City Union Bank to start pushing non-gold loan advances by FY22-end

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N Kamakodi, MD & CEO of CUB, recently said during an analysts’ call that when the growth of other credit increases, correspondingly the growth of gold loan would also decrease.

South India-based private sector lender City Union Bank (CUB) has said it will start pushing growth in non-gold loan advances by the end of the current financial year. During the last few quarters, due to the Covid pandemic and in the absence of other avenues for growth, the bank had given thrust to improve gold loans, which were increased by 73% from Rs 4,537 crore in Q2 FY21 to Rs 7,849 crore in Q2 FY 22.

N Kamakodi, MD & CEO of CUB, recently said during an analysts’ call that when the growth of other credit increases, correspondingly the growth of gold loan would also decrease.

“We have not pushed our growth pedal in non-gold loan credit. We should be probably starting that from the end of the financial year if everything goes well. When the growth of other credit increases, correspondingly the growth of gold loan will also decrease, this is how we have managed growth in the past,” he said.

Currently, all the rural and semi-urban branches of the bank have gold loan as a product. As regards to metro branches, may be only 10% of the branches will have gold loan products. Out of a total 700, 350 to 400 branches may have gold loan products, he said.

On the recovery front, Kamakodi said in the first half of FY22, the bank had recorded a total recovery of Rs 290 crore comprising about Rs 210 crore from live accounts and about Rs 80 crore from technically written-off accounts, compared to Rs 108 crore comprising Rs 72 crore of live account and Rs 36 crore from technically written-off accounts in H1 of FY21.

In Q2 of FY22, it recorded a total recovery of Rs 189 crore comprising Rs 128 crore from live accounts and Rs 61 crore from the technically written off accounts.
“The current quarter recovery is the highest in the recent years, but still has to improve from here. The recovery will determine the ROA over the next couple of years, so we are taking all our steps under our command to improve this going forward,” he said.

The total provisions made during Q2 of FY22 and H1 of FY22 was at Rs 223 crore and Rs 433 crore against Rs 227 crore and Rs 429 crore in Q2 of FY21 and H1 of FY21 respectively.

He said that post Covid, only 4% to 5% of the transactions has been happening through the branches creating a huge capacity once the growth pace picks up.
On the network expansion plans, he said the bank every year used to keep plans for about 50 branches. “We opened only 3 branches or so in the financial year 2021 and this year probably we may open about 25 branches. That is what we are planning if everything goes well and we may initiate around 75 branches getting opened in the next year,” he said.

Kamakodi said the bank will also be looking at the co-lending space, underlining that it will do it on its own our terms by identifying a proper partner, going through small portfolio, testing the behaviour through cycles before expanding it and taking it as one of the main avenues of growth.

“What I can definitely say is that for the next three years, we would have definitely started co-lending, but it will not be a very significant proportion of our overall book even three years down the line. Once we get the total comfort and grip over how that segment is performing and what amount of control we have on that portfolio, we will take further call on that,” he said.

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City Union Bank net profit rises 15% to Rs 182 crore in Q2

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City Union Bank (CUB) on Friday reported a 15% increase in its net profit to Rs 182.10 crore for the second quarter of the current fiscal, against Rs 157.66 crore in the year-ago period. Total income stood at Rs 1,224.94 crore, compared with Rs 1,230.27 crore, registering a marginal decrease.

The bank in a statement said its gross NPA went up to 5.58% from 3.44% in the same period last year. The net NPA also increased to 3.48% from 1.81%.

Net interest income grew 1%, from Rs 475 crore to Rs 478 crore, and net interest margin stood at 4.03%.

However, interest income was lower by 3.65% at Rs 1,022.19 crore, against Rs 1,060.95 crore.

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City Union Bank Q2 profit grows 15% to ₹182 crore

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City Union Bank has recorded a 15 per cent growth in its net profit at ₹182 crore for the second quarter ended September 30, 2021 when compared with ₹158 crore in the year-ago period helped by other income and lower expenses amid lower interest income.

Interest income stood at ₹1,022 crore as against ₹1,061 crore, while other income was higher at ₹203 crore (₹169 crore), spurred by recoveries from written off accounts.

Net interest income was marginally higher at ₹478 crore as compared to ₹475 crore.

Interest expenses were lower at ₹544 crore against ₹582 crore and total expenses stood at ₹820 crore against ₹846 crore.

