Reserve Bank of India – Press Releases
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The Result of the auction of State Development Loans for 05 State Governments held on November 09, 2021.
Ajit Prasad Press Release: 2021-2022/1166 |
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Indian Bank launches video KYC facility enabled by VCIP technology, BFSI News, ET BFSI
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Public sector Indian Bank on Tuesday said it has launched the Video KYC (know your customer) facility, which allows an applicant to open an account from anywhere by incorporating its Video-Based Customer Identification Process (VCIP) technology, on its web-based platforms. To begin with, Indian Bank, in a statement said the initiative would dispense with the need for a personal visit to any branch of the bank to complete the physical verification process in place, currently.
The Video KYC facility, developed in conjunction with Gieom Business Solutions, further simplifies the subsequent steps and would deliver the cheque book and ATM card to the registered address of a customer.
Customers can proceed to deposit the minimum balance through offline or online route and transact seamlessly using the ATM card and mobile banking after completing the initiation procedures.
“It is a momentous occasion for us at Indian Bank to launch our Video KYC facility that will be using the latest VCIP technology to enhance customer convenience and experience.”, the bank’s MD and CEO, Shanti Lal Jain said.
“We will extend this facility to all applicable services in a phased manner… additionally, this should help us extend our reach and significantly help us in driving financial inclusion… This is a step towards digitization,” he said.
The pre-requisites to avail the Video KYC facility are a valid mobile number, e-mail, PAN Card, Aadhaar number (linked with mobile number) and access to a computer equipped with camera and a microphone facility.
The process validates the applicant’s credentials from multiple sources like a bank representative initiated video-call, information from UIDAI, and OTP for registration of the mobile number, the statement added.
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Study, BFSI News, ET BFSI
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MUMBAI: A study published by the State Bank of India (SBI) has said that business correspondents, who are channels for most Jan Dhan account transactions, are overcharging public sector banks (PSBs) by routing transactions in a manner aimed at maximising fees. The report has called for changes in norms for business correspondents to promote financial inclusion.
Business correspondents connect to banking systems using handheld devices that are similar to credit card-swipe machines. These machines are capable of using Aadhaar biometric or debit cards for authorisation.
If the business correspondent provides service to customers of a bank using an application of the same bank, the transaction is considered as an ‘on us’ transaction by the bank.
If the service is provided to a customer using an application of another bank, the transaction becomes an ‘off us’ for the bank where the customer holds their account and the bank ends up paying an interchange fee.
The report, authored by SBI group’s chief economic adviser Soumya Kanti Ghosh, has called upon the RBI to disincentivise business correspondents who are converting ‘on us’ transactions of public sector banks into ‘off us’ ones on the Aadhaar-enabled Payment System (AePS) to earn interchange fee and more commission.
Business correspondents have taken centre stage in rural banking after the RBI’s new branch authorisation policy of 2017 recognised them as providing service for a minimum of four hours a day for five days a week as banking outlets. Their number has risen from 34,000 in 2010 to 12.4 lakh in December 2020. They have been the cornerstone of servicing the 43.7 crore Jan Dhan accounts, 78% of which are with public sector banks.
According to the report, the problem lies in the flexibility given to business correspondents concerning interoperability of transactions, which has allowed them to game the system.
“We estimate that the PSBs could be paying Rs 600-700 crore per annum as interchange fee. This money could be used by PSBs to further financial inclusion more holistically,” said Ghosh.
The report has suggested that the AePS should work like the point-of-sale (PoS) terminal used by merchants. Converse to what is happening among business correspondents, in PoS machines the acquiring bank pays a fee to the issuing bank.
“Alternatively, there could be rationalisation in interchange fee as there is no level playing field in infrastructure provided by all banks,” the report said.
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Tata Motors partners up with Bank of India; new vehicle financing means for customers, BFSI News, ET BFSI
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Tata Motors on Tuesday said it has partnered with Bank of India (BOI) to offer finance options to all its passenger vehicle customers. Under the partnership, BOI will provide loans to Tata Motors’ customers at an interest rate starting from as low as 6.85%, the company said in a statement.
Moreover, the scheme will offer a maximum of 90% financing on the total cost of the vehicle, which includes insurance and registration, it added.
