NEW DELHI: To provide easy access to investors to participate in public and rights issues by using various payment avenues, markets regulator Sebi on Tuesday allowed payments banks to carry out the activities of investment bankers.
Non-scheduled payments banks, which have prior approval from the Reserve Bank of India (RBI), will be eligible to act as a banker to an issue (BTI), Sebi said in a circular.
This is subject to fulfilment of the conditions stipulated in the BTI rules.
Further, payments banks registered as a BTI will also be permitted to act as self-certified syndicate banks, subject to the fulfilment of the criteria laid down by the Sebi in this regard from time to time.
“The blocking/movement of funds from the investor to issuer shall only be made through the savings account of the investor held with the payments bank,” Sebi said.
In a notification dated July 30, the regulator amended the Bankers to an Issue rules, thereby permitting such other banking company, as may be specified by the Sebi, from time to time, to carry out the activities of Bankers to an Issue (BTI), in addition to the scheduled banks.
Bankers to an issue mean a scheduled bank or such other banking company as may be specified by Sebi carrying activities, including acceptance of application money, acceptance of allotment or call money, refund of application money and payment of dividend or interest warrants.
Broking firm, Emkay Global in its recent research report has recommended the stock of IndusInd bank. The brokerage has noted that as per management, the bulk of the retail and SME stress formation from the second Covid wave is behind, and normalization should start from the second half. The bank carries a healthy Covid contingent provision of Rs 20 billion (inclusive Rs 12 billion for restructuring)/1% of loans. Its specific provision stands at Rs 1.5 billion toward the risky telecom exposure.
IndusInd Bank: Buy the stock for a target of Rs 1,375
According to the Emkay Global report, deposit growth (26% yoy) far outpaced credit growth (6% yoy), hurting margins in Q1. However, steady retailization of assets (55% vs. 52%)/liabilities (50% vs. 37%) and credit growth acceleration with a better grip on asset quality should drive Net interest Margins higher.
“This, coupled with moderating LLP, should increase returns on assets/returns on equity to 1.7-1.9%/15-16% over FY23-24E. We believe a resurgent IndusInd Bank with a better liability profile, higher retail orientation, and risk-guards in place should deliver sustainably higher return ratios, providing a good turnaround story to play on. Retain Buy with a revised target price on the stock of Rs1,375,” the brokerage has said. Shares of IndusInd Bank last closed at Rs 1,032 on the NSE.
ICICI Bank stock: Buy says Prabhudas Lilladher
Brokerage firm, Prabhudas Lilladher has a buy on the stock of ICICI Bank with a price target of Rs 815, as against the current market price of Rs 690.
Current market price
Rs 690
Target price
Rs 815
The brokerage says that the asset quality of the bank was managed well in quite tough environment. Bank saw slippages of Rs 72.3 billion (4% of loans) with mainly from retail & agriculture and gold loans. Although, bank also saw strong recoveries of Rs 22.6 billion mainly from the loans turned bad in Q4FY21 and guided for further recoveries in the gold loan & retail segment.
According to the brokerage the bank also saw runaway business growth as loans grew by 17% YoY & 1 % QoQ driven by retail growing at 20% YoY and business banking by 53%.
ICICI Bank: Key financials
“Strong franchise strength is reflecting in strong growth path both in liabilities & assets with much better managed risk which keep Return on Equities to move towards 15-16% in FY23. Maintain conviction buy with revised target price of Rs 815 (from Rs 750) based on 2.4 times Sep-23 ABV (rolled from March 23) and subsidiaries value of Rs 181 (from Rs 164),” the brokerage has said.
FY 21-22
FY 2022-23
Net Interest Income (billions)
Rs 453
Rs 524
Net profits (billions)
Rs 212
Rs 257
EPS
30.7
37.0
Net interest margins
3.7%
3.8%
Disclaimer
The above stocks are based on the report of Emkay Global and prabhudas Lilladher. Investing in stocks is risky and investors should do their own research. The author, the brokerage firms or Greynium Information Technologies are not responsible for any losses incurred due to a decision based on the above article. Investors should hence exercise due caution as are at record peaks. Please consult a professional advisor.
