Tag: investment

Private firms’ bank deposits log 26.5% growth during pandemic, households lag, BFSI News, ET BFSI

Banking & Finance

[ad_1]

Read More/Less


In FY21, deposits from private sector companies grew by 26.5%, the biggest jump in nine years, even as the share of household bank deposits declined.

The share of private sector companies in total outstanding bank deposits increasing from 11.3% in FY20 to 12.7% in FY21, according to a report by Kotak Institutional Equities. The growth here has been faster than that of deposits from households, which grew by 12.9% during the year. The ratio of household (bank) deposits to GDP declined to 3 per cent in the third quarter from 7.7 per cent in July-September.

The data shows that the pandemic was not hard on private firms but households suffered.

“The slower growth in retail deposits and solid growth in the private corporate sector gives two opposing signals of the current economic condition. The private sector has accelerated deposit growth for the third consecutive year, giving further evidence that the impact of the pandemic was not negative,” the Kotak report noted.

Households hit

The first wave of Covid last year impacted households as their financial savings moderated to 8.2 per cent of GDP in the December quarter from 10.4 per cent in the previous three-month period, according to RBI data.

The preliminary estimate of household financial savings is placed at 8.2 per cent of GDP in October-December 2020-21, exhibiting a sequential moderation for the second consecutive quarter after having spiked in the pandemic-hit June quarter, RBI said in a release.

“The moderation was driven by a significant weakening in the flow of household financial assets, which more than offset the moderation in the flow of household financial liabilities,” it said.

Household debt to GDP

RBI further said household debt to GDP ratio, which is based on select financial instruments, has been increasing steadily since end-March 2019.

“It (household debt to GDP ratio) rose sharply to 37.9 per cent at end-December 2020 from 37.1 per cent at end-September 2020,” it said.

Despite higher borrowings from banks and housing finance companies, the flow in household financial liabilities was marginally lower in the third quarter following a marked decline in borrowings from non-banking financial companies.

As per the data, financial assets, including deposits, life insurance funds, provident and pension funds, currency, investments in mutual funds and equity, and small savings, stood at Rs 6,93,001.8 crore in the third quarter. It was at Rs 7,46,821.4 crore in July-September 2020-21.

Financial liabilities (loans) stood at Rs 2,48,418.7 crore in the third quarter. In the preceding quarter it was Rs 2,54,915.2 crore.



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , , , ,

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

Personal Finance

[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
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, 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.



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , , , , ,

India likely to block Chinese investment in LIC’s IPO

Banking & Finance

[ad_1]

Read More/Less


India wants to block Chinese investors from buying shares in Life Insurance Corp (LIC), which is due to go public, four senior government officials and a banker told Reuters, underscoring tensions between the two nations.

State-owned LIC is considered a strategic asset, commanding more than 60 per cent of India’s life insurance market withmore than $500 billion assets. While the government plans to allow foreign investors to participate in what is likely to be the country’s biggest-ever IPO worth a potential $12.2 billion, the sources said it is cautious of Chinese ownership, the sources said.

Read also: Centre’s big push to LIC’s mega IPO

Political tensions

Political tensions between the countries rocketed last year after their soldiers clashed on the disputed Himalayan border, and since then, India has sought to limit Chinese investment insensitive companies and sectors, banned a raft of Chinese mobile apps and subjected imports of Chinese goods to extra scrutiny.

“With China after the border clashes it cannot be business as usual. The trust deficit has significantly widen(ed),” said one of the government officials, adding that Chinese investment in companies like LIC could pose risks.

The sources declined to be identified as discussions on how Chinese investment might be blocked ongoing, and no final decisions have been made.

The finance ministry and LIC did not respond to Reuters emailed requests for comment. China’s foreign ministry and commerce ministry did not immediately respond to requests for comment.

FII investments likely

Aiming to solve budget constraints, the Centre hopes to raise ₹90,000 crore by selling 5 per cent to 10 per cent of LIC this financial year which ends in March. The government has yet to decide whether it will sell one tranche of shares seeking to raise the full amount or choose to seek the funds in two tranches, sources have said.

