Today on October 1, the gold market in India is shining with a major price after almost 3 months. Today Indian gold rates hiked by Rs. 980 / 10 grams, which is a very considerable gain for gold now. Today, 22 carat gold is quoted at Rs. 45,470 / 10 grams and 22 carat gold is quoted at Rs. 46,470 / 10 grams in India. Apart from daily price ups and downs, Indian gold rates have seen this amount of change in the first half of August. The rates dropped around Rs. 1000 at, as July employment data of US came out.
Now, in the first week of October, the gold rates on the other hand are on the verge of gain, as the US Federal Reserve Chair Jerome Powell sounded dovish about the country’s employment data. He said that the US is still “far from full employment”. Hence the gold rates gained immediately. On the other hand, US Treasury Secretary Janet Yellen is very concerned about the US debt ceiling that pushed the US Dollar index down. So, both of the situations are favorable for gold at present. So, ahead of the festive season in India, gold rates can hike to some extend.
Now gold is again being able to maintain the $1755 levels or more. The Comex gold future fell only by 0.27% but succeeded to stay at $1752, while the spot gold market fell only by 0.26% and was quoted at $1753/oz, today till 2.26 PM IST. On the other hand, the US dollar index in the spot market dropped by 0.06% at 94.24 same time today, as the US debt ceiling is concerning now. In India, the Mumbai MCX gold in October future fell by only 0.18% than yesterday and was quoted at Rs. 46435/10 grams till today 2.40 PM IST. Indian gold prices now are on the path of increasing since yesterday.
Gold rates in different Indian cities are quoted differently, daily. Today’s gold rates in major Indian cities follow:
City
22 carat (INR/10 Grams)
24 carat (INR/10 Grams)
Mumbai
45,470/-
46,470/-
Delhi
45,550/-
49,700/-
Bangalore
43,400/-
47,350/-
Hyderabad
43,400/-
47,350/-
Chennai
43,920/-
47,910/-
Kerala
43,400/-
47,350/-
Kolkata
45,850/-
48,550/-
Gary Wagner of thegoldforecast.com to a Kitco report added, “Whether this new-found bullish sentiment will persist is dependent on multiple fundamental events. On Friday, the most current inflationary data will be released when the Census Bureau releases its most recent data vis-à-vis the PCE (Personal Consumption Expenditures) inflation rate. The PCE is the preferred inflationary measure by the Federal Reserve. It differs from the CPI in that it strips out food and energy costs.”
Among the small finance banks, North East Small Finance Bank is the first in our list based on our own research and analysis that is promising up to 7.50% returns to regular citizens, and 8.00% returns to senior citizens on recurring deposits. With effect from 19th April 2021, the bank is now promising the following interest rates on recurring deposits.
Tenure
Card Rates upto 2 cr (in % p.a.)
Senior Citizen (in % p.a.)
3 Months
4.25
4.75
6 Months
4.5
5
9 Months
5.5
6
1 Year
5.5
6
2 Year
7.5
8
3 Year
7
7.5
4 Year
7
7.5
5 Years
6.5
7
More than 5 years upto 10 years
6.5
7
Source: Bank Website
Utkarsh Small Finance Bank
One can open a recurring deposit account at Utkarsh Small Finance Bank with an amount in multiples of Rs. 100 only and for tenure in multiples of 3 months. With effect from 01 July 2021, Utkarsh Small Finance Bank is offering the highest interest rates of 7.00% to the general public and 7.50% to senior citizens on recurring deposits per annum.
Tenure
General Customers
Senior Citizens
Upto 6 months
6.50%
7.00%
9 months
6.50%
7.00%
12 months
6.75%
7.25%
15 months
6.75%
7.25%
18 months
6.75%
7.25%
21 months
6.75%
7.25%
Above 21 Months to less than 24 Months
6.75%
7.25%
24 months to 36 months
7.00%
7.50%
Above 3 Years upto 5 Years
6.75%
7.25%
Above 5 years upto 10 years
6.75%
7.25%
Source: Bank Website, W.E.F. July
01, 2021
Suryoday Small Finance Banks
For a minimum installment amount for an RD of Rs 100 (and multiples of Rs 100 thereof), Suryoday Small Finance Bank is promising the following interest rates on recurring deposits of less than Rs 2 Cr.
