4 Best 5-Year Fixed Deposits With Interest Rates Up To 7.25%

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Suryoday Small Finance Bank Fixed Deposit

Among the small finance banks, Suryoday Small Finance Bank is currently providing the highest interest rates to both regular and senior citizens. For a deposit period of 5 years, the bank is now giving an interest rate of 7.25% to regular customers and 7.75% to senior citizens which are much higher than the interest rates of leading private and commercial banks. For a deposit amount of less than Rs 2 Cr, here are the most recent interest rates on FD of Suryoday Small Finance Bank.

Tenure Regular FD Rates Senior Citizen FD Rates
7 days to 14 days 4.00% 4.50%
15 days to 45 days 4.00% 4.50%
46 days to 90 days 5.00% 5.50%
91 days to 6 months 5.50% 6.00%
Above 6 months to 9 months 6.00% 6.50%
Above 9 months to less than 1 Year 6.25% 6.75%
1 Year to 2 years 6.75% 7.25%
Above 2 Years to 3 Years 7.00% 7.50%
Above 3 Years to less than 5 Years 7.10% 7.60%
5 Years 7.25% 7.75%
Above 5 years to 10 years 6.50% 7.00%
Source: Bank Website, W.e.f. 15.02.2021

Utkarsh Small Finance Bank Fixed Deposit

Utkarsh Small Finance Bank Fixed Deposit

On a deposit amount of less than Rs 2 Cr for a period of 5 years, this small finance bank is now giving an interest rate of 7% to the general public and 7.50% to senior citizens. With effect from October 19, 2020, the below listed fixed deposit interest rates of Utkarsh Small Finance Bank are in force.

Tenure Regular FD Rates Senior Citizen FD Rates
7 Days to 45 Days 3.00% 3.50%
46 Days to 90 Days 3.25% 3.75%
91 Days to 180 Days 4.00% 4.50%
181 Days to 364 Days 6.00% 6.50%
365 Days to 699 Days 6.75% 7.25%
700 Days 7.00% 7.50%
701 Days to 3652 Days 6.75% 7.25%
Source: Bank Website

Jana Small Finance Bank Fixed Deposit

Jana Small Finance Bank Fixed Deposit

Jana Small Finance Bank is currently offering interest rates of 6.75 per cent to the general public and 7.25 per cent to senior people on deposits of less than Rs 2 Cr for a term of 5 years. Here are the current fixed deposit interest rates of Jana Small Finance Bank which are in force from May 7, 2021.

Tenure Regular FD Rates Senior Citizen FD Rates
7-14 days 2.50% 3.00%
15-60 days 3.00% 3.50%
61-90 days 3.75% 4.25%
91-180 days 4.50% 5.00%
181-364 days 5.50% 6.00%
1 Year[365 Days] 6.25% 6.75%
> 1 Year – 2 Years 6.50% 7.00%
>2 Years-3 Years 6.50% 7.00%
> 3 Year- 6.75% 7.25%
5 Years[1825 Days] 6.50% 7.00%
> 5 Years – 10 Years 6.00% 6.50%
Source: Bank Website

Ujjivan Small Finance Bank Fixed Deposit

Ujjivan Small Finance Bank Fixed Deposit

On deposits of less than Rs 2 Cr for a duration of 5 years, Ujjivan Small Finance Bank is now providing interest rates of 6.75 per cent to the general public and 7.25 per cent to senior citizens. Here are Ujjivan Small Finance Bank’s current fixed deposit interest rates, effective from March 5, 2021.

Tenure Regular FD Rates Senior Citizen FD Rates
7 Days to 29 Days 3.05% 3.55%
30 Days to 89 Days 4.05% 4.55%
90 Days to 179 Days 4.80% 5.30%
180 Days to 364 Days 5.20% 5.70%
1 Year to 2 Years 6.50% 7.00%
2 Years and 1 Day to 3 years 6.75% 7.25%
3 Years and 1 Day to 5 Years 6.75% 7.25%
5 Years and 1 Day to 10 Years 5.80% 6.30%
Source: Bank Website

Conclusion

Conclusion

The first step in selecting a fixed-term deposit option is to evaluate the interest rates offered by different lenders. The interest rate is decided by a number of criteria, such as the amount of the deposit, type of applicant, i.e. regular citizen or senior citizen, and the period chosen. Small Finance Bank FDs are also insured by DICGC deposit insurance of Rs. 5 lakh, which lowers the security aspect of the investors, particularly for senior citizens. Hence, investing in Small Finance Bank Fixed deposits can be a secure investment choice for risk-averse individuals looking for a consistent way to increase their wealth. You will not only hold the highest FD rates, variable tenures, and periodic payouts option, but you will also receive assured returns that are not influenced by market volatility.