Customers can also opt for EMI starting with Rs 1,502 per lakh on a 7-year repayment period, the company said.
“This partnership is in line with our #FinancEasy Festival, wherein we are collaborating with multiple finance partners across India to make ownership of cars accessible, as well as a hassle-free process for the customers and thereby adding to the celebrations of this festive season,” Tata Motors Vice President, Sales, Marketing & Customer Care, Passenger Vehicle Business Unit Rajan Amba said.
BOI General Manager – Retail Business Rajesh Ingle said Bank of India has reoriented the banking services with retail customer as focal point by designing products that are aligned to customer needs.
“Our vehicle loan products with lowest rate of interest is one such product. Bank’s tie-up with Tata Motors will be win-win for customers in the sense that they can access best in class personal mobility solution with the best finance option from Bank of India,” he added.
The offers through the partnership will be applicable on the New Forever range of conventional cars and SUVs as well as on EVs for personal segment buyers across the country, the statement said.
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IDFC Ltd registers ₹262.55 cr consolidated net profit in Q2
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IDFC Ltd reported a turnaround performance, posting ₹262.55 crore consolidated net profit in the second quarter against a loss of ₹146.68 crore in the year-ago period.
The profitability was buoyed as the company received ₹200 crore as its share of profit from its associates and joint ventures. The company had incurred a loss of ₹169 crore under this head in the year-ago period. The consolidated profit before tax was higher at ₹84.57 crore (₹35.84 crore in the year-ago period).
IDFC Ltd is an investing company of the IDFC group. The company has its investments in subsidiaries and associates of the group.
Merger scheme approval
The Board of Directors of IDFC Ltd, as part of the simplification of the corporate structure, approved the merger scheme of IDFC Alternatives Ltd, IDFC Trustee Company Ltd and IDFC Projects Ltd (wholly-owned subsidiary companies) into IDFC Ltd – subject to regulatory approvals from various authorities as applicable.
RBI has, vide its letter dated July 20, 2021, clarified that after the expiry of the lock-in period of five years, IDFC Ltd can exit as the promoter of IDFC FIRST Bank, as per the notes to accounts.
The Board of Directors of IDFC and IDFC Financial Holding Company, at their respective meetings held on October 21, 2021, had appointed Citigroup Global Markets India Pvt Ltd as an investment banker for the disinvestment of IDFC Asset Management Company, according to the notes.
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KKR India appoints KV Kamath as senior advisor, BFSI News, ET BFSI
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KKR, a global investment firm, announced today the appointment of KV Kamath as a senior advisor. His appointment is effective immediately.
“KKR has consistently demonstrated its strong commitment to India, and the firm today stands out as one of the highest-caliber investors in innovative, market-leading companies in the country and worldwide. I am excited by the opportunity to work alongside Gaurav and the broader KKR team and welcome the chance to leverage my experience to help Indian businesses elevate and meet their full potential,” said KV Kamath.
KV Kamath brings more than five decades of experience leading large Indian businesses. He has served as the first President of the New Development Bank, established by the BRICS nations, from its founding in 2015 until 2020.
“We are pleased to welcome K.V. as a senior advisor to our team in India, and are excited to learn from his terrific insights as we continue to invest in the growth of India. KV has a truly outstanding track record of working with different stakeholders while building world-class businesses. He joins at an exciting time for KKR in India, and I am confident of the value that he will bring to our franchise and businesses,” says Gaurav Trehan, Partner & CEO of KKR India.
Kamath has also served as the chairman of ICICI Bank and Infosys Ltd. In October, he was appointed as the chairperson of National Bank for Financing Infrastructure and Development, which was created to support the development of long-term infrastructure financing in the country.
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Banks, ATM operators seek RBI to review penalty scheme for dry ATMs
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Banks and ATM operators are hopeful that the Reserve Bank of India (RBI) will soon review the penalty on ATMs that have run out of cash but many are on a wait-and-watch mode on the expansion of their ATM networks.
“With the penalty in place, it makes more sense to have ATMs on-site along with bank branches than to keep them off-site. This would ensure that the ATMs can be serviced easily and frequently,” noted a senior bank executive.