The responsibility of addressing the grievances of its customers shall rest with the PSO, including in respect of the services provided by the outsourced agency.
The Reserve Bank of India (RBI) on Tuesday laid down a framework for outsourcing of processes by payment system operators (PSOs), excluding functions like risk management, internal audit and compliance from the ambit of outsourcing. The framework also mandates the formulation of a code of conduct for direct selling agents (DSAs) working with PSOs.
The central bank said outsourcing of any activity by a PSO shall not reduce its obligations, and those of its board and senior management, who are ultimately responsible for the outsourced activity. “This framework is applicable to non-bank PSOs insofar as it relates to their payment and/ or settlement-related activities.
It seeks to put in place minimum standards to manage risks in outsourcing of payment and/ or settlement-related activities (including other incidental activities like on-boarding customers, IT based services),” the RBI said in a notification on its website.
Outsourcing arrangements shall not affect the rights of a customer of a payment system against the PSO, as well as those of a payment system participant against the PSO, the central bank said. The responsibility of addressing the grievances of its customers shall rest with the PSO, including in respect of the services provided by the outsourced agency.
The circular mandated that a PSO which has outsourced its customer grievance redressal function must also provide its customers the option of direct access to its nodal officials for raising or escalating complaints. Such access should be enabled through adequate phone numbers, e-mail ids, and postal addresses, details of which shall be displayed prominently on the PSO’s website, mobile applications and advertisements, the RBI said.
To outsource any of its payment and settlement-related activities, PSOs will be required to have a board-approved comprehensive outsourcing policy, which incorporates criteria for selection of outsourced activities and service providers, parameters for grading the criticality of outsourcing, delegation of authority depending on risks and criticality, and systems to monitor and review the operation of these activities.
“The PSOs shall ensure that the DSAs/ DMAs (direct marketing agents) are properly trained to handle their responsibilities with care and sensitivity, particularly for aspects such as soliciting customers, hours of calling, privacy of customer information, conveying the correct terms and conditions of the products on offer,” the RBI said. The PSOs must also put in place a board-approved code of conduct for DSAs / DMAs and obtain their undertaking to abide by the same.
The Central Board of Direct Taxes (CBDT) has decided to further extend the due dates for electronic filing of certain Forms under the provisions of the Income-tax Act, 1961 due to difficulties reported by taxpayers and other stakeholders.
Quarterly statement in Form No. 15CC
The quarterly statement in Form No. 15CC to be furnished by authorised dealers in respect of remittances made for the quarter ending on June 30, 2021, required to be furnished on or before July 15, 2021 under Rule 37BB of the Rules, as extended to July 31, 2021 via Circular No.12 of 2021 dated June 25, 2021, may be filed on or before August 31, 2021.
Equalization Levy Statement in Form No.1 for the Financial Year 2020- 21
The quarterly statement in Form No. 15CC to be furnished by authorised dealers in respect of remittances made for the quarter ending on June 30, 2021, required to be furnished on or before July 15, 2021 under Rule 37BB of the Rules, as extended to July 31, 2021 via Circular No.12 of 2021 dated June 25, 2021, may be filed on or before August 31, 2021.
Statement of Income paid or credited by an investment fund
The Statement of Income paid or credited by an investment fund to its unit holders in Form No. 64D for the previous year 2020-21, which was due on or before June 15, 2021 under Rule 12CB of the Rules, but was extended to July 15, 2021 via Circular No.12 of 2021 dated June 25, 2021, may now be due on or before September 15, 2021.
The Statement of Income paid or credited by an investment fund to its unit holder in Form No. 64C for the Previous Year 2020-21
It is needed to be furnished on or before June 30, 2021, as extended to July 31, 2021 by Circular No.12 of 2021 dated June 25, 2021, but may be provided on or before September 30, 2021.
