Category: Personal Finance

Top 5 Banks Offering Returns Up To 6.75% On 1 Year Fixed Deposits

Personal Finance

[ad_1]

Read More/Less


Investment

oi-Vipul Das

|

As fixed deposit investments have a variable tenure ranging from 7 days to 10 years, they can be used to meet a variety of personal financial goals, spanning short-term, mid-term, and long-term purposes. To ensure liquidity when it is needed, as well as renewing short-term fixed bank deposits once they mature. short-term fixed deposits are always the best option. The RBI, on the other hand, agreed not to alter the repo and reverse repo rates during its bi-monthly monetary policy review meeting on October 8, 2021. According to experts, the Reserve Bank of India (RBI) may hike repo rates in the near future if certain economic and financial conditions exist, such as high inflation, and it is recommended that you do not lock in your deposits for a long period of time at a lower rate, as this will expose you to interest rate risk.

In the current environment of low-interest rates on bank fixed deposits, it is preferable to initiate a fixed deposit investment for a short period of time, assume one year, and then wait for interest rates to rise in the future so that you can renew your deposits and reinvest for a longer period of time at higher rates. As a result, for investors looking to invest in one-year fixed deposits at higher rates, here are the top five banks, based on our own analysis, that are now offering returns of up to 6.75 percent with DICGC deposit insurance coverage of up to Rs 5 lakhs.

Jana Small Finance Bank

Jana Small Finance Bank

Jana Small Finance Bank, one of the small finance banks, is currently offering regular customers and senior citizens an interest rate of 6.25 percent and 6.75 percent on one-year deposits, respectively. On 07/05/2021, the bank officially modified its fixed deposit interest rates, which are as follows:

Period Regular FD Interest Rate (p.a.) Senior Citizen FD Interest Rate (p.a.)
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%
Source: Bank Website

Utkarsh Small Finance Bank

Utkarsh Small Finance Bank

This small finance bank is now promising an interest rate of 6.25% to the general public and 6.75% to senior citizens on their deposits maturing in 365 Days to 699 Days. For a deposit amount of less than Rs 2 Cr, the bank has last revised its interest rates on July 01, 2021 which is as follows.

Period Regular FD Interest Rate (p.a.) Senior Citizen FD Interest Rate (p.a.)
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 5.75% 6.25%
365 Days to 699 Days 6.25% 6.75%
Source: Bank Website

ESAF Small Finance Bank

ESAF Small Finance Bank

ESAF SFB is also offering an interest rate of 6.25% to non-senior citizens and 6.75% to senior citizens on their term deposits maturing in 365 days & 366 days. For a deposit amount of less than Rs.200 lakhs, the most recent interest rates on fixed deposits of the bank are listed below.

Period Normal Rate (%) Rate for Senior Citizens (%)
7 days to 14 days 4.00% 4.50%
15 days to 59 days 4.50% 5.00%
60 days to 90 days 5.25% 5.75%
91 days to 181 days 5.50% 6.00%
182 days 5.00% 5.50%
183 days to 363 days 6.00% 6.50%
364 days 5.25% 5.75%
365 days & 366 days 6.25% 6.75%
Source: Bank Website

RBL Bank

RBL Bank

RBL Bank is currently offering a 6.00 percent interest rate to the general public and 6.50 percent to senior citizens on deposits maturing in 12 months to less than 24 months. The bank’s most current interest rates on fixed deposits for domestic, NRO, NRE, and Flexi Fixed Deposits are provided below.

Period of Deposit Interest Rates p.a. Senior Citizen Interest Rates p.a.
7 days to 14 days 3.25% 3.75%
15 days to 45 days 3.75% 4.25%
46 days to 90 days 4.00% 4.50%
91 days to 180 days 4.50% 5.00%
181 days to 240 days 5.00% 5.50%
241 days to 364 days 5.25% 5.75%
12 months to less than 24 months 6.00% 6.50%
Source: Bank Website

IndusInd Bank

IndusInd Bank

IndusInd Bank is currently offering an interest rate of 6.00 percent to the general public and 6.50 percent to senior citizens on domestic/NRO/NRE/Senior Citizen Fixed Deposits maturing in 1 year to less than 1 year 6 months. The bank’s current fixed deposit rates for deposits less than Rs 2 crore are mentioned below.

