Get Bank IFSC & MICR codes here.
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Understanding and managing personal finance is not everyone’s cup of tea. Nonetheless, an easy access to information available today has provided a much needed lift in the area and has acquainted people with basic know how on the subject say for
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Every individual whose assessed tax due for the year is more than or equivalent to Rs 10,000 is entitled to pay advance tax, according to section 208 of the Income Tax Act 1961. Senior persons over the age of 60 who do not have any income from a business or profession are exempt from paying advance tax. In most cases, businessmen and professionals are required to pay advance tax because they have income from sources where tax is not deducted at the source in line with the income tax slab.
If a salaried individual gets incomes other than salary, he or she may be required to pay advance tax. Many salaried people have other sources of income, such as interest from bank and post office deposits, dividends, capital gains or have rental or business income. In this case, a salaried individual having income from other sources is required to evaluate his or her gross income from other sources and pay advance tax if the overall tax debt on such income exceeds Rs 10,000 after calculating tax deducted at source (TDS).
According to the Act, taxpayers must pay advance tax in four instalments of 15%, 45 per cent, 75%, and 100% on or before June 15, September 15, December 15, and March 15. Individuals who declare their earnings under the Presumptive Taxation Scheme (PTS) must pay the appropriate advance tax in one instalment on or before March 15. PTS, as defined in Section 44AD of the Act, enable a businessman or professional to submit returns depending on an anticipated income. Any advance tax paid on, or before 31 March is also classified as advance tax paid throughout the fiscal year.
| Due date | Advance tax payable |
|---|---|
| On or before 15th June | 15% |
| On or before 15th September | 45% |
| On or before 15th December | 75% |
| On or before 15th March | 100% |
Challan No. ITNS 280 is the form that must be completed and submitted before the due dates. Prerequisites Challan No. ITNS 280 are personal identification number (PAN) details, assessment year, and payment type (advance tax or self-assessment tax). Following payment, a Challan Identification Number (CIN) will be issued. You must maintain a record of this CIN and use it when submitting your income tax return. Also, confirm that the IT department has acknowledged the online payment submitted via ITNS 280. To pay advance tax online, go to the income tax department’s website at www.incometaxindia.gov.in and select the e-Pay taxes link and you will be required to the portal of National Securities Depository Ltd (NSDL). Click on challan no./ITNS 280, enter the necessary details, and complete the payment.
You can seek a rebate under Section 80C while calculating your income for the purpose of calculating your advance tax. An NRI is also required to pay advance tax on income generated in India in accordance with the provisions of the Income Tax Act in effect for the applicable assessment year. If you miss paying your advance tax debt on or before the due dates specified, the unpaid amount will be subject to penal interest under Section 234 of the Income Tax Act.
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Step 1 Visit New Income tax Website
Step 2: Click on Our Services
Step 3: Scroll down and click Show more
Step 3: Click inStant E PAN
Step 4: Click on Get New E PAN
Step 5: Enter your Aadhaar Number or PAN enrollment number
Note that your aadhaar number should be mapped with your mobile number
Step 6: Accept Terms and Conditions
Step 7: Enter OTP and Click on Continue
Step 8: Check details
Step 9: Enter your E mail ID and confirm the same
Step 10: Confirm.
A person can only use the instant PAN facility if the following conditions are met:
1. He or she has never had a PAN assigned to them.
2. His or her Aadhaar number is connected to his or her mobile number.
3. The Aadhaar card contains his or her entire date of birth.
4. He or she must not be a minor at the time of applying for a PAN.
Step 1: Click on the Icon
Step 2: Enter aadhaar number and click on Continue
Step 3: Enter OTP
Step 4: It displays PAN status
Step 5: Click on either view e PAN or Download e PAN
The PAN allows the department to identify and relate all of the PAN holder’s dealings with the department. Tax payments, TDS/TCS credits, income returns, defined transactions, communications, and so on are examples of these transactions. It allows for easy retrieval of PAN holder information as well as matching of various investments, borrowings, and other commercial activity.