In addition, because the facility for e-filing certain Forms is not available, the CBDT has decided to extend the due dates for electronic filing of such Forms as follows:
Intimation to be made by a Pension Fund in respect of each investment made by it in India in Form No. 10BBB for the quarter ending on June 30,2021, required to be furnished on or before July 31, 2021 under Rule 2DB of the Rules, may be furnished on or before September 30, 2021. Intimation to be made by a Sovereign Wealth Fund in respect of investments made by it in India in Form II SWF for the quarter ending on June 30,2021, required to be furnished on or before July
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Story first published: Tuesday, August 3, 2021, 21:17 [IST]
All the three brokerages are showing a bullish bias towards the stock of Indian Oil Corporation. While we have covered already what Sharekhan and Motilal Oswal have to say on the stock, let’s see some of the reasons for bullishness by all the three top broking firms in the country.
Sharekhan and Motilal Oswal have a buy on the stock
Sharekhan says that the big triggers for the stock is the BPCL divestment, and the attractive dividend yield of 10%. In fact, the brokerage also says that pipeline monetization could also act as a big trigger for the stock.
However, Motilal Oswal is the most bullish on the stock in terms of price targets of IOC among the three brokerages and has suggested to buy the same for a solid upside of 52% from the current market price of Rs 106. According to the firm, IOC reported a beat on its estimates, led by higher-than-estimated reported gross refining margins and marketing sales volumes, the brokerage has said. The brokerage said that it values Indian Oil at 1.1 times Sep’23 price to book value, to arrive at price target of Rs 157 and maintains a Buy.
Emkay Global says to buy the stock for target of Rs 135
According to Emkay Global, the management expects GRMs to be better as demand picks up. Refinery utilization in July was 90%, while the LPG receivables outstanding from the Govt is nil now. The IOC-Petronas joint venture is looking to expand into multiple areas, including transport fuels.
Emkay Global says it values Indian Oil on a SoTP basis with a 6 times blended target Sep’23E EV/EBITDA for the standalone business (unchanged) and investments at a 30% holding company discount to face value.
Several new projects
IOC is looking at new areas including Aluminum Air Battery (JV with Israel based Phinergy), hydrogen, used cooking oils and CBG.
According to Emkay Global, Phinergy Battery can be significant.
“The technology is there and if successful they would set up a factory in India. IOCL is also focused on fuel cells. Indian Oil was invited to join World Hydrogen Council,” the brokerage has said.
The company is planning (at a nascent stage now) a green hydrogen plant in Mathura refinery to run on windmill-based power. It will also run hydrogen-powered buses in Gujarat refinery area and Delhi-Agra, etc. It is looking to monetize two hydrogen plants at the Gujarat refinery this fiscal and five more after that.
“Other new energy projects include two ethanol plants (in Panipat, etc., 2G/3G) of Rs 7 billion capital expenditure each. Out of 5,000 CBG plants announced by Govt, Indian Oil has given offtake interest for 1,100. Each plant will cost Rs 500 million, but IOC is not involved in capex and it will only have offtake (agreement),” Emkay Global has said.
All in all, looking at valuations, dividend yields, solid track record and an impeccable retail fuel network, IOC remains a good pick.
Disclaimer
The above stocks are based on the report of Motilal Oswal, Emkay Global, Sharekhan. Investing in stocks is risky and investors should do their own research. The author, the brokerage firms or Greynium Information Technologies are not responsible for any losses incurred due to a decision based on the above article. Investors should hence exercise due caution as are at record peaks. Please consult a professional advisor.
In a usual case for filing ITR for the previous financial year i.e. currently FY 2021, Assessment year (2021-2022), the income tax return has to be mandatorily filed by July 31 or the due date for most cases/individuals barring few is July 31. Nonetheless, the CBDT taking into account the disruption caused due to the coronavirus pandemic has allowed various relaxations and hence the ITR filing can also be made by an extended date of up to September 30, 2021.
Income Tax Portal Levying Late Fee For ITR Filing: Is It Valid?
Nonetheless, the income tax portal is charging late fee despite the relaxation in income tax filing due date.
Is the late fee being charged for filing ITR for FY21 is valid?
It is being observed that despite the relaxation in ITR filing due date and even when the taxpayers have filed their ITR for FY21 in the last few days, the tax portal is charging a late filing fee. Tax-filers are taking the issue on the social media and asking the department to remove the same from the portal.Why is this happening?