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7 Best Cement Stocks To Invest With Top PE And EPS Fundamentals 2021 in INdia

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Importance of PE And EPS Fundamentals in Stocks

Even if you do not adopt the key valuation ratios, it is typically advisable to have a solid knowledge of them in order to follow and better understand stock prices. The price-to-earnings ratio (P/E) and earnings per share (EPS) are two important terms.

Earnings per share: The net income received by the corporation is divided by the number of outstanding shares issued to arrive at this figure.

The Earnings per Share is calculated by dividing a company’s profits or earnings by the total number of outstanding shares of stock (ttm). The abbreviation EPS refers for Earnings per Share, and the “ttm” refers for Trailing Twelve Months. This means that EPS (ttm) represents the company’s overall earnings or profits for the previous 12 months.

P/E ratio: The P/E ratio is calculated by dividing the stock price by the earnings per share.

For example, if a stock’s current price is Rs. 100 and it has earned Rs. 5 per share (EPS) for its shareholders in the last 12 months, the stock’s current price is Rs. 100. The P/E ratio is calculated as 100/5=20.

It is not suggested to purchase stocks with high PE ratios, which indicate that the company is overvalued, because the stock could ruin your wealth to the point of no recovery if and when the stock falls.

Cement Sector Outlook

Cement Sector Outlook

Cement businesses in India reported a strong increase in profitability in the second quarter of FY21, as demand for the industry grew due to rural revival. The demand outlook remained solid as the rural markets normalized. CLSA anticipates a 14% YoY increase in EBITDA in the cement sector for its coverage stocks in FY21. Due to increased demand in various areas like as housing, commercial development, and industrial expansion, the cement industry is expected to reach 550-600 million tonnes per annum (MTPA) by 2025..

Cement Growth Stocks: Shree Cement

Cement Growth Stocks: Shree Cement

Shree Cement was established in 1979, and company headquarters are in Kolkata. Shree Cement is regarded as India’s third-largest cement company. Bangur Cement and Rokcstrong Cement are two brands owned by Shree Cement. Up until 2014, the company’s capacity was concentrated in northern India, but it has since expanded to include Rajasthan, Uttarakhand, Bihar, Chhattisgarh, Haryana, Uttar Pradesh, and Karnataka. Stock gained 74.76 percent over three years, compared to 44.34 percent for the Nifty 100 index. It is a Large Cap firm in the Cement sector with a market cap of Rs 102,779.26 Crore. The company is one of the most prolific in the cement sector. Despite the entrance of new cement players through recent inorganic techniques, Shree Cements maintains its dominant position in northern regions.

HIL

HIL

HIL Ltd., founded in 1955, is a Small Cap business in the Building Materials industry with a market cap of Rs 3,487.63 crore. The company reported a Consolidated Total Income of Rs 846.98 Crore for the quarter ended 31-03-2021, up 4.72 percent from the previous quarter’s Total Income of Rs 808.82 Crore and up 30.14 percent from the same period last year’s Total Income of Rs 650.84 Crore. In the most recent quarter, the company generated a net profit after tax of Rs 62.73 crore. Stock returned 131.7 percent over three years, compared to 26.45 percent for the Nifty Smallcap 100.

Ultratech Cement

Ultratech Cement

The company Ultratech Cement was founded in 1983 and is headquartered in Mumbai, India. Ultratech Cement is the country’s largest grey cement producer. It is widely regarded as the best cement producer in the country. This company is a subsidiary of the Aditya Birla Group and is one of the top companies in the cement industry. On a quarterly and annual basis, the company recorded an increase in total income. The total income for the March 31, 2021 quarter was Rs 14465.94 crore, up 15.52 percent quarter on quarter and 32.19 percent year on year.

The company operates in nations such as the United Arab Emirates, Bahrain, Sri Lanka, and Bangladesh. The firm is also a major producer of RMC and white cement.

Cement Growth Stocks: ACC

Cement Growth Stocks: ACC

With a pan-India operating and marketing presence, ACC Limited is a significant participant in the Indian building materials business. The company was formerly known as Gujarat Ambuja Cements Ltd, but was later renamed Ambuja Cements Ltd. Holcim, a worldwide cement company, took over management control of the company in 2006. Holcim currently owns a bit more than half of ACL. The company ACC Cement was formed in 1936 and is headquartered in Mumbai, India. The Associate Cement Company was once known as ACC cement. It is one of the leading cement manufacturing companies in the country.