Operating profit was higher at ₹405 crore when compared with ₹385 crore in Q2 of previous fiscal.

Provisions (other than tax) & contingencies were at lower ₹148 crore against ₹177 crore in the year-ago quarter. But provisions for bad debts stood at ₹118 crore against ₹32 crore a year-ago.

Gross NPA rises

Gross NPA of the bank increased to 5.58 per cent as of September 2021 quarter when compared with 3.44 per cent in the year-ago quarter, but fell marginally from 5.59 per cent in the June 2021 quarter.

Net NPA also increased to 3.48 per cent from 1.81 per cent in the year-ago quarter. In the June 2021 quarter, it was 3.49 per cent.

During this September quarter, CUB restructured 45 standard borrower accounts to the tune of ₹322 crore under MSME and 295 borrowers to the tune of ₹93 crore under Non-MSME category. Restructured standard advances to gross advances stood at 5.90 per cent as of September 2021.

Deposits of the bank increased by 12 per cent to ₹46,316 crore from ₹41,021 crore, while advances grew by 7 per cent to ₹38,012 crore from ₹35,437 crore.

Provision coverage ratio of the bank stood at 62 per cent as of September 30, 2021.

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Here are the top 5 bank fixed deposit interest rates, BFSI News, ET BFSI

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The fixed deposit (FD) is one of the most popular investment avenues. Many investors prefer bank FDs over equities as the former are considered safe. The return earned from a bank FD is fixed and known at the time of investing unlike in case of equity.

Fixed deposits are also known as term deposits. This is because money is deposited with a bank for a fixed predetermined time period or term. Here are certain things that you must know while opening an FD account.

You can open a term deposit account with a bank where one already has a savings account. Some banks may allow you to open an FD account without having to open a savings bank account. However, you will be required to undergo a know-your-customer (KYC) process in case the bank allows you to place an FD without a savings account. You will be asked to provide self-attested photocopies of ID proof such as PAN, address proof such as Aadhaar, Voter ID card, passport etc. and coloured passport size photographs. You will be required to show the original documents which will be returned immediately post-verification.

  • Minimum and maximum investment amount

The minimum amount needed to open a fixed deposit account varies from bank to bank. However, there is no limit on the maximum amount which one can invest in an FD.The minimum and maximum tenure offered for which an FD can be placed varies from one bank to another. Usually, one can invest in FD for a minimum period of 7 days and for a maximum of 10 years. You can choose the period for which you wish to keep your FD as per your requirement.

Top 5 bank fixed deposit interest rates
Tenure: 1 year

Bank Name Interest rate (%) Compounded qtrly What Rs 10,000 will grow into
Indusind Bank 6.00 10613.64
RBL Bank 6.00 10613.64
DCB Bank 5.55 10566.66
Bandhan Bank 5.50 10561.45
South Indian Bank 5.40 10551.03

Tenure: 2 years

Bank Name Interest rate (%) Compounded qtrly What Rs 10,000 will grow into
Indusind Bank 6.00 11264.93
RBL Bank 6.00 11264.93
Bandhan Bank 5.50 11154.42
DCB Bank 5.50 11154.42
Karur Vysya Bank 5.50 11154.42

Tenure: 3 years

Bank Name Interest rate (%) Compounded qtrly What Rs 10,000 will grow into
RBL Bank 6.30 12062.63
Indusind Bank 6.00 11956.18
DCB Bank 5.95 11938.52
Karur Vysya Bank 5.50 11780.68
South Indian Bank 5.50 11780.68

Tenure: 5 years

Bank Name Interest rate (%) Compounded qtrly What Rs 10,000 will grow into
RBL Bank 6.30 13669.00
Indusind Bank 6.00 13468.55
DCB Bank 5.95 13435.42
Axis Bank 5.75 13303.65
Karur Vysya Bank 5.75 13303.65

All data sourced from Economic Times Intelligence Group (ETIG)
Data as on September 24, 2021
The interest rate offered on fixed deposits (FDs) will depend on the period for which you are investing in the FD and also vary from bank to bank for FDs for the same tenure. Senior citizens are typically offered higher interest rates. To receive the interest payment, you can choose either cumulative option or non-cumulative option.

Under the cumulative option, interest accrued on the deposit is reinvested and paid at the time of maturity along with principal amount.

In the non-cumulative option, interest is credited into the depositors account at the pay-out interval chosen at the time of placing the FD. Generally, one can choose from the options of receiving the interest on monthly, quarterly, half-yearly or annually basis as offered by the bank.

