MUMBAI: Bajaj Finserv on Thursday reported a 14 per cent year-on-year (YoY) rise in consolidated net profit at Rs 1,122.1 crore for the quarter ended September, which was below analysts’ expectations.
The non-bank lender reported a 19.7 per cent on-year increase in its consolidated revenue from operations to Rs 18,008.2 crore for the reported quarter.
Bajaj Finserv said after the disruption caused by the second wave of the pandemic, recovery in the business gathered momentum on the back of reopening of the economy in most states, rapid vaccinations and policy support.
The non-bank lender said the business has now shifted focus to growth and remains “cautiously optimistic” about its prospects for the remainder of the current financial year.
The company’s subsidiary Bajaj Allianz General Insurance reported a 28 per cent YoY rise in net profit to Rs 425 crore in the reported quarter. The business’ gross written premium jumped 21 per cent on-year to Rs 5,034 crore in the quarter.
Bajaj Allianz Life Insurance also reported a solid quarter of earnings as new business premium rose 62 per cent on-year to Rs 2,227 crore in the quarter. Renewal premium in the quarter was up 22 per cent whereas, gross written premium climbed 42 per cent.
The net profit of Bajaj Allianz Life grew to Rs 104 crore in the reported quarter from Rs 98 crore in the year ago period, Bajaj Finserv said.
Shares of Bajaj Finserv were down 0.2 per cent at Rs. 17,986 on the National Stock Exchange.
Morgan Stanley has downgraded India and Brazil equities to equal-weight while upgrading the Indonesian market to overweight position.
Morgan Stanley said it expects a structural multi-year earnings recovery in India, but at 24 times forward price to earnings it will look for some consolidation ahead of US Federal Reserve‘s tapering, an RBI hike in February and higher energy costs.
“We move tactically equalweight on India equities after strong relative gains – we expect a structural multi-year earnings recovery, but at 24 times forward price to earnings, we look for some consolidation ahead of Fed tapering, an RBI (rate) hike in February and higher energy costs,” said Morgan Stanley.
MSCI India has gained 26% in the last 6 months, outpacing the MSCI Emerging Markets index by 30% over the same period. Morgan Stanley said this strong outperformance is partly due to bullish consensus earnings expectations and a favourable reform agenda.
Morgan Stanley in a recent note had said that early signs of capital expenditure, supportive government policy for higher corporate profit share in GDP and a robust global growth outlook will help India enter a new profit cycle, which may result in earnings compounding at over 20% per annum for the next three to four years.
However, the financial services firm said that valuations are increasingly constraining returns over the next three to six months.
“Notwithstanding the already-sharply upgraded consensus earnings through 2021, India’s 12-month forward P/E ratio has moved to an all-time high of 24.1 times. As a result, India is the most expensive market in our model on EM-relative 5-year trailing z-score of P/B and P/E,” said Morgan Stanley. Indices may take a breather from here and look for some consolidation, said Morgan Stanley, adding that it prefers consumer discretionary and financials while avoiding the technology and healthcare sectors.
PayU today launched its tokenisation solution ‘PayU Token Hub‘, which allows issuing banks to generate their own tokens. This solution is built by PayU and Wibmo, in partnership with Visa, MasterCard and leading banks.
“We welcome the new RBI guidelines. PayU Token Hub is fully interoperable, providing best of network and issuer tokens for card-on-file use cases extensible to device tap-and-pay.” said Manas Mishra, chief product officer.
‘PayU Token Hub’ will enable businesses to comply with RBI’s latest guidelines on online card data storage, and will soon expand to enable businesses to safely store and create tokens across other popular payment modes like UPI and Net Banking.
Mumbai, Financial inclusion-focussed non-banking lender Avanti Finance has raised USD 15 million (Rs 111 crore) in series-A2 equityfunding round from existing investors Oikocredit, Nomura, Bill & Melinda Gates Foundation and the KR Shroff Foundation, as well as Rs 195 crore in debt. With this cash infusion, Avanti has completed its series-A equity and also debt funding round, raising a total of USD 41 million or Rs 306 crore, the Bengaluru-based company said in a statement on Thursday. It did not, however, say from where it has raised the debt.
Avanti will use the funds to strengthen its tech platform and bolster data science, apart from enhancing its product suite and to expand the team, Rahul Gupta, chief executive of Avanti, said.
Avanti has built a digital platform that facilitates a paperless, presence-less, and cashless approach to lending to reduce cost and friction for the un-served and un-derserved, especially in rural India.
