Broking firm, Emkay Global has suggested to buy the stock of Page Industries for gains of up to 20%. The brokerage sees an upside on the stock to Rs 37,500 from the current market price of Rs 31,200.
Current market price of Page Industries
Rs 31,200
Target price of Page Industries
Rs 37,500
Gains
20%
Page Industries is the exclusive licensee of Jockey International Inc. (USA) for manufacture, distribution and marketing of the Jockey brand in India, Sri Lanka, Bangladesh, Nepal, UAE, Oman and Qatar. Page Industries is also the exclusive licensee of Speedo International Ltd for the manufacture, marketing and distribution of the Speedo brand in India. According to Emkay Global, the Q1 performance was slightly better, with revenue recovery at 60% (10% ahead of estimates) and EBITDA margins at 6.8%.
Sales grew 76% yoy to Rs 5 billion on low comparables, but declined 43% qoq due to the Covid-induced restrictions.
Margins to recover to 21% levels
According to Emkay Global EBITDA margins of 6.8% were better than expected, supported by cost control and higher gross margins (up 1,000 basis points; ex-subcon expenses) on better manufacturing overhead absorption. “The commentary was strong with Page Industries indicating 21%+ margins on full recovery ahead. Page Industries has also been able to contain the impact of strong increase in raw material prices with better cost control – has effected only 4% price hike (cumulative 7-8%) vs 20% cumulative hike by peers that operate in the economy segment,” the brokerage has said.
Expect a strong recovery ahead and buy the stock of Page industries
According to Emkay Global with manufacturing operations normalized and the store network fully operational, it expect a strong recovery ahead. “Page Industries strong product expansion plans and fast scale-up of distribution network provide better visibility of mid-teens growth sustaining ahead. Valuations at 52x FY23E Earnings Per Share are at a discount to other high-growth peers. Maintain Buy with a revised target price of Rs 37,500 based on 55x Sep’23E EPS,” the brokerage has said.
Disclaimer
Investors should certainly not take any trading and investment decision based only on information discussed in this article. We are not a qualified financial advisor and any information herein is not investment advice. It is informational in nature, which is taken from the brokerage report of Emkay Global. Please do consult a professional advisor. Greynium Information Technologies Pvt Ltd, its subsidiaries, associates, author and the brokerage house do not accept culpability for losses and/or damages arising based on information in the article.
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Story first published: Sunday, August 15, 2021, 17:42 [IST]
Broking firm, Khambatta Securities has suggested buying the stocks of Sharda Cropchem and Subros Ltd. The firm sees gains of as much as 37% in the stock of Sharda Cropchem and around 17% in the stock of Subros Ltd. Investors are also advised caution, as the Sensex is now at a record of 55,000 points.
Buy Sharda Cropchem stock for an upside potential of 37%
Khambatta Securities sees as an upside in the stock of Sharda Cropchem to Rs 435, from the current market price of Rs 319.
Sharda Cropchem is a rapidly growing global agrochemicals company with a leadership position in generic crop protection chemicals comprising formulations and generic active ingredients in the fungicide, herbicide and insecticide segments.
“Backed by a strong applications pipeline, the key driver of business growth for Sharda Cropchem, its topline is expected to witness healthy growth in the next 2 years. We have modelled lower EBITDA margin for FY22 to factor in higher raw material and shipping costs while increased D&A expenses arising from higher capitalised registration costs will result in lower net margins.
At current levels, the Sharda Cropchem stock trades at an attractive 11 times FY23E EPS. Assigning a target P/E multiple of 15 times FY23E EPS, we value Sharda Cropchem at Rs 435, informing a BUY rating with an upside of 36%,” the brokerage has said.
Buy Subros Ltd stock for a potential upside of 17%
The Subros Ltd stock, according to Khambatta Securities has a potential upside of 17% and can rally to Rs 371 from the current levels of Rs 321. Subros’s first quarter FY22 performance was affected by covid 2.0 and consequent lockdown in many states.
According to Khambatta Securities operations was suspended during May 21 as OEMs and dealers remained shut at several locations.
“The company’s current capacity utilisation is 90% as management looks to invest in capacity expansion in the next 2 to 3 years. Subros’ market share in the passenger vehicle, utility vehicle and truck segment is 42%/55%/45%.
The trend of trucks coming with air conditioned cabins is a positive market, consumer preference shift for Subros Ltd. The management has guided double-digit revenue growth for FY22. The Subros Ltd has appreciated 33% since we initiated coverage with a BUY rating on 17 September 2020.
