | 20 | 35 | 45 |
| 41 years | 19 | 33 | 48 |
| 42 years | 18 | 31 | 51 |
| 43 years | 17 | 29 | 54 |
| 44 years | 16 | 27 | 57 |
| 45 years | 15 | 25 | 60 |
| 46 years | 14 | 23 | 63 |
| 47 years | 13 | 21 | 66 |
| 48 years | 12 | 19 | 69 |
| 49 years | 11 | 17 | 72 |
| 50 years | 10 | 15 | 75 |
| 51 years | 9 | 13 | 78 |
| 52 years | 8 | 11 | 81 |
| 53 years | 7 | 9 | 84 |
| 54 years | 6 | 7 | 87 |
| 55 years & above | 5 | 5 | 90 |
To change your Auto or Active Choice option under NPS, you can follow the steps listed below:
[ad_2]
[ad_1]
|
The Reserve Bank of India (RBI) has extended the Directions issued to the People’s Co-operative Bank Limited, Kanpur (Uttar Pradesh) for a further period of three months from June 11, 2021 to September 10, 2021, subject to review. The bank has been under directions since June 10, 2020 vide directive DoS.CO.UCBs-North/D-1/12.28.059/2019-20 dated June 09, 2020 issued under Section 35A of the Banking Regulation Act, 1949 (AACS). The validity of the directive, which was last extended up to June 10, 2021 has further been extended for a period of three months from June 11, 2021 to September 10, 2021 vide directive No.DOR.MON.D-12/12.28.059/2021-22 dated June 08, 2021, subject to review. A copy of the directive dated June 08, 2021 is displayed at the bank’s premises for the perusal of public. The modification of the directive by the Reserve Bank should per se not be construed as improvement or deterioration in the financial position of the bank. The Reserve Bank may consider modifications of the directive depending upon circumstances. (Yogesh Dayal) Press Release: 2021-2022/350 |
[ad_2]
[ad_1]
Loans of below Rs 25,000 have grown 23 times since 2017, according to a joint report by Transunion CIBIL and Google.
The report identifies the significance of small ticket less than or equal to Rs 25,000 loans, characterized by searches for “phone on loan”, “laptop on EMI“, and “mahila loan 30,000”.
The share of these loan disbursals amongst all personal loans has gone up from 10 per cent in 2017 to 60 per cent in 2020.
With disbursal speed and convenience being the hallmarks of these loans, the digital-first sellers have the largest share in this category with 97 per cent of all personal loans disbursed by them being under Rs 25,000.
According to TU Cibil in 2020, 38% of loans disbursed to the ‘prime’ credit tier was through fintech NBFCs (non-banking financial companies).
The data shows that those who avail small loans are not less creditworthy.
Additionally, these fintech NBFCs no longer have only ‘urban youth’ as their primary audience — 70% of disbursals are outside tier-1, with 78% of customers being millennials (between 25-45 years of age).
The shift is set to accelerate as reflected by online trends which show that searches outside cities are growing 2.5 times faster as compared to cities.
Searches for loans grew the most in tier-3 cities at 47%, followed by tier-2 (32%) and tier-4 (28%). Indian credit industry stood at $613 billion (Rs 44 lakh crore), which reflects an 18% compounded annual growth rate (CAGR) since 2017. While home loans at $290 billion (Rs 21 lakh crore) form the largest chunk, loan against property and business loans are growing the fastest.
Who is the new borrower?
In 2020, 49 per cent of first-time borrowers were less than 30 years old and 71 per cent were based in non-metro locations, while 24 per cent were women, according to a joint report by Transunion CIBIL and Google titled “Credit Distributed”.
Further, these profiles vary when analyzed at credit product level based on credit appetite, credit experience, credit discipline, and channel of consumption, and have made segmentation increasingly nuanced and complex.
Overall, growth in searches for car loans between the two halves of 2020 grew the fastest at 55 per cent with home loans following with 22 per cent growth.