Period Normal Rate (%) Rate for Senior Citizens (%)
7 days to 14 days 2.5 3
15 days to 30 days 2.75 3.25
31 days to 45 days 3 3.5
46 days to 60 days 3.25 3.75
61 days to 90 days 3.4 3.9
91 days to 120 days 3.75 4.25
121 days to 180 days 4.25 4.75
181 days to 210 days 4.6 5.1
211 days to 269 days 4.75 5.25
270 days to 354 days 5.5 6
355 days to 364 days 5.5 6
1 Year to below 1 Year 6 Months 6 6.5
Source: Bank Website

Story first published: Saturday, October 16, 2021, 17:20 [IST]



[ad_2]

CLICK HERE TO APPLY

Leave a comment

Top 6 “AAA” Rated Corporate Deposits For Investment In 2021

Personal Finance

[ad_1]

Read More/Less


Mahindra & Mahindra Financial Services Limited

Crisil has given Mahindra Finance Fixed Deposits an FAAA rating, indicating a higher standard of deposit safety. This corporate deposit offers elderly people an extra 0.25 percent on Samruddhi Fixed Deposits and 0.35 percent to the company’s employees. Mahindra Finance is now offering the below-listed interest rates on deposits and the latest rates are applicable from 20th September 2021.

Samruddhi Cumulative Scheme (Up to Rs 1 Cr)

Period in months Interest p.a.(%)
12 5.50%
24 6.00%
36 6.30%
48 6.45%
60 6.45%

Samruddhi Non-Cumulative Scheme (Up to Rs 1 Cr)

Period in months Interest p.a. (Monthly) Interest p.a. Quarterly) Interest p.a. (Half yearly) Interest p.a. (Yearly)
12 4.95% 5.30% 5.40% 5.50%
24 5.45% 5.80% 5.90% 6.00%
36 5.75% 6.10% 6.20% 6.30%
48 5.90% 6.25% 6.35% 6.45%
60 5.90% 6.25% 6.35% 6.45%
Source: mahindrafinance.com

ICICI Home Finance Fixed Deposits

ICICI Home Finance Fixed Deposits

CRISIL has given ICICI HFC Fixed Deposits an FAAA/Stable rating, ICRA has given it an MAAA/Stable rating, while CARE has given it a AAA/Stable rating. Senior citizens can benefit from a 0.25 percent higher rate of interest on this corporate fixed deposit, which requires a minimum deposit of Rs 10,000. The following are the interest rates that are in force from August 23, 2021.

Tenure in months Cumulative Non-Cumulative
Monthly Income Plan Quarterly Income Plan Yearly Income Plan
>=12 to 5.25% 5.10% 5.15% 5.25%
>=24 to 5.65% 5.50% 5.55% 5.65%
>=36 to 5.75% 5.60% 5.65% 5.75%
>=60 to 6.45% 6.25% 6.30% 6.45%
>=72 to 6.65% 6.45% 6.50% 6.65%
Source: icicihfc.com

HDFC Green & Sustainable Deposits

HDFC Green & Sustainable Deposits

For the last 27 years, HDFC Ltd. has maintained AAA ratings from two major credit rating agencies (CRISIL and ICRA) for its deposit scheme. The deposit scheme of the corporate provides the following competitive interest rates for a deposit amount of up to Rs 2 Cr.

Special Deposits (Fixed Rates)

Period Monthly Income Plan Quarterly Option Half-Yearly Option Annual Income Plan Cumulative Option
33 Months 6.00% 6.05% 6.10% 6.20% 6.20%
66 Months 6.40% 6.45% 6.50% 6.60% 6.60%
99 Months 6.45% 6.50% 6.55% 6.65% 6.65%

Premium Deposits (Fixed Rates)

Period Monthly Income Plan Quarterly Option Half-Yearly Option Annual Income Plan Cumulative Option
15 Months 5.60% 5.65% 5.70% – 5.80%
22 Months 5.75% 5.80% 5.85% 5.95% 5.95%
30 Months 5.80% 5.85% 5.90% 6.00% 6.00%
44 Months 6.05% 6.10% 6.15% 6.25% 6.25%

Regular Deposits (Fixed & Variable Rates)

Period 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%

Bajaj Finance Fixed Deposit

Bajaj Finance Fixed Deposit

On deposits maturing in 36 to 60 months, Bajaj Finance Fixed Deposit provides the maximum interest rate of up to 6.50 percent to the general public and up to 6.75 percent to senior persons. Bajaj Finance has achieved CRISIL’s FAAA/Stable and ICRA’s MAAA stable ratings, ensuring the safety of your deposit.