Cement Growth Stocks With Highest EPS Fundamentals

Cement Growth Stocks With Highest EPS Fundamentals

Company Stock Price Market Cap EPS (TTM) in Rs
Shree Cement 28,165.90 1.02LCr 633.54
HIL 4,572.05 3,425.63 346.68
Ultratech Cement 6,587.40 1,90,148 186.78
ACC 2,020 37,942.42 88.92

Cement Growth Stocks With Highest EPS Fundamentals

Cement Value Stocks: NCL Industries

Cement Value Stocks: NCL Industries

The top Cement stocks with the best accessible price-earnings ratio are listed below (trailing).

NCL Industries Ltd., founded in 1979, is a Small Cap business in the Cement sector with a market capitalization of Rs 978.61 crore. The company reported a Consolidated Total Income of Rs 370.92 Crore for the quarter ended December 31, 2020, up 6.10 percent from the previous quarter’s Total Income of Rs 349.59 Crore and up 77.30 percent from the same quarter last year’s Total Income of Rs 209.21 Crore. In the most recent quarter, the company generated a net profit after tax of Rs 41.59 crore. Stock returned 20.35 percent over three years, compared to 26.45 percent for the Nifty Smallcap 100. The company has give Rs 4 as dividend per share.

JK Cements

JK Cements

JK Cement is a high-end firm that specialises in high-quality cement. This cement company has a large client base all over the country and is rapidly increasing its commercial boundaries. The JK cement PE ratio stands at 30.61.

Deccan Cement

In India, Deccan Cements Limited produces and sells cement. Ordinary Portland, Portland pozzolana, and Portland slag cement are available, as well as specialty cement such as rapid hardening, sulfate resistance, high alumina, and oil well cement, as well as 53-S grade ordinary Portland cement, which is used in railway applications. The Deccan cement PE ratio stands at 6.78.

10 Best Cement Stocks By Market Capitalizaton

10 Best Cement Stocks By Market Capitalizaton

Company Last Price Market Cap(Rs. cr)
UltraTech Cement 6,585.70 190,098.47
Shree Cements 28,233.10 101,867.14
Ambuja Cements 338.85 67,283.59
ACC 2,020.70 37,946.17
Dalmia Bharat 1,835.70 34,349.16
Ramco Cements 1,015.40 23,952.27
J. K. Cement 2,774.95 21,441.55
JK Lakshmi Cem 560.00 6,589.52
India Cements 191.45 5,932.98
Heidelberg Cem 248.65 5,634.74

Disclaimer

Disclaimer

Market performance is subject to risk, and past performance is not a guarantee of future success. Trading and investing in securities markets, such as equities, derivatives, commodities, and currencies, have a significant risk of loss. GoodReturns is not a broker/dealer, we are not an investment advisor.



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Millennials are killing it… Don’t LOL, BFSI News, ET BFSI

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– By Tarika Sethia

They are not just young but their choices are too unusual. While the traditional investors are still confused over cryptocurrency, millennials have already found solace in it.

Millennials investing in crypto

Vartika, a 28-year-old girl living in Mayur Vihar, Delhi, has seen hundreds of videos on YouTube which are related to cryptocurrency investments. She has invested in bitcoin and also made some money.

“I understood what cryptocurrency is by watching videos and decided to invest in it,” she said.

Around one crore investors are holding over $ 1 billion of cryptocurrency investments in India and the majority of them are millennials.

About 62% of users at WazirX, India’s biggest cryptocurrency exchange, are below 34 years of age. According to CoinDCX’s report titled ‘Mood of the Nation- 2020’, 71% of respondents below the age of 35 had invested in crypto at least once.

According to the CNBC Millionaire survey, more than 33% of millionaire investors belonging to the millennial generation have over half their wealth in cryptocurrencies. As mainstream and quotidian as it gets, it becomes essential to ask why some Indian millennials are throwing all their savings into a volatile virtual currency that they cannot afford to lose or is it just an alternate investment.

Cryptocurrency and Millennials

All these numbers shed light on the curious eyes of the millennial demography. The notion of crypto being a young person’s asset choice isn’t a farce. However, the question remains, why? While the equity markets were touching fresh lows each day during the Covid lockdown in 2020, cryptocurrencies kept rallying. It was 2020 when many began surfing the crypto wave. Work from home expanded the opportunity to do more than just work and allowed some free time to people leading to huge clamour for ‘meme’ stocks on social media. Fear Of Missing Out (FOMO) has made millennials dash for a chunk of the crypto pie.

Two things are attracting millennials towards cryptocurrencies. First, everything is digital and can be processed seamlessly on the smartphone. Second, it fetches high returns which no other asset class seems to offer.

“I have done my calculations. There are high chances that I will earn far more than what I invest,” said Syed, a 25-year-old intern in a private company.

Living in a digital world, convenience leaves millennials drooling. With copious platforms emerging for crypto trading and each one of them innovating to provide a better user experience, investing and trading has become easier. Brisk KYC to instant crypto purchases, investing in digital currency has become swift and seamless. It is the gift of having everything at your fingertip.