We reiterate a buy rating on the stock of Subros Auto with a price target of Rs 371 (at 22.0 times FY23E EPS) with a 15% upside as we make marginal downward revision of estimates based on updated data-points and outlook,” Khambatta Securities has stated.
Disclaimer Investors should certainly not take any trading and investment decision based only on information discussed in this article. We are not a qualified financial advisor and any information herein is not investment advice. It is informational in nature, which is taken from the brokerage report of Khambatta Securities. Please do consult a professional advisor. Greynium Information Technologies Pvt Ltd, its subsidiaries, associates, author and the brokerage house do not accept culpability for losses and/or damages arising based on information in the article.
For investment related articles, business news and mutual fund advise
If Covid-19 and the ensuing lockdowns have got you habituated to purchasing your essentials only online, there are specialised credit cards that can come handy. A few banks are issuing credit cards in partnership with popular e-commerce companies to attract more consumers especially in the post pandemic contactless world. The Amazon Pay ICICI Bank Credit Card and the Flipkart Axis Bank Credit Card are two such cards. These credit cards offer rewards on your online purchases in the form of cashbacks, discounts and reward points. E-commerce websites also provide extra offers to such cardholders on their select purchases. These are over and above the existing discounts, cashbacks, and reward points.
While your affinity to a select e-commerce platform might be a key criterion in deciding the credit card to opt for, there are also other parameters to consider. Here is a lowdown on a few of them.
Enrolment, fees
A registered Amazon Pay user, despite not being an existing customer of ICICI Bank, can easily apply for an ICICI Bank co-branded credit card entirely online using the video KYC facility. They can do so either on the bank’s website or mobile application or through the Amazon.in website or mobile app.
However, for a Flipkart Axis Bank credit card, you must have a current or saving account with Axis Bank apart from being a registered Flipkart user. That apart, the Axis Bank credit card also entails a joining fee of ₹500, while the Amazon Pay ICICI Bank Credit Card is free of cost.
The Amazon pay ICICI Bank card is a free lifetime credit card with no joining or annual fees whereas the Flipkart Axis Bank credit card charges an annual fee of ₹500 after the first year. This is, however waived if the annual spends on the card exceed ₹2 lakh.
On the amount overdue, while ICICI Bank charges an interest of 42-45.6 per cent depending on customer profile, Axis Bank charges 49.36 per cent per annum for amounts overdue on retail purchases and cash transactions. See the table for a comparison on other charges.
Benefits offered
The Flipkart Axis Bank credit card comes with a host of welcome benefits such as free vouchers, discounts and cashbacks on the first card transaction on Flipkart, Myntra, etc. and a free 15-month subscription to Gaana. There are no such benefits on enrolment in the case of the ICICI Bank credit card.
On the ICICI Bank card, customers earn 3 per cent reward points on card spends on Amazon (5 per cent for Amazon Prime users). Besides, one can earn 2 per cent reward points for spends on digital categories on Amazon.in such as bill payments, recharges, travel and movie bookings, and for payments to other Amazon Pay merchants such as Swiggy, Bookmyshow, and Yatra. For spends on any merchant location in the country where Visa cards are accepted, the card fetches you 1 per cent reward points.
Besides, the bank offers benefits mostly in the form of reward points. Each reward point is equal to one rupee and the reward earnings are credited directly to the Amazon pay monthly balance after the billing cycle.
The Axis bank card offers cashbacks that are directly credited in the credit card statement in the next billing cycle. The bank offers cashbacks such as 5 per cent of the spends on Flipkart, Myntra and 2GUD. On spends on other preferred merchants such as Swiggy, PVR and Uber, the bank offers 4 per cent cashback. On all other categories of merchant spends, the bank offers 1.5 per cent cashback.
While the ICICI Bank credit card offers 2 per cent reward points when you add money to your Amazon pay wallet, the Axis Bank card does not offer cashbacks for wallet loading transactions.
Fuel surcharge waiver
The banks also offer their existing customers other benefits such as discounts on dining in select restaurants. Besides, the Axis Bank credit card also gives its customers four free lounge accesses in select domestic airports every calendar year.