“We are hopeful that there will be some relief. Otherwise, the penalty could also impact expansion into semi-urban and rural areas as there are often logistical challenges in loading cash,” noted another banker.
The RBI had in August this year announced the scheme of penalty for non-replenishment of ATMs under which ATMs with no cash for more than ten hours in a month will attract a flat penalty of ₹10,000 each. The scheme has come into effect from October 1, 2021.
Scaling down
“The penalty may impact the deployment of ATMs in rural and remote locations. Withdrawals would become difficult in such a scenario, especially when there is a focus on financial inclusion,” said Radha Rama Dorai, Secretary, Confederation of ATM Industry (CATMi).
CATMi had recently also made a representation to the RBI pointing out that while it is supportive of the move that would help customers, the ATM industry is already under tremendous pressure due to Covid, will have no option but to scale down dramatically.
It estimates that about 70 to 80 per cent of semi-urban and rural ATMs and 20 to 30 per cent of urban ATMs will be liable for the penalty. The likely penalty on operators will be around ₹80-100 crore per month, it had said.
“We hope to get a positive response from the RBI on our representation,” said Dorai.
RBI Deputy Governor T Rabi Sankar had on October 8 also said the RBI is reviewing this penalty scheme after getting feedback from lenders.
“We have received various feedback — some positive and some raising concerns. There are issues specific to locations. We are trying to take all the feedback and have a review and see how best it can be implemented,” he had told reporters.
There are about 2.13 lakh ATMs in the country as of September 30, 2021, of which 1.15 lakh are on-site and the balance 97,383 are off-site.
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Karnataka Bank Modifies Interest Rates On FD: Check Latest Rates Here
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Karnataka Bank FD Rates
For a deposit amount of less than Rs 2 Cr, the bank is now offering an interest rate of 3.40% to 5.50% on deposits maturing in 7 days to less than 10 years. With effect from 1st November 2021, Karnataka Bank is offering the following interest rates on fixed deposits to the general public.
| Tenure | Interest Rate (% p.a) |
|---|---|
| 7 days to 45 days | 3.4 |
| 46 days to 90 days | 4.9 |
| 91 days to 364 days | 5 |
| 1 year to 2 Years | 5.1 |
| Above 2 Years to 5 years | 5.4 |
| Above 5 years to 10 years | 5.5 |
| Source: Bank Website. W.e.f. 01st November 2021 |
Karnataka Bank FD Rates For Senior Citizens
Senior citizens will continue to get an additional rate of 0.40% on their deposits maturing in 1 to 5 years and 0.50% extra over the general rate for the tenure of 5 to 10 years. With effect from 1st November 2021, Karnataka Bank is offering the following interest rates on fixed deposits to senior citizens.
| Tenure | Interest Rate (% p.a) |
|---|---|
| 1 year to 2 Years | 5.5 |
| Above 2 Years to 5 years | 5.8 |
| Above 5 Years to 10 years | 6 |
| Source: Bank Website. W.e.f. 01st November 2021 |
Karnataka Bank NRE Rupee Term Deposits Interest Rates
On NRE Rupee Term Deposits of less than Rs 2 Cr, the bank has also revised its interest rates on 01.11.2021 which are as follows.
| Tenure | Interest Rate (% p.a) |
|---|---|
| 1 to 2 Years | 5.1 |
| Above 2 Year to 5 Years | 5.4 |
| Above 5 Year to 10 Years | 5.5 |
| Source: Bank Website. W.e.f. 01st November 2021 |
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10 Pharma Stocks With Zero Debt And RoE Over 20 Per cent
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What is RoE and how is it important?
Return of equity calculates the net profit realized as a percentage of shareholder’s equity. The financial ratio is arrived at by dividing net profit by net worth which can be equity plus reserves and retained earnings.
Low or high RoE which is good for investors
High RoE signifies that the company is able to deploy the shareholders’ capital and can provide substantial returns and as per analysts stocks offering an RoE of over 20 percent can be considered as good investments. So now as we know as stock picking can be done employing this technique, here are the pharma names with RoE over 20 percent and zero debt.
1. IOL Chemicals:
This company is innovation focused bulk drug, intermediates as well as specialty chemicals company. The company has over 3 decades experience and is an API based pharma company. The company’s API portfolio comprisestherapeutic categories, such as Pain Management, Anti-diabetic, Anti-hypertensive, and Anti-convulsant, amongst others.