If you want to cancel or surrender your PAN, you must submit a cancellation/ surrender request letter to your local Income Tax Assessing Officer.
A person can only have one PAN at a time. For holding more than one PAN, a penalty of Rs. 10,000/- is required to be imposed under section 272B of the Income-tax Act, 1961.
If a person has been assigned more than one PAN, he must relinquish the additional PAN card immediately (s).
Fill in all essential fields in the Form, input the PAN to be cancelled in the appropriate column of the Form, and check the check box on the left margin to cancel the PAN. The PAN to be cancelled should not be the same as the PAN specified at the beginning of the Form (the one currently in use).
In this scenario, one can obtain his PAN by utilising the Income Tax Department’s “Know Your PAN” service. This service is available on the Income Tax Department’s website, www.incometaxindia.gov.in.
A person’s PAN can be obtained online by giving basic information such as his name, father’s name, and date of birth.
You can apply for a duplicate PAN card after you have your PAN number by filling out the “Request for New PAN Card Or/ And Changes Or Corrections in PAN Data” form.
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Investment
oi-Vipul Das
The Pradhan Mantri Jan-Dhan Yojana (PMJDY) is a financial inclusion that aims to provide inexpensive exposure to financial services including basic savings and deposit accounts, remittance, credit, insurance, and pension. Individuals who do not have any other accounts can open a basic savings bank deposit (BSBD) account in any bank branch or Business Correspondent (Bank Mitra) outlet under the initiative. All Jan Dhan account holders who use RuPay debit cards are eligible for free accidental coverage of up to Rs 2 lakh from the State Bank of India. Holders of debit cards are entitled for a variety of advantages, including accidental death coverage, purchase protection benefit, among others.
A Jan Dhan account can be opened online by submitting Know Your Customer (KYC) credentials. The basic savings account can be transferred to the Jan Dhan Yojana account. Individuals with a Jan Dhan account are issued a RuPay PMJDY card by the bank. RuPay PMJDY cards approved on Jan Dhan accounts established before August 28, 2018 will have a Rs 1 lakh amount covered. Let’s know about the Jan Dhan Yojana or account and procedure to claim the benefits.
A Jan Dhan account can be opened by any Indian citizen over the age of ten. You can even transfer funds from your regular savings account to your Jan Dhan Yojana account. As per the legal court order, the beneficiary can be a nominee on the cardholder’s behalf or a legal heir. In the situation of multiple beneficiaries, the claim is resolved in the name of the heir as specified by the legal heir.
The Pradhan Mantri Jan Dhan Yojana Scheme has a number of advantages, such as:
Jan Dhan subscribers must have undertaken one effective financial or non-financial transaction through any stream, either intra and interbank, using the Rupay debit card within 90 days before the date of the accident. The personal accident coverage will include the occurrence even if it occurs outside the country. On submission of the relevant paperwork, the claim will be reimbursed in Indian rupees in accordance with the sum insured. Here are the claim documents to be submitted in case of a claim, whether the incident has happened in India or overseas, according to npci.org.in
Story first published: Tuesday, June 15, 2021, 13:08 [IST]
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The debt-to-equity ratio indicates the level of risk associated with a company’s financial structure and management. The ratio shows how much debt a company is using to conduct its business and how much financial leverage it has available. The liabilities and commitments held by the organization to repay them over time are referred to as debt.
The debt-to-equity ratio, for example, gives a picture of a company’s capital structure and success potential. Business executives who understand the benefits, intricacies, and significance of the debt-to-equity ratio may use it to help their company compete in competitive marketplaces.
Because a high debt-to-equity ratio lowers a bank’s odds of being repaid, it may refuse to offer additional funding or only supply it in unfavorable conditions. If your debt-to-equity ratio is 2 and the bank’s cutoff is 1.5, you’ll probably be denied a loan. A lower debt-to-equity ratio indicates that a business is less reliant on debt and has a better equity position.