Why the income tax portal is charging late fee for ITR filing despite relaxation?
Experts see it to be a technical error whereby the department of income tax has not updated the extended deadline to file ITR for the FY21 in the tax filing system.
What should tax-filers do?
Tax experts suggest to wait and watch till the Central Board of Direct Taxes (CBDT) resolves the issue. This is because as the tax filing of a return is not possible without paying the penalty in lieu of late filing of tax return, which is though not the case here.
Late ITR filing penalty rules in a usual case
–Interest under Section 234A
In a case if you have not filed the ITR by the due date or missed the deadline and when you have to make some outstanding tax payment to the department, and on the unpaid taxes amount you will be charged an interest of 1% per month or part of the month. The interest shall be levied or applicable from the due date that applies in your case till the time you actually file the return.
Illustration Mr. Kumar is running a medical store. The due date for filing the return of income in his case is 31st July. He filed his return of income on 3rd December. Tax liability of Mr. Kumar for the year is Rs. 28,400 (which is paid on 3rd December). Advance tax paid by him is Rs. 15,000 and he has TDS credit of Rs. 5,000. Will he be liable to pay interest under section 234A, if yes then how much? Mr. Kumar has filed his return of income after the due date i.e. after 31st July and hence, he will be liable to pay interest under section 234A. Interest will be levied at 1% per month or part of the month. The due date of filing the return of income is 31st July and the return of income is filed on 3rd December and hence, there is a delay of 4 months and 3 days. Part of the month i.e. 3 days will be considered as full month and hence, interest will be charged for a period of 5 months. Interest will be levied at 1% per month on Rs. 8,400 (*) for 5 months. Thus, interest under section 234A will come to Rs. 420.
(*) Advance tax of Rs. 15,000 and TDS of Rs. 5,000 are to be deducted from the tax liability of Rs. 28,400, hence, net liability after deducting advance tax and TDS will come to Rs. 8,400. Thus, interest will be levied on Rs. 8,400.
Note the illustration is taken from Income tax web site.
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Direct Plan: IT pack has been the outlier for many years and this is imminent from this ICICI Prudential fund i.e. invested into IT and technology dependent companies. The fund aims to offer capital appreciation to its investors. The fund with an asset size of over Rs. 3494 crore carries an expense ratio of over 1%.
Since its launch in 2013 the fund has provided a return of 26.95%. SIP in the fund can be started for Rs. 100, while for minimum lump sum payment one needs to shell out Rs. 5000.
Top holdings of the fund include Infosys, Tech Mahindra, TCS, HCL, Persistent Systems, IRCTC, Coforge etc.
Interestingly, Rs. 1 lakh investment as lump sum in this fund has trebled in value to Rs. 3.65 lakh in 5 years, while SIP of Rs. 10000, amounting to Rs. 6 lakh in 5 years is valued at Rs. 15.76 lakh.
2. Quant Small Cap-Direct Plan-Growth:
This fund is a very high risk high return plan with 3/4th of the fund’s corpus put in small cap stocks. The Rs. 700 crore fund carries an expense ratio of 0.5% lower than the category average
Since its launch the fund has offered a return of over 17% and its benchmark is NIFTY Smallcap 250 TRI. Some of the top holdings of the mutual fund are The India Cements, Indiabulls Real Estate, EID Parry, Fortis, Shree Renuka Sugars, HFCL etc.
SIP in the fund can be started for Rs. 1000. And here as we talk of the returns, in 5-years time the fund’s SIP has yielded a return of 39.96%, fetching Rs. 15.67 lakh on an investment of Rs. 6 lakh ( started as monthly SIP of Rs. 10000 for 5 years). This fund is accorded a 4-Star rating by Morning Star.
3. Tata Digital India Fund – Direct Plan
This is again a thematic fund focused on technology. The IT fund from the Tata mutual fund commands a fund size of Rs. 1796.6 crore. The expense ratio of the fund is also lower than the category average at 0.67%. Tata Digital India fund was launched in the year 2015 and since then has offered a return of over 25%.