The company’s market cap is at Rs. 3257 crore and last quotes at a price of Rs. 555 per share.
The company’s RoE is at a staggering 43 percent and a net zero debt.
2. Abbott:
The company’s RoE stands at 27.89 percent while its debt to equity has been zero. Abbott India is a healthcare entity discovering, developing, manufacturing and marketing several products in areas including Anesthesia, Animal Health, Anti-Infectives, Cardiovascular, Diabetes Care, Hematology, Immunodiagnostics and Clinical Chemistry, Immunology, Metabolics, Molecular, Neuroscience, Nutrition, Oncology, Pain Care, Point of Care, Renal Care, Vascular, Virology.
Abbott for the period ending June of FY22 posted Rs. 195.76 crore net profit as against Rs. 152 crore in the March quarter.
3. Eris Lifescience:
The company has been consistent in maintaining itself a zero debt company since the year 2019, while its RoE is at 24.78 percent.
This is the only publicly listed Indian pharmaceutical company with a pure-play domestic branded formulations business model. The company since inception in 2007 has primarily focused on chronic and sub chronic lifestyle related therapies. The company’s revenues exceeded Rs. 1,200 crore for the year ended March 2021.
The stock’s latest market capitalization is at Rs. 10,786 crore.
4. Divis Lab:
The stock’s RoE is 23.90 percent with debt to equity continuing to be zero for the last two years. The company is a large cap scrip with 1,31,307 crore.
The Hyderabad based company is into manufacturing of Generic APIs, Nutraceutical Ingredients and offers Custom Synthesis of APIs to Big Pharma. The company leads in APIs, Intermediates and Registered starting materials offering high quality products with the highest level of compliance and integrity to over 95 countries.
The company has recently been recognized as the third top manufacturer of APIs globally.
Other than the above, Astrazeneca, Gland Pharma, Glaxo Pharma, Ajanta Pharma, Sanofi, Procter and Gamble Health are all debt free pharma firms with zero debt.
Disclaimer:
These are two metrics based on a company’s fundamentals can be decided upon and can offer an opportune avenue of investment, nonetheless, readers should not consider it to be an investment advice into the above listed pharma scrips.
GoodReturns.in
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Net profit soars 785% YoY, beats estimate; sales rise 15%, BFSI News, ET BFSI
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MUMBAI: Mahindra & Mahindra on Tuesday reported a 785 per cent year-on-year (YoY) growth in net profit to Rs 1,431.7 crore for the quarter ended September, which was above analysts’ expectations of Rs 1,014 crore.
The year-on-year jump in net profit for the automaker is largely because of a more than Rs 1,400 crore asset impairment charge taken by the company in the year-ago quarter. In the current quarter, M&M took a Rs 255 crore asset impairment charge, the company said.
The tractor manufacturer reported a 14.7 per cent on-year growth in revenue from operations to Rs 13,305.4 crore for the reported quarter, which was also above Street’s estimate of Rs 12,428.9 crore.
“We have seen significant all around improvement in our performance this quarter. Our strong show in the Auto and Farm sectors was complemented well by the improved performance in the group companies,” said Anish Shah, managing director and chief executive officer at M&M.
While the topline and bottomline of the company were impressive, its operating performance suffered due to surge in input costs.
M&M’s operating profit for the reported quarter slumped 19 per cent YoY to Rs 1,660 crore largely because of a 40 per cent spike in cost of raw material used by the company. The tractor maker’s margins shrank 527 basis points on year to 12.47 per cent in the reported quarter.
“Commodity prices have impacted our margins in both the Auto and Farm business, but our focus on cost management and optimisation has helped mitigate some of the impact,” said Manoj Bhat, group chief financial officer at M&M.
M&M said that its automotive segment saw robust demand despite global semiconductor shortage hampering production in the quarter. The company added that the segment’s booking pipeline was healthy and there is buoyant demand for its products.
The farm business reported its second best performance in history aided by a 190 basis points improvement in market share for the tractor business, M&M said.
Shares of M&M were up 2.3 per cent at Rs. 878.9 on the National Stock Exchange.
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