Millennials are not risk-averse

With skyrocketing growth and hard-hitting falls, cryptocurrencies are not for the risk-averse. Millennials are still young enough to afford risking a part of their investment into highly oscillating asset classes, as advised by financial advisors and influencers on Instagram and YouTube. This isn’t very fresh advice but has always lingered in the investment world. However, now it has welcomed a new asset class. This ideology served with the appeal of building wealth faster encourages this bracket to run towards crypto.

Cryptocurrency and regulations

Neither the government nor the regulator has taken any firm stand on cryptocurrencies yet. The crypto exchanges are trying their best to convince the regulator. While India’s central bank has clearly stated that they have issues against cryptocurrency, the Finance Ministry has a different view.

“We want to make sure there is a window available for all kinds of experiments which will have to take place in the crypto world. The world is moving fast with technology. We cannot pretend we don’t want it,” said, Nirmala Sitharaman, Finance Minister.

Cryptocurrency and Global Push
The virtual currency has been dancing over tweets and has even attracted eyeballs of governments from El Salvador to India.

The curiosity about crypto is all over the world. It reached a new high when Tesla founder Elon Musk joined the race. In fact, after a drastic fall, Bitcoin soared this week after Musk’s tweets again favour the crypto.

Moreover, the European Investment Bank (EIB) issued its first digital bond on the Ethereum blockchain, in April this year. Richard Teichmeister, the head of funding at the EIB called the blockchain technology “revolutionary”. Dogecoin that started as a meme currency shot up in value when the tech billionaire Elon Musk tweeted about it.



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World Bank rejects El Salvador request for help on Bitcoin implementation, BFSI News, ET BFSI

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The World Bank said on Wednesday it could not assist El Salvador‘s bitcoin implementation given environmental and transparency drawbacks.

“We are committed to helping El Salvador in numerous ways including for currency transparency and regulatory processes,” said a World Bank spokesperson via email.

“While the government did approach us for assistance on bitcoin, this is not something the World Bank can support given the environmental and transparency shortcomings.”

Earlier on Wednesday, Salvadoran Finance Minister Alejandro Zelaya said the Central America country had sought technical assistance from the Bank as it seeks to use bitcoin as a parallel legal tender alongside the U.S. dollar.

El Salvador’s government did not immediately respond to a request from Reuters regarding the World Bank’s decision.

The minister also said ongoing negotiations with the International Monetary Fund had been successful, although the IMF said last week it saw “macroeconomic, financial and legal issues” with the country’s adoption of bitcoin.

Zelaya said on Wednesday the IMF was “not against” the bitcoin implementation. The IMF did not respond to a request for comment.

Investors have recently demanded higher premiums to hold Salvadoran debt, on growing concerns over the completion of the IMF deal, key to patching budget gaps through 2023.

On Wednesday, bonds sold off across the curve, with the 2032 issue down more than 2 cents at 96.25 cents on the dollar. The spread of Salvadoran debt to U.S. Treasuries dipped to 705 basis points after hitting on Tuesday a four-month high of 725 bps.

“There is no fast track for a solution on an IMF program and even uncertainty on whether the bitcoin proposal is compatible with diplomatic U.S. (or) multilateral relations,” said Siobhan Morden, head of Latin America fixed-income strategy at Amherst Pierpont Securities in New York.

El Salvador this month became the first country to adopt bitcoin as legal tender, with President Nayib Bukele touting the cryptocurrency’s potential as a remittance currency for Salvadorans overseas.

This month, Bukele also pulled out of an anticorruption accord with the Organization of American States, which dismayed the U.S. government, as Washington looks to stem corruption in Central America as part of its immigration policy.

“The recognition of a ‘Bukele’ risk premium has probably done some permanent damage to investor sentiment,” Morden said in her client note.

The market may be focusing too much on the news headlines, however, and not enough on the possibility of a deal with the IMF, said Shamaila Khan, head of EM debt strategies at AllianceBernstein in New York.

“It is important for El Salvador to get the IMF program done. If it was lost on them, they wouldn’t have the conversations,” she said.

“Our view is too much risk is priced in at these levels.”



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EPFO Allows Members To Avail COVID Advance Facility After Quitting Job, Check Details

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PF advance rules for COVID-19

The EPFO has particular regulations, paperwork, and procedures for seeking an advance due to COVID-19. The EPFO member can withdraw PF funds up to the amount of basic salary and dearness allowance for three months, or up to 75% of the amount in the EPF account, whichever is less. Furthermore, you can apply for this advance even if you have already received a PF advance for medical or other legitimate requirements. Furthermore, EPFO has declared that taxation is not levied on any EPF Scheme advance. That being said, you can only seek PF advance if you have complete KYC. In case of incomplete KYC, you will be unable to claim PF advance.