Interest received on FD is fully taxable in the hands of the investor. It will be taxed at the rates applicable to your income tax slabs. TDS will be deducted by the bank if the interest payment in a single financial year exceeds Rs 10,000, as per current tax laws. To avoid TDS, one can submit Form 15G or Form 15H (as applicable) to the bank.In case of any urgent requirements, one can break his/her FD before the maturity date. A penalty may be levied by the bank on premature withdrawals. The penalty amount varies from one bank to another.

While placing a FD, one must check the rules regarding pre-mature withdrawals. Sometimes, banks offer FDs without premature withdrawal facility as well as FDs without penalty on premature withdrawal.

One can use FD as a collateral to obtain a loan. The maximum loan sanctioned is usually a certain percentage of the principal deposit. This percentage may vary bank to bank.Nomination facility for Fixed Deposits (FDs) is also available.At maturity, if no specific instructions are given, most banks automatically renew the FD for the same period for which it was initially placed at the interest rates prevailing on the date the FD matures. If you do not want automatic renewal of your FD, you need to choose this option on the account opening form.

If you have forgotten to mention it, then you can visit the bank branch on the day of maturity and ask them to credit the proceeds into your savings account.

Nowadays banks offer the facility of opening an FD account online via Net banking through your account. One can invest in FD without having to visit a branch physically. However, remember that your bank may not issue you a printed FD receipt/advice if invested online.

Disclaimer: The data/information given above is subject to change therefore before taking any decision based on it, contact the bank/institution concerned.

For any queries or changes, please write to us on etigdb@timesgroup.com or call us at 022 – 66353963.



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Slippages this fiscal will be little below FY21 level: City Union Bank chief

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Credit growth achieved in the first quarter of FY22 was at 5% on a year-on-year basis, mainly coming from gold loans and the non-agri gold loans.

City Union Bank (CUB) has said the bank’s overall slippages to closing advances for FY 22 would be slightly below that of the previous fiscal year while it may be more front-loaded with increased slippages in the first two quarters and substantially lesser sticky loan accumulation in the subsequent quarters of the current financial year.

The bank will complete the entire surplus Covid provision in the second quarter, after which slippages would also reduce while the recoveries from the existing NPAs would increase because of the improvement in the court processes, particularly in taking possession and selling of the properties through SARFAESI action.

At a recent earnings conference call, N Kamakodi, MD & CEO of CUB, said the total incremental slippages will be slightly better than the last financial year. The bank is expecting a better recovery in the second half of the current financial year, resulting in gross and net NPAs at the year-end being at a shade lower than the last year.

“We had a slippage of Rs 482 crore in the first quarter of financial year 2022 and slippages were front loaded in tune with our expectations. We feel it should be moderating going forward and we still expect overall slippages for financial year 2022 will be flattish or less than whatever we saw in financial year 2021,” he said.

During FY21, the bank had restructured about Rs 990 crore of MSME accounts and about Rs 595 crore of non-MSME accounts through Covid resolution framework. Apart from this, prior to Covid, it had restructured an amount of Rs 242 crore under MSME and Rs 22 crore under non-MSME accounts. “Thus, the percentage of restructured accounts outstanding as on March 31, 2021, stood at Rs 1,849 crore comprising about 5% to closing advances,” he said.

On the recovery front, Kamakodi said the bank has been engaging with the borrowers and asking them to sell their other collateral in order to reduce the outstanding, so that the existing business will be sustainable enough to take care of their cash flows.

Credit growth achieved in the first quarter of FY22 was at 5% on a year-on-year basis, mainly coming from gold loans and the non-agri gold loans.

“We are keeping our eyes and ears open to the grass root level. If we see things are stabilising and also the risk of further Covid waves gets eliminated, we will ascertain whether we should be in a position to shift before the year- we will get that clarity post Diwali,” Kamakodi said when asked about the likely further acceleration in credit growth.

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Here are the top 5 bank fixed deposit interest rates, BFSI News, ET BFSI

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Read More/Less


The fixed deposit (FD) is one of the most popular investment avenues. Many investors prefer bank FDs over equities as the former are considered safe. The return earned from a bank FD is fixed and known at the time of investing unlike in case of equity.

Fixed deposits are also known as term deposits. This is because money is deposited with a bank for a fixed predetermined time period or term. Here are certain things that you must know while opening an FD account.