Debt to Equity Ratio =(Total Liabilities)/(Total Shareholder Equity)
Debt-free businesses are unaffected by a slowing economy or an increase in interest rates. They can run their business even if the economy is slowing down. Debt-free firms are low-risk investments preferred by both amateur and professional investors.
AS they are debt-free companies that can provide superior returns. Debt is only a short-term fix for the financial crisis. Debt has a higher long-term cost. A debt-free corporation pays a higher dividend yield and has a higher return on equity. You will receive a decent dividend yield or dividend distribution from the firm or stock you have invested in as a retail investor of that particular stock. So, before buying, do your homework and look at a stock’s debt ratio.
Step 1: Visit- Screener Website
Step 2: Register with the screener website or log in with your credentials
Step 3: find the query builder.
Step 4: Type Debt to Equity = 0
Step 5: Click on Run the query
The screen will display a list of all the debt-free companies in India.
You can also add more variables to this query to make it more personalized. If you wish to locate a firm with a debt-to-equity ratio of zero and a market value of more than 50,000 crores, use the query builder to create the following query.Debt to equity = 0 AND
Market Capitalization > 50000
This query generator can also be used to filter out companies with various financial ratios such as PE, ROE, PEG, and so on.
When a corporation chooses stock financing over debt, it may face higher taxation. The capital raised through the sale of shares is referred to as equity financing.
If equity financing is favored over debt financing, the earnings per share (EPS) ratio will be low.
These enterprises lose out on the ‘tax shield’ to a greater extent since they do not have the ideal or an acceptable amount of debt. The concept of tax shield refers to a company’s interest payments being treated as an allowable expense, hence reducing its tax outflow to some extent. Furthermore, investors may regard debt-free enterprises as being less proactive.
Best Top 10 Debt-Free Companies To invest in 2021
The following is a list of the firms with the highest market capitalization that have no debt.
| Company | Debt | Market Cap in Rs |
| SBI Life Insurance Company Ltd | 0 | 34.73TCr |
| HDFC AMC Ltd | 0 | 66.17TCr |
| Max Financial | 0 | 34.77TCr |
| Hindustan Unilever Limited (HUL) | 0 | 5.58LCr |
| ICICI Prudential Life Insurance | 0 | 84.38TCr |
| ITC | 0 | 2.56LCr |
| Ambuja Cements | 0 | 67.70TCr |
| CDSL | 0 | 10.55TCr |
| P & G Hygiene and Health Care Ltd | 0 | 42.45TCr |
| Gillette India Ltd | 0 | 18.84TCr |
Companies handle their financial needs through equity, debt, or cash generated internally. Internally produced cash is the most preferred form of finance, followed by debt, while equity is the least favored form, according to statistical results. The reason for this is unmistakablye due to the accompanying expenditures. However, the other element, which is the growth factor, must be investigated. In their quest to remain debt-free, a corporation may neglect to invest in future capacity and expansion. This may result in the company’s growth being stifled.
In this case, the company is good, but from an investment standpoint, you don’t have much of a choice. As a result, you must investigate the company from each of these angles.
Our content is designed for and must be used solely for the purpose of providing information and education. Before making any investment based on your own unique circumstances, it is critical to conduct your own analysis. If you want to rely on any information you see on our Website, whether for the purpose of making an investment choice or otherwise, you should seek independent financial advice from a professional or independently study and verify it.