When it comes to appropriate or complete KYC, you must ensure that your UAN has been verified with Aadhaar and your bank account details and mobile number has been linked to your UAN. If you have not already done so, you must finalize your KYC by filing it through the EPFO portal. The most essential thing to note here is that your Aadhaar-linked mobile number will receive an OTP when you file your claim online. As a result, your Aadhaar must be linked to your mobile number. For successful linking your Aadhaar with UAN using the eKYC portal, you must ensure that your name, date of birth, and gender, match those in Aadhaar.

Steps to avail the Covid advance facility online

Steps to avail the Covid advance facility online

Follow the steps below, if you want to use the Covid advance facility

  • Visit (https://unifiedportalmem.epfindia.gov.in/memberinterface) and go to the ‘Online Services’ section.
  • Now click on Claim (Form-31,19,10C & 10D).
  • Now enter your bank account number and verify the same.
  • Now click on “Proceed for Online Claim” and select PF Advance (Form 31) from the drop-down menu.
  • Now select the purpose as “Outbreak of pandemic (COVID-19)” from the drop-down list.
  • Now enter the amount that you want to withdraw and upload a scanned copy of the cheque and specify your address.
  • Now click on “Get Aadhaar OTP” and you will get an OTP on your Aadhaar-linked mobile number.
  • Enter the OTP in the required space and verify the same.
  • Click on ‘Submit’ and upon successful verification of your request, you will get a confirmation message on your registered mobile number.

Steps to avail the Covid advance facility using the UMANG app

Steps to avail the Covid advance facility using the UMANG app

To file a Covid claim via the UMANG app, follow the instructions below.

  • Open the UMANG app on your mobile phone and select EPFO.
  • Now tap on “Request for Advance (COVID-19)” and enter your UAN and click on ‘Get OTP’.
  • Now you will get an OTP on your UAN-linked mobile number, enter the received OTP in the required space and sign in to your account.
  • Now enter the last four digits of your bank account and select your member ID from the drop-down list.
  • Now tap on “Proceed for claim” and enter your address.
  • Click on ‘Next’ and upload the scanned copy of the cheque and enter your address details.
  • Your claim will be successfully lodged once all the credentials are verified.
  • It should be noted that the Covid advance facility can only be accessible once. Upon submitting your advance request, you can check the status of the same at https://passbook.epfindia.gov.in/MemberPassBook/Login where you need to click on ‘Track Claim Status’ under the ‘Online Service’ section.



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We’re betting on pick-up in capital expenditure; bullish on SME sector: Rajiv Anand, executive director wholesale banking, Axis Bank

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Rajiv Anand, executive director — wholesale banking, Axis Bank

By Ankur Mishra and Malini Bhupta

Axis Bank is looking at becoming a leader in the wholesale segment and is betting on a pick-up in capital expenditure. Rajiv Anand, executive director – wholesale banking – Axis Bank, tells Ankur Mishra and Malini Bhupta that private capex should pick up in six months and that the bank will play a critical role as the economy gains momentum. Edited excerpts:

Axis Bank wants to become a leader in wholesale banking while most other banks are looking to go easy. Why is that so?

Corporate banks will play a critical role as the economy begins to pick up steam. We have the franchise, the capital, the risk appetite, the people and products to be able to partner our corporate clients as they grow their business.

When do you see the capex cycle picking up?

Globally, the stimulus that central banks have pumped in, a part of it will go into consumption and a part of it will go into building infrastructure. Therefore, we will see demand across products and services. In that context, India will also see an increase in private capex. We are seeing a pick-up in capex in industries, like steel and cement. We are also seeing capex kick-in, as a result of the PLI (Production Linked Incentive) schemes. The second wave has set things back by about six months. The initial phase will be driven by government spending through its ambitious National Infrastructure Pipeline.

One of the things we have noticed is that you are focused on mid-corporates and have an operations playbook for the same. Is there a strategic shift towards mid- corporates?

We define mid-corporate clients as those that have a turnover between Rs 250 to Rs 1,000cr. Here we have a lower share as compared to the overall share of lending. This is something we are looking to fix. We find this segment very attractive for multiple reasons. The opportunity is large and spread across geographies and sectors. This plays to our core philosophy of granularising risk. We also intend to bring our best in class transaction banking capabilities to this segment.