Period
Interest Rate (Per Annum)
Senior Citizen Rate (Per Annum)
6 months
4.75%
4.75%
9 months
5.25%
5.25%
12 months
6.50%
6.75%
15 months
6.50%
6.75%
18 months
6.50%
6.75%
21 months
6.50%
6.75%
24 months
6.50%
6.75%
27 months
6.25%
6.50%
30 months
6.25%
6.50%
33 months
6.25%
6.50%
36 months
7.00%
7.30%
Above 3 Years to less than 5 Years
6.50%
6.50%
5 Years
6.75%
7.00%
Above 5 Years to 10 Years
6.00%
6.00%
Source: Bank Website, ( Effective: From September 09, 2021 )
Jana Small Finance Bank
At Jana Small Finance Bank, one can open an RD account with a minimum installment of Rs 100 in multiples of Rs 100. With effect from 10th June 2021, Jana Small Finance Bank is offering the below-listed interest rates on recurring deposits.
Period
Regular RD Interest Rate (p.a.)
Senior Citizen RD Interest Rate (p.a.)
> 1 Month – 6 Months
4.00%
4.50%
> 6 Months – 12 Months
5.50%
6.00%
> 12 Months – 36 Months
6.50%
7.00%
> 36 Months – 60 Months
6.75%
7.25%
> 60 Months – 120 Months
6.00%
6.50%
Source: Bank Website, Effective Date – 10th June’21
Public Provident Funds (PPFs) are secured saving options you can open at banks or Post Office, with fixed interest offered by the government. Interest rates of PPF accounts are changed quarterly by the government. Now, the RBI has decided to keep the rate unchanged at 7.1% for the upcoming 3 more months. It is a secured fixed income option, but you should think twice before investing here, as the inflation rates in India are not in a favorable position now. A PPF account usually is locked for 15 years, to mature. So, if you get a 7.1% interest and the inflation stays around 6%, then you are not making much profit.
As the inflation rates will change, the union government will also modify the interest rates. But, in whatever case, the profit you will be making in the long-term will not be very high. This is the reason, fixed interest schemes like PPFs are commonly referred to by some people as savings schemes, and not very profitable investment schemes. However, other investment opportunities in fixed and variable returns must be analyzed wisely before investing anywhere. Depending on your requirement of assurance and risk appetite, you can start investing.
Compare with other fixed-income options
If you are interested in PPF for its assured income, you must compare it with other investments with fixed interest rates like FD or Post Office TD accounts. Now, the TD rates are staying around 5.5% to 6.7%, from 1 year to 5 years investment in TD or FD schemes. SBI FD interest rate starts from 5.3%. But If you choose a PPF scheme, you will get a better interest of 7.1%, although you will have to keep the scheme alive for 15 years. Only after 5 years, you can withdraw the PPF scheme with reduced interest. In FD you need to deposit the money at once, but in PPF the deposit time is very flexible. There are also some LIC schemes for long-term periods (15 years or more) like Jeevan Lakshya, Jeevan Lakh, Jeevan Umang, etc., with fixed income. Keeping money at LIC always gives you an additional opportunity for life insurance, unlike a PPF account scheme. But PPF’s interests are lucrative.
For example, if you are choosing LIC Jeevan Lakshya for 15 years with Rs. 1,50,000 plan at you 30 years age, you will have to deposit the whole money within first 12 years. After 15 years when the policy will mature, you will get approximately Rs. 2,37,000, if you are alive (Source: All In One Calc, LIC). But in the case of a PPF account, if you invest the same amount of Rs. 1,50,000 for 15 years, you will get Rs. 2,71,214 after maturity. So the difference is in LIC is that you will have the insurance opportunity, but will get better interest in PPF. So, choose wisely according to your requirements.
Compare with variable income options
Mutual funds or SIPs also offer similar kinds of flexible or systematic investment habits. In SIPs your returns are not secured, you might earn better than a PPF, but can also lose your money due to an equity market crash. But a PPF account’s returns will be assured by the RBI. However, the falling interest rates due to inflation and the pandemic is concerning some investors now.
Axis bluechip, DSP equity fund, Motilal Oswald focussed 25 funds, ICICI Prudential Bluechip are some of the best bluechip SIPs for 2021 suggested by policybazaar.com, – that can fetch you better returns with monthly investment, in shorter terms. But you must have a risk appetite to invest in mutual funds or SIPs. Gold is also a lucrative asset now, with RBI SGB, Gold ETF, or digital gold you can invest a very small amount monthly or any time, with no burden of lump-sum investment. You can start investing in digital gold from Rs. 100, Gold ETFs are also affordable funds. Risk is much lower in gold or long-term investment, and it will also diversify your investments.