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With a Bajaj Finance FD, you can earn a high-interest rate ranging from 5.65 per cent to 6.75 per cent on a minimum deposit period ranging from one year to five years. This fixed deposit is rated FAAA (STABLE) by CRISIL and MAAA by ICRA, indicating the deposit’s higher safety. Here are the most recent Bajaj Finance Fixed Deposit interest rates, effective from May 12, 2021.
| Tenure in months | Regular FD Rates | Senior Citizen FD Rates |
|---|---|---|
| 12 to 23 | 5.51% to 5.65% | 5.75% to 5.90% |
| 24 to 35 | 5.94% to 6.10% | 6.17% to 6.35% |
| 36 to 60 | 6.31% to 6.50% | 6.55% to 6.75% |
| Source: bajajfinserv.in |
HDFC Fixed Deposit has got FAAA ratings from CRISIL and ICRA, providing investors with the highest level of deposit security. The deposit has a flexible maturity period ranging from 12 to 120 months. Senior citizens aged 60 and over are eligible for an additional 0.25 per cent p.a. on all deposits. Here are the most recent HDFC Fixed Deposit interest rates for deposits of less than Rs 2 crore, effective from March 30, 2021.
| Tenure | Monthly Income Plan | Quarterly Option | Half-yearly option | Annual Income Plan | Cumulative Option |
|---|---|---|---|---|---|
| 12-23 Months | 5.50% | 5.55% | 5.60% | – | 5.70% |
| 24-35 Months | 5.65% | 5.70% | 5.75% | 5.85% | 5.85% |
| 36-59 Months | 5.85% | 5.90% | 5.95% | 6.05% | 6.05% |
| 60-83 Months | 6.20% | 6.25% | 6.30% | 6.40% | 6.40% |
| 84-120 Months | 6.35% | 6.40% | 6.45% | 6.55% | 6.55% |
| Source: hdfc.com |
CRISIL has rated LIC Housing Finance Fixed Deposits as FAAA/STABLE. This corporate fixed deposit scheme now offers interest rates ranging from 5.25 per cent to 5.75 per cent. Senior citizens would receive an additional interest rate of 0.25 per cent per annum on deposits of Rs 20,000/- and more, but only up to Rs 20 Crores on all tenors. Here are the latest interest rates of the LIC Housing Finance Fixed Deposit scheme which are in force from 01.04.2021.
| Term | ROI for monthly option | ROI for yearly option |
|---|---|---|
| Non-cumulative deposits | Cumulative deposits & non-cumulative deposits | |
| 1 YEAR | 5.10% | 5.25% |
| 18 MONTHS | 5.35% | 5.50% |
| 2 YEARS | 5.50% | 5.65% |
| 3 YEARS | 5.60% | 5.75% |
| 5 YEARS | 5.60% | 5.75% |
| Source: lichousing.com |
ICICI HFC Fixed Deposits are rated FAAA/Stable by CRISIL, MAAA/Stable by ICRA, and AAA/Stable by CARE, indicating guaranteed safety with the highest credit ratings in the category. Senior citizens and ICICI Group employees can receive 0.25 per cent additional interest. Here are the most recent interest rates of ICICI HFC Fixed Deposits which are in force from April 15, 2021.
| Term in months | Cumulative | Non-cumulative | ||
|---|---|---|---|---|
| Monthly income plan | Quarterly | Yearly | ||
| 12 to less than 24 | 5.70% | 5.55% | 5.60% | 5.70% |
| 24 to less than 36 | 5.85% | 5.70% | 5.75% | 5.85% |
| 36 to less than 48 | 6.05% | 5.90% | 5.95% | 6.05% |
| 48 to less than 60 | 6.30% | 6.10% | 6.15% | 6.30% |
| 60 to less than 72 | 6.45% | 6.25% | 6.30% | 6.45% |
| 72 to less than equal to 120 | 6.65% | 6.45% | 6.50% | 6.65% |
| Source: icicihfc.com |
Mahindra Finance Fixed Deposits are rated CRISIL FAAA rating, signifying the best level of security for your deposit. An initial deposit of Rs 5000 is required to start investing in Mahindra Finance Fixed Deposits. Senior folks are also eligible for an additional 0.25 per cent FD interest rate. Here are the latest interest rates of Mahindra Finance Fixed Deposits which are in force from 24 August 2020.