Both banks do not offer rewards points and cashbacks on fuel, EMI transactions (including purchases converted into EMI later) and gold purchases. However, the banks offer waivers on fuel surcharge – 1 per cent in the case of the Axis Bank credit card for transactions in the range of ₹400- 4,000 up to a maximum of ₹500 per month. In the case of the ICICI Bank credit card, only the existing bank customers get a waiver of 1 per cent on fuel surcharge payments on spends using the bank’s Amazon pay co-branded credit card.
(This is a free article from the BusinessLine premium Portfolio segment. For more such content, please subscribe to The Hindu BusinessLine online.)
The outbreak of the pandemic along with the rising incidence of lifestyle-related illness has not only highlighted the importance of having health insurance but also having sufficient cover (amount).
Additionally, a health policy should not only cover hospitalisation expenses but also offer other benefits including OPD, daily cash benefit in case of hospitalisation, restoration of sum insured (SI) in case of claim and no claim bonus (NCB).
HDFC Ergo has recently introduced one such product, Optima Secure. Here is a review of the product features.
What’s on offer
The SI under the Optima Secure policy starts from ₹5 lakh and goes up to ₹2 crore. It provides all basic covers like other health policies such as hospitalisation expenses including day care treatment expenses, AYUSH treatment, home healthcare (domiciliary hospitalisation), organ donor expenses, pre and post hospitalisation expenses, and cumulative bonus benefit.
The policy also covers the cost of preventive health check-up on each continuous renewal of the policy.
The highlight of Optima Secure is that it offers a cover of more than the base SI (cover amount) to all policyholders.
The ‘Secure’ benefit of the plan offers additional coverage amount equivalent to 100 per cent of the SI.It also offers a ‘Plus’ benefit, where on policy renewal, the policyholder receives 50 per cent of the base SI, irrespective of the number of claims made.
It also provides Cumulative Bonus benefit, where the base SI increases by 10 per cent for every claim-free year subject to a maximum of 100 per cent of the base SI.
Then there is an automatic Restore benefit. Under this, in the event of complete or partial utilisation of the base SI, the plan offers to restore it fully. This is irrespective of whether the secure or plus benefit or the cumulative bonus SI is utilised.
Let’s understand this with an example. Say Joe’s base SI is ₹10 lakh. As soon as he purchase the policy, he gets the Secure benefit. So his SI stands at ₹20 lakh (10 + 10). If the restore benefit is considered, then his total SI stands at ₹30 lakh during a policy year.
Additionally, Optima Secure also offers daily cash benefit for shared room (₹800 per day, maximum of ₹4,800), air ambulance service, and e-opinion for critical illness.
The policy also offers two add-on covers (riders) for additional premium – my: health critical illness cover up to ₹5 crore and my: health hospital cash benefit .
Our take
HDFC Ergo’s Optima Secure offers more than sufficient health cover for a policyholder and one can consider this plan only if you are looking for additional cover (amount) over and above the base SI.
The benefit of additional SI comes handy during medical emergencies and for those with existing medical conditions in the family.
Also, the plan doesn’t have any sub-limits or SI capping including for day care procedures, ICU or intensive cardiac care unit, road ambulance services and on modern treatments such as oral chemotherapy and stem cell therapy, unlike some health policies. For instance, HDFC Ergo’s Optima Restore plan has a sub-limit on road ambulance service of up to ₹2000 per hospitalisation.
But keep in mind a few points. One this Secure benefit is available only once in a policy year and does not carry forward to the next policy year. Even the automatic SI Restore feature is available only once during the policy year.
Two, though in most cases, the hospitalisation expense requirements are often met with the additional SI offered under Optima Secure, there are products in the market such as Max Bupa’s ReAssure plan and Care Plus plan from Care Health Insurance that offer restore benefit multiple times in a year.
Three, under Optima Secure, the NCB (cumulative bonus) benefit increases 10 per cent each claim-free year but there are products in the market which double the NCB or increase it 50 per cent for each claim-free year up to a maximum of 100 per cent of base SI.
The ReAssure plan from Max Bupa increases the same by 50 per cent for each claim-free year. Manipal Cigna’s Pro Health plan offers guaranteed increase in SI by 10 per cent up to 200 per cent (of base SI ) every year irrespective of the claims
And lastly, while Optima Secure offers comprehensive coverage, it may appear slightly expensive compared to other products in the market.
For instance, under Optima Secure, for a ₹10 lakh cover for a family (husband and wife; 30 years), the premium works out to ₹19,106 (including GST) per year.
Under Max Bupa’s ReAssure, the premium is around ₹11,321 (including GST) per year.