Avanti partners with a diverse set of organisations with strong roots in local communities to offer loan products that are hyperlocal and focused on livelihood sustainability across 21 states covering over 200 districts.
Unitus Capital acted as the exclusive financial transaction advisor to Avanti and Abhiraj Krishna Associates acted as the legal advisors to Avanti. PTI BEN MKJ
Kotak Mahindra Bank FD Rates For Regular Customers
The bank is now providing an interest rate ranging from 2.50 percent to 5.30 percent for deposits of less than Rs 2 crore with a maturity period of 7 days to 10 years. On deposits maturing in three years to less than ten years, the bank promises the maximum interest rate of 5.30 percent. For regular residents, Kotak Mahindra Bank is now offering the following interest rates on their deposits with a premature withdrawal option, which are in effect from October 27, 2021.
Maturity Periods
Interest rates
Annualized Yield
7 – 14 Days
2.50%
2.50%
15 – 30 Days
2.50%
2.50%
31 – 45 Days
2.75%
2.75%
46 – 90 Days
2.75%
2.75%
91 – 120 Days
3.00%
3.00%
121 – 179 days
3.20%
3.20%
180 Days
4.25%
4.25%
181 Days to 269 Days
4.25%
4.30%
270 Days
4.40%
4.45%
271 Days to 363 Days
4.40%
4.45%
364 Days
4.50%
4.55%
365 Days to 389 Days
4.75%
4.84%
390 Days (12 months 25 days)
4.90%
4.99%
391 Days – Less than 23 Months
4.90%
4.99%
23 Months
5.00%
5.09%
23 months 1 Day- less than 2 years
5.00%
5.09%
2 years- less than 3 years
5.15%
5.25%
3 years and above but less than 4 years
5.30%
5.41%
4 years and above but less than 5 years
5.30%
5.41%
5 years and above upto and inclusive of 10 years
5.30%
5.41%
Source: Bank Website. W.e.f. 27th October-2021
Kotak Mahindra Bank FD Rates For Senior Citizens
Senior citizens will continue to receive an additional rate of 0.50 percent across all tenures after the bank’s most recent adjustment on fixed deposit interest rates. The bank is now providing elderly citizens a maximum rate of 5.80 percent on deposits of less than Rs 2 crore maturing in three to less than ten years. Senior citizens will now get the following interest rates on their fixed deposits.
Maturity Periods
Interest rates
Annualized Yield
7 – 14 Days
3.00%
3.00%
15 – 30 Days
3.00%
3.00%
31 – 45 Days
3.25%
3.25%
46 – 90 Days
3.25%
3.25%
91 – 120 Days
3.50%
3.50%
121 – 179 days
3.70%
3.70%
180 Days
4.75%
4.75%
181 Days to 269 Days
4.75%
4.81%
270 Days
4.90%
4.96%
271 Days to 363 Days
4.90%
4.96%
364 Days
5.00%
5.06%
365 Days to 389 Days
5.25%
5.35%
390 Days (12 months 25 days)
5.40%
5.51%
391 Days – Less than 23 Months
5.40%
5.51%
23 Months
5.50%
5.61%
23 months 1 Day- less than 2 years
5.50%
5.61%
2 years- less than 3 years
5.65%
5.77%
3 years and above but less than 4 years
5.80%
5.93%
4 years and above but less than 5 years
5.80%
5.93%
5 years and above upto and inclusive of 10 years
5.80%
5.93%
Source: Bank Website. W.e.f. 27th October-2021
Kotak Mahindra Bank Recurring Deposit Interest Rates
Kotak Mahindra Bank also allows recurring deposits where depositors can select maturity amount and monthly investment amount according to their convenience. The bank has also revised its interest rates on recurring deposits and following the most recent adjustment made on 27th October 2021, Kotak Mahindra Bank is now promising a maximum rate of 5.30% to the general public and 5.80% to senior citizens on their deposits maturing in 3 years to less than 10 years. Below listed are the latest interest rates on recurring deposits for both regular and senior citizens.
The Income Tax Department will now provide full details of taxpayers’ financial transactions, such as foreign remittances, the purchase and receipt of dividends on mutual funds, and other off-market transactions reported by depositories in Form 26AS, in order to prevent information suppression by taxpayers.
One of the most crucial tax forms for any taxpayer is Form 26AS, also known as a Tax Credit Statement. It accurately reflects the amount of tax you have paid to the IRS, either directly or through other taxpayers.