Under current law, no overseas investors can invest in LIC, but the government is considering allowing foreign institutional investors to buy up to 20 per cent of LIC’s offering.

Options to prevent Chinese investment in LIC include amending the current law on foreign direct investment with a clause related to LIC or creating a new law specific to LIC, two of the government officials said.

They added that the government was conscious of the difficulty in checking on Chinese investments that could come indirectly and would attempt to craft a policy that would protect India’s security but not deter overseas investors.

A third option being explored is barring Chinese investors from becoming cornerstone investors in the IPO, said one government official and the banker, although that would not prevent Chinese investors from buying shares in the secondary market.

Ten investment banks, including Goldman Sachs, Citigroup, and SBI Capital Market have been chosen to handle the offering.

[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , ,

World Bank’s call to discontinue ‘Doing Business Report’ irks Pakistan, BFSI News, ET BFSI

Banking & Finance

[ad_1]

Read More/Less


The World Bank‘s decision to discontinue ‘Doing Business Report‘ has irked Pakistan as it was confident that the country would make a leap in the next report to improve the current ranking of 108th, Dawn newspaper reported.

Previously, Pakistan progressed 39 places to secure 108th place on the ease of doing business global ranking, in the last two years. According to the Pakistani daily, the companies’ registration through the Securities and Exchange Commission of Pakistan (SECP) has shown a 63 per cent growth.

Fareena Mazhar, Board of Investment (BoI) Secretary said that they were hopeful that the work which they were doing in regulatory reforms would provide an edge in terms of any future mapping criteria. One of the main things that Pakistan was hoping to capitalize on was the promulgation of commercial courts in Punjab province.

Last week, the World Bank Group decided to discontinue publication of its Doing Business report following allegations of irregularities. The decision was taken after a probe of data irregularities due to pressure by some top bank officials to boost China‘s ranking in 2017 came forth.

The Doing Business report assesses regulatory environments, ease of business startups, infrastructure and other business climate measures.

“After reviewing all the information available to date on Doing Business, including the findings of past reviews, audits, and the report the Bank released today (Thursday) on behalf of the Board of Executive Directors, World Bank Group management has taken the decision to discontinue the Doing Business report,” it said in a statement posted on the website.

The probe of data irregularities cited ‘undue pressure’ by top bank officials, including then-Chief Executive Kristalina Georgieva, to boost China’s ranking in 2017.

Georgieva, now the Managing Director of International Monetary Fund, and a key adviser pressured staff to ‘make specific changes to China’s data points’ and boost its ranking at a time when the Bank was seeking China’s support for a big capital increase.



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , ,

Yes Securities , BFSI News, ET BFSI

Personal Finance

[ad_1]

Read More/Less


Yes Securities has buy call on Axis Bank with a target price of Rs 822. The current market price of Axis Bank Ltd. is Rs 783.75.

Time period given by analyst is Intra Day when Axis Bank Ltd. price can reach defined target. Axis Bank Ltd., incorporated in the year 1993, is a banking company (having a market cap of Rs 240332.38 Crore).

Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 20285.41 Crore, down -3.53 % from last quarter Total Income of Rs 21028.45 Crore and up 4.23 % from last year same quarter Total Income of Rs 19461.77 Crore. The bank reported net profit after tax of Rs 2356.91 Crore in latest quarter.

Investment Rationale
The stock has resumed the uptrend after breaking out of a Triangle pattern resistance on good volumes. Technical indicator RSI has turned upwards after forming a positive divergence, confirming the bullishness.

Promoter/FII Holdings
Promoters held 11.4 per cent stake in the company as of June 30, 2021, while FIIs held 53.7 per cent, DIIs 23.7 per cent and public and others 11.3 per cent.



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , , , ,

Best banking & PSU debt funds to invest in 2021, BFSI News, ET BFSI

Banking & Finance

[ad_1]

Read More/Less


Mutual fund experts believe that given the uncertainty around rates and liquidity, the outlook for banking & PSU fund schemes continues to be positive. Banking & PSU funds have offered 5.35% returns in the last one year. Here is a monthly update our list of recommended banking & PSU funds for 2021. There is no change in our list of recommended banking & PSU funds in August.