Last week the Deposit Insurance and Credit Guarantee Corporation (Amendment) Bill 2021 was passed by both the houses of the Parliament. In the wake of the PMC Bank and YES Bank debacles, these amendments are a move in the right direction. In light of the proposed changes, we help you understand how deposit insurance works.
The bill, which is pending until it gets the President’s assent, proposes to change the time at which the DICGC becomes liable to pay the bank depositors. Earlier the liability kicked in only when the order of liquidation was passed against a bank.
Now the DICGC is liable to pay depositors when any direction, order or scheme is passed such that it prohibits the depositors of the insured bank from accessing their deposits. The DICGC is required to pay the depositors the insured amount (of up to ₹5 lakh – inclusive of principal and interest) within 90 days from which such order/direction/ prohibition takes effect. Once, the bill is enacted into law, depositors of the crisis hit PMC Bank will also be automatically covered.
Will the DICGC pay the depositor directly?
Earlier, the DICGC was required to settle dues to the liquidator, who in turn would ensure the distribution to each depositor. Now, per the amendment, DICGC is required to pay the depositors either directly, or get the amount credited in the account of the depositors through the insured bank.
Do I have to pay a premium for this insurance?
Depositors are not required to pay anything. Banks pay DICGC a premium of up to 15 paise per ₹100 of deposits with them, every year. An amendment has also been proposed to permit DICGC to hike the maximum limit of the premium to be collected from time to time with the prior approval of the RBI.
Are all bank deposits covered under this insurance?
No primary co-operative societies are not. However, all commercial banks (including branches of foreign banks functioning in India, local area banks and regional rural banks) all state, central and primary cooperative banks (which are known as urban cooperative banks) are insured by the DICGC.
What is the limit on the insured amount? Does this cover every deposit I hold in a bank?
Each depositor in a bank is insured for up to a maximum of ₹5 lakh (hiked from the earlier ₹1 lakh in the 2020 Budget) for both principal and interest amount held by him/her in the same right and same capacity. This means that all accounts (savings, current, fixed and/or recurring deposit accounts) held by the depositor in all branches of the bank in her individual capacity will be aggregated. The insurance cover is available for up to a maximum of ₹5 lakh.
However, if the depositor opens other deposit accounts in her capacity as a partner of a firm, or guardian of a minor, or director of a company, or trustee of a trust, or a joint account, in one or more branches of the bank, then such accounts are considered as held in a different capacity and different right. Such deposits will hence enjoy the insurance cover of up to ₹5 lakh each.
What if I have multiple joint accounts with the same bank? Will the ₹5 lakh insurance limit apply to each of these accounts?
If multiple accounts are jointly held by individuals in a bank in which their names appear in the exact same order, then these are considered to be held in the same capacity and in the same right. Hence these shall be aggregated for the purposes of the ₹5 lakh insurance limit.
Depositors are hence better off in changing their order of names, while holding multiple joint accounts in the same bank. These will be treated as held in different capacity and different right. Accordingly, insurance cover will be available separately up to ₹5 lakh for every such joint account where the names appear in different order or where the names are different.
Say, you wish to open multiple joint accounts with your spouse in the same bank, it would be wise to name her / him as the first holder in at least one of the accounts. You can also consider adding another family member as the third joint account holder to maximise your safety net under the deposit insurance.
‘Freedom to retire early’ — the biggest aspiration of the BL Portfolio Survey respondents — strikes a chord with the ‘FIRE’ or ‘Financial Independence, Retire Early’ movement in the US.
At its core, ‘FIRE’ is all about building a nest egg and hanging up your boots much before the traditional retirement age. We take a closer look at this trend.
What is it
The origin of FIRE is vaguely traced to the 1992 book ‘Your Money or Your Life’ by Vicki Robin and Joe Dominguez. The book encourages one to reassess one’s relationship with money, pointing out that ‘we are sacrificing our lives for money, but it is happening so slowly that we barely notice’. Salary/money is something that an individual earns for time spent. Having a clear understanding of relationship with money would ensure an optimum trade-off between time and money (implying, money earned which in turn gets spent or saved).
The FIRE movement, which started gaining traction soon after the global financial crisis of 2007, requires following a disciplined approach of saving aggressively and starting to invest from a young age in a prudential manner.