What is form 26AS?
Form 26AS is a consolidated yearly tax statement that includes information on taxes deducted at source, taxes collected at source, advance tax paid by the assessee, and self-assessment tax. This data pertains to a Permanent Account Number (PAN).
The annual information statement, also known as Form 26AS, will now include the following eight new features:
Information on foreign remittances reported on Form 15CC
Details on TDS on salary in Annexure II of the last quarter’s Form 24Q TDS Statement
Information from other taxpayers’ ITRs
Interest earned on a prior financial year’s income tax refund
PAN information in Form 61/61A, which indicates that if a taxpayer receives a PAN after submitting Form 61, it should be entered in Form 26AS.
Depository/Registrar and Transfer Agent (RTA) reported for Off Market Transactions, which refers to trades that are not settled through an exchange’s clearing organisation.
RTA has disclosed dividend information for a mutual fund.
RTA-reported information on mutual fund purchases.
What is included in form 26AS?
Form 26AS would include information on pay break-up, any deductions to be claimed by the employee, his/her income from other sources and residential property, as well as the overall tax burden.
Its format has altered since last year to include specific financial transactions of taxpayers, which will be supplied in the form of a Statement of Financial Transactions (SFTs).
Buying and selling stocks, real estate, and other financial instruments, as well as making cash payments for bank draughts, Reserve Bank of India-issued pre-paid instruments (such as mobile wallets), cash deposits in a financial year, and payment of credit card bills, are all examples (both cash or and other modes).
Other information about taxpayers, such as Aadhaar number, date of birth, cellphone number, email address, and address, will be included in the new form.
The data must be submitted within three months of receiving it, starting from the end of the month in which it was received. Off-market transactions will also be included in the Form. The necessary depositories or registrars, as well as transfer agents, are responsible for reporting such transactions. Details on the sale or purchase of a motor vehicle, the opening of a demat account with a depository, and hotel payments, among other things, will be added to the database.
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Story first published: Thursday, October 28, 2021, 14:27 [IST]
As had been the buzz around the Nykaa IPO, there has been seen phenomenal interest in the online fashion retailing company. In just hour, the retail portion has been fully subscribed. As per the NSE data, retail investors as against the available quota of 47,53,187 shares have made an application for 55,47,960 shares by noon.
Nykaa IPO Retail Portion Fully Subscribed Within 1 Hour Of Opening
Overall subscription status as at 12:08 pm as per the brokerage app shows to be 0.35*. On an overall basis, investors made bids for 83,24,076 equity shares or only 31 per cent as of 11.45 am, against the total issue size of 2,64,85,479 equity shares.
A host of brokerages have given a ‘Subscribe’ rating to the IPO given the potential the company has in the online cosmetic and fashion industry as well as the market share it can still garner.
From the over Rs. 5000 crore IPO, the company will be issuing equity worth Rs. 630 crore and the remaining shall be an OFS.. Marwadi Shares and Finance has a word of caution for investors and has given the IPO with a ‘subscribe with caution’ rating. Considering the TTM as of June 2021, adjusted EPS of Rs 2.54 on a post-issue basis, the company is going to list at a P/E of 443.46 with a market cap of Rs 53,204 crore, it said.
The chances of listing gains as well as long term prospects as rated by Angel Broking on its app are moderate.
GoodReturns.in
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After the Reserve Bank of India capped the borrowing from NBFCs for IPO subscription to Rs 1 crore per borrower, investors have been hit by doubling interest rates in the last two months.
Funding rates have shot up as many large-sized IPOs are scheduled within a short span of time. Interest rates have risen to 12-13 per cent in the last two months as liquidity has tightened in the system. Liquidity is further seen going down in the next couple of weeks and funding rates may rise further. With five IPOs scheduled to hit the market by November 3 and aiming to raise Rs 31,000 crore, the demand for funds is bound to go up amid a liquidity crunch.
Five IPOs
Five companies are looking to mop up over Rs 31,000 crore cumulatively between October 28 and November 10. Industry players expect Nykaa to be the biggest draw. Its IPO is expected to generate bids between Rs 80,000 crore and Rs 90,000 crore in the HNI category.
NBFCs issue seven-day commercial papers (CPs) to meet this funding requirement. The CPs are issued at 5.5 to 6.5 per cent. Industry players said the huge borrowing requirement had also led to a 100-200 basis points increase in CP rates.