We will continue to work with large corporates with whom we have been working with for a very long time. We want to offer a full suite of services to them and have invested in people and technology to be able to up our game. We want to become the transaction bank of choice for our corporate clients. We have a new service architecture and we are working on providing end-to-end digital solutions to our clients. The fact that our market share across various products like FX, LCs, GST payments etc, is going up is a testimony to the new strategy. Last year 95% of our incremental lending was to A- and better clients. This will continue.

Do you want to scale down on SME book given the stress might be there due to Covid-19 pandemic?

There are around seven crore SMEs and only 10-12% of them avail bank credit. So, first and foremost, you ought to differentiate between SMEs who take credit and SMEs who don’t take credit. What we are seeing at this point in time is that slippages on the SME side, have been well controlled as on March 31, 2021. They are within the range that we want them to be. We may see some pressure because of the second wave, but in general we are very bullish on the SME sector. Ultimately, if India needs to grow, we need the SMEs to grow and provide employment.

Are you focusing more on short-term loans deliberately?

We have traditionally been seen as a term loan lender. What we are looking to do is to bring down term loans as a % of our overall portfolio. Today it will be 70:30, we want to bring it down to 60:40. It is not that we will not do term lending, but we want to certainly increase short term loans, which are typically of working capital in nature. This helps us reduce and at the same time increase engagement with clients while seeking out opportunities for trade finance and other non-credit businesses.

How do you plan to leverage ‘One Axis’ capabilities in the corporate loan segment?

The ability to deliver ‘One Axis’, is a key area of distinctiveness for the corporate bank. Let me give you an example of a transaction we did, where we were the advisor to a company in an M&A transaction. Later when the open offer came, we became the banker to that issue. Then we provided transaction banking capabilities to that client for the open offer. We provided trusteeship through Axis Trustee, and then there was surplus liquidity which was parked in Axis Mutual Fund. Therefore, we are able to provide a one-stop solution through the various arms of the Axis Bank group – taking care of loans and working capital requirements, transaction banking services, investment bank solutions, trusteeship, and working with Axis MF to take in the liquidity. It is the job of the RM to deliver One Axis to his or her clients based on the client’s requirements.

How has your underwriting policies changed during the pandemic?

There were two things which we did. One, we came up with a metric during April of 2020, where we looked at each sector to assess which would bear the maximum impact due to the pandemic and which would take the longest to recover. Just to give you an example, the impact on the pharma industry would be marginal and they would take the least amount of time to get out of it. On the other hand, hotels and airlines would face significantly higher impact and would take longer to recover. Accordingly, we recalibrated our underwriting. We also backed some key clients with whom we had long relationships and were facing an uncertain future. This was important for us because we see ourselves as a relationship bank and long-term relationships are built if you partner with clients when they are most vulnerable.

Overall, do you believe that your wholesale book will do better than last year? Will you be able to see double-digit growth this year?

What we typically guide the Street is that we will grow 500-600 basis points (bps) better than the industry. And we are confident that we will continue to do so.

How do you see the second wave impacting asset quality?

Corporate credit books have gone through a long period of recognition of stress on their portfolios. Corporates, on the other hand, have strengthened their balance sheets by raising and deleveraging. Under these circumstances we don’t see elevated levels of risk on corporate portfolios.

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PFRDA Allows NACH Mandate For NPS Transactions

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Personal Finance

oi-Roshni Agarwal

|

Pension Fund Regulatory and Development Authority (PFRDA) in respect of the pension scheme administered by it i.e. NPS has allowed NACH or National Automated Clearing House mandate to overcome the varied problems concerning fund transfer. Now through this advancement or NACH mandate feature, the entire transaction process involved in NPS will become online for PoP as well as other NPS distributors.

PFRDA Allows NACH Mandate For NPS Transactions

PFRDA Allows NACH Mandate For NPS Transactions

Current fund transfer process in NPS

In the current regime, the nodal offices submit NPS contribution of subscribers by working on a subscriber contribution file (SCF) and then uploading it on the “NPSCAN system” after verification of the same. Later, the nodal officer goes to the accredited bank for transferring the funds (the same amount i.e. shown in the SCF) to the trustee bank.

How central govt. employees can avail benefits under NPS?

New NACH mandate proposed for NPS

To get rid of the various fund transfer related issues, PFRDA has come up with the NACH mandate that is jointly handled by the trustee bank and CRA (central record keeping agency).

GoodReturns.in

Story first published: Wednesday, June 16, 2021, 22:17 [IST]



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Is Gold Hallmark Required When Selling Or Pledging Of Gold Jewellery?

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Is Hallmark Required For Selling Gold?

The hallmarking act will only apply to gold sold to consumers by traders. Customers do not need to get their gold jewellery, coins, or other goods hallmarked before selling or exchanging them. There are no consequences for individuals who store and/or utilise jewellery that has not been hallmarked. Customers will also be able to sell their jewellery at market value depending on its purity. It is possible to exchange gold without having it hallmarked. If a trader refuses to exchange gold, the consumer can take legal action against it.