Proponents recommend even saving as high as 75 per cent of one’s income to retire very early. The objective is to reach a level of savings that will yield sufficient returns in the form of dividends, interest income or rental income with which one can meet living expenses comfortably. At this point, one has the freedom to choose whether one wants to work, or take up only gigs that give one happiness or are in sync with one’s passion.
Some withdrawal from the capital ie the principal amount can also be factored to meet living expenses. This, however, comes with risks in today’s world where average life span is getting extended, and one should not run the risk of falling short of financial resources at a later stage in life, when one might not be able to work.
Ideal corpus
Based on current living standards and investment return prospects in the US, those in the FIRE bandwagon there follow something known as the ‘4 per cent rule’. One’s total yearly living expenses is multiplied by 25; if it is possible to earn a 4 per cent annual yield on that from investments, then one can quit their job, according to their mantra. A yield below 4 per cent with rest withdrawn from principal also might be fine, according to some proponents, since some of the corpus might appreciate over time, but this comes with risks.
When it comes to planning for a similar objective for a FIRE aspirant in India, two important factors imply the multiple applied to yearly living expenses may need to be higher than 25 — high inflation and low yields.
India has historically had much higher inflation than the US, which means one’s savings erode faster over a period of time. India goes through periods of negative real interest rates (inflation higher than interest rate) like in the last year, denting the real income of retirees preferring safe investment options. Hence, a yield of higher than 4 per cent may be needed on savings.
Besides, rental yields and dividend yields in India are much lower than that in developed markets (Nifty 50 dividend yield at 1 per cent versus Dow Jones Index dividend yield at near 2 per cent). Hence, focussing entirely on capital appreciation and withdrawing from principal to make up for the lower yield presents a risky proposition, warranting a higher multiple to yearly expenses.
Hence, other factors such as frugal living and wise investing may be required to get this dream of early retirement closer to reality.
Takeaways
Finally, if you want to be on the FIRE bandwagon, here are three things that you can do, which also form the core of the FIRE movement:
One, spending only on what is essential — not indulging in excessive consumerism and thereby devaluing your own effort. It was your effort that earned you the money and spending that money without much thought devalues the effort. Tempering down on consumerism also comes with positive consequences for the environment which appears be a cause important to millennials.
Two, saving wisely — investing in a prudential and judicious manner that can grow your corpus optimally and also give you comfort, confidence, and peace of mind .
Three, valuing the time that you spend at work — when one realises that money is a by-product of how one spends his/her time, then one gets more conscious of making use of that time more productively. Following the first two principles would help you choose a job you may like. At the same time, when you realise that your savings and spends which will help you reach your goal is a function of your time at work, you will also begin utilising that time more effectively.
Gold – a form of investment, fascination and some might even buy to maintain their status. Gold has been the most preferred form of investment for people over the last 100 years. Any form of gold – jewelry, coins, biscuits, etc, gold has always been placed in high regard due to its auspicious significance. However, times are changing and with the advent of technology, the whole world is inclined towards digitalize forms of investment and gold is no exception. In this article, we will delve deeper into Digital Gold vs Physical Gold investment.
What is Digital Gold?
Among the various methods and forms of gold investment, one that has become famous in no time is digital gold. Digital gold is an alternative to physical gold investment available to investors. It has proved to be the most efficient and cost-effective way of investing in gold.
Who Provides Digital Gold and How to Buy it?
In India, it is offered by certain selected companies that are:
1. Augmont Goldtech Pvt. Ltd.
2. MMTC-PAMP India Pvt. Ltd – A joint venture between state-owned Metals and Minerals Trading Corporation of India (MMTC) Ltd and Swiss firm MKS PAMP
3. Digital Gold India Pvt. Ltd with its SafeGold brand.
Digital Gold is made available to investors by the above companies through various online platforms and e-wallets. The most interesting thing about digital gold is, investors can buy it from as low as Rs. 100, which has contributed towards the popularity of this product in the market.
Each unit of digital gold is backed by 24K 99.9% purity of gold. The buying and selling happen online at market prices which ensures complete transparency in the transaction.
Benefits of Investing Digital Gold
When compared to physical gold investment, digital gold has a lot to offer in terms of benefits. Some of the benefits of digital gold investment are:
No concerns about storage -Digital gold investment doesn’t ask you for additional storage or carrying costs. Once you have invested, there is no need to worry about the safety of gold as it is stored by the trading companies in a safe vault in the investor’s name.
Investment can be made in small amounts: Investors can start investing with small amounts of money in digital gold. With the privilege of no minimum purchase limits, one can consider digital gold for small investments.