| Term in months | Cumulative option | Non-cumulative option | |||
|---|---|---|---|---|---|
| Monthly | Quarterly | Half-yearly | Annually | ||
| 12 | 5.70% | 5.15 | 5.5 | 5.60% | 5.70% |
| 24 | 6.20% | 5.65 | 6 | 6.10% | 6.20% |
| 36 | 6.30% | 5.75 | 6.1 | 6.20% | 6.30% |
| 48 | 6.45% | 5.9 | 6.25 | 6.35% | 6.45% |
| 60 | 6.45% | 5.9 | 6.25 | 6.35% | 6.45% |
| Source: mahindrafinance.com |
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In order to determine the genuine tax burden of employees, they are responsible to furnish their investment proof in December or January to their employers. If you were unable to furnish documentation of your investments and TDS was already withheld from your salary, you may be eligible for a refund when you file your return. Tax experts recommend taxpayers stay on hold until July 15 to ensure that all TDS withheld or TCS paid in their favour is recorded on their Form 26AS. It should be remembered that the deadline for filing TDS and TCS taxes has been postponed till June 30.
The tax department has recently notified about the new ITR forms. As a result, to choose the appropriate ITR form you need to know about these changes. Certain adjustments have been made to the eligibility conditions in ITR 1, which is utilised by salaried individuals, this year. This year, the ITR 1 form will not be relevant to anyone who paid TDS for a cash withdrawal under Section 194N. Employees who have unpaid tax on employee stock options (ESOPs) are likewise unable to utilise the ITR 1 form. Therefore, before submitting your return, make sure you use the correct form.
According to tax professionals, selecting a tax regime is more important for business owners since they are only allowed to make this decision once. They cannot modify their tax regime once they have chosen it. Salaried persons with earnings from salary, residential property, and other sources, on the other hand, can modify it in every assessment year. Business owners should also keep in mind that the deadline for submitting a tax audit report is September 30th of the assessment year, the deadline for submitting a return if a tax audit is pertinent is September 30th of the assessment year, and the deadline for submitting a return if a tax audit is not relevant is July 31st of the assessment year.
Individual taxpayers will be able to select between two tax regimes beginning in the fiscal year 2021. Under the new regime, implemented in Budget 2020, tax is payable on income up to Rs. 15 lakh at lower slab rates than the old regime, but the taxpayer will relinquish several deductions and exemptions available under the previous regime. Since it is recommended that a taxpayer select the regime at the outset of the year, he can also do it while lodging his IT return if he was unable to make the scheduled investments or expenditures for which he might seek a tax exemption under the old tax regime. Taxpayers should also bear in mind that under the new regime, tax slabs of 5%, 10%, 15%, 20%, and 25% are payable on each subsequent rise of Rs. 2.50 lakh from the initial deduction of Rs. 2.5 lakh up to 15 lakhs of overall income. Salaried individuals can’t make use of important advantages such as standard deduction, House Rent Allowance (HRA), Leave Travel Assistance (LTA), and so on under the new tax regime.
In light of the Covid-19 epidemic, the deadline for submitting ITR has been postponed to September 30 this year. Therefore, if any advance tax is owed, pay it as soon as possible to minimize penal interest. If self-assessment tax is submitted after the due deadline of submitting ITR, penal interest under section 234A is usually charged. The interest is charged at 1% each month or part of a month. This financial year, the CBDT has made an exclusion for such interest payments if the self-assessment tax due after TDS, advance tax, and other deductions should not surpass Rs 1 lakh. That being said, interest will be charged under Section 234B if the taxpayer has not submitted advance tax or if the advance tax paid is less than 90% of the overall tax amount. According to tax professionals, if the taxpayer fails to submit the advance tax in the specified quarterly instalments, penal interest under Section 234C would apply.