Due to the pandemic, the interest rates for PPFs are considerably low now, according to the government’s monetary policy. The rates are not expected to reach the Pre-Covid rates soon. If you see the interests on a long-term basis, the amount can be lesser than equity investments or gold investments. Because after 15 years, when the PPF account will be mature, domestic inflation will be at much higher rates.
Yet, why are PPF accounts preferred by investors?
A PPF account provides the facility of both fixed and flexible deposits. It means you can deposit the money any time in an FY, there will not be any burden of mandatory investment. But if you have a fixed income monthly and looking for a regular or systematic investment habit, you can deposit money regularly. You can link your PPF account to another savings account, from where a fixed amount of money will be deposited to your PPF account monthly or bi-weekly, or quarterly, as you wish.
If you are not good at savings by yourself, this is a good opportunity for your investment. The money will be credited to your PPF account automatically even if you do not visit the Post Office or the bank physically, or do not deposit money online every time. Even if you forget to deposit, it will not be a problem as the credit amount will be auto-generated. Also, some people choose bank FDs when they earn a lump sum amount at once. But with better interests, you can now deposit the money in your PPF account, as there is no bar on the number of money deposits in an FY. However, the systematic investment option is the USP of SIPs, which you can explore.
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The pre-bid meeting of the captioned e-tender was scheduled to be held on October 01, 2021 at 3:00 PM.
2. However due to administrative reasons, the pre-bid meeting of the captioned tender has been postponed. Further, date of the pre-bid meeting will be intimated in due course.
Today, on the first trading day of October all investors are paying attention to the upcoming gold rates in the month. Today Indian gold rates hiked by Rs. 980/ 10 grams than yesterday. Gold prices in India only experienced a moderate hike since August, but mostly dropped. In July the monthly gold price change was at a positive 2.58%, while in August the same slipped by 2.11%, and again in September, it dropped by 4.08%. In September, the Indian gold rates dropped highest since March 2021 – when the prices were at the lowest levels in this year’s range. Hence, if the same bearish trend of September gold rates is passed on to October, the gold traders will certainly sound worried. But the situation changed from yesterday evening.
Why did gold prices rally yesterday?
Yesterday, both gold futures and spot gold prices stayed mostly in the range between $1722/oz to $1735/oz, till noon; some risk-hedging supported the bullion. But since the evening, the situation has changed. Global gold rates started to hit higher and again crossed the $1755 mark. The reason behind this sudden change was US Federal Reserve Chair Jerome Powell’s dovish tone about the country’s employment scenario. Today on October 1, both Comex October future and spot gold prices started with the $1755 range, which is a positive tone for gold traders.
October prices expectations
If the situation stays affirmative for gold in October, the metal can stay hefty in the range of $1755 to $1765, or more. But if the rates fall again, it can move around $1725 to $1700 in October. Ahead of the festive season in India, gold traders and the IBJA would prefer to keep gold rates in a strong range. However, that will depend on US economic trends, as gold is a dollar-dominated asset class.
October gold rates, in the whole month, will mostly depend on 2 factors. The US Core Personal Consumption Expenditure (PCE) index for inflation and the August non-farm payroll data will be published in the first week of October. Any positive tune of the employment data and the US inflation can only drag down the gold rates further this month. Otherwise, there are good possibilities that the prices can rally. But if the Federal Reserve, the country’s central bank is unhappy with the data and does not tighten the monetary policy soon, gold rates will continue to rally higher.
US employment concerns mattered
In the 1st week of August, gold rates faced a major challenge as the July employment data got published setting a very optimistic tone, suggesting fast recovery along with an earlier-than-expected tapering timeline. This trend continued in September moderately, until Fed Chair Powell testified before the House Committee on Financial Services and commented, the US is still “far from full employment.” The central bank will certainly require very promising employment data to back an interest rate hike, which is not expected very shortly now. The August non-farm payroll data can only confirm this. So, the gold rates might hike slowly with any more dovish sentiment from Chair Powell.
US debt ceiling factor
Along with Powell, yesterday, US Treasury Secretary Janet Yellen also testified and said, “Credit of the US would be impaired, and our country will face financial crisis and an economic recession. It’s necessary to avert a catastrophic event for our economy.” Her comment was in concern with the US debt ceiling; as the government will run out of money on October 18. If the government does not raise the debt limit, the country will default for the first time in history, she cautioned. Yesterday US dollar index fell around 0.10%. With these concerns, if the US dollar index continues to slip in the foreign exchange, the gold rates will again be able to hike in October. However, today the US dollar index stood at 94.30 level in the spot market, today’s index change will be analyzed.