Quality: Only 24 karat gold is possessed by the investor and the quality is never compromised. Hence, no need to be concerned with the protection or purity of the gold.
Redemption: The redemption process of Digital gold is quick and easy. One can redeem it in physical gold coins or bars. Also, investments can be easily cashed out without any hassle.
Loan against investment – Digital gold can be used as collateral for availing loans Investment tracking is easy: One can easily track the investments through online platforms (apps or websites).
Helpful in diversifying your portfolio – Indeed, it is a good investment option for those who want to diversify their portfolio.
Advantage of price movements: Real-time gold rates are offered by these digital platforms. Hence, one can take advantage of the price movements and make purchases. However, there are certain downsides of digital gold investment such as charges by trading platforms that range from 2%-3% as a management fee and no regulatory authority. Also, there is a long duration holding period after which an investor has to sell the gold or convert it into physical gold. However, compared with physical gold, digital gold investment is a much quicker and convenient form of investment.
What is Physical Gold and How is it Purchased?
Physical gold investment is the traditional form of investment in India. This yellow metal is usually bought for consumption purposes and is purchased in the form of jewelry, gold coins, and biscuits. It can be bought directly from a jeweler or a bank with no involvement of an intermediary.
Usually, the physical gold purchase is kept confidential, unlike other forms of investment. However, it is advisable to keep all the purchase-related receipts safely for income tax purposes. The minimum investment in physical gold is high. There is a higher minimum investment in physical gold than digital gold owing to the high market prices. One major advantage of investing in physical gold is liquidity. This yellow metal is accepted in exchange for cash. Thus it can be liquidated anytime, anywhere in the world. Having said that, keep in mind that the price of gold varies from dealer to dealer and the resale value is usually lower than other forms of gold investment.
Advantages of Investing in Physical Gold Investment
Inflation-Proof – Physical gold is considered to remain unaffected by inflation. For example, you can purchase gold today, sell it in the future and still compensate for the changes.
Always in demand – Gold demand has always been on the higher side. Mugging up the history, it can be easily found that metal has always been in demand. Even during a crisis, it can be sold easily.
Loan – Investors can avail loans against physical gold investment.
Downsides of Investing in Physical Gold
Storage cost – The cost of storage and carrying of gold is higher.
Making charges – Apart from the purchase cost, physical gold also have high making charges applicable.
Security – Another major drawback is there is always a risk of theft with physical gold.
Wealth tax – For gold purchases above 30 lakhs, one has to pay a wealth tax.
Physical Gold Vs Digital Gold – Which one should you go for?
Both digital gold and physical gold investments have their pros and cons. The choice of investment depends on the investor and the investment objective, risk factor, etc. For example, if someone is looking to purchase gold just for investment, he/she can invest in digital gold instead of physical gold.
However, as mentioned earlier also, digital gold is not regulated and has a maximum years limit after which it has to be sold or converted into physical form. In these cases, physical gold is a good investment alternative. But one thing to remember is that be it digital gold or physical gold, around 10%-20% of gold in the portfolio is considered healthy. This will help in the diversification of the portfolio and also act as a hedge against volatility, currency risk, and inflation risk.
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Axis Bank, a private sector bank, has adjusted interest rates on fixed deposits (FDs) with force from August 14, 2021. Axis Bank offers fixed deposit accounts with terms ranging from 7 days to 10 years. Axis Bank now offers an interest rate of 2.50 percent on FDs maturing between 7 days and 29 days, 3 percent on FDs maturing between 30 days and less than 3 months, and 3.5 percent on FDs maturing between 3 months and less than 6 months, following the recent adjustment on deposits less than 2 crores. Axis Bank offers a 4.40 percent interest rate on FDs maturing in six months to less than one year. The bank provides a 5.10 percent interest rate for 1 year to less than 1 year 5 days.
The bank is providing a 5.15 percent interest rate on term deposits maturing in 1 year 5 days to less than 1 year 11 days. Axis Bank is now providing an interest rate of 5.10 percent on deposits maturing in 1 year 11 days to less than 18 months and an interest rate of 5.25 percent on deposits maturing in 18 months to less than 2 years. The bank is currently providing interest rates of 5.5 percent and 5.4 percent for FDs maturing in 2 years to less than 3 years and 3 years to less than 5 years, respectively. Following the most recent adjustment, the bank now promises an interest rate of 5.75 percent on deposits maturing in 5 to 10 years.