The income tax department has set a June 30th, 2021 timeframe for the PAN-Aadhaar linking. If this is not done, one’s PAN card will become inoperative. All transactions that need a PAN cannot be undertaken in this circumstance. Furthermore, owing to the incomplete KYC (Know Your Customer), you would be barred from subsequent transactions. The income tax department may levy Rs 10,000 as a penalty on individuals who use inoperative PAN cards. According to tax law, if Aadhaar is not linked to a PAN, taxpayers would be unable to perform certain financial transactions. This may also result in Rs 10,000 as a penalty under Section 272B of the Income Tax Act. In order to link your PAN with Aadhaar on the new income portal, please click here.
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Bitcoin has gyrated to Musk‘s views for months since Tesla announced a $1.5 billion bitcoin purchase in February and said it would take the cryptocurrency in payment. He later said the electric car maker would not accept bitcoin due to concerns over how mining the currency requires high energy use and contributes to climate change.
“When there’s confirmation of reasonable (~50%) clean energy usage by miners with positive future trend, Tesla will resume allowing Bitcoin transactions,” Musk said on Twitter on Sunday.
Bitcoin, which jumped nearly 10% on Sunday, breaking above its 20-day moving average, was up 4.3% on Monday at 40,692.27, its first foray above $40,000 in more than two weeks.
“Musk’s words caused bitcoin to surge,” said Simon Peters, market analyst at eToro.
Bitcoin was also supported Monday after billionaire hedge fund manager Paul Tudor Jones told CNBC on Monday that bitcoin is a great way to protect his wealth over the long run and is part of his portfolio just like gold.
Bitcoin prices were also helped by software company and major bitcoin-backer MicroStrategy raising half a billion dollars to buy bitcoin, said Bobby Ong, co-founder of crypto analytics website CoinGecko.
Bitcoin is up about 40% this year but has collapsed from a record peak above $60,000 amid a regulatory crackdown in China and Musk’s apparently wavering enthusiasm for it. Tesla stock is down about 30% since the company’s bitcoin purchase.
Musk’s tweet was made in response to an article based on remarks from Magda Wierzycka, head of cybersecurity firm Syngia , who in a radio interview last week accused him of “price manipulation” and selling a “big part” of his exposure.
“This is inaccurate,” Musk said. “Tesla only sold ~10% of holdings to confirm BTC could be liquidated easily without moving market.”
Musk had tweeted in May that Tesla “will not be selling any bitcoin” and “has not sold any bitcoin” but investors are keenly awaiting Tesla’s next earnings update – due next month – for any disclosure of changes to its position.
Musk has taken issue with the vast computing power required to process bitcoin transactions and in early June posted messages appearing to lament a breakup with bitcoin.
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Broking firm, ICICI Direct is bullish on the stock of Suven Pharma and has set a price target of Rs 560 on the stock, which is a good 17% higher from the current levels of Rs 480.
According to the ICICI Direct report, guidance for FY22 suggests a topline growth of 10-15% overall. For Contract Research and Manufacturing Services Pharma (CRAMS), the growth would be 10-15%, while for CRAMS specialty chemicals it would be 5%, while for formulations – 10-20%. Margins to be maintained between 35% and 40% minimum
Suven’s topline performance was in-line with ICICI Direct’s estimates whereas profitability was lower due to lower-than-expected gross margins.
Going ahead, the company hopes to achieve 10-15% growth in FY22 based on order book position. “Cautious guidance notwithstanding, we continue to emphasise on the strong execution capability and focused approach without the burden of success/failure of the innovative pipeline (now part of Suven Life Sciences). We maintain BUY with a target price of Rs 560,” ICICI Direct has said in its report. A good smallcap stock, as pharma shares are likely to be more resilient in case of market shocks.
This is another stock from the smallcap space that can be bought today as the stock has been grabbing attention. The company manufactures a slew of products ranging from cables and wires, fans, lighting, switches, switchgear, pumps, appliances etc. Sharekhan has a buy recommendation on the stock with a price target of Rs 2,050, as it sees good movement from the current market price of Rs 1,800.