However, a gold trader must remember that the expectations of the tapering timeline are not faded away yet. The US Fed will meet again only in November to decide the tapering timeline. They are buying $120 billion in government-backed bonds each month now, which can be reduced. The expectations of tapering are affecting gold even before it starts. Also, as the US 10-year treasury yield is rising again around 1.5%, the gold prices will eventually drop in October. All of these will depend on the inflation and employment data.
US Inflation index
Both of these possibilities of gain and fall are only anticipated now. October gold prices will be influenced by the US Core PCE index which is a preferred tool by the US Fed to measure inflation. Powell commented, “We have to balance inflation and employment. Our expectation is inflation will come down, and we won’t have to have the two goals in tension.” Higher inflation can influence the central bank to hike interest rates, but that might be barred with poor employment status. So, the PCE data will impact both the tapering timeline, hence the international gold prices. The rates will similarly influence the Indian gold rates.
Gold prices falling will be a positive sign for the common Indians, who will be able to buy gold at lower rates. India imports gold from foreign markets, so the Indian gold prices depend on the ups and downs of the international gold rates. But if the prices continue to hike in the foreign markets, the Indian rates will gain again ahead of the festive season in the country.
The World Bank will give $150 million loan to support the Government of Tamil Nadu’s Chennai City Partnership: Sustainable Urban Services Programme, which seeks to help strengthen institutions, improve the financial health of service agencies, and drive significant improvements in the quality of four key urban services — water supply and sewerage, mobility, health, and solid waste management.
This programme will support the Tamil Nadu Government in its efforts to transform the city and its services, while accelerating Chennai’s shift to a lower carbon and a more resilient growth trajectory. It will help Tamil Nadu Government , Greater Chennai Corporation (GCC), and key service agencies adopt new approaches to service delivery and bring a renewed focus on results for citizens, according to a statement from The World Bank.
The Chennai Metropolitan Area, home to about 10.9 million people, is India’s fourth-most populous metropolitan area. Despite being an economic powerhouse, Chennai has not kept pace with growing demand for key services. The coastal city also remains highly vulnerable to natural disasters, climate change and, as the Covid-19 emergency revealed, to pandemics. “This programme heralds the start of our partnership with the city of Chennai where we will work with Tamil Nadu Government to jointly create a more climate-friendly, resilient and inclusive model for managing urban growth. The experience emerging from this partnership can inform other Indian cities and, more broadly, India’s massive urban transition,” said Junaid Ahmad, World Bank Country Director in India.
Major components
The programme’s major components are water resource management including water supply and sewerage services, urban mobility, health services and solid waste management. The scheme will increase household connections and improve the quality of water and sewerage services. It will expand green modes of urban mobility—buses, walking, and cycling—along with improvements in their quality and inter-connectivity. It will also enhance disease surveillance and improve coverage and quality of primary health care services.
Integrated planning and management of these services through empowered coordinating agencies such as a Water Regulatory Authority and a Chennai Unified Metropolitan Transport Authority will also be part of this programme. The scheme will improve the financial performance of GCC and Chennai Metro Water Supply and Sewerage Board through increased revenue collection and/or reduction in operating costs.
The $150 million loan from the International Bank for Reconstruction and Development (IBRD) is a variable spread loan that has a final maturity of 16-and-a-half years, including a grace period of five-and-a-half years.
Oyo Hotels & Homes, a hospitality startup, has filed a draught prospectus with capital market regulator Sebi in order to raise $1.2 billion through a public offering, joining a rising number of businesses that are tapping into the public markets.
Oyo intends to issue up to 70 billion rupees worth of new shares, while existing shareholders may sell up to 14.3 billion rupees worth of shares.
SoftBank Vision Fund, Lightspeed Venture Partners, and Sequoia Capital India are among the company’s major backers.
OYO is valued at $9.6 billion as of August 20, 2021, after raising $5 million from Microsoft. According to the prospectus, the promoters include founder Ritesh Agarwal, his holding firm RA Hospital Holdings, and SoftBank Vision Fund, the three largest owners. According to reports, the business named Kotak Mahindra Capital, Citigroup, ICICI Securities, Nomura, and Bank of America as primary book managers for the public offering last month.
By early next year, the company is likely to be listed on Indian stock exchanges.
OYO background
Ritesh Agarwal founded Oravel Stays in 2012 to facilitate the listing and booking of low-cost hotels. In May of 2013, he flipped Oravel to OYO after months of research and experience in numerous bed and breakfast homes, guest houses, and small hotels around India.