Axis Bank FD Rates For The General Public
With effect from 14/08/2021, Axis Bank is offering the following interest rates to the regular citizens for a deposit amount of less than Rs 2 Cr.
Sr No.
PERIOD
INTEREST RATES (% P.A.)
1
7 days to 14 days
2.50
2
15 days to 29 days
2.50
3
30 days to 45 days
3.00
4
46 days to 60 days
3.00
5
61 days to less than 3 months
3.00
6
3 months to less than 4 months
3.50
7
4 months to less than 5 months
3.50
8
5 months to less than 6 months
3.50
9
6 months to less than 7 months
4.40
10
7 months to less than 8 months
4.40
11
8 months to less than 9 months
4.40
12
9 months to less than 10 months
4.40
13
10 months to less than 11 months
4.40
14
11 months to less than 11 months 25 days
4.40
15
11 months 25 days to less than 1 year
4.40
16
1 year to less than 1 year 5 days
5.10
17
1 year 5 days to less than 1 year 11days
5.15
18
1 year 11days to less than 1 year 25days
5.10
19
1 year 25 days to less than 13 months
5.10
20
13 months to less than 14 months
5.10
21
14 months to less than 15 months
5.10
22
15 months to less than 16 months
5.10
23
16 months to less than 17 months
5.10
24
17 months to less than 18 months
5.10
25
18 months to less than 2 years
5.25
26
2 years to less than 30 months
5.50
27
30 months to less than 3 years
5.50
28
3 years to less than 5 years
5.40
29
5 years to 10 years
5.75
Source: Bank Website
Axis Bank FD Rates For Senior Citizens
After the recent revision made on fixed deposit interest rates by the bank, senior citizens will get the following interest rates on their deposits of less than Rs 2 Cr.
Sr No.
PERIOD
INTEREST RATES (% P.A.)
1
7 days to 14 days
2.50
2
15 days to 29 days
2.50
3
30 days to 45 days
3.00
4
46 days to 60 days
3.00
5
61 days to less than 3 months
3.00
6
3 months to less than 4 months
3.50
7
4 months to less than 5 months
3.50
8
5 months to less than 6 months
3.50
9
6 months to less than 7 months
4.65
10
7 months to less than 8 months
4.65
11
8 months to less than 9 months
4.65
12
9 months to less than 10 months
4.65
13
10 months to less than 11 months
4.65
14
11 months to less than 11 months 25 days
4.65
15
11 months 25 days to less than 1 year
4.65
16
1 year to less than 1 year 5 days
5.75
17
1 year 5 days to less than 1 year 11days
5.80
18
1 year 11days to less than 1 year 25days
5.75
19
1 year 25 days to less than 13 months
5.75
20
13 months to less than 14 months
5.75
21
14 months to less than 15 months
5.75
22
15 months to less than 16 months
5.75
23
16 months to less than 17 months
5.75
24
17 months to less than 18 months
5.75
25
18 months to less than 2 years
5.90
26
2 years to less than 30 months
6.15
27
30 months to less than 3 years
6.00
28
3 years to less than 5 years
5.90
29
5 years to 10 years
6.50
Source: Bank Website
Axis Bank Fixed Deposit Plus Interest Rates
Axis Bank also offers a kind of fixed deposit account dubbed as Fixed Deposit Plus where premature withdrawal is not allowed. With effect from 14/08/2021 following interest rates are offered by the bank on a deposit amount of Rs 5 Cr and above.
Sr No.
PERIOD
INTEREST RATES (% P.A.)
1
7 days to 14 days
2.50
2
15 days to 29 days
2.50
3
30 days to 45 days
3.00
4
46 days to 60 days
3.00
5
61 days to less than 3 months
3.25
6
3 months to less than 4 months
3.70
7
4 months to less than 5 months
3.70
8
5 months to less than 6 months
3.70
9
6 months to less than 7 months
3.90
10
7 months to less than 8 months
3.90
11
8 months to less than 9 months
3.90
12
9 months to less than 10 months
4.00
13
10 months to less than 11 months
4.00
14
11 months to less than 11 months 25 days
4.00
15
11 months 25 days to less than 1 year
4.00
16
1 year to less than 1 year 5 days
4.35
17
1 year 5 days to less than 1 year 11days
4.35
18
1 year 11days to less than 1 year 25days
4.35
19
1 year 25 days to less than 13 months
4.35
20
13 months to less than 14 months
4.35
21
14 months to less than 15 months
4.35
22
15 months to less than 16 months
4.35
23
16 months to less than 17 months
4.35
24
17 months to less than 18 months
4.35
25
18 months to less than 2 years
4.35
26
2 years to less than 30 months
4.55
27
30 months to less than 3 years
4.55
28
3 years to less than 5 years
4.55
29
5 years to 10 years
4.55
Source: Bank Website
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Story first published: Saturday, August 14, 2021, 17:35 [IST]
Raipur: The state government has revoked financial powers of municipal council president of Mungeli following alleged irregularities in payment to contractor.