You can open a term deposit account with a bank where one already has a savings account. Some banks may allow you to open an FD account without having to open a savings bank account. However, you will be required to undergo a know-your-customer (KYC) process in case the bank allows you to place an FD without a savings account. You will be asked to provide self-attested photocopies of ID proof such as PAN, address proof such as Aadhaar, Voter ID card, passport etc. and coloured passport size photographs. You will be required to show the original documents which will be returned immediately post-verification.

  • Minimum and maximum investment amount

The minimum amount needed to open a fixed deposit account varies from bank to bank. However, there is no limit on the maximum amount which one can invest in an FD.The minimum and maximum tenure offered for which an FD can be placed varies from one bank to another. Usually, one can invest in FD for a minimum period of 7 days and for a maximum of 10 years. You can choose the period for which you wish to keep your FD as per your requirement.

Top 5 bank fixed deposit interest rates
Tenure: 1 year

Bank Name Interest rate (%) Compounded qtrly What Rs 10,000 will grow into
RBL Bank 6.10 10624.10
Indusind Bank 6.00 10613.64
DCB Bank 5.55 10566.66
Bandhan Bank 5.50 10561.45
IDFC First Bank 5.50 10561.45

Tenure: 2 years

Bank Name Interest rate (%) Compounded qtrly What Rs 10,000 will grow into
RBL Bank 6.10 11287.14
Indusind Bank 6.00 11264.93
Axis Bank 5.50 11154.42
Bandhan Bank 5.50 11154.42
DCB Bank 5.50 11154.42

Tenure: 3 years

Bank Name Interest rate (%) Compounded qtrly What Rs 10,000 will grow into
RBL Bank 6.30 12062.63
Indusind Bank 6.00 11956.18
DCB Bank 5.95 11938.52
IDFC First Bank 5.75 11868.13
Karnataka Bank 5.50 11780.68

Tenure: 5 years

Bank Name Interest rate (%) Compounded qtrly What Rs 10,000 will grow into
RBL Bank 6.50 13804.20
IDFC First Bank 6.00 13468.55
Indusind Bank 6.00 13468.55
DCB Bank 5.95 13435.42
Axis Bank 5.75 13303.65

All data sourced from Economic Times Intelligence Group (ETIG)
Data as on August 20, 2021
The interest rate offered on fixed deposits (FDs) will depend on the period for which you are investing in the FD and also vary from bank to bank for FDs for the same tenure. Senior citizens are typically offered higher interest rates. To receive the interest payment, you can choose either cumulative option or non-cumulative option.

Under the cumulative option, interest accrued on the deposit is reinvested and paid at the time of maturity along with principal amount.

In the non-cumulative option, interest is credited into the depositors account at the pay-out interval chosen at the time of placing the FD. Generally, one can choose from the options of receiving the interest on monthly, quarterly, half-yearly or annually basis as offered by the bank.

Interest received on FD is fully taxable in the hands of the investor. It will be taxed at the rates applicable to your income tax slabs. TDS will be deducted by the bank if the interest payment in a single financial year exceeds Rs 10,000, as per current tax laws. To avoid TDS, one can submit Form 15G or Form 15H (as applicable) to the bank.In case of any urgent requirements, one can break his/her FD before the maturity date. A penalty may be levied by the bank on premature withdrawals. The penalty amount varies from one bank to another.

While placing a FD, one must check the rules regarding pre-mature withdrawals. Sometimes, banks offer FDs without premature withdrawal facility as well as FDs without penalty on premature withdrawal.

One can use FD as a collateral to obtain a loan. The maximum loan sanctioned is usually a certain percentage of the principal deposit. This percentage may vary bank to bank.Nomination facility for Fixed Deposits (FDs) is also available.At maturity, if no specific instructions are given, most banks automatically renew the FD for the same period for which it was initially placed at the interest rates prevailing on the date the FD matures. If you do not want automatic renewal of your FD, you need to choose this option on the account opening form.

If you have forgotten to mention it, then you can visit the bank branch on the day of maturity and ask them to credit the proceeds into your savings account.

Nowadays banks offer the facility of opening an FD account online via Net banking through your account. One can invest in FD without having to visit a branch physically. However, remember that your bank may not issue you a printed FD receipt/advice if invested online.

Disclaimer: The data/information given above is subject to change therefore before taking any decision based on it, contact the bank/institution concerned.