OYO collaborates with hotels to provide world-class guest experiences in locations across the world. Ritesh Agarwal earned a $100,000 Thiel Fellowship grant from Peter Thiel shortly after starting Oravel Stays, which tremendously aided in the development of his company.
Over the years, the company grew to include thousands of hotels, vacation homes, and millions of rooms in hundreds of cities across India, Malaysia, the United Arab Emirates, Nepal, Brazil, Mexico, the United Kingdom, the Philippines, Japan, Saudi Arabia, Sri Lanka, Indonesia, Vietnam, and the United States, among others. It is even more valuable than the renowned Taj hotel company and the Oberoi hotel chain.
Funding Details
Date
Stage
Amount
Lead Investors
August 20, 2021
Corporate Round
$5M
Microsoft
July 29, 2021
Corporate Round
–
Microsoft
July 16, 2021
Debt Financing
$660M
–
March 11, 2021
Debt Financing
$200M
Softbank Vision Fund
Jan 6, 2021
Series F
$7M
Hindustan Media Venture
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Story first published: Friday, October 1, 2021, 12:51 [IST]
Timely recoveries will be a key driver of net profitability for IDBI Bank, in the absence of which it may remain at sub-optimal levels in the near to medium term, rating agencyIcra has said.
“IDBI Bank’s profitability includes one-time income driven by recoveries from fully-provided legacy stressed assets, and it has utilised the same for accelerated provisioning on other stressed assets and potential asset quality stress in future. Incremental slippages could remain high, given the reasonably large overdue book amid the weak operating environment and certain other vulnerable exposures, the rating agency said in a note while upgrading the rating for the Mumbai-based private lender’s bonds, debentures and tier-II capital instruments from “A” to “A+”
While the bank maintains one of the highest provision coverage ratios on its stressed assets, the timing of recoveries from these could remain uncertain, it said.
The rating upgrade
The rating upgrade factors in the sustained improvement in the credit profile of IDBI Bank Limited with expectations that the internal capital generation is likely to be sufficient for growth as well as for maintaining sufficient cushion over the regulatory capital requirements.
Due to the weak asset quality and capitalisation levels in the past, IDBI Bank was placed under the Prompt Corrective Action (PCA) framework, thereby placing curbs on fresh wholesale lending. This, coupled with increased provision levels on NPAs, resulted in a sustained decline in the net advances to Rs. 1.23 lakh crore as on June 30, 2021 from the peak level of Rs. 2.19 lakh crore as on September 30, 2016. In contrast, the bank’s deposit base moderated less sharply to Rs. 2.23 lakh crore as on June 30, 2021, from Rs. 2.66 lakh crore as on September 30, 2016, that too driven by bulk deposits.
NPA generation
The bank has guided towards the normalisation of NPA generation at 2.0-2.5% in FY2022. However, this will remain contingent on its ability to contain incremental slippages, even as the overdue book, as indicated by the special mention account (SMA)-1 and SMA-2 book (corporate book and retail book combined), remained high at 3.6% of standard advances as on June 30, 2021 (3.3% as on March 31, 2021 and 3.4% as on March 31, 2020).
On a forward-looking basis, normalised operating profitability is expected to remain better compared to past levels although elevated operational costs on a reduced scale along with the continued impact of the high share of low/non-yielding assets on profitability will continue to weigh down the operating profitability, the rating agency said.
As India‘s economic activity revives, bank credit has expanded to various sectors, led by retail and industrial sectors, in August 2021.
According to the Reserve Bank of India data, retail segment showed an accelerated growth of 12.1% in August 2021, compared with 8.5 % a year ago, on higher volume in housing and vehicle credit.
However, credit growth in services sector fell to 3.5% in August 2021 compared with 10.9% a year ago, mainly due to contraction in credit growth to NBFCs and commercial real estate.
Credit to industry rose to 2.3% in August 2021, from 0.4% in August 2020. Loans to medium size units rose to 63.4% in August 2021 against 4.4% last year, RBI said.
Credit to micro and small industries stood at 10.1% in August 2021, from a contraction of 1.1% a year ago, and credit to large industries shrunk by 1.7% in August 2021 compared with a growth of 0.5% a year ago.
Credit to engineering, chemical and chemical products, gems and jewellery, infrastructure, mining and quarrying accelerated in August 2021 as against a year ago, and credit to basic metal, cement & cement products, construction, vehicles, vehicles parts and transport equipment’ either decelerated or contracted, RBI said.