Tenors (Months) Regular Citizens Senior Citizens
12-23 5.51% to 5.65% 5.75% to 5.90%
24-35 5.94% to 6.10% 6.17% to 6.35%
36-60 6.31% to 6.50% 6.55% to 6.75%
With effect from 12th May 2021. Source: bajajfinserv.in

Sundaram Finance Fixed Deposits

Sundaram Finance Fixed Deposits

Sundaram Finance Fixed Deposits require a minimum deposit of Rs. 10,000/- per account and interest can be received through the RBI Electronic Clearing Service, NEFT, or cheques. Sundaram Finance deposits have been rated AAA for the past 30 years, indicating the safety of your capital. The below-listed interest rates are in force from August 08, 2021 for both regular and senior citizens.

Tenors (Months) Senior Citizen Others
Monthly Interest Rate %p.a(FD) Rate (% p.a at Quarterly rests for FD ) Monthly Interest Rate %p.a(FD) Rate (% p.a at Quarterly rests for FD )
12 5.97 6 5.48 5.5
24 6.12 6.15 5.62 5.65
36 6.27 6.3 5.77 5.8

LIC HFL Sanchay Deposit Scheme

LIC HFL Sanchay Deposit Scheme

CRISIL has given LIC Housing Finance Limited’s Sanchay Deposit Scheme an FAAA/Stable rating. The interest rates on public deposits up to Rs 20 crore are applicable from April 1, 2021, and are mentioned below. For deposits of Rs 20,000/- and above, but up to Rs 20 Crores on all tenors, senior persons would be entitled to an additional 0.25 percent p.a. interest rate.

TERM INTEREST RATE P.A. FOR MONTHLY OPTION INTEREST RATE P.A. FOR YEARLY OPTION
Non-Cumulative Deposits Cumulative & 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%



[ad_2]

CLICK HERE TO APPLY

Leave a comment

What Is SBI Recurring Deposit (RD) Scheme: Its Interest Rates And Benefits

Personal Finance

[ad_1]

Read More/Less


Interest rates under the SBI Recurring Deposit (RD) Scheme

The rate of interest under an RD scheme is the same as applicable to Term Deposits for Public and Senior Citizens.

Deposit tenure Interest Rates (PA) for Public Interest Rates (PA) for Senior Citizens
1 year to less than 2 years 5.00% 5.50%
2 years to less than 3 years 5.10% 5.60%
3 years to less than 5 years 5.30% 5.80%
5 years to 10 years 5.40% 6.20%

A Recurring Deposit (RD) is certainly qualitatively different from FDs, concerning an RD’s flexibility. Under any FD scheme, you are needed to deposit the money in the post office or a bank, one time in a lump sum. But under an RD scheme in any bank, you can invest a fixed amount monthly to earn good interest on the amount.

Deposit tenure and deposit amount

Deposit tenure and deposit amount

In SBI, you can choose your deposit tenure or the period of deposit from a minimum of 12 months, to a maximum of 120 months. The minimum deposit amount under the Recurring Deposit (RD) is Rs. 100 per month which will be multiplied in Rs. 10, for further investments further. However, there is no upper limit or fixed maximum deposit amount for the scheme. After the maturity of your RD scheme, you will be paid a lumpsum amount – that is the regular investments along with the interest earned. Hence, an RD is a good systematic saving-cum-investment instrument for the citizens. With the regular deposit opportunity and good interest rates, RDs will provide you flexibility and ease of investments.