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CUB June quarter net profit grows 12%

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The bank’s capital adequacy as per Basel III norms stood at 19.58% and tier-1 capital adequacy was at 18.51%, well above the regulatory requirement.

City Union Bank (CUB) has reported a 12% increase in its net profit at Rs 173 crore for the first quarter of FY22, compared with Rs 154 crore in the corresponding quarter of previous fiscal. Total income of the bank was lower at Rs 1,193 crore, against Rs 1,210 crore.

The bank’s bad assets increased in the quarter, with gross NPA at 5.59%, rising from 3.90%. Net NPA too rose to 3.49% from 2.11%.

Net interest income was up by 2%, from Rs 437 crore to Rs 448 crore, while net interest margin stood at 3.86%, the lender said in a release.

Total business rose 7%, from Rs 75,562 crore to Rs 81,001 crore. Deposits increased 9%, from Rs 41,026 crore to Rs.44,606 crore, while advances grew 5% to Rs 36,395 crore from Rs 34,536 crore. CASA deposits increased by 22% to Rs 12,299 crore, it said.

The bank’s capital adequacy as per Basel III norms stood at 19.58% and tier-1 capital adequacy was at 18.51%, well above the regulatory requirement.

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City Union Bank posts Q1 net of ₹173 crore

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City Union Bank, on Friday, posted 12 per cent growth in year-on-year net profit to ₹173 crore for the quarter ended June 30. The bank posted a net profit of ₹154 crore in the corresponding quarter a year ago.

The bank’s operating profit grew 8 per cent to ₹383.02 crore in Q1FY22 from ₹356.04 crore for the same quarter last year.

Total income dropped marginally to ₹1,193.08 crore (against ₹1,209.95 crore) during the April-June quarter while interest income fell to ₹997.43 (from ₹1,049.36 crore).

An asset quality evaluation of the bank showed some strain with the gross non-performing asset (GNPA) ratio increasing to 5.59 per cent in the June quarter from 3.90 per cent a year ago. NPA ratio also went up to 3.49 per cent (from 2.11 per cent).

The total business of the bank grew by 7 per cent to ₹81,001 crore (from ₹75,562 crore) while deposits grew by 9 per cent to ₹44,606 crore and advances increased by 5 per cent to ₹36,395 crore.

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Here are the top 5 bank fixed deposit interest rates, BFSI News, ET BFSI

[ad_1]

Read More/Less


The fixed deposit (FD) is one of the most popular investment avenues. Many investors prefer bank FDs over equities as the former are considered safe. The return earned from a bank FD is fixed and known at the time of investing unlike in case of equity.

Fixed deposits are also known as term deposits. This is because money is deposited with a bank for a fixed predetermined time period or term. Here are certain things that you must know while opening an FD account.

You can open a term deposit account with a bank where one already has a savings account. Some banks may allow you to open an FD account without having to open a savings bank account. However, you will be required to undergo a know-your-customer (KYC) process in case the bank allows you to place an FD without a savings account. You will be asked to provide self-attested photocopies of ID proof such as PAN, address proof such as Aadhaar, Voter ID card, passport etc. and coloured passport size photographs. You will be required to show the original documents which will be returned immediately post-verification.

  • Minimum and maximum investment amount

The minimum amount needed to open a fixed deposit account varies from bank to bank. However, there is no limit on the maximum amount which one can invest in an FD.The minimum and maximum tenure offered for which an FD can be placed varies from one bank to another. Usually, one can invest in FD for a minimum period of 7 days and for a maximum of 10 years. You can choose the period for which you wish to keep your FD as per your requirement.

Top 5 bank fixed deposit interest rates
Tenure: 1 year

Bank Name Interest rate (%) Compounded qtrly What Rs 10,000 will grow into
RBL Bank 6.10 10624.10
DCB Bank 6.00 10613.64
Indusind Bank 6.00 10613.64
Bandhan Bank 5.50 10561.45
IDFC First Bank 5.50 10561.45

Tenure: 2 years

Bank Name Interest rate (%) Compounded qtrly What Rs 10,000 will grow into
RBL Bank 6.10 11287.14
DCB Bank 6.00 11264.93
Indusind Bank 6.00 11264.93
Bandhan Bank 5.50 11154.42
Karur Vysya Bank 5.50 11154.42