Another update-LIC MF Banking & PSU Debt Fund lies in 3rd quartile for 5 months, was in 4th quartile before that and in 3rd quartile prior to it. The scheme has been slipping on the performance chart, but if you have investments in the scheme, you should hold onto them. We will continue to monitor the performance of the fund and update you.

Banking & PSU mutual funds have the mandate to invest at least 80% of their corpus in debt instruments of banks, public sector undertakings, public financial institutions. Because of the investment universe and the government ownership of most of the entities, investment experts consider these schemes as safer investments.

These schemes have the option to invest in private banks, too. However, since banks are tightly regulated and monitored by the Reserve Bank of India and the central government, many investors believe they are relatively safer even in times of crisis.

If you are looking for relatively safer investment options in the debt mutual fund category to invest for three years or more, you may consider investing in these schemes. They may offer you some extra after-tax returns than the traditional bank fixed deposits.

Best banking & PSU funds to invest in 2021

  • IDFC Banking & PSU Debt Fund
  • Axis Banking & PSU Debt Fund
  • Aditya Birla Sun Life Banking & PSU Debt Fund
  • DSP Banking & PSU Debt Fund
  • LIC MF Banking & PSU Debt Fund

Methodology
ETMutualFunds.com has employed the following parameters for shortlisting the debt mutual fund schemes.

1. Mean rolling returns: Rolled daily for the last three years.

2. Consistency in the last three years: Hurst Exponent, H is used for computing the consistency of a fund. The H exponent is a measure of randomness of NAV series of a fund. Funds with high H tend to exhibit low volatility compared to funds with low H.

i)When H = 0.5, the series of return is said to be a geometric Brownian time series. These type of time series is difficult to forecast.

ii)When H

iii)When H>0.5, the series is said to be persistent. The larger the value of H, the stronger is the trend of the series

3. Downside risk: We have considered only the negative returns given by the mutual fund scheme for this measure.

X =Returns below zero

Y = Sum of all squares of X

Z = Y/number of days taken for computing the ratio

Downside risk = Square root of Z

4. Outperformance: Fund Return – Benchmark return. Rolling returns rolled daily is used for computing the return of the fund and the benchmark and subsequently the Active return of the fund.

Asset size: For Debt funds, the threshold asset size is Rs 50 crore

(Disclaimer: past performance is no guarantee for future performance.)



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , , , ,

Best banking & PSU debt funds to invest in 2021, BFSI News, ET BFSI

Banking & Finance

[ad_1]

Read More/Less


Mutual fund experts believe that given the uncertainty around rates and liquidity, the outlook for banking & PSU fund schemes continues to be positive. Banking & PSU funds have offered 5.35% returns in the last one year. Here is a monthly update our list of recommended banking & PSU funds for 2021. There is no change in our list of recommended banking & PSU funds in August.

Another update-LIC MF Banking & PSU Debt Fund lies in 3rd quartile for 5 months, was in 4th quartile before that and in 3rd quartile prior to it. The scheme has been slipping on the performance chart, but if you have investments in the scheme, you should hold onto them. We will continue to monitor the performance of the fund and update you.

Banking & PSU mutual funds have the mandate to invest at least 80% of their corpus in debt instruments of banks, public sector undertakings, public financial institutions. Because of the investment universe and the government ownership of most of the entities, investment experts consider these schemes as safer investments.

These schemes have the option to invest in private banks, too. However, since banks are tightly regulated and monitored by the Reserve Bank of India and the central government, many investors believe they are relatively safer even in times of crisis.

If you are looking for relatively safer investment options in the debt mutual fund category to invest for three years or more, you may consider investing in these schemes. They may offer you some extra after-tax returns than the traditional bank fixed deposits.