A government spokesperson informed that the municipality president Santulal Sonkar has paid nearly Rs 13 lakh to a contractor even when the construction work was not done.
During the investigation it was found that no drain of 300 meters was constructed in Paramhans Wardunder Mungeli Municipal Corporation as per proposal. However, a payment of Rs 13.2 lakh was given to the contractor of Akaltara in Janjgir-Champa district for the work. Following the investigation, the state government has revoked the financial powers conferred to Municipal Council Mungeli president Santulal Sonkar as per the relevant rules under the Municipality Act 1961.
Meanwhile, soon after the matter came into notice, urban administration and development minister Dr Shivkumar Dahariya took cognisance of the matter. As per his instructions, chief municipal officer Vikas Patle, deputy engineer Joyce Tigga, accountant Anand Nishad, and assistant revenue inspector Siyaram Sahu were suspended by the urban administration and development department this week with immediate effect.
In this case, besides issuing a show cause notice to Municipal Council Mungeli president Santulal Sonkar, instructions were also given to investigate the entire matter and register FIR against the accused concerned, said the official.
Brokerage firm, KR Choksey is bullish on the stock of SBI and has suggested investors to buy the same. The stock closed at Rs 431 this week and the brokerage has a price target of Rs 531 on the stock.
Current market price of SBI
Rs 430.75
Target price of SBI
Rs 532
Gains
23.43%
Healthy performance of State Bank of India
According to KR Choksey, Net Interest income for the first quarter of FY22 grew 3.7%, year-on-year with a 9 basis points dip year-on-year in Net Interest Margins due to some pressure seen on the yields and decline in the domestic CD ratio by 2% YoY.
The bank expects to see improvement in Net Interest Income with healthy growth in the loan book going forward. “Other income saw a jump of 24% year on year on the back of foreign exchange gains and one-off income related to recovery. This resulted in a strong growth on PPOP of 15% YoY at Rs 18,975 crores. The C/I ratio improvement at 51.9% in Q1FY22 from 52.3% in Q1FY21 and 54.5% in Q4FY21. The net profit for the first quarter of of FY22 stood at Rs 6,504 crores, a growth of 55% on the back of higher operating profits and lower provision by 20% Yo,” KR Choksey has said in its report.
“The first quarter of FY22 was a stable quarter on operating terms for State Bank of India. Loan book growth for the quarter was modest YoY and down sequentially. Asset quality was hit by the second wave of Covid in line with the peer performance. The Bank’s performance is showing a gradual improvement quarter by quarter. The restructuring of book is underway. The strong deposit franchise, large customer size and loan book mix augurs well for the bank. It is, therefore, better placed than its PSU peers to weather further crisis especially related to the pandemic,” the brokerage has added.
It has factored a compounded annual growth rate of of 48% in profits over an advance CAGR of 9% over FY21-23E.
“We expect its Return on Assets to improve to 0.8% by FY23E and Return on Equity to improve to 14.5% by FY23E. We value the bank at 1.4 times FY23E P/ABV (earlier 1.2x) on an ABV of Rs 325, taking the SOTP value to Rs 532 per share (earlier Rs 450 per share), implying a potential upside of 20.4% over the current market price. Accordingly, we upgrade the rating on the shares of SBI to a “BUY,” the brokerage has said.
Disclaimer
Investors should certainly not take any trading and investment decision based only on information discussed in this article. We are not a qualified financial advisor and any information herein is not investment advice. It is informational in nature, which is taken from the brokerage report of KR Choksey. Please do consult a professional advisor. Greynium Information Technologies Pvt Ltd, its subsidiaries, associates, author and the brokerage house do not accept culpability for losses and/or damages arising based on information in the article.
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Story first published: Saturday, August 14, 2021, 17:00 [IST]