Tenure: 3 years

Bank Name Interest rate (%) Compounded qtrly What Rs 10,000 will grow into
DCB Bank 6.50 12134.08
RBL Bank 6.30 12062.63
Indusind Bank 6.00 11956.18
IDFC First Bank 5.75 11868.13
Canara Bank 5.50 11780.68

Tenure: 5 years

Bank Name Interest rate (%) Compounded qtrly What Rs 10,000 will grow into
DCB Bank 6.50 13804.20
RBL Bank 6.50 13804.20
IDFC First Bank 6.00 13468.55
Indusind Bank 6.00 13468.55
Axis Bank 5.75 13303.65

All data sourced from Economic Times Intelligence Group (ETIG)
Data as on August 5, 2021The interest rate offered on fixed deposits (FDs) will depend on the period for which you are investing in the FD and also vary from bank to bank for FDs for the same tenure. Senior citizens are typically offered higher interest rates. To receive the interest payment, you can choose either cumulative option or non-cumulative option.

Under the cumulative option, interest accrued on the deposit is reinvested and paid at the time of maturity along with principal amount.

In the non-cumulative option, interest is credited into the depositors account at the pay-out interval chosen at the time of placing the FD. Generally, one can choose from the options of receiving the interest on monthly, quarterly, half-yearly or annually basis as offered by the bank.

Interest received on FD is fully taxable in the hands of the investor. It will be taxed at the rates applicable to your income tax slabs. TDS will be deducted by the bank if the interest payment in a single financial year exceeds Rs 10,000, as per current tax laws. To avoid TDS, one can submit Form 15G or Form 15H (as applicable) to the bank.In case of any urgent requirements, one can break his/her FD before the maturity date. A penalty may be levied by the bank on premature withdrawals. The penalty amount varies from one bank to another.

While placing a FD, one must check the rules regarding pre-mature withdrawals. Sometimes, banks offer FDs without premature withdrawal facility as well as FDs without penalty on premature withdrawal.

One can use FD as a collateral to obtain a loan. The maximum loan sanctioned is usually a certain percentage of the principal deposit. This percentage may vary bank to bank.Nomination facility for Fixed Deposits (FDs) is also available.At maturity, if no specific instructions are given, most banks automatically renew the FD for the same period for which it was initially placed at the interest rates prevailing on the date the FD matures. If you do not want automatic renewal of your FD, you need to choose this option on the account opening form.

If you have forgotten to mention it, then you can visit the bank branch on the day of maturity and ask them to credit the proceeds into your savings account.

Nowadays banks offer the facility of opening an FD account online via Net banking through your account. One can invest in FD without having to visit a branch physically. However, remember that your bank may not issue you a printed FD receipt/advice if invested online.

Disclaimer: The data/information given above is subject to change therefore before taking any decision based on it, contact the bank/institution concerned.

For any queries or changes, please write to us on etigdb@timesgroup.com or call us at 022 – 66353963.



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Collection efficiency of bank loans improves in June, BFSI News, ET BFSI

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Chennai: Banks witnessed an improvement in loan collection efficiency in June after states relaxed multiple lockdowns as the second Covid wave recedes.

For Equitas Small Finance Bank, collection efficiency for vehicle loans has come back to 89.3% in June, from 67.35% in May. While for microfinance loans, it is back at 66.9% from 63.6% and for small business loans it is back at 85.1% from 76.8%.

Its MD P N Vasudevan, “The Bank’s borrowers are largely in the informal segments dealing in daily use products and services which were temporarily disrupted due to the Covid-19 restrictions imposed. However, during June, states in the West and North experienced improved collection efficiencies as lockdowns eased while Southern states opened up towards the end of the month. We anticipate a sharp improvement in collections in the coming months as Covid wave recedes.”

For Indian Overseas Bank, the loan collection efficiency rate for small loans, vehicle and housing loans has improved to 85% between June and July from 70%-75% in May. The state-owned bank expects the recovery to be better in the September quarter, as it expects a large recovery of loans.

City Union Bank’s managing director N Kamakoti said that on an overall level, collection efficiency has recovered significantly in June as businesses have understood and adapted to lockdowns better.

A research note from Kotak on banks’ asset quality Kotak said that the recovery environment showed improvement in 1QFY22 though it is still not fully normal. There is likely to be more discussion on the recovery environment for 2QFY22 given the impact of the second Covid wave. Besides small loans, the report said it expects banks to provide a positive outlook on corporate recovery especially given a few large resolutions that have been completed/will be completed soon.



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