Gold without hallmark can be pledged?

Gold without hallmark can be pledged?

It doesn’t matter if the jewellery is hallmarked when gold is pledged for financial purposes. As a result, the law does not apply to gold loans as well. Get the relevant information regarding the condition of the gold from the dealer before pledging the gold. Customers will receive the current market price for gold based on its purity and grams. Gold has been used as security by lenders that offer gold loans. They do consider hallmarking to be an extra quality assurance. Lenders evaluate the quality and quantity of gold before lending against it.

Jewellers are subject to mandatory hallmarking. The jewellery you purchased before will not be harmed in any way. There are no consequences for individuals who store and/or utilise jewellery that has not been hallmarked.

Which are the items exempted from hallmarking?

Which are the items exempted from hallmarking?

Watches, fountain pens, and certain forms of jewellery, such as Kundan, Polki, and Jadau, have been exempted from the necessary gold hallmarking.

Articles meant for export that conform to any specification required by the foreign buyer, articles weighing less than two grammes, articles intended for medical, dental, veterinary, scientific, or industrial purposes, articles made of gold thread, gold bullion in any shape of bar, plate, sheet, foil, rod, wire, strip, tube, or coin have been exempted by the notification. Incomplete articles, as well as articles for export, are free from the requirement to be hallmarked.

What are the charges of gold hallmarking?

What are the charges of gold hallmarking?

According to the Bureau of Indian Standards (BIS) website, hallmarking charges for gold jewelry/artefacts payable to BIS recognised Assaying and Hallmarking Centres by BIS licenced jewellers are Rs 35 per article, with a minimum charge of Rs 200 for a consignment. Services tax and other applicable levies are additional.

Regardless of the weight of the jewellery, the hallmarking prices are Rs.35/- +GST per piece for gold jewellery and Rs.25/- +GST per piece for silver jewellery.

Hallmarking of jewellery is required to increase the legitimacy of gold jewellery and customer satisfaction by providing third-party confirmation of gold purity and fineness, as well as consumer protection.

Mandatory Hallmark is applicable for gold bullion/Coins?

Mandatory Hallmark is applicable for gold bullion/Coins?

Only 14 carat, 18 carat, and 22 carat gold jewellery can be hallmarked and sold, and the order only applies to gold jewellery and antiquities. Gold bullion/coins with a fineness of 999/995 are allowed to be hallmarked by BIS-approved refineries/mints (39 licenced refineries are in operation at present as on 01 Jan 2021). The list of BIS licenced refineries/mints may be found under the hallmarking category on the BIS website.



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net direct tax receipts increased by more than 100 percen Despite the COVID-19 outbreak

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Taxes

oi-Sneha Kulkarni

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Despite the economic disruption caused by the COVID-19 pandemic, net direct tax collections for FY 2021-22 have increased at a healthy rate. In the fiscal year 2021-22, refunds totaling Rs 30,731 crore were also issued.

Direct Tax

Direct Tax collections for the Financial Year 2021-22, as of 15.06.2021, indicate net collections of Rs.1,85,871 crore, up from Rs. 92,762 crore in the previous year’s similar period, showing a 100.4 percent increase over the previous year’s revenues.

Net Direct Tax Increased More Than 100% Despite COVID-19 Pandemic

Corporation Tax
Corporation Tax (CIT) at Rs. 74,356 crore (net of rebate) and Personal Income Tax (PIT) and Security Transaction Tax (STT) at Rs. 1,11,043 crore make up the net Direct Tax collections (net of refund).

The gross collection of direct taxes (before refunds) for the fiscal year 2021-22 is Rs. 2,16,602 crore, up from Rs. 1,37,825 crore in the previous year’s similar period. This includes Corporation Tax (CIT) of Rs. 96,923 crore and Personal Income Tax (PIT) of Rs. 1,19,197 crore, which includes Security Transaction Tax (STT).

Advance tax

An advance tax of Rs. 28,780 crore, Tax Deducted at Source of Rs. 1,56,824 crore, Self-Assessment Tax of Rs. 15,343 crore, Regular Assessment Tax of Rs. 14,079 crore, Dividend Distribution Tax of Rs. 1086 crore, and Tax under other minor categories of Rs. 491 crore makes up the minor head collection.

Despite the difficult first few months of the new fiscal year, Advance Tax receipts for the first quarter of FY 2021-22 were Rs. 28,780 crore, up from Rs. 11,714 crore in the same period of the previous fiscal year, representing a 146 percent increase. This includes Rs. 18,358 crore in Corporation Tax (CIT) and Rs. 10,422 crore in Personal Income Tax (PIT). As more information from banks becomes available, this figure is projected to rise.