Penalty

Penalty

If you fail to deposit the monthly installment under the scheme, the SBI will charge a penalty on your investment. For accounts with a maturity period of 5 years and less, your penalty will be Rs. 1.50 per Rs. 100 per month. For accounts with a maturity period above 5 years, your penalty will be Rs. 2.00 per Rs. 100 per month. SBI levies an ‘AA service charge’ of Rs. 10 on the Recurring Deposit (RD) accounts paid out on or after the date of maturity, wherein there is the default in payment of 3 or more consecutive installments and the account has not been regularized. Your account will be closed permanently if you do not pay the monthly installment for 6 consecutive periods. In that case, your balance will be paid to you.



[ad_2]

CLICK HERE TO APPLY

Leave a comment

SBI Extends SBI Wecare Senior Citizens FD Scheme: Check Interest Rates

Personal Finance

[ad_1]

Read More/Less


Personal Finance

oi-Kuntala Sarkar

|

State Bank of India (SBI), the largest public sector bank in the country has introduced a special fixed deposit scheme for senior citizens in May, last year during the pandemic, called ‘SBI Wecare Senior Citizens Scheme’. It is a term deposit scheme aiming to provide a promising investment opportunity for Indian senior citizens with good interest rates. Now the bank has extended the offer till March, next year. Now, SBI has extended the duration of this scheme for the 5th time in a row, to benefit the senior citizens during this tough time. This scheme offers additional interest rates under the scheme than other FD.

SBI Extends SBI Wecare Senior Citizens FD Scheme: Check Interest Rates

SBI has officially informed, “A special SBI Wecare Deposit for Senior Citizens introduced in the Retail TD segment wherein an additional interest of 30 bps (over and above the existing 50 bps) will be paid to Senior Citizen’s on their retail TD for ‘5 Years and above’ tenor only. “SBI Wecare” deposit scheme stands extended till March 31, 2022.” More interest in the term deposit scheme will certainly benefit the senior citizens who have subscribed to the scheme, or those who will opt for it. The additional interest is available both for renewal schemes and new subscribers.

Interest rate

The public sector bank will offer 30 bps more interest on the SBI Wecare Senior Citizens FD Scheme, as mentioned on their website. The additional interest will be given to the subscribers who have taken up the scheme for the tenor of 5 years or above. SBI provides a 5.40% interest rate on 5 years FD for common citizens, but the bank gives 6.20% interest under the special FD scheme for the senior citizens. Hence, that means under the SBI Wecare Senior Citizens FD Scheme, a senior citizen can earn 0.80% extra interest for 5 years, or more tenure. The interest rate for the SBI Wecare scheme for 1 year to less than 2 years is 5.50%, for 2 years to less than 3 years is 5.60%, for 3 years to less than 5 years is 5.80%, and for 5 years and up to 10 years, it is 6.20%. So, for 5 years or more, the scheme provides the highest interest rate. a senior citizen can earn interest with these rates on retail term deposits of less than Rs. 2 crores.

However, a senior citizen can also subscribe to the Senior Citizens Savings Scheme Account (SCSS), for a lucrative interest rate. The tenure of the SCSS is also 5 years.

Story first published: Saturday, October 16, 2021, 13:42 [IST]



[ad_2]

CLICK HERE TO APPLY

Leave a comment

This IPO Stock Has Risen 1600% Since Its Listing In Just 2 Years

Personal Finance

[ad_1]

Read More/Less


Investment

oi-Roshni Agarwal

|

The IPO market is again abuzz and as of now while over 100 companies have applied their DRHP for market regulator’s approval, a number of them will likely hit the markets by the end of this financial year 2022. Interestingly, regardless of the market momentum, the one factor that promises good returns for IPO investors over the term of investment is the stocks’ fundamentals and this has what has played in the outstanding performance of the stock that we are listing out here for its phenomenal gains in just 2 years time.

This IPO Stock Has Risen 1600% Since Its Listing In Just 2 Years

This IPO Stock Has Risen 1600% Since Its Listing In Just 2 Years

IRCTC -listing 2 years back

The Indian railways catering company y made its debut 2 years back in the month of October. Against the issue price of Rs. 320, the stock is trading with gains of 1600 percent at a price of Rs. 5464 apiece on the NSE.

Why the recent gains?

The stock’s recent gains are to do with the stock split which its board approved in the ration of 1:5. The move has been to fuel more liquidity into the stock, allow for more investors into it. The board decided to split one equity share of the company at a face value of Rs 10 into five equity shares at a face value of Rs 2 each. This is subject to the approval of the Ministry of Railways.