Loyalty factor pays for fintech NBFCs
Small loan borrowers demonstrate higher loyalty with 42X growth in repeat customer base amongst lenders in CY 2020 versus CY 2017. Moreover, this growth is as high as 64X for digital-first lenders i.e FinTech NBFCs indicating higher stickiness driven by convenience, over the same time period.
Ticket sizes on loan products like personal loans, auto loans and consumer durable loans are geo-agnostic.
In line with the geographical expansion of new digital users in tier 2/3/4 locations and rural India, and a preference for the mother tongue, local language searches for credit showed an exponential increase. Searches in local languages and for translations of terms such as ‘Credit’, ‘Term loan’, and ‘Moratorium‘ have also witnessed an uptick.
Customers rate trust in the brand higher than other traditional parameters like low interest rates, which came second, before recommendations, disbursal time, and online process, all considered to drive value perception with customers.
Sixty-four per cent of credit buyers say that brand is a major factor in choosing their loan provider. Considerable time and effort goes into choosing the lender brand with 76 per cent of borrowers taking a minimum of two weeks between exploration and finally choosing the lender.
Almost a third (32 per cent) of borrowers consider over five providers before proceeding to apply.
[ad_2]
[ad_1]
This is one of the biggest mutual fund schemes from the HDFC Mutual Fund stable. It has assets under management of nearly Rs 42,000 crores.
This is a hybrid fund, where the amounts are invested in both debt and equity. At the moment the fund has 75% exposure to equity, and the rest in debt and cash and cash equivalents.
The fund has generated a returns of about 55% in the last 1-year. The minimum SIP that one can start the plan is with Rs 500. As compared to other equity mutual funds, the risk here would be a little less, given that the fund has almost 25% exposure to debt, cash and cash equivalents. This would leave the fund manager some opportunity to buy at lower levels, should the markets fall.
HDFC Flexi Cap Fund as the name suggests invests in companies with a small market capitalization or companies with a large market capitalization. It really depends on where the fund manager sees an opportunity.
An SIP investment of Rs 10,000 every month in the last 36-months would have grown to a corpus of Rs 5 lakhs. A Rs 1 lakh investment on the other hand would have fetched Rs 1.5 lakhs, if invested three year ago.
The minimum SIP investment required is Rs 500. Looking at the portfolio of HDFC Flexi Cap Fund would suggest that bulk of the money is invested in large caps like State Bank of India, ICICI Bank, Infosys and Larsen and Toubro. In the last 1-year HDFC Flexi Cap Fund has given a return of 68%. The substantial jump in returns in the last 1-year of equities, due to the sharp rally in the Sensex and the Nifty is one reason why we advocate SIPs.
As the name suggests the company invests in the top companies, primarily from the largecap space.
HDFC Top 100 has generated a returns of around 57% in the last 1-year, in line with the sharp jump in the stock markets. The fund has sizeable assets under management of more than Rs 20,000 crores. The ratings of this fund is not great when compared to peers. Investors can look to invest Rs 500 as the minimum by way of Systematic Investment Plan.
We need to drive home the point once again that the Sensex is at a record high of 52,527 points and hence investing a large amount in equity mutual funds is risky. The HDFC Top 100 has invested almost all of the money in equities and has very little in terms of cash and cash equivalents.
If you are looking at investing with no risk, then the HDFC Corporate Bond Fund would not be a bad bet. In fact, being a debt oriented scheme the risk is far less.
Interestingly, the HDFC Corporate Bond Fund has given a returns of 8% in the last 1-year, which really beats returns from even bank deposits. One can invest in the bond fund, through the SIP route, which would be Rs 500 a month.
The fund has exposure to high quality Government of India Sovereign paper, and debentures from the likes of NABARD and Ultratech Cement. The instruments in the portfolio look sound.
This is another fund that is good for those looking at debt options through the SIP route. The net asset value under the growth plan is Rs 44.22. The 1-year returns from the fund is 10%, which is really good for a debt fund.
One can invest through the SIP route for Rs 500 each month. Returns from debt funds would largely depend on how interest rates move in the economy. Overall, interest rates are expected to remain stable at the current levels.
[ad_2]