SIP in the fund can be started for just Rs. 150 and some of the top holdings of the fund include Infosys, TCS, Tech Mahindra, Persistent Systems and HCL among others.
Conclusion
Now as is noteworthy here that technology and small cap funds are the main categories that have generated the best five year returns in last 5-years. Though, IT sector will still see boom going ahead because of the heightened adoption of technology and will be generating multi-bagger returns. Investors who are not highly aggressive should rather avoid small cap funds and instead can go by multi-cap funds. Also, another thing when determining whether you should or not consider these top performing mutual funds can be the consistency in their returns.
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Disclaimer:
Mutual fund investments are market related and subject to risk. Returns on mutual funds for the last 5-years are provided just for knowledge sake and should not be construed as investment advice.
For varying investment goals i.e. short-term goal, mid-term goal as well long-term goal, fixed deposit investments are the most secure option to invest under the debt category. Fixed deposit options come with a range of benefits such as guaranteed returns, additional rates for senior citizens, tax benefits if invested for 5 years, deposit insurance cover provided by DICGC, and so on. But do you know you can get free medical benefits and emergency services along with attractive returns if you open a Health Plus Fixed Deposit Account offered by DCB Bank? To know more about the features and benefits of this deposit account, keep on reading to settle for a conclusion.
Features of DCB Health Plus Fixed Deposit
This fixed deposit account can be opened by resident individuals.
This fixed deposit account can be opened with a minimum amount of Rs 10,000 only for a tenure of 700 days.
A resident individual must fall under the age limit of 18 years to a maximum of 70 years (completed, but less than 71 years) to open an account.
A primary account holder can open up to 4 DCB Health Plus Fixed Deposits, according to the bank.
Other benefits such as partial & premature withdrawal are also allowed under this deposit.
Under the ICICI Lombard Group Take Care Insurance Plan, you can get free medical benefits and emergency assistance with this fixed deposit account.
You can get consultations from doctors approved by the insurance provider (ICICI Lombard General Insurance Company Ltd.), consultations from doctors appointed by the insurance provider, pharmacy options based on the consultation, and ambulance and other emergency services with this fixed deposit account.
Free medical benefits and emergency services offered with DCB Health Plus Fixed Deposit
The following are the free medical benefits and emergency services provided by the ICICI Lombard Group Take Care Insurance Plan, which is available with a DCB Health Plus Fixed Deposit account.
DCB Health Plus Fixed Deposit Amount
General Physician / Specialist / Hospital OPD
Prescribed Pharmacy Expenses
Emergency Service (Ambulance)
Teleconsultation
Face-to-Face Appointment
Rs 25 lakh and above
10
10
Rs 3,000
Unlimited
Rs 10 lakh to less than Rs 15 lakh
10
6
Rs 1,500
Unlimited
Rs 5 lakh to less than Rs 10 lakh
10
4
Rs 1,000
Unlimited
Rs 3 lakh to less than Rs 5 lakh
10
2
Rs 500
–
Rs 1 lakh to less than Rs 3 lakh
8
2
–
–
Rs 10,000 to less than Rs 1 lakh
4
0
–
–
Source: Bank Website
Interest Rates of DCB Health Plus Fixed Deposit
A DCB Health Plus Fixed Deposit account can only be opened up to a tenure of 700 days. With effect from 15 May 2021, below are the most recent interest rates provided by DCB Bank on deposits of less than Rs 2 Cr.
Tenure
Regular FD Rates
Senior Citizen FD Rates
7 days to 14 days
4.55%
5.05%
15 days to 45 days
4.55%
5.05%
46 days to 90 days
4.50%
5.00%
91 days to less than 6 months
5.25%
5.75%
6 months to less than 12 months
5.70%
6.20%
12 months to less than 15 months
5.80%
6.30%
15 months to less than 18 months
6.00%
6.50%
18 months to less than 700 days
6.00%
6.50%
700 days
6.40%
6.90%
Source: Bank Website
Points to note
To open a DCB Health Plus Fixed Deposit account, one needs to submit his or her PAN details.
To open a DCB Health Plus Fixed Deposit, you must first register with the bank with your mobile number and email address.