With the stock split, the number of shares are increased that in fact is aimed at making the stock more affordable for retail investor class.

What lies ahead for IRCTC stock?

The uncharted plans of the catering and ticketing company of the Indian Railways such as its plans of coming up with adventure tour plans as well as customer-specific plans will enable the company to gain more revenue share.

Also, the recent spur in train ticket booking on account of easing of coronavirus situation in the country will be reflected in the company’s earnings due to be revealed on October 14, 2021.

Thus looking at all such scenarios, the stock is expected to hit a new high of Rs. 5800 in the short term.

Echoing with Avinash Gorakshkar’s views; Ravi Singhal, Vice Chairman at GCL Securities said, “IRCTC is aggressively focusing on its hospitality business. It is making fresh tie-ups with hotels, tour and travel service providers and local food suppliers. IRCTC is also giving special focus to its food chain business in running trains. Apart from this, IRCTC has made tie-ups with aviation companies as well. So, market has reaslised that in coming times, it is no more going to remain an Indian Railways’ e-ticket booking platform. It will emerge as A to Z hospitality service provider.”

Advising fresh investors to buy at current levels; Sumeet Bagadia, Executive Director at Choice Broking said, “IRCTC shares have strong support below Rs. 5000 levels. Those who have this stock in their portfolio should continue to hold the counter maintaining trailing stop loss at Rs. 4950 as it may go up to Rs. 5500 to Rs. 5800 in immediate short term. One can take fresh position in the counter at current levels maintain stop loss at Rs. 4950.”

GoodReturns.in

Story first published: Saturday, October 16, 2021, 12:35 [IST]



[ad_2]

CLICK HERE TO APPLY

Leave a comment

CBDT Reported Over 2 Cr Income Tax Returns Filed On The e-Filing Portal

Personal Finance

[ad_1]

Read More/Less


Taxes

oi-Vipul Das

|

As of October 13th, 2021, the Income Tax Department’s e-filing website (www.incometax.gov.in) has received over 2 crore Income Tax returns. Until October 13th, 2021, over 13.44 crore unique taxpayers have been newly registered.

Approximately 54.70 lakh taxpayers have used the ‘forgot password’ feature to retrieve their credentials. E-filing is now accessible for all Income Tax Returns. Over 2 crore ITRs for the fiscal year 2021-22 have been filed on the platform, with ITRs 1 and 4 accounting for 86% of the total.

CBDT Reported Over 2 Cr Income Tax Returns Filed On The e-Filing Portal

Over 1.70 crore returns have been e-verified, with 1.49 crore using Aadhaar-based OTP. E-verification by Aadhaar OTP and other means is required for the Department to begin processing the ITR and initiate refunds, if applicable. Over 1.06 crore ITRs have been processed from the validated ITRs 1 and 4, and over 36.22 lakh refunds have been granted for the fiscal year 2021-22. The processing of ITRs 2 and 3 will begin soon.

The Digital Signature (DSC) registration of non-residents has been enabled and overall 4.87 lakh DSCs have been registered. In the simplified process of DSC registration, any individual has to register his DSC only once and can use it across any entity where the individual is a partner, director, etc without having to re-register again against each entity or role, the Central Board of Direct Taxes (CBDT) has reported in a statement issued on 14th October 2021.

According to the statement of CBDT, Over 15.72 lakh Statutory Forms have been submitted including 9.08 lakh TDS statements, 1.29 lakh Form 10A for registration of Trusts/institutions, 1.98 lakh Form 10E for arrears of salary, 23,920 Form 35 pertaining to the filing of Appeal and 22,075 DTVSV Form 4 till 13th October 2021. In response to feedback from taxpayers, the submission process of 15CA and 15CB forms required for foreign remittances have been revamped. Over 1.83 lakh 15CA and 37,870 15CB forms have been filed. More than 21.40 lakh ePANs have been allotted online free of cost. The Legal Heir functionality has been enabled for registrations and compliance.

Furthermore, e-proceedings and faceless proceedings now include video conferencing options for assessment and requesting adjournments or appointment and submissions by Authorized Representatives. Over 12.20 lakh Notices were granted by the Department under the Faceless Assessment/Appeal/Penalty procedures, to which over 6.24 lakh responses were recorded.