Best banking & PSU funds to invest in 2021

  • IDFC Banking & PSU Debt Fund
  • Axis Banking & PSU Debt Fund
  • Aditya Birla Sun Life Banking & PSU Debt Fund
  • DSP Banking & PSU Debt Fund
  • LIC MF Banking & PSU Debt Fund

Methodology
ETMutualFunds.com has employed the following parameters for shortlisting the debt mutual fund schemes.

1. Mean rolling returns: Rolled daily for the last three years.

2. Consistency in the last three years: Hurst Exponent, H is used for computing the consistency of a fund. The H exponent is a measure of randomness of NAV series of a fund. Funds with high H tend to exhibit low volatility compared to funds with low H.

i)When H = 0.5, the series of return is said to be a geometric Brownian time series. These type of time series is difficult to forecast.

ii)When H

iii)When H>0.5, the series is said to be persistent. The larger the value of H, the stronger is the trend of the series

3. Downside risk: We have considered only the negative returns given by the mutual fund scheme for this measure.

X =Returns below zero

Y = Sum of all squares of X

Z = Y/number of days taken for computing the ratio

Downside risk = Square root of Z

4. Outperformance: Fund Return – Benchmark return. Rolling returns rolled daily is used for computing the return of the fund and the benchmark and subsequently the Active return of the fund.

Asset size: For Debt funds, the threshold asset size is Rs 50 crore

(Disclaimer: past performance is no guarantee for future performance.)



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , , , ,

Bandhan Bank to invest in digital capabilities, BFSI News, ET BFSI

Banking & Finance

[ad_1]

Read More/Less


Kolkata, Aug 23 (PTI) MFI-turned-bank Bandhan Bank will invest in improving digital capabilities as a part of Vision 2025, MD and CEO of the private lender Chandra Sekhar Ghosh said on Monday. Speaking at the sixth foundation day programme of the bank, Ghosh said the bank will also leverage machine learning and artificial intelligence.

“As a part of Vision 2025, Bandhan Bank will invest in digital capabilities. There is a need for digital transformation and improving the technology backbone,” he said.

With a present business size of Rs 1.50 lakh crore, Ghosh said the vision envisaged by the bank is having a well-diversified asset portfolio, optimum mix of secured and unsecured assets and geographically diversified.

Former chairman of State Bank of India and present head of Salesforce India, Arundhuti Bhattacharya, said there is a need for the bank to shift data on the cloud from its own premises and the regulatory system should encourage this migration. PTI dc NN NN



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , ,

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

Banking & Finance

[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
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, 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.



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , , , , ,

Centrum Broking , BFSI News, ET BFSI

Banking & Finance

[ad_1]

Read More/Less


Centrum Broking has add call on Ujjivan Small Finance Bank with a target price of Rs 31. The current market price of Ujjivan Small Finance Bank Ltd. is Rs 25.9.

Time period given by analyst is one year when Ujjivan Small Finance Bank Ltd. price can reach defined target. .
Ujjivan Small Finance Bank Ltd., incorporated in the year 2016, is a banking company (having a market cap of Rs 4484.98 Crore).

Financials
For the quarter ended 30-06-2021, the company reported a Standalone Total Income of Rs 716.29 Crore, down -2.56 % from last quarter Total Income of Rs 735.14 Crore and down -7.57 % from last year same quarter Total Income of Rs 774.98 Crore. The bank reported net profit after tax of Rs -233.47 Crore in latest quarter.

Investment Rationale
Provision spike could impact FY22 PAT by 76% while overall stress accretion would lower FY22/23 ABV by 20%/13%. MFI/MSE loan exposure at 80% is affecting Ujjivan, leading to rise in delinquencies and protracted recoveries. Lower multiple to 1.8x FY23ABV (earlier 2.1x), revise TP to Rs31 from Rs42. Change rating from BUY to ADD. Risks: higher provisions.

Promoter/FII Holdings
Promoters held 83.3 per cent stake in the company as of June 30, 2020, while FIIs held 5.1 per cent, DIIs 4.2 per cent and public and others 7.3 per cent.

Follow and connect with us on , Facebook, Linkedin



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , , , ,
1 2 3 4