Story first published: Wednesday, June 16, 2021, 17:09 [IST]



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Tax On Mutual Fund Investments: How Are Different Types Of Mutual Fund Taxed?

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Tax on Equity Funds

Depending on whether the gain on sale is classified as short term or long term capital gains, equity mutual funds are subject to capital gains tax. Both resident and non-resident Indians pay the same capital gains tax rates.

Short-term capital gains (STCG) on the redemption of equity fund units are taxed at a rate of 15%. Long-term capital gains (LTCG) on equities funds up to Rs 1 lakh are tax-free. However, LTCG on stock fund redemptions above Rs 1 lakh is taxed at a rate of 10%, with no indexation benefit.

If the cumulative capital gain in a financial year exceeds INR 1 lakh, an LTCG tax of 10% is imposed on equities funds. When making financial plans, keep in mind that your gains are tax-free up to INR 1 lakh.

Tax on Debt Funds

Tax on Debt Funds

When you sell a debt fund within three years, you generate short-term capital gains. These gains are added to your total income and taxed according to your tax bracket. When you redeem your debt fund assets after three years, you will realize long-term capital gains. After indexation, these profits are taxed at a rate of 20%.

In the case of non-equity funds (debt funds), long-term is defined as a holding period of three years or longer, and a 20% LTCG tax is imposed on such assets with indexation, which means the purchase price is adjusted upwards for inflation when computing capital gains. Profits from investments held for less than three years are subject to the STCG tax, which is the highest income tax bracket for individuals.

Tax on Hybrid or Balanced Funds

Tax on Hybrid or Balanced Funds

Hybrid or Balanced Funds

If a hybrid fund’s equity exposure exceeds 65 percent, the fund is taxed as an equity fund. If not, the provisions for debt fund taxation apply. As a result, you must be aware of the equity exposure before investing in a hybrid fund in order to properly manage your taxes.

How to Save Taxes With Mutual Funds?

How to Save Taxes With Mutual Funds?

The only mutual fund scheme that qualifies for a tax deduction of Rs. 1.5 lakh per year under Section 80C of the Income Tax Act is the Equity-Linked Savings Scheme (ELSS). An ELSS has a 3-year lock-in period, which means that an investment made in it cannot be withdrawn before that time. By investing in an equity-linked savings scheme (ELSS), the top tax-saving investment under Section 80C, you can save up to Rs 46,800 each year in taxes. The majority of ELSS mutual funds’ assets are allocated to equities and equity-linked securities.

How Mutual Fund Dividend is Taxed?

How Mutual Fund Dividend is Taxed?

When it comes to dividends received from equities mutual funds, investors have no tax burden. Dividends, on the other hand, reach investors after a deduction of 11.648 percent Dividend Distribution Tax (DDT) (including surcharge and cess), lowering the overall in-hand return.

Debt mutual fund distributions are tax-free in the hands of the investor, but dividend disbursements are subject to a 29.12 percent dividend distribution tax (including cessation and surcharge). This effectively lowers the in-hand returns of investors.

At the time of unit redemption, a Securities Transaction Tax (STT) of 0.001 percent is imposed on equity-oriented mutual funds. STT is taken from mutual fund returns, so an investor does not have to pay it separately.

Why do investors have to pay fees to fund houses?

Why do investors have to pay fees to fund houses?

Mutual funds, as previously stated, are managed by experts known as fund managers. Managing large investments on a daily basis necessitates extensive industry knowledge, topic understanding, and a great deal of passion. As a result, the AMC charges the investors a well-deserved fee, which is approved by the Securities and Exchange Board of India (SEBI).

The total expense ratio (TER) is the cost imposed by a mutual fund scheme to manage an investor’s investments on their behalf. Management fees, administrative expenditures, and distribution fees are the key components of the expense ratio, which is charged annually.

Tax on Systematic Investment Plan (SIP) Investment

Tax on Systematic Investment Plan (SIP) Investment

Unlike lump sum investments, which are made all at once, SIP instalments are made over a period of time. While we may consider a one-year SIP to be a single investment. Each payment is treated as a new investment for tax purposes. As a result, each instalment’s holding period is determined.

Since they are classified as equity funds for tax reasons because their equity component exceeds 65 percent, the tax treatment stated for equity funds will also apply to balanced funds and arbitrage funds. In the case of debt funds, however, the SIP will continue to use the FIFO mechanism when selling SIP units. The main distinction is that holdings of less than three years are considered short term capital gains and are taxed at your highest rate. Any holding period of more than three years will be considered as long-term capital gains, which will be taxed at a lower rate of 10%. (or 20 percent with indexation benefits).



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