All taxpayers should view their Form 26AS through the e-filing portal to verify the accuracy of the TDS and Tax Payments and avail of pre-filling of ITRs. And also all taxpayers who are yet to file their Income Tax returns for AY 2021-22 are requested to file their returns at the earliest, said the income Tax Department in a statement.

The new portal was launched on 7th June 2021 and in the initial period, taxpayers had reported glitches and difficulties in the functioning of the portal. A number of technical issues have since been resolved and the performance of the portal has substantially stabilized, CBDT further clarified.

Story first published: Saturday, October 16, 2021, 11:52 [IST]



[ad_2]

CLICK HERE TO APPLY

Leave a comment

Indiabulls Real Estate posts Rs 5.6 crore profit in Q2; Sameer Gehlaut to step down as chairman, BFSI News, ET BFSI

Personal Finance

[ad_1]

Read More/Less


NEW DELHI: Indiabulls Real Estate Ltd (IBREL) on Thursday reported a consolidated net profit of Rs 5.64 crore for the quarter ended September and announced the resignation of Sameer Gehlaut as the non-executive director and chairman of the company with effect from December 31. Mumbai-based IBREL said Gehlaut will now focus on Dhani Services Ltd.

The resignation of Gehlaut comes amid the proposed merger of IBREL projects with the Bengaluru-based Embassy Group.

After the conclusion of the merger process, Embassy Group will become the main promoter after the completion of amalgamation process.

In a regulatory filing, IBREL reported a consolidated net profit of Rs 5.64 crore for the quarter ended September. The company had posted a net loss of Rs 76 crore in the year-ago period.

Total income in the second quarter of this fiscal rose to Rs 381.24 crore from Rs 50.70 crore in the corresponding period of the previous year.

IBREL said Gehlaut has informed the board that he would resign as the chairman by the end of this year.

“…to focus on business of providing technology-enabled transaction finance and primary healthcare services by Dhani Services Ltd, of which Sameer Gehlaut is the founder promoter, Chairman & CEO, at the aforesaid meeting Gehlaut informed that he would be leaving the office of non-executive director & chairman of the company by the end of the year,” it said.

Accordingly, Gehlaut submitted his resignation effective from December 31, 2021.

On the proposed merger of its assets with the Bengaluru-based realty firm Embassy Group, IBREL said it has got regulatory approvals from Competition Commission of India (CCI), National Stock Exchange of India (NSE), BSE Limited (BSE) and the Securities and Exchange Board of India (SEBI).

The company has filed the requisite joint application with jurisdictional bench of NCLT, for its approval to the scheme of merger.

“The application for approval of merger with NCLT is listed in the current quarter,” it said.

Last year, Embassy Group entered into a definitive agreement to merge its certain residential and commercial projects with IBREL through a cash-less scheme of amalgamation.

Embassy Group will become the promoter of the merged entity.

Embassy Group has around 14 per cent stake in IBREL and the same will increase to 45 per cent after the merger of assets of these two companies.

Post-merger, the combined entity will have 80.8 million square feet of launched and planned development potential. The merged entity will have about 30 projects.

Under the terms of the agreement, the IBREL’s shares are being valued at Rs 92.5 per share.



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , ,

MD Rajiv Lochan, BFSI News, ET BFSI

Personal Finance

[ad_1]

Read More/Less


Sundaram Finance that built a lending business by financing truck purchases is preparing for the next phase of growth by funding more asset classes amid a possible boom in rural incomes and the government’s infrastructure projects, its chief executive said.

While its traditional way of doing business like physical interaction and verification of customers’ credit worthiness is unconventional, it would leverage digital, technology and data without compromising on its ethos of safety and customer orientation.

The company, which has been diversifying into funding of passenger cars, construction and farm equipment in the past few years, would look at co-lending to build newer asset classes, said Rajiv Lochan, a former McKinsey consultant who is now the managing director of the Chennai-based lender.

“The opportunities for growth and prosperity for the next five to 10 years are unprecedented,” said Lochan who succeeded TT Srinivasaraghavan who headed the company for 18 years. “What will be different is probably technology, digital, and data… Under the waterline, more enablement will happen through technology and data science, that will be different.”