The insurance company is responsible for providing health insurance services. The individual can choose whether or not to use the above-discussed features. The bank is not accountable or liable for the insurance provider’s health insurance services, according to the official website of the bank.
To use the health insurance services, you must first download the ‘IL Take Care’ mobile app from the default app store of your mobile.
Before opening a DCB Health Plus Fixed Deposit account it is recommended to read the applicable terms and conditions and for more information, you can visit https://www.dcbbank.com/dcb-health-plus-fixed-deposit
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Story first published: Tuesday, August 3, 2021, 14:27 [IST]
New Delhi, Aug 3 (PTI) E-commerce beauty company Nykaa has filed preliminary papers with capital markets regulator Sebi to raise funds through an initial share-sale. The initial public offering (IPO) comprises fresh issue of equity shares worth Rs 525 crore and an offer for sale of 4,31,11,670 equity shares by the selling shareholders, according to draft red herring prospectus (DRHP).
Proceeds of the fresh issue will be used towards investment in certain subsidiaries — FSN Brands or Nykaa Fashion — to set-up new retail store, capital expenditure, repayment of debt, to enhance the visibility and awareness of its brands and general corporate purposes.
Founded in 2012, the company is a digitally native consumer technology platform, delivering a content-led, lifestyle retail experience to consumers.
The company has a diverse portfolio of beauty, personal care and fashion products, including its owned brand products manufactured by it.
Kotak Mahindra Capital Company, Morgan Stanley India Company, BofA Securities India, Citigroup Global Markets India, JM Financial and ICICI Securities have been appointed as merchant bankers to advise the company on the IPO.
The equity shares of the company will be listed on BSE and NSE. PTI SP ANS ANS
Emkay Global has a buy on the stock of NTPC, with a solid price target of 50% from the current level. NTPC reported nearly flat earnings due to higher deferred tax, although generation was up 19% yoy. NTPC has commissioned 1.4GW/2.6GW capacity over the last one year at standalone and group level, respectively.
Current market price
Rs 117.50
Target price
Rs 180
“While the high concentration of coal-thermal projects had raised ESG concerns on the company, we see incremental efforts toward RE expansion. This, along with an improvement in the RoE profile, should lead to a re-rating in the stock.
In the past 5 years, the company has traded at an average PB of 1.1x and RoE of sub-11%. With RoEs moving to 12.5%, a re-rating should happen, in our view. Maintain Buy with a Sept’23E target price of Rs 180, at an implied price to book multiple of 1.21 times, Emkay global has said
HDFC
Motilal Oswal has set a solid price target of 34% on the stock of HDFC. The firm believes the stock can rally as much as Rs 3,290, from the current market price of Rs 2,462.
Current market price
Rs 2462
Target price
Rs 3290
According to the brokerage firm, HDFC’s core profit before tax grew 12% year-on-year to Rs 32.2 billion, beating estimates by 5%. Net Interest Income (ex-assignment income) at Rs 41.3 billion was 2% above our estimate. “On the other hand, provisions at Rs 6.9 billion were lower than our estimates of Rs 8 billion. Better-than-expected marked to market gains on investment led to an 11% beat on reported net profits (down 6% QoQ / 2% YoY),” the brokerage has said.
Buy HDFC with an SOTP based target price of Rs 3,290
According to Motilal Oswal Institutional Equities, HDFC continues to maintain elevated provisions and the total buffer stands at 2.64% of loans.
During the quarter, HDFC restructured loans worth Rs 7.78 billion (15 basis points of assets under management). Sixty two per cent of the restructured advances is from the Non-individual segment and largely pertains to just one account, which forms 50 basis points of assets under management.
“We increase our FY22E/FY23E estimates by 7-8%, factoring in higher net interest income and non-core income. We expect HDFC to report core RoA/RoE of 2%/13% over FY22-23E. Reiterate Buy, with SOTP-based target price of Rs 3,290 (FY23E SOTP based), Motilal Oswal has said in its report.
Disclaimer
Investing in stocks poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage houses are not liable for any losses caused as a result of decisions based on the article. Investors should take care because the markets are near record highs.
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