The broking firm sees strong manufacturing capabilities, strong distribution and leadership in categories has a big positive.
“The stock is currently trading at a price to earnings multiple of 23 time and 19 times its FY2023E/ FY2024E EPS. With a consistent improvement in balance sheet, market share gains and growth acceleration, Project Leap remains constructive in medium to long term growth outlook. Hence, we retain Buy on the stock with a revised target price of Rs. 2050,” the broking form has said. The stock of Polycab was last seen trading at Rs 1,822 on the NSE.
Mphasis is a leading IT company in India. This is another small cap stock that has a buy rating from brokerage firm Motilal Oswal.
Impressive deal wins in FY21 and a healthy deal pipeline is likely to drive near term growth. While the overhang persists in the DXC business (15% of revenue in FY21), strong traction in the Direct International business should continue to drive overall performance.
The management’s ability to defend margin despite supply side pressures is a key positive. The ability to win multiple large Digital transformation deals proactively and under vendor consolidation scenarios indicates strength in its sales and delivery capabilities.
Higher exposure to largely stable verticals (Banking, Financial Services and Insurance – 60% of revenue) should help mitigate risks to some extent. The stock is currently trading 21.5 times FY23E EPS. We value the stock 22 times FY23E EPS. Maintain Buy.
The shares of Mphasis last closed at Rs 1,999 on the NSE.
The above mentioned small cap stocks have been picked from brokerage reports. The author, the brokerage or Greynium Information Technologies do not take any responsibility for losses that maybe incurred. The above article is for informational purposes only.
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The capital adequacy ratio (CRAR) stood at 15.32% that includes capital inclusion of Rs 4,100 crore by the Centre in FY21.
Chennai-based public sector lender Indian Overseas Bank (IOB) on Monday a reported a 143% jump in its net profit to Rs 350 crore for the fourth quarter of FY21, compared with Rs 144 crore in the corresponding quarter of the last fiscal year.
The bank has reported a total income of Rs 6,074 crore for Q4 as against Rs 5,537 crore in the same quarter previous financial year, registering 9.7% growth. The board of directors has approved a capital raising plan to the tune of Rs 2,000 crore. MD & CEO Partha Pratim Sengupta told media persons through a virtual meet that there has been good improvement, both QoQ and YoY, on all financial parameters.
“ If you look at the FY21 earnings performance, I would say it is a red-letter day for the bank, it has achieved an annual profit after the year 2014. In quarterly results, we have been making steady progress since March 2020, after making profit post being in the red continuously for 18 quarters,” he said.
Increase in other income, decrease in cost of deposits and profit from treasury operations have contributed to the profitability of the bank in the fourth quarter, according to him.IOB, which has been under prompt corrective action (PCA), has approached banking regulator RBI a couple weeks ago, with the plea to release the lender form the list of PCA. “We have fulfilled all the requirements which qualify the bank to come out of PCA. Now, it is up to the regulator to take a call on it,” Sengupta said.
The bank had been planing to come out of PCA by focusing on recovery, low-cost deposits and less capital consuming advances. He said the bank’s asset quality has improved significantly. Net NPA stood at 3.58%, which is within prescribed RBI guidelines.
During the quarter GNPA reduced by Rs 430 crore. GNPA ratios reduced to 11.69% from 14.78%, QoQ. The provision coverage ratio improved to 90.34%. The bank has made a recovery of Rs 3,934 crore in Q4 as against Rs 2,377 crore in the corresponding quarter last fiscal year. The bank’s interest income stood lower at Rs 4, 057 crore for the quarter as against Rs 4,442 crore while other income almost doubled to Rs 2,016 crore as against Rs 1,095 crore.
The capital adequacy ratio (CRAR) stood at 15.32% that includes capital inclusion of Rs 4,100 crore by the Centre in FY21.
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