Sundaram Finance, started in 1954, has been a conservative lender to truck buyers. But in the past few years it diversified into other streams of lending including funding cars as competition grew. It now looks to take advantage of technology and the prospects for the Indian economy which is set to witness a boom in rural economy and infrastructure building.

“Rural India continues to remain quite strong, and therefore bodes well for the future,” Lochan said. “On the back of normal monsoons, good procurement, good sowing, and with the downside fears not coming through, the rural segment has been quite robust.”

He said a good indication of this was the results that FMCG companies have witnessed both on volume and price fronts. Lochan, however, said the urban markets too were seeing more optimism and confidence partly driven by the progress in vaccination. He further added that the company would remain an asset lending provider, going beyond commercial vehicles into passenger cars, material handling and construction equipment.

“The infrastructure space seems to be in dramatic investment mode right now. And likewise, with the rural agri opportunity opening up on the back of unprecedented reforms in that space, which hopefully we’ll see implementation over the next few years, I think opportunities in that space will also open up.”

The government has accelerated spends in rural areas through schemes for housing, direct transfer of subsidies. It also recently announced the Gati Shakti programme which would absorb the National Infrastructure Projects worth ₹110 lakh crore.



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , ,

Dollar’s five-week winning streak ends as risk sentiment rebounds, BFSI News, ET BFSI

Personal Finance

[ad_1]

Read More/Less


NEW YORK -The dollar edged lower against a basket of major currencies on Friday, on track to end its five-week winning streak, as global risk appetite rebounded, helping reduce demand for the safe-haven currency.

Global stock markets have rallied this week as fears about a stagflationary economy have been eased by forecast-beating corporate earnings in the United States.

Unexpectedly strong U.S. retail sales data for September also boosted sentiment. Retail sales rose 0.7% last month, versus expectations of a 0.2% decline, helped in part by higher prices.

“The risk appetite here remains really, really strong for the time being,” said Boris Schlossberg, managing director of FX strategy at BK Asset Management.

“That’s helping the high beta currencies like the pound, the euro and the Aussie, simply because the market is feeling much more positive,” he said.

The dollar index initially firmed after the retail sales data, but then trended lower and was last down 0.106% at 93.941. The greenback was down 0.19% for the week, after having appreciated for the previous five weeks, and hitting a one-year high of 94.563 on Tuesday.

The big run-up in dollar strength, based on expectations that the U.S. Federal Reserve may begin hiking rates sooner than had been anticipated, may have been overblown, and the dollar is now consolidating, said Marc Chandler, chief market strategist at Bannockburn Global Forex.

“Next week will help clarify whether we are consolidating, and whether the consolidation is just like a breath that refreshes or is a prelude for a correction,” he said.

The greenback had rallied against its major peers since early September on expectations the U.S. central bank would tighten monetary policy more quickly than previously expected amid an improving economy and surging energy prices.

Minutes of the Fed’s September meeting confirmed this week that a tapering of stimulus is all but certain to start this year, although policymakers are sharply divided over inflation and what they should do about it.

Money markets are currently pricing in about 50/50 odds of a 25 basis point rate hike by July.

Sterling rose 0.57% to $1.3765, hitting its highest since Sept. 17, while the euro edged down 0.03% to $1.1595 after touching $1.1624 on Thursday for the first time since Sept. 4.

The risk-sensitive Aussie dollar added 0.02% to $0.7417, having climbed to $0.7439 earlier in the session. New Zealand’s dollar jumped 0.54% to $0.7068, extending Thursday’s 1% surge.

The Japanese yen was the biggest loser, dropping to as low as 114.46 yen per dollar, its weakest since October 2018. The yen is a safe-haven currency and has been knocked by the rebound in risk sentiment including in Asia. The dollar was last up 0.53% against the yen at 114.28 yen.

In cryptocurrency markets, the price of bitcoin topped $60,000 for the first time in six months and was not far from its record high on bets U.S. regulators will approve a bitcoin futures exchange traded fund.

During the reporting week ended October 8, the rise in the reserves was on account of an increase in the Foreign Currency Assets (FCAs), Reserve Bank of India’s (RBI) weekly data released on Friday showed.



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , ,
1 … 71 72 73 74 75 … 387