Bajaj Finance, Kotak Securities, IIFL, JM Financial, and Motilal Oswal are among NBFCs that are looking to borrow or have borrowed from the CP market to lend to HNIs to apply for IPOs of Nykaa and others.
Rising costs
With the increase in funding rates, the cost per share has gone up drastically for wealthy investors.
For instance, at 7% for seven days, the cost for one share of Nykaa comes at around Rs 151 for 100 times HNI portion subscription. At 11%, the cost will go up
to Rs 237 per share, and at 13%, it will be Rs 280 per share. This means investors will make money only if the Nykaa lists with a premium of more than Rs 280 per share if one borrows at 13%.
The IPOs of Nykaa and PB Fintech are currently traded at a grey market premium of Rs 670 and Rs 220 apiece, respectively.
Raising funds
While the Nykaa IPO will hit the market on Thursday to raise Rs 5,352 crore, the PB Fintech IPO will open for subscription on Monday, November 1, to raise
Rs 5,710 crore. There is demand for nearly Rs 1 lakh crore from high-net worth investors for these two IPOs against the availability of Rs 50,000-60,000 crore at one time
NBFCs are readying a war chest of close to Rs 2 lakh crore to lend to high net worth individuals (HNIs) for their IPO bets.
Despite a 67 percent drop in net profit year over year in the July-September period, shares of engineering major Larsen & Toubro (L&T) rose as much as 4% in early Mumbai trading on Thursday, as investors took heart from better margins in projects and manufacturing amid signs of a decline in the coronavirus crisis.
Larsen & Toubro Ltd, or L&T, is an Indian multinational company headquartered in Mumbai with interests in engineering, construction, manufacturing, technology, and financial services. The firm is one of the top five construction firms in the globe.
On the National Stock Exchange, the company’s stock hit a high of Rs 1,862, up from Rs 1,784.55 at the previous closing. The stock was up 3.64 percent at Rs 1,849.45 at 10:15 a.m., while the NSE Nifty was down 0.68 percent to 18,093 at the same time.
The company posted a profit of Rs 1,819.45 crore in the July-September quarter, compared to Rs 5,520.27 crore a year ago, when it announced its second-quarter profits after market hours on Wednesday.
During the quarter, L&T received top orders in a variety of areas, including Oil & Gas, Metros, Rural Water Supply, Minerals and Metal, Public Space, and Power Transmission and Distribution.
“During the second COVID wave, L&T made the correct decision to emphasise balance sheet strength over growth. As building activity starts up post-monsoon, labour availability should no longer be an issue, and execution should improve. If and when the order inflow picks up, we anticipate L&T will have a significant earnings growth momentum “Motilal Oswal Financial Services, a stockbroker, said as much.
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Story first published: Thursday, October 28, 2021, 13:00 [IST]
IDBI Bank is providing a choice of savings accounts for customers who want better interest rates on their deposits combined with deposit insurance of up to Rs 5 lakhs guaranteed by the Deposit Insurance and Credit Guarantee Corporation (DICGC). For catering to different types of customers and their needs, IDBI Bank offers a range of savings account options such as Super Savings Account, Super Savings Plus Account, SuperShakti Women’s Account, Jubilee Plus Senior Citizen Account, Being My Account, Power Kids Account, Savings Account Using Video KYC, Small Account – Relaxed KYC, Sabka Basics Savings Account, Pension Savings Account, and Capital Gain Account Scheme. The bank recently updated its savings account interest rates, which we’ll go over in more detail below.
IDBI Bank Savings Account Interest Rates
IDBI Bank has updated its savings account interest rates on October 25, 2021, and now offers a rate of 3.00 percent on daily balances up to Rs 5 crore, 3.5 percent on daily balances between Rs 5 crore and Rs 100 crore, and 3.5 percent on balances over Rs 100 crore. The recent rates on savings accounts are as follows:
Saving Balance
Rate of Interest (% p.a.)
Upto Rs. 5 Cr
3
Above Rs.5 Cr up to Rs.100 Cr
3.25
Above Rs. 100 Cr
3.35
Source: Bank Website, Savings Bank Rate (w.e.f. October 25, 2021)
IDBI Bank currently has more than 1890 branches, more than 3300 ATMs across the country, and has a balance sheet size of Rs 2,97,764 as of 31st March 2021.
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Story first published: Thursday, October 28, 2021, 12